#USA #Honolulu #Eco-Growth Strategies #Hawaiian Isles Water #bottled water

Eco-Growth Strategies, Inc. Expands Through Strategic Acquisition

Eco-Growth Strategies, Inc., a leading bottler known for its purified and spring water products, has made a significant move in the beverage industry, announcing the acquisition of the assets belonging to Hawaiian Isles Water (HIW), headquartered in Aiea, Hawaii. This acquisition includes all brand elements, bottling equipment, and raw material inventory, which are estimated to be valued at approximately $6 million USD. The deal solidifies Eco-Growth's strategic goal of enhancing its market presence across the Hawaiian Islands and beyond.

Details of the Acquisition

The acquisition involves securing a lease for the second largest bottled water plant situated near Honolulu, Hawaii. This facility spans about 55,000 square feet and has significant potential for increased production capabilities, with the possibility of generating up to $100 million in revenue through further equipment installations. Eco-Growth Strategies has committed to investing around $1.2 million in retrofitting the plant, which will include essential upgrades like electrical systems, lighting, office space renovations, and HVAC updates.

HIW, established 29 years ago, has maintained a solid foothold in the market, recording a run rate of approximately $15 million with a net income of around $2 million in the fiscal year 2023. This strong financial performance showcases the brand's established customer base and solid market reputation, both of which Eco-Growth intends to leverage for growth.

Future Prospects

According to Lewis Cohen, President of Eco-Growth Strategies, the company is optimistic about this acquisition's potential. The immediate plan includes retaining HIW's existing customer relationships while seeking to broaden the customer base through new co-branding and bottling agreements. These initiatives are expected to add an estimated $30 million in revenue and approximately $7 million in net income.

William (Bill) Delgado, CEO of Eco-Growth, emphasized the company's intent to revitalize the Hawaiian Isles Water brand, which has a long-standing presence in the market. Eco-Growth aims to expand operations not only within Hawaii but also eyeing ambitious plans for major expansions into Asian markets including China, the Philippines, South Korea, and Japan by the end of the year. The management team, which boasts an average of over 30 years of experience in the snack food and beverage industry, is poised to drive this expansion strategy.

Commitment to Sustainability and Quality

The mission of Eco-Growth Strategies extends beyond financial growth. The company is committed to employing best practices in sourcing, manufacturing, and packaging high-quality water products, with an emphasis on sustainability and eco-friendliness. As part of its operational overhaul, Eco-Growth will continue to focus on environmentally sustainable practices in all its operations, ensuring they contribute positively to both the economy and the environment.

This acquisition not only signifies a major step for Eco-Growth Strategies in amplifying its operational capabilities but also highlights the ongoing consolidation trend within the beverage industry, particularly in the bottled water segment. As competition increases and consumer expectations evolve, adapting through strategic acquisitions like this establishes a robust platform for future growth and innovation.

Conclusion

With the acquisition of Hawaiian Isles Water, Eco-Growth Strategies, Inc. is set to make considerable strides in the bottled water sector. Their investment in infrastructure and strategic market expansions reflect a forward-thinking approach that could revolutionize their business operations and enhance their standing in the key markets of Hawaii and Asia. As the company moves forward, the industry will undoubtedly keep a close eye on their developments and execution of growth plans.