Mondias buying maple water beverage products company
Quebec-based Mondias Natural Products Inc., which specializes in evidence-based natural products for the healthcare and bio-agriculture markets, has signed a letter of intent to acquire a startup beverage company.
This will represent the first functional beverage acquisition for the company’s wholly-owned SetPoint Beverages Business Unit.
Once completed, Mondias will acquire all the assets of Érablier Inc., a Québec-based enterprise.
Érablier has developed a premium product made from the organic and pure processed water obtained from sugar maple tree sap. The beverage will go through extensive market testing in the coming months.
Data shows that the demand for maple water exceeded 16 million litres in 2018. It is suggested that maple water drinks may follow the same demand curve as that seen for coconut water.
According to an industry report, the global coconut water market was valued at $2.5 billion (U.S.) in 2017 and is expected to reach $9 billion (U.S.) by the end of 2024.
“This strategic acquisition represents an excellent opportunity to enter the vibrant health and wellness beverage space using a natural and organic product obtained from Québec,” Mondias CEO Dr. Patrick Frankham stated in a press release.
“Maple water is a unique natural product that is harvested by sophisticated and large-scale methods from which we obtain our starting material to create natural products for consumers.”
The transaction is subject to due diligence by Mondias, as well as board and regulatory approval.
The purchase price consists of a $75,000 cash payment ($50,000 on closing and a further $25,000 payment upon the completion of the technology transfer) and a four-per-cent royalty of the annual net sales subject to a maximum $1-million aggregate royalty payment.
Mondias specializes in the commercialization and development of evidence-based botanical products for the healthcare, bio-agriculture and organic markets.