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China Daily Website

Tibet 5100 to expand intnl sales

Updated: 2012-10-10 20:24
By Zhang Chunyan in London ( chinadaily.com.cn)

Tibet 5100, China's leading bottled water company, said it plans to expand its sales in the international market in coming years.

"We have a two-step overseas plan. Firstly, we will access markets near China like the Middle East, Southeast Asia and Singapore. Secondly, we will approach Europe and the US," said Fu Lin, the company's CEO.

Tibet 5100 got its name from its origins — the water is sourced from a glacier spring 5,100 meters above sea level on the Tibet Plateau.

"In 2007, when we first attended the International Food Exhibition in Cologne, Germany, overseas distributors were already expressing great interest in our water," Fu added.

Now the company wants to expand globally. Fu said that Tibet 5100 has plans to build a new glass-bottle production line later this year. Glass bottles are able to better maintain the water's qualities during transportation.

"We see this as a good chance for Tibet 5100 to expand its business globally and accelerate the company's development," said Fu.

This year, the company was invited to participate for the second time in the Global Bottled Water Congress, which was held from Monday to Wednesday in Barcelona, Spain. It was the only Chinese company there.

The annual congress attracted companies such as Coca Cola, Nestle Waters and the Danone Group.

Tibet 5100 is one of the few Chinese consumer brands that are able to compete with global players like Evian, which is owned by Danone, and with other premium water brands.

"Our water comes from a pure and rare glacier spring in Tibet, which is attractive for the global market," Fu said.

Established in Tibet in October 2005, the company has taken up 26.9 percent of the market share in China's premium bottled mineral water market, according to market research firm Euromonitor International, and is the leading brand in China.

From 2008 to 2011, the company's compound annual growth rate, or CAGR, in terms of income was 74 percent, while its net profit CAGR was 215 percent.

Tibet 5100 expanded its institutional client base by sponsoring government and business activities, such as the HSBC International Golf Championship, the China Tennis Open, The World Economic Forum and the World Expo.

Air China and China High-Speed Trains provide Tibet 5100 water to their passengers, which helps to promote the brand nationwide.

According to Euromonitor, the capacity of China's premium bottled mineral water market will keep growing between 2012 and 2016, with a CAGR of 14 percent.

 
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