UK Water Plus Drinks Report 2019

Zenith Global Report

2019

UK Water Plus Drinks Report An in-depth analysis of the UK flavoured, functional and juicy waters sectors

Zenith report on UK water plus drinks March 2019 28th 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.

Zenith UK water plus drinks report 2019

Introduction This is the twenty-eighth Zenith Global 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 2019 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.

Robin Bell Senior Consultant Zenith Global

© Zenith Global Ltd 2019

Zenith UK water plus drinks report 2019

Contents Brief summary ------------------------------------------------------------------------------------------ 7 Research overview ------------------------------------------------------------------------------------ 8 1

Market overview -------------------------------------------------------------------------------- 9 1.1 Economy ----------------------------------------------------------------------------------------- 10 1.2 Weather ------------------------------------------------------------------------------------------ 11 1.3 Media --------------------------------------------------------------------------------------------- 13

2

Sector performance ------------------------------------------------------------------------- 14

3

UK water plus packaging ------------------------------------------------------------------ 17

4

UK water plus distribution ---------------------------------------------------------------- 19

5

UK water plus companies and groups ------------------------------------------------ 21 5.1 UK water plus companies ------------------------------------------------------------------ 21 5.2 UK water plus groups ----------------------------------------------------------------------- 24 5.3 UK water plus brands ----------------------------------------------------------------------- 25

6

UK water plus producers ------------------------------------------------------------------ 27

7

UK still water plus brands ----------------------------------------------------------------- 29

8

UK sparkling water plus brands --------------------------------------------------------- 31

9

UK flavoured water brands --------------------------------------------------------------- 33

10

UK functional water brands -------------------------------------------------------------- 35

11

UK juicy water brands ----------------------------------------------------------------------- 37

12

UK water plus retailer own label ------------------------------------------------------- 39

13

UK water plus consumer ------------------------------------------------------------------- 42

14

UK water plus value ------------------------------------------------------------------------- 45

15

Ethical waters / Ethical initiatives ------------------------------------------------------ 48

16

Ongoing challenges ------------------------------------------------------------------------- 49

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Zenith UK water plus drinks report 2019

16.1 Maintaining consumer interest ---------------------------------------------------------- 49 16.1.1 16.1.2

Key challenges ----------------------------------------------------------------------------- 49 Future trends ------------------------------------------------------------------------------- 49

16.2 Selling ‘hydration with flavour’ ---------------------------------------------------------- 49 16.2.1 16.2.2

Key challenges ----------------------------------------------------------------------------- 49 Future trends ------------------------------------------------------------------------------- 49

16.3 The sugar debate ----------------------------------------------------------------------------- 49 16.3.1 16.3.2

Key challenges ----------------------------------------------------------------------------- 49 Future trends ------------------------------------------------------------------------------- 49

16.4 Retailer perception -------------------------------------------------------------------------- 49 16.4.1 16.4.2

Key challenges ----------------------------------------------------------------------------- 49 Future trends ------------------------------------------------------------------------------- 49

16.5 Stock control & supply ---------------------------------------------------------------------- 49 16.5.1 16.5.2

Key challenges ----------------------------------------------------------------------------- 49 Future trends ------------------------------------------------------------------------------- 50

16.6 Price pressures -------------------------------------------------------------------------------- 50 16.6.1 16.6.2

Key challenges ----------------------------------------------------------------------------- 50 Future trends ------------------------------------------------------------------------------- 50

17

Water stewardship --------------------------------------------------------------------------- 51

18

Legislation --------------------------------------------------------------------------------------- 52

19

Forecast to 2023 ------------------------------------------------------------------------------ 53

Appendix 1- Legislation --------------------------------------------------------------------------- 56 Appendix 2 - definitions and symbols-------------------------------------------------------- 57 Definitions ---------------------------------------------------------------------------------------------- 57 Natural Mineral Water ----------------------------------------------------------------------------------- 57 Spring Water-------------------------------------------------------------------------------------------------- 57 Bottled Drinking Water ---------------------------------------------------------------------------------- 57 Flavoured Water -------------------------------------------------------------------------------------------- 58 Functional Water ------------------------------------------------------------------------------------------- 58 Juicy Water ---------------------------------------------------------------------------------------------------- 58 Water Plus ----------------------------------------------------------------------------------------------------- 58 Distribution channels ------------------------------------------------------------------------------------- 58 Retail ------------------------------------------------------------------------------------------------------------- 58 Supermarkets ------------------------------------------------------------------------------------------------- 58 Independent, others --------------------------------------------------------------------------------------- 59 Door-to-door -------------------------------------------------------------------------------------------------- 59

