New growth opportunity.

Leading supplier of instant drinking water appliances, Zip Industries has acquired B2B supplier of on-tap drinking water systems, Vestal.

Zip has a historically strong presence in the corporate market and is rapidly growing into the residential market with HydroTap. The acquisition of Vestal will give Zip a foothold in the hotels, restaurants and cafes market (HORECA), providing a new platform for expansion and growth.

Following the acquisition, Vestal founder, Mark Sweet will head Zip’s newly established HORECA division and drive continued growth with the benefit of Zip’s national sales and service capability.  Zip has also signed an exclusive supply arrangement with Italian manufacturer Celli, Vestal’s technology partner and designer.

Zip CEO, John Doumani (pictured), said the acquisition of Vestal would provide a significant new growth opportunity for the business.

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“Vestal’s still and sparkling water offer is becoming increasingly popular with hotels, restaurants and cafes. But the category remains underdeveloped with only an estimated 4% of outlets using on tap drinking water systems,” he said.

“Our research shows that the future potential is significant given the HORECA market is experiencing particularly strong demand for dispensed drinking water appliances driven by a strong commercial rationale including storage and fridge space, reduced bottle disposal costs and margin expansion on sparkling water sales.

“This acquisition fills a gap in our portfolio and offers an exciting new growth opportunity. We are pleased to welcome Mark and his team and we look forward to growing the Vestal brand together,” Doumani added.

Vestal founder, Mark Sweet (pictured below) commented, “Vestal was established in Tasmania in 2008 with a vision for environmental, social and economic sustainability. Today, Vestal services hundreds of Australia’s most iconic hospitality venues and we estimate our systems currently eliminate the use of over 4 million single-use water bottles each year.

vestal-mark-sweet

“However, we can do a great deal more. Premium on-tap filtered sparkling water systems are still underused and underrepresented in the hospitality industry and with Vestal Hybrid technology we are extremely well placed to increase market accessibility to both water and other beverages on tap.

“We are proud to be partnering with Zip and I know there are many venues motivated to improve their environmental sustainability, reduce waste and boost their margins with our technology. I look forward to continuing to accelerate Vestal’s growth with Zip’s support.”

Following the acquisition of Vestal, Zip will have four go-to-market categories driving its future growth strategy: commercial; SME; residential; and HORECA.