Zenith Global 2017 UK Water Drinks Report

Zenith Insight report

UK water drinks report A comprehensive overview of the UK plain, flavoured, functional and juicy waters market

March 2017

Zenith report on UK water drinks March 2017 26th edition

Copyright All copyright in this document is reserved.

Liability This document contains information and may contain conclusions and recommendations. Every effort has been made to ensure that the information is accurate and that the opinions expressed are sound. However, Zenith Global Ltd cannot be made liable for any errors or omissions or for any losses or consequential losses resulting from decisions based on the information.

Important notice on distribution This report should not be quoted, referred to or transmitted to another party, in whole or in part, with out the prior written consent of Zenith Global Ltd. Should you desire to release a copy of this report to another party for information purposes, we request you and the requesting party to indemnify Zenith Global Ltd from any liability related to the report distribution. Such readers however will not be considered “users� of this report.

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Zenith UK water drinks report 2017

introduction This is the twenty-sixth 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 2017 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.

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 Global

© Zenith Global Ltd 2017

Zenith UK water drinks report 2017

contents brief summary------------------------------------------------------------------------------------------- 7 research overview ------------------------------------------------------------------------------------- 8 1

macro overview --------------------------------------------------------------------------------- 9 1.1 economy ------------------------------------------------------------------------------------------ 9 1.2 weather ------------------------------------------------------------------------------------------ 10 1.3 media --------------------------------------------------------------------------------------------- 12

2

UK water drinks market -------------------------------------------------------------------- 13

3

UK plain water - market overview ------------------------------------------------------ 18

4

UK plain water - sector performance ------------------------------------------------- 19

5

UK plain water - plain packaged water ----------------------------------------------- 22

6

UK plain water - companies and brands --------------------------------------------- 23

7

UK plain water - consumer ---------------------------------------------------------------- 30

8

UK plain water - value ----------------------------------------------------------------------- 34

9

UK plain water vs water plus ------------------------------------------------------------- 37

10

UK plain water - forecast to 2021 ------------------------------------------------------ 39

11

UK water plus - market overview ------------------------------------------------------- 41

12

UK water plus - sector performance -------------------------------------------------- 42

13

UK water plus - companies and brands----------------------------------------------- 45

14

UK water plus - consumer ----------------------------------------------------------------- 51

15

UK water plus – value ----------------------------------------------------------------------- 54

16

UK water plus - forecast to 2021 ------------------------------------------------------- 57

appendix 1- legislation ---------------------------------------------------------------------------- 60 appendix 2 – definitions and symbols ------------------------------------------------------- 63

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Zenith UK water drinks report 2017

definitions ---------------------------------------------------------------------------------------------- 63 Natural Mineral Water ----------------------------------------------------------------------------------- 63 Spring Water-------------------------------------------------------------------------------------------------- 63 Bottled Drinking Water ---------------------------------------------------------------------------------- 63 Flavoured Water -------------------------------------------------------------------------------------------- 64 Functional Water ------------------------------------------------------------------------------------------- 64 Juicy Water ---------------------------------------------------------------------------------------------------- 64 Water Plus ----------------------------------------------------------------------------------------------------- 64 Distribution channels ------------------------------------------------------------------------------------- 64 Retail ------------------------------------------------------------------------------------------------------------- 64 Supermarkets ------------------------------------------------------------------------------------------------- 64 Independent, others --------------------------------------------------------------------------------------- 65 Door-to-door -------------------------------------------------------------------------------------------------- 65

Away From Home------------------------------------------------------------------------------------------- 65 Offices ----------------------------------------------------------------------------------------------------------- 65 Horeca, pubs and clubs ----------------------------------------------------------------------------------- 65 Others ----------------------------------------------------------------------------------------------------------- 65

symbols -------------------------------------------------------------------------------------------------- 66

