GEORGE TOWN: A healthy economic growth, sweltering weather and robust tourist arrivals will drive Spritzer Bhd
’s sales in 2024, says chief executive officer and executive director Kenny Lim.
“The hot weather should boost our sales. The country’s projected moderate economic growth at 4% to 5% this year, coupled with robust tourism and improved market conditions will benefit us,” he said.
The RM30mil expansion exercise, completed in the first quarter of this year, added two new production lines – raising the group’s annual capacity to 1.2 billion litres from one billion litres in the fourth quarter of 2023.
“We are well positioned to support the rising demand for bottled water in the country. Since January, our sales have been growing steadily, enabling us to achieve our monthly targets,” Lim told StarBiz.
Spritzer targeted to strengthen and expand the distribution coverage to the hotel, restaurant, and cafe segment in Malaysia.
“Moving forward, Spritzer also targets to improve the penetration of the bottled water market in Singapore. Note that the current export sales contributed 7% to 8%, with Singapore being the main contributor, followed by Brunei and other countries.“This is partly due to Singapore and Brunei being adjacent to Malaysia, which will lower logistics and shipping costs allowing Spritzer products to remain competitive in the market,” Lim added.
The group, however, will adopt a cautious approach as there are still some economic uncertainties and risks amid the slow global economic growth, volatile domestic currency, and inflationary pressure.“We will continue to increase our product range to strengthen our leading position in the Malaysian bottled water industry, improve our processes across our value chain and simultaneously explore business opportunities and investment in the beverage industry,” Lim said.
He added that it is exploring and introducing sustainable packaging alternatives for its bottled water products.
“Spritzer is increasing its range of sparkling mineral water products to provide more choices for our customers. Our recently launched Spritzer Sparkling Lemon has received good response from our customers. The cost of materials has been manageable thus far.
“However, we are exposed to downside risks from volatile exchange rates and supply chain disruptions.
“We will progressively increase the content of recycled PET (polyethylene terephthalate) in manufacturing our Spritzer bottles and continue introducing sustainable packaging alternatives for our bottled water products.
“Spritzer Sparkling and carbonated mineral water products are experiencing healthy growth,” Lim said.
According to a China Research and Intelligence report, the Malaysian bottled water market will expand to US$522mil by 2032, registering a compound annual growth rate of 5.7% from 2023 to 2032.
It said Malaysia had the highest per capita consumption of bottled water among developing countries, with each Malaysian consuming just under 150 litres annually.
They prefer bottled water for its convenience and often use it as a healthier alternative to sugary drinks, it said.
