UK Plain Bottled Water 2016 Report

Page 1

zenithinternational nithinternational

March 2016

UK Plain Bottled Water 2016 th

25 Annual Report



Zenith Report on UK Plain Bottled Water March 2016 25th Edition

Copyright All copyright in all Zenith reports is reserved. All text, tables, charts and other material contained within this report, which are the exclusive property of Zenith International Ltd, may not be copied, distributed, transferred or displayed without the express written consent of Zenith International Ltd. Liability Whilst every effort has been made to ensure that the information presented in this document is accurate and that the opinions expressed are sound, Zenith International Ltd cannot be made liable for any errors or omissions or for any losses or consequential losses resulting from decisions based on its contents. Zenith International Ltd 7 Kingsmead Square Bath BA1 2AB United Kingdom t +44 (0)1225 327900 f +44 (0)1225 327901 zenithinternational.com



UK plain bottled water report

2016

Introduction This is the twenty-fifth Zenith Report on the UK Bottled Water Market. As the UK bottled water market continues to grow and evolve so does our report. This year, we have produced three reports on the sector in order to provide a complete review of this dynamic market.   

The UK Plain Bottled Water Market Report The UK Water Plus Market Report The UK Bottled Water Drinks Market Report

As always, our aim is to make contact with every significant company active in the relevant sector and to produce as complete a picture as possible at a price accessible to any business with a serious commercial interest. We are particularly grateful for the help we receive from the bottled water companies we profile. The 2016 Report contains up to date profiles of the industry’s leading bottled water companies, while text, charts and tables analyse recent developments in the UK market. An historical perspective is provided in Appendix 2. The report represents exceptional coverage of the UK bottled water drinks market and we hope that you find it useful in your business planning. As our research is updated on a regular basis, we always welcome any comments or suggestions about possible improvements.

Simon Johnson Managing Consultant Zenith International

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UK plain bottled water report

2016

Contents Brief Summary -------------------------------------------------------------------------------------------------- 1 Research Overview --------------------------------------------------------------------------------------------- 1 2015 UK Plain Bottled Water Market -------------------------------------------------------------------- 3 1.

Market Overview------------------------------------------------------------------------------------------ 3

1.1

Economy ---------------------------------------------------------------------------------------------------------------------------- 3

1.2

Weather ----------------------------------------------------------------------------------------------------------------------------- 3

1.3

Media -------------------------------------------------------------------------------------------------------------------------------- 4

2.

Sector Performance-------------------------------------------------------------------------------------- 5 Table 1: UK plain bottled water market, 2009-2015 ---------------------------------------------------------------------------- 5 Table 2: Total UK plain bottled water types, 2009-2015 ---------------------------------------------------------------------- 6

3. 4.

UK plain packaged water ------------------------------------------------------------------------------- 7 UK plain bottled water packaging ------------------------------------------------------------------- 7 Table 3: UK plain bottled water packaging, 2013-2015 ------------------------------------------------------------------------ 8 Table 4: UK plain bottled water packaging, 2015 -------------------------------------------------------------------------------- 9

5.

UK plain bottled water distribution --------------------------------------------------------------- 10 Table 5: UK plain bottled water distribution, 2013-2015 --------------------------------------------------------------------- 11

6.

UK plain bottled water companies and brands ------------------------------------------------ 12 Table 6: Top 25 companies in UK bottled water market, 2014-2015 ----------------------------------------------------- 13 Table 7: Next 25 companies in UK bottled water market, 2014-2015 ---------------------------------------------------- 14 Table 8: Top 25 brands in UK bottled water market, 2014-2015 ----------------------------------------------------------- 17 Table 9: Next 25 brands in the UK plain bottled water market ------------------------------------------------------------- 18

7.

UK plain bottled water producers ----------------------------------------------------------------- 19 Table 10: Top 10 UK domestic plain bottled water producers, 2014-2015 ---------------------------------------------- 19 Table 11: Top 10 UK plain produced brands, 2014-2015 --------------------------------------------------------------------- 20

8.

Plain bottled water exports -------------------------------------------------------------------------- 21 Table 12: UK plain bottled water exports by country, 2010-2015 --------------------------------------------------------- 22 Table 13: Top 10 plain water export brands, 2010-2015 --------------------------------------------------------------------- 23

9.

Plain bottled water imports ------------------------------------------------------------------------- 23 Table 13: UK plain bottled water imports by country, 2010-2015 --------------------------------------------------------- 24 Table 14: UK plain bottled water import sales by brand, 2010-2015 ----------------------------------------------------- 25

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UK plain bottled water report 10.

2016

Still plain water consumption -------------------------------------------------------------------- 26

Table 15: UK plain bottled water: small pack vs cooler, 2009-2015 ------------------------------------------------------- 27

11.

Packaged still water brands ----------------------------------------------------------------------- 28

Table 16: UK top 10 plain packaged still water brands, 2014-2015 ------------------------------------------------------- 29

12.

Packaged sparkling water brands --------------------------------------------------------------- 30

Table 17: UK top 10 plain sparkling water brands, 2014-2015-------------------------------------------------------------- 30

13.

Retailer own label ------------------------------------------------------------------------------------ 31

Table 18: UK top 5 own label plain water producers, 2014-2015 ---------------------------------------------------------- 31

14.

Mineral water consumption----------------------------------------------------------------------- 33

Table 19: UK top 20 plain mineral water brands-------------------------------------------------------------------------------- 34

15.

Spring water consumption ------------------------------------------------------------------------ 35

Table 20: UK top 20 plain spring water brands, 2014-2015 ----------------------------------------------------------------- 37

16.