appendix 3- Target Group Index (TGI) ------------------------------------------------------- 67 appendix 4- leading company profiles------------------------------------------------------- 68 AG Barr Plc ---------------------------------------------------------------------------------------------- 68 Angel Springs Holdings Ltd -------------------------------------------------------------------------Berrington Pure Spring Water Company ------------------------------------------------------Black Mountain Mineral Water Company -----------------------------------------------------Brecon Mineral Water --------------------------------------------------------------------------------Britvic Plc--------------------------------------------------------------------------------------------------CBL Drinks Ltd -------------------------------------------------------------------------------------------Coca-Cola European Partners ---------------------------------------------------------------------Coca-Cola HBC Northern Ireland -----------------------------------------------------------------Cooleraid --------------------------------------------------------------------------------------------------Cott Beverages Ltd ------------------------------------------------------------------------------------Danone Waters (UK & Ireland) --------------------------------------------------------------------Decantae Natural Mineral Water -----------------------------------------------------------------Eden Springs UK Ltd ----------------------------------------------------------------------------------Edgar’s Water--------------------------------------------------------------------------------------------Fonthill Pure English Spring Water --------------------------------------------------------------Get More Vitamin Drinks ----------------------------------------------------------------------------Harrogate Water Brands Ltd -----------------------------------------------------------------------Highland Spring Group -------------------------------------------------------------------------------Hildon Ltd -------------------------------------------------------------------------------------------------Innocent ---------------------------------------------------------------------------------------------------Kingshill Mineral Water Ltd ------------------------------------------------------------------------Montgomery Natural Spring Water Company -----------------------------------------------Nestlé Waters UK Ltd ---------------------------------------------------------------------------------Nichols Plc -------------------------------------------------------------------------------------------------

© Zenith Global Ltd 2017

Zenith UK water drinks report 2017

One Water ------------------------------------------------------------------------------------------------Radnor Hills Mineral Water Company Ltd -----------------------------------------------------Roxane UK Ltd-------------------------------------------------------------------------------------------Princes Gate Spring Water --------------------------------------------------------------------------Princes Soft Drinks ------------------------------------------------------------------------------------Shepley Spring Ltd -------------------------------------------------------------------------------------Swithland Spring Water ------------------------------------------------------------------------------Talking Rain Beverage Company -----------------------------------------------------------------Trederwen Springs-------------------------------------------------------------------------------------Water Coolers (Scotland) Ltd -----------------------------------------------------------------------

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Zenith UK water drinks report 2017

tables table 2.1 table 2.2 table 2.3 table 4.1 table 4.2 table 6.1 table 6.2 table 6.3 table 6.4 table 7.1 table 7.2 table 7.3 table 8.1 table 8.2 table 26.1 table 12.1 table 12.2 table 13.1 table 13.2 table 13.3 table 14.1 table table table table

14.2 14.3 15.1 16.1

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UK water drinks market, 2011-16 ----------------------------------------------- 14 top 25 companies in UK bottled water drinks market, 2015-2016-- 15 top 25 brands in UK bottled water drinks market, 2015-2016 ------- 16 UK plain bottled water market, 2011-16 ------------------------------------- 19 UK plain bottled water types, 2011-16 --------------------------------------- 20 top 25 companies in UK bottled water market, 2015-2016 ----------- 23 next 25 companies in UK bottled water market, 2015-2016 ---------- 25 top 25 brands in UK bottled water market, 2015-2016 ----------------- 28 next 25 brands in UK bottled water market, 2015-2016 --------------- 29 GB plain bottled water consumer, 2011-2016------------------------------ 31 UK plain bottled water per capita consumption, 2011-2016 --------- 32 international plain bottled water comparison, 2011-2021f ----------- 33 UK plain bottled water value, 2014-2016 ------------------------------------ 35 UK plain bottled water value per litre by pack size, 2015-2016 ----- 36 UK forecast plain bottled water consumption by segment, 20162021f -------------------------------------------------------------------------------------- 40 UK water plus market, 2011-16 -------------------------------------------------- 43 UK water plus types, 2011-16 ---------------------------------------------------- 44 top 15 companies in UK water plus market, 2015-2016 ---------------- 46 top 20 brands in UK water plus market, 2015-2016 ---------------------- 49 top 20 brands in UK water plus market ranking, 2015-2016 ---------- 50 GB flavoured water, herbal and premium soft drinks consumer, 2014-2016 ------------------------------------------------------------------------------- 51 UK water plus per capita consumption, 2011-2016 ---------------------- 52 international flavoured water comparison, 2011-2021f ---------------- 53 UK water plus value, 2014-2016 ------------------------------------------------- 55 UK forecast water plus consumption by segment, 2016-2021f ------ 58

