zenithinternational nithinternational
March 2016
UK Plain Bottled Water 2016 th
25 Annual Report
Zenith Report on UK Plain Bottled Water March 2016 25th 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
UK plain bottled water report
2016
Introduction This is the twenty-fifth 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 2016 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 2. 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
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UK plain bottled water report
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Contents Brief Summary -------------------------------------------------------------------------------------------------- 1 Research Overview --------------------------------------------------------------------------------------------- 1 2015 UK Plain Bottled Water Market -------------------------------------------------------------------- 3 1.
Market Overview------------------------------------------------------------------------------------------ 3
1.1
Economy ---------------------------------------------------------------------------------------------------------------------------- 3
1.2
Weather ----------------------------------------------------------------------------------------------------------------------------- 3
1.3
Media -------------------------------------------------------------------------------------------------------------------------------- 4
2.
Sector Performance-------------------------------------------------------------------------------------- 5 Table 1: UK plain bottled water market, 2009-2015 ---------------------------------------------------------------------------- 5 Table 2: Total UK plain bottled water types, 2009-2015 ---------------------------------------------------------------------- 6
3. 4.
UK plain packaged water ------------------------------------------------------------------------------- 7 UK plain bottled water packaging ------------------------------------------------------------------- 7 Table 3: UK plain bottled water packaging, 2013-2015 ------------------------------------------------------------------------ 8 Table 4: UK plain bottled water packaging, 2015 -------------------------------------------------------------------------------- 9
5.
UK plain bottled water distribution --------------------------------------------------------------- 10 Table 5: UK plain bottled water distribution, 2013-2015 --------------------------------------------------------------------- 11
6.
UK plain bottled water companies and brands ------------------------------------------------ 12 Table 6: Top 25 companies in UK bottled water market, 2014-2015 ----------------------------------------------------- 13 Table 7: Next 25 companies in UK bottled water market, 2014-2015 ---------------------------------------------------- 14 Table 8: Top 25 brands in UK bottled water market, 2014-2015 ----------------------------------------------------------- 17 Table 9: Next 25 brands in the UK plain bottled water market ------------------------------------------------------------- 18
7.
UK plain bottled water producers ----------------------------------------------------------------- 19 Table 10: Top 10 UK domestic plain bottled water producers, 2014-2015 ---------------------------------------------- 19 Table 11: Top 10 UK plain produced brands, 2014-2015 --------------------------------------------------------------------- 20
8.
Plain bottled water exports -------------------------------------------------------------------------- 21 Table 12: UK plain bottled water exports by country, 2010-2015 --------------------------------------------------------- 22 Table 13: Top 10 plain water export brands, 2010-2015 --------------------------------------------------------------------- 23
9.
Plain bottled water imports ------------------------------------------------------------------------- 23 Table 13: UK plain bottled water imports by country, 2010-2015 --------------------------------------------------------- 24 Table 14: UK plain bottled water import sales by brand, 2010-2015 ----------------------------------------------------- 25
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Still plain water consumption -------------------------------------------------------------------- 26
Table 15: UK plain bottled water: small pack vs cooler, 2009-2015 ------------------------------------------------------- 27
11.
Packaged still water brands ----------------------------------------------------------------------- 28
Table 16: UK top 10 plain packaged still water brands, 2014-2015 ------------------------------------------------------- 29
12.
Packaged sparkling water brands --------------------------------------------------------------- 30
Table 17: UK top 10 plain sparkling water brands, 2014-2015-------------------------------------------------------------- 30
13.
Retailer own label ------------------------------------------------------------------------------------ 31
Table 18: UK top 5 own label plain water producers, 2014-2015 ---------------------------------------------------------- 31
14.
Mineral water consumption----------------------------------------------------------------------- 33
Table 19: UK top 20 plain mineral water brands-------------------------------------------------------------------------------- 34
15.
Spring water consumption ------------------------------------------------------------------------ 35
Table 20: UK top 20 plain spring water brands, 2014-2015 ----------------------------------------------------------------- 37
16.
