Fresh Crystal Water Case Study - Finance Assignment Help

Assignment Task:

Company Description 

Fresh Crystal Water, a new start-up non-alcoholic beverage (NAB) company, aims to produce bottled mineral water for the consumer of every group. The company located in the Washington DC, Maryland, and Virginia areas. US consumers shifting their preference from soft drinks to plain water and juice and caffeine-free, alcohol-free drinks. One of the major reasons for the change in the health of the U.S. population and its obesity rate. Over the last three decades, obesity increased two times for the youths of 9 to 14 years, and the obesity for the mature person has increased exorbitantly high (Statista, 2020). 

Thus, the government, along with health agencies, are trying to influence the people of the state to consume mineral water and healthy drinks rather than alcohol or caffeine added drinks (Statista, 2020). The water business can be a beneficial option as it is expected that demand will be doubled by the next decade. According to Statista, (2020), The per capita consumption of mineral water has been rising that makes the business profitable and beneficial in this market. Meanwhile owing to the lack of the experience of the employees hampers the internal factors of the company that will reduce the production capability of the Fresh Crystal Water (Gürel & Tat, 2017).

The U.S. packed water market has been increasing at a rapid speed, and one of the main reasons for the same is the rise in per capita consumption of the NAB. Among all NAB groups, soft drinks hold the highest share, and the second-highest share is bottled water (Pllana & Qosa, 2019). The bottled water market has increased sharply over the year in the U.S. as the revenue of the industry increased $17.1 billion in 2019 (Statista, 2020).

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