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Zenith Report on UK Bottled Water April 2012


Zenith Report on UK Bottled Water April 2012

Copyright All copyright in all Zenith reports is reserved. All text, tables, charts and other material contained within this report, which are the exclusive property of Zenith International Ltd, may not be copied, distributed, transferred or displayed without the express written consent of Zenith International Ltd. Liability Whilst every effort has been made to ensure that the information presented in this document is accurate and that the opinions expressed are sound, Zenith International Ltd cannot be made liable for any errors or omissions or for any losses or consequential losses resulting from decisions based on its contents. Zenith International Ltd 7 Kingsmead Square Bath BA1 2AB United Kingdom t +44 (0)1225 327900 f +44 (0)1225 327901 zenithinternational.com


2012 ZENITH REPORT ON UK BOTTLED WATER CONTENTS UK BOTTLED WATER MARKET COMMENTARY Introduction Brief Summary Research overview

1 2 4

2010 UK bottled water market Market overview Economy Weather Media Sector performance

5 5 5 7 8 9

UK packaged water UK bottled water packaging UK bottled water distribution UK bottled water companies UK bottled water groups UK bottled water producers Bottled water exports Bottled water imports Still water consumption Packaged still water brands Carbonated water brands Retailer own label Mineral water consumption Spring water consumption Glass packaged bottled water Plastic packaged bottled water Plain vs flavoured water UK water coolers Bottled water consumer Bottled water value Ethical waters / Ethical initiatives

11 12 12 13 15 15 15 16 18 18 19 19 20 21 21 22 23 24 25 26 28

Key developments in 2011 Industry developments Company developments Brand developments

31 31 32 34

Ongoing challenges Environmental Carbon footprint Water footprint Lightweighting Recycling Tap water

35 35 36 38 39 39 40

Š Zenith International Ltd 2011


Consumer confidence and education Retailer perception Stock control Price pressures Industry consolidation Portfolio diversity Legislation Forecast to 2014 APPENDICES APPENDIX 1 – CHARTS Market overview 1 UK mean temperature, 2006-2011 2 UK sunshine hours, 2008-2011 3 UK rainfall, 2008-2011 4 UK packaged water vs water coolers, 2006-2011 5 UK bottled water packaging, 2011 6 UK bottled water distribution, 2011

42 44 45 46 47 49 50 53 55 55 56 57 58 59 60

Industry structure 7 UK bottled water industry consolidation, 2006-2011 8 Top 5 bottled water companies, 2006-2011 9 Top 5 bottled water groups, 2011 10 Leading UK bottled water producers, 2011

61 62 63 64

Imports and exports 11 UK bottled water exports, 2006-2011 12 UK bottled water imports, 2006-2011 13 Leading UK imported waters, 2011

65 66 67

Market segments 14 UK still water consumption share, 2006-2011 15 Leading UK packaged still water brands, 2011 16 Leading UK packaged sparkling water brands, 2011 17 UK own label water consumption share, 2006-2011 18 UK own label water producers, 2011 19 UK natural mineral water consumption share, 2006-2011 20 Leading UK mineral water brands, 2011 21 Leading UK spring water brands, 2011 22 Leading UK companies in glass, 2011 23 Leading UK companies in plastic, 2011

68 69 70 71 72 73 74 75 76 77

Bottled water market in context 24 UK plain vs flavoured water, 2006-2011 25 UK still vs sparkling flavoured water, 2006-2011 26 UK water cooler market, 2006-2011 27 GB bottled water consumer, 2006-2011

78 79 80 81

Value 28 UK bottled water market value, 2006-2011

82

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Forecasts 29 UK bottled water market forecast, 2006-2016 APPENDIX 2 – TABLES Market overview 1 UK bottled water market, 2006-2011 2 UK bottled water types, 2006-2011 3 UK bottled water: small pack vs cooler, 2006-2011 4 Total UK bottled water: Per capita consumption, 2005-2011 5 UK bottled water packaging, 2011-2011 6 UK bottled water distribution, 2011-2011 7 UK bottled water packaging, 2011