Glass packaged plain bottled water ------------------------------------------------------------ 38

Table 21: UK top 10 plain companies in glass packaging, 2014-2015 ----------------------------------------------------- 39

17.

Plastic packaged plain bottled water ----------------------------------------------------------- 40

Table 22: UK top 10 companies in plastic packaging, 2014-2015 ---------------------------------------------------------- 41

18.

Plain vs water plus ----------------------------------------------------------------------------------- 42

19.

UK water coolers ------------------------------------------------------------------------------------ 43

Table 23: UK top 10 water cooler companies, 2010-2015 ------------------------------------------------------------------- 44

20.

Plain bottled water consumer-------------------------------------------------------------------- 45

Table 24: GB plain bottled water consumer, 2010-2015 --------------------------------------------------------------------- 46 Table 25: Total UK plain bottled water: per capita consumption, 2009-2015 ------------------------------------------ 49 Table 26: International plain bottled water comparison --------------------------------------------------------------------- 50

21.

Plain bottled water value -------------------------------------------------------------------------- 50

Table 27: UK plain bottled water value, 2013-2015 --------------------------------------------------------------------------- 51 Table 28: UK plain bottled water value per litre by pack size, 2014-2015 ----------------------------------------------- 53 Table 29: Plain premium vs private label value per litre, 2014-2015------------------------------------------------------ 53 Table 30: International premium vs private label value per litre comparison, 2015 ---------------------------------- 53

22.

Ethical waters / ethical initiatives --------------------------------------------------------------- 53

23.

Ongoing challenges ---------------------------------------------------------------------------------- 54

23.1

Environmental -------------------------------------------------------------------------------------------------------------------- 54

23.2

Carbon footprint ----------------------------------------------------------------------------------------------------------------- 54

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UK plain bottled water report

2016

23.3

Water footprint ------------------------------------------------------------------------------------------------------------------ 54

23.4

Lightweighting-------------------------------------------------------------------------------------------------------------------- 54

23.5

Recycling --------------------------------------------------------------------------------------------------------------------------- 54

23.6

Tap water -------------------------------------------------------------------------------------------------------------------------- 54

23.7

Industry consolidation --------------------------------------------------------------------------------------------------------- 55

23.8

Portfolio diversity --------------------------------------------------------------------------------------------------------------- 55

23.9

Consumer confidence and education ------------------------------------------------------------------------------------- 55

23.10

Retailer perception ---------------------------------------------------------------------------------------------------------- 55

23.11

Stock control and supply -------------------------------------------------------------------------------------------------- 55

23.12

Price pressures --------------------------------------------------------------------------------------------------------------- 55

24.

Water Stewardship ---------------------------------------------------------------------------------- 55

25.

Legislation ---------------------------------------------------------------------------------------------- 56

26.

Forecast to 2020-------------------------------------------------------------------------------------- 56

Table 31: UK plain bottled water consumption by segment, 2015-2020f ----------------------------------------------- 57

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UK plain bottled water report

2016

APPENDICES ----------------------------------------------------------------------------------------------------Appendix 1 - Leading company profiles ------------------------------------------------------------- AP 1 AG Barr Plc ------------------------------------------------------------------------------------------------------------------- AP 2 Angel Springs Holdings Ltd ------------------------------------------------------------------------------------------------ AP 4 Berrington Pure Spring Water Company -------------------------------------------------------------------------------- AP 6 Best Water Technology Ltd------------------------------------------------------------------------------------------------ AP 8 Black Mountain Mineral Water Company ----------------------------------------------------------------------------- AP 10 Brecon Mineral Water ---------------------------------------------------------------------------------------------------- AP 12 Britvic Plc -------------------------------------------------------------------------------------------------------------------- AP 14 Coca-Cola Enterprises ----------------------------------------------------------------------------------------------------- AP 16 Coca-Cola HBC Northern Ireland ------------------------------------------------------------------------------------- AP 18 Cooleraid -------------------------------------------------------------------------------------------------------------------- AP 20 Cott Beverages Ltd --------------------------------------------------------------------------------------------------------- AP 22 Danone Waters (UK & Ireland) ------------------------------------------------------------------------------------------ AP 24 Decantae Natural Mineral Water --------------------------------------------------------------------------------------- AP 28 Eden Springs UK Ltd ------------------------------------------------------------------------------------------------------- AP 30 Edgar’s Water --------------------------------------------------------------------------------------------------------------- AP 32 Fonthill ----------------------------------------------------------------------------------------------------------------------- AP 34 Harrogate Water Brands Ltd -------------------------------------------------------------------------------------------- AP 36 Highland Spring Group ---------------------------------------------------------------------------------------------------- AP 38 Hildon Ltd ------------------------------------------------------------------------------------------------------------------- AP 42 Iceni Waters Ltd ------------------------------------------------------------------------------------------------------------ AP 44 Kingshill Mineral Water Ltd ---------------------------------------------------------------------------------------------- AP 46 Montgomery Spring Water Company ---------------------------------------------------------------------------------- AP 48 Navson Ltd ------------------------------------------------------------------------------------------------------------------ AP 51 Nestlé Waters UK Ltd ------------------------------------------------------------------------------------------------------ AP 53 One Water------------------------------------------------------------------------------------------------------------------- AP 56 Princes Gate Spring Water ----------------------------------------------------------------------------------------------- AP 58 Princes Soft Drinks --------------------------------------------------------------------------------------------------------- AP 61 Radnor Hills Mineral Water Company Ltd ---------------------------------------------------------------------------- AP 63 Roxane UK Ltd -------------------------------------------------------------------------------------------------------------- AP 64 Shepley Spring Ltd --------------------------------------------------------------------------------------------------------- AP 67 Swithland Spring Water --------------------------------------------------------------------------------------------------- AP 69 Water Coolers (Scotland) Ltd -------------------------------------------------------------------------------------------- AP 71

