Zenith Report on UK Bottled Water Drinks
April 2014
Zenith Report on UK Bottled Water Drinks April 2014
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
2014 ZENITH REPORT ON UK BOTTLED WATER DRINKS CONTENTS UK BOTTLED WATER MARKET COMMENTARY Introduction Brief Summary Research overview
1 2 4
UK PLAIN WATER MARKET COMMENTARY 2013 UK plain bottled water market Market overview Economy Weather Media Sector performance
6 6 6 8 8 9
UK plain packaged water UK plain bottled water packaging UK plain bottled water distribution UK plain bottled water companies UK plain bottled water groups UK plain bottled water producers Plain bottled water exports Plain bottled water imports Still plain water consumption Packaged still plain water brands Sparkling plain water brands Plain retailer own label Plain mineral water consumption Plain spring water consumption Glass plain packaged bottled water Plastic plain packaged bottled water Plain vs flavoured water UK water coolers Plain bottled water consumer Plain bottled water value Plain ethical waters / Ethical initiatives
12 13 13 14 15 16 17 18 19 19 20 22 23 23 24 24 25 26 27 29 30
Ongoing challenges Environmental Carbon footprint Water footprint Lightweighting Recycling Tap water Industry consolidation Portfolio diversity Consumer confidence and education Retailer perception
33 33 34 35 35 36 36 36 37 37 40
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Stock control Price pressures
41 41
Water stewardship Legislation
43 43
Forecast to 2018
45
UK WATER PLUS MARKET COMMENTARY 2013 UK water plus market Market overview Economy Weather Media Sector performance
47 47 47 48 48 49
UK water plus distribution UK water plus companies UK water plus groups UK water plus producers Still water plus consumption Sparkling water plus brands Retailer own label Water plus consumer Water plus value Ethical initiatives
51 51 52 53 53 54 54 55 55 56
Ongoing challenges Maintaining consumer interest Selling ‘hydration with flavour’ The sugar debate Retailer perception Stock control & supply Price pressures
57 57 57 57 57 58 58
Forecast to 2018
59
APPENDICES APPENDIX 1 – PLAIN WATER CHARTS Market overview 1 UK mean temperature, 2008-2013 2 UK sunshine hours, 2011-2013 3 UK rainfall, 2011-2013 4 UK plain packaged water vs water coolers, 2008-2013 5 UK plain bottled water packaging, 2013 6 UK plain bottled water distribution, 2013
61 62 63 64 65 66
Industry structure 7 UK plain bottled water industry consolidation, 2008-2013 8 Top 5 plain bottled water companies, 2008 & 2013 9 Top 5 plain bottled water groups, 2013
67 68 69
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60
10 Leading UK plain bottled water producers, 2013
70
Imports and exports 11 UK plain bottled water exports, 2008-2013 12 UK plain bottled water imports, 2008-2013 13 Leading UK imported plain waters, 2013
71 72 73
Market segments 14 UK still plain water consumption share, 2008-2013 15 Leading UK packaged still plain water brands, 2013 16 Leading UK packaged sparkling plain water brands, 2013 17 UK own label plain water consumption share, 2008-2013 18 UK own label plain water producers, 2013 19 UK natural mineral water consumption share, 2008-2013 20 Leading UK plain mineral water brands, 2013 21 Leading UK plain spring water brands, 2013 22 Leading UK companies in glass, 2013 23 Leading UK companies in plastic, 2013
74 75 76 77 78 79 80 81 82 83
Bottled water market in context 24 UK plain vs flavoured water, 2008-2013 25 UK still vs sparkling flavoured water, 2008-2013 26 UK water cooler market, 2008-2013 27 GB bottled water consumer, 2008-2013
84 85 86 87
Value 28 UK plain bottled water market value, 2008-2013
88
Forecasts 29 UK plain bottled water market forecast, 2008-2018
89
APPENDIX 2 – PLAIN WATER TABLES Market overview 1 UK plain bottled water market, 2006-2013 2 UK plain bottled water types, 2006-2013 3 UK plain bottled water: small pack vs cooler, 2006-2013 4 Total UK plain bottled water: Per capita consumption, 2006-2013 5 UK plain bottled water packaging, 2011-2013 6 UK plain bottled water distribution, 2011-2013 7 UK plain bottled water packaging, 2013
91 91 92 93 94 94 95
Industry structure 8 Top 25 companies in UK plain bottled water market, 2012-2013 9 Next 25 companies in UK plain bottled water market, 2012-2013 10 Top 25 brands in UK plain bottled water market, 2012-2013 11 Next 25 brands in UK plain bottled water market, 2012-2013
96 97 98 99
Market segments 12 UK top 10 plain sparkling water brands, 2012-2013 13 UK top 10 plain packaged still water brands, 2012-2013 14 UK top 20 plain mineral water brands, 2012-2013
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90
100 100 101
15 16 17 18 19
