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Published On: Mon, Aug 14th, 2017

Business Feasibility: Table water production

DANIEL ZUBAIR  |

Nigeria’s bottled water industry has grown phenomenally over the past decade, with volume sales growing at an annual rate of 31% between 2002 and now. The market accommodates both multinationals, large local corporate and thousands of SMEs across the country. Bottled water is expected to comfortably surpass carbonates as the most widely consumed soft drinks segment by volume.

On the value side, the outlook is equally strong as alternative source of drinking water across the country remains elusive. Hot weather, growing population and health consideration will continue to drive the dynamics bottled water demand and we expect the sub-sector to become more segmented as competition grows and consumers’ tastes and preferences evolve.

 

THE BUSINESS ENVIRONMENT

Growth in total bottled water volume sales in 2012 to date according to statistics shows an upward increase. This was partly due to increasing maturity, and growth in population and the inability for Government to providing adequate clean drinkable water.

The market for packaged bottled is a growing market as more and more new entrants are seen coming into the fold with a strong outlook of success though offers tough Competition.

Usually the top target market for bottled mineral water follows the perception. If the perception is positive, the results will be higher sales. The positive perception for distributors and final customers may result from direct consumer experience, awareness, direct promotional activities.

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Perception most times is due to correct name branding and quality and aesthetic of Print on the product.

Distribution is very important for the success of any bottled water brand. The stronger the distribution the more successful will be the new brand.

Compliance of the water quality standards of National Agency for Food drug administration

MAJOR MARKET PLAYERS

Coca-Cola continued to lead bottled water, claiming an off-trade volume share of 20% with its Eva brand. Eva has an early mover advantage and a high quality reputation in the category. Moreover, like other soft drinks brands offered by Coca-Cola, Eva is widely distributed all over the Country and benefits from continuously strong advertising support.

Cway is the second leading player overall, while Nestlé Nigeria Plc rounded out the top three its Nestlé Pure Life brand. Other prominent players competitors in this highly fragmented category included , Aquafina ,Aqua Dana, Cascade, Moowa, Voltic, Oak, Oval Blue, Ragolis, Swan, La Voitre, Lily, Gossy, Sapphire ,Coscharis. All of these accounting for 40% of the trade volume share.

Machinery and equipment requirement

To start out in bottled water production, the followings ought to be taken into full cognizance:

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  1. Standard water Treatment Plant.
  2. Reverse Osmosis System.
  3. Ozonator.
  4. Industrial Micron Filters.
  5. Industrial Ultra violet Sterelizer .
  6. Automatic bottling rinsing, filling and capping machine.
  7. Automatic Shrink Packing Machine.
  8. Online batch number printer.
  9. Semi-automatic PET Blowing machine.
  10. Storage Tanks
  11. Generating Set
  12. Desktop Computer + Printer for office use
  13. Office and Factory Furniture
  14. Safety and Protective Gears
  15. Delivery/Marketing Van + Branding
  16. Fire Fighting and Prevention Equipment

Business and NAFDAC registrations is a must to give the business a conducive legal operating environment.

Production Process.

Bottled water production plant uses Reverse Osmosis coupled with micro filtration and Ozonator. This is a water treatment method that must comply with the National Agency for food and drug administration and control`s Standard. Production of bottled water must be done in a well ventilated factory building and the source of the water must be some meters away from a sulk away.

Packaging:

The produced bottled water is packaged in 12 –bottles to form a pack and this averagely is sold at the rate of N600 in the open market especially brands from minor players in the market. If well marketed according to a producer, it could be one of the lucrative businesses to delve into.

 

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