Appendix 2 - UK bottled water market in perspective --------------------------------------- AP 73 Appendix 3 - Legislation ------------------------------------------------------------------------------- AP 84 Appendix 4 - Definitions and symbols ------------------------------------------------------------- AP 87 Appendix 5 - Target Group Index (TGI) --------------------------------------------------------- AP 91

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UK plain bottled water report

2016

Brief Summary 1. Commentary 2. Commentary 3. Commentary

Research Overview In compiling its research, Zenith International relies on the goodwill and co-operation of companies active in the marketplace. All information is cross-checked with other sources, such as trade associations and suppliers, to ensure as complete a picture as possible. Although we strive to provide data as accurate as possible, some figures presented are Zenith’s estimates. Based on individual producer volumes for the year, market, sector and segment totals are calculated from the ‘bottom up’. At a sector and segment level, adjustments are then made for any double counting of contract and licensed bottling. Estimates for any unauthorised soft drink imports sold through the ‘grey market’ are also included. However, this is more pronounced in categories such as energy drinks rather than bottled water. A complete picture of the UK bottled water drinks market is thus produced through Zenith’s extensive study of the largest importers and bottlers, alongside small to medium sized operators and own label specialists. The market figures presented therefore encompass all aspects of bottled water drinks including: take home, impulse and on-premise/foodservice; water cooler volumes for the office; and a small amount of home delivery water. To this end, a considerable amount of time and effort is spent contacting industry players and striving to analyse the complexities of the UK bottled water drinks arena. We believe Zenith’s coverage of the total UK bottled water drinks market to be without equal and to have attained a consistently high level of accuracy. Zenith would like to express its sincere gratitude to the entire UK bottled water drinks industry for its continued help and assistance during the research process. Our gratitude also extends to UK industry associations for their support, including: BSDA (British Soft Drinks Association), BWCA (British Water Cooler Association), NHC (Natural Hydration Council) and BBWP (British Bottled Water Producers).

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UK plain bottled water report

2016

UK Plain Water Market

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UK plain bottled water report

2016

2015 UK Plain Bottled Water Market 1.

Market Overview

 Commentary

1.1 Economy  Commentary

1.2 Weather  Commentary

UK mean temperature, 2010-15 10.0

degrees centigrade

9.5 9.0

9.00

9.00

9.00

9.00

9.00

9.00

2010

2011

2012

2013

2014

2015

8.5 8.0 7.5 7.0

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UK plain bottled water report

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UK sunshine hours, 2013-15 250

sunshine hours

200 150 100 50 0 Jan

Feb Mar Apr May Jun Jul 2013 2014

Aug Sep Oct Nov Dec 2015

UK rainfall 2013-2015 250

rainfall, mm

200 150 100 50 0 Jan

Feb Mar Apr May Jun 2013

Jul

2014

Aug Sep Oct Nov Dec 2015

1.3 Media  Commentary

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UK plain bottled water report 2.

2016

Sector Performance

 Commentary

Table 1: UK plain bottled water market, 2009-2015 Million litres

2009

2010

2011

2012

2013

2014

2015

Production Exports Imports Consumption

Production % change Exports as % of production Imports as % consumption Consumption % change Litres per person Source: Zenith International

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UK plain bottled water report

2016

Table 2: Total UK plain bottled water types, 2009-2015 Million litres

2009

2010

2011

2012

2013

2014

2015

Total market Sparkling Still

Sparkling % share Still % share

Mineral Spring Others

Mineral % share Spring % share

Water cooler Water cooler % share Water cooler % change

Packaged Packaged % change Source: Zenith International

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UK plain bottled water report

2016

UK plain packaged water vs coolers, 2010-2015 250

million litres

200

150

100

50

0 2010

2011

2012 Packaged

3.

2013

2014

2015

Water Cooler

UK plain packaged water

 Commentary

4. 

UK plain bottled water packaging Commentary

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UK plain bottled water report

2016

Table 3: UK plain bottled water packaging, 2013-2015 Million litres

2013

2014

2015

2013

2014

2015

Can/Box NR Glass NR PET R PET NR PVC R Polycarb PLA NR HDPE Total market

% share Can/Carton NR Glass NR PET R PET NR PVC R Polycarb PLA NR HDPE Source: Zenith International

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UK plain bottled water report

2016

Table 4: UK plain bottled water packaging, 2015 Pack type

Sizes in litres Million litres

Can

% share

Total 0.20/0.25 0.33/0.5

Bag in a Box

Total

NR Glass

Total 0.20/0.25 0.33/0.375 0.5 0.75 1.00 1.50

NR PET

Total 0.085/0.2/0.25 0.3/0.33/0.37 0.5 0.7/0.75 1.0 1.25 1.5 2.00 3.00 5.00 7.50 15

R PET

Total 17.50 19

NR PVC

Total 0.5 2.00 5.0

Refillable Polycarbonate

Total

10.0/11.0/11.3/11.4/11.5/12 13.00 18.5/18.9/19.0 22.0/22.7 PLA

Total 0.70

Total market Source: Zenith International

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UK plain bottled water report

2016

UK plain bottled water packaging, 2015 Others

NR PET

R Polycarb

NR Glass

Total consumption: X million litres

5.

