Zenith Report on UK Bottled Water April 2012
Zenith Report on UK Bottled Water April 2012
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
2012 ZENITH REPORT ON UK BOTTLED WATER CONTENTS UK BOTTLED WATER MARKET COMMENTARY Introduction Brief Summary Research overview
1 2 4
2010 UK bottled water market Market overview Economy Weather Media Sector performance
5 5 5 7 8 9
UK packaged water UK bottled water packaging UK bottled water distribution UK bottled water companies UK bottled water groups UK bottled water producers Bottled water exports Bottled water imports Still water consumption Packaged still water brands Carbonated water brands Retailer own label Mineral water consumption Spring water consumption Glass packaged bottled water Plastic packaged bottled water Plain vs flavoured water UK water coolers Bottled water consumer Bottled water value Ethical waters / Ethical initiatives
11 12 12 13 15 15 15 16 18 18 19 19 20 21 21 22 23 24 25 26 28
Key developments in 2011 Industry developments Company developments Brand developments
31 31 32 34
Ongoing challenges Environmental Carbon footprint Water footprint Lightweighting Recycling Tap water
35 35 36 38 39 39 40
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Consumer confidence and education Retailer perception Stock control Price pressures Industry consolidation Portfolio diversity Legislation Forecast to 2014 APPENDICES APPENDIX 1 – CHARTS Market overview 1 UK mean temperature, 2006-2011 2 UK sunshine hours, 2008-2011 3 UK rainfall, 2008-2011 4 UK packaged water vs water coolers, 2006-2011 5 UK bottled water packaging, 2011 6 UK bottled water distribution, 2011
42 44 45 46 47 49 50 53 55 55 56 57 58 59 60
Industry structure 7 UK bottled water industry consolidation, 2006-2011 8 Top 5 bottled water companies, 2006-2011 9 Top 5 bottled water groups, 2011 10 Leading UK bottled water producers, 2011
61 62 63 64
Imports and exports 11 UK bottled water exports, 2006-2011 12 UK bottled water imports, 2006-2011 13 Leading UK imported waters, 2011
65 66 67
Market segments 14 UK still water consumption share, 2006-2011 15 Leading UK packaged still water brands, 2011 16 Leading UK packaged sparkling water brands, 2011 17 UK own label water consumption share, 2006-2011 18 UK own label water producers, 2011 19 UK natural mineral water consumption share, 2006-2011 20 Leading UK mineral water brands, 2011 21 Leading UK spring water brands, 2011 22 Leading UK companies in glass, 2011 23 Leading UK companies in plastic, 2011
68 69 70 71 72 73 74 75 76 77
Bottled water market in context 24 UK plain vs flavoured water, 2006-2011 25 UK still vs sparkling flavoured water, 2006-2011 26 UK water cooler market, 2006-2011 27 GB bottled water consumer, 2006-2011
78 79 80 81
Value 28 UK bottled water market value, 2006-2011
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Forecasts 29 UK bottled water market forecast, 2006-2016 APPENDIX 2 – TABLES Market overview 1 UK bottled water market, 2006-2011 2 UK bottled water types, 2006-2011 3 UK bottled water: small pack vs cooler, 2006-2011 4 Total UK bottled water: Per capita consumption, 2005-2011 5 UK bottled water packaging, 2011-2011 6 UK bottled water distribution, 2011-2011 7 UK bottled water packaging, 2011
83 85 85 85 86 87 88 88 89
Industry structure 8 Top 25 companies in UK bottled water market, 2010-2011 9 Next 25 companies in UK bottled water market, 2010-2011 10 Top 25 brands in UK bottled water market, 2010-2011 11 Next 25 brands in UK bottled water market, 2010-2011
90 91 92 93
Market segments 12 UK top 10 carbonated water brands, 2010-2011 13 UK top 10 packaged still water brands, 2010-2011 14 UK top 20 mineral water brands, 2010-2011 15 UK top 20 spring water brands, 2010-2011 16 UK top 10 own label water producers, 2010-2011 17 UK top 10 water cooler brands, 2006-2011 18 UK top 10 companies in glass packaging, 2010-2011 19 UK top 10 companies in plastic packaging, 2010-2011
94 94 95 96 97 97 98 98
Production, bottled water consumer, imports and exports 20 Top 10 UK bottled water producers, 2010-2011 21 Top 10 UK produced brands, 2010-2011 22 GB Bottled Water Consumer, 2006-2011 23 UK top 10 water export brands, 2006-2011 24 UK bottled water exports by country, 2006-2011 25 UK bottled water imports by country, 2006-2011 26 UK bottled water import sales by brand, 2006-2011