Away From Home------------------------------------------------------------------------------------------- 59 Offices ----------------------------------------------------------------------------------------------------------- 59 Horeca, pubs and clubs ----------------------------------------------------------------------------------- 59 Others ----------------------------------------------------------------------------------------------------------- 59

Symbols -------------------------------------------------------------------------------------------------- 60

Appendix 3- Target Group Index (TGI) ------------------------------------------------------- 61

© Zenith Global Ltd 2019

Zenith UK water plus drinks report 2019

Appendix 4- leading company profiles ------------------------------------------------------ 62 AG Barr Plc ---------------------------------------------------------------------------------------------- 62 Britvic Plc------------------------------------------------------------------------------------------------ 62 Clearly Drinks Ltd ------------------------------------------------------------------------------------ 62 Coca-Cola European Partners ------------------------------------------------------------------- 62 Coca-Cola HBC Northern Ireland --------------------------------------------------------------- 62 Cott Beverages Ltd ---------------------------------------------------------------------------------- 62 Danone Waters (UK & Ireland) ------------------------------------------------------------------ 62 Get More Vitamin Drinks -------------------------------------------------------------------------- 62 Highland Spring Group ----------------------------------------------------------------------------- 62 Innocent ------------------------------------------------------------------------------------------------- 62 Montgomery Natural Spring Water Company --------------------------------------------- 62 Nichols Plc ---------------------------------------------------------------------------------------------- 62 One Water ---------------------------------------------------------------------------------------------- 62 Princes Soft Drinks ---------------------------------------------------------------------------------- 62 Radnor Hills Mineral Water Company Ltd --------------------------------------------------- 62 Talking Rain Beverage Company --------------------------------------------------------------- 62 Trederwen Springs----------------------------------------------------------------------------------- 62

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Zenith UK water plus drinks report 2019

Tables Table 2.1 Table 2.2 Table 3.1 Table 4.1 Table 5.1 Table 6.1 Table 7.1 Table 8.1 Table 9.1 Table 11.1 Table 12.1 Table 12.2 Table 13.1 Table 13.2 Table 13.3 Table 14.1 Table 14.2 Table 19.1

Š Zenith Global Ltd 2019

UK water plus market, 2013-18 -------------------------------------------------- 15 UK water plus types, 2013-18 ---------------------------------------------------- 15 UK water plus packaging, 2016-18 --------------------------------------------- 18 UK water plus distribution, 2016-2018---------------------------------------- 20 Top 15 companies in UK water plus market, 2017-2018---------------- 22 Top 10 UK water plus producers, 2017-2018 ------------------------------- 28 Top 5 UK still water plus brands, 2017-2018 -------------------------------- 30 UK top 5 sparkling water brands, 2017-2018 ------------------------------- 32 UK top 10 flavoured water brands, 2017-2018 ---------------------------- 34 UK top 5 juicy water brands, 2017-2018 -------------------------------------- 38 UK own label flavoured water production, 2016-2018------------------ 40 UK top 5 own label flavoured water producers, 2016-2018 ---------- 41 GB flavoured water, herbal and premium soft drinks consumer, 2016-2018 ------------------------------------------------------------------------------- 43 UK water plus per capita consumption, 2013-2018 ---------------------- 44 International flavoured water comparison, 2013-2023f---------------- 44 UK water plus value, 2016-2018 ------------------------------------------------- 46 UK branded vs private label retail value per litre, 2017-2018 -------- 47 UK forecast water plus consumption by segment, 2018-2023f ------ 54

