zenithinternational enithinternational
UK Water Drinks 2016 th
25 Annual Report
March 2016
Zenith Report on UK Water Drinks 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 water drinks 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 water drinks report
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Contents Brief Summary-------------------------------------------------------------------------------------------------- 2 Research Overview -------------------------------------------------------------------------------------------- 2 UK Water Drinks Market ------------------------------------------------------------------------------------ 2 Market Overview------------------------------------------------------------------------------------------ 2 1.1
Economy ---------------------------------------------------------------------------------------------------------------------------- 2
1.2
Weather ----------------------------------------------------------------------------------------------------------------------------- 2
1.3
Media -------------------------------------------------------------------------------------------------------------------------------- 3
UK water drinks market -------------------------------------------------------------------------------- 4 Table 1: UK water drinks market, 2010-2015 ------------------------------------------------------------------------------------- 4
UK water drinks companies --------------------------------------------------------------------------- 6 Table 2: Top 25 companies in UK bottled water drinks market, 2014-2015 --------------------------------------------- 6 Table 3: UK water drinks market, 2014-2015 ------------------------------------------------------------------------------------- 8
2015 UK Plain Bottled Water Market ----------------------------------------------------------------- 11 Market Overview---------------------------------------------------------------------------------------- 11 Sector Performance------------------------------------------------------------------------------------ 11 Table 1: UK plain bottled water market, 2009-2015 --------------------------------------------------------------------------- 11 Table 2: Total UK plain bottled water types, 2009-2015 --------------------------------------------------------------------- 12
UK plain packaged water ----------------------------------------------------------------------------- 13 UK plain bottled water companies ---------------------------------------------------------------- 13 Table 3: Top 25 companies in UK bottled water market, 2014-2015 ----------------------------------------------------- 14 Table 4: Next 25 companies in UK bottled water market, 2014-2015 ---------------------------------------------------- 15 Table 5: Top 25 brands in UK bottled water market, 2014-2015 ----------------------------------------------------------- 18 Table 6: Next 25 brands in the UK plain bottled water market ------------------------------------------------------------- 19 Table 7: UK plain bottled water: small pack vs cooler, 2009-2015--------------------------------------------------------- 20
UK plain bottled water consumer ----------------------------------------------------------------- 21 Table 8: Total UK plain bottled water: per capita consumption, 2009-2015 -------------------------------------------- 21 Table 9: International plain bottled water comparison ----------------------------------------------------------------------- 22
Plain bottled water value ----------------------------------------------------------------------------- 24 Table 10: Plain bottled water value, 2013-2015 -------------------------------------------------------------------------------- 24
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Table 11: UK plain bottled water value per litre by pack size, 2014-2015 ----------------------------------------------- 25
Plain vs. Water Plus ------------------------------------------------------------------------------------ 26 Forecast to 2020----------------------------------------------------------------------------------------- 27 Table 12: UK plain bottled water consumption by segment, 2015-2020f ----------------------------------------------- 27
2015 UK water plus market ------------------------------------------------------------------------------- 30 Market overview ---------------------------------------------------------------------------------------- 30 Sector performance ------------------------------------------------------------------------------------ 30 Table 1: UK water plus market, 2009-2015 -------------------------------------------------------------------------------------- 30 Table 2: Total UK water plus types, 2009-2015 --------------------------------------------------------------------------------- 31
UK water plus companies ---------------------------------------------------------------------------- 32 Table 3: Top 15 companies in UK water plus market, 2014-2015 ---------------------------------------------------------- 33
Water plus brands -------------------------------------------------------------------------------------- 36 Table 4: Top 20 brands in UK water plus market ------------------------------------------------------------------------------- 36 Table 5: Top 20 brands in UK water plus market ranking, 2015 ------------------------------------------------------------ 37
Water plus consumer---------------------------------------------------------------------------------- 38 Table 6: Total UK water plus: per capita consumption, 2009-2015-------------------------------------------------------- 38 Table 7: International flavoured water comparison, 2010-2020f ---------------------------------------------------------- 39
Water plus value ---------------------------------------------------------------------------------------- 39 Table 8: UK flavoured water value, 2013-2015 --------------------------------------------------------------------------------- 40
Forecast to 2020----------------------------------------------------------------------------------------- 41 Table 9: UK water plus consumption by segment, 2015-2020f ------------------------------------------------------------- 42
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 CBL Drinks Ltd -------------------------------------------------------------------------------------------------------------- AP 16 Coca-Cola Enterprises ----------------------------------------------------------------------------------------------------- AP 19 Coca-Cola HBC Northern Ireland ------------------------------------------------------------------------------------- AP 21
