- The founder of drinks maker PIPER says an IPO would help bank roll the firm’s international expansion strategy.
- Piper
Dubai-based PIPER is considering an initial public offering of shares to help fuel the “feel good” drink maker’s global growth plans.
“We are looking at ways to raise new capital to expand the brand globally,” said PIPER Founder Jeremy Miocevic. A share sale would help fund the production increases needed to meet rising demand while also bolstering PIPER’s marketing presence in core territories like the U.A.E., Spain and France as well as a number of new international markets.
“We’ve been encouraged by the recent rebound in IPO activity in Dubai and the commitment shown by authorities to assist small-to-medium sized firms in pursuing a listing,” said Mr. Miocevic. He added that the IPO plans are still at a very early stage and that any decision to go public will depend on market conditions at the time.
A non-alcoholic, mood enhancing drink that contains 100% natural ingredients including lemon balm, passion flower and blackcurrants, PIPER is proving popular with consumers looking for something to take the edge off their day without the effects of alcohol or other stimulants.
The logic behind PIPER’s expansion strategy is simple: the global market for relaxation beverages is booming. According to research firm IBISWorld, the relaxation drink industry is currently worth $152.9 million with more than 450 types of drinks available, a number that could double in the next 10 years.
While PIPER can be seen to sit generally within the broadly defined “relaxation drinks” sector, Mr. Miocevic said its unique selling point is that it works to de-stress the drinker and promotes a “positive mood” rather than just lowering energy levels like other competitors.
In recent times, Mr. Miocevic said PIPER has signed a master supply deal to stock the drink in all the hotels of an unnamed “major” hotel group that owns four well-known brands across Europe, the Middle East and Africa.
“We are expecting to see strong growth as we penetrate the Saudi Arabian market, and especially in the U.K. and Scandinavian markets which are key taste making and market leading regions for Europe,” he added.
Mr. Miocevic said the company is looking to build on what was a successful summer season in Ibiza, a market where PIPER has established a strong presence thanks to high profile tie-ups with some of the island’s most famous clubs like Pacha and Blue Marlin.
“We saw sales in our key accounts this summer hit new levels, including sales volumes between 15% to 25% of the sales volumes achieved by much more established and well known function drink classes such as energy drinks. This is starting to show the potential size of the market for feel good drinks which is being unearthed,” said Mr. Miocevic.
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(via WSJ Blogs)
