Hot-Can NZ Ltd managing director Craig Darling said he chose Dunedin as the distribution base for the self-heating beverages Hot-Can because it made economic sense.
''Everything is cheaper in Dunedin.''
Dunedin was near the target market, which included farmers and outdoors people, such as hunters and fishermen.
''The bigger market will be in the South Island, because the weather is a little cooler.''
The former King's High School pupil said he decided to return to Dunedin after living overseas for 11 years.
Mr Darling bought the Australasian licence to import and sell the beverage about a year ago.
About three million cans were sold in Australia in 2013.
''It's booming and that's a hot climate and obviously bringing it to New Zealand, a cold climate, makes a lot of sense.''
The beverages had been on sale for five years in Australia before the three million sale milestone was reached.
He predicted it would take two or three years to reach the same level in New Zealand.
The ''sky is the limit'' for New Zealand sales targets, he said.
In New Zealand, the beverages would be for sale in several South Island supermarkets by March and would include coffee, hot chocolate, tomato soup and chicken soup.
The soups sold better than the coffee, because people had personal taste preferences for coffee, such as with sugar or skim milk.
The desired taste expectation for soup was more uniform, he said.
''Chicken soup tastes like chicken soup and tomato soup tastes like tomato soup.''
The Dunedin-based business would not be employing any staff in the short term, but more staff were in the long-term business plan.
The beverages would be distributed from Dunedin by Toll New Zealand and would be sold at Foodstuffs supermarkets in the South Island, such as New World.
