Zenith Report on UK Plain Bottled Water June 2015 24th Edition
Zenith Report on UK Plain Bottled Water June 2015 24th Edition
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 PLAIN BOTTLED WATER CONTENTS Introduction Brief Summary Research overview
1 2 4
UK PLAIN WATER MARKET COMMENTARY 2014 UK 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 water plus UK water coolers Plain bottled water consumer Plain bottled water value Plan ethical waters / ethical initiatives
11 12 12 13 14 14 16 16 17 18 18 19 20 20 21 22 22 23 24 25 26
Ongoing challenges Environmental Carbon footprint Water footprint Lightweighting Recycling Tap water Industry consolidation Portfolio diversity Consumer confidence and education Retailer perception Stock control & supply
29 29 30 30 31 31 31 32 32 32 33 33
Price pressures
34
Water stewardship
35
Legislation
35
UK plain market forecast, 2009-2019
36
APPENDICES APPENDIX 1 – PLAIN WATER CHARTS
38
Market overview 1 UK mean temperature, 2009-2014 2 UK sunshine hours, 2012-2014 3 UK rainfall, 2012-2014 4 UK plain packaged water vs water coolers, 2009-2014 5 UK plain bottled water packaging, 2014 6 UK plain bottled water distribution, 2014
39 40 41 42 43 44
Industry structure 7 UK plain bottled water industry consolidation, 2009-2014 8 Top 5 plain bottled water companies, 2009 & 2014 9 Top 5 plain bottled water groups, 2014 10 Leading UK plain bottled water producers, 2014
45 46 47 48
Imports and exports 11 UK plain bottled water exports, 2009-2014 12 UK plain bottled water imports, 2009-2014 13 Leading UK imported plain waters, 2014
49 50 51
Market segments 14 UK still plain water consumption share, 2009-2014 15 Leading UK packaged still plain water brands, 2014 16 Leading UK packaged sparkling plain water brands, 2014 17 UK own label plain water consumption share, 2009-2014 18 UK own label plain water producers, 2014 19 UK natural mineral water consumption share, 2009-2014 20 Leading UK plain mineral water brands, 2014 21 Leading UK plain spring water brands, 2014 22 Leading UK companies in glass, 2014 23 Leading UK companies in plastic, 2014
52 53 54 55 56 57 58 59 60 61
Bottled water market in context 24 UK plain vs flavoured water, 2009-2014 25 UK still vs sparkling flavoured water, 2009-2014 26 UK water cooler market, 2009-2014 27 GB bottled water consumer, 2009-2014
62 63 64 65
Value 28 UK plain bottled water market value, 2009-2014
66
Forecasts 29 UK plain bottled water market forecast, 2009-2019
67
APPENDIX 2 – PLAIN WATER TABLES
68
Market overview 1 UK plain bottled water market, 2006-2014 2 UK plain bottled water types, 2006-2014 3 UK plain bottled water: small pack vs cooler, 2006-2014 4 Total UK plain bottled water: Per capita consumption, 2006-2014 5 UK plain bottled water packaging, 2011-2014 6 UK plain bottled water distribution, 2011-2014 7 UK plain bottled water packaging, 2014
69 69 70 71 72 72 73
Industry structure 8 Top 25 companies in UK plain bottled water market, 2013-2014 9 Next 25 companies in UK plain bottled water market, 2013-2014 10 Top 25 brands in UK plain bottled water market, 2013-2014 11 Next 25 brands in UK plain bottled water market, 2013-2014
74 75 76 77
Market segments 12 UK top 10 plain sparkling water brands, 2013-2014 13 UK top 10 plain packaged still water brands, 2013-2014 14 UK top 20 plain mineral water brands, 2013-2014 15 UK top 20 plain spring water brands, 2013-2014 16 UK top 10 own label plain water producers, 2013-2014 17 UK top 10 water cooler companies, 2009-2014 18 UK top 10 companies in glass packaging, 2013-2014 19 UK top 10 companies in plastic packaging, 2013-2014
78 79 80 81 82 82 83 83
Production, bottled water consumer, imports and exports 20 Top 10 UK plain bottled water producers, 2013-2014 21 Top 10 UK plain produced brands, 2013-2014 22 GB plain Bottled Water Consumer, 2009-2014 23 UK top 10 plain water export brands, 2009-2014 24 UK plain bottled water exports by country, 2009-2014 25 UK plain bottled water imports by country, 2009-2014 26 UK plain bottled water import sales by brand, 2009-2014
84 84 85 85 86 86 87
Value 27 UK Plain Bottled Water Value, 2011-2014 28 UK plain bottled water value per litre by pack size, 2013-2014 29 P plain premium vs private label value per litre, 2013-2014 30 International premium vs private label value per litre comparison, 2014
88 88 89 89
Forecasts 31 UK plain bottled water consumption by segment, 2014-2019
90
Bottled water market in context
32 UK plain bottled water in context, 2009-2014 33 International plain bottled water comparison, 2009-2019
91 91
APPENDIX 3 - LEADING COMPANY PROFILES
92
AG Barr Plc Angel Springs Holdings Ltd Berrington Pure Spring Water Best Water Technology Black Mountain Mineral Water Company
93 95 97 99 101
Brecon Mineral Water Britvic Plc Calypso Soft Drinks Coca-Cola Enterprises Coca-Cola HBC Northern Ireland
103 105 107 109 111
Cooleraid Cott Beverages Ltd Danone Waters (UK & Ireland) Ltd Decantae Natural Mineral Water Eden Springs UK
113 115 117 121 123
Edgar’s Water Fonthill Pure English Spring Water Harrogate Water Brands Highland Spring Ltd Hildon Ltd
125 127 129 131 135
Iceni Kingshill Mineral Water Ltd Montgomery Spring Water Company Navson Drinks Nestlé Waters UK Ltd
137 139 141 144 146
Nichols One Water Prince’s Gate Spring Water Princes Soft Drinks Radnor Hills Mineral Water Company
149 151 153 156 158
Roxane Shepley Spring Ltd Swithland Spring Water Water Coolers (Scotland) Ltd
160 162 164 166
APPENDIX 4 - UK BOTTLED WATER MARKET IN PERSPECTIVE
168
APPENDIX 5 - LEGISLATION
175
APPENDIX 6 - DEFINITIONS AND SYMBOLS
178
APPENDIX 7 - TARGET GROUP INDEX (TGI)
182
UK plain 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 Plain Bottled Water 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 PLAIN PACKAGED WATER VS WATER COOLERS, 2009-14 million litres
2009
2010
2011 Packaged
2012
2013
Water Cooler
2014
5: UK PLAIN BOTTLED WATER PACKAGING, 2014 % share
6: UK PLAIN BOTTLED WATER DISTRIBUTION, 2014 % share
7: UK PLAIN BOTTLED WATER INDUSTRY CONSOLIDATION, 2009-14 Percentage Share
2009
2010
2011
2012
2013
2014
10: LEADING PLAIN UK BOTTLED WATER PRODUCERS, 2014 % share
13: LEADING PLAIN UK IMPORTED WATERS, 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.
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 Water Plus Water plus includes flavoured waters, functional waters and juicy waters as defined above.
Distribution channels