Zenith Insight report
March 2017
UK water plus drinks report An in-depth analysis of the UK flavoured, functional and juicy water sectors
Zenith report on UK water plus drinks March 2017 26th edition
Copyright All copyright in this document is reserved. Liability This document contains information and may contain conclusions and recommendations. Every effort has been made to ensure that the information is accurate and that the opinions expressed are sound. However, Zenith Global Ltd cannot be made liable for any errors or omissions or for any losses or consequential losses resulting from decisions based on the information. Important notice on distribution This report should not be quoted, referred to or transmitted to another party, in whole or in part, with out the prior written consent of Zenith Global Ltd. Should you desire to release a copy of this report to another party for information purposes, we request you and the requesting party to indemnify Zenith Global Ltd from any liability related to the report distribution. Such readers however will not be considered “users� of this report.
Zenith UK water plus drinks report 2017
introduction This is the twenty-sixth 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 2017 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. 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 Global
© Zenith Global Ltd 2017
Zenith UK water plus drinks report 2017
contents brief summary------------------------------------------------------------------------------------------- 7 research overview ------------------------------------------------------------------------------------- 8 1
market overview -------------------------------------------------------------------------------- 9 1.1 economy ------------------------------------------------------------------------------------------ 9 1.2 weather ------------------------------------------------------------------------------------------ 10 1.3 media --------------------------------------------------------------------------------------------- 11
2
sector performance-------------------------------------------------------------------------- 13
3
UK water plus packaging ------------------------------------------------------------------ 17
4
UK water plus distribution ---------------------------------------------------------------- 18
5
UK water plus companies and groups ------------------------------------------------ 20 5.1 UK water plus companies ------------------------------------------------------------------ 20 5.2 UK water plus groups ----------------------------------------------------------------------- 24
6
UK water plus producers ------------------------------------------------------------------ 27
7
UK still water plus brands ----------------------------------------------------------------- 29
8
UK sparkling water plus brands --------------------------------------------------------- 31
9
UK flavoured water brands --------------------------------------------------------------- 33
10
UK functional water brands -------------------------------------------------------------- 35
11
UK juicy water brands ----------------------------------------------------------------------- 37
12
UK water plus retailer own label ------------------------------------------------------- 39
13
UK water plus consumer ------------------------------------------------------------------- 41
14
UK water plus value ------------------------------------------------------------------------- 44
15
ethical waters / ethical initiatives ------------------------------------------------------ 47
16
ongoing challenges -------------------------------------------------------------------------- 47 16.1 maintaining consumer interest ---------------------------------------------------------- 47
Š Zenith Global Ltd 2017
Zenith UK water plus drinks report 2017
16.1.1 16.1.2
key challenges ------------------------------------------------------------------------------ 47 future trends -------------------------------------------------------------------------------- 47
16.2 selling ‘hydration with flavour’ ---------------------------------------------------------- 47 16.2.1 16.2.2
