New Zealand Water Cooler Report 2014

zenithinternational specialist consultants to the food and drink industries worldwide

Zenith Report New Zealand Water Coolers 2014

STRATEGY & MANAGEMEN T



MERGERS & ACQUISITIONS



COMMERCIAL & MARKET

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OPERATIONS & TECHNICAL

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WATER & GEOTHERMAL

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ENVIRONMENT & CARBON

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PACKAGING & DISTRIBUTION

Table of Contents Intoduction Bottled coolers and point of use market overview Bottled coolers and point of use - industry developments Bottled coolers - water volume and units Bottled coolers - throughput, contract lengths and cancellations Bottled coolers - outlets Bottled coolers - machine types and water types Bottled coolers - legislation and maintenance Point of use - units and replacement rate Point of use - outlets Point of use - machine types Point of use - rented/sold split, maintenance and additional services Price structure and evenue indicators - bottled coolers and point of use Leading bottled cooler companies (unit and water volume) Leading bottled cooler companies (unit and water volume) Leading bottled cooler brands (water volume) Leading point of use companies (unit) Forecast - total bottled water market Forecast - bottled coolers and point of use Forecast - market % share split - bottled coolers vs point of use Company profiles Appendix - definitions 2 Š Zenith International Ltd 2014

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zenithinternational specialist consultants to the food and drink industries worldwide

Introduction Methodology In order to complete this work Zenith’s team of analysts and consultants have conducted primary interviews with key industry participants and representative bodies as required. Zenith has also made reference to its internal data library and global databases, alongside other third party sources. Throughout its ongoing research, Zenith also depends upon the goodwill and co-operation of operators active in the marketplace and, as such, achieves a high level of accuracy.

Liability Whilst every effort has been made to ensure that the information presented in this document is accurate and that the opinions expressed are sound, Zenith International Ltd cannot be made liable for any errors or omissions or for any losses or consequential losses resulting from decisions based on its contents.

Zenith International Ltd 7 Kingsmead Square Bath BA1 2AB United Kingdom t +44 (0) 1225 327900 f +44 (0) 1225 327901 www.zenithinternational.com

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Market overview Bottled coolers and point of use 2011

2012

2013

% 12-13

Total bottled water in million litres Per capita consumption Water in small pack in million litres (up to 10l) Per capita consumption Bottled water coolers Units Units per '000 people Million litres Per capita consumption Point of Use Units Units per '000 people Total coolers Units POU % share of total

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Market overview Bottled coolers and point of use  Commentary  Commentary  Commentary  Commentary  Commentary

5

Market overview Bottled coolers and point of use  Commentary  Commentary  Commentary  Commentary  Commentary

6

Market overview Bottled coolers and point of use - industry developments  Commentary  Commentary  Commentary  Commentary  Commentary

7

Market structure Bottled coolers - water volume and units

 Commentary  Commentary  Commentary

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Market structure Bottled coolers - throughput, contract lengths and cancellations Throughput Litres per cooler

2012

2013

Cancellations

2012

2013

Quit rate %

15l bottles per cooler per month

Throughput

 Commentary Contract lengths

 Commentary Cancellations

 Commentary

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Market structure Bottled coolers - outlets

Outlets

 Commentary  Commentary  Commentary

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Market structure Bottled coolers - machine types and water types

Machine types

 Commentary  Commentary Water types

 Commentary

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Market structure Bottled coolers - legislation and maintenance Legislation

 Commentary  Commentary

Maintenance and additional services

 Commentary  Commentary

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Market structure Point of use - units and replacement rate Units added, 2013

BWC to POU conversions

New POU

Replacement rate % Number of units

 Commentary  Commentary  Commentary

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Market structure Point of use - outlets

Outlets

 Commentary  Commentary

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Market structure Point of use - machine types

 Commentary

15

Market structure Point of use - rented/sold split, maintenance and additional services

Rented/sold

 Commentary

Maintenance and additional services

 Commentary

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Price structure and revenue indicators Bottled coolers and point of use Bottled water coolers

2012

2103

Point of use

Average monthly rental (NZ$)

Average monthly rental (NZ$)

Average bottle price (NZ$)

Average sales price per unit (NZ$)