Zenith UK water drinks report 2017

figures figure 1.1 figure 1.2 figure 2.1 figure 2.2 figure 2.3 figure 4.1 figure 6.1 figure 6.2 figure 6.3 figure 7.1 figure 8.1 figure 18.1 figure 18.2 figure 26.1 figure 12.1 figure 13.1 figure 13.2 figure 13.3 figure 14.1 figure 14.1 figure 16.1

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UK mean temperature, 2011-16 ------------------------------------------------- 11 UK sunshine hours, 2014-16 ------------------------------------------------------ 11 UK water drinks, 2011-2016------------------------------------------------------- 14 top UK water drinks companies, 2016----------------------------------------- 17 top UK water drinks brands, 2016 ---------------------------------------------- 17 UK plain packaged water vs coolers, 2011-16 ------------------------------ 21 UK plain bottled water industry consolidation, 2011-2016 ----------- 26 top 5 plain bottled water companies, 2011 and 2016 ------------------- 26 top UK plain bottled water companies, 2016 ------------------------------- 27 GB plain bottled water consumption 2011-2016-------------------------- 31 UK packaged bottled water market value, 2011-2016 ------------------ 35 UK plain vs flavoured water, 2011-2016 -------------------------------------- 37 UK still/sparkling flavoured water, 2014-2016 ----------------------------- 38 UK plain bottled water market forecast, 2011-2021f ------------------- 40 UK water plus market, 2011-16 -------------------------------------------------- 44 UK water plus industry consolidation, 2014-2016 ------------------------ 47 top 5 water plus companies, 2014 and 2016 -------------------------------- 47 top UK water plus companies, 2016 ------------------------------------------- 48 GB flavoured water, herbal and premium soft drinks consumer, 2011-2016 ------------------------------------------------------------------------------- 52 UK water plus market value, 2014-2016-------------------------------------- 56 UK water plus market forecast, 2011-2021f -------------------------------- 58

Zenith UK water drinks report 2017

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UK water drinks report brief summary 1. Commentary 2. Commentary 3. Commentary

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Zenith UK water drinks report 2017

research overview

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

In compiling its research, Zenith Global 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).

© Zenith Global Ltd 2017

Zenith UK water drinks report 2017

1

macro overview

1.1

economy 

Commentary

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1.2

weather 

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figure 1.1

UK mean temperature, 2011-16

5.5 5 5

5

5

5

5

5

2011

2012

2013

2014

2015

2016

degrees centigrade

4.5 4 3.5 3 2.5 2 1.5 1 0.5 0

figure 1.2

UK sunshine hours, 2014-16

60

sunshine hours

50 40 30 20 10 0 Jan

Feb

Mar

Apr

May

Jun

2014

figure 1.3

Jul

2015

Aug

Sep

Oct

Nov

2016

UK rainfall, 2014-16

60 50

rainfall

40 30 20 10 0 Jan

Feb

Mar

Apr 2014

source: Met Office

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May

Jun 2015

Jul

Aug 2016

Sep

Oct

Nov

Dec

Dec

Zenith UK water drinks report 2017

1.3

media 

Commentary

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2

UK water drinks market 

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Zenith UK water drinks report 2017

table 2.1

UK water drinks market, 2011-2016

Million litres

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 Global figure 2.1

UK water drinks, 2011-2016

16 14

5

5

5

5

5

5

10

10

10

10

10

10

2011

2012

2013

2014

2015

2016

million litres

12 10 8 6 4 2 0 Plain water source: Zenith Global Š Zenith Global Ltd 2017

Water Plus

2016

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Zenith UK water drinks report 2017

table 2.2

Million litres Company

Top 25 Others Total market Top 5 Top 10 source: Zenith Global

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top 25 companies in UK bottled water drinks market, 2015-2016

2015 volume

2015 % share

2016 volume

2016 % share

Brand rank

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Zenith UK water drinks report 2017

table 2.3

Million litres (1) Brand

Top 25 Others Total market Top 5 source: Zenith Global

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top 25 brands in UK bottled water drinks market, 2015-2016

