Commodities market on water: Fiji takes the lead - 12/26/2040
It's a huge deal that has just been won by Fiji Waters! The mineral water company, already well established in the American bottled water market, has just positioned itself in the American financial markets following an unprecedented and confidential IPO.
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A major challenge for the company which, although of substantial size on the Pacific scale, remains a small player on the global scale. But the company was able to take the lead anyway. Monitoring the evolution of the water market for the past decade, Fiji Waters has managed to find the perfect time to get started.
It has now been nearly 20 years since water has become a traded commodity on financial markets. No more oil and gold, water is the new safe haven!
Faced with the increasingly important droughts in the American West and the need to irrigate increasingly large areas of plants to satisfy the global vegetarian market, many investors quickly realized that the price of water was going to soar: of course for agriculture but also for tourism, the textile industry and household consumption.
Sadly, America’s water, which initially saw a wave of buying on the “Futures Commodities” market on Wall Street, quickly collapsed. In addition to the explosion of the speculative bubble at the start of this new trend, it was above all the doubts about the quality and availability of American water that posed a problem: memories from Flint to water streams monopolized by companies in food industry, investors therefore began to look at other natural sources of profit.
And this is where Fiji Water found its opportunity. Building strong on its reputation and its presence in the US market, the company has not hesitated to seduce investors with an innovative system of transport container to supply Americans.
But the big question remains: is the availability of the resource real? And, beyond that, what about the needs of the local population?
The company thinks big, but many wonder if it is not thinking too big. For the moment, the Fijian government has not commented on the situation. But some believe it will soon demand the dismemberment of the company and the establishment of quotas to prevent the local population from being impacted.
While the Pacific still has pure natural water sources and relatively high stocks in these times of rising temperatures, many organizations are concerned about the economic pressure this may cause in the medium / long term.
Should the region take up the issue and define a common strategy? Or can we consider that this will only create a new market into which other states with large stocks (Argentina, Chile, etc.) will rush into? For the moment, lots of speculation and few answers. Suffice to say that worry flows freely!