key challenges ------------------------------------------------------------------------------ 47 future trends -------------------------------------------------------------------------------- 47
16.3 the sugar debate------------------------------------------------------------------------------ 47 16.3.1 16.3.2
key challenges ------------------------------------------------------------------------------ 47 future trends -------------------------------------------------------------------------------- 47
16.4 retailer perception --------------------------------------------------------------------------- 47 16.4.1 16.4.2
key challenges ------------------------------------------------------------------------------ 47 future trends -------------------------------------------------------------------------------- 47
16.5 stock control & supply ---------------------------------------------------------------------- 47 16.5.1 16.5.2
key challenges ------------------------------------------------------------------------------ 47 future trends -------------------------------------------------------------------------------- 47
16.6 price pressures -------------------------------------------------------------------------------- 48 16.6.1 16.6.2
key challenges ------------------------------------------------------------------------------ 48 future trends -------------------------------------------------------------------------------- 48
17
water stewardship --------------------------------------------------------------------------- 49
18
legislation --------------------------------------------------------------------------------------- 49
19
forecast to 2021 ------------------------------------------------------------------------------ 50
appendix 1- legislation ---------------------------------------------------------------------------- 54 appendix 2 – definitions and symbols ------------------------------------------------------- 57 definitions ---------------------------------------------------------------------------------------------- 57 Natural Mineral Water ----------------------------------------------------------------------------------- 57 Spring Water-------------------------------------------------------------------------------------------------- 57 Bottled Drinking Water ---------------------------------------------------------------------------------- 57 Flavoured Water -------------------------------------------------------------------------------------------- 58 Functional Water ------------------------------------------------------------------------------------------- 58 Juicy Water ---------------------------------------------------------------------------------------------------- 58 Water Plus ----------------------------------------------------------------------------------------------------- 58 Distribution channels ------------------------------------------------------------------------------------- 58 Retail ------------------------------------------------------------------------------------------------------------- 58 Supermarkets ------------------------------------------------------------------------------------------------- 58 Independent, others --------------------------------------------------------------------------------------- 59 Door-to-door -------------------------------------------------------------------------------------------------- 59
Away From Home------------------------------------------------------------------------------------------- 59 Offices ----------------------------------------------------------------------------------------------------------- 59 Horeca, pubs and clubs ----------------------------------------------------------------------------------- 59 Others ----------------------------------------------------------------------------------------------------------- 59
symbols -------------------------------------------------------------------------------------------------- 60
appendix 3- Target Group Index (TGI) ------------------------------------------------------- 61
© Zenith Global Ltd 2017
Zenith UK water plus drinks report 2017
