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2. LOW COST BARGE ACCESS
AND TRANSPORTATION
The source is 200 miles north of
Vancouver and easily accessible
by water in a deep inlet. This
allows us to harvest and
transport water directly by barge.
3. EXCLUSIVE BULK WATER
EXPORT LICENSE
The only bulk export license in Canada
allows us to transport water in
containers larger than 18L across
international boundaries, we are the only
company in Canada permitted to do so.
1. PREMIUM “VIRGIN” GLACIER
WATER OF PROVEN QUALITY
This premium glacier water source
is “PURE” or “VIRGIN”. It is
superior to all other waters
because it contains no nitrates -
the signature of virgin waters.
EXECUTIVE SUMMARYAlpine Creek has the only bulk water export license in Canada. The purpose of this teaser is to solicit interest from; a) potential investors , and b) end users.
Glacier water is considered to be the healthiest water in the world to drink but is often
very difficult to access. Unlike other heavily processed water, (i.e., reverse osmosis,
distillation etc.) glacier water remains untouched, uncontaminated and especially pure.
This premium source comes from the melting ice of Hat Glacier and flows down a steep
granite decline and into the ocean. Located 200 miles from Vancouver in a deep inlet
accessible by barge, this represents an economic opportunity to export premium water in
bulk, as well as a unique source-to-bottling factory cost advantage; in terms of both
dollars and environmental impact.
GLACIAL WATER RIGHTS
SOURCE WATER HYDROLOGY REPORT FOR THE US FDA“The water quality of the water is excellent, with a total dissolved solids content of less
than 10 PPM. This sort of purity is only achievable through the melting of snow or ice. The
process of freezing water vapor into snow is a purification mechanism. Modern water
vapor will commonly contain organic molecules and/or sulfurous compounds picked up
from the atmosphere. When the water vapor is frozen, the regular atomic structure of the
ice cannot accommodate these molecules and they drop out of the solution … the
opportunity to develop acid rain and the concomitant metals is eliminated resulting in very
pure water.” - Emerson Groundwater Consulting Inc
Coastal Mountain Range of BCHat Mountain Glacier
Alpine Creek, Toba Inlet65M USG per annum
(228M liters)<10PPM
“Already, water connoisseurs …- rank the emerging brand among the market’s most prestigious, and pricey bottles.”
MACLEAN’S MAGAZINE
HISTORY
“Clear, pure appearance and similarly pure nose. Clean taste, and soft texture. Attractive.”
DECANTER MAGAZINE
“[10 Thousand BC®] is positioned as high-end bottled water- inside and out”
FOOD IN CANADA MAGAZINE
The former owners attempted to build the business through larger size premium glass-bottled water at luxury prices however they were never able to
achieve successful sales volume. They were severely undercapitalized and were ultimately forced to shut down operations after suffering consecutive
issues with damage during shipping and quality difficulties with suppliers of their frosted glass bottles. However, the brand stood out amongst the
premium bottled water market and connoisseur’s for its taste and absolute purity.
THE BULK EXPORT PORTION OF THE LICENSE HAS NOT BEEN UTILIZED TO DATE.
TABLE OF CONTENTS
3. THE SOURCE
4. THE MARKET
1. COVER PAGE
2. OVERVIEW
7. BULK WATER TO CALIFORNIA
8. BULK BARGE EXPORTS
5. PREMIUM BOTTLED WATER TO CHINA
6. BOTTLING OPERATIONS
2
Alpine Creek is located on the south shore of Toba Inlet, a fjord in the Coast Mountains of British Columbia.
The fjord was formed during the last glaciation approximately 10,000 years ago. Several glaciers remain in the
coast mountains of British Columbia, ranging in area from hundreds of square kilometers to a few square
kilometers. The largest sub-watershed is approximately 11.3 square kilometers in area and contains a series of
small unnamed lakes. These lakes are formed in glacial cirques and range in elevation from 1,185 meters at
the lowest lake to approximately 1,380 meters at the upper lake. The entire length of the stream is very steep,
losing approximately 1,200 meters of elevation in just three kilometers.