Zenith UK water plus drinks report 2019

Figures Figure 1.1 Figure 1.2 Figure 2.1 Figure 2.2 Figure 3.1 Figure 4.1 Figure 6.1 Figure 7.1 Figure 8.1 Figure 9.1 Figure 10.1 Figure 11.1 Figure 12.1 Figure 12.2 Figure 13.1 Figure 14.1 Figure 19.1

Š Zenith Global Ltd 2019

UK mean temperature, 2013-18 ------------------------------------------------- 12 UK sunshine hours, 2016-18 ------------------------------------------------------ 12 UK water plus market, 2013-18 -------------------------------------------------- 16 UK water plus consumption share, 2013-18 -------------------------------- 16 UK water plus packaging, 2018 -------------------------------------------------- 18 UK water plus distribution, 2018 ------------------------------------------------ 20 UK water plus producers, 2018 -------------------------------------------------- 28 UK still water plus brands, 2018 ------------------------------------------------- 30 UK sparkling water brands, 2018 ------------------------------------------------ 32 Leading UK flavoured water brands, 2018 ---------------------------------- 34 Leading UK functional water brands, 2018 ---------------------------------- 36 Leading UK juicy water brands, 2018 ------------------------------------------ 38 UK own label flavoured water consumption share, 2016-2018 ------ 40 UK own label flavoured water producers, 2018 --------------------------- 41 GB flavoured water, herbal and premium soft drinks consumer, 2016-2018 ------------------------------------------------------------------------------- 43 UK water plus market value, 2016-2018-------------------------------------- 47 UK water plus market forecast, 2013-2023f -------------------------------- 54

Zenith UK water plus drinks report 2019

UK water plus drinks report Brief summary 1. Commentary 2. Commentary 3. Commentary

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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 Global’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 2019

Zenith UK water plus drinks report 2019

1

Market overview 

Commentary

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Commentary

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Commentary

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1.1

Economy 

Commentary

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Commentary

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Commentary

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1.2

Weather 

Commentary

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Commentary

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Commentary

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Figure 1.1

UK mean temperature, 2013-18

5.5 5 5

5

5

5

5

5

2013

2014

2015

2016

2017

2018

degrees centigrade

4.5 4 3.5 3 2.5 2 1.5 1 0.5 0

Figure 1.2

UK sunshine hours, 2016-18

35 30

sunshine hours

25 20 15 10 5 0 Jan

Feb

Mar

Apr

May

2016

Figure 1.3

Jun

Jul

2017

Aug

Sep

Oct

Nov

Dec

Sep

Oct

Nov

Dec

2018

UK rainfall, 2016-18

40 35 30 rainfall

25 20 15 10 5 0 Jan

Feb

Mar

Apr 2016

Source: Met Office

Š Zenith Global Ltd 2019

May

Jun

2017

Jul

Aug

2018

Zenith UK water plus drinks report 2019

1.3

Media 

Commentary

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Commentary

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Commentary

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2

Sector performance 

Commentary

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Commentary

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Commentary

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Zenith UK water plus drinks report 2019

Table 2.1

Million litres Production Imports Consumption

UK water plus market, 2013-18

2013

2014

2015

2016

2017

2018

2017

2018

Production % change Imports as % consumption Consumption % change Per Capita Consumption Source: Zenith Global

Table 2.2

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

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UK water plus types, 2013-18

2013

2014

2015

2016

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Zenith UK water plus drinks report 2019

Figure 2.1

UK water plus market, 2013-18

million litres

100

15

15

15

15

15

15

40

40

40

40

40

40

30

30

30

30

30

30

2013

2014

2015

2016

2017

2018

0 Flavoured

Functional

Juicy

Source: Zenith Global

Figure 2.2

UK water plus consumption share, 2013-18

60

% share

40

20

0 2013

2014

2015 Flavoured

Source: Zenith Global

Š Zenith Global Ltd 2019

2016 Functional

2017 Juicy

2018

Zenith UK water plus drinks report 2019

3

UK water plus packaging 

Commentary



Commentary



Commentary

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Zenith UK water plus drinks report 2019

