Zenith Report on UK Water Plus Drinks June 2015
Zenith Report on UK Water Plus Drinks June 2015
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
2015 ZENITH REPORT ON UK WATER PLUS DRINKS CONTENTS UK WATER PLUS MARKET Introduction Brief Summary Research overview
1 2 3
UK WATER PLUS MARKET COMMENTARY 2014 UK water plus market Market overview Economy Weather Media Sector performance
4 5 5 6 6 6
UK water plus distribution UK water plus companies UK water plus groups UK water plus producers Still water plus consumption Sparkling water plus brands Water plus retailer own label Water plus consumer Water plus value Water plus ethical initiatives
8 8 9 10 10 11 11 12 12 12
Ongoing challenges Maintaining consumer interest Selling ‘hydration with flavour’ The sugar debate Retailer perception Stock control & supply Price pressures
14 14 14 14 14 15 15
Water stewardship
16
Legislation
16
Forecast to 2019
17
APPENDIX 1 – WATER PLUS CHARTS Industry structure 1 UK mean temperature, 2009-2014 2 UK sunshine hours, 2012-2014 3 UK rainfall, 2012-2014 4 UK water plus industry consolidation, 2013-2014 2 Top 5 water plus companies, 2013 & 2014 3 Top 5 water plus groups, 2014
19
Market segments 4 UK water plus consumption share, 2009-2014 5 Leading flavoured water brands, 2014 6 Leading functional water brands, 2014
20 21 22 23 24 25 26 27 28
7 8 9
Leading juicy water brands, 2014 UK own label flavoured water consumption share, 2012-2014 UK own label flavoured water producers, 2014
29 30 31
Value 10 UK water plus market value, 2009-2014
32
Forecasts 11 UK water plus market forecast, 2009-2019
33
APPENDIX 2 – WATER PLUS TABLES Market overview 1 UK water plus market, 2008-2014 2 UK water plus types, 2008-2014 3 Total UK water plus: Per capita consumption, 2008-2014 4 UK water plus packaging, 2014 5 UK water plus distribution, 2011-2014
34 35 35 36 37 37
Industry structure 6 Top 15 companies in UK water plus market, 2013-2014 7 Top 20 brands in UK water plus market, 2013-2014 8 Top 20 brands in UK water plus market, 2013 -2014
38 39 40
Market segments 9 UK top 10 flavoured water brands, 2013-2014 10 UK top 5 functional water brands, 2013-2014 11 UK top 3 juicy water brands, 2013-2014 12 UK top 5 own label flavoured water producers, 2013-2014 13 UK own label flavoured water production, 2011-2014
41 42 43 44 45
Production, flavoured water consumer, imports and exports 14 Top 10 UK water plus producers, 2013-2014 15 GB flavoured water, herbal, and premium soft drinks consumer, 2014 16 UK top 5 still water plus brands, 2013-2014 17 UK top 5 sparkling water plus brands, 2013-2014
46 47 48 48
Value 18 UK water plus value, 2011-2014 19 Branded vs private label retail value per litre, 2013-2014
49 50
Bottled water market in context 20 International flavoured water comparison, 2009-2019
51
Forecasts 21 UK water plus consumption by segment, 2014-2019
52
APPENDIX 3 - LEADING COMPANY PROFILES
53
AG Barr Plc Britvic PLC Angel Springs Holdings Ltd Calypso Soft Drinks Coca-Cola Enterprises Coca-Cola HBC Northern Ireland
54 56 58 60 62
Cott Beverages Ltd Danone Waters (UK & Ireland) Ltd
64 66
Highland Spring Ltd Montgomery Spring Water Company Nichols
70 74 78
One Water Prince’s Gate Spring Water Princes Soft Drinks Radnor Hills Mineral Water Company
80 82 85 87
APPENDIX 4 - UK BOTTLED WATER MARKET IN PERSPECTIVE
89
APPENDIX 5 - LEGISLATION
96
APPENDIX 6 - DEFINITIONS AND SYMBOLS
99
APPENDIX 7 - TARGET GROUP INDEX (TGI)
103
UK bottled water drinks
2015
Introduction This is the twenty-fourth Zenith Report on the UK Bottled Water Market. As the UK bottled water market evolves so does our report and this year for, for the first time, we have produced three reports on the sector.
The UK Plain Bottled Water Market Report The UK Water Plus Market Report The UK Bottled Water Drinks Market Report
This report covers the UK Water Plus Market. 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 2015 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 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
4: UK WATER PLUS INDUSTRY CONSOLIDATION, 2013-14 Percentage Share
2013
2014
6: TOP 5 UK WATER PLUS GROUPS, 2014 % share
7: UK WATER PLUS CONSUMPTION SHARE, 2009-14 % share
2009
2010
2011
2012
2013
2014
8: LEADING UK FLAVOURED WATER BRANDS, 2014 % share
9: LEADING UK FUNCTIONAL WATER BRANDS, 2014 % share
10: LEADING UK JUICY WATER BRANDS, 2014 % share
APPENDIX 6 - 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.
© Zenith International Ltd 2015
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