Glass packaged plain bottled water ------------------------------------------------------------ 38
Table 21: UK top 10 plain companies in glass packaging, 2014-2015 ----------------------------------------------------- 39
17.
Plastic packaged plain bottled water ----------------------------------------------------------- 40
Table 22: UK top 10 companies in plastic packaging, 2014-2015 ---------------------------------------------------------- 41
18.
Plain vs water plus ----------------------------------------------------------------------------------- 42
19.
UK water coolers ------------------------------------------------------------------------------------ 43
Table 23: UK top 10 water cooler companies, 2010-2015 ------------------------------------------------------------------- 44
20.
Plain bottled water consumer-------------------------------------------------------------------- 45
Table 24: GB plain bottled water consumer, 2010-2015 --------------------------------------------------------------------- 46 Table 25: Total UK plain bottled water: per capita consumption, 2009-2015 ------------------------------------------ 49 Table 26: International plain bottled water comparison --------------------------------------------------------------------- 50
21.
Plain bottled water value -------------------------------------------------------------------------- 50
Table 27: UK plain bottled water value, 2013-2015 --------------------------------------------------------------------------- 51 Table 28: UK plain bottled water value per litre by pack size, 2014-2015 ----------------------------------------------- 53 Table 29: Plain premium vs private label value per litre, 2014-2015------------------------------------------------------ 53 Table 30: International premium vs private label value per litre comparison, 2015 ---------------------------------- 53
22.
Ethical waters / ethical initiatives --------------------------------------------------------------- 53
23.
Ongoing challenges ---------------------------------------------------------------------------------- 54
23.1
Environmental -------------------------------------------------------------------------------------------------------------------- 54
23.2
Carbon footprint ----------------------------------------------------------------------------------------------------------------- 54
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23.3
Water footprint ------------------------------------------------------------------------------------------------------------------ 54
23.4
Lightweighting-------------------------------------------------------------------------------------------------------------------- 54
23.5
Recycling --------------------------------------------------------------------------------------------------------------------------- 54
23.6
Tap water -------------------------------------------------------------------------------------------------------------------------- 54
23.7
Industry consolidation --------------------------------------------------------------------------------------------------------- 55
23.8
Portfolio diversity --------------------------------------------------------------------------------------------------------------- 55
23.9
Consumer confidence and education ------------------------------------------------------------------------------------- 55
23.10
Retailer perception ---------------------------------------------------------------------------------------------------------- 55
23.11
Stock control and supply -------------------------------------------------------------------------------------------------- 55
23.12
Price pressures --------------------------------------------------------------------------------------------------------------- 55
24.
Water Stewardship ---------------------------------------------------------------------------------- 55
25.
Legislation ---------------------------------------------------------------------------------------------- 56
26.
Forecast to 2020-------------------------------------------------------------------------------------- 56
Table 31: UK plain bottled water consumption by segment, 2015-2020f ----------------------------------------------- 57
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APPENDICES ----------------------------------------------------------------------------------------------------Appendix 1 - Leading company profiles ------------------------------------------------------------- AP 1 AG Barr Plc ------------------------------------------------------------------------------------------------------------------- AP 2 Angel Springs Holdings Ltd ------------------------------------------------------------------------------------------------ AP 4 Berrington Pure Spring Water Company -------------------------------------------------------------------------------- AP 6 Best Water Technology Ltd------------------------------------------------------------------------------------------------ AP 8 Black Mountain Mineral Water Company ----------------------------------------------------------------------------- AP 10 Brecon Mineral Water ---------------------------------------------------------------------------------------------------- AP 12 Britvic Plc -------------------------------------------------------------------------------------------------------------------- AP 14 Coca-Cola Enterprises ----------------------------------------------------------------------------------------------------- AP 