appendix 4- leading company profiles------------------------------------------------------- 62 AG Barr Plc ------------------------------------------------------------------------------------------------Britvic Plc--------------------------------------------------------------------------------------------------CBL Drinks Ltd -------------------------------------------------------------------------------------------Coca-Cola European Partners ---------------------------------------------------------------------Coca-Cola HBC Northern Ireland -----------------------------------------------------------------Cott Beverages Ltd ------------------------------------------------------------------------------------Danone Waters (UK & Ireland) --------------------------------------------------------------------Get More Vitamin Drinks ----------------------------------------------------------------------------Highland Spring Group -------------------------------------------------------------------------------Innocent ---------------------------------------------------------------------------------------------------Montgomery Natural Spring Water Company -----------------------------------------------Nichols Plc ------------------------------------------------------------------------------------------------One Water ------------------------------------------------------------------------------------------------Princes Gate Spring Water --------------------------------------------------------------------------Princes Soft Drinks ------------------------------------------------------------------------------------Radnor Hills Mineral Water Company Ltd -----------------------------------------------------Talking Rain Beverage Company -----------------------------------------------------------------Trederwen Springs--------------------------------------------------------------------------------------
Š Zenith Global Ltd 2017
Zenith UK water plus drinks report 2017
tables table table table table table table table table table table table table table table table table
2.1 2.2 3.1 4.1 5.1 5.2 5.3 6.1 7.1 8.1 9.1 10.1 11.1 12.1 12.2 13.1
table table table table table
13.2 13.3 14.1 14.2 19.1
Š Zenith Global Ltd 2017
UK water plus market, 2011-16 -------------------------------------------------- 14 UK water plus types, 2011-16 ---------------------------------------------------- 15 UK water plus packaging, 2014-16 --------------------------------------------- 17 UK water plus distribution, 2014-2016---------------------------------------- 19 top 15 companies in UK water plus market, 2015-2016 ---------------- 21 top 20 brands in UK water plus market, 2015-2016 ---------------------- 25 top 20 brands in UK water plus market ranking, 2015-2016 ---------- 26 top 10 UK water plus producers, 2015-2016 -------------------------------- 28 top 5 UK still water plus brands, 2015-2016 -------------------------------- 30 UK top 5 sparkling water brands, 2015-2016 ------------------------------- 32 UK top 10 flavoured water brands, 2015-2016 ---------------------------- 34 UK top 5 functional water brands, 2015-2016 ----------------------------- 36 UK top 5 juicy water brands, 2015-2016 -------------------------------------- 38 UK own label flavoured water production, 2014-2016------------------ 39 UK top 5 own label flavoured water producers, 2014-2016 ---------- 40 GB flavoured water, herbal and premium soft drinks consumer, 2014-2016 ------------------------------------------------------------------------------- 41 UK water plus per capita consumption, 2011-2016 ---------------------- 42 international flavoured water comparison, 2011-2021f ---------------- 43 UK water plus value, 2014-2016 ------------------------------------------------- 44 UK branded vs private label retail value per litre, 2015-2016 -------- 46 UK forecast water plus consumption by segment, 2016-2021f ------ 52
Zenith UK water plus drinks report 2017
figures figure 1.1 figure 1.2 figure 2.1 figure 2.2 figure 3.1 figure 4.1 figure 5.1 figure 5.2 figure 5.3 figure 6.1 figure 7.1 figure 8.1 figure 9.1 figure 10.1 figure 11.1 figure 12.1 figure 12.2 figure 13.1 figure 14.1 figure 19.1
