Boreal Water Collection Inc. (fka BRWC)

[Exjouster]

http://seekingalpha.com/instablog/10425141-small-cap-reporter/3238145-big-bucks-in-bottled-water-but-its-not-us-sales-that-will-drive-industry-revenue-growth

Big Bucks In Bottled Water But It's Not US Sales That Will Drive Industry Revenue Growth 0 comments
Sep 6, 2014 5:30 PM | about stocks: BRWC, KO, PEP, NSRGY


It's no secret that millions of people drink water every day and those same people also drink it from a bottle. In 2012, total U.S. bottled water consumption increased to 9.67 billion gallons, up from 9.1 billion gallons in 2011. In fact, 2012's consumption growth was the strongest it has been in five years. In addition, per-capita consumption is up 5.3 percent in 2012, with every person in America drinking an average of 30.8 gallons of bottled water last year.

Bottled water increased in absolute volume more than any other beverage category in the U.S. In fact, Forbes has stated that within the next five years, the world population will increase by another 40-50 percent and when coupled with industrialization and urbanization in markets like China & India, the results will show an increasing demand for water.

Additionally, bottled water sales increased by 6.7 percent in 2012, and now total $11.8 billion. So there's no doubt that this industry in massive in scale. 30 years ago, if you could have predicted that we'd all be drinking water out of little plastic bottles, not only would you be very rich (had you decided to invest), but you'd probably be reading this from your vacation home in the Caribbean or the South of France!

Boreal Water Collection, Inc. (OTCPK:BRWC) is a personalized bottled water corporation, specialized in providing premium custom bottled water for companies and customers. Whether it is for publicity, promotion, marketing, internal use or a specific event, Boreal offers fully integrated turnkey service, with prize-winning Boreal private label water, made-to-order labeling, and distinctive water containers.

Boreal Water comes from the New York Catskill Mountains, lying deep inside thick, impermeable layers of prehistoric clay. The spring is naturally isolated from any possible surface drainage or run off. Exceptional geological and geographical factors have created the perfect environment for Boreal's 'Baby-Water' perfect water, while tributary pools from the enormous surrounding area feed the main water source, locked in subterranean gathering shelves. This unhurried 60 year process through mineral rich stone gives Boreal's water its incomparable purity and superior taste. Boreal water's in-ground temperature is 8°C which maintains its perfectly balanced mineral composition and creates its incredibly crisp structure.

The Company has been diligently working to enter the Asia marketplace since early 2014 and as of this past summer, Boreal has not only come to an agreement with a distributor, SOHO Corp., but the Company has firmly stuck its flag in the Eastern Market through a 3 year, $24million distribution deal for its Baby Water product.

In the US alone, revenue from bottled water sales has increase by6.1% since 2009 and has the biggest consumer market for bottled water worldwide.

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According to the FDA, bottled water is intended for human consumption and comes sealed in a bottle or similar containers with no additionally added ingredients. Bottled water can be either carbonated or not. Bottled still water brands competing in the U.S. market are PepsiCo's (NYSE:PEP) Aquafina, Coca-Cola Company's (NYSE:KO) Dasani & Glaceau Vitamin water and Nestle's (OTCPK:NSRGY) Poland Spring and Nestlé Pure Life. Apart from private label products and Fiji water, these three key players captured all sales in the top ten ranking for bottled still water in 2013.

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In looking at the overall sales numbers, however, there's a glaring standout, which is in fact Private Label brands. In the US, this accounted for nearly $2billion in revenues; more than 25%.

On a global scale, however, Boreal could really begin to shine especially with the recent distribution through its SOHO Corp product partner. According to a new report by Transparency Market Research, China is the most active market worldwide for bottled water. Asia Pacific, in particular, dominated the global bottled water market and accounted for 33% of the global demand valued at approximately $157.27 Billion in 2013.

In the coming six years, Asia Pacific is expected to remain the most promising market, with an estimated compound annual growth rate of 10.5% in terms of revenue from 2014 to 2020. The market is expected to reach $279.65 billion by 2020.

For a company like Boreal to now be involved in one of the world's largest markets for bottled water, China, the exponential growth could in turn be massive especially based on the company's established distribution partnerships.

For these reasons, we will be initiating in-depth coverage and analyses not only on Boreal Water Collection, Inc. but also on the impact that the Asia-Pacific markets will have on emerging companies in today's market.

Themes: water, bottled water, china, spring water Stocks: BRWC, KO, PEP, NSRGY