Zenith Report on UK Water Drinks June 2015
Zenith Report on UK Water Drinks June 2015
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2015 ZENITH REPORT ON UK WATER DRINKS 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
5 6 6 8 8 9
UK plain packaged water UK plain bottled water companies UK plain bottled water groups Plain bottled water value
11 12 13 13
Plain vs. Water Plus Forecast to 2019
15 16
UK WATER PLUS MARKET COMMENTARY 2014 UK water plus market Market overview Media Sector performance
17 18 18 18
UK water plus companies UK water plus groups Water plus value
20 21
Forecast to 2019
22
Water Stewardship
23
Legislation
24
APPENDICES APPENDIX 1 – WATER DRINKS CHARTS
25
Water drinks market overview 1 UK mean temperature, 2009-2014 2 UK sunshine hours, 2012-2014 3 UK rainfall, 2012-2014 4 UK water drinks, 2009 – 2014 5 Top 5 UK water drinks groups, 2014 6 Leading UK packaged total water drinks brands, 2014
26 27 28 29 30 31
Plain water market overview 7 UK plain packaged water vs water coolers, 2009-2014
32
Plain water industry structure 8 UK plain bottled water industry consolidation, 2009-2014 9 Top 5 plain bottled water companies, 2009 & 2014 10 Top 5 plain bottled water groups, 2014 11 Leading UK plain bottled water producers, 2014
33 34 35 36
Plain bottled water market in context 12 UK plain vs flavoured, 2009-2014 13 UK still vs sparkling flavoured water, 2009-2014 14 UK water cooler market, 2009-2014 15 GB plain bottled water consumer, 2009-2014
37 38 39 40
Plain bottled water value 16 UK plain bottled water market value, 2009-2014
41
Plain bottled water forecast 17 UK plain bottled water market forecast, 2009-2019
42
Water plus market overview 18 UK water plus market, 2009-2014 19 UK water plus industry consolidation, 2013-2014 20 Top 5 water plus companies, 2013 & 2014 21 Top 5 water plus groups, 2014
43 44 45 46
Water plus value 22 UK water plus market value, 2009-2014
47
Forecasts 23 UK water plus market forecast, 2009-2019
48
APPENDIX 2 – WATER DRINKS TABLES
49
Water drinks market overview 1 UK bottled water drinks market, 2009-2014 2 Top 25 companies in UK bottled water drinks market, 2013-2014 3 Top 25 brands in UK bottled water drinks market, 2013-2014
50 51 52
Plain bottled water market overview 4 UK plain bottled water market, 2008-2014 5 UK plain bottled water types, 2008-2014 6 UK plain bottled water: small pack vs cooler, 2008-2014 7 Total UK plain bottled water: Per capita consumption, 2008-2014
53 53 54 55
Plain bottled water 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
56 57 58 59
Plain bottled water value 12 UK Plain Bottled Water Value, 2012-2014 13 UK plain bottled water value per litre by pack size, 2013-2014
60 60
Plain bottled water forecasts 14 UK plain bottled water consumption by segment, 2014-2019
61
Plain bottled water market in context 15 UK plain bottled water in context, 2009-2014 16 International plain bottled water comparison, 2009-2019
62 62
Water plus market overview 17 UK water plus market, 2008-2014 18 UK water plus types, 2008-2014 19 Total UK water plus: Per capita consumption, 2008-2014
63 63 64
Water plus industry structure 20 Top 15 companies in UK water plus market, 2013-2014 21 Top 20 brands in UK water plus market, 2013-2014 22 Top 20 brands in UK water plus market ranking, 2013 -2014
65 66 67
Water plus value 23 UK water plus value, 2012-2014
68
Water plus market in context 24 International flavoured water comparison, 2009-2019
69
Water plus forecasts 25 UK water plus consumption by segment, 2014-2019
70
APPENDIX 3 - LEADING COMPANY PROFILES
71
AG Barr Plc Angel Springs Holdings Ltd Berrington Pure Spring Water Best Water Technology Black Mountain Mineral Water Company
72 74 76 78 80
Brecon Mineral Water Britvic Plc Calypso Soft Drinks Coca-Cola Enterprises Coca-Cola HBC Northern Ireland
82 84 86 88 90
Cooleraid Cott Beverages Ltd Danone Waters (UK & Ireland) Ltd Decantae Natural Mineral Water Eden Springs UK
92 94 96 100 102
Edgar’s Water Fonthill Pure English Spring Water Harrogate Water Brands Highland Spring Ltd Hildon Ltd
104 106 108 110 114
Iceni Kingshill Mineral Water Ltd Montgomery Spring Water Company Navson Drinks NestlĂŠ Waters UK Ltd
116 118 120 123 125
Nichols One Water Prince’s Gate Spring Water Princes Soft Drinks Radnor Hills Mineral Water Company
128 130 132 134 136
Roxane Shepley Spring Ltd Swithland Spring Water Water Coolers (Scotland) Ltd
138 140 142 144
APPENDIX 4 - UK BOTTLED WATER MARKET IN PERSPECTIVE
147
APPENDIX 5 - LEGISLATION
154
APPENDIX 6 - DEFINITIONS AND SYMBOLS
157
APPENDIX 7 - TARGET GROUP INDEX (TGI)
161
4: UK WATER DRINKS, 2009-14 million litres
2009
2010
2011 Plain
2012 Water Plus
2013
2014
5: TOP 5 UK WATER DRINKS GROUPS, 2014 % share
6: LEADING UK PACKAGED WATER DRINKS BRANDS, 2014 % share
7: UK PLAIN PACKAGED WATER VS WATER COOLERS, 2009-14 million litres
2009
2010
2011
2012
2013
2014
12: UK PLAIN VS FLAVOURED WATER, 2009-14 million litres
17: UK PLAIN BOTTLED WATER MARKET FORECAST, 2009-19 million litres
2009
2010
2011
2012
2013
2014
2015f
2016f
2017f
2018f
2019f
18: UK WATER PLUS, 2009-14 million litres
2009
2010
2011
2012
2013
2014
21: TOP 5 UK WATER PLUS GROUPS, 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