Aquaessence eyes China water exports
March 9, 2015 3:20pm
VALERINA CHANGARATHILThe Advertiser
Aquaessence manager Ian Martin, Tradestart adviser Bruce Rodda and Aquaessence owner Tony Gasparini at the Flinders Park distribution site.
MOUNT Gambier-based packaged water supplier Aquaessence is pumped about massive expansion plans to quench China’s growing thirst for clean water.
The company, which owns two water licences to aquifers near the Blue Lake, says it can export 170 million litres of water per year into China.
Aquaessence currently processes one million litres of water to produce its branded spring and flavoured water that is sold through Woolworths nationally and 120 BP on the Run outlets in South Australia.
Drakes Supermarkets is due to start stocking the brand and BHP Billiton has bought 14,000 long-life 600ml pouches for 25 emergency sites at its mines.
A new non-fizzy energy drink will be launched in the next few months.
The eight-year-old company, formerly known as Water For Life, is now owned by Mount Gambier businessman Tony Gasparini, also owner of Gasparini Transport, Ian Martin and Justin Telford.
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“We worked out if we did the 170 million litres year, we would need 80 B-Doubles out of Mt Gambier every week. The spin-offs will be phenomenal in terms of jobs for the region,” Mr Martin said.
“If we get China on board, we’ll reduce our costs as well and compete with majors in Australia.
So it’s not just about the Chinese market, but we will also get inroads in the local market,” he said.
Mr Gasparini said he approached Tradestart - a joint export development initiative of the federal and state governments - after a Chinese buyer made an offer for the company.
It followed three containers, or 30,000 litres of its water, being shipped to the Asian market through Australia-based distributors.
“We looked at the interest in the company and needed help to find an investor who will grow the company not just own it.”
“We are not for sale, but we are looking for a partner to build and market to China,” Mr Gasparini said.
“We are sleeping right now. We have abundance of water - what we are pumping is nothing.
“We have two water licences, had them for 15-20 years and we are lucky to have the strong alkaline water that we do.
“Our region has massive dairies, horticulture. There is abundant supply and rain.”
Mr Martin said the company has commissioned KPMG to study the market for its products, partly funded by a $50,000 grant from the State Government’s Export Parnership Program in recent weeks.
Aquaessence is part of the trade delegation led by Premier Jay Weatherill to China in May, and hopes to narrow its search for an investor then.
Water is processed and bottled at the Mount Gambier processing plant, set up on 15 acres of land at Yahl.
The bottles and pouches are trucked to a warehouse at Flinders Park, from where it is distributed across the state.
Aquaessence employs nine staff.
(20min delay)