UK plain bottled water distribution

 Commentary

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UK plain bottled water report

2016

Table 5: UK plain bottled water distribution, 2013-2015 2013 volume

Million litres

2015 2014 % share volume

2014 2013% share volume

2015 % share

Modern retail (includes discounters) Convenience / Impulse Door to door Retail

Horeca; pubs, clubs Offices Others Away from home

Total market Source: Zenith International

UK plain bottled water distribution, 2015 Modern Retail, 20.0%

Others, 20.0%

Offices, 20.0%

Convenience, Impulse, 20.0%

Horeca; pubs, clubs, 20.0% Total consumption: X million litres

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UK plain bottled water report 6. 

2016

UK plain bottled water companies and brands Commentary

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UK plain bottled water report

2016

Table 6: Top 25 companies in UK bottled water market, 2014-2015 Million litres

2014 2014 volume %share

2015 2015 volume %share

2015 ranking Packaged Cooler Total

Company 1 Company 2 Company 3

Top 25 Others Total market Top 5 Top 10 Source: Zenith International

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UK plain bottled water report

2016

Table 7: Next 25 companies in UK bottled water market, 2014-2015 Million litres

2014 2014 volume % share

2015 ranking 2015 2015 Packaged Cooler Total volume % share

Company 25 Company 26 Company 27

Top 25 Next 25 Others Total market Source: Zenith International

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UK plain bottled water report

2016

UK plain bottled water industry consolidation, 2010-15 60

% share

50 40 30 20 10 0 2010

2011

2012 Top 5

2013

2014

2015

Top 10

Top 5 plain bottled water companies, 2010 & 2015

Company 1

100 100

Company 4

100 100

Company 3

100 100

Company 2

100 100

Company 1

100 100 0

40

80

million litres

2010 2015

120

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UK plain bottled water report

2016

Top 5 UK plain bottled water companies, 2015 Company 1 , 10.0% Company 2, 10.0% Others, 50.0%

Company 3, 10.0%

Company 4 , 10.0% Company 5, 10.0% Total consumption: X million litres

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UK plain bottled water report

2016

Table 8: Top 25 brands in UK bottled water market, 2014-2015 Million litres (1)

2014 2014 % 2015 2015 volume share volume % share

Brand Rank

Brand 1

1

Brand 2

2

Brand 3

3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Top 25 Others Total market Top 5 Top 10 Source: Zenith International

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UK plain bottled water report

2016

Table 9: Next 25 brands in the UK plain bottled water market Million litres (1)

2014 2014 2015 2015 volume % share volume % share

Brand Rank

Brand 25 Brand 26 Brand 27

Top 25 Next 25 Others Total market Source: Zenith International

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UK plain bottled water report 7.

2016

UK plain bottled water producers

 Commentary

Table 10: Top 10 UK domestic plain bottled water producers, 2014-2015 Million litres

2014 2014 volume % share

2015 2015 volume % share

Company 1 Company 2 Company 3

Top 10 Others Total UK production Source: Zenith International

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UK plain bottled water report

2016

Table 11: Top 10 UK plain produced brands, 2014-2015 Million litres

2014 2014 volume % share

2015 2015 volume % share

Company 1 Company 2 Company 3

Top 10 Others (1) Total UK sales (1) (1) Includes both retail and water cooler volumes Source: Zenith International

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UK plain bottled water report

2016

UK bottled water producers, 2015 Company 1 , 10.0% Company 2, 10.0% Others, 50.0%

Company 3, 10.0%

Company 4 , 10.0% Company 5, 10.0%

Total UK bottled water production: X million litres

8. 

Plain bottled water exports Commentary

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UK plain bottled water report

2016

UK plain bottled water exports, 2010-15 60

million litres

50 40 30 20 10 0 2010

2011

2012

2013

2014

2015

Table 12: UK plain bottled water exports by country, 2010-2015 Million litres

2010

2011

2012

2013

2014

2015

Ireland China Denmark Belgium UAE (Dubai & Sharjah etc) USA France Kuwait Saudi Arabia Hong Kong Others Total exports % change Source: Global Trade Inform ation Services

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UK plain bottled water report

2016

Table 13: Top 10 plain water export brands, 2010-2015 Million litres

2010

2011

2012

2013

2014

2015

Brand 1 Brand 2 Brand 3

Total exports (1) Brands Others/stock adjustment Total export sales (2) (1) UK Government figures (2) Zenith export figures calculated from brand export totals by country Source: Zenith International

9.

Plain bottled water imports

 Commentary

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UK plain bottled water report

2016

UK plain bottled water imports, 2010-15 60 million litres 50 40 30 20 10 0 2010

2011

2012

2013

2014

2015

Table 13: UK plain bottled water imports by country, 2010-2015 Million litres

2010

2011

2012

2013

2014

2015

Belgium France Italy Turkey Germany Spain Ireland Poland Fiji Portugal Others Total imports % change Source: Global Trade Inform ation Services

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UK plain bottled water report

2016

Table 14: UK plain bottled water import sales by brand, 2010-2015 Million litres

2010

2011

2012

2013

2014

2015

France (1) Brand Brand Brand

Italy (1) Brand Brand Brand

Others/stock adjustment/misrecording Ireland (1) Brand Brand Brand Others/stock adjustment/misrecording Other countries (1) Brand Brand Brand

Others/stock adjustment/misrecording Total imports Brands Others/stock adjustment/misrecording Total import sales (1) UK Government figures Source: Zenith International