16 Coca-Cola HBC Northern Ireland ------------------------------------------------------------------------------------- AP 18 Cooleraid -------------------------------------------------------------------------------------------------------------------- AP 20 Cott Beverages Ltd --------------------------------------------------------------------------------------------------------- AP 22 Danone Waters (UK & Ireland) ------------------------------------------------------------------------------------------ AP 24 Decantae Natural Mineral Water --------------------------------------------------------------------------------------- AP 28 Eden Springs UK Ltd ------------------------------------------------------------------------------------------------------- AP 30 Edgar’s Water --------------------------------------------------------------------------------------------------------------- AP 32 Fonthill ----------------------------------------------------------------------------------------------------------------------- AP 34 Harrogate Water Brands Ltd -------------------------------------------------------------------------------------------- AP 36 Highland Spring Group ---------------------------------------------------------------------------------------------------- AP 38 Hildon Ltd ------------------------------------------------------------------------------------------------------------------- AP 42 Iceni Waters Ltd ------------------------------------------------------------------------------------------------------------ AP 44 Kingshill Mineral Water Ltd ---------------------------------------------------------------------------------------------- AP 46 Montgomery Spring Water Company ---------------------------------------------------------------------------------- AP 48 Navson Ltd ------------------------------------------------------------------------------------------------------------------ AP 51 Nestlé Waters UK Ltd ------------------------------------------------------------------------------------------------------ AP 53 One Water------------------------------------------------------------------------------------------------------------------- AP 56 Princes Gate Spring Water ----------------------------------------------------------------------------------------------- AP 58 Princes Soft Drinks --------------------------------------------------------------------------------------------------------- AP 61 Radnor Hills Mineral Water Company Ltd ---------------------------------------------------------------------------- AP 63 Roxane UK Ltd -------------------------------------------------------------------------------------------------------------- AP 64 Shepley Spring Ltd --------------------------------------------------------------------------------------------------------- AP 67 Swithland Spring Water --------------------------------------------------------------------------------------------------- AP 69 Water Coolers (Scotland) Ltd -------------------------------------------------------------------------------------------- AP 71
Appendix 2 - UK bottled water market in perspective --------------------------------------- AP 73 Appendix 3 - Legislation ------------------------------------------------------------------------------- AP 84 Appendix 4 - Definitions and symbols ------------------------------------------------------------- AP 87 Appendix 5 - Target Group Index (TGI) --------------------------------------------------------- AP 91
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Brief Summary 1. Commentary 2. Commentary 3. Commentary
Research Overview In compiling its research, Zenith International 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).
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UK plain bottled water report
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UK Plain Water Market
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2015 UK Plain Bottled Water Market 1.
Market Overview
Commentary
1.1 Economy Commentary
1.2 Weather Commentary
UK mean temperature, 2010-15 10.0
degrees centigrade
9.5 9.0
9.00
9.00
9.00
9.00
9.00
9.00
2010
2011
2012
2013
2014
2015
8.5 8.0 7.5 7.0
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UK sunshine hours, 2013-15 250
sunshine hours
200 150 100 50 0 Jan
Feb Mar Apr May Jun Jul 2013 2014
Aug Sep Oct Nov Dec 2015
UK rainfall 2013-2015 250
rainfall, mm
200 150 100 50 0 Jan
Feb Mar Apr May Jun 2013
Jul
2014
Aug Sep Oct Nov Dec 2015
1.3 Media  Commentary
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Sector Performance
 Commentary
Table 1: UK plain bottled water market, 2009-2015 Million litres
2009
2010
2011
2012
2013
2014
2015
Production Exports Imports Consumption
Production % change Exports as % of production Imports as % consumption Consumption % change Litres per person Source: Zenith International
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Table 2: Total UK plain bottled water types, 2009-2015 Million litres
2009
2010
2011
2012
2013
2014
2015
Total market Sparkling Still
Sparkling % share Still % share
Mineral Spring Others
Mineral % share Spring % share
Water cooler Water cooler % share Water cooler % change
Packaged Packaged % change Source: Zenith International
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UK plain packaged water vs coolers, 2010-2015 250
million litres
200
150
100
50
0 2010
2011
2012 Packaged
3.
2013
2014
2015
Water Cooler
UK plain packaged water
Commentary
4.
