Haage Joogid OÜ and the Chinese company Hubei Salt Group entered into a long-term cooperation agreement on Tuesday for supplying the Chinese market with natural mineral water sourced in Estonia. The two companies will be targeting Horeca and online wholesale channels and plan to have transported up to 630 containers to the Chinese market by 2024.
Vello Oselin, a member of the management board of Haage Joogid OÜ, says that Enterprise Estonia was of assistance in Chinese market and that although the pandemic meant that all negotiations took place online, this proved no obstacle to reaching an agreement. “It’s hugely exciting to be entering the biggest and most rapidly developing market in the world,” he said. “We’re used to being flexible when it comes to clients, and so far, because we’re such a compact company, we’ve been able to be. At first, we’ll be supplying the Chinese market with products in packaging that’s been made for the Estonian market, but we’ll be approaching wholesale packaging with the needs, wishes and traditions of the local market in mind. For example, they expect packaging to be as practically manufactured as possible for delivery services, which account for a big slice of their market.”
Haage will be supplying the Chinese market with both still and sparkling mineral water in 0.5-litre and 1-litre PET bottles, as well as 0.33-litre glass bottles. The parties have chosen not to reveal the value of their cooperation agreement.
However, Oselin remarked that the agreement does not represent a goose that lays golden eggs. “We’re talking about a market that posts 20 billion euros in retail sales every year – the biggest market for bottled water anywhere in the world,” he said. “It’s a market that gets through 50 million tonnes of bottled water annually, and a growing market at that, with lots of competition. That said, we’re convinced that the quality of our water and the stylish packaging it comes in will carve out a certain market share for the brand in China. We have big ambitions where it’s concerned – and if you’re not ambitious, there’s no point even considering getting into exports these days.”
Haage natural mineral water is sourced from a bore well in the small village of the same name in Tartu County. Haage Joogid OÜ is an Estonian-owned company which was founded in 2012 and forms part of the Silikaat Group.
For further information please contact:
Haage Joogid OÜ
Mobile: +372 53002809
Member of the Management Board
Haage Joogid OÜ
Mobile: +372 5551 0263