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UK plain bottled water report

2016

Leading plain UK imported waters, 2015 Brand 1 10.0%

Others 20.0%

Brand 2 10.0%

Brand 5 10.0% Brand 3 10.0% Brand 4 10.0% Total UK bottled water imports: X million litres

10. Still plain water consumption  Commentary

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UK plain bottled water report

2016

Table 15: UK plain bottled water: small pack vs cooler, 2009-2015 Million litres

2009

2010

2011

2012

2013

2014

2015

2009

2010

2011

2012

2013

2014

2015

2009

2010

2011

2012

2013

2014

2015

Total consumption Sparkling Still Total consumption Small pack Water cooler Total small pack water Packaged sparkling Packaged still

% change Total consumption Sparkling Still Total consumption Small pack Water cooler Total small pack water Packaged sparkling Packaged still

% share Total consumption Sparkling Still Total consumption Small pack Water cooler Total small pack water Packaged sparkling Packaged still Source: Zenith International

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UK plain bottled water report

2016

UK plain still water consumption share, 2010-15 55

% share

50 45 40 35 30 25 20 15 10 5 0 2010

2011

2012

2013

2014

2015

11. Packaged still water brands  Commentary

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UK plain bottled water report

2016

Table 16: UK top 10 plain packaged still water brands, 2014-2015 2014 2014 2015 2015 volume % share volume % share

Million litres

Rank

Brand 1

1

Brand 2

2

Brand 3

3 4 5 6 7 8 9 10

Top 10 Others (1) Total still water (2) (1) Includes retailer own labels (2) Excludes water for coolers Source: Zenith International

Leading UK packaged still plain water brands, 2015 Brand 1 10.0% Brand 2 10.0%

Others 50.0%

Brand 3 10.0%

Brand 4 10.0% Brand 5 10.0% Total UK packaged still water: X million litres

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UK plain bottled water report

2016

12. Packaged sparkling water brands  Commentary

Table 17: UK top 10 plain sparkling water brands, 2014-2015 Million litres

2014 2014 2015 2015 volume % share volume % share

Rank

Brand 1

1

Brand 2

2

Brand 3

3 4 5 6 7 8 9 10

Top 10 Others (1) Total sparkling water (1) Includes retailer own labels Source: Zenith International

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UK plain bottled water report

2016

Leading UK packaged still sparkling water brands, 2015 Brand 1 10.0% Brand 2 10.0%

Brand 3 10.0% Others 50.0%

Brand 4 10.0% Brand 5 10.0%

Total UK packaged sparkling water: X million litres

13. Retailer own label  Commentary

Table 18: UK top 5 own label plain water producers, 2014-2015 Million litres

2014 2014 volume % share

2015 volume

2015 % share

Rank

Top 50 Rank

Company 1 Company 2 Company 3

Top 5 Others Total own label water Source: Zenith International

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UK plain bottled water report

2016

UK Own label plain water consumption share, 2010-15 60

% share of packaged water

50 40 30 20 10 0 2010

2011

2012

2013

2014

2015

UK own label plain water producers, 2015 Company 1, 10.0%

Others, 50.0%

Company 2, 10.0%

Company 3, 10.0%

Company 4, 10.0%

Company , 10.0% Total UK own label production: X million litres

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UK plain bottled water report

2016

14. Mineral water consumption  Commentary UK natural mineral water consumption share, 2010-2015 60 50

% share of bottled water 50.0

50.0

50.0

50.0

50.0

50.0

2010

2011

2012

2013

2014

2015

40 30 20 10 0

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UK plain bottled water report

2016

Table 19: UK top 20 plain mineral water brands Million litres (1)

2014 2014 2015 2015 volume % share volume % share

Brand Rank

Brand 25 Brand 26 Brand 27

Top 25 Next 25 Others Total market Source: Zenith International

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UK plain bottled water report

2016

Leading UK plain mineral water brands, 2015 Brand 1, 10.0%

Brand 2, 10.0%

Brand 3, 10.0% Others, 50.0%

Brand 4, 10.0%

Brand 5, 10.0%

Total UK mineral water: X million litres

15. Spring water consumption  Commentary

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UK plain bottled water report

2016

UK natural spring water consumption share, 2010-2015 60

% share of bottled water

50 40 30 20 10 0 2010

2011

2012

2013

2014

2015

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UK plain bottled water report

2016

Table 20: UK top 20 plain spring water brands, 2014-2015 Million litres

2014 2014 volume % share

2015 2015 volume % share

Rank

Top 50 Rank

Brand 1 Brand 2 Brand 3

Top 20 Others Total spring water (1) Includes retail, water cooler and retailer own label volumes Source: Zenith International

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UK plain bottled water report

2016

Leading UK plain spring water brands, 2015 Brand 1, 10.0% Brand 2, 10.0%

Others, 50.0% Brand 3, 10.0%

Brand 4, 10.0% Brand 5, 10.0%

Total UK spring water: X million litres

16. Glass packaged plain bottled water  Commentary

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UK plain bottled water report

2016

Table 21: UK top 10 plain companies in glass packaging, 2014-2015 Million litres

2015 2015 2014 2014 volume % share volume % share

Top 50 Rank

Company 1 Company 2 Company 3

Top 10 Others Total in glass Source: Zenith International

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UK plain bottled water report

2016

Leading UK plain water companies in glass, 2015 Brand 1 10.0% Brand 2 10.0% Nos 6 to 10 20.4%

Brand 3 10.0%

Brand 4 10.0% Brand 5 10.0%

Total UK packaged water in glass: X million litres

17. Plastic packaged plain bottled water  Commentary

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UK plain bottled water report