99 99 100 100 101 101 102
Value 27 UK Bottled Water Value, 2011-2011
103
Ethical Waters 28 UK Ethical Waters, 2008-2011
104
Forecasts 29 UK bottled water consumption by segment, 2011-2016
104
Bottled water market in context 30 UK bottled water in context, 2006-2011 31 International bottled water comparison, 2006-2015
105 105
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APPENDIX 3 - LEADING COMPANY PROFILES AG Barr Plc Angel Springs Holdings Ltd Aqua Direct Ltd Berrington Pure Spring Water Black Mountain Mineral Water Company
107 107 109 111 113 115
Blue Keld Spring Water Brecon Mineral Water Britvic Plc Coca-Cola Enterprises Coca-Cola HBC Northern Ireland
117 119 121 123 125
Cotswold Spring Water Cott Beverages Ltd Danone Waters (UK & Ireland) Ltd Decantae Natural Mineral Water Ecopure Waters Ltd
127 129 131 133 135
Eden Springs UK Fonthill Pure English Spring Water Godlingston Manor Springs Ltd Highland Spring Ltd Hildon Ltd
137 139 141 143 147
Iceni Kingshill Mineral Water Ltd Montgomery Spring Water Company Navson Drinks Neptune (UK)
149 151 153 155 157
Nestlé Waters UK Ltd Prince’s Gate Spring Water Princes Soft Drinks Radnor Hills Mineral Water Company Shepley Spring Ltd
159 162 164 166 168
Swithland Spring Water The Natural Mineral Water Ltd Villa Soft Drinks Ltd Waterbrands Ltd Water Coolers (Scotland) Ltd
170 172 174 176 178
APPENDIX 4 - UK BOTTLED WATER MARKET IN PERSPECTIVE
180
APPENDIX 5 - DEFINITIONS AND SYMBOLS
187
APPENDIX 6 - TARGET GROUP INDEX (TGI)
190
© Zenith International Ltd 2011
Zenith Report: April 2012
UK bottled water
2012
Introduction
This is the twenty-first 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 2012 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 4. 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 Market Analyst Zenith International
Š Zenith International Ltd 2012
1
4: UK PACKAGED WATER VS WATER COOLERS, 2006-11 million litres
2006
2007
2008 Packaged
2009
2010
Water Cooler
2011
5: UK BOTTLED WATER PACKAGING, 2011 % share
Others
NR PET R Polycarb
NR Glass Total consumption: million litres
6: UK BOTTLED WATER DISTRIBUTION, 2011 % share Offices
Others
Horeca; pubs, clubs
Convenience, Impulse
Modern Retail
Total consumption: million litres
7: UK BOTTLED WATER INDUSTRY CONSOLIDATION, 2006-11 Percentage Share
2006
2007
2008 Top 5
2009
2010 Top 10
2011
10: LEADING UK BOTTLED WATER PRODUCERS, 2011 % share
Others
Nos. 7 to 10
Company 1
Company 6 Company 5 Company 2
Company 4 Company 3
Total UK bottled water production: million litres
13: LEADING UK IMPORTED WATERS, 2011 % share Others
Brand 5 Brand 1
Brand 4 Brand 3
Brand 2 Total UK bottled water imports: million litres
18: UK OWN LABEL WATER PRODUCERS, 2011 % share
Others Company 6 Company 5
Company 1
Company 4
Company 3 Company 2 Total UK own label production: million litres
22: LEADING UK COMPANIES IN GLASS, 2011 % share Company 1 Others Company 2
Company 3
Company 4
Nos 6 to 10 Company 5 Total UK packaged water in glass: million litres
23: LEADING UK COMPANIES IN PLASTIC, 2011 % share Others
Company 1
Nos 6 to 10
Company 2
Company 5
Company 4 Company 3 Total UK packaged water in plastic: million litres
28: UK BOTTLED WATER MARKET VALUE, 2006-11 market value (£ mln)
value per litre (£)
1600
0.70
1400 1200 0.68
1000 800 600
0.66
400 200 0
0.64 2006
2007
2008
2009
2010
2011
Zenith Report: April 2012
UK bottled water
2012
APPENDIX 5 - 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 23 rd 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.
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2012
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.
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
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2012
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
VPL
Value per litre
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UK bottled water
Zenith Report: April 2012
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APPENDIX 6 - 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.
Sandy Livingstone - Director +44 (0)20 8433 4090 sandy.livingstone@kantarmedia.com www.tgi-insights.com
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