- Country: Ukraine
- Industry: Food, Beverages, Tabacco
- Stage: Start-up
- Investment size: $7,790,000 / min. $4,370,000
- Type of investment: Debt
“Industry of water & drinks” - an international holding company merging the companies of production and sales of high-quality beverages in different countries worldwide.
The main project characteristics:
PROJECT PURPOSE: To create a stable and highly profitable international business of high level.
1. To create a professional and skilled team of managers to fulfil the project.
2. To elaborate projects for the production and sales of drinking water, soft drinks and alcoholic beverages; to resolve the funding issue and cooperate with interested parties (manufacturers, investors, distributors etc.).
3. To conduct marketing researches and market analyses on mineral water, soft drinks and alcoholic beverages in Ukraine, EU, Asia, Africa and other foreign regions.
4. To make a feasibility study of the import and sales operations of the Holding.
5. To design, build and equip modern factories in Georgia, Ukraine and other countries with powerful manufacturing capabilities (large assortment and quantity of manufactured production).
6. At a first stage, to involve into the project realization in Ukraine a newly created company - SDG Brand Ltd - to organize the manufacturing of own-branded quality mineral water, soft drinks and alcoholic beverages in the operating Georgian and Ukrainian enterprises.
7. To create optimal schemes for logistics, storage and distribution of products manufactured by the enterprises within the Holding Company.
8. To create an effective multilevel sales system in European, Asian and African countries, to sign contracts (agreements) for exclusive distribution, purchase and sale with wholesalers in different countries all over the world.
9. To create own branded retail of soft drinks and alcoholic beverages in Ukraine and other countries.
10. To carefully analyse possible risks stemming from foreign economic activities and commercial operations, to carry out necessary actions to minimize those risks in order to ensure business safety and successful project fulfilment.
11. To receive on time the necessary quality certificates, sanitary-hygienic reports and other documents necessary for selling the Holding’s products in different countries planned to be export destinations.
12. To achieve high and stable profitability of the Holding’s commercial.
13. To create and actively develop worldwide own product brands of mineral water, soft drinks and alcoholic beverages.
14. To provide timely payback of investments and ROI to the investors in the projects of the Holding.
15. At a second stage, to build new factories allowing the Holding to be competitive on the global market.
16. To constantly increase the business profitability and to effectively invest in new manufacturing and business development.
17. To create an effective result-oriented business management system (production of quality products, high manpower policy, transparency of financial activity, effective marketing strategy and tactics).
BASIC STAGES of the project:
1. Form project (holding) team;
2. Work out project business plans;
3. Work out and coordinate schedules for project implementation;
4. Choose on a tender basis the operating manufacturing enterprise capable to produce a qualitative production (corresponding to the most modern international standards) under our trademarks; Carry on negotiations with them and conclude the relevant agreements and contracts for the manufacturing of our products;
5. Create trademarks, develop their design and register them in legal order in countries where it is planned to carry out their production and sales;
6. Create an effective multilevel sales system, sales companies in countries where it is planned to realize products sales; form distribution (dealer) network to ensure effective products sales;
7. Determine the strategic investors in the projects, sign investment agreements and implement the investments;
8. Provide financing of projects’ development and realization.
9. Prepare the goods for production (mineral water, soft drinks and alcoholic beverages)
10. Certify production in manufacturing countries and in importing countries, receive the barcodes on manufactured products;
11. Develop optimal logistics of manufactured products to importing countries;
12. Start marketing actions on branding, marketing and development of effective multilevel marketing systems; prepare arrangements for the presentation of the new products in countries where it is planned to carry out their sales;
13. Produce and sell the first (test) consignment of production;
14. Attain the project (full) production and sales capacity of the Holding’s enterprises and companies;
15. Work out business projects and invest in building own factories in Georgia, Ukraine, Chile, and modernizing them with effective equipment;
16. Enlarge assortment, manufacturing outputs and sales of mineral water, soft drinks and alcoholic beverages.
Within the production project it is planned to arrange the manufacturing of the following products:
1. Natural drinking table water TM “AQUALON”, for home and office; non-carbonated; bottled in 19-liters PET bottles.
2. Natural potable mineral water TM “KAVKAЗ”, carbonated and non-carbonated; bottled in 0.33, 0.5, 1.5 and 6.0-liters PET bottles and in 0.5-liters glass bottles.
3. Sweet carbonated soft drinks TM “PIROSMANI” (“Tarhun”, “Lime-lemon”, “Gulabi”, “Cream-slivki” and “Saperavi”), bottled in 0.33, 0.5, and 2.0-liters PET bottles, 0.2 and 0.5-liters glass bottles, and 0.2 and 0.33-liters cans.