GLACIAL WATER SOURCELocked in an icy vault for thousands of years, this ultra–
premium glacier water comes from the Coastal Glacier Range
in British Columbia. This pure water source is ideally located
200 miles north of Vancouver in the Toba Inlet and boasts a
6,000 foot vertical drop which makes it completely isolated
and untouched by humans or animals.
200 miles From Canada’s
Largest Port
DIRECT BARGE ACCESS2. Hoses can be attached to a stainless steel pipe and bridge systemrunning from the barge and placed in the natural granite basin at the baseof the glacier waterfall.
1. The barge has the capability to travel directly to the source where
a steep drop off to an approximate depth of 30 meters allows closeproximity to the shoreline.
3. The barge can fill 10 million liter holding tanks within less than aday and dependent upon the pumps utilized, the timing could beconsiderably shortened.
4. The barge can travel directly to its next destination whether that bebulk shipments direct to California or a bottling facility near theinternational port of Vancouver.
3
MARKET OVERVIEW
Even though the global per capita consumption figure obscures
pronounced regional disparities, bottled water’s international growth
signals demand for it in diverse markets. Consumers have demonstrated
a thirst for it in highly developed markets, in less developed ones, and in
economies in transition. Bottled water has tapped into the different
consumer trends around the globe.
BULK EXPORT
California
India
Saudi Arabia
UAE
PREMUIM BOTTLED
China
South Korea
Japan
Saudi Arabia
TARGET MARKETS
During the 20th century, the world’s population increased fourfold, but
the amount of freshwater used increased nine times over. Under an
average economic growth scenario and if no efficiency gains are
assumed, by 2030, global water requirements will grow from 4,500
billion m3 today to 6,900 billion m3. This is a full 40 percent above the
volume of water that is currently accessible, reliable and environmentally
sustainable. The market for bottled water is developing rapidly in Asia
due to understandable consumer demand for purity, hygiene and
convenience.
The earth has a finite stock of water. There is precisely the same amount
of water on the planet now – as the world’s population approaches
seven billion people – as when there were 300 million global inhabitants
during Roman times. This same amount of water will also meet the
demands of the world’s growing population which is expected to
increase by approximately 50 percent to more than nine billion by 2050.
GLOBAL FRESH WATER SUPPLIES
According to industry experts and data:
• The world bottled water market is estimated to be worth US $100
billion by 2014.
• The luxury bottled water market is 6.3% of the total market and is
worth an estimated $4 Billion.
• The large companies such as Coke, Pepsi and Nestles are not in the
high-end market because it is too small which has left it open for
companies who have a unique source like Alpine Creek.
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
ADVERTISING EXPENDITURES FOR BEVERAGE CATEGORIES
MILLIONS $ SPENT
Still water accounts for the majority of bottled water sales in much ofthe world. On a global level, sparkling water accounts for an estimated10 percent of the total volume, with still water accounting for theremaining 90 percent. Advertising dollars spent on bottled water isespecially low compared to other beverages.
BOTTLED WATER INDUSTRY OVERVIEW
0
50
100
150
200
250
300
350
400
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
PROJECTED ANNUAL SALES GROWTH THROUGH 2018
MARKET SIZE IN BILLIONS OF DOLLARS
4
AVENUE I: PREMIUM BOTTLED WATER, CHINA(Seeking Distribution Partners)
In 2013 thousands of rotting pigs’ carcasses were found in the Huangpu river,
which supplies four-fifths of tap water to Shanghai, China’s most populous city.
Last April, in the industrial city of Lanzhou in the north-west, a leak from an oil
company’s pipeline poisoned tap water for 2.4m locals with carcinogenic
benzene. And even if water meets drinking standards at source, it can be
harmful by the time it reaches the tap after coursing through decaying pipelines.
Shenzhen-based consulting firm Askci said the retail market for high-end bottled
water in China topped 500,000 tonnes last year, with sales reaching 10.8 billion
yuan (US$1.8 billion). The market also continues to grow as the retail sales of
high-end water accounted for 42.6% of the total bottled water sales for 2012,
which was nearly three times higher than the percentage of sales for the low-
and middle-end water markets.