Š Zenith Global Ltd 2017
UK mean temperature, 2011-16 ------------------------------------------------- 11 UK sunshine hours, 2014-16 ------------------------------------------------------ 11 UK water plus market, 2011-16 -------------------------------------------------- 15 UK water plus consumption share, 2011-16 -------------------------------- 16 UK water plus packaging, 2016 -------------------------------------------------- 17 UK water plus distribution, 2016 ------------------------------------------------ 19 UK water plus industry consolidation, 2014-2016 ------------------------ 22 top 5 water plus companies, 2014 and 2016 -------------------------------- 22 top UK water plus companies, 2016 ------------------------------------------- 23 UK water plus producers, 2016 -------------------------------------------------- 28 UK still water plus brands, 2016 ------------------------------------------------- 30 UK sparkling water brands, 2016 ------------------------------------------------ 32 leading UK flavoured water brands, 2016 ----------------------------------- 34 leading UK functional water brands, 2016----------------------------------- 36 leading UK juicy water brands, 2016 ------------------------------------------- 38 UK own label flavoured water consumption share, 2014-2016 ------ 40 UK own label flavoured water producers, 2016 --------------------------- 40 GB flavoured water, herbal and premium soft drinks consumer, 2011-2016 ------------------------------------------------------------------------------- 42 UK water plus market value, 2014-2016-------------------------------------- 46 UK water plus market forecast, 2011-2021f -------------------------------- 52
Zenith UK water plus drinks report 2017
UK water plus drinks report brief summary 1. Commentary 2. Commentary 3. Commentary
Š Zenith Global Ltd 2017
1 7 Page 4 / 0 3 / 2 0 1 7
Zenith UK water plus drinks report 2017
research overview
1 8 Page 4 / 0 3 / 2 0 1 7
In compiling its research, Zenith Globall 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).
© Zenith Global Ltd 2017
Zenith UK water plus drinks report 2017
1
1.1
market overview
Commentary
Commentary
Commentary
economy
Commentary
Commentary
Commentary
© Zenith Global Ltd 2017
1 9 Page 4 / 0 3 / 2 0 1 7
Zenith UK water plus drinks report 2017
1.2
weather
Commentary
Commentary
Commentary
© Zenith Global Ltd 2017
1 10 Page 4 / 0 3 / 2 0 1 7
1 11 Page 4 / 0 3 / 2 0 1 7
Zenith UK water plus drinks report 2017
figure 1.1
UK mean temperature, 2011-16
5.5 5 5
5
5
5
5
5
2011
2012
2013
2014
2015
2016
degrees centigrade
4.5 4 3.5 3 2.5 2 1.5 1 0.5 0
figure 1.2
UK sunshine hours, 2014-16
60
sunshine hours
50 40 30 20 10 0 Jan
Feb
Mar
Apr
May
Jun
2014
figure 1.3
Jul
2015
Aug
Sep
Oct
Nov
2016
UK rainfall, 2014-16
60 50
rainfall
40 30 20 10 0 Jan
Feb
Mar
Apr 2014
source: Met Office
Š Zenith Global Ltd 2017
May
Jun 2015
Jul
Aug 2016
Sep
Oct
Nov
Dec
Dec
Zenith UK water plus drinks report 2017
1.3
media
Commentary
Commentary
Commentary
© Zenith Global Ltd 2017
1 12 Page 4 / 0 3 / 2 0 1 7
Zenith UK water plus drinks report 2017
2
sector performance
Commentary
Commentary
Commentary
© Zenith Global Ltd 2017
1 13 Page 4 / 0 3 / 2 0 1 7
Zenith UK water plus drinks report 2017
table 2.1
Million litres Production Imports Consumption Production % change Imports as % consumption Consumption % change Per Capita Consumption source: Zenith Global
Š Zenith Global Ltd 2017
UK water plus market, 2011-16
2011
2012
2013
2014
2015
1 14 Page 4 / 0 3 / 2016 2 0 1 7
Zenith UK water plus drinks report 2017
table 2.2
Million litres Total market
UK water plus types, 2011-16
2011
2012
2013
2014
2015
Sparkling Still Sparkling % share Still % share Flavoured Functional Juicy Flavoured % share Functional % share Juicy % share Flavoured % change Functional % change Juicy % change Total market % change source: Zenith Global
figure 2.1
UK water plus market, 2011-16
35 30
million litres
25
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
2011
2012
2013
2014
2015
2016
10
20 15 10 5 0 Flavoured
source: Zenith Global
Š Zenith Global Ltd 2017
Functional
Juicy
1 15 Page 4 / 0 3 / 2016 2 0 1 7
1 16 Page 4 / 0 3 / 2 0 1 7
