Zenith Global 2016 Global Children's Bottled Water Report

June 2016

2016 Children’s Bottled Water Innovation A review of recent key trends and new product development

Research Note In undertaking its research for this report, Zenith has utilised its internal data library and global databases, alongside other third party sources and interviews with the industry. Throughout its on-going research, Zenith also depends upon the goodwill and co-operation of operators active in the marketplace, and, as such, seeks to achieve a high level of accuracy.

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 International 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 International 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 International from any liability related to the report distribution. Such readers however will not be considered “users� of this report.

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Contents

The contacts at Zenith International in connection with this report are: Monika Fedor Consultant Zenith International Ltd., UK Tel: +44 1225 327936 mfedor@zenithinternational.com Esther Renfrew Market Intelligence Director Zenith International Ltd., UK

Section

Page

1. Introduction and scope

4

2. Category overview

7

 Recommended children’s water consumption  Trends in small-pack and children’s bottled water consumption  Commentary: trends in children’s bottled water innovation  The price of children’s bottled water  The current and future population of children  Opportunity in the children’s bottled water market

Tel: +44 1225 327900 erenfrew@zenithinternational.com

 Insights and opportunities

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

3. Brand profiles

20

3.1 Brand profiles: Global brands

21

3.2 Brand profiles: West Europe

24

3.3 Brand profiles: East Europe

54

3.4 Brand profiles: North America

66

3.5 Brand profiles: Latin America

77

3.6 Brand profiles: Asia Pacific

87

3.7 Brand profiles: Middle East

98

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 Challenges and barriers

Page 3

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zenithinternational 1. Introduction and scope

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1. Introduction and Scope Children’s bottled water innovation

Overview The aim of this report is to offer a global overview of the children’s bottled water market, and to assess product development in the sector on an international scale. Featuring over 70 detailed product profiles this report identifies and summarises innovation trends in order to understand what opportunities exist for new product development.

Scope A global market overview of trends and developments, featuring brand profiles to benchmark against leading and innovative children’s bottled water products worldwide, tracking recent innovation within the children’s bottled water category as well as investigating the future outlook of the market.

Categories covered in this report:  Plain bottled water positioned towards children  Flavoured bottled water positioned towards children  Functional bottled water positioned towards children Countries covered in this report: West Europe: Austria, France, Germany, Greece, Italy, Netherlands, Spain, Switzerland, UK East Europe: Croatia, Czech Republic, Poland, Romania, Russia, Slovakia North America: Canada, USA Latin America: Brazil, Chile, Mexico, Uruguay Asia Pacific: Australia, China, Indonesia, Japan, Malaysia, New Zealand Middle East: Iran, Turkey, United Arab Emirates

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1. Introduction and Scope Children’s bottled water innovation

Definition: Children’s bottled water For the purpose of this report, Zenith has limited its research scope using the following definition:  Plain, flavoured, functional, and flavoured-functional waters targeted towards either children and/or infants (ages 0-14)  Includes:  Plain water - still, sparkling water and lightly carbonated water; natural mineral water, spring water, bottled drinking water  Flavoured water - water sweetened with sugar, sweetener or unsweetened with added fruit essence (max. 5% fruit content); sparkling and still natural mineral, spring or bottled drinking water with added flavourings  Functional water - water with added botanicals, vitamins, minerals, oxygen or other functional ingredients  Products with fruit juice content greater than 5% which are positioned/marketed as flavoured water Coverage Established and new entrants in the children’s bottled water market between 2013 and 2016 with an emphasis on innovation and new product development.

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zenithinternational 2. Category overview

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2. Category Overview Recommended children’s water consumption Children’s water consumption

 Commentary

Recommended water consumption for children

Sex

Age group

Boys and Girls

2 to 3 years

Boys and Girls

4 to 8 years

Girls

9 to 13 years

Boys

9 to 13 years

Amount of fluid from drinks and food (litres/day)

Amount of fluid from drinks only (litres/day)

Source: European Food Safety Authority (EFSA), 2010

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2. Category Overview Trends in small-pack and children’s bottled water consumption

Global small-pack bottled water market

Small-pack water sales* (bln litres)

 Commentary

(* small-pack water: plain water in less than 2 litre format, flavoured and flavoured functional water).

2011

2015

2020f

Children’s bottled water  Commentary

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2. Category Overview Commentary: trends in children’s bottled water innovation Children’s bottled water product trends

 Commentary  Commentary  Commentary

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2. Category Overview Commentary: trends in children’s bottled water innovation Children’s bottled water product trends (cont.)