2015 volume

2015 % share

2016 volume

2016 % share

2016 ranking

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Zenith UK water drinks report 2017

figure 2.2

top UK water drinks companies, 2016

10%

Company 10%

50%

10%

Company Company Company

10% 10%

Company Others

total consumption: X million litres

figure 2.3

top UK water drinks brands, 2016

10% 10%

50%

10%

Brand

Brand

Brand

Brand

Brand

Others

10% 10%

total consumption: X million litres

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Zenith UK water drinks report 2017

UK plain water market UK plain water - market overview 

Commentary

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Zenith UK water drinks report 2017

3

UK plain water - sector performance 

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Zenith UK water drinks report 2017

table 4.1

Million litres Production Exports Imports Consumption

UK plain bottled water market, 2011-16

2011

2012

2013

2014

2015

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Production % change Exports as % of production Imports as % consumption Consumption % change Litres per person source: Zenith Global table 4.2

Million litres 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 Global

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UK plain bottled water types, 2011-16

2011

2012

2013

2014

2015

2016

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Zenith UK water drinks report 2017

figure 4.1

UK plain packaged water vs coolers, 2011-16

80 70

million litres

60 50 40 30 20 10 0 2011

2012

2013 Packaged

source: Zenith Global

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2014 Water Cooler

2015

2016

Zenith UK water drinks report 2017

4

UK plain water - plain packaged water 

Commentary

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5

UK plain water - companies and brands 

Commentary

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Commentary

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Commentary

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Zenith UK water drinks report 2017

table 6.1

Million litres Company

Top 25 Others Total market Top 5 Top 10 source: Zenith Global

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top 25 companies in UK bottled water market, 2015-2016

2015 volume

2015 % share

2016 volume

2016 % share

2016 Packaged

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Zenith UK water drinks report 2017

table 6.2

Million litres Company

Top 25 Next 25 Others Total market source: Zenith Global

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next 25 companies in UK bottled water market, 2015-2016

2015 volume

2015 % share

2016 volume

2016 % share

2016 Packaged

1 25 Page 5 / 0 3 / ranking2 0 Cooler 1 Total 7

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Zenith UK water drinks report 2017

figure 6.1

UK plain bottled water industry consolidation, 2011-2016

25.0

20.0

20.0

20.0

20.0

20.0

20.0

20.0

% share

15.0

10.0

10.0

10.0

10.0

10.0

10.0

10.0

5.0

0.0 2011

2012

2013 Top 5

2014

2015

2016

Top 10

source: Zenith Global

figure 6.2

top 5 plain bottled water companies, 2011 and 2016

10.0

Company

5.0 10.0

Company

5.0 10.0

Company

5.0 10.0

Company

5.0 10.0

Company

5.0 0

2

4

6 2016

source: Zenith Global

Š Zenith Global Ltd 2017

8 2011

10

12 million litres

Zenith UK water drinks report 2017

figure 6.3

top UK plain bottled water companies, 2016

10%

Company 10%

50%

10%

Company Company Company

10% 10%

total consumption: X million litres

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Company Others

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Zenith UK water drinks report 2017

table 6.3

Million litres (1) Brand

Top 25 Others Total market Top 5 Top 10 source: Zenith Global

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top 25 brands in UK bottled water market, 2015-2016

2015 volume

2015 % share

2016 volume

2016 % share

Brand rank

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Zenith UK water drinks report 2017

table 6.4

Million litres (1) Brand

Top 25 Next 25 Others Total market source: Zenith Global

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next 25 brands in UK bottled water market, 2015-2016

2015 volume

2015 % share

2016 volume

2016 % share Brand

Brand rank

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Zenith UK water drinks report 2017

6

UK plain water - consumer 

Commentary.

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Commentary.

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Commentary.