2016

Table 22: UK top 10 companies in plastic packaging, 2014-2015 Million litres

2014 2014 2015 2015 volume % share volume % share

Top 50 Rank

Company 1 Company 2 Company 3

Top 10 Others Total in plastic (1) (1) Packaged water in PET/recycled PET only Source: Zenith International

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UK plain bottled water report

2016

Leading UK plain water companies in plastic, 2015 Company 1, 10.0% Company 2, 10.0%

Others, 50.0%

Company 3, 10.0%

Company 4, 10.0% Company 5, 10.0% Total UK packaged water in plastic: X million litres

18. Plain vs water plus  Commentary

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UK plain bottled water report

2016

UK plain vs flavoured water, 2010-15 1200

million litres

1000 800 600 400 200 0 2010

2011

2012

2013

Plain packaged

2014

2015

Flavoured

UK still/sparkling flavoured water, 2013-15 250

million litres

200

100

100

100

100

100

100

2013

2014

2015

150 100 50 0 Still

Sparkling

19. UK water coolers  Commentary

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UK plain bottled water report

2016

Table 23: UK top 10 water cooler companies, 2010-2015 2010

Million litres

2013

2012

2011

2014

2015

Company 1 Company 2 Company 3

Top 10 Others (2) Total water cooler % change Source: Zenith International

UK water cooler market, 2010-15 150

100

million litres

100

100

100

100

100

100

2010

2011

2012

2013

2014

2015

50

0

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UK plain bottled water report

2016

20. Plain bottled water consumer  Commentary

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UK plain bottled water report

2016

Table 24: GB plain bottled water consumer, 2010-2015

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UK plain bottled water report

% of GB population

2010

2016

2011

2012

2013

2014

2015 (1)

Bottled water consumers

'Regular' bottled water consumers (consume more than once a week)

% of age group who 'ever drink' 15-24 25-34 35-44 45-54 55-64 65+

Index of bottled water consumers (100 = average) Male Female (1) For fieldwork period July 2014 - June 2015 Source: Target Group Index (TGI) - GB Adults aged 15 and above

zenithinternational Š Zenith International Ltd 2016 worldwide

specialist consultants to the food and drink industries


UK plain bottled water report

2016

GB plain bottled water consumption, 2010-15

12 % of GB population

10 8 6 4 2 0 2010

2011

2012

Regular consumers

2013

2014

2015

All consumers

zenithinternational Š Zenith International Ltd 2016 worldwide

specialist consultants to the food and drink industries


UK plain bottled water report

2016

Table 25: Total UK plain bottled water: per capita consumption, 2009-2015 Litres

2009

2010

2011

2012

2013

2014

2015

2009

2010

2011

2012

2013

2014

2015

Per capita consumption Sparkling Still

Per capita consumption Small pack Water cooler

Per capita small pack water Packaged sparkling Packaged still

% change Per capita consumption Sparkling Still

Per capita consumption Small pack Water cooler

Per capita small pack water Packaged sparkling Packaged still Source: Zenith International

zenithinternational Š Zenith International Ltd 2016 worldwide

specialist consultants to the food and drink industries


UK plain bottled water report

2016

Table 26: International plain bottled water comparison CAGR Litres per person

2010

2015

2020f (10-15)

(15-20f)

United States

France Germany Italy Spain United Kingdom West Europe

Poland East Europe

China Asia Pacific

Global Source: Zenith International - globaldrinks.com

21. Plain bottled water value  Commentary

zenithinternational Š Zenith International Ltd 2016 worldwide

specialist consultants to the food and drink industries


UK plain bottled water report

2016

Table 27: UK plain bottled water value, 2013-2015

Volume

£ VPL

2015

2014

2013 £m Volume Value

£ VPL

£m Volume Value

£ VPL

£m Value

Packaged Packaged % increase

Modern retail (inc discounters) Convenience / Impulse, others Horeca; pubs, clubs Others

Water cooler Water cooler % increase

Total market (1) Total market % change (1) Retail sales value, including restated water cooler values Numbers may vary due to rounding Source: Zenith International

zenithinternational © Zenith International Ltd 2016 worldwide

specialist consultants to the food and drink industries


UK plain bottled water report

2016

UK plain bottled water market value, 2010-15 1200

1.20

1000

1.00

800

0.80

600

0.60

400

0.40

200

0.20

0

0.00 2010

2011 2012 2013 market value (ÂŁ mln)

2014 2015 value per litre (ÂŁ)

zenithinternational Š Zenith International Ltd 2016 worldwide

specialist consultants to the food and drink industries


UK plain bottled water report

2016

Table 28: UK plain bottled water value per litre by pack size, 2014-2015 Pack size

2014

2015

Growth

Spark to 2 l Still to 2 l Still 2.1 - 10 l Still > 10.1 l Total Source: Zenith International

Table 29: Plain premium vs private label value per litre, 2014-2015 2014

2015

Growth

Premium

Private label

Plain water total (1) (1) Excludes water for coolers Source: Zenith International

Table 30: International premium vs private label value per litre comparison, 2015 Country

Plain water (1)

Premium water (1)

Private label water (1)

France Italy Germany USA UK (1) Excludes water for coolers Source: Zenith International

22. Ethical waters / ethical initiatives  Commentary.

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specialist consultants to the food and drink industries


