Tibetan water supplier crystal clear on strategy

A Chinese company is taking on the foreign brands in the high-end bottled water market with its Tibetan spring water.

"With superior quality and the right management strategy, 5100 Tibetan Glacier will for sure become a major player in the high-end water market in the not-too-distant future," Fu Lin, president of Tibet Glacier Mineral Water Co, told China Daily.

5100 Tibetan Glacier, a reference to the water being fetched from a source 5,100 meters above sea level, has successfully squeezed into the big markets like Beijing, Shanghai, Guangzhou and Shenzhen. And although its sales volume is still slim, it's increasing rapidly.

Its 330ml bottle of water sells for 6.5 yuan - roughly five times the price of other local brands.

Fu said the 1,956-km Qinghai-Tibet railway, launched last July, has helped to reduce transport costs for his products. The rail transport cost for each bottle of water is estimated at 0.4 yuan, far less than the 1 yuan by road, according to Fu.

"Our bottled water will be sold not only on the domestic market, but we'll also export - especially to the United States, European countries, South Korea and Japan, where it's expected to cause a sensation," Fu said. "Our talks with potential partners in these countries are going smoothly."

The company's water is said to filter through prehistoric volcanic rocks deep below the earth for eight years before it resurfaces as a wellspring. The company says it contains minerals including lithium, strontium and metasilicic acid.

The bottling operation is located at 4,300 meters above sea level, near the Tibetan capital of Lhasa, said Fu.

"Our first priority is environmental protection," Fu said, adding that the operation emits almost zero pollution.

The company built a greenfield facility, housing a complete German Krones bottling line, which went into operation last July.

Fu said the benefit his company has brought locals is a bonus.

"We've employed altogether about 60 local Tibetans, and their living conditions have been dramatically improved," Fu says.

"We actually don't regard major players like Evian, a famous French natural spring water brand, as our competitors. We hope to cooperate to foster the market together with them," Fu said.

(China Daily 09/06/2007 page60)