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Zenith UK water drinks report 2017

table 7.1

GB plain bottled water consumer, 2011-2016

% of GB population

2011

2012

2013

2014

2015

Bottled water consumers

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'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 2015- June 2016 source: Target Group Index (TGI)- GB adults aged 15 and above

figure 7.1

GB plain bottled water consumption 2011-2016

12

10

% of GB population

10

10

10

10

10

10

8

6

4

5

5

5

5

5

5

2

0 2011

2012

2013

2014

source: Target Group Index (TGI)- GB adults aged 15 and above

Š Zenith Global Ltd 2017

2015

2016

Zenith UK water drinks report 2017

table 7.2

UK plain bottled water per capita consumption, 2011-2016

Litres Per capita consumption Sparkling Still

2011

2012

2013

2014

2015

2011

2012

2013

2014

2015

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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 Global

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2016

Zenith UK water drinks report 2017

table 7.3

international plain bottled water comparison, 2011-2021f

Litres per person

2011

United States France Germany Italy Spain United Kingdom West Europe Poland East Europe China Asia Pacific Global source: Zenith Global- globaldrinks.com

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2016

2021f

CAGR (11-16) (16-21f)

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Zenith UK water drinks report 2017

7

UK plain water - value 

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Zenith UK water drinks report 2017

table 8.1

UK plain bottled water value, 2014-2016

2014 Volume

£ VPL

2015 £m Value

Volume

2015 £m Value

£ VPL

Volume

£ VPL

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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 Global

figure 8.1

UK packaged bottled water market value, 2011-2016

120

6

100

5 100

100

100

100

100

80

4

60

3

40

2

20

1

0

0 market value (£ mln)

source: Zenith Global

© Zenith Global Ltd 2017

value per litre (£)

vpl £

Market value £ mln

100

Zenith UK water drinks report 2017

table 8.2

UK plain bottled water value per litre by pack size, 2015-2016

Pack size Spark to 2 l Still to 2 l Still 2.1- 10 l Still > 10.1 l Total source: Zenith Global

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2015

2016

Growth

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Zenith UK water drinks report 2017

8

UK plain water vs water plus 

Commentary

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Commentary

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Zenith UK water drinks report 2017

figure 18.1

UK plain vs flavoured water, 2011-2016

12

10 10

10

10

10

10

10

million litres

8

6 5

4

5

5

5

5

5

2

0 2011

2012

2013

2014

2015

2016

source: Zenith Global

figure 18.2

UK still/sparkling flavoured water, 2014-2016

25

million litres

20 10

10

10

10

10

10

2015

2016

15

10

5

0 2014 still source: Zenith Global

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sparkling

Zenith UK water drinks report 2017

9

UK plain water - forecast to 2021 

Commentary

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Commentary

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Zenith UK water drinks report 2017



themes are likely to be healthy hydration, natural provenance, water miles, environmental initiatives.

figure 26.1

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UK plain bottled water market forecast, 2011-2021f

120

100 100

100

100

100

100

100

100

100

100

100

100

2011

2012

2013

2014

2015

2016

2017f

2018f

2019f

2020f

2021f

million litres

80

60

40

20

0

source: Zenith Global

table 26.1 Million litres 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 Global

Š Zenith Global Ltd 2017

UK forecast plain bottled water consumption by segment, 2016-2021f 2016 2017f 2018f 2019f 2020f 2021f

Zenith UK water drinks report 2017

UK water plus market 10

UK water plus - market overview 

Commentary

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Zenith UK water drinks report 2017

11

UK water plus - sector performance 

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Zenith UK water drinks report 2017

table 12.1

Million litres Production Imports Consumption Production % change Imports as % consumption Consumption % change Per Capita Consumption source: Zenith Global

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UK water plus market, 2011-16

2011

2012

2013

2014

2015

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Zenith UK water drinks report 2017

table 12.2

Million litres Total market

UK water plus types, 2011-16

2011

2012

2013

2014

2015

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 Global

figure 12.1

UK water plus market, 2011-16

35 30

million litres

25

10

10

10

10

10

10

10

10

10

10

10

10

10

10

10

10

10

2011

2012

2013

2014

2015

2016

10

20 15 10 5 0 Flavoured

source: Zenith Global

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Functional

Juicy

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Zenith UK water drinks report 2017

12

UK water plus - companies and brands 

Commentary

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Zenith UK water drinks report 2017

table 13.1

Million litres Company

Top 15 Others Total market Top 5 Top 10 source: Zenith Global

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top 15 companies in UK water plus market, 2015-2016

