[COUNTRY]

Integrated tap systems - Unit analysis

ITS channel distribution, 2022

ITS machine functionality, 2022

Chilled

Chilled-hot

Chilled-hot-boiling

ITS still-sparkling functionality, 2022

Still Still + sparkling

Appendix

Glossary, acronyms and abbreviations

Glossary

• Bottled water: All water sold in containers for human consumption.

• Bulk bottled water: Bottled water sold in containers larger than 10 litres in size.

• Bottler: Bottlers supply water to distributors in tankers or bottles. They have no dispense units of their own.

• Bottler-distributors: Bottler-distributors have their own water source, fill bottles under their own brand, install their own dispense units and run their own distribution service They may also fill bottles under contract for other distributors, either under their own brand or under distributor brands

• BWD conversions: Refers to the number of units converted from BWD to either POU or ITS.

• Cancellations: Sometimes also called churn or quit rate. The number of installed units that are lost in the year, removing the unit altogether.

• Carbon filtration: Cartridges in carbon filters naturally absorb organic compounds and chlorine by-products from water The technique is often used to remove objectionable taste and odour from water.

• Distributor: Distributors service their own machines using water supplied by bottlers or bottler-distributors. The water may be marketed under the bottler’s, bottler-distributor’s or the distributor’s brand name. This report measures the overall market for units installed in use in each calendar year by distributor until is it replaced or removed from the market. The ‘distributor’ shall be considered the company at the end of the chain, in direct contact with the end user (or with a facility management company directly supplying the end-user). Manufacturer units should only be counted when the manufacturer is also the distributor to the end client or operates through an exclusive dealership or franchise where manufacturer branding remains intact and only when the manufacturer operates under a combined direct and exclusive distributor network. If market presence is only through exclusive distributors, the units should be counted towards the distributor’s numbers If a manufacturer’s unit is placed in field by another party and not by exclusive partnership (indirect sale), the unit should be counted under that other party if named, or captured under ‘others’. If a unit is placed in field by Company X, but after the initial contract expires continues to be serviced by Company Y, the unit is transferred to Company Y, adding one unit in that given year to its total, and subtracting one active unit from Company X, compared to the previous year.

• Indirect sales: Sales that are not to an end-customer or facility manager are out of scope under distributor sales

• Packaged water: Bottled water that is not distributed for consumption via water coolers.

• Pumps/ceramics (non-powered/non-installed systems) for formats above 10 litres are included at the topline for East Europe, where they have a significant market share.

Glossary

• Purified water: Mains or other water subjected to further processing and treatment and bottled in accordance with EC Directive 80/778/EEC on Water for Human Consumption Sometimes called ‘drinking water’ or ‘table water’ It may come from more than one source or not from a single underground source. It may include the public water supply or be transported from the source to the bottling plant. Bottling companies may carry out filtration and treatment processes on the water to amend its constituents before the water is distributed for sale. Some companies may also add mineral salts and carbon dioxide to their water.

• Rented: A unit is considered rented under any kind of traditional rental (monthly payments), subscription or lease agreement/financing schemes, even if the lease fee is arranged through an intermediary party. Such units will count towards the unit total of the distributor company (the company holding the end-customer on contract) under such circumstances. BWD units supplied for free that are covered by a subscription contract of minimum monthly bottle orders or ad hoc water purchases are also considered units under rental, as the unit is subject to being returned to the distributor at the end of its life or contract, even if the unit itself does not attract a rental fee for placement in field Rental contracts generally also include services

• Reverse osmosis: A water treatment process that filters out most inorganic chemicals such as salts, metals and minerals as well as micro-organisms and many (but not all) organic compounds. It is sometimes seen as a controversial filtration method as it frequently discards a high percentage of water along with the contaminants.

• Service/maintenance: Including replacement filters, other spare parts, maintenance, sanitisation. These may entail regular payment as part of a contractual rental and service package attracting recurring revenue or a one-off separate payment.

• Sold: A unit is considered sold when 100% of the purchase price is paid at the point of sale or prior to installation. There is no obligation to return the unit at the end of its life. Units may be purchased online or offline, through direct retail sales to an end-customer or facility manager. Service and maintenance contracts may still be attached to that unit, but this is purchased separately.

• Throughput: The volume of bottled used per dispenser.

• UV: UV filtration systems inactivate bacteria, viruses and micro-organisms.

• Water treatment method (for POU and ITS): Filtration or purification (RO, purifying UV, Ozonation, hollow fibre membrane)

Appendix

Acronyms and abbreviations

... Negligible, less than 0.05 f Forecast na Not available, not applicable

B2B Business-to-Business

BiB Bag-in-box

BPA Bisphenol A

BWCA British Water Cooler Association

BWD Bottled water dispenser

CAGR Compound annual growth rate

EC European Commission

EDWCA European Drinking Water Cooler Association

EU European Union

HOD Home and office delivery

IMF International Monetary Fund

ITS Integrated tap system

NR Non returnable packaging

OOH Out-of-home

PET Polyethylene terephthalate

POU Point of use

R Returnable packaging

RO Reverse osmosis

Appendix

Acronyms and abbreviations

SME Small-and medium-sized enterprise

SSTI Self-sanitising technology system

UNESCO United Nations Educational, Scientific and Cultural Organization

UNESDA Union of European Beverages Associations

UTS Under the sink

UV Ultra violet

VAT Value-added tax

WE Watercoolers Europe

WHA The Water Dispenser & Hydration Association

WRAP Waste Resources Action Programme

WRAS Water Regulations Advisory Scheme