UK plain bottled water packaging Commentary
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Table 3: UK plain bottled water packaging, 2013-2015 Million litres
2013
2014
2015
2013
2014
2015
Can/Box NR Glass NR PET R PET NR PVC R Polycarb PLA NR HDPE Total market
% share Can/Carton NR Glass NR PET R PET NR PVC R Polycarb PLA NR HDPE Source: Zenith International
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Table 4: UK plain bottled water packaging, 2015 Pack type
Sizes in litres Million litres
Can
% share
Total 0.20/0.25 0.33/0.5
Bag in a Box
Total
NR Glass
Total 0.20/0.25 0.33/0.375 0.5 0.75 1.00 1.50
NR PET
Total 0.085/0.2/0.25 0.3/0.33/0.37 0.5 0.7/0.75 1.0 1.25 1.5 2.00 3.00 5.00 7.50 15
R PET
Total 17.50 19
NR PVC
Total 0.5 2.00 5.0
Refillable Polycarbonate
Total
10.0/11.0/11.3/11.4/11.5/12 13.00 18.5/18.9/19.0 22.0/22.7 PLA
Total 0.70
Total market Source: Zenith International
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UK plain bottled water packaging, 2015 Others
NR PET
R Polycarb
NR Glass
Total consumption: X million litres
5.
UK plain bottled water distribution
 Commentary
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Table 5: UK plain bottled water distribution, 2013-2015 2013 volume
Million litres
2015 2014 % share volume
2014 2013% share volume
2015 % share
Modern retail (includes discounters) Convenience / Impulse Door to door Retail
Horeca; pubs, clubs Offices Others Away from home
Total market Source: Zenith International
UK plain bottled water distribution, 2015 Modern Retail, 20.0%
Others, 20.0%
Offices, 20.0%
Convenience, Impulse, 20.0%
Horeca; pubs, clubs, 20.0% Total consumption: X million litres
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2016
UK plain bottled water companies and brands Commentary
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Table 6: Top 25 companies in UK bottled water market, 2014-2015 Million litres
2014 2014 volume %share
2015 2015 volume %share
2015 ranking Packaged Cooler Total
Company 1 Company 2 Company 3
Top 25 Others Total market Top 5 Top 10 Source: Zenith International
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Table 7: Next 25 companies in UK bottled water market, 2014-2015 Million litres
2014 2014 volume % share
2015 ranking 2015 2015 Packaged Cooler Total volume % share
Company 25 Company 26 Company 27
Top 25 Next 25 Others Total market Source: Zenith International
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UK plain bottled water industry consolidation, 2010-15 60
% share
50 40 30 20 10 0 2010
2011
2012 Top 5
2013
2014
2015
Top 10
Top 5 plain bottled water companies, 2010 & 2015
Company 1
100 100
Company 4
100 100
Company 3
100 100
Company 2
100 100
Company 1
100 100 0
40
80
million litres
2010 2015
120
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Top 5 UK plain bottled water companies, 2015 Company 1 , 10.0% Company 2, 10.0% Others, 50.0%
Company 3, 10.0%
Company 4 , 10.0% Company 5, 10.0% Total consumption: X million litres
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Table 8: Top 25 brands in UK bottled water market, 2014-2015 Million litres (1)
2014 2014 % 2015 2015 volume share volume % share
Brand Rank
Brand 1
1
Brand 2
2
Brand 3
3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Top 25 Others Total market Top 5 Top 10 Source: Zenith International
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Table 9: Next 25 brands in the UK plain bottled water market Million litres (1)
2014 2014 2015 2015 volume % share volume % share
Brand Rank
Brand 25 Brand 26 Brand 27
Top 25 Next 25 Others Total market Source: Zenith International
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UK plain bottled water producers
 Commentary
Table 10: Top 10 UK domestic plain bottled water producers, 2014-2015 Million litres
2014 2014 volume % share
2015 2015 volume % share
Company 1 Company 2 Company 3
Top 10 Others Total UK production Source: Zenith International
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Table 11: Top 10 UK plain produced brands, 2014-2015 Million litres
2014 2014 volume % share
2015 2015 volume % share
Company 1 Company 2 Company 3
Top 10 Others (1) Total UK sales (1) (1) Includes both retail and water cooler volumes Source: Zenith International
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UK bottled water producers, 2015 Company 1 , 10.0% Company 2, 10.0% Others, 50.0%
Company 3, 10.0%
Company 4 , 10.0% Company 5, 10.0%
Total UK bottled water production: X million litres
8. 