2015 volume

2015 % share

2016 volume

2016 % share

2016 rank

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Zenith UK water drinks report 2017

figure 13.1

UK water plus industry consolidation, 2014-2016

12

10

10.0

10.0

10.0

% share

8

6

5.0

4

5.0

5.0

2

0 2014

2015 Top 5

2016

Top 10

source: Zenith Global

figure 13.2

top 5 water plus companies, 2014 and 2016

10.0

Company

5.0 10.0

Company

5.0 10.0

Company

5.0 10.0

Company

5.0 10.0

Company

5.0 0

2

4

6 2016

source: Zenith Global

Š Zenith Global Ltd 2017

8 2014

10

12 million litres

Zenith UK water drinks report 2017

figure 13.3

top UK water plus companies, 2016

10%

Company 10%

50%

10%

Company Company Company

10% 10%

total consumption: X million litres

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Company Company

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Zenith UK water drinks report 2017

table 13.2

Million litres Brand

Top 20 Others (3) Total market Top 5 Top 10 source: Zenith Global

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top 20 brands in UK water plus market, 2015-2016

2015 volume

2015 % share

2016 volume

2016 % share

Brand rank

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Zenith UK water drinks report 2017

table 13.3

Million litres Brand

source: Zenith Global

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top 20 brands in UK water plus market ranking, 2015-2016

Flavoured

2016 ranking Functional Juicy

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Zenith UK water drinks report 2017

13

UK water plus - consumer 

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table 14.1

GB flavoured water, herbal and premium soft drinks consumer, 2014-2016

% of GB population Consumers

2014

Regular' 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 consumers (100 = average) Male Female (2) For fieldwork period July 2015 - June 2016 source: Target Group Index (TGI) - GB adults aged 15 and above

© Zenith Global Ltd 2017

2015

2016 (1)

Zenith UK water drinks report 2017

figure 14.1

GB flavoured water, herbal and premium soft drinks consumer, 2011-2016 12

10

% of GB population

10

10

10

8

6

4

5

5

5

2

0 2014

2015

2016

source: Target Group Index (TGI) - GB adults aged 15 and above

table 14.2

Litres Per capita consumption Sparkling Still

UK water plus per capita consumption, 2011-2016

2011

2012

2013

2014

2015

2016

2011

2012

2013

2014

2015

2016

Per capita consumption Flavoured Functional Juicy

% change Per capita consumption Sparkling Still Per capita consumption Flavoured Functional Juicy source: Zenith Global

Š Zenith Global Ltd 2017

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Zenith UK water drinks report 2017

table 14.3

Litres per person

international flavoured water comparison, 2011-2021f

2011

2016

2021f

United States France Germany Italy Spain United Kingdom West Europe Poland East Europe China Asia Pacific Global (1) (1) Includes only flavoured and flavoured functional waters source: Zenith Global - globaldrinks.com

Š Zenith Global Ltd 2017

CAGR (11-16) (16-21f)

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Zenith UK water drinks report 2017

14

UK water plus - value 

Commentary



Commentary



Commentary

© Zenith Global Ltd 2017

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Zenith UK water drinks report 2017

table 15.1

UK water plus value, 2014-2016

2014 Volume

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 Global

© Zenith Global Ltd 2017

£ VPL

2015 £m Value

Volume

£ VPL

2015 £m Value

Volume

£ VPL

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Zenith UK water drinks report 2017

figure 14.1

UK water plus market value, 2014-2016

12

10

5 10

10

8

4

6

3

4

2

2

1

0

0 market value (£ mln)

source: Zenith Global

© Zenith Global Ltd 2017

10

value per litre (£)

Zenith UK water drinks report 2017

15

UK water plus - forecast to 2021 

Commentary



Commentary



Commentary

© Zenith Global Ltd 2017

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figure 16.1

UK water plus market forecast, 2011-2021f

60

50 50

50

50

50

50

50

50

50

50

50

50

2011

2012

2013

2014

2015

2016

2017f

2018f

2019f

2020f

2021f

million litres

40

30

20

10

0

source: Zenith Global

table 16.1

Million litres 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 Global

Š Zenith Global Ltd 2017

UK forecast water plus consumption by segment, 2016-2021f

2016

2017f

2018f

2019f

2020f

2021f

Zenith UK water drinks report 2017

appendix

Š Zenith Global Ltd 2017

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Zenith UK water drinks report 2017

appendix 2 – definitions and symbols

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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.

