Beston Global Food Company (BFC) announces that it has entered into contracts to acquire 51% of South Australian water business AQUAEssence.
AQUAEssence is a producer of premium quality based bottled water and has been supplying the domestic Australian market since 1998. It is natural spring water that has been naturally filtered for thousands of years through the limestone caves that connect the pristine underground aquifer systems surrounding the Blue Lake in Mount Gambier with access to an abundance of water resources.
In announcing the acquisition, the Chairman of BFC, Dr Roger Sexton, said that AQUAEssence had a number of unique quality and supply attributes which made it a perfect fit with the corporate strategy of BFC to take healthy food and beverage products to the worlds growing communities:
- AQUAEssence water is a naturally high alkaline spring water which is sourced from the pure underground aquifers of Mount Gambier.
The water has a natural pH of 7.9 compared with most spring waters in Australia which have a pH of 6.0 or less.
- AQUA Essence own the rights to over 140 million liters of water per annum. Currently only 1% of this resource is utilised each year by AQUAEssence.
Dr Sexton said that alkaline water is regarded by a number of health experts as having powerful antioxidant properties. It is thought that alkaline water combats and lowers the acidic conditions in our bodies caused by modern diets and helps maintain a healthy, disease fighting system. These experts believe that alkaline water passes through the body tissues more efficiently than acidic water and therefore provide superior hydration and nutrition at the cellular level.
Consumers of bottled water have in the past assumed that “water is water”, he said, but increasingly are becoming more discerning about the quality of the water that they drink.
Dr Sexton noted that the chemical composition of AQUAEssence water was very similar to “San Pellegrino” and “Evian” water, two of the largest selling bottled waters in the world.
Many consumers in China currently purchase home water ionizers to produce artificial alkaline water in their homes, in order to get the health benefits of drinking alkaline water.
Dr Sexton said that AQUAEssence is a very strategic acquisition for BFC and will add to the product range in its health and nutrition division.
The acquisition of the 51% interest in AQUAEssence is on a net asset basis for an amount of $AUD875.300. The cost of the acquisition by BFC is being met from retained funds.
The CEO of BFC, Mr Sean Ebert said that AQUAEssence focused primarily on selling its products into the domestic Australian market and had not yet tapped into the opportunities in overseas markets. BFC had undertaken extensive market testing and research on the potential for selling AQUAEssence into China and other Asian markets and had received extremely positive responses.
Tong Gasparini a Director of AQUAEssence said that he is very pleased to have formed a strategic partnership with BFC via the sale of 51% of the business.
“The product has been accepted in Australia and the company now wants to expand into the Asian market. With BFC’s extensive knowledge of the Asian market it will assist greatly in promoting and growing the AQUAEssence product range in this market”.