Table 3.1

Million litres NR PET Other Total market

UK water plus packaging, 2016-18

2016

2017

2018

% share NR PET Other Source: Zenith Global

Figure 3.1

UK water plus packaging, 2018

NR PET 50.0%

50%

Others

total consumption: X million litres

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4

UK water plus distribution 

Commentary



Commentary



Commentary

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Zenith UK water plus drinks report 2019

Table 4.1

UK water plus distribution, 2016-2018

2016 volume

Million litres

2016 % share

2017 volume

2017 % share

2018 volume

Modern retail (includes discounters) Convenience / Impulse Retail Horeca; pubs, clubs Others Away from home Total market Source: Zenith Global

Figure 4.1

UK water plus distribution, 2018

25% 25.0%

Modern retail Convenience Horeca 25%

25%

total consumption: X million litres

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Others

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5

UK water plus companies and groups

5.1

UK water plus companies 

Commentary

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Commentary

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Commentary

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Zenith UK water plus drinks report 2019

Table 5.1

Top 15 companies in UK water plus market, 2017-2018

2017 volume

Million litres

2017 % share

2018 volume

2018 % share

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

Figure 5.1

Top UK water plus companies, 2018

10%

Company 10%

50%

10%

Company Company Company

10% 10%

Total consumption: X million litres

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Company Company

2018 rank

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Zenith UK water plus drinks report 2019

Figure 5.2

UK water plus industry consolidation, 2016-2018

100

80

% share

60

60.0

60.0

60.0

40

40.0

40.0

40.0

20

0 2016

2017 Top 5

2018

Top 10

Source: Zenith Global

Figure 5.3

30.0

Company

10.0 30.0

Company

Company

Top 5 water plus companies, 2016 and 2018

10.0 30.0 10.0 30.0

Company

10.0 30.0

Company

10.0 0

50

100 2018

Source: Zenith Global

Š Zenith Global Ltd 2019

2016

150 million litres

Zenith UK water plus drinks report 2019

5.2

UK water plus groups 

Commentary

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Commentary

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Commentary

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Zenith UK water plus drinks report 2019

5.3

UK water plus brands Table 5.4

Million litres

Top 20 Others (3) Total market Top 5 Top 10 (1) Includes retailer brands Source: Zenith Global

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Top 20 brands in UK water plus market, 2017-2018

2017 volume

2017 % share

2018 volume

2018 % share

Brand rank

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Zenith UK water plus drinks report 2019

Table 5.5

Million litres

Source: Zenith Global

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Top 20 brands in UK water plus market ranking, 2018

Flavoured

2018 ranking Functional Juicy

Total

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Zenith UK water plus drinks report 2019

6

UK water plus producers 

Commentary



Commentary

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Commentary

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Zenith UK water plus drinks report 2019

Table 6.1

Top 10 UK water plus producers, 2017-2018

Million litres

2017 volume

2017 % share

2018 volume

2018 % share

Top 10 Others Total UK production Source: Zenith Global

Figure 6.1

UK water plus producers, 2018

18%

19%

18%

Company

Company

Company

Company

Company

Company

18%

18%

9%

Total UK water plus production: X million litres

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Zenith UK water plus drinks report 2019

7

UK still water plus brands 

Commentary

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Commentary

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Commentary

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Zenith UK water plus drinks report 2019

Table 7.1

Top 5 UK still water plus brands, 2017-2018

2017 volume

Million litres

2017 % share

2018 volume

2018 % share

Top 5 Others (1) Total still water (1) Includes retailer own label numbers Source: Zenith Global

Figure 7.1

UK still water plus brands, 2018

20%

20%

10%

Company

Company

Company

Company

Company

Company

20% 10% 20%

Total UK still water plus consumption: X million litres

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8

UK sparkling water plus brands 

Commentary

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Commentary

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Commentary

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Zenith UK water plus drinks report 2019

Table 8.1

UK top 5 sparkling water brands, 2017-2018

2017 volume

Million litres

2017 % share

2018 volume

2018 % share

Top 5 Others (1) Total sparkling water (1) Includes retailer own label numbers Source: Zenith Global

Figure 8.1

UK sparkling water brands, 2018 10% 10%

Company Company 5%

50%

Company Company

5% Company Company 20%

Total UK sparkling water plus consumption: X million litres

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9

UK flavoured water brands 

Commentary

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Commentary

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Commentary

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Zenith UK water plus drinks report 2019

