Investment Opprotunities in Serbia

Executive summary

People are drinking alcoholic beverages all over the world in quite large quantities, from beers and different beverages with low alcohol percentage to absinthe with over 80% of alcohol. Alcoholic beverages are not healthy if over consumed, but still people all over the planet has been consuming them for centuries.

Production of alcoholic beverages is a profitable business and that's why even government restrictions can't stop this production. In Vojvodina, Serbia, for centuries people has been consuming rakia, spirit produced from fruits (with 40% of alcohol). Foreigners who tried this drink say it has a unique taste and exceptional quality, so they're gladly drinking it whenever they come to Serbia because they can't buy it anywhere else.

That's why our goal is to start the production of high quality branded rakia and at the later time also other alcoholic beverages from fruit. We'll use traditional production technology which makes rakia so distinct.

Rakia as a spirit offers enjoyment, satisfaction, apparent escape from reality, increases passion, relaxes, relieves from stress, symbolizes high reputation and maturity of a person, and overall offers a unique organoleptic pleasure. As a luxury product, rakia can also represent an element of glamor.

This business plan involves production of completely new distillery whose aim will be rakia production for foreign markets only. Although this means opening a start-up company, the production process itself is very simple and well-known in Serbia, so the risk of producing rakia is negligible. Competition on Serbian market it too high, so in this case the principle of selling on domestic market first and then going out to foreign markets can't be applied. Only sales of rakia on foreign markets (for at least 50 EUR per liter) can bring appropriate profit. For this reason we're looking for an investor who will be also our business partner at the same time. His responsibility will be placement of our rakia on the international market.

Highlights of this projects:

• foundation of a new company,
• whose organization will be focused on working with foreign clients,
• production of a proven product which foreigners like,
• use of domestic raw materials,
• hiring domestic labor,
• achieving increasing profit.

Success factors

The reasons we believe why it's good to invest in this project and us:

1. Quality and fruit flavor from our country is unique. Other countries don't have this because of different geographic position.

2. There's a source of quality fruit near our city, as well as the possibility of repurchasing large quantities of fruits (hundreds of tons) in the season from all over Vojvodina province.

3. Tradition of rakia production started several centuries ago in our region, so naturally our technologists are experts in this production process.

4. Production of alcoholic beverages includes going into fields of entertainment and pleasure, where people always gladly spend their money.

5. Rakia has unlimited lifetime and it's selling price doesn't deppend on season. The price has only slight elasticity and depends on the power of the brand and sales skills.

6. Rakia production has high profit rate, so the return on investment time is rather short.

7. Rakia as a quality drink with unique taste can become a strong brand.

8. Our management team consists of experts with rich experience and knowledge in the field of alcoholic beverages production, including rakia.

9. Trends show steady increase of alcoholic drinks consumption primarily in Europe, but also in the whole world, which is great opportunity for a new distillery.

10. Serbia has export preferential and minimal or no customs duties for products when exporting to Russia.

Financial overview

Investment in rakia production described in this business plan represents relatively safe business with quick return on investment (ROI):

• for investment in facility and distillery equipment: 2 – 3 years,
• for investment in working capital and distribution and marketing expenses: 1 – 2 years.

Through partnership, domestic partner gets:

• possibility to engage part of unused domestic resources (raw materials and labor) through
• production and sales of quality domestic product on foreign markets,
• ability to help development of local surrounding, and
• corresponding profit.

Foreign partner gets:

• quality product which can easily find its consumers in the world,
• possibility to increase invested capital in resonable time.

Necessary investment for the realization of this business plan:

Option 1.

Total investment: €650.000

Development costs: app. €60.000

Option 2.

Total investment: €750.000

Development costs: app. €60.000

This business plan includes the construction of a distillery with maximum production capacity of 100,000 liters per year. It can be extended if necessary, but it can be the subject of further discussions with potential investor/business partner.

We are ready to discuss the business plan details with serious investor. Our goal is to find solutions that will meet the interests of both parties in the long run.

For more Information please send your request to :This email address is being protected from spambots. You need JavaScript enabled to view it.

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