4. Potable non-carbonated water for infants TM “BABY WATER”, bottled in 0.33, 0.5, 1.5, 3.0 and 6.0-liters PET bottles.
5. Healthy Drinks TM "PCHOLKA" on the basis of quality natural mineral water, honey/propolis, herbal extracts, and natural juices; no coloring agents, no emulsifiers; bottled in 0.33 and 0.5-liters PET and glass bottles.
6. Wine products TM “SENCO WINE” (wine, champagnes and low-alcohol beverages) bottled in 0.75-liters glass bottles.
7. Ordinary and vintage wines, brandies, champagnes and low-alcohol beverages bottled in Georgia, France, Chile, Italy, Spain, Ukraine and other countries.
8. Brandies TM “VITER” of different ripening in glass bottles of different capacity.
9. Other alcoholic beverages (whiskey, vodka, etc.) that will be bottled under own trademarks in various Ukrainian, British and Russian manufacturing enterprises.
10. Other soft drinks and alcoholic beverages.
Expected results from the successful implementation of the project:
1. New powerful business will be developed (a financial and industrial holding company that consists from several enterprises operating all over the world) which will provide stable profit and high profitability.
2. Own international brands that provide steady demand for production are already created and would be further developed.
3. International effective multilevel production sale system will be arranged (distribution, logistics, system of payments, increase in sales volumes, etc.).
4. Funds derived from the sales will allow carrying out internal business investment, building new plants, expanding the assortment, increasing the production volumes, arranging new product sales and developing other business areas.
Note: Further details concerning the above-mentioned project are confidential and could be provided to potential investors and business partners on the basis of attained agreement of cooperation. Let’s work together and thrive together!
1. Modern, attractive and distinctive design, high quality of production (natural origin of water and beverages) and relatively low prices make our products quite competitive on the world market;
2. Projects will be implemented in various European, Asian and African countries, giving the opportunity to increase significantly the number of manufactured/ sold products and to receive high profit;
3. Deep marketing research and accurate analysis of mineral water, soft drinks and alcoholic beverages markets were held in importing countries;
4. Agreements of intent, purchase-sale contracts, agreements of exclusive distribution, contracts for logistics services, etc. that are necessary for the soonest beginning of the financial and economic activities have been signed;
5. The project team of managers has accumulated considerable knowledge and long-term experience in the international production industry and the sales of alcohol beverages (France, Georgia, Great Britain, Russia, Italy, Chile, Thailand and Ukraine);
6. Projects are prepared and feasibility study of manufacturing, marketing and foreign trade operations is calculated carefully;
7. Schedules for the realization of production and sales projects are developed and agreed with project stakeholders that take part in the Holding Company’s projects (producers, marketers, logistics, etc.);
8. Major goods prepared for production will be manufactured in modern high-tech plants in ecologically clean regions of the world – Caucasian mountains, the Crimea and Chile;
9. In the minimal terms production of own beverages will be started in already operating Georgian enterprises, which allows realizing sales, getting initial profit and forming marketing.
10. Large assortment of manufactured products (mineral water, soft drinks and alcoholic beverages) allows increasing sales capacities and business profitability;
11. Beginning from 2012 designing and building an own modern high-tech equipped plant in Georgia will be started;
12. Implementation of effective advertising and marketing effort concerning formation of own production brands;
13. Optimal schemes for logistics (export-import operations, delivery-transportation, loading-unloading of products) are already created and are effectively functioning;
14. Optimal financial schemes of payments, which provide transparency and safety, are already prepared and conformed to first-class European banks;
15. The constantly deepening deficit of and the increasing demand for qualitative bottled potable water and beverages will contribute to the successful business development;
16. In spite of the world economic crisis, there is relatively stable growth of the prices of potable water and beverages on the world market;
17. Absence of any legal restrictions on export/import of potable water/beverages in European, Asian and African countries;
18. All probable risks and ways of their reduction are already analyzed;
19. Further advantages will be reported to the investor additionally.
Rationale for the deal
At the first stage the total amount of necessary investments for organization of manufacturing and sales is estimated in the sum of 7,790,000 USD. To those investments belong the following:
• Development of a modern factory (design, building and equipping the factory for bottling of mineral water, sweet non-alcoholic carbonated beverages and potable water for infants) – 4,370,000 USD
• Development of effective sales operations (marketing, branding, development of multilevel distribution and logistics lines in different countries worldwide, etc.) – 3,420,000 USD.
More detailed information on the investment needs of the modern factory development and sales organization will be provided to the potential business partner (investor) after conforming basic terms of cooperation.
Time of investment return: 27 months from the receipt of the total amount of investment.
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