Beverage Digest Bottled Water Report 2018

BOTTLED WATER REPORT 2018 March 2018

TABLE OF CONTENTS

Table of Contents Name

Page #

Introduction

3

Overview

6

Premium Plus

12

Eco-Issues

17

Crossing Categories

21

Conclusion

25

© Beverage-Digest

BOTTLED WATER REPORT 2018

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INTRODUCTION

Bottled Water Report 2018  The volume of all bottled water, which includes both institutional and bulk products, surpassed carbonated soft drink sales in the last year following a 13-year volume decline. This is noteworthy given the category’s historic dominance on American beverage culture. However, single-serve bottled water, while rapidly growing, still largely trails CSDs in volume sales and vastly trails CSDs in dollars.  This report will examine the main trends influencing the bottled water industry: 1) the evolution of premium products, 2) environmental challenges, and 3) the rise of soda-alternatives in the category. While some of these trends have led to category growth, they have also presented challenges. These topics are not just relevant in today’s landscape, but we believe they will be the basis for changes in the bottled water market for years to come.

Disclaimer Much of the information in this briefing is of a statistical nature and, while every attempt has been made to ensure accuracy and reliability, Beverage-Digest and Zenith International cannot be held responsible for omissions or errors.

Figures in tables and analyses are calculated from unrounded data and may not sum. Analyses found in the briefings may not totally reflect the companies’ opinions. Reader discretion is advised.

Please note that this report, and all contents herein, are for the sole use of the purchaser and that unauthorized electronic, print or fax reproduction in whole or in part is a violation of Federal Law. Violators are liable for actual damages or statutory damages up to $100,000.

We thank you for your purchase and hope you enjoy the Bottled Water Report 2018.

© Beverage-Digest

BOTTLED WATER REPORT 2018

3

INTRODUCTION

Definitions  Liquid Refreshment Beverages (LRBs) – The combined sum of CSDs, bottled water, and Non-Carbs as defined below.  Carbonated soft drinks (CSDs) – Encompasses all packages and formats moving through all channels including fountain and vending. Our definition of CSDs also includes energy drinks, since they are carbonated, and many are manufactured and packaged similarly to traditional CSD brands. When referred to as soda or pop, this excludes energy drinks.  Single-serve bottled water (Bottled Water or Water) – Unless otherwise noted, this refers to plain bottled water sold in packages of 1.5 liters or less and sometimes referred to as “PET” water. BeverageDigest does not include larger "bulk" water packages sold at retail or via home and office delivery in its all-channel data. Data from other sources may include other sizes and will be notated as such.  Non-carbonated (Non-Carbs) beverages – Includes shelf-stable juice drinks (not including multi-serve "juice aisle" products or refrigerated products like Tropicana or Simply); sports drinks; ready-to-drink teas; shelf-stable/single-serve dairy drinks; and "all other" which includes such things as non-soda foodservice ingredients.  Cases – Unless otherwise noted, volume in this report is represented as 192-oz cases. This derives from the historic use of wooden cases packed with 24 8-oz glass bottles and is an industry standard equivalized measurement.  Compounded Annual Growth Rate (CAGR) – Growth in this report is sometimes represented as a compounded annual growth rate, or CAGR. Unlike an average annual growth rate, CAGR values offer a better example of historic growth periods because it dampens the effect of volatility of periodic returns.  Premium Water – Plain bottled water that is either sourced from a spring or filtered from a municipal facility that is positioned as having superior qualities that justify a higher price per liter than other spring or filtered bottled waters. Products in this category tend to be priced over one dollar per liter. © Beverage-Digest

BOTTLED WATER REPORT 2018

Disclaimer Much of the information in this briefing is of a statistical nature and, while every attempt has been made to ensure accuracy and reliability, Beverage-Digest and Zenith International cannot be held responsible for omissions or errors.

Figures in tables and analyses are calculated from unrounded data and may not sum. Analyses found in the briefings may not totally reflect the companies’ opinions. Reader discretion is advised.

Please note that this report, and all contents herein, are for the sole use of the purchaser and that unauthorized electronic, print or fax reproduction in whole or in part is a violation of Federal Law. Violators are liable for actual damages or statutory damages up to $100,000.

We thank you for your purchase and hope you enjoy the Bottled Water Report 2018.

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