UK plain bottled water report

2016

23. Ongoing challenges 23.1 Environmental Key challenge Commentary

Future trends Commentary

23.2 Carbon footprint Key challenge Commentary

Future trends Commentary

23.3 Water footprint Key challenge Commentary

Future trends Commentary

23.4 Lightweighting Key challenge Commentary

Future trends Commentary

23.5 Recycling Key challenge Commentary

Future trends Commentary

23.6 Tap water Key challenge Commentary

Future trends Commentary

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specialist consultants to the food and drink industries


UK plain bottled water report

2016

23.7 Industry consolidation Key challenge Commentary

Future trends Commentary

23.8 Portfolio diversity Key challenge Commentary

Future trends Commentary

23.9 Consumer confidence and education Key challenge Commentary

Future trends Commentary

23.10 Retailer perception Key challenge Commentary

Future trends Commentary

23.11 Stock control and supply Key challenge Commentary

Future trends Commentary

23.12 Price pressures Key challenge Commentary

Future trends Commentary

24. Water Stewardship 

Commentary.

zenithinternational Š Zenith International Ltd 2016 worldwide

specialist consultants to the food and drink industries


UK plain bottled water report

2016

25. Legislation 

Commentary

26. Forecast to 2020  Commentary. UK plain bottled water market forecast, 2010-20

1500 million litres

1000

500

0 2010

2011

2012

2013

2014

2015

2016f

2017f

2018f

2019f

2020f

zenithinternational Š Zenith International Ltd 2016 worldwide

specialist consultants to the food and drink industries


UK plain bottled water report

2016

Table 31: UK plain bottled water consumption by segment, 2015-2020f Million litres

2015

2016f

2017f

2018f

2019f

2020f

Carbonated Still

Carbonated % share Still % share

Water cooler Water cooler % share Water cooler % change

Packaged Packaged % share Packaged % change

Total market Total market % change Source: Zenith International

zenithinternational Š Zenith International Ltd 2016 worldwide

specialist consultants to the food and drink industries


2016

APPENDIX 1 – LEADING COMPANY PROFILES

zenithinternational © Zenith International Ltd 2016

specialist consultants to the food and drink industries worldwide

AP 1


March 2016

Zenith Report

COMPANY NAME Address: Tel: Website:

Fax: Email:

Company Structure Ownership: Senior management:

Employees: Subsidiaries:

Related activities: Non-related activities:

Company Finances £ Million, year to Jan

2009

2010

2011

2012

2013

2014

2015

Sales Profit before tax

Water Production Location:

Source: Lines:

Investment:

Product Range Brand Name

© Zenith International Ltd 2016

Description Still- Spring

Pack TypeSize (litres) NR PET 0.33 0.75

0.5 1.5

AP


March 2016

Zenith Report

Production & Sales volume plain still / sparkling water Million Litres 2009 2010 2011 Production Exports UK Sales - Sparkling - Still

2012

2013

2014

2015

Brand - Sparkling - Still

Marketing Analysis Packaging (2015) NR GLASS 0.33 0.75 1.0 NR PET 0.33 0.5 0.75 1.5 2.0 R Polycarb 18.9

Outlets (2015) Away from Home Retail

Advertising

Commentary

Š Zenith International Ltd 2016

AP


APPENDIX 2 - BOTTLED WATER IN PERSPECTIVE

1.

2016

UK Plain bottled water market 25 year review

1.1 Overall market performance Commentary UK plain bottled water market, 1990-2015

1200

1000

800

600

400

200

zenithinternational Š Zenith International Ltd 2016 worldwide

specialist consultants to the food and drink industries

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

1990

0


APPENDIX 2 - BOTTLED WATER IN PERSPECTIVE

2016

1.2 Small Pack vs. Coolers Commentary Small Pack vs. Cooler volume 1990 - 2015 1200

1000

800

600

400

200

Small pack

Water cooler

1.3 Small Pack Sparkling vs. Still Commentary Chart to illustrate

zenithinternational Š Zenith International Ltd 2016 worldwide

specialist consultants to the food and drink industries

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

1990

0


APPENDIX 2 - BOTTLED WATER IN PERSPECTIVE

1.4 Own label water consumption Commentary

Chart to illustrate

2.

UK Plain bottled water market in perspective

FROM 1994 ZENITH GUIDE Commentary

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specialist consultants to the food and drink industries

2016


APPENDIX 3 - LEGISLATION

2016

APPENDIX 3 - LEGISLATION  Commentary

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specialist consultants to the food and drink industries


APPENDIX 4 - DEFINITIONS AND SYMBOLS

APPENDIX 4 – DEFINITIONS AND SYMBOLS DEFINITIONS Natural Mineral Water The basic requirements of the UK regulations are:  Must come from a recognised groundwater source. Recognition is granted by local authorities to meet EU standards and requires a lengthy testing process to ensure freedom from pollution and a consistent mineral composition.  Must be bottled at source unless the practise was to tanker to the bottling plan on or before 17th July 1980.  Cannot undergo treatment except for filtration of particles, except in exceptional circumstances.  Nothing can be added to water except carbon dioxide for carbonation.  The water can only be bottled under a single name, described as natural mineral water.  The water must meet strict requirements for microbiological and chemical purity.

Spring Water The basic requirements of the UK regulations are:  Must come from a groundwater source.  Must be bottled at source (unless the practise was to tanker to the bottling plant on or before 23rd November 1996).  In the UK, spring water can currently undergo some forms of treatment.  The water can only be bottled under a single named Spring Water. However, additional Bottled Drinking Waters can be produced from the same source.  The water must meet requirements for microbiological and chemical purity based on the requirements for tap water.

