Yaqua: Social Business for Clean Water
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ScribdTranslationsYaqua: Social Business for Clean Water
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ScribdTranslationsYAQUA, THE SUCCESSFUL SOCIAL BUSINESS OF TWO YOUNG PERUVIANS
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The entrepreneurial story of Daniel Franco and Fernando Tamayo, founders of Yaqua, is admirable.
These young people decided to start a social business that, through the sale of bottled water,
seeks to help people in the most vulnerable areas who do not have access to water.
Yaqua is the company that decided to allocate 100% of its net profits to the financing of projects.
of clean water in the most vulnerable areas of Peru. Thanks to its business model, the company that
It has only been three years since it was founded, and it has won various awards for its social commitment.
The beginnings of the business
Fernando Tamayo, general director and co-founder ofYaqua, he reported that the business idea was born in 2011.
But it was only in 2013 that they decided to start their operations with the help of 24 young volunteers, and
with the financing of companies–strategic partners–that were key to starting the sale of water
bottled.
As is the case in any newly started venture, things sometimes don't go as one expects. So
What happened with Yaqua: in the first year of operations, they lost 90 thousand soles.
Helping should be as easy as drinking water
In Peru, there are eight million Peruvians who do not have access to clean water. Upon seeing this
In this situation, young entrepreneurs set out to finance projects. But they couldn't do anything.
if they don't sell the necessary amount of water to make the money.
And despite the short time that the brand has been in the market, Yaquah has achieved sales that
They exceeded 200,000 bottles in 2015, when in mid-2013 they only managed to place 5,000.
units. The increase was 40 times more in two years.
Thanks to this, they have developed two projects so far. One in Iquitos and the other in Huancavelica.
The social impact of their venture has reached over 500 people and for this year they aim to
financial goals for projects in Cajamarca.
A perfect example of how to create companies to generate a positive impact on society. And you, do you
Would you dare to start a business like Yaqua?
YAQUA ARRIVES, THE FIRST SOCIAL COMPANY THAT WILL BRING WATER TO PROVINCES,
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One of the great ironies of living in Peru is that we are large consumers of resources that
They are scarce around us. Among them is water, an element that is simply vital for any
human being. To seek the balance between the millions of Peruvians who do not have access to clean water
and relating it to the other millions who consume a lot of bottled water, the brand Yaqua appears,
a company with a self-sustainable model that seeks to provide drinking water to thousands of people through
of projects funded with 100% of their profits.
With a price of S/. 1.50 per 625ml bottle, the brand offers 8 days of drinking water for one person.
in extreme poverty. The first community to benefit from the social project will be the
town of La Libertad in Churcampa, Huancavelica.
For the product launch, a series of spots were created (including one featuring actor Marco)
Zunino) which was quickly viralized. Regarding the promotion and the future of the brand, CÓDIGO spoke with
Fernando Tamayo, general director of the company.
Why does Yaqua sell water?
First of all, Yaqua is not a classic company. It is a mix between a company and an NGO. It is something new.
Here, when you want to help, what you do is go to an NGO or donate something. What we want to do is a
implement a new sustainable aid model through projects that provide drinking water to the
people.
How then does this model come to life?
I studied in Australia, at the University of Melbourne. I am an economist. When I was doing a
I discovered some guys who are dedicated to making 'Thankyou Water', which is like Yaqua but in this
country. We realized that this was replicated in several countries, for example in the United Kingdom there is 'One
Water,” then in a Skype conversation with Daniel Franco who is the co-founder of the company,
We talked and I said to him: 'I have heard this idea and it is excellent, why in Peru, with 10 consecutive years.
Despite a significant growth, there are still 8 million Peruvians who do not have access to water or
sanitation. If we look at the numbers, there are 3,600 children who die each year from diseases caused by drinking
contaminated water.
Furthermore, the most expensive water in the world is surely in Peru.
Yes, people who live in the peri-urban areas of Lima pay 10 times more for water. We consume
more water per person than in cities like Paris or Frankfurt. Besides, a quarter of our population
there is no clean water. So we are looking to get involved in a solution for how people can day
to contribute to solving one of the most difficult challenges in this country. So, the model we thought of,
It was that we can do something that should be sustainable and a product that people consume every
days.
Was access to have water always the basis of the whole project?
That's right, the bottled water consumer market has grown by 20% annually. It's almost ironic, the fact
that this business moves millions of liters a year and at the same time 8 million Peruvians do not have access to
clean water. The Yaqua model is to sell bottled water, but dedicate 100% of the profits
nets to projects so that people can access this valuable and basic resource.
To carry out these projects, you must initially seek a convergence between several companies and
sponsors. How did they achieve consensus?