Plain bottled water exports Commentary
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UK plain bottled water exports, 2010-15 60
million litres
50 40 30 20 10 0 2010
2011
2012
2013
2014
2015
Table 12: UK plain bottled water exports by country, 2010-2015 Million litres
2010
2011
2012
2013
2014
2015
Ireland China Denmark Belgium UAE (Dubai & Sharjah etc) USA France Kuwait Saudi Arabia Hong Kong Others Total exports % change Source: Global Trade Inform ation Services
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Table 13: Top 10 plain water export brands, 2010-2015 Million litres
2010
2011
2012
2013
2014
2015
Brand 1 Brand 2 Brand 3
Total exports (1) Brands Others/stock adjustment Total export sales (2) (1) UK Government figures (2) Zenith export figures calculated from brand export totals by country Source: Zenith International
9.
Plain bottled water imports
 Commentary
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UK plain bottled water imports, 2010-15 60 million litres 50 40 30 20 10 0 2010
2011
2012
2013
2014
2015
Table 13: UK plain bottled water imports by country, 2010-2015 Million litres
2010
2011
2012
2013
2014
2015
Belgium France Italy Turkey Germany Spain Ireland Poland Fiji Portugal Others Total imports % change Source: Global Trade Inform ation Services
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Table 14: UK plain bottled water import sales by brand, 2010-2015 Million litres
2010
2011
2012
2013
2014
2015
France (1) Brand Brand Brand
Italy (1) Brand Brand Brand
Others/stock adjustment/misrecording Ireland (1) Brand Brand Brand Others/stock adjustment/misrecording Other countries (1) Brand Brand Brand
Others/stock adjustment/misrecording Total imports Brands Others/stock adjustment/misrecording Total import sales (1) UK Government figures Source: Zenith International
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Leading plain UK imported waters, 2015 Brand 1 10.0%
Others 20.0%
Brand 2 10.0%
Brand 5 10.0% Brand 3 10.0% Brand 4 10.0% Total UK bottled water imports: X million litres
10. Still plain water consumption  Commentary
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Table 15: UK plain bottled water: small pack vs cooler, 2009-2015 Million litres
2009
2010
2011
2012
2013
2014
2015
2009
2010
2011
2012
2013
2014
2015
2009
2010
2011
2012
2013
2014
2015
Total consumption Sparkling Still Total consumption Small pack Water cooler Total small pack water Packaged sparkling Packaged still
% change Total consumption Sparkling Still Total consumption Small pack Water cooler Total small pack water Packaged sparkling Packaged still
% share Total consumption Sparkling Still Total consumption Small pack Water cooler Total small pack water Packaged sparkling Packaged still Source: Zenith International
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UK plain still water consumption share, 2010-15 55
% share
50 45 40 35 30 25 20 15 10 5 0 2010
2011
2012
2013
2014
2015
11. Packaged still water brands  Commentary
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Table 16: UK top 10 plain packaged still water brands, 2014-2015 2014 2014 2015 2015 volume % share volume % share
Million litres
Rank
Brand 1
1
Brand 2
2
Brand 3
3 4 5 6 7 8 9 10
Top 10 Others (1) Total still water (2) (1) Includes retailer own labels (2) Excludes water for coolers Source: Zenith International
Leading UK packaged still plain water brands, 2015 Brand 1 10.0% Brand 2 10.0%
Others 50.0%
Brand 3 10.0%
Brand 4 10.0% Brand 5 10.0% Total UK packaged still water: X million litres
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12. Packaged sparkling water brands  Commentary
Table 17: UK top 10 plain sparkling water brands, 2014-2015 Million litres
2014 2014 2015 2015 volume % share volume % share
Rank
Brand 1
1
Brand 2
2
Brand 3
3 4 5 6 7 8 9 10
Top 10 Others (1) Total sparkling water (1) Includes retailer own labels Source: Zenith International
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Leading UK packaged still sparkling water brands, 2015 Brand 1 10.0% Brand 2 10.0%
Brand 3 10.0% Others 50.0%
Brand 4 10.0% Brand 5 10.0%
Total UK packaged sparkling water: X million litres
13. Retailer own label  Commentary
