SCALING THE MARKET
- As of year 1-2 we will look into establishing ourselves locally (Catalonia) to solidify a position for a specific region. This way of concentrating on one market is better than spreading the effort. This is the area where we have the most contacts, influence, and knowledge on. Barcelona will be our test market and our base.
- Year 3-4 would include going to the bigger cities in Spain (Madrid, Valencia, Seville..) and expand when a good, strong position in Barcelona/Catalonia is acquired. We will not expand before we have executed some work locally to at least have tested the market. We do not require success before me move out, but experience on market operations, trends, deals, negotiations, etc.
- Year 5-6 would include either (a) solidifying and capturing the market in Spain more than what we have by then or (b) spread to other major cities in southern Europe close to Barcelona. The choice is between a having a lot of a little or a little of a lot. We can either become large in Spain, medium in Europe or small worldwide.
- As a natural progression we could expand our product line by having effervescent tables filled with vitamins/minerals/caffeine/L-carnitine/glutamine, etc. to complete ourselves as a more comprehensive nutritional brand.
- We see ourselves arranging for selling non-beverages online such as the effervescent tablets.
- The market for beverages is a large one that can accommodate several rival businesses
- Health/Nutrition is identified as the number one driver of the beverage industry
- 70% of Europeans are vitamin deficient
- Obesity has nearly tripled in Europe since 1980 – worst among children/youth
- There are 2.5M people aged 15-20 in Spain
- 380,000 aged 15-20 in Barcelona
- Sports and Energy Drinks Projected to be $52 Billion Market by 2016
- Soda sales down 1%, but overall beverage market up 0.9%, as healthier options are trending
- The beverage market in Europe covers 16 countries and was a €72.9 Bn market in 2009
- Spain accounted for 7% of European consumption = €5.1Bn
- Health & Sports Drink Market in Spain = €300M
- Health/Nutrition – 79%
- Convenience – 66%
- Price – 54%
- Regulation – 54%
- M&A – 52%
- Attracting Talent – 51%
Key Consumer Trends Driving the Industry:
- Convenience – 66%
- Premiumization – 48%
- Out-of-home Consumption – 35%
- Choice/Selection – 23%