Revenue from rental (NZ$)

Revenue from rental (NZ$)

Revenue from water sales (NZ$)

Revenue from sold units (NZ$)

Total revenue (NZ$)

Total revenue (NZ$)

2012

2013

 Commentary  Commentary  Commentary

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Leading companies Bottled cooler companies (unit and water volume) Units in December

Type of company

2011

2012

2013

% share 2013

% 12-13

Type of company

2011

2012

2013

% share 2013

% 12-13

Company 1 Company 2 Company 3 Company 4 Others Total market Million litres Company 1 Company 2 Company 3 Company 4 Others Total market

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Leading companies Bottled cooler companies (unit and water volume)  Commentary  Commentary

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Leading brands Bottled cooler brands (water volume) Million litres

Company

2011

2012

2013

% share 2013

% 12-13

Brand 1 Brand 2 Brand 3 Brand 4 Brand 5 Others Total market

 Commentary

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Leading companies Point of use companies (unit) Units in December

Type of company

2011

2012

2013

% share 2013

% 12-13

Company 1 Company 2 Company 3 Others Total market

 Commentary

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Forecasts Total bottled water market 2011

2012

2013

2014

2015

2016

2017

2018

% av 14-18

Total bottled water in million litres % change Per capita consumption Water in small pack in million litres (up to 10l) % change Per capita consumption

 Commentary  Commentary  Commentary

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Forecasts Bottled coolers and point of use 2011

2012

2013

2014

2015

2016

2017

2018

% av 14-18

2011

2012

2013

2014

2015

2016

2017

2018

% av 14-18

2011

2012

2013

2014

2015

2016

2017

2018

% av 14-18

2011

2012

2013

2014

2015

2016

2017

2018

% av 14-18

Total bottled water in million litres % change Per capita consumption Water in small pack in million litres (up to 10l) % change Per capita consumption

Bottled water coolers Units % change Units per '000 people Million litres % change Per capita consumption Point of Use Units % change Units per '000 people Total coolers Units % change POU % share 2012

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Forecasts Market % share split - bottled coolers vs point of use

 Commentary  Commentary

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Company A

Category Address: Tel: Email: Website:

Company Structure Ownership: Senior management:

Water Production Location: Source:

Product Range Brand

Description

Pack type

Size (litres)

Production and sales volume Million Litres Domestic sales Production

2012

2013

2012

2013

Cooler Analysis Number of units Bottled coolers

Packaging 2013

Commentary

Š Zenith International Ltd 2014

Appendix Definitions Bottled water: All water sold in containers for human consumption.

Bottled water cooler: A unit that dispenses bottled purified, spring or mineral water. The unit can be installed under a rental and service agreement or purchased outright by the customer. Water is delivered direct to the customer by a distributor and empty bottles are taken away. New bottles are placed upside down on top of the machine. A feed tube spike from the machine penetrates a watertight cap in the bottle and opens a valve within the cap, thereby allowing water to flow into the machine. Water is dispensed from cold/hot/ambient taps at the front of the unit. Disposable cups are normally provided in a tube dispenser on the front or side. Machines are usually either freestanding or table-top. They usually take larger bottle formats (bigger than 10 litres) than those distributed in packaged formats that are available through usual retail outlets such as supermarkets etc.

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

Bottler-distributors: Bottler-distributors have their own water source, fill bottles under their own brand, install their own cooler 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.

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.

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

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Appendix Definitions Point of use cooler (POU): A water cooler device that is plumbed into a potable water supply and improves the quality of the water through some method of filtration or purification. Such machines rarely have a drainage system, unless the method of filtration is reverse osmosis or individual country legislation requires it; otherwise the water is either consumed at the point of release or enters the drip tray. The water is usually chilled, heated or carbonated. Units can be faucet/tap, freestanding or table-top. Filtration methods include reverse osmosis, ultra violet (UV) and carbon filter. Faucet/tap units typically utilise carbon and combined staged filtration to deliver filtered water – a ‘diverter’ may be incorporated to bypass the filtration process for dishwashing, etc.

Throughput: Bottles used per cooler per month, calculated by taking volume from the current year and dividing it by the average number of units from the current and one previous year.

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