One Liner Description: Kona Deep® - The ONLY all natural electrolyte water on this planet! Bottled at the source in Hawaii.Business Summary: We manufacture and bottle "Kona Deep®", a deep seawaterdrinking brand. Deep seawater has become the No.1 food export of Hawaii, havingsurpassed Macadamia Nuts…
One Liner Description: Kona Deep® - The ONLY all natural electrolyte water on this planet! Bottled at the source in Hawaii.
Business Summary: We manufacture and bottle "Kona Deep®", a deep seawater drinking brand. Deep seawater has become the No.1 food export of Hawaii, having surpassed Macadamia Nuts and Coffee (combined) in 2007. In 2011, over $140,000,000 in deep sea bottled drinking water was exported from the State of Hawaii. In 2012, Kona Deep® became the #1 top-selling deep seawater brand in the USA. Our plan is to become #1 in the global market by leveraging our status as the #1 brand in the USA.. Management: The team we formed in 2011 has an audited track record in the supermarket, logistics, and finance industry. From an operations perspective, our plant's production supervisor was employee no. 1 and our brand consultant was employee no. 2 of our largest (and only) significant competitor in the global deep seawater beverage industry.
Product: Kona Deep® is made from deep seawater drawn from Kona, Hawaii, the most remote archipelago in the world located at the end of the Global Conveyor Belt. Deep seawater is drawn from 3,000 feet (910m) below the surface. Water at this depth is old, cold, and free of contaminants and pollutants that taint all other waters. Our water has been analyzed by the Woods Hole Oceanographic Institution (est. 1930) and has an age of 1,050 years after factoring in the margin of error for Carbon 14 radiocarbon dating. The water is rich in important nutrients and minerals and is certified pathogen free by NELHA, an instrumentality of the State of Hawaii and our partner. The NELHA authenticity certification logo is on all bottles of Kona Deep and is owned by the State of Hawaii and registered with the United States Patent and Trademark Office. Our 500ml bottle is also pleasing to look at, as recognized by our award of "Best Bottle Design of 2007" by Fine Waters International.
Markets: (1) USA; (2) China; (3) Mexico; (4) Canada; and (4) the Gulf States.
Customers: In years prior to 2011, we had virtually no repeat orders from anyone. In 2011, we acquired repeat customers in the USA (307mm pops) from Wakefern,ShopRite, Brookshires, The FRESH, Duane Reade (Walgreens), and Paradise Beverages. We also commenced distribution in The Republic of Korea (49mm pops) and are now sold by our exclusive Korean distributor to chaebols Shinsaegae, Lotte, and Hyundai. In 2012, we built on this base of repeat customers, and are now in the process of closing additional distribution deals with TopCo, Wegmans, Shaws, CVS, Safeway, and Whole Foods in the USA. Building on this success in the USA, we intend to launch in Japan (127mm pops) later this year. To date, all of our customers have been acquired through personal contacts and relationships, with virtually no marketing expenditure. Test Marketing: In a five (5) week in-store promotion conducted from February to March 2012, one of our grocery chains (Brookshires) test marketed Kona Deep (500ml) in its Texas stores. Over 40,000 bottles were sold in 5 weeks in the winter, averaging 1,142 bottles per day.
Use of Funds: Kona Deep® in 2012 reached an inflection point where we are now operating cash flow positive. (note that most 2011 expenditures were used to pay off debt incurred by prior management and carried over from 2010). We currently have purchase orders that are being delayed in fulfillment because we are unable to order enough inventory in bulk from our supply chain vendors to keep up with recurring and new orders. In addition, we have been asked by grocery stores who stock Kona Deep to develop a 1L bottle, which we are now working on. In order to address our current supply chain needs, develop our 1L bottle, and meet anticipated summer orders for our 500ml and 1L offerings, we are raising capital now to provide for our growth.
Team (1)
Sectors Kona Deep serves:
Consumer Goods
Consumer Services
Retail
Life Sciences
Distribution
Industrials
Business Services
Health Care
Manufacturing
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