UK top 20 plain spring water brands, 2012-2013 UK top 10 own label plain water producers, 2012-2013 UK top 10 water cooler companies, 2008-2013 UK top 10 companies in glass packaging, 2012-2013 UK top 10 companies in plastic packaging, 2012-2013
102 103 103 104 104
Production, bottled water consumer, imports and exports 20 Top 10 UK plain bottled water producers, 2012-2013 21 Top 10 UK plain produced brands, 2012-2013 22 GB plain Bottled Water Consumer, 2008-2013 23 UK top 10 plain water export brands, 2008-2013 24 UK plain bottled water exports by country, 2008-2013 25 UK plain bottled water imports by country, 2008-2013 26 UK plain bottled water import sales by brand, 2008-2013
105 105 106 106 107 107 108
Value 27 UK Plain Bottled Water Value, 2011-2013 28 UK plain bottled water value per litre by pack size, 2012-2013 29 P plain premium vs private label value per litre, 2012-2013 30 International premium vs private label value per litre comparison, 2013
109 109 110 110
Forecasts 31 UK plain bottled water consumption by segment, 2013-2018
111
Bottled water market in context 32 UK plain bottled water in context, 2008-2013 33 International plain bottled water comparison, 2008-2018
112 112
APPENDIX 3 – WATER PLUS CHARTS Industry structure 1 UK water plus industry consolidation, 2012-2013 2 Top 5 water plus companies, 2012 & 2013 3 Top 5 water plus groups, 2013
113 114 115 116
Market segments 4 UK water plus consumption share, 2008-2013 5 Leading flavoured water brands, 2013 6 Leading functional water brands, 2013 7 Leading juicy water brands, 2013 8 UK own label flavoured water consumption share, 2008-2013 9 UK own label flavoured water producers, 2013
117 118 119 120 121 122
Value 10 UK water plus market value, 2008-2013
123
Forecasts 11 UK water plus market forecast, 2008-2018
124
APPENDIX 4 – WATER PLUS TABLES Market overview 1 UK water plus market, 2007-2013
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125 126
2 3 4 5
UK water plus types, 2007-2013 Total UK water plus: Per capita consumption, 2007-2013 UK water plus packaging, 2013 UK water plus distribution, 2011-2013
126 127 128 128
Industry structure 6 Top 15 companies in UK water plus market, 2012-2013 7 Top 20 brands in UK water plus market, 2012-2013 8 Top 20 brands in UK water plus market, ranking
129 130 131
Market segments 9 UK top 10 flavoured water brands, 2012-2013 10 UK top 5 functional water brands, 2012-2013 11 UK top 3 juicy water brands, 2012-2013 12 UK top 5 own label flavoured water producers, 2012-2013 13 UK own label flavoured water production, 2011-2013
132 132 133 133 134
Production, flavoured water consumer, imports and exports 14 Top 10 UK water plus producers, 2012-2013 15 GB flavoured water, herbal, and premium soft drinks consumer, 2013 16 UK top 5 still water plus brands, 2012-2013 17 UK top 5 sparkling water plus brands, 2012-2013
135 135 136 136
Value 18 UK water plus value, 2011-2013 19 Branded vs private label retail value per litre, 2012-2013
137 138
Bottled water market in context 20 International flavoured water comparison, 2008-2018
138
Forecasts 21 UK water plus consumption by segment, 2013-2018
139
APPENDIX 5 - LEADING COMPANY PROFILES AG Barr Plc Angel Springs Holdings Ltd Berrington Pure Spring Water Best Water Technology Black Mountain Mineral Water Company
140 141 144 146 148 150
Brecon Mineral Water Britvic Plc Calypso Soft Drinks Coca-Cola Enterprises Coca-Cola HBC Northern Ireland
153 156 159 161 163
Cooleraid Cott Beverages Ltd Danone Waters (UK & Ireland) Ltd Decantae Natural Mineral Water Eden Springs UK
166 168 170 174 176
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Edgar’s Water Fonthill Pure English Spring Water Harrogate Water Brands Highland Spring Ltd Hildon Ltd
178 180 182 184 188
Iceni Kingshill Mineral Water Ltd Montgomery Spring Water Company Navson Drinks Nestlé Waters UK Ltd
190 192 194 197 199
Nichols Norbev Prince’s Gate Spring Water Princes Soft Drinks Radnor Hills Mineral Water Company
202 203 206 209 212
Roxane Shepley Spring Ltd Swithland Spring Water Tredwerwen Springs Water Coolers (Scotland) Ltd
215 217 219 221 223
APPENDIX 6 - UK BOTTLED WATER MARKET IN PERSPECTIVE
226
APPENDIX 7 - LEGISLATION
233
APPENDIX 8 - DEFINITIONS AND SYMBOLS
236
APPENDIX 9 - TARGET GROUP INDEX (TGI)
240
© Zenith International Ltd 2014
Zenith Report: April 2014
UK bottled water
2014
Introduction
This is the twenty-second Zenith Report on the UK Bottled Water Market, and there is now a diverse range of other emerging markets covered by the Zenith Report series. With each, 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 2014 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 6. The report represents exceptional coverage of the UK bottled water 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.