Some of the largest brands have come under scrutiny: last December the
authorities in Shanghai found that a quarter of bottled water sold locally was
contaminated with bacteria. National regulators have raised concerns about
bottlers complying with laxer local standards (which allow higher levels of such
contaminants as arsenic and cadmium) rather than their own, stricter standards.
According to CI
Consulting, the profit
margin of China's mineral
water was merely 3.85%
but that of high-end
bottled water is up to
seven times higher than
regular water.
China was the only country that could claim a double-digit
share of global volume with 11.5 billion gallons and a
percentage of total market higher than that held by the
United States. Chinese bottled water volume enjoyed double-
digit percentage growth rates for several consecutive years,
registering a 15% CAGR for the period from 2009 to 2014 – the
highest rate among the five biggest bottled water markets.
POLLUTION FEARS DRIVING CONSUMERS TO PREMIUM WATERS
Hygiene and health concerns among China’s rising middle class have stoked
demand for premium bottled water
In 2009 the World Bank said water problems cost the country over 2% of GDP
every year
mostly due to damage to health
HIGH END BOTTLED WATER MARGINS
5
WATER IN CHINA: TEN FACTS
LOW COST SOURCE WATER EXTRACTION LOW COST TRANSPORTATION VIA BARGE RARE GLACIER WATER
TOP PERCENTILE OF VIRGIN WATERS CLOSE PROXIMITY TO CANADA’S LARGEST PORT LOW COST SHIPPING COSTS TO INTERNATIONAL MARKETS
BOTTLING OPERATIONS
Barge Extraction (Source to Plant) $0.001 per liter
Bottle Costs $0.036 (per 375ml bottle)
Bottling Costs $0.045 (per 375ml bottle)
Transportation Costs $0.019 (per 375ml bottle)
Shipping Costs (China) $0.09 (per 375ml bottle)
= Low Operating Costs
COST ANALYSIS
Machine Specifications(FULLY AUTOMATED)
Capacity – Bottles Per Hour (600ml)
35,000-40,000
# Washing & Filling Heads
80 each
# Capping heads 40
WEIGHT 15,000kg
Suitable Bottle Specification (ml)
330-2250ml
Overall Dimensions (cm)
7680x6640x285
Motor power(kw) 19kw
Frances’ BADOIT Natural Spring Water
US$5.17/ Bottle
Hawaiian WaiakeaNatural Mineral Water
US$3.00/ Bottle
U.S.’s Mountain Valley Natural Spring Water
US$5.60/ Bottle
France’s Saint GéronNatural Mineral Water
US$3.00/ Bottle
France’s Volvic Natural Spring Water
US$3.67/ Bottle
Norway’s VOSS Natural Artesian Water
US$2.00/ Bottle
UK’s Hildon Natural Mineral Water
US$2.00/ Bottle
RETAIL PRICING ANALYSISRetail margins for bottled water are generally very high across the industry. With the cost of bulk water decreasing to a level where it can now competewith processed water, many suppliers are looking to the benefits of a higher quality product without the traditional costs associated with premiumsources
The advantage of low-cost barge access and close proximity to the international port of Vancouver is perhaps most apparent allows us to achieve a low cost from source to final destinations in China.
BOTTLING PLANT SPECIFICATIONS
COMPETITIVE ADVANTAGES
6
• Bottles will come in multipacks of 4 bottles and cases of 6packs (24 bottles)
• Pallets will contain 65 cases (1560 bottles)
• Up to 88 pallets can be accommodated via tractor truck bystacking two 40 ft HQ containers (137,280 bottles)
330ml to 350ml are theleading sizes for bottledwater sales in China
Smaller size reinforcespremium image of waterquality
Few premium waterscompeting in the 330ml to350ml size categories
As difficult as it may be to face, the simple fact is that California is running out
of water. NASA data reveal that total water storage in California has been in
steady decline since at least 2002, when satellite-based monitoring began,
although groundwater depletion has been going on since the early 20th
century.
Right now the state has only about one year of water supply left in its
reservoirs, and its strategic backup supply, groundwater, is rapidly
disappearing. Data from NASA satellites show that the total amount of water
stored in the Sacramento and San Joaquin river basins — that is, all of the
snow, river and reservoir water, water in soils and groundwater combined —
was 34 million acre-feet below normal in 2014. That loss is nearly 1.5 times
the capacity of Lake Mead, America's largest reservoir.