Table 9.1

UK top 10 flavoured water brands, 2017-2018

2017 volume

Million litres

2017 % share

2018 volume

2018 % share

Top 10 Others (1) Total flavoured water (1) Includes retailer own labels Source: Zenith Global

Figure 9.1

Leading UK flavoured water brands, 2018

15%

40%

Company

Company

Company

Company

Company

Company

10%

10%

10% 15%

Total UK flavoured water consumption: X million litres

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% change

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10

UK functional water brands 

Commentary

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Commentary

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Commentary

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Zenith UK water plus drinks report 2019

Table10.1

UK top 5 functional waters brands, 2017-2018

2017 volume

Million litres

2017 % share

2018 volume

2018 % share

Top 5 Others Total functional water Source: Zenith Global

Figure 10.1

Leading UK functional water brands, 2018

15% Company

Company

Company

Company

Company

Company

35% 10% 5% 5%

30%

Total UK functional water consumption: X million litres

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% change

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11

UK juicy water brands 

Commentary



Commentary

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Commentary

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Zenith UK water plus drinks report 2019

Table 11.1

UK top 5 juicy water brands, 2017-2018

Million litres

2017 volume

2017 % share

2018 volume

2018 % share

Top 5 Others Total juicy water Source: Zenith Global

Figure 11.1

Leading UK juicy water brands, 2018

20%

45%

Company

Company

Company

Company

Company

Company

15%

10% 5% 5%

Total UK juicy water consumption: X million litres

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% change

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12

UK water plus retailer own label 

Commentary



Commentary

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Commentary

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Zenith UK water plus drinks report 2019

Table 12.1

UK own label flavoured water production, 2016-2018

Million litres

2016

2017

2018

Total market Flavoured water (1) Sparkling flavoured water Still flavoured water Flavoured water as a % of total market Sparkling flavoured % share Still flavoured % share Total own label Sparkling own label Still own label Own label as a % of flavoured water Own label sparkling flavoured % share Own label still flavoured % share (1) Excludes functional and juicy waters Source: Zenith Global

Figure 12.1

UK own label flavoured water consumption share, 2016-2018

% share of flavoured water

40

30 30.0

30.0

30.0

2016

2017

2018

20

10

0

Source: Zenith Global

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Zenith UK water plus drinks report 2019

Table 12.2

UK top 5 own label flavoured water producers, 2016-2018

Million litres

2017 volume

2017 % share

2018 volume

2018 % share

% change

Top 5 Others Total own label water Source: Zenith Global

Figure 12.2

UK own label flavoured water producers, 2018

8% 8%

Company

Company

Company

Company

Company

Company

8% 46% 7%

23%

Total UK own label flavoured water production: X million litres

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13

UK water plus consumer 

Commentary

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Commentary

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Commentary

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Zenith UK water plus drinks report 2019

Table 13.1

GB flavoured water, herbal and premium soft drinks consumer, 2016-2018

% of GB population (1) Consumers

2016

2017

2018

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 (1) For fieldwork period July 2017 - June 2018 Source: Target Group Index (TGI) - GB adults aged 15 and above

Figure 13.1

GB flavoured water, herbal and premium soft drinks consumer, 2016-2018 35 30 30

30

30

% of GB population

25 20 15 10 5 5

5

5

0 2016

2017 regular consumers all consumers

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

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2018

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Zenith UK water plus drinks report 2019

Table 13.2

Litres Per capita consumption Sparkling Still

UK water plus per capita consumption, 2013-2018

2013

2014

2015

2016

2017

2018

2013

2014

2015

2016

2017

2018

Per capita consumption Flavoured Functional Juicy

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

Table 13.3

Litres per person

International flavoured water comparison, 2013-2023f

2013

2018

2023f

Global (1) (1) Includes only flavoured and flavoured functional waters Source: Zenith Global - globaldrinks.com

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CAGR (13-18) (18-23f)

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14

UK water plus value 

Commentary

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Commentary

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Commentary

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Zenith UK water plus drinks report 2019