Cecilia Martinez Regional Research Co-ordinator - Americas Zenith International
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4: UK PLAIN PACKAGED WATER VS WATER COOLERS, 08-13 million litres
2008
2009
2010 Plain packaged
2011
2012 Water Cooler
2013
5: UK PLAIN BOTTLED WATER PACKAGING, 2013 % share
Others R Polycarb
NR Glass
NR PET Total consumption: million litres
6: UK PLAIN BOTTLED WATER DISTRIBUTION, 2013 % share
Others Offices
Modern Retail
Horeca; pubs, clubs
Convenience, Impulse Total consumption: million litres
7: UK PLAIN BOTTLED WATER INDUSTRY CONSOLIDATION, 2008-13 Percentage Share
2008
2009
2010 Top 5
2011
2012 Top 10
2013
10: LEADING UK PLAIN BOTTLED WATER PRODUCERS, 2013 % share
Others Nos. 7 to 10
Company 6
Company 1
Company 5
Company 4
Company 3
Company 2
Total UK plain bottled water production: million litres
13: LEADING UK IMPORTED PLAIN WATERS, 2013 % share
Brand 5
Others
Brand 4 Brand 1
Brand 3
Brand 2 Total UK plain bottled water imports: million litres
18: UK OWN LABEL PLAIN WATER PRODUCERS, 2013 % share
Others Company 6
Company 1
Company 5
Company 2
Company 4
Company 3 Total UK plain own label production: million litres
22: LEADING UK COMPANIES IN GLASS, 2013 % share
Others
Company 1
Nos 6 to 10
Company 2
Company 3
Company 5 Company 4
Total UK plain packaged water in glass: million litres
23: LEADING UK COMPANIES IN PLASTIC, 2013 % share
Others Company 1 Nos 6 to 10
Company 5
Company 2
Company 4 Company 3 Total UK plain packaged water in plastic: million litres
28: UK PLAIN BOTTLED WATER MARKET VALUE, 2008-13 market value (£ mln)
value per litre (£)
1800
1.00
1600 0.95 1400 1200
0.90
1000 0.85 800 600
0.80
400 0.75 200 0
0.70 2008
2009
2010
2011
2012
2013
29: UK PLAIN BOTTLED WATER MARKET FORECAST, 2008-18 million litres
2008 2009 2010 2011 2012 2013 2014f 2015f 2016f 2017f 2018f
3: TOP 5 UK WATER PLUS GROUPS, 2013 % share
Company 5
Company 1 Company 4
Company 3 Company 2 Total consumption: million litres
4: UK WATER PLUS CONSUMPTION SHARE, 2008-13 % share
2008
2009
2010 Flavoured
2011 Functional
2012 Juicy
2013
8: UK OWN LABEL FLAVOURED WATER CONSUMPTION SHARE, 2011-13 % share of flavoured water
2011
2012
2013
9: UK OWN LABEL FLAVOURED WATER PRODUCERS, 2013 % share
Others Company 5
Company 1
Company 4
Company 3
Company 2 Total UK flavoured own label production: million litres
10: UK WATER PLUS MARKET VALUE, 2008-13 market value (£ mln)
value per litre (£)
600
1.50 1.40
500
1.30 400
1.20
300
1.10 1.00
200
0.90 100
0.80
0
0.70 2011
2012
2013
11: UK WATER PLUS MARKET FORECAST, 2008-18 million litres
2008 2009 2010 2011 2012 2013 2014f 2015f 2016f 2017f 2018f
Zenith Report: April 2014
UK bottled water
2014
APPENDIX 8 - 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.
© Zenith International Ltd 2014
Zenith Report: April 2014
UK bottled water
2014
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 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
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Zenith Report: April 2014
UK bottled water
2014
Distribution channels Retail Supermarkets ♦ Multiples and other grocers – Tesco, Sainsbury, Asda, Waitrose, Morrisons, Somerfield, Co-op, 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) 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
© Zenith International Ltd 2014
Zenith Report: April 2014
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
Š Zenith International Ltd 2014
UK bottled water
2014
UK bottled water
Zenith Report: April 2014
2014
APPENDIX 9 - 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-tgigb.com 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
© Zenith International Ltd 2014