Zenith UK water plus drinks report 2017
figure 2.2
UK water plus consumption share, 2011-16
60
50.0
50.0
50.0
50.0
50.0
50.0
50
% share
40
30.0
30.0
30.0
30.0
30.0
30.0
30
20.0
20.0
20.0
20.0
20.0
20.0
2011
2012
2013
2014
2015
2016
20
10
0 Flavoured source: Zenith Global
Š Zenith Global Ltd 2017
Functional
Juicy
1 17 Page 4 / 0 3 / 2 0 1 7
Zenith UK water plus drinks report 2017
3
UK water plus packaging
Commentary
Commentary
Commentary
table 3.1
UK water plus packaging, 2014-16
Million litres NR PET Other Total market
2014
2015
2016
% share NR PET Other
2014
2015
2016
source: Zenith Global
figure 3.1
UK water plus packaging, 2016
NR PET 50%
50%
Others
total consumption: X million litres
© Zenith Global Ltd 2017
Zenith UK water plus drinks report 2017
4
UK water plus distribution
Commentary
Commentary
Commentary
© Zenith Global Ltd 2017
1 18 Page 4 / 0 3 / 2 0 1 7
Zenith UK water plus drinks report 2017
table 4.1
UK water plus distribution, 2014-2016
2014 volume
Million litres
2014 % share
2015 volume
2015 % share
2016 volume
Modern retail (includes discounters) Convenience / Impulse Retail Horeca; pubs, clubs Others Away from home Total market source: Zenith Global
figure 4.1
25%
UK water plus distribution, 2016
25%
Modern retail Convenience Horeca 25%
25%
total consumption: X million litres
Š Zenith Global Ltd 2017
Others
%
1 19 Page 4 / 0 3 / 20162 share01 7
Zenith UK water plus drinks report 2017
5
UK water plus companies and groups
5.1
UK water plus companies
Commentary
Commentary
Commentary
© Zenith Global Ltd 2017
1 20 Page 4 / 0 3 / 2 0 1 7
Zenith UK water plus drinks report 2017
table 5.1
Million litres Company
Top 15 Others Total market Top 5 Top 10 source: Zenith Global
Š Zenith Global Ltd 2017
top 15 companies in UK water plus market, 2015-2016
2015 volume
2015 % share
2016 volume
2016 % share
2016 rank
1 21 Page 4 / 0 3 / 2 0 1 7
1 22 Page 4 / 0 3 / 2 0 1 7
Zenith UK water plus drinks report 2017
figure 5.1
UK water plus industry consolidation, 2014-2016
12
10
10.0
10.0
10.0
% share
8
6
5.0
4
5.0
5.0
2
0 2014
2015 Top 5
2016
Top 10
source: Zenith Global
figure 5.2
top 5 water plus companies, 2014 and 2016
10.0
Company
5.0 10.0
Company
5.0 10.0
Company
5.0 10.0
Company
5.0 10.0
Company
5.0 0
2
4
6 2016
source: Zenith Global
Š Zenith Global Ltd 2017
8 2014
10
12 million litres
Zenith UK water plus drinks report 2017
figure 5.3
top UK water plus companies, 2016
10%
Company 10%
50%
10%
Company Company Company
10% 10%
total consumption: X million litres
Š Zenith Global Ltd 2017
Company Company
1 23 Page 4 / 0 3 / 2 0 1 7
Zenith UK water plus drinks report 2017
5.2
UK water plus groups
Commentary
Commentary
Commentary
© Zenith Global Ltd 2017
1 24 Page 4 / 0 3 / 2 0 1 7
Zenith UK water plus drinks report 2017
table 5.2
Million litres Brand
Top 20 Others (3) Total market Top 5 Top 10 source: Zenith Global
Š Zenith Global Ltd 2017
top 20 brands in UK water plus market, 2015-2016
2015 volume
2015 % share
2016 volume
2016 % share
Brand rank
1 25 Page 4 / 0 3 / 2 0 1 7
Zenith UK water plus drinks report 2017
table 5.3
Million litres Brand
source: Zenith Global
Š Zenith Global Ltd 2017
top 20 brands in UK water plus market ranking, 2015-2016
Flavoured
2016 ranking Functional Juicy
1 26 Page 4 / 0 3 / 2 0 Total 1 7
Zenith UK water plus drinks report 2017
6
UK water plus producers
Commentary
Commentary
Commentary
© Zenith Global Ltd 2017
1 27 Page 4 / 0 3 / 2 0 1 7
Zenith UK water plus drinks report 2017
table 6.1
top 10 UK water plus producers, 2015-2016
2015 volume
Million litres
2015 % share
2016 volume
2016 % share
Company
Top 10 Others Total UK production source: Zenith Global
figure 6.1
UK water plus producers, 2016
10% 30%
Company
Company
Company
Company
Company
Next top 5
10%
10%
10% Others
20% 10%
total UK water plus production: X million litres
Š Zenith Global Ltd 2017
1 28 Page 4 / 0 3 / 2 0 1 7
Zenith UK water plus drinks report 2017
7
UK still water plus brands
Commentary
Commentary
Commentary
© Zenith Global Ltd 2017
1 29 Page 4 / 0 3 / 2 0 1 7
Zenith UK water plus drinks report 2017
table 7.1
top 5 UK still water plus brands, 2015-2016
2015 volume
Million litres
2015 % share
2016 volume
2016 % share