Table 14.1

UK water plus value, 2016-2018

2016 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 2019

£ VPL

2017 Volume

£ VPL

Volume

2018 £ VPL

Volume

£ VPL

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Figure 14.1

UK water plus market value, 2016-2018

350 300 300

300

300

250 200 150 100 50 0 market value (£ mln)

value per litre (£)

Source: Zenith Global

Table 14.2

UK branded vs private label retail value per litre, 2017-2018

2017 Branded Private label Retail average Includes only flavoured and flavoured functional waters Source: Zenith Global

© Zenith Global Ltd 2019

2018

Zenith UK water plus drinks report 2019

15

Ethical waters / Ethical initiatives 

Commentary

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Commentary

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Commentary

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16

Ongoing challenges

16.1

Maintaining consumer interest

16.1.1 Key challenges 

Commentary Commentary

16.1.2 Future trends

16.2



Commentary



Commentary

Selling ‘hydration with flavour’

16.2.1 Key challenges 

Commentary



Commentary

16.2.2 Future trends

16.3



Commentary



Commentary

The sugar debate

16.3.1 Key challenges 

Commentary



Commentary

16.3.2 Future trends

16.4



Commentary



Commentary

Retailer perception

16.4.1 Key challenges 

Commentary



Commentary

16.4.2 Future trends

16.5



Commentary



Commentary

Stock control & supply

16.5.1 Key challenges 

Commentary

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16.5.2 Future trends

16.6



Commentary



Commentary

Price pressures

16.6.1 Key challenges 

Commentary



Commentary

16.6.2 Future trends 

Commentary



Commentary

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17

Water stewardship



Commentary

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Commentary

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Commentary

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18

Legislation 

Commentary

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Commentary

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Commentary

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Zenith UK water plus drinks report 2019

19

Forecast to 2023 

Commentary

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Commentary



Commentary

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Zenith UK water plus drinks report 2019

Figure 19.1

UK water plus market forecast, 2013-2023f

350 300

million litres

250 200 150 100 50 0 2013

2014

2015

2016

2017

2018

2019f

2020f

2021f

2022f

2023f

Source: Zenith Global

Table 19.1

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 2019

UK forecast water plus consumption by segment, 2018-2023f

2018

2019f

2020f

2021f

2022f

2023f

Zenith UK water plus drinks report 2019

Appendix

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Appendix 1- Legislation 

Commentary



Commentary



Commentary

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Zenith UK water plus drinks report 2019

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 quality.

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 quality.

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. © Zenith Global Ltd 2019

Zenith UK water plus drinks report 2019

Flavoured Water Sweetened with sugar, sweetener or unsweetened with added fruit essence; sparkling natural mineral, spring or bottled drinking water with added flavourings.

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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)

© Zenith Global Ltd 2019

Zenith UK water plus drinks report 2019

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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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 3- Target Group Index (TGI)

Zenith uses Target Group Index (TGI) syndicated surveys to provide actionable on consumer behaviour, purchasing habits, attitudes and motivations. This compliments Zenith’s own data and research in this report.

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

© Zenith Global Ltd 2019

Zenith UK water plus drinks report 2019

Appendix 4- Leading company profiles AG Barr Plc Britvic Plc Clearly Drinks Ltd Coca-Cola European Partners Coca-Cola HBC Northern Ireland Cott Beverages Ltd Danone Waters (UK & Ireland) Get More Vitamin Drinks Highland Spring Group Innocent Montgomery Natural Spring Water Company Nichols Plc One Water Princes Soft Drinks Radnor Hills Mineral Water Company Ltd Talking Rain Beverage Company Trederwen Springs

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A company PLC Address: Tel:

, Website:

Company Structure Ownership: Senior management:

Employees: Subsidiaries:

Company Finances ÂŁ Million, year to Sales Profit before tax

Water Production Location: Source: Lines: Investment:

Advertising

Product Range (water plus)

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Fax: Email:

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Production & Sales Volume (water plus) Million litres Exports UK Sales - sparkling - still NR PET NR Glass

Brand

Retail

OOH

HODTotal 100%

Š Zenith Global Ltd 2019