Initially, we had a group of advisors who told us that we needed half a million soles.
to start the project. Obviously, we do not have that capital. And we began to forge alliances with
different companies. The strategy was: we brought together three partners which are Industrias San Miguel, which is the
bottler of the Añaños family; Scotiabank with the launch financing (the promotion and
advertising) and the Unacem association for the loan with the first production, that is, the capital of
work for the day-to-day operations. In addition, with a series of campaigns with donations it is a
not much funding that we required.
Usually, the first problem when brands come to help you is that they also want
appear in the products you are going to promote. How did they manage to negotiate so that it was not seen a
sponsorship hoarding?
In fact, it was they themselves who suggested that our brand appear uniquely,
Because being a youth project, what they sought was to support making this dream a reality. Yes
Well, in the launch campaign the logos of the companies appear, Yaqua is still the
protagonist. Being an independent association of any brand, we can be supported by
different companies, for example 2021 gave us support like Ernst & Young in the auditing part,
so that it is controlled that everything we say is true.
Regarding the advertising campaign, how did they initially plan to promote the product.
The first thing was to establish that by drinking water, by purchasing it, you are offering 8 days of clean water to
a person in conditions of poverty. That is the value we give to the consumer. We didn't have much
budget, compared to the competition is almost null. The first thing we think about is doing something viral,
that it should be for the youth of our age. We met with the agency La Contra and they proposed
to carry out the entire campaign on an ad honorem basis. The idea was not to do something that social aid that
we offer something negative, such as showing children drinking water from a river, because that appeals
to another type of feeling. We aim for it to be something joyful, that people are happy to help. We started
bouncing around several ideas and in the end it resulted in the viral message 'The more thirst you have, the more you help.'
That series of videos was low budget.
Yes, super low-cost. Furthermore, we did it with the support of the filmmaker Chita Films. Overall, everything has...
Everything turned out very professional. The commitment has been huge on the part of the companies that supported us.
How long did the campaign take from the idea to the day of the presentation?
It started in February, the campaign took 5 months. And the company Yaqua, as a project, has been around for two years and
We filmed the campaign on my birthday, July 5th, and the launch was on August 15th.
What is the next step after the product launch?
There are two parts to the strategy: aside from the viral campaign, we held a launch event so that
they get to know us, and now what is coming is to work on the campaign 'The more thirst you have, the more help you get' within the
universities, that is, we are going to do BTL activations with actions similar to the spot. There will be a chef,
There will be prizes, they will eat wasabi or six soda crackers in 1 minute, etc. That, on one hand, because
All that funny vibe is to engage the young audience. Besides, we will continue promoting
Yaqua through media outlets, more related to economic issues. So that it is known the
social enterprise model. This is a very new model in the country, there are very few social enterprises and
We are the first to allocate our profits to water projects.
Can one then live off a partner company?
Yes, of course. The profits are allocated to water projects, my model is like this: I sell the product, I bill,
I pay taxes, then I deduct my distribution, administration, payroll, etc. costs. all expenses from
a normal company and the remaining is what we give to the project, the dividends, what normally goes to
partners as profit.
Where are they distributed?
At the main universities in the capital: UPC, Usil, PUCP, UP, Lima, and ESAN. And at all Pecsa gas stations.
at the level of Lima. We are in 100 stores in Miraflores, San Isidro, Pueblo Libre.
Would the second stage be to enter retail?
Yes, it is part of the objective. The idea is to enter with the product in a staggered manner in order to build.
mark from the bottom, to capture market niches and then expand a little.
If we momentarily separate from the social objective, it is still a business model that must be
adapt to the market.
That’s right, but we call it solidarity mass consumption.
In any case, will it always be communicated that it has a social purpose above an economic objective?
Yes, since water is a commodity, that is, in the end, water is the same, there are even people who do not
distinguish one brand from another. The important thing is to convey the social message.
What will be the next level of communication?
The promise is that your bottle is equivalent to 8 days of water for a person who does not have it. From here to three
months when we can finance the first project that will be in Huancavelica, the message is: you are going to
to see the project that you have done, in your day-to-day life, without changing your lifestyle. This is an infrastructure.
in a community where now 88% of families do not have access to clean water.
When do you plan to arrive in the provinces with the product?
We will only sell in Lima until at least the second year, and then we plan to expand to other places.
regions.
How many bottles were launched in the first distribution?
In the first production batch, there were about 80 thousand bottles of 625 ml and 12 thousand of the bottles of
2.5 liters. The girls generate the movement and the other is the one who makes the project, let's say.
Have you thought at the company level about entering other sectors with this model?
In fact, we believe that Yaqua can be the great beginning of a product trend.
solidarity mass consumption. For example, in three months, we could make soaps with the same
model and that the money goes to hygiene. Usually, people only think that to help they can only
donate and nothing more. Here is a product that you consume every day, the goal is that everything that
let's make the project self-sustainable.