Bottled water consumption reflects a certain way of life. There is a long tradition for drinking bottled water. In many cases, bottled water is an alternative to tap water. Consumers think it tastes better than tap water (no chlorine taste), they perceive it as being safer and of better quality. They also look for security: food scandals and water-borne diseases have a great impact on their attitude.
Bottled water is perceived as pure and safe, although it is not necessarily the case. Consumers care for their health and their well-being: they buy bottled water to feel well, to lose weight. Bottled water is a healthy alternative to other beverages. Changes in ways of life also explain this boost of bottled water sales. Increasing urbanization, causing tap water quality to decline, can explain this situation. In particular, natural mineral water cannot be treated, nor added any element. It is therefore perceived as “natural” by city dwellers looking for genuine products. Increasing standards of living and greater use of cars enable people to bring home without pain a higher number of heavy and expensive bottled water: the price of bottled water is an average 500 to 1000 times higher than the one of tap water. The use of plastic (PVC, then PET) makes bottles lighter and easier to carry than when they were only made of glass. The expansion of shopping centers, outside city-centers, provides consumers with a greater choice in bottled water brands. Working habits change, with the decline of agriculture and industry. Most people have office works and the bottle of water is now a common element on a desk, next to the computer and the telephone. Drinking bottled water is a sign of a rise in the social scale. Above all, bottled water is a huge marketing success.
Bottled water, like any other industries, is not exempt of environmental impacts, either positive or negative. Natural mineral water and other bottled waters, as well as regular drinking water, must meet strict quality requirements prescribed buy regulations. However, this doesn’t necessarily imply an improvement in general water quality: natural mineral water springs are indeed protected against pollution hazards, but this has an impact on a limited area; purified bottled water doesn’t need extremely good quality water prior to being treated, although this could reduce treatment loads and costs. Protection areas are often established around water abstraction points, locally protecting the environment.
The choice of bottled water packaging material is increasingly done taking into account environmental considerations. PET is more and more often chosen instead of PVC because of its properties: it is light, easy to work on and very transparent. It can be re-manufactured into many different products, such as fibers for the clothing industry. When burnt, it doesn’t release chlorine into the atmosphere, contrary to PVC, whatever type of incinerator is used. Negative environmental impacts, in particular energy consumption, are reduced if PET, aluminium and glass packages are washed and re-filled rather than re-manufactured.
Trading and transporting bottled water all over the world also has an important environmental impact, in particular on atmospheric pollution and climate change because of fuel combustion. This impact varies a lot depending on many factors, i.e.: the type of transport used (train vs. old trucks), the type of fuel used (electricity vs. diesel), the distance to pass, etc. Considering current market trends, transport of bottled water should keep growing; nevertheless, 75% of the world bottled water is produced and distributed on a regional scale, thus limiting transports.
Bottled water is a particularly competitive market, hence companies need to develop diverse marketing strategies, such as accessing new markets by owning or developing partnership with regional brands, developing new products (e.g. flavored water) or by-products (e.g. cosmetics) and developing services (e.g. home and office delivery of carboy water). Additionally, water bottling plants are capital-intensive ventures that require significant financial means to become fully operational. Also, legal requirements and regulations define the ways in which natural water can be exploited from its natural sources, mainly springs and underground water levels. In bottled water industry, water that has an added value is natural spring water, of highest pureness and quality, especially when it is collected from areas of preserved and inhabited nature.
The above mentioned facts were the starting point to Fin Invest doo in the process of bringing this business idea to life. This business plan is the outcome of a careful and thoughtful business planning process that offers its investors a timely and outstanding opportunity to enable Fin Invest doo, Podgorica, to enforce the business idea of pure and natural Montenegro spring water bottling plant and gain a favorable market position on the domestic market in natural spring water niche under the Aqua Monta brand name.
Fin Invest doo is a limited liability company for real estate engineering, production of goods and services and export-import. Fin Invest doo is a 100% private ownership company, involved in the business with real estate-engineering and by the Statute of the company its core business activities include the following: forestry, agriculture, fishing, processing activities, wood processing and wood products, the production of cellulose, paper and paper products, publishing and printing, construction, wholesale and retail, hotels and restaurants, transport, storage, networking, activities related to real estate, renting and business activities, foreign trade, etc.
 Ferrier C.: Bottled Water: Understanding a social phenomenon, WWF Discussion paper, 2001.