Table 18: UK top 5 own label plain water producers, 2014-2015 Million litres
2014 2014 volume % share
2015 volume
2015 % share
Rank
Top 50 Rank
Company 1 Company 2 Company 3
Top 5 Others Total own label water Source: Zenith International
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UK Own label plain water consumption share, 2010-15 60
% share of packaged water
50 40 30 20 10 0 2010
2011
2012
2013
2014
2015
UK own label plain water producers, 2015 Company 1, 10.0%
Others, 50.0%
Company 2, 10.0%
Company 3, 10.0%
Company 4, 10.0%
Company , 10.0% Total UK own label production: X million litres
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14. Mineral water consumption  Commentary UK natural mineral water consumption share, 2010-2015 60 50
% share of bottled water 50.0
50.0
50.0
50.0
50.0
50.0
2010
2011
2012
2013
2014
2015
40 30 20 10 0
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Table 19: UK top 20 plain mineral water brands Million litres (1)
2014 2014 2015 2015 volume % share volume % share
Brand Rank
Brand 25 Brand 26 Brand 27
Top 25 Next 25 Others Total market Source: Zenith International
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Leading UK plain mineral water brands, 2015 Brand 1, 10.0%
Brand 2, 10.0%
Brand 3, 10.0% Others, 50.0%
Brand 4, 10.0%
Brand 5, 10.0%
Total UK mineral water: X million litres
15. Spring water consumption  Commentary
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UK natural spring water consumption share, 2010-2015 60
% share of bottled water
50 40 30 20 10 0 2010
2011
2012
2013
2014
2015
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Table 20: UK top 20 plain spring water brands, 2014-2015 Million litres
2014 2014 volume % share
2015 2015 volume % share
Rank
Top 50 Rank
Brand 1 Brand 2 Brand 3
Top 20 Others Total spring water (1) Includes retail, water cooler and retailer own label volumes Source: Zenith International
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Leading UK plain spring water brands, 2015 Brand 1, 10.0% Brand 2, 10.0%
Others, 50.0% Brand 3, 10.0%
Brand 4, 10.0% Brand 5, 10.0%
Total UK spring water: X million litres
16. Glass packaged plain bottled water  Commentary
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Table 21: UK top 10 plain companies in glass packaging, 2014-2015 Million litres
2015 2015 2014 2014 volume % share volume % share
Top 50 Rank
Company 1 Company 2 Company 3
Top 10 Others Total in glass Source: Zenith International
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Leading UK plain water companies in glass, 2015 Brand 1 10.0% Brand 2 10.0% Nos 6 to 10 20.4%
Brand 3 10.0%
Brand 4 10.0% Brand 5 10.0%
Total UK packaged water in glass: X million litres
17. Plastic packaged plain bottled water  Commentary
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Table 22: UK top 10 companies in plastic packaging, 2014-2015 Million litres
2014 2014 2015 2015 volume % share volume % share
Top 50 Rank
Company 1 Company 2 Company 3
Top 10 Others Total in plastic (1) (1) Packaged water in PET/recycled PET only Source: Zenith International
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Leading UK plain water companies in plastic, 2015 Company 1, 10.0% Company 2, 10.0%
Others, 50.0%
Company 3, 10.0%
Company 4, 10.0% Company 5, 10.0% Total UK packaged water in plastic: X million litres
18. Plain vs water plus  Commentary
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UK plain vs flavoured water, 2010-15 1200
million litres
1000 800 600 400 200 0 2010
2011
2012
2013
Plain packaged
2014
2015
Flavoured
UK still/sparkling flavoured water, 2013-15 250
million litres
200
100
100
100
100
100
100
2013
2014
2015
150 100 50 0 Still
Sparkling
19. UK water coolers  Commentary
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Table 23: UK top 10 water cooler companies, 2010-2015 2010
Million litres
2013
2012
2011
2014
2015
Company 1 Company 2 Company 3
Top 10 Others (2) Total water cooler % change Source: Zenith International
UK water cooler market, 2010-15 150
100
million litres
100
100
100
100
100
100
2010
2011
2012
2013
2014
2015
50
0
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20. Plain bottled water consumer  Commentary