Brand
Top 5 Others (1) Total still water (1) Includes retailer own label numbers source: Zenith Global
figure 7.1
UK still water plus brands, 2016
10% 10%
50%
10%
10%
Brand
Brand
Brand
Brand
Brand
Others
10%
total UK still water plus consumption: X million litres
Š Zenith Global Ltd 2017
1 30 Page 4 / 0 3 / 2 0 1 7
Zenith UK water plus drinks report 2017
8
UK sparkling water plus brands
Commentary
Commentary
Commentary
© Zenith Global Ltd 2017
1 31 Page 4 / 0 3 / 2 0 1 7
Zenith UK water plus drinks report 2017
table 8.1
UK top 5 sparkling water brands, 2015-2016
2015 volume
Million litres
2015 % share
2016 volume
2016 % share
Brand
Top 5 Others (1) Total sparkling water (1) Includes retailer own label numbers source: Zenith Global
figure 8.1
UK sparkling water brands, 2016
10% 10%
10%
50%
10%
Brand
Brand
Brand
Brand
Brand
Others
10%
total UK sparkling water plus consumption: X million litres
Š Zenith Global Ltd 2017
1 32 Page 4 / 0 3 / 2 0 1 7
Zenith UK water plus drinks report 2017
9
UK flavoured water brands
Commentary
Commentary
Commentary
© Zenith Global Ltd 2017
1 33 Page 4 / 0 3 / 2 0 1 7
Zenith UK water plus drinks report 2017
table 9.1
UK top 10 flavoured water brands, 2015-2016
2015 volume
Million litres
2015 % share
2016 volume
2016 % share
Brand
Top 10 Others (1) Total flavoured water (1) Includes retailer own labels source: Zenith Global
figure 9.1
leading UK flavoured water brands, 2016
10% 10%
50%
10%
10%
Brand
Brand
Brand
Brand
Brand
Others
10%
total UK flavoured water consumption: X million litres
Š Zenith Global Ltd 2017
% change
1 34 Page 4 / 0 3 / 2 0 1 7
Zenith UK water plus drinks report 2017
10
UK functional water brands
Commentary
Commentary
Commentary
© Zenith Global Ltd 2017
1 35 Page 4 / 0 3 / 2 0 1 7
Zenith UK water plus drinks report 2017
table 10.1
UK top 5 functional water brands, 2015-2016
2015 volume
Million litres
2015 % share
2016 volume
2016 % share
Brand
Top 5 Others Total functional water source: Zenith Global
figure 10.1
leading UK functional water brands, 2016
10% 10%
50%
10%
10%
Brand
Brand
Brand
Brand
Brand
Others
10.0%
total UK functional water consumption: X million litres
Š Zenith Global Ltd 2017
% change
1 36 Page 4 / 0 3 / 2 0 1 7
Zenith UK water plus drinks report 2017
11
UK juicy water brands
Commentary
Commentary
Commentary
© Zenith Global Ltd 2017
1 37 Page 4 / 0 3 / 2 0 1 7
Zenith UK water plus drinks report 2017
table 11.1
Million litres
UK top 5 juicy water brands, 2015-2016
2015 volume
2015 % share
2016 volume
2016 % share
Brand
Top 5 Others Total juicy water source: Zenith Global figure 11.1
leading UK juicy water brands, 2016
10% 10%
50%
10%
10%
Brand
Brand
Brand
Brand
Brand
Others
10%
total UK juicy water consumption: X million litres
Š Zenith Global Ltd 2017
% change
1 38 Page 4 / 0 3 / 2 0 1 7
1 39 Page 4 / 0 3 / 2 0 1 7
Zenith UK water plus drinks report 2017
12
UK water plus retailer own label
Commentary
Commentary
Commentary
table 12.1
UK own label flavoured water production, 2014-2016
Million litres Total market Flavoured water (1) Sparkling flavoured water Still flavoured water Flavoured water as a % of total market Sparkling flavoured % share Still flavoured % share Total own label Sparkling own label Still own label Own label as a % of flavoured water Own label sparkling flavoured % share Own label still flavoured % share (1) Excludes functional and juicy waters source: Zenith Global
© Zenith Global Ltd 2017
2014
2015
2016
1 40 Page 4 / 0 3 / 2 0 1 7
Zenith UK water plus drinks report 2017
figure 12.1
UK own label flavoured water consumption share, 2014-2016
60
% share of flavoured water
50 50.0
50.0
50.0
2014
2015
2016
40
30
20
10
0
source: Zenith Global
table 12.2
UK top 5 own label flavoured water producers, 2014-2016
Million litres
2015 volume
2015 % share
2016 volume
2016 % share
% change
Company
Others Total own label water source: Zenith Global
figure 12.2
UK own label flavoured water producers, 2016
10% 10%
50%
10%
10%
Company
Company
Company
Company
Company
Others
10%
total UK own label flavoured water production: X million litres
Š Zenith Global Ltd 2017
1 41 Page 4 / 0 3 / 2 0 1 7
Zenith UK water plus drinks report 2017
13
