The Greek-born Swiss businessman who found success in business in Romania says he positioned Aqua Carpatica as a premium brand in the US, so it competes with the likes of Evian and San Pellegrino in terms of prices. Whereas a 1.5-liter bottle of Evian costs $2.7 in stores, Aqua Carpatica costs $2.99, he says.
“We are already on the shelves of some US retailers. I am handling the US business myself (…). The price I set is a clear marketing, positioning decision. We want to be a Rolls Royce of mineral waters,” Valvis said.
Aqua Carpatica is also available in China, Japan, Germany, UK, Spain and the Arab countries.
Following the success of his Dorna mineral water business, which he sold to Coca-Cola, and of the LaDorna dairy company (sold to Lactalis), Valvis says Aqua Carpatica is the biggest business he will build, but it will not be for sale.
“I promised my children this will stay a family business. If I am successful in the US, maybe I’ll sell a minority stake on the New York stock market.”
When he sold Dorna Apemin to Coca-Cola in 2002, in a deal estimated at $40 million, Jean Valvis would not have thought he would start in the same business again eight years later. He might not have, had Coca-Cola put him in charge of Dorna’s exports, and especially of marketing, which is Valvis’ strong suit.
He stayed as chairman of the board to ensure smooth transition for three months after the sale and then left. The non-compete clause prevented him from reentering this market for three years, so he continued with the dairy business.
As soon as the non-compete clause expired, he returned to the mineral water business with the same team of Romanians he had while at Dorna. This time the idea was to find new springs with lower nitrate content, and use that as a marketing and sales tool.
After two or three years of exploration, tests and certifications and a EUR12 million initial investment, Valvis returned with the Aqua Carpatica brand, taken from the Haja, Paltinis spring, 18 kilometers away from Vatra Dornei (northern Romania).
He put 15 million liters of natural mineral water on the market in 2011, followed by another about 50 million in 2012, about 82 million in 2013 and 110 million in 2014. In 2015, he hopes to sell 155 million liters in Romania and abroad. He also hopes to see sales of mineral water abroad account for 50% of the total sales in three years.
The total natural mineral water market in Romania stands at more than 1 billion liters a year and is worth some EUR350 million.
Valvis says the spring in Paltinis has an annual capacity of 1.3 billion liters (the spring Evian uses has an annual capacity of 1.5 billion liters).
(English version by Loredana Fratila-Cristescu)