Retailing, Franchising, and Consumerism Business Intelligence in China

China Water & Drinks Pushing Forward On Mainland

Purified bottled water distributor China Water & Drinks has retained CCG Elite to design and execute its investor relations campaign.

"China has the largest population in the world; however, water resources in China are only 28% of the world's average. In addition, the market for bottled water is still in its early stages, with a consumption rate per capita of bottled water that is significantly lower than the U.S. and other developed countries. Given the unreliable quality of tap water combined with higher standards of living and the desire for healthier lifestyles, we expect the market demand for bottled water in China to continue growing for some time." commented Crocker Coulson, president of CCG Elite.

China Water and Drinks operates bottled water production plants in four provinces in China: Guangdong, Jilin, Shandong, and Guangxi, and has total annual production capacity of 810 million liters of purified water. The company's bottled water is reportedly sealed in sterilized containers meeting Chinese government hygiene standards.

China Water & Drinks has over 3,600 distributors and retailers selling its bottled water in 11 provinces in China including Guangdong, Guangxi, Shandong, Heilongjiang, Jilin, Shanxi, Shaanxi, Gansu, Liaoning, Anhui and Sichuan. The company markets its own product under the brand "Darcunk", supplies purified water to both local and international beverage brands such as Coca-Cola, Uni-President, and Danone, and provides private label bottled water for companies to other businesses.

China Water & Drinks is now embarking on a growth strategy to enlarge its production capacity and expand its distribution channels. The company recently acquired Pilpol, a Hong Kong Corporation which owns and operates Nanning Taoda Drink Company, a major bottled water supplier in Guangxi province. Nanning Taoda Drink Company has two production lines and 160 millions liters of annual bottled water capacity. The acquisition increased China Water & Drinks market penetration in Guangxi and enables the Company to further penetrate Guizhou, Sichuan and Yunnan Provinces.

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