UK water plus consumer
Commentary
Commentary
Commentary
table 13.1
GB flavoured water, herbal and premium soft drinks consumer, 2014-2016
% of GB population Consumers
2014
Regular' 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 consumers (100 = average) Male Female (1) For fieldwork period July 2015 - June 2016 source: Target Group Index (TGI) - GB adults aged 15 and above
© Zenith Global Ltd 2017
2015
2016 (1)
Zenith UK water plus drinks report 2017
figure 13.1
GB flavoured water, herbal and premium soft drinks consumer, 2011-2016 12
10
% of GB population
10
10
10
8
6
4
5
5
5
2
0 2014
2015
2016
source: Target Group Index (TGI) - GB adults aged 15 and above
table 13.2
Litres Per capita consumption Sparkling Still
UK water plus per capita consumption, 2011-2016
2011
2012
2013
2014
2015
2016
2011
2012
2013
2014
2015
2016
Per capita consumption Flavoured Functional Juicy
% change Per capita consumption Sparkling Still Per capita consumption Flavoured Functional Juicy source: Zenith Global
Š Zenith Global Ltd 2017
1 42 Page 4 / 0 3 / 2 0 1 7
Zenith UK water plus drinks report 2017
table 13.3
Litres per person
international flavoured water comparison, 2011-2021f
2011
2016
2021f
United States France Germany Italy Spain United Kingdom West Europe Poland East Europe China Asia Pacific Global (1) (1) Includes only flavoured and flavoured functional waters source: Zenith Global - globaldrinks.com
Š Zenith Global Ltd 2017
CAGR (11-16) (16-21f)
1 43 Page 4 / 0 3 / 2 0 1 7
Zenith UK water plus drinks report 2017
14
UK water plus value
Commentary
Commentary
Commentary
© Zenith Global Ltd 2017
1 44 Page 4 / 0 3 / 2 0 1 7
Zenith UK water plus drinks report 2017
table 14.1
UK water plus value, 2014-2016
2014 Volume
Flavoured water % increase Modern retail (inc discounters) Convenience / Impulse, others Horeca; pubs, clubs Functional water % increase Modern retail (inc discounters) Convenience / Impulse, others Horeca; pubs, clubs Juicy water % increase Modern retail (inc discounters) Convenience / Impulse, others Horeca; pubs, clubs - numbers may vary due to rounding source: Zenith Global
© Zenith Global Ltd 2017
£ VPL
2015 £m Value
Volume
£ VPL
2015 £m Value
Volume
£ VPL
1 45 Page 4 / 0 3 / 2 0 £m 1 Value 7
1 46 Page 4 / 0 3 / 2 0 6 1 7
Zenith UK water plus drinks report 2017
figure 14.1
UK water plus market value, 2014-2016
12
10
5 10
10
10
8
4
6
3
4
2
2
1
0
0 market value (£ mln)
value per litre (£)
source: Zenith Global
table 14.2
UK branded vs private label retail value per litre, 2015-2016
2015 Branded Private label Retail average Includes only flavoured and flavoured functional waters source: Zenith Global
© Zenith Global Ltd 2017
2016
Zenith UK water plus drinks report 2017
15
ethical waters / ethical initiatives
Commentary
Commentary
16
ongoing challenges
16.1
maintaining consumer interest
16.1.1 key challenges
Commentary
Commentary
16.1.2 future trends
16.2
Commentary
Commentary
selling ‘hydration with flavour’
16.2.1 key challenges 16.2.2 future trends
16.3
the sugar debate
16.3.1 key challenges 16.3.2 future trends
16.4
retailer perception
16.4.1 key challenges 16.4.2 future trends
16.5
stock control & supply
16.5.1 key challenges 16.5.2 future trends
© Zenith Global Ltd 2017
1 47 Page 4 / 0 3 / 2 0 1 7
Zenith UK water plus drinks report 2017
16.6
price pressures
16.6.1 key challenges 16.6.2 future trends
Š Zenith Global Ltd 2017
1 48 Page 4 / 0 3 / 2 0 1 7
Zenith UK water plus drinks report 2017
17
water stewardship
Commentary
Commentary
© Zenith Global Ltd 2017
1 49 Page 4 / 0 3 / 2 0 1 7
Zenith UK water plus drinks report 2017
18
legislation
Commentary
Commentary
© Zenith Global Ltd 2017
1 50 Page 4 / 0 3 / 2 0 1 7
Zenith UK water plus drinks report 2017
19
forecast to 2021
Commentary
Commentary
Commentary
© Zenith Global Ltd 2017
1 51 Page 4 / 0 3 / 2 0 1 7
1 52 Page 4 / 0 3 / 2 0 1 7
Zenith UK water plus drinks report 2017
figure 19.1
UK water plus market forecast, 2011-2021f
60
50 50
50
50
50
50
50
50
50
50
50
50
2011
2012
2013
2014
2015
2016
2017f
2018f
2019f
2020f
2021f
million litres
40
30
20
10
0
source: Zenith Global table 19.1