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Cooleraid -------------------------------------------------------------------------------------------------------------------- AP 23 Cott Beverages Ltd --------------------------------------------------------------------------------------------------------- AP 25 Danone Waters (UK & Ireland) ------------------------------------------------------------------------------------------ AP 27 Decantae Natural Mineral Water --------------------------------------------------------------------------------------- AP 31 Eden Springs UK Ltd ------------------------------------------------------------------------------------------------------- AP 33 Edgar’s Water --------------------------------------------------------------------------------------------------------------- AP 35 Fonthill ----------------------------------------------------------------------------------------------------------------------- AP 37 Harrogate Water Brands Ltd -------------------------------------------------------------------------------------------- AP 39 Highland Spring Group ---------------------------------------------------------------------------------------------------- AP 41 Hildon Ltd ------------------------------------------------------------------------------------------------------------------- AP 43 Iceni Waters Ltd ------------------------------------------------------------------------------------------------------------ AP 47 Innocent Drinks Ltd -------------------------------------------------------------------------------------------------------- AP 49 Kingshill Mineral Water Ltd ---------------------------------------------------------------------------------------------- AP 51 Montgomery Spring Water Company ---------------------------------------------------------------------------------- AP 53 Navson Ltd ------------------------------------------------------------------------------------------------------------------ AP 56 Nestlé Waters UK Ltd ------------------------------------------------------------------------------------------------------ AP 58 Nichols Plc ------------------------------------------------------------------------------------------------------------------ AP 61 One Water------------------------------------------------------------------------------------------------------------------- AP 63 Princes Gate Spring Water ----------------------------------------------------------------------------------------------- AP 65 Princes Soft Drinks --------------------------------------------------------------------------------------------------------- AP 68 Radnor Hills Mineral Water Company Ltd ---------------------------------------------------------------------------- AP 70 Roxane UK Ltd -------------------------------------------------------------------------------------------------------------- AP 72 Shepley Spring Ltd --------------------------------------------------------------------------------------------------------- AP 74 Swithland Spring Water --------------------------------------------------------------------------------------------------- AP 76 Trederwen Springs --------------------------------------------------------------------------------------------------------- AP 78 Water Coolers (Scotland) Ltd -------------------------------------------------------------------------------------------- AP 80
Appendix 2 - UK bottled water market in perspective --------------------------------------- AP 82 Appendix 3 - Legislation ------------------------------------------------------------------------------- AP 92 Appendix 4 - Definitions and symbols ------------------------------------------------------------- AP 95 Appendix 5 - Target Group Index (TGI) --------------------------------------------------------- AP 99
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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 Water Drinks Market Macro Overview 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
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
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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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UK water drinks market Table 1: UK water drinks market, 2010-2015 Million litres
2010
2011
2012
2013
2014
2015
Total market Sparkling Still
Sparkling % share Still % share
Plain Flavoured Functional Juicy
Plain % share Flavoured % share Functional % share Juicy % share
Plain % change Flavoured % change Functional % change Juicy % change
Total market % change Source: Zenith International
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200
2016
UK water drinks, 2010-2015 million litres
150
100
50
0 2010
2011
2012
Plain
2013
2014
2015
Waterplus
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UK water drinks companies Table 2: Top 25 companies in UK bottled water drinks market, 2014-2015 Million litres
2014 volume
2014 2015 share volume
2015 2015 share ranking
Company 1
1
Company 2
2
Company 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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Top 5 UK water drinks companies, 2015 Company 1, 10.0% Company 2, 10.0%
Company 3, 10.0% Others, 50.0%
Company 4, 10.0%
Company 5, 10.0%
Total UK mineral water: X million litres
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Table 3: UK water drinks market, 2014-2015 Million litres (1)
2014 volume
2014 2015 share volume
2015 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 16 18 19 20 21 22 23 24 25
Top 25 Others Total market Top 5 Top 10 (1) Branded water volumes only (2) Brands listed include volumes of sub-brands (plain, flavoured, functional and juicy waters) Source: Zenith International
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Leading UK water drinks 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
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UK Plain Water Market
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2015 UK Plain Bottled Water Market Market Overview Commentary
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
2013
2014
2015
Water Cooler
UK plain packaged water Commentary
UK plain bottled water companies Commentary
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Table 3: 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 4: 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
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
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Table 5: 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 6: 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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Table 7: 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 bottled water consumer  Commentary
