Hawaiian Natural Water
loss deepens

By Russ Lynch
Star-Bulletin

Hawaiian Natural Water Co., a Honolulu company that bottles and retails water from Mauna Loa out of a deep well near Hilo, today reported a loss of $2.6 million for 1997, compared with a loss of $1.2 million in 1996.

But sales were up 21 percent at $1.05 million, from $866,000 in 1996.

The company said the increase in the loss was mainly due to the expenses of going public, which it did with a $9 million share offering in May, and major expenses in marketing and development as it gets set to grow.

The new capital allowed the company to begin full-scale production by paying down debt, investing in plant and equipment, and setting aside capital for expansion, said Marcus Bender, president and chief executive officer.

In December, the company completed the first step in an aggressive marketing campaign that involves teaming up with high profile companies, Bender said.

It set up an alliance with Spinning, a leading indoor cycling program, which made the company's Hawaiian Springs Natural Water the official water of the program.

"In doing so, the company joined other official Spinning sponsors such as Nike, Chiquita and Schwinn and gained a foothold in the sports market," Bender said.

In 1998, the company will develop more such alliances and push into markets it has identified in Hawaii, on the West Coast and around the Pacific Rim, he said.

It has already been selling its product in Japan.