Million litres Total market Sparkling Still Sparkling % share Still % share Flavoured Functional Juicy Flavoured % share Functional % share Juicy % share Flavoured % change Functional % change Juicy % change Total market % change source: Zenith Global
Š Zenith Global Ltd 2017
UK forecast water plus consumption by segment, 2016-2021f
2016
2017f
2018f
2019f
2020f
2021f
Zenith UK water plus drinks report 2017
appendix
Š Zenith Global Ltd 2017
1 53 Page 4 / 0 3 / 2 0 1 7
Zenith UK water plus drinks report 2017
appendix 2 – definitions and symbols
1 57 Page 4 / 0 3 / 2 0 1 7
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 Global Ltd 2017
1 58 Page 4 / 0 3 These definitions are a simple description of the requirements of the UK bottled water regulations. / 2 For a detailed definition please consult the Natural Mineral Water, Spring Water and Bottled Drinking 0 Water Regulations, 1999 and any subsequent amendments. For a detailed review of the implications 1 of the regulations, consult Zenith’s ‘Plain Language Guide to the UK Bottled Water Regulations’. 7 Zenith UK water plus drinks report 2017
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
© Zenith Global Ltd 2017
Zenith UK water plus drinks report 2017
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
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 Global Ltd 2017
1 59 Page 4 / 0 3 / 2 0 1 Metro) 7
Zenith UK water plus drinks report 2017
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 Global Ltd 2017
1 60 Page 4 / 0 3 / 2 0 1 7
Zenith UK water plus drinks report 2017
appendix 4- leading company profiles AG Barr Plc Britvic Plc CBL Drinks Ltd Coca-Cola European Partners Coca-Cola HBC Northern Ireland Cott Beverages Ltd Danone Waters (UK & Ireland) Get More Vitamin Drinks Highland Spring Group Innocent Montgomery Natural Spring Water Company Nichols Plc One Water Princes Gate Spring Water Princes Soft Drinks Radnor Hills Mineral Water Company Ltd Talking Rain Beverage Company Trederwen Springs
Š Zenith Global Ltd 2017
1 62 Page 4 / 0 3 / 2 0 1 7
Zenith UK water plus drinks report 2017
COMPANY Address: Tel: Website:
Fax: Email:
Company Structure Ownership: Senior management:
Employees: Subsiduaries: Related activities:
Non-related activities:
Company Finances ÂŁ Million, year to Sales Profit before tax
Water Production Location: Source: Lines: Investment:
Advertising
Commentary
Š Zenith Global Ltd 2017
2010
2011
2012
2013
2014
2015
2016
Zenith UK water plus drinks report 2017
COMPANY - Water Plus Product Range Brand name Brand A
Water type Still
Pack type
Spring
NR PET
Sizes available (litre) 0.5 0.75 (SC)
0.5 1.5
0.33
0.75
Glass
x10
Production & Sales Volume (Water Plus) Million litres Production Exports UK Sales - still - sparkling Brand A - still - sparkling
2010
2011
2012
2013
2014
2015
2016
Packaging Split NR GLASS 0.33 0.75 NR PET 0.5 0.75 1
10.0% 5.0% 5.0% 90.0% 50.0% 20.0% 20.0%
Channel Split (by brand / type) Brand Brand
Š Zenith Global Ltd 2017
Retail 100.0%
OOH 0.0%
HOD 0.0%
Total 100%
key areas of activity Accurate, up to date global food and drinks market research and forecasting to support market strategy. Expert analysis of industry, competitors, consumers, trends, forecasts and latest product innovations. Off the shelf reports, bespoke reports, online databases.
Advice on overall strategy, business planning, entering new markets, finding contract manufacturers and distributors and having your product listed with retailers. Also, transaction services including sale mandates, target searches, valuation and due diligence.
Turnkey design and build of production facilities, site searches, manufacturing efficiency improvements, cost reduction, quality and food safety. Expertise in finding a water source, assessing water quality and volume, drilling and testing boreholes, obtaining a licence and reducing water use. Beverage formulation design and development, ingredient innovation, packaging design and advice on labels.
Global and regional industry conferences, providing detailed market insights and exclusive networking opportunities with key executives from the global food and drink sectors. Daily, weekly, bespoke news services to stay abreast of fast moving changes.
zenithglobal.com
+44 (0)1225 327900