83 85 85 85 86 87 88 88 89

Industry structure 8 Top 25 companies in UK bottled water market, 2010-2011 9 Next 25 companies in UK bottled water market, 2010-2011 10 Top 25 brands in UK bottled water market, 2010-2011 11 Next 25 brands in UK bottled water market, 2010-2011

90 91 92 93

Market segments 12 UK top 10 carbonated water brands, 2010-2011 13 UK top 10 packaged still water brands, 2010-2011 14 UK top 20 mineral water brands, 2010-2011 15 UK top 20 spring water brands, 2010-2011 16 UK top 10 own label water producers, 2010-2011 17 UK top 10 water cooler brands, 2006-2011 18 UK top 10 companies in glass packaging, 2010-2011 19 UK top 10 companies in plastic packaging, 2010-2011

94 94 95 96 97 97 98 98

Production, bottled water consumer, imports and exports 20 Top 10 UK bottled water producers, 2010-2011 21 Top 10 UK produced brands, 2010-2011 22 GB Bottled Water Consumer, 2006-2011 23 UK top 10 water export brands, 2006-2011 24 UK bottled water exports by country, 2006-2011 25 UK bottled water imports by country, 2006-2011 26 UK bottled water import sales by brand, 2006-2011

99 99 100 100 101 101 102

Value 27 UK Bottled Water Value, 2011-2011

103

Ethical Waters 28 UK Ethical Waters, 2008-2011

104

Forecasts 29 UK bottled water consumption by segment, 2011-2016

104

Bottled water market in context 30 UK bottled water in context, 2006-2011 31 International bottled water comparison, 2006-2015

105 105

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APPENDIX 3 - LEADING COMPANY PROFILES AG Barr Plc Angel Springs Holdings Ltd Aqua Direct Ltd Berrington Pure Spring Water Black Mountain Mineral Water Company

107 107 109 111 113 115

Blue Keld Spring Water Brecon Mineral Water Britvic Plc Coca-Cola Enterprises Coca-Cola HBC Northern Ireland

117 119 121 123 125

Cotswold Spring Water Cott Beverages Ltd Danone Waters (UK & Ireland) Ltd Decantae Natural Mineral Water Ecopure Waters Ltd

127 129 131 133 135

Eden Springs UK Fonthill Pure English Spring Water Godlingston Manor Springs Ltd Highland Spring Ltd Hildon Ltd

137 139 141 143 147

Iceni Kingshill Mineral Water Ltd Montgomery Spring Water Company Navson Drinks Neptune (UK)

149 151 153 155 157

Nestlé Waters UK Ltd Prince’s Gate Spring Water Princes Soft Drinks Radnor Hills Mineral Water Company Shepley Spring Ltd

159 162 164 166 168

Swithland Spring Water The Natural Mineral Water Ltd Villa Soft Drinks Ltd Waterbrands Ltd Water Coolers (Scotland) Ltd

170 172 174 176 178

APPENDIX 4 - UK BOTTLED WATER MARKET IN PERSPECTIVE

180

APPENDIX 5 - DEFINITIONS AND SYMBOLS

187

APPENDIX 6 - TARGET GROUP INDEX (TGI)

190

© Zenith International Ltd 2011


Zenith Report: April 2012

UK bottled water

2012

Introduction

This is the twenty-first Zenith Report on the UK Bottled Water Market, and there is now a diverse range of other emerging markets covered by the Zenith Report series. With each 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 2012 Report contains up to date profiles of the industry’s leading bottled water companies, while text, charts and tables analyse recent developments in the UK market. An historical perspective is provided in Appendix 4. The report represents exceptional coverage of the UK bottled water 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.