-James Famiglietti, NASA Senior Water Cycle Scientist and leader of the JPL Water Initiative.
AVENUE ll: BULK EXPORT, CALIFORNIA(Seeking Bottlers in California)
THERE ARE MORE THAN 100 WATER BOTTLING PLANTS IN CALIFORNIA
Data from the NASA Gravity Recovery and Climate Experiment (GRACE)
mission has shown us that since 2011, water losses in California have been
catastrophic. In each of the last 3 years, California has lost more than 8
trillion gallons of water, which is more than all 39 million Californians use
each year in their homes, and for industrial and municipal use.
The National Weather Service in Sacramento says it would take
200 to 270 percent of average precipitation to make up for the
past three years of drought in California.
"This is now the fourth consecutive water year that Northern
California has not received its normal amount of rain and
mountain snow," said Michelle Mead, Warning Coordination
Meteorologist with the National Weather Service in Sacramento.
The April 1 snow survey showed the Sierra Nevada snowpack was
the lowest on record for that date at only 5 percent.
Water cannot be transferred in bulk from state to state.
Nestlé’s facility buys millions of gallons of Sacramento municipal
water and also bottles spring water shipped in from Northern
California counties. A grassroots group called the Crunch Nestlé
Alliance has been organizing to shut down the plant.
More Californians are questioning why giant bottled-water sellers
continue to tap the state’s dwindling water supply during the
worst drought in state history and are pressuring big retailers to
stop using the scarce resource.
MORE THAN 80% OF WATER BOTTLED IN CALIFORNIA IS CONSUMED WITHIN THE STATE
7
OPERATING METRIC SAN FRANCISCO HUMBOLDT BAY
DISTANCE ( source CA)
~ 840 nautical miles (1555km)
~ 610 nautical miles (1135km)
VOYAGE TIME (round trip)
~ 6.1 days travel ~1 day unloading~1 day loading
=Total of 8.1 days
~ 4.3 days travel~1 day unloading~1 day loading
=Total of 6.3 days
FUEL COSTS (round trip)
= $86,785 ($0.0084/L)
= $60,590 ($0.0059/L)
CREW COST (round trip)
= $13,680 (Captain, Engineer, Tug crew x 6)
= $10,260 (Captain, Engineer, Tug crew x 6)
OTHER COSTS (round trip)
=$35,000 (Demurrage, anchorage fees, dockage, wharf fees, loading)
= $30,000 (Demurrage, anchorage fees, dockage, wharf fees, loading)
SUSTAINING OPERATING COST
~ $0.013 per liter ~ $0.0098 per liter
Barges are the most efficient method of transportation for transportation of bulk
commodities. Direct barge access and the license to export water in bulk tank
barges creates an economically viable opportunity that is extremely rare.
To illustrate this idea, we have provided the by-the-liter cost to deliver our water in
bulk to two popular California ports of varying distance.
TANK BARGE TRANSPORTATION
514ton miles
per gallon of fuel
202ton miles
per gallon of fuel
59ton miles
per gallon of fuel
TRUCKBARGE RAIL
We will have the capability to internationally distribute 65M USG (246M Liters) of high-end glacier water annually utilizing the only bulk water export license in Canada. As of 2008, the Canadian government has ruled that NO MORE LICENSES OR PERMITS will be granted to any NEW water enterprise effectively immediately. This applies to both surface and/or spring water sources. Additionally, with the exception of this glacier water license, no other Canadian company can export water internationally in individual containers larger than 18 liters. Water from this source will be collected by tank barge directly at the source and can cross international boundaries; it is the only Canadian water license permitted to do so.
EXCLUSIVE BULK WATER EXPORT LICENSE
BULK BARGE METRICS
VESSEL SPEED = 11 knots full/ 12 knots empty @ 10.8 t fuel consumption/ day
VESSEL CAPACITY = 10.335M liters (11,392 tons)
VESSEL WEIGHT (net tonnage)
= 2910 tons
ANNUAL CAPACITY =24 trips to reach our max annual license capacity of 65M US gallons (246,052,000 liters)
8