Tuesday, June 21, 2011

Private Label Bottled Water: A Profitable Niche in a Fast-Growing Industry, Part 3

Private Label Bottled Water: A Profitable Niche in a Fast-Growing Industry

Great for small operators

“Private label bottled water is a great business for the small operator,” Vaughn says. “I can go to any number of local businesses and provide them with a service and a product that the large soft drink companies are usually not interested in.”

Vaughn and his family looked for ways to capitalize on a high-quality spring on the family’s property. They tried setting up a bulk water delivery business, but without major success. “We found that we were simply unable to compete with the other suppliers who were willing to cut their prices just to keep the water flowing,” Vaughn recalls.

At the time, Vaughn was finishing his work on a master’s degree in business management from the Keller Graduate School of Management. He was required to write a business plan as part of his degree requirements. He and three of his group partners chose to write their plan on the private label bottled water business.

Vaughn found that there was already market acceptance for the idea on the West Coast and in some small pockets of other U.S. regions. “The demand was there,” he says, “but very few bottlers had recognized the marketability of the product.”

The rest is history. Using his master’s thesis as a starting point, Vaughn launched Spring Water Promotions in 2000. His company focuses exclusively on private label bottling while providing water for a wide range of promotions and special events in the region.

To be continued....