Soft Drinks Manufacturer’s European Market Entry

Client Overview: A well-established soft drinks manufacturer sought to enter the European market by introducing a range of soft and fruit-based drinks, utilizing still and naturally sparkling mineral waters.

Objective: The client engaged Redeure to secure suitable partners, distribution networks, and physical premises, including the purchase of an existing bottling plant with unique mineral water wells.

Challenges:

1. Identification of a suitable bottling plant with quality mineral water.
2. Negotiating government licenses for operating wells, plant, and distribution.
3. Securing guarantees for the plant purchase while funding application processed.

Redeure’s Solution:

1. Premises Acquisition: Through professional appraisal teams, Redeure identified premises with land containing mineral water wells with naturally sparkling water.
2. Government Licenses: Negotiated necessary government licenses to operate wells, plant, and distribution.
3. Collateral Transfer Facility: Secured a Collateral Transfer Facility for €21 million to guarantee the purchase of the plant and its development.
4. Credit Line: Arranged a private lending group to provide a credit line of €18.5 million for a renewable term of up to 6 years.

Results:

1. Successful Market Entry: The client successfully entered the European market with a new range of soft drinks.
2. Operational Expansion: The obtained funds facilitated the development and expansion of the bottling plant.
3. Ongoing Support: Redeure continues to support the client by introducing them to potential customers, including hotel groups and retailers.

Conclusion: Through a comprehensive approach involving collateral transfer, credit line facilitation, and ongoing support, Redeure successfully assisted the soft drinks manufacturer in realizing its European market expansion goals. This case exemplifies Redeure’s ability to navigate complex financial landscapes to achieve the client’s objectives effectively.