An Opportunity to Par.cipate in the Bo3led Water Industry in China

Transcription

1 An Opportunity to Par.cipate in the Bo3led Water Industry in China 1

2 A Unique Opportunity The majority of the earth s fresh water is trapped in glaciers. Water sources, especially pure and uncontaminated, con:nue to disappear. The West Coast of Canada is famous for pris:ne and protected wilderness, rugged high coastal mountains, and pure water sources. has access to a pure and pris:ne natural glacier spring water source in Bri:sh Columbia, Canada. Listed at $19,000,000 2

3 Who Are We? Established in 2009 Formed to hold three perpetual Mt. Garibaldi water licenses from the Province of Bri.sh Columbia ( B.C. ) to a glacier natural spring water source the Powerhouse Creek Have access to 1 million imperial gallons per day ( GPD ) of water, approximately 4.5 million litres 3

4 The Water Licenses Highlights: 1. Largest Source in Bri.sh Columbia 2. Perpetual and permanent 3. Closest water source to container port Mt. Garibaldi Garibaldi Springs water licenses have no term and are deemed perpetual. 4

5 The Water Source The spring water originates from the alpine glacial region of Mt. Garibaldi (Squamish, B.C.) and percolates through an ancient lava flow 5

6 Exis.ng Infrastructure Substan.al investment to date in infrastructure, explora.on, tes.ng and permi^ng, ongoing maintenance and opera.ons Includes: Food grade steel piping infrastructure Cistern and installa.on Roads, clearing, trails and grading Distribu.on hut and loading sta.on engineered to load 7,000 gallon (32,000 litres) tanker trucks in 15 min 6

7 Garibaldi s Natural Glacier Spring Water Flows spontaneously from the ground at a rate of 5,000 litres per minute at a constant year round temperature of 5 C The reason for the purity in Garibaldi s water source is the glacial process combined with the lava filtra:on which naturally filters the water. Naturally low in dissolved solids Well balanced in element distribu.on Slightly alkaline ph for good diges.on Far exceeds water quality parameters of most drinking water around the world 7

8 Strategic Loca.on Located mid- way between the metropolis of Vancouver and world- renowned Whistler Mountain Ski Resort Served by deep sea port and Canadian Na.onal Railway Accessed by a four- lane highway that was recently upgraded for the 2010 Winter Olympics Situated within one hour travel to the Port of Vancouver container docks 8

9 A Global Perspec.ve Tokyo Shanghai Los Angeles Squamish Mexico City Squamish is located approximately: 9,000 km from Shanghai, China 1,800 km from Los Angeles, USA 4,000 km from Mexico City, Mexico 7,500 km from Tokyo, Japan 9

10 Water Analysis Below is a comparison of Garibaldi Spring s source of natural glacier spring water with other well- known brands: ph Chloride Sulphate Nitrate TDS Factor CI SO4 N Unit Regulatory Standards mg/l Blu Gold (CanTest) mg/l Volvic** mg/l Fiji ** mg/l Evian * mg/l Dasani *** mg/l * Glacier Spring ** Aquifer / Natural Spring *** Purification Process TDS = Total Dissolved Solids ph factor measures the level of acidity ( ) or alkalinity ( ) TDS measures the total amount of mobile charged ions, including minerals, salts or metals dissolved in a given volume of water Garibaldi s glacier spring water is a fine balance between acidity and alkalinity and is low in TDS, which yields a perfect taste of pure, refreshing water. 10

11 Premium Source for Bo3led Water The majority of the booled water sold in the world today is drawn from either municipal water supplies (river, surface reservoir or tap water) or from underground water sources (well water or spring water) - all exposed to varying degrees of contaminapon through contact with environmental or underground pollutants and chemicals. Garibaldi Spring s glacier water is safe from unwanted minerals and contaminants which is only achievable through the mel:ng of the ancient snow and ice formed prior to industrial contamina:on. 11

12 Market Analysis - Worldwide The total consump.on of bo3led water worldwide was es.mated at 49.9 billion gallons in 2007, which represented a compound annual growth rate of 7.6% from 34.6 billion gallons in GLOBAL BOTTLED WATER MARKET Leading Countries' Consumption and Compound Annual Growth Rates Millions of Gallons CAGR* Rank Countries /07 1 United States 5, , % 2 Mexico 3, , % 3 China 2, , % 4 Brazil 2, , % 5 Italy 2, , % 6 Germany 2, , % 7 Indonesia 1, , % 8 France 2, , % 9 Thailand 1, , % 10 Spain 1, , % Top 10 Subtotal 25, , % All Others 9, , % WORLD TOTAL 34, , % * Compound annual growth rate 12

13 Market Analysis U.S. According to the Beverage Marke.ng Corpora.on, total U.S. volume of bo3led water surpassed 8.8 billion gallons in 2007 (an increase of 6.9% over 2006) U.S. BOTTLED WATER MARKET Volume and Producer Revenues (P) Millions of Annual % Millions of Annual % Year Gallons Change US$ Change 2008(P) 9, % $12, % , % $11, % , % $10, % , % $10, % , % $9, % , % $8, % , % $7, % , % $6, % , $6, (P) Preliminary The U.S. is the leading country worldwide in terms of bopled water consump:on. Total consump:on per person in the U.S. is es:mated at 29 gallons per year. 13

14 Market Analysis Selected Countries The growth in the total consump.on of bo3led water in selected countries in Asia are shown below: (P) China & Taiwan 605 1,318 2,338 2,616 Japan Korea Thailand ,085 1,091 Indonesia ,528 1,619 Philippines Malaysia *In million gallons Total Consumption of Bottled Water in Selected Countries in Asia Source: Beverage Marketing Corporation 14

15 Water License Capacity - In Perspec.ve In 2007, sta.s.cs suggest that 4.8 billion gallons of bo3led water were consumed in China alone Blu Gold s 100,000 GPD water license opera.ng at full capacity would only account for % of China s annual bo3led water market Significant market poten:al exists in the bo@led water market Capacity of Water License versus Chinese Bottled Water Market (2007) 0.76% 99.24% Total Chinese Market (2007) billion gallons per year 100,000 GPD License million gallons per year 15

16 Investment Summary Unique opportunity to own a license(s) to a premium glacier natural spring water source Water source is located in close proximity to the Port of Vancouver (i.e., lower transporta.on costs) Bo3ling opera.on startup is quicker given exis.ng infrastructure in place Fully commi3ed management team with extensive experience in marke.ng, risk management, public markets and in the food and beverage industry Strong growth in the worldwide bo3led water market, not only in China but also in developing markets such as Mexico and Brazil 16