Strong customer base, good customer relationships:
Post# of 2290
Posted On: 05/05/2016 2:28:29 PM
Strong customer base, good customer relationships: With our affiliated company Les Sources Saint-Elie
Inc. in Quebec, Canada, BRWC’s emphasis on customization and quality has earned us what we believe to
be a good reputation over the years.
We pack for a number of high-profile brands. Our Customers are a well-diversified mix of beverage and
other companies and represent a variety of retail channels and include retailers and large water marketers.
• Successful turnaround positions: Management believes BRWC is well positioned for future growth and
pushing the company closer to fulfilling our mission to become one of North America’s leading producers
of high-end private label bottled water.
Key elements of the turnaround included capital expenditures for new equipment, enhanced customer
service, focusing on the non-commoditized business, and improving employee and vendor relations. We
have plans to improve our bottling capabilities as well.
Saint-Élie is an affiliated company of BRWC. Affiliated companies are generally defined as those entities
having shared management, common owners and/or shared ownership interests in other entities. This
affiliation is based on the commonality of management and ownership of both companies. Mrs. Lavoie is
President, CEO and the sole member of the Board of Directors of both companies. Mrs. Lavoie owns 75%
of Boreal and 100% of a Canadian holding company known as 3090-8925 Quebec Inc. that, in turn, owns
90% of Saint-Élie.
We have an ongoing licensing/exclusive distribution agreement with Saint-Élie. Our first agreement was
dated December 17, 2007. It was amended on June 18, 2008 and then both agreements were replaced by the
current “Revised Licensing Agreement” dated June 26, 2009 (“distribution agreement” - an exhibit to this
Registration Statement). The distribution agreement has a term of 5 years, with automatic one year
extensions thereafter. Generally, the distribution agreement is an exclusive distribution and branding
agreement for Saint-Élie products in the United States (and its possessions). The distribution agreement flat
fee is $1 million (U.S.) (“flat fee”). Saint-Élie is also paid 5% of sublicensing fees and was issued 22
million shares of restricted BRWC common stock. Boreal is responsible for its own bottling, packaging,
delivery and sub-marketing arrangements and expenses. BRWC co-pack one large customer for Saint-Élie
because BRWC can produce distilled water and Saint-Élie does not. Saint-Élie co-packs for a few
customers of BRWC; Saint-Élie produces sparkling water and BRWC do not.
Why customers choose BRWC: Value-added products and services. We believe the following factors come
into play:
• Reputation: History of reliability, flexibility, and specialized packaging capability.
• Location: Close to natural spring water, good transportation corridors, good population centers.
• Flexibility and a variety of packaging and product options: Ability to fill unique bottle shapes and sizes
(while most high-speed lines use only a limited bottle selection). Ability to bottle value-added water, i.e.,
vapor distilled water with electrolytes and/or vitamins and minerals. Customers requiring unique
bottles/packaging tend to be higher margin because the product is sold at higher price points at both the
retail and wholesale levels than “generic,” commoditized bottled water.
With exclusive exploitation rights (40 year contract dated on Nov 1, 1995), Boreal has the right to draw
225,000,000 liters of spring water per year as per a permit from the Quebec Ministry of Environment.
Inc. in Quebec, Canada, BRWC’s emphasis on customization and quality has earned us what we believe to
be a good reputation over the years.
We pack for a number of high-profile brands. Our Customers are a well-diversified mix of beverage and
other companies and represent a variety of retail channels and include retailers and large water marketers.
• Successful turnaround positions: Management believes BRWC is well positioned for future growth and
pushing the company closer to fulfilling our mission to become one of North America’s leading producers
of high-end private label bottled water.
Key elements of the turnaround included capital expenditures for new equipment, enhanced customer
service, focusing on the non-commoditized business, and improving employee and vendor relations. We
have plans to improve our bottling capabilities as well.
Saint-Élie is an affiliated company of BRWC. Affiliated companies are generally defined as those entities
having shared management, common owners and/or shared ownership interests in other entities. This
affiliation is based on the commonality of management and ownership of both companies. Mrs. Lavoie is
President, CEO and the sole member of the Board of Directors of both companies. Mrs. Lavoie owns 75%
of Boreal and 100% of a Canadian holding company known as 3090-8925 Quebec Inc. that, in turn, owns
90% of Saint-Élie.
We have an ongoing licensing/exclusive distribution agreement with Saint-Élie. Our first agreement was
dated December 17, 2007. It was amended on June 18, 2008 and then both agreements were replaced by the
current “Revised Licensing Agreement” dated June 26, 2009 (“distribution agreement” - an exhibit to this
Registration Statement). The distribution agreement has a term of 5 years, with automatic one year
extensions thereafter. Generally, the distribution agreement is an exclusive distribution and branding
agreement for Saint-Élie products in the United States (and its possessions). The distribution agreement flat
fee is $1 million (U.S.) (“flat fee”). Saint-Élie is also paid 5% of sublicensing fees and was issued 22
million shares of restricted BRWC common stock. Boreal is responsible for its own bottling, packaging,
delivery and sub-marketing arrangements and expenses. BRWC co-pack one large customer for Saint-Élie
because BRWC can produce distilled water and Saint-Élie does not. Saint-Élie co-packs for a few
customers of BRWC; Saint-Élie produces sparkling water and BRWC do not.
Why customers choose BRWC: Value-added products and services. We believe the following factors come
into play:
• Reputation: History of reliability, flexibility, and specialized packaging capability.
• Location: Close to natural spring water, good transportation corridors, good population centers.
• Flexibility and a variety of packaging and product options: Ability to fill unique bottle shapes and sizes
(while most high-speed lines use only a limited bottle selection). Ability to bottle value-added water, i.e.,
vapor distilled water with electrolytes and/or vitamins and minerals. Customers requiring unique
bottles/packaging tend to be higher margin because the product is sold at higher price points at both the
retail and wholesale levels than “generic,” commoditized bottled water.
With exclusive exploitation rights (40 year contract dated on Nov 1, 1995), Boreal has the right to draw
225,000,000 liters of spring water per year as per a permit from the Quebec Ministry of Environment.
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