 Commentary  Commentary

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2. Category Overview Commentary: trends in children’s bottled water innovation Leading children’s bottled water brands

 Commentary

Established children’s bottled water markets  Commentary

Opportunities for children’s bottled water  Commentary

Other factors to consider  Commentary

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2. Category Overview Commentary: the price of children’s bottled water The price of children’s bottled water Brand Brand

Average price per litre of standard 330ml / 500ml bottle (local currency)

Average price per litre of children’s bottled water 330ml / 500ml (local currency)

Difference in average price per litre

Price

Price

%

 Commentary

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Page 13

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2. Category Overview The current and future population of children The current and future population of children  Commentary

Percentage of population by age group, by region, 2016e

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2. Category Overview The current and future population of children % of population 0-14 years 2016e

Population 0-14 years 2016e (mln)

% change in population 11-15

% change in population 16e-21f

North America West Europe East Europe Central & Latin America Africa Asia Pacific Middle East World

Future population growth of 0-14 years by region in absolute number and % change, 2016e-2026f

Region +X% +X million

Global outlook +X % +X million Source: United Nations Population Division

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2. Category Overview Opportunity in the children’s bottled water market Size of smallpack bottled water market* (mln litres), 2015

% of population 0-14 years, 2016

Population of 0-14 years (millions) 2016

Potential size of CBW market (mln litres)

Potential per capita consumption of CBW (litres)

Potential daily CBW per capita consumption (litres)

Potential daily ppc as % of RDA of fluid intake from drinks

North America West Europe East Europe Central & Latin America Asia Pacific Middle East Africa World Source: United Nations Population Division & Zenith International Potential in the children’s bottled water market  Commentary

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2. Category Overview Opportunity in the children’s bottled water market Market volume of small-pack bottled water and potential market for children’s bottled water by region, 2016 & 2021 Region

Region

Region

Region

Region

Volume (mln litres)

Region

2016e

2021f

2016e

2021f

2016e

2016e

2021f

2021f

2016e

2021f

2016e

2021f

Future potential in the children’s bottled water market:  Commentary

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2. Category Overview Insights and opportunities

INSIGHTS AND OPPORTUNITIES  Commentary

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2. Category Overview Challenges and barriers

CHALLENGES AND BARRIERS  Commentary

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zenithinternational 3. Brand profiles

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zenithinternational 3.1 Brand profiles

Global Players

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zenithinternational 3.2 Brand profiles

West Europe

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West Europe Brands overview

Country

Company

Brand

Product Type

Austria

Vöslauer

Vöslauer Baby

Water

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Page 23

Variants 750ml; Multipacks available

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West Europe Austria

Vöslauer Baby Vöslauer, Austria http://www.voeslauer.com/

Product information: From Austrian natural mineral water brand Vöslauer, Vöslauer Baby is a water designed for infant consumption. The waters balanced mineralisation and low sodium content is suitable for infant consumption both directly and in the preparation of food and formula. The 0.75 litre bottle comes in an easily carried multipack of 6, in fun packaging which features baby animal stickers.

Recent innovation: In 2015 the bottle for Vöslauer Baby has been redesigned, with a move from a 500ml to a 750ml format, in addition to updating the bottle design.

Launch date: May 2015 (new packaging format) Positioning: Infants Pack size & type: PET bottle: 0.75l (also available in multipack of 6) Price / Distribution: €0.65 for 750ml bottle / Ausria Marketing Profile: “With Vöslauer Baby in a practical light 0.75 l bottle you are always perfectly ready to feed of your tots.”

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zenithinternational 3.3 Brand profiles

East Europe

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East Europe Brands overview

Country

Company

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Brand

Product Type

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Variants

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zenithinternational 3.4 Brand profiles

North America

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North America Brands overview

Country

Company

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Brand

Product Type

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Variants

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zenithinternational 3.5 Brand profiles

Latin America

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Latin America Brands overview

Country

Company

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Brand

Product Type

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Variants

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zenithinternational 3.6 Brand profiles

Asia Pacific

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Asia Pacific Brands overview

Country

Company

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Brand

Product Type

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Variants

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zenithinternational 3.7 Brand profiles

Middle East

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Middle East Brands overview

Country

Company

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Brand

Product Type

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Variants

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