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Table 24: GB plain bottled water consumer, 2010-2015
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% of GB population
2010
2016
2011
2012
2013
2014
2015 (1)
Bottled water consumers
'Regular' bottled water 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 bottled water consumers (100 = average) Male Female (1) For fieldwork period July 2014 - June 2015 Source: Target Group Index (TGI) - GB Adults aged 15 and above
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UK plain bottled water report
2016
GB plain bottled water consumption, 2010-15
12 % of GB population
10 8 6 4 2 0 2010
2011
2012
Regular consumers
2013
2014
2015
All consumers
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UK plain bottled water report
2016
Table 25: Total UK plain bottled water: per capita consumption, 2009-2015 Litres
2009
2010
2011
2012
2013
2014
2015
2009
2010
2011
2012
2013
2014
2015
Per capita consumption Sparkling Still
Per capita consumption Small pack Water cooler
Per capita small pack water Packaged sparkling Packaged still
% change Per capita consumption Sparkling Still
Per capita consumption Small pack Water cooler
Per capita small pack water Packaged sparkling Packaged still Source: Zenith International
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UK plain bottled water report
2016
Table 26: International plain bottled water comparison CAGR Litres per person
2010
2015
2020f (10-15)
(15-20f)
United States
France Germany Italy Spain United Kingdom West Europe
Poland East Europe
China Asia Pacific
Global Source: Zenith International - globaldrinks.com
21. Plain bottled water value  Commentary
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Table 27: UK plain bottled water value, 2013-2015
Volume
£ VPL
2015
2014
2013 £m Volume Value
£ VPL
£m Volume Value
£ VPL
£m Value
Packaged Packaged % increase
Modern retail (inc discounters) Convenience / Impulse, others Horeca; pubs, clubs Others
Water cooler Water cooler % increase
Total market (1) Total market % change (1) Retail sales value, including restated water cooler values Numbers may vary due to rounding Source: Zenith International
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UK plain bottled water report
2016
UK plain bottled water market value, 2010-15 1200
1.20
1000
1.00
800
0.80
600
0.60
400
0.40
200
0.20
0
0.00 2010
2011 2012 2013 market value (ÂŁ mln)
2014 2015 value per litre (ÂŁ)
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Table 28: UK plain bottled water value per litre by pack size, 2014-2015 Pack size
2014
2015
Growth
Spark to 2 l Still to 2 l Still 2.1 - 10 l Still > 10.1 l Total Source: Zenith International
Table 29: Plain premium vs private label value per litre, 2014-2015 2014
2015
Growth
Premium
Private label
Plain water total (1) (1) Excludes water for coolers Source: Zenith International
Table 30: International premium vs private label value per litre comparison, 2015 Country
Plain water (1)
Premium water (1)
Private label water (1)
France Italy Germany USA UK (1) Excludes water for coolers Source: Zenith International
22. Ethical waters / ethical initiatives  Commentary.
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23. Ongoing challenges 23.1 Environmental Key challenge Commentary
Future trends Commentary
23.2 Carbon footprint Key challenge Commentary
Future trends Commentary
23.3 Water footprint Key challenge Commentary
Future trends Commentary
23.4 Lightweighting Key challenge Commentary
Future trends Commentary
23.5 Recycling Key challenge Commentary
Future trends Commentary
23.6 Tap water Key challenge Commentary
Future trends Commentary
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23.7 Industry consolidation Key challenge Commentary
Future trends Commentary
23.8 Portfolio diversity Key challenge Commentary
Future trends Commentary
23.9 Consumer confidence and education Key challenge Commentary
Future trends Commentary
23.10 Retailer perception Key challenge Commentary
Future trends Commentary
23.11 Stock control and supply Key challenge Commentary
Future trends Commentary
23.12 Price pressures Key challenge Commentary
Future trends Commentary
24. Water Stewardship 
Commentary.
