Eco-Growth Strategies Expands Footprint with HIW Acquisition
Exciting Developments at Eco-Growth Strategies, Inc.
Eco-Growth Strategies, Inc. (OTC: ECGS) has made a significant move in the bottled water industry by acquiring the assets of Hawaiian Isles Water (HIW). This acquisition includes the valuable intellectual property, bottling equipment, and raw materials inventory associated with HIW, a well-established brand that has been serving the purified bottled water market for nearly three decades.
Strategic Importance of the Acquisition
The acquisition positions Eco-Growth Strategies as a key player in the market, enhancing its capacity to provide high-quality bottled water across multiple regions. The Coca-Cola and PepsiCo of the world are excellent examples of brands that have grown by strategically acquiring smaller players, and Eco-Growth is looking to replicate this success. With the valuable assets acquired from Hawaiian Isles Water, ECGS is set to enhance its operational efficiency and expand its product offerings.
Investment in Retrofitting the Plant
To bolster its operational capacity, Eco-Growth has already invested approximately $1.2 million in retrofitting the HIW bottling plant. This extensive renovation includes critical upgrades such as new electrical systems, improved lighting, office remodeling, and essential HVAC repairs. The facility itself, which spans around 55,000 square feet, is poised to significantly expand its productive capacity.
Existing Performance Metrics of HIW
Hawaiian Isles Water has demonstrated robust financial performance, reporting a fiscal year 2023 run rate of approximately $15 million, alongside an impressive adjusted net income of around $2 million. These strong figures highlight the value this acquisition brings to Eco-Growth Strategies, not just in terms of assets but also through an established customer base.
Future Growth Prospects for ECGS
Lewis Cohen, President of Eco-Growth Strategies, expressed enthusiasm about the acquisition, outlining intentions to retain existing customers while expanding the brand's reach. The company is set to renew its two co-bottling agreements and aims to introduce two additional agreements by the third quarter. This growth plan is expected to generate around $30 million in additional revenue and approximately $7 million in net income.
Global Market Expansion Plans
Notably, the CEO of Eco-Growth, William (Bill) Delgado, reflecting on the acquisition, indicated plans for expansion beyond the Hawaiian Islands. The management team, comprised of beverage industry veterans with over 30 years of experience each, has set ambitious goals to penetrate markets in regions such as Asia, including China, the Philippines, South Korea, and Japan by year-end. This global outreach is critical in furthering the Eco-Growth brand’s impact.
About Eco-Growth Strategies, Inc.
Eco-Growth Strategies takes pride in its position as a reformed and ambitious bottler of purified and natural spring water. The firm dedicates itself to best practices in sourcing, manufacturing, and packaging top-quality water products across the Hawaiian Islands, Asia, and North America. This focus aligns with the company’s mission to meet growing consumer demands for safe and refreshing bottled water.
Contact Information
For inquiries regarding this acquisition or for more information about Eco-Growth Strategies, please contact:
Lewis Cohen
l.cohen@hawaiianisleswater.com
925-260-6434
Frequently Asked Questions
What is Eco-Growth Strategies, Inc. known for?
Eco-Growth Strategies, Inc. focuses on bottling and distributing purified and natural spring water in various regions.
What assets did ECGS acquire from Hawaiian Isles Water?
ECGS acquired branding, intellectual property, bottling equipment, and raw materials inventory from Hawaiian Isles Water.
What has Eco-Growth Strategies invested in recently?
ECGS has invested around $1.2 million in retrofitting the HIW bottling plant to enhance operational capabilities.
What is the projected revenue from the new agreements?
Eco-Growth Strategies expects to add approximately $30 million in additional revenue from new co-bottling agreements.
Where does Eco-Growth plan to expand its market reach?
Eco-Growth Strategies is planning to expand its operations into Asia, including markets like China, the Philippines, South Korea, and Japan.
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