Bottled Drinking Water The basic requirements of the UK regulations are:  ‘Bottled drinking water‘is a legal category of water and should not be confused with the general use of the term ‘bottled water’.  Can come from any source – groundwater, surface water (e.g. a lake or river), tap water or other (e.g. glacier, iceberg, rainwater)  Need not be bottled at source.  Can undergo any form of water treatment.  Water from a single source can be bottled under different names.  Can be bottled under any description except one that is misleading to consumers. Use of the description natural mineral water, spring water or mineral water is not permitted. Some commonly used descriptions are ‘Table Water’ and ‘Purified Water’.  The water must meet requirements for microbiological and chemical purity based on the requirements for tap water. These definitions are a simple description of the requirements of the UK bottled water regulations. For a detailed definition please consult the Natural Mineral Water, Spring Water and Bottled Drinking Water Regulations, 1999 and any subsequent amendments. For a detailed review of the implications of

zenithinternational © Zenith International Ltd 2016 worldwide

specialist consultants to the food and drink industries

2016


APPENDIX 4 - DEFINITIONS AND SYMBOLS the regulations, consult Zenith’s ‘Plain Language Guide to the UK Bottled Water Regulations’. Further information can be found at www.zenithinternational.com and search for Plain Language Guide.

Flavoured Water Sweetened with sugar, sweetener or unsweetened with added fruit essence; sparkling and still natural mineral, spring or bottled drinking water with added flavourings. Includes:  Flavoured unsweetened bottled waters  Flavoured bottled waters with added sugar and/or sweetener Not included are:  ‘Schorle’ (sparkling water and fruit juice) and other soft drinks  ‘Limonaden’ (water-based, flavoured carbonated soft drinks popular in Germany)  Pressé drinks (ready-to-drink cordial drinks)

Functional Water Functional waters have added functional ingredients, such as botanicals, vitamins, minerals, oxygen or others. Functional waters can be still or sparkling and can be flavoured or unflavoured. Such waters are marketed as having a functional positioning.

Juicy Water Defined as water with added juice, juice content ranges from 5% to 25-30%. However, the key attribute is consumer perception of such products as being water plus juice as opposed to a juice drink. These drinks are perceived by consumers to be closer to flavoured waters than juices/nectars. Includes:  Volvic Juiced  Drench Juicy  This Juicy Water Excludes:  Sanpellegrino Aranciata/ Limonata  Capri Sun  Vimto Water Plus Water plus includes flavoured waters, functional waters and juicy waters as defined above.

Distribution channels

Retail Supermarkets  Multiples and other grocers – Tesco, Sainsbury, Asda, Waitrose, Morrisons, Somerfield, Coop, Marks & Spencer, Boots, Budgens, Iceland  Aldi, Lidl and other discounters  Smaller local supermarkets (e.g. Booths, Harry Tuffins)  Supermarket forecourts and smaller formats of the major multiples (e.g. Tesco Metro)

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specialist consultants to the food and drink industries

2016


APPENDIX 4 - DEFINITIONS AND SYMBOLS

Independent, others  Confectioneries, tobacconists and newsagents (CTNs)  Convenience stores (e.g. Londis)  Small independent grocers  Other forecourts  Off licences  Other retail stockists/cash & carry Door-to-door  Dairy deliveries  Direct mail orders  Door-to-door deliveries of water for coolers Away From Home Offices  Water supplied in places of work such as offices, factories etc. Horeca, pubs and clubs  HoReCa – hotel, restaurant and catering channels  Cafés, bars, pubs  Nightclubs  Food service  Vending machines Others  All other away from home outlets

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specialist consultants to the food and drink industries

2016


APPENDIX 4 - DEFINITIONS AND SYMBOLS SYMBOLS ...

Negligible, less than 0.05

e

Estimate

Foodservice

Distribution to on-premise or horeca outlets

Horeca

Hotels, restaurants and catering

na

Not available, not applicable

NR

Non returnable packaging

HDPE

High Density Polyethylene

HOD

Home and Office Delivery

PET

Polyethylene terephthalate

PLA

Polylactide or polylactic acid

POU

Point of use (mains water) cooler

PVC

Polyvinyl chloride

R

Returnable packaging

SC

Sports cap

VPL

Value per litre

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specialist consultants to the food and drink industries

2016


APPENDIX 5 - TARGET GROUP INDEX (TGI)

APPENDIX 5 - TARGET GROUP INDEX (TGI) Target Group Index (TGI) syndicated surveys provide actionable single-source data on consumer behaviour, purchasing habits, attitudes and motivations. Established in 1969 and originally focused on the British market, TGI has since expanded to cover more than 65 countries. In Britain TGI is representative of all adults aged 15+ and is used by over 300 companies, including brand owners, media owners and advertising agencies. TGI enables    

Awareness of market trends and dynamics Identification of opportunities for new and existing brand development Accurate description of target groups Improved marketing strategies and advertising campaigns

TGI is    

Insightful and actionable Information on usage of over 4,000 brand across 500 product areas Updated four times a year Single source and independent of vested interest

www.kantarmedia.co.uk TGI’s consulting offer, TGI Insights and Integration, enables the breaking of new ground in consumer insight through the provision of the most suitable skills, tools, analysts and thinking. With genuine global reach (we are part of Kantar, WPP’s insights and consultancy arm) and unique access to raw TGI data in 65 countries we are a strategic partner to the world’s most demanding consumer-facing industries.

Anne Benoist - Director +44 (0)20 8433 4227 anne.benoist@kantarmedia.com www.tgi-insights.com

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specialist consultants to the food and drink industries

2016


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