Drink Manufacturer Seeks Investor

Opportunity Summary

Type of investment:

Financial (loans, equity participation, etc.)

Equity participation with the consent of the parties

COMPANY SDG BRAND LTD is interested in long-term partnership with strategic investor in drawing investment in the project of organizing a high-quality production and sale of mineral water, sweet carbonated soft drinks and infant drinking water that are competitive on market of drinking water and beverages.

Even during the economic crisis the market of mineral water has shown not only stability but also relatively steady increase in product prices. Shortage of drinking water and increased demand for it in the world show high promise of the business connected with the manufacture and sale of high quality mineral table water (sweet soft drinks on a natural basis), that is proved by following facts:

·        As an example, several years ago in France and other countries around the world a ton of drinking water exceeded the value of ton of high-octane gasoline.

·         According to UNO experts in the next three years the problem of drinking water shortage will be more acute than the problem of energy supply (oil, gas, etc.).

·         At the global level during the past 10 years consumption of drinking water has increased in 6 times. In some countries there is a lack of the water for provisions production. As a result, water scarcity will be even more widespread and prices for this resource will rapidly grow.

Required amount of investment in the project - 9.79 million USD (providing products put on the markets of Europe, Asia and Africa, as well as the acquisition of the most high-tech production equipment).

Investing should be phased in 8 calendar months.

Payback period and return on investment - 19 months (pessimistic forecast).

Overall productivity of existing manufacturing plants, where the organization of quality mineral water and sweet soft drinks bottling is completing, is 240 million liters per year.

Production that meets the highest international standards of qualitative and modern design is already prepared in existing facilities. Plants are located in ecologically clean region of the world - the Caucasus Mountains and have all necessary production capacities (wells, bottling lines that allow bottling of mineral water and sweet soft drinks in PET bottles, tin cans 0.33 and 0.25 liters, glass bottles of 0.2 and 0.5 liters, etc.) that makes it possible to produce more than seven million bottles in March 2010.

Professional and experienced team of project managers has already solved the following problems:

1. Thorough development of the business project, the first preparatory phase of its implementation is completing;

2. Formation of the experienced project managers team (management project areas, production, logistics, marketing, financial management, etc.);

3. Development and approval of product labels;

4.  Registration of the trademarks in the country of manufacture and their registration is continuing in countries where sale of products is planned;

5. Development of distinctive and modern design of packaging and PET bottles;

6. Financing and production of PET bottles drawings;

7. Production of PET bottles molds;

8. Purchase of the necessary caps and preforms for PET bottles;

9. Signing contracts of exclusive distribution, sales, manufacture, etc.;

10. Formation of optimal product delivery logistics for distribution in various countries in Europe, Asia and Africa.

11. Launch of promotional products and implementation of the necessary marketing activities to ensure effective products distribution;

12. Product certification that gives the right to manufacture and sell products;

13. Products are ready for production and sale.

The development of new additional 18 items of products is completing. This will promote the significant expansion of the product range and profitability of investment. Manufacture of the following products based on natural drinking mineral water of high quality has been prepared for release:

1. Natural table still and sparkling mineral water extracted from artesian wells, bottled into PET-bottles (capacity from 0.33 to 6 liters), VIP-containers (glass 0.5 liters bottles - premium mineral water) and tin cans (0.33 and 0.25 liters);
2. Sweet soft drinks based on qualitative mineral drinking water with use of natural aroma and flavor additives (PET bottles from 0.5 to 1.5 liters, glass bottles 0.2 and 0.5 liters; tin cans 0.33 and 0.25 liters).

3. "Drinks for Health" produced on the basis of qualitative drinking mineral water: tea (green/black/fruit additives), beverages with natural herbs additives (St. John's wort, peppermint, etc.);

4. Production of not chemically treated natural water with low salinity – water recommended for infants.

For the long-term cooperation, strategic investor is suggested the entry to composition of the Company founders (by agreement of the parties).

More information can be provided to potential investor after receiving a letter with information concerning his intents, conditions and opportunities of investments.

Best regards,

Sergey Sevrikov

General Project Manager