Cecilia Martinez Market Analyst Zenith International

Š Zenith International Ltd 2012

1


4: UK PACKAGED WATER VS WATER COOLERS, 2006-11 million litres

2006

2007

2008 Packaged

2009

2010

Water Cooler

2011


5: UK BOTTLED WATER PACKAGING, 2011 % share

Others

NR PET R Polycarb

NR Glass Total consumption: million litres


6: UK BOTTLED WATER DISTRIBUTION, 2011 % share Offices

Others

Horeca; pubs, clubs

Convenience, Impulse

Modern Retail

Total consumption: million litres


7: UK BOTTLED WATER INDUSTRY CONSOLIDATION, 2006-11 Percentage Share

2006

2007

2008 Top 5

2009

2010 Top 10

2011


10: LEADING UK BOTTLED WATER PRODUCERS, 2011 % share

Others

Nos. 7 to 10

Company 1

Company 6 Company 5 Company 2

Company 4 Company 3

Total UK bottled water production: million litres


13: LEADING UK IMPORTED WATERS, 2011 % share Others

Brand 5 Brand 1

Brand 4 Brand 3

Brand 2 Total UK bottled water imports: million litres


18: UK OWN LABEL WATER PRODUCERS, 2011 % share

Others Company 6 Company 5

Company 1

Company 4

Company 3 Company 2 Total UK own label production: million litres


22: LEADING UK COMPANIES IN GLASS, 2011 % share Company 1 Others Company 2

Company 3

Company 4

Nos 6 to 10 Company 5 Total UK packaged water in glass: million litres


23: LEADING UK COMPANIES IN PLASTIC, 2011 % share Others

Company 1

Nos 6 to 10

Company 2

Company 5

Company 4 Company 3 Total UK packaged water in plastic: million litres


28: UK BOTTLED WATER MARKET VALUE, 2006-11 market value (£ mln)

value per litre (£)

1600

0.70

1400 1200 0.68

1000 800 600

0.66

400 200 0

0.64 2006

2007

2008

2009

2010

2011


Zenith Report: April 2012

UK bottled water

2012

APPENDIX 5 - DEFINITIONS AND SYMBOLS DEFINITIONS Natural Mineral Water The basic requirements of the UK regulations are:  Must come from a recognised groundwater source. Recognition is granted by local authorities to meet EU standards and requires a lengthy testing process to ensure freedom from pollution and a consistent mineral composition.  Must be bottled at source unless the practise was to tanker to the bottling plan on or before 17th July 1980.  Cannot undergo treatment except for filtration of particles, except in exceptional circumstances.  Nothing can be added to water except carbon dioxide for carbonation.  The water can only be bottled under a single name, described as natural mineral water.  The water must meet strict requirements for microbiological and chemical purity.

Spring Water The basic requirements of the UK regulations are:  Must come from a groundwater source.  Must be bottled at source (unless the practise was to tanker to the bottling plant on or before 23 rd 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 International Ltd 2012

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Zenith Report: April 2012

UK bottled water

2012

These definitions are a simple description of the requirements of the UK bottled water regulations. For a detailed definition please consult the Natural Mineral Water, Spring Water and Bottled Drinking Water Regulations, 1999 and any subsequent amendments. For a detailed review of the implications of the regulations, consult Zenith’s ‘Plain Language Guide to the UK Bottled Water Regulations’. Further information can be found at www.zenithinternational.com and search for Plain Language Guide.

Distribution channels Retail Supermarkets  Multiples and other grocers – Tesco, Sainsbury, Asda, Waitrose, Morrisons, Somerfield, Co-op, 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) 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 International Ltd 2012

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Zenith Report: April 2012

UK bottled water

2012

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

VPL

Value per litre

Š Zenith International Ltd 2012

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UK bottled water

Zenith Report: April 2012

2012

APPENDIX 6 - TARGET GROUP INDEX (TGI) Target Group Index (TGI) syndicated surveys provide actionable single-source data on consumer behaviour, purchasing habits, attitudes and motivations. Established in 1969 and originally focused on the British market, TGI has since expanded to cover more than 65 countries. In Britain TGI is representative of all adults aged 15+ and is used by over 300 companies, including brand owners, media owners and advertising agencies. TGI enables    

Awareness of market trends and dynamics Identification of opportunities for new and existing brand development Accurate description of target groups Improved marketing strategies and advertising campaigns

TGI is    

Insightful and actionable Information on usage of over 4,000 brand across 500 product areas Updated four times a year Single source and independent of vested interest

www.kantarmedia-tgigb.com 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.

Sandy Livingstone - Director +44 (0)20 8433 4090 sandy.livingstone@kantarmedia.com www.tgi-insights.com

© Zenith International Ltd 2012

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UK Bottled Water 2012 Report Sample