Strengthening local businesses through Government incentives, EU funds

With the help of a blossoming economy, Government incentives and EU funds, a Maltese family-owned business operating in the production and supply of drinking water has grown at a rate of 33% since 2017.

Nibe Beverages Ltd, which has been operating in this manner since 2003, has regularly invested in new machinery and equipment in order to strengthen its market position.

This enterprise primarily focused its activities in the production and distribution of 2-litre and 19-litre bottled mineral drinking water where it holds a substantial share of the local market, before successfully implementing a project under the Business Enhance ERDF Grant Schemes co-financed through the European Regional Development Fund – ‘Fostering a competitive and sustainable economy to meet our challenges’ and received over €222,000 in support out of a total investment of around €644,000.  

The company utilised this funding to invest in new machinery and equipment specifically to support a new product line and equipment and furniture for the Export Administration area.  

As a result of this project, this enterprise introduced a new product line focusing on the production of 5-litre and 10-litre bottles.

This same product line also includes an innovative packaging system for water extraction in the form of a tap to pour out the water and this facility makes away with the need for an external dispenser.

The production of 5-litre water bottles locally and the self-pouring tap application are innovative concepts for this segment of bottled drinking water which are intended to further strengthen Nibe Beverages Ltd market position.

The company is now, through accessible Malta Enterprise schemes for growing businesses, and a working relationship with Malta Industrial Parks, also investing a sum of nearly a million (€860,000) in new machinery and infrastructural improvements. Their expansion will serve to strengthen and diversify the capacity of the Maltese manufacturing market.

Nibe Beverages Ltd CEO Pierre Farrugia

During a visit to the company, Economy Minister Chris Cardona said that Nibe Beverages is another example of the potential of the Maltese company, with an economy stimulating Government that considers their added-value.

“The sustainable operations model of the company of awareness of its activities and products and their impact on the environment, is one that businesses should consider, as both business and country can benefit,” he said, while lauding the company’s respectful working conditions and provided ongoing training for its employees in a competitive market.

EU funds parliamentary secretary Aaron Farrugia, described how the company made use of the Business Enhance scheme, designed to help companies absorb funds from EU grants for them to further develop and grow.

“This is the economic model our country has adapted: create work, create wealth, and ensure that wealth to participate in all layers of society. This wealth has been created with the capital that the government invests, with European funds, and by local and foreign business investment,” he said.

Farrugia said that the Business Enhance scheme availed by this company is not only limited to ‘SME growth’, but also applicable to start-ups, companies wanting to diversify and those wanting to engage in e-commerce. This particular company also benefited from a labour training program financed by European funds.

He went on to explain that the company has made good use of funding opportunities by submitting a sound project proposal under the scheme with the aim to specifically target the export market in North Africa.

Following the implementation of the project the enterprise is forecasting that it will be able to increase its sales substantially through export activities.  

This SME is also focusing on decreasing its waste derivatives and combating the environmental issues relating to the disposal of plastic materials.  

In this regard, through this project Nibe Beverages Ltd has invested in a crusher which is specifically targeted to crush the 5- and 10-litre waste water bottles from which crushed plastic is then collected for recycling.  

Another successful result of this project focused on employment with Nibe Beverages Ltd increasing its workforce.  Following the implementation of the project, the company increased its full time equivalent employees by more than nine full-time employees (an increase of 58% of its workforce) and this growth in employment augurs well for the future prospects of this enterprise.

Its managing director, Pierre Farrugia, said that the company is a clear example of the way local businesses should be assisted.