Table 8: 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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Table 9: 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
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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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Plain bottled water value Commentary
Table 10: Plain bottled water value, 2013-2015 2013 Volume
£ VPL
2014 £m Volume Value
£ VPL
2015 £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 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 (£ mln)
2014 2015 value per litre (£)
Table 11: 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
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Plain vs. Water Plus  Commentary
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, 2013-15 250 200
million litres
100
100
100
100
100
100
2013
2014
2015
150 100 50 0 Still
Sparkling
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Forecast to 2020  Commentary
Table 12: 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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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 Water Plus Market
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2014 UK water plus market Market overview Commentary
Sector performance Commentary
Table 1: UK water plus market, 2009-2015 Million litres
2009
2010
2011
2012
2013
2014
2015
Production Imports Consumption
Production % change Imports as % consumption Consumption % change Per Capita Consumption Source: Zenith International
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Table 2: Total UK water plus types, 2009-2015 Million litres
2009
2010
2011
2012
2013
2014
2015
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 International
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UK water plus, 2010-15 160
million litres
140 120 100 80 60 40 20 0 2010
2011
2012 Flavoured
2013 Functional
Juicy
2014
2015
UK water plus companies  Commentary
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Table 3: Top 15 companies in UK water plus market, 2014-2015 Million litres
2014 2014 volume % share
2015 2015 2015 Rank volume % share
Company 1 Company 2 Company 3
Top 15 Others Total market Top 5 Top 10 Source: Zenith International
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UK water plus industry consolidation, 2014-15 45.0
% share
40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 2014
Top 5
2015
Top 10
Top 5 water plus companies, 2014 & 2015
million litres
Company 5
2014
Company 4
2015 Company 3
Company 2
Company 1 0
20
40
60
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Top 5 UK water plus 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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Water plus brands Table 4: Top 20 brands in UK water plus market Million litres
2014 2014 volume % share
2015 2015 2015 Rank volume % share
Brand 1 Brand 2 Brand 3
Top 20 Others (3) Total market Top 5 Top 10 Source: Zenith International
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Table 5: Top 20 brands in UK water plus market ranking, 2015 2015 ranking Million litres
Flavoured Functional
Juicy
Total
Brand 1
1
Brand 2
2
Brand 3
3 4 5
6 7 8 9 9
11 12 13 14 15
16 17 17 19 20 Source: Zenith International
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Water plus consumer 
Commentary
Table 6: Total UK water plus: 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 Flavoured Functional Juicy
% change Per capita consumption Sparkling Still
Per capita consumption Flavoured Functional Juicy Source: Zenith International
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Table 7: International flavoured water comparison, 2010-2020f CAGR Litres per person
2010
2015
2020
(10-15)
(15-20)
United States
France Germany Italy Spain United Kingdom West Europe
Poland East Europe
China Asia Pacific
Global (1) (1) Includes only flavoured and functional waters Source: Zenith International, globaldrinks.com
Water plus value  Commentary
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Table 8: UK flavoured water value, 2013-2015 2013 Volume
£ VPL
2014 £m Volume Value
£ VPL
2015 £m Volume Value
£ VPL £m Value
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 International
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UK water plus market value, 2013-15 120 100
1.20
100
100
100
1.00
80
0.80
60
0.60
40
0.40
20
0.20
0
0.00 2013
2014 market value (£ mln)
2015 value per litre (£)
Forecast to 2020
Commentary
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Table 9: UK water plus consumption by segment, 2015-2020f Million litres
2015
2016f
2017f
2018f
2019f
2020f
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 International
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UK water plus market forecast, 2010-20f million litres
100
100
100
100
100
100
100
2010
2011
2012
2013
2014
2015
100
100
100
100
100
0 2016f 2017f 2018f 2019f 2020f
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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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1998
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1996
1995
1994
1993
1992
1991
1990
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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2015
2014
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2009
2008
2007
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2004
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1998
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1996
1995
1994
1993
1992
1991
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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specialist consultants to the food and drink industries
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
zenithinternational © Zenith International Ltd 2016 worldwide
specialist consultants to the food and drink industries
2016
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)
zenithinternational © Zenith International Ltd 2016 worldwide
specialist consultants to the food and drink industries
2016
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
zenithinternational © Zenith International Ltd 2016 worldwide
specialist consultants to the food and drink industries
2016
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
zenithinternational Š Zenith International Ltd 2016 worldwide
specialist consultants to the food and drink industries
2016
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
zenithinternational © Zenith International Ltd 2016 worldwide
specialist consultants to the food and drink industries
2016