Aqueduct have just had a pre launch expose of their new range of Bag in Box Coolers at the Copenhagen Food Fair (22-25th Feb 09) - and had rave reviews from potential distributors and customers alike. They instinctively "got it". Final tooling is now in hand and full production be be in place by summer 09.
Dear Mr. Kieran McKenna
ReplyDeleteThe brazilian mineral water market has been increased about 10% per year, in the last 8 years - The outlook for this year is that the national consumption surpasses the mark of 8.3 billion liters, an increase of around 10%. But the segment of 20 liters returnable blow molded bottle (garrafões) of water represents 57% of national consumption, and 54% in packs of 20 liters and 3% in packs of 10 liters. The figures show a field that still has much to grow in Brazil.
The figures show the power of water, which has a turnover in Brazil around R$ 1.6 billion / year (U$695,652,173.00).
The mainly producer is Indaia / Minalba that´s have around of 15% of the brazilian market share, the rest of the market is divided into regional brands with about 800 sources of mineral water
Three companies of mineral water sector, tried to launch the concept bag in box of 20 liters in the last 3 years.
In the research I did, the main cause of failure was the high price of the packaging bag in box: Itágua, Raiz da Serra e Lyndoia Vida.
In Brazil, 20 liters of mineral water costs around U.S. $ 0.40, which I consider cheap without the packaging.
I agree with your vision of sustainable use of packaging for the market of mineral water.
Do you feel comfortable handling a 10kg or 15Kg of the Bag In Box?
Do you have a partnership with manufacturer of bag in box?
If there was a comfortable Bag Off Box with nozzle with handle, eliminating the use of the cardboard box you would find interesting?
Best regards,
Ronaldo Massao Fudaba
Hi Ronaldo,
ReplyDeleteMany thanks for your comment. I am in agreement with you when you say that Bag in Box is - at the moment - expensive when compared to the PET Plastic used for the "retail" market. This is why our coolers are primairily used for the HOD - "Home Office Delivered" market... with emphasis on "Delivered"... as it is the delivery logistics that allow Bag in Box a significant advantage over traditional bottle water coolers.... and this logistical advantage (plus the hygienic advantage that means that companies dont have to sanitise their coolers every 13 weeks)is where the marginal extra cost of packaging is more than offset.
The economic reach of a BIB plant is also greatly extended.... as a returnable bottle plant can only cover a radius of a few hundred KM from a single plant (due to returnable bottle logistic costs) whereas a BIB plant can cover over 1000 KM radius(utilising third party transport that delivers 26 Tons of weater to a warehouse in a distant city and this truck can then go on to pick up beds for all we care...it does not have to return empty). Hence one centrally located plant can really cover huge areas....gaining immensly in economies of scale in production.
In regard to you comment of "bag only" systems.... I have seen them but dont like them.... no branding space, poor handling features and the water is exposed to light polution. Most are transported in a plastic box that must return to base....so again logistical "reach" is impared.
Drop me an email on kieran.mckenna@aqueduct.ie if you are interested in looking at working with us in Brazil.
Thanks
Kieran