© Zenith Global Ltd 2017

1 64 Page 5 / 0 3 These definitions are a simple description of the requirements of the UK bottled water regulations. / 2 For a detailed definition please consult the Natural Mineral Water, Spring Water and Bottled Drinking 0 Water Regulations, 1999 and any subsequent amendments. For a detailed review of the implications 1 of the regulations, consult Zenith’s ‘Plain Language Guide to the UK Bottled Water Regulations’.

7 Zenith UK water drinks report 2017

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

© Zenith Global Ltd 2017

Zenith UK water drinks report 2017



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

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

© Zenith Global Ltd 2017

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Zenith UK water drinks report 2017

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

Š Zenith Global Ltd 2017

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Zenith UK water drinks report 2017

appendix 4- leading company profiles AG Barr Plc Angel Springs Holdings Ltd Berrington Pure Spring Water Company Black Mountain Mineral Water Company Brecon Mineral Water Britvic Plc CBL Drinks Ltd Coca-Cola European Partners Coca-Cola HBC Northern Ireland Cooleraid Cott Beverages Ltd Danone Waters (UK & Ireland) Decantae Natural Mineral Water Eden Springs UK Ltd Edgar’s Water Fonthill Pure English Spring Water Get More Vitamin Drinks Harrogate Water Brands Ltd Highland Spring Group Hildon Ltd Innocent Kingshill Mineral Water Ltd Montgomery Natural Spring Water Company Nestlé Waters UK Ltd Nichols Plc One Water Radnor Hills Mineral Water Company Ltd Roxane UK Ltd Princes Gate Spring Water Princes Soft Drinks Shepley Spring Ltd Swithland Spring Water Talking Rain Beverage Company Trederwen Springs Water Coolers (Scotland) Ltd © Zenith Global Ltd 2017

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COMPANY Address: Tel: Website:

Fax: Email:

Company Structure Ownership: Senior management:

Employees: Subsiduaries: Related activities:

Non-related activities:

Company Finances ÂŁ Million, year to Sales Profit before tax

Water Production Location: Source: Lines: Investment:

Advertising

Commentary

Š Zenith Global Ltd 2017

2010

2011

2012

2013

2014

2015

2016

Zenith UK water drinks report 2017

COMPANY - Plain Water Product Range Brand name Brand A

Water type Still

Pack type

Spring

NR PET

Sizes available (litre) 0.5 0.75 (SC)

0.5 1.5

0.33

0.75

Glass

x10

Production & Sales Volume Million litres Production Exports UK Sales - still - sparkling - cooler Brand - still - sparkling - cooler

2010

2011

2012

2013

2014

2015

2016

2010

2011

2012

2013

2014

2015

2016

Cooler Analysis Unit Numbers Own POU units

Packaging Split NR GLASS 0.33 0.75 NR PET 0.5 0.75 1

10.0% 5.0% 5.0% 90.0% 50.0% 20.0% 20.0%

Channel Split (by brand / type) Brand Brand

Š Zenith Global Ltd 2017

Retail 100.0%

OOH 0.0%

HOD 0.0%

Total 100%

Zenith UK water drinks report 2017

COMPANY - Water Plus Product Range Brand name Brand A

Water type Still

Pack type

Spring

NR PET

Sizes available (litre) 0.5 0.75 (SC)

0.5 1.5

0.33

0.75

Glass

x10

Production & Sales Volume (Water Plus) Million litres Production Exports UK Sales - still - sparkling Brand A - still - sparkling

2010

2011

2012

2013

2014

2015

2016

Packaging Split NR GLASS 0.33 0.75 NR PET 0.5 0.75 1

10.0% 5.0% 5.0% 90.0% 50.0% 20.0% 20.0%

Channel Split (by brand / type) Brand Brand

Š Zenith Global Ltd 2017

Retail 100.0%

OOH 0.0%

HOD 0.0%

Total 100%

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