Whos making waves in the bottled water wars

The losses due to the pandemic, the closed restaurants and the lockdown did not frighten old and new players in the bottled water industry and everything shows that a new cycle of reorganizations is being prepared. After all, according to market experts, “67-70 bottling companies that are active in the country today are more than enough”.

The auction and the role of Giorgos Nikas

The acquisition by the Achaean Lux beverage industry of 42.34% of the Dirfys bottling company with the price reaching 1.2 million euros, according to reliable information, came a few weeks after the announcement of the acquisition by N.U. Aqua of the water bottling plant of Pepsico Hellas in Loutraki, Corinth.

42.34% of Dirfys was acquired by the Lux of the Marlafeka family through an auction and the first offer price was set at 766,427.64 euros. Information states that the other claimant of the share package was Giorgos Nikas, but Lux prevailed.

The interesting thing is that the share package that went up for auction on October 20 belonged to Nikas Holdings since 2007. This company was founded in 2004 by the father of George Nikas, the pioneer butcher Panagiotis Nikas who passed away in 2017. Under “Umbrella” of Nika Holdings, which had nothing to do with the activity of sausages (P. G. Nikas SA) had entered the participations of Panagiotis Nikas in various companies, including Dirfis, Ekofarma Peloponnese, Dromon, Alley and the Laconic Food.

However, based on the latest published financial statements of the company for 2019, Nikas Holdings did not carry out any activity and had zero revenue.

The next day of Dirfys

It should be noted that 51% of Dirfys is maintained by its head, Nikolaos Serras, while the remaining 6.6% are held by small shareholders in the Municipality of Dirfion-Messapia of Evia, the company’s headquarters.

The turnover of Dirfi in 2020 amounted to 6.6 million euros and the profitability around 207 thousand euros, with the information stating that in the eight months of this year the revenue growth rate moved to + 6%.

As Mr. Giannis Marlafekas stated to OT.gr, the business plan for the next day of the company will be co-decided with the 51% shareholder when the formal procedures for the transfer of the shares are completed.

From Stymfalia to Polygyros and Simonopetra

The moves of Lux and N.U. Aqua was not the only one in 2021, as a few months ago, in mid-May, the Gianni family of Hitos (water Zagori), one of the protagonists of the industry, had acquired the company Ziria, located in Kyllini, Stymfalia, Corinth, acquiring a source and a water bottling plant in the area.

Besides, last March another strong player entered the category, the Greek Dairies (Olympus, Tyra) of the brothers Takis and Michalis Sarantis, acquiring the natural mineral water company Doumbia, a subsidiary of the Malamatina winery, while a month ago they had acquisition of the historic Trikala soft drink company Theodoros Kliafas Refrigerators SA

In addition, it should be noted that N.U. Aqua, which appears as a member of a German group, has also been deployed in Northern Greece through a company based in Cyprus, which is active in the production and bottling of water on Mount Athos.

The water, under the name “Avaton”, will be bottled in a 3,000 sq.m. factory in an area that belongs to the Holy Monastery of Simon Petra. The initial investment amounts to 30-35 million euros and in full growth will reach 40 million euros, as Maria Tokctor, a shareholder of N.U., told the Financial Post. Aqua.

The inspiration for the creation of the water “Avaton”, which is a sponsor of Aris basketball team, belongs to Dimitris Babakos, president of N.U. Aqua.

Important prospects after the lockdown
Although the bottled water market has come under significant pressure since the closure of the restaurant, which accounts for the largest share of sales, some heatwaves, some quarantine that turned consumers into healthier lifestyles, losses have been offset and the industry is recovering.

Greek stamp

A leading share of the domestic market is held by the Greek brands Zagori (Hitos SA) and Vikos (Epirotiki Bottling Industry), which have managed to leave behind the waters of the multinationals: Avra of Coca Cola 3E, Korpi of Nestle and Ioli of Athenian Brewery.

However both werehit by the pandemic.

Specifically, the sales of the company Hitos SA last year were reduced to 51.22 million euros from 55.14 million euros in 2019, ie a decrease of 7.1%. Its net profit amounted to 4.336 million euros compared to 4.643 million euros in 2019.

The company of the Hitos family is running the investment plan of 25 million euros that will be completed within the next three years and includes the operation of new production lines in existing and new facilities, as well as the creation of new logistics nationwide.

As far as the Epirotiki Bottling Industry is concerned, its revenues fell by 6.87%, to 73.68 million euros from 79.11 million euros in 2019. At the same time, however, it managed to increase its pre-tax profits to 14.9 million from 13.8 million euros and after taxes to about 14 million euros, from 12.8 million Performance that seems to be exceeded this year, since the company’s management estimates that 2021 will end with an increase in revenue by 15%.

It is noted that a few years ago and specifically in 2017, Vikos had also proceeded with the acquisition of a water bottling unit in the Peloponnese and this one in the area of ​​Stymfalia. This is Natura Bottling, which sells the natural mineral water Yas and the table water Iris.

At the same time smaller companies such as Zaros, Nera Kritis, Samaria, Theoni, etc. seem to be strengthening having started to expand their presence mainly in small retail but also in HoReCa.

It should be noted that bottled water, whose value is estimated at 300-350 million euros in the domestic market, is one of the few categories of fast-moving consumer goods that Greek companies have managed to displace the top multinational companies.