Water Project
CANAM Water & Beverage has divided its project into two phases. In Phase One CANAM Water & Beverage will set up a medium size facility in the existing quality of Industrial Park in the City of Tecumseh, Michigan, (Oldest and one of the top best towns in the United States of America) by utilizing 60,000 gallons per day to set up a hold in the local and regional market share (United States and Canada).
After successful implementation of Phase One, Phase Two will be set up to utilize the capacity of 180,000 and more gallons per day in a new industrial Park of the City of Tecumseh on a larger lot by building quality eco-friendly facility in the whole world and well equipped with the future technology in robotic manufacturing sciences.
Necessity of Water
Water is vital for all known forms of life. Water is an everyday necessity. Clean drinking water is essential for humans and other life forms. To function properly the body requires water to avoid dehydration. It is estimated that minimum 6 to 7 glasses of water daily is required to maintain hydration. Following are the vital sources and categories of drinking water:
- Tap Water: Tap water is part of the indoor plumbing which became available during last quarter of 19th century. There are health concerns regarding leaking of contaminant into local water supply.
- Bottled Water: Water is classified as bottled water when it meets all applicable standards and is packed in sanitary containers. Bottled water is a good beverage choice for hydration due to its consistent quality, safety, taste and convenience.
There are two major types of bottled water, spring water and purified water:
- Spring Water: Spring water is derived from underground formation and flows naturally to the surface, which is then disinfected and bottled. The major brands in this category are Nestle and Evian.
- Purified Water: Purified water is the water that has been treated by using distillation or reverse osmosis processes. Reverse osmosis removes 99% of dissolved solids, salts, minerals, organic chemicals and other impurities. It also improves the taste of water. The major brands in this category are Aquafina and Dasani. There is need to educate consumers about the qualities of purified water over spring water.
Bottled Water Market
Though bottled water is more expensive than tap water and even has a strong anti-bottle movement, it is still gaining popularity with health conscious and upwardly mobile people due to the quality, convenience and safety it provides. Recent contamination incidents with tap water have helped to increase the image of bottled water.
In 2013, bottled water consumption in USA was over 10 billion gallons that was valued at approx. 12 billion dollars. Per capita consumption during 2013 was around 30 gallons.
Here are some excerpts from Bottled Water Reporter by Beverage Marketing Corporation to support bottled water market:
- “Though bottled water is frequently compared to tap water, bottled water actually achieved its growth by luring consumers away from other packaged beverages perceived as less healthy than bottled water. While some consumers turning away from regular, full-calorie sodas shift to diet versions, a growing percentage is opting to imbibe bottled water.”
- “However, consumers have demonstrated a strong thirst for bottled water that will persist in the future. Changes in average intake indicate the high level of consumer interest in a product they perceive as a healthful alternative to other beverages. Americans upped their annual consumption by nearly a dozen gallons from 16.7 gallons per person in 2000 to 30 gallons in twelve years later.”
- “Domestic non-sparkling water is the largest and strongest part of the U.S. packaged water industry, consistently outperforming other segments. Domestic non-sparkling water’s 8.4 billion gallons represented 95.8 percent of total volume in 2008. As a whole, domestic non-sparkling moved at essentially the same pace as the total market. The segment includes diverse components that experienced very different results. As it has for years, the retail premium PET segment— consisting of still water in single-serve PET bottles —continued to drive the overall category’s development. PET volume increased from 1.4 billion gallons in 2000 to 5.2 billion gallons eight years later, boosting its share of total bottled water volume from 29 percent to more than 60 percent. For 16 consecutive times from the early 1990s to 2010, annual growth rates for the PET segment exceeded by almost 12 percent.”
CANAM’s Water Purification Process
CANAM’s water purification process will further purify city water by using pre-filtration, reverse osmosis, ultraviolet disinfection, activated-carbon filter and ozone injection. Purification is a value added process that enhances quality, purity, safety and taste of water through double reverse osmosis, multitude of precision filters, odor and virus elimination and taste improvement processes. In this process the recovery of water is about 50%. Purified water warrants higher prices.
CANAM Marketing and Sales
CANAM Water as wholesaler will market initially its premium non-sparkling purified water in PET bottles in USA and Canada markets through its highly qualified and strong marketing / sales team, and through strong networking of our regional and national retail chains. CANAM has also identified markets in Europe, Middle East, Latin America, and South and Far Asian. And, through its reliable distributor contacts, CANAM bottled water are also in the pipeline to export in these lucrative and dynamic market areas.
CANAM Water Operations and Methodology
CANAM Water wants to start pilot project with 4,000 – 6, 000 bottles per hour output capacity, which will utilize about 50,000 gallons per day. After successful start-up of operation we have also worked out our detailed plan as phase 2 to utilize the permitted water withdrawal quantity.
In the pursuit of this dynamic and profitable business venture, we have completed all the preparatory work, developed portfolio strategic plan, program benefit plan, project based plan for execution, fool-proof monitoring and controlling system, functional operational plans, processing and manufacturing methodologies, and now we are at production stage. We also have lined up our sales, distribution network, and customized local and international private labeling for our valuable corporate clients.