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25. Legislation 
Commentary
26. Forecast to 2020  Commentary. UK plain bottled water market forecast, 2010-20
1500 million litres
1000
500
0 2010
2011
2012
2013
2014
2015
2016f
2017f
2018f
2019f
2020f
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UK plain bottled water report
2016
Table 31: UK plain bottled water consumption by segment, 2015-2020f Million litres
2015
2016f
2017f
2018f
2019f
2020f
Carbonated Still
Carbonated % share Still % share
Water cooler Water cooler % share Water cooler % change
Packaged Packaged % share Packaged % change
Total market Total market % change Source: Zenith International
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2016
APPENDIX 1 – LEADING COMPANY PROFILES
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AP 1
March 2016
Zenith Report
COMPANY NAME Address: Tel: Website:
Fax: Email:
Company Structure Ownership: Senior management:
Employees: Subsidiaries:
Related activities: Non-related activities:
Company Finances £ Million, year to Jan
2009
2010
2011
2012
2013
2014
2015
Sales Profit before tax
Water Production Location:
Source: Lines:
Investment:
Product Range Brand Name
© Zenith International Ltd 2016
Description Still- Spring
Pack TypeSize (litres) NR PET 0.33 0.75
0.5 1.5
AP
March 2016
Zenith Report
Production & Sales volume plain still / sparkling water Million Litres 2009 2010 2011 Production Exports UK Sales - Sparkling - Still
2012
2013
2014
2015
Brand - Sparkling - Still
Marketing Analysis Packaging (2015) NR GLASS 0.33 0.75 1.0 NR PET 0.33 0.5 0.75 1.5 2.0 R Polycarb 18.9
Outlets (2015) Away from Home Retail
Advertising
Commentary
Š Zenith International Ltd 2016
AP
APPENDIX 2 - BOTTLED WATER IN PERSPECTIVE
1.
2016
UK Plain bottled water market 25 year review
1.1 Overall market performance Commentary UK plain bottled water market, 1990-2015
1200
1000
800
600
400
200
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2014
2013
2012
2011
2010
2009
2008
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0
APPENDIX 2 - BOTTLED WATER IN PERSPECTIVE
2016
1.2 Small Pack vs. Coolers Commentary Small Pack vs. Cooler volume 1990 - 2015 1200
1000
800
600
400
200
Small pack
Water cooler
1.3 Small Pack Sparkling vs. Still Commentary Chart to illustrate
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2014
2013
2012
2011
2010
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2008
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1990
0
APPENDIX 2 - BOTTLED WATER IN PERSPECTIVE
1.4 Own label water consumption Commentary
Chart to illustrate
2.
UK Plain bottled water market in perspective
FROM 1994 ZENITH GUIDE Commentary
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APPENDIX 3 - LEGISLATION
2016
APPENDIX 3 - LEGISLATION Commentary
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APPENDIX 4 - DEFINITIONS AND SYMBOLS
APPENDIX 4 – 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 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. 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
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APPENDIX 4 - DEFINITIONS AND SYMBOLS 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
Retail Supermarkets Multiples and other grocers – Tesco, Sainsbury, Asda, Waitrose, Morrisons, Somerfield, Coop, 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)
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APPENDIX 4 - DEFINITIONS AND SYMBOLS
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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APPENDIX 4 - DEFINITIONS AND SYMBOLS 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
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APPENDIX 5 - TARGET GROUP INDEX (TGI)
APPENDIX 5 - 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.co.uk 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.
Anne Benoist - Director +44 (0)20 8433 4227 anne.benoist@kantarmedia.com www.tgi-insights.com
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