STATEMENT OF FINANCING NEED
This business plan is written in order to raise 2,000,000 in capital in conjunction with the 2,103,104 EUR start up funds of the Fin Invest doo, Podgorica. The business plan is the outcome of a careful and thoughtful business planning process that offers its investors a timely and outstanding opportunity to enable the Fin Invest doo, Podgorica, to enforce the business idea of pure and natural Montenegro spring water bottling plant and gain a favorable market position within the next five years on the domestic market in natural spring water niche under the Aqua Monta brand name.
The initial capital investment of 4.1 mio EUR that includes 2,103,104 EUR start up capital of Fin Invest doo plus additional investments of foreign investors that need to raised totaling 2,000,000 EUR, will enable Fin Invest doo to amass a management team and staff that will operate the plant, to build the plant and to purchase adequate equipment needed for the production of the bottled spring water, and operate the business in an effective and efficient manner. Over the next decade, Fin Invest doo plans to outdistance the competition in bottled spring water niche on the Montenegro market.
Fin Invest doo will be positioned on the cutting edge of applying new technologies in the water bottling business and become a market leader in these means.
AGREEMENT OF CONFIDENTIALITY OF THE REPORT
I understand that every part of this report must be treated as confidential. Much of the information contained within this report, and used for the underlying analysis, is of a commercially sensitive nature. This report may not be released or circulated in any form without the express written permission of the copyright owner.
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I understand that any information provided in this report is in all respects confidential in nature, other than information which is in the public domain through other means. I agree not to disclose any information without the express written permission of the author.
This report includes forward-looking statements and projections. All such statements and projections within this report, other than statements of historical fact, regarding the company or its strategies, plans, objectives and expectations, are all forward-looking statements. Although the author believes that the projections reflected in this plan are reasonable at this time, it can give no assurance that these projections will prove to have been correct. This business plan is not a financing offer.
Bottled water is only as good as its source. The subject of this business plan is the bottling of spring, natural mineral water. Ropušica natural conditions are typical in that it is out flowed in the great altitude (1,365 m) from carbonate mezozoic. The entire basin is entirely deserted, which is of particular importance for the quality and way of sanitary protection of sources.
Ropušica spring makes for the best tasting water one can find in a bottle. The bottled water is going to be sold under the brand Aqua Monta.
Aqua Monta is aimed at consumers of all generations that strive to consume healthy, pure, natural spring water of neutral taste, that value the tradition and heritage of Montenegro nature, and are familiar with the excellent characteristics of Montenegro spring water.
According to the physical and chemical analysis of water, the water meets all the criteria defined by law. Physical and chemical characteristics of water sources Ropušica are as follows:
 Analysis: 2006-04-10 Institute of Public Health of Serbia
Water sources from Ropušica spring by its physical and chemical characteristics belongs to the water of exceptional quality. Ropušica is a beautiful, pristine spring surrounded by lush woods. It has been running for over few hundred years and produces a natural flow of more than 50 gallons per minute of crisp, refreshing water. The rate of flow remains constant throughout the seasons of the year. This allows keeping up with any production demands.
FORM OF OWNERSHIP
The venture that is a subject of this business plan can be established either in the form of a new joint venture in which the foreign investor would participate proportionally to its share in the total
investment, or as a 100% private ownership of Fin Invest doo where the owner would take funds on credit, which would not require any change of ownership, legal and structural changes. However, the credit can be also transferred to a form of ownership when the project is implemented. In any case, the venture will be 100% privately owned by either a local or mixed local and foreign ownership.
IDENTIFICATION OF PARTNERS
This business plan is aimed both at credit suppliers or interested foreign investors. The partners would be identified in accordance to their interest whether it is to invest and become a partner in the venture or just to provide a loan to the existing owner, Fin Invest doo, Podgorica.
The implementation of the project in subject requires staff numbering 36 employees in total. Of those employed, 5 has university level degree, 2 college or high school degrees, and the remaining, 29 of them has high school or lower high school degree (three grades of four in total).
The project will employ staff in the following departments:
- Management and administration,
Ten workers will be involved in the production process, four in transport, two in warehouse operations, and three in laboratory. The management of the new venture will employ one general manager, two assistant directors (for finance and trade), one technical manager and one business secretary. The detailed overview of staff together with staff costs attached is given in the Appendix.