Zenith Global 2016 UK Water Drinks Report

zenithinternational enithinternational

UK Water Drinks 2016 th

25 Annual Report

March 2016

Zenith Report on UK Water Drinks March 2016 25th Edition

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.

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UK water drinks report

2016

Introduction This is the twenty-fifth 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 2016 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 2.

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 International

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UK water drinks report

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Contents Brief Summary-------------------------------------------------------------------------------------------------- 2 Research Overview -------------------------------------------------------------------------------------------- 2 UK Water Drinks Market ------------------------------------------------------------------------------------ 2 Market Overview------------------------------------------------------------------------------------------ 2 1.1

Economy ---------------------------------------------------------------------------------------------------------------------------- 2

1.2

Weather ----------------------------------------------------------------------------------------------------------------------------- 2

1.3

Media -------------------------------------------------------------------------------------------------------------------------------- 3

UK water drinks market -------------------------------------------------------------------------------- 4 Table 1: UK water drinks market, 2010-2015 ------------------------------------------------------------------------------------- 4

UK water drinks companies --------------------------------------------------------------------------- 6 Table 2: Top 25 companies in UK bottled water drinks market, 2014-2015 --------------------------------------------- 6 Table 3: UK water drinks market, 2014-2015 ------------------------------------------------------------------------------------- 8

2015 UK Plain Bottled Water Market ----------------------------------------------------------------- 11 Market Overview---------------------------------------------------------------------------------------- 11 Sector Performance------------------------------------------------------------------------------------ 11 Table 1: UK plain bottled water market, 2009-2015 --------------------------------------------------------------------------- 11 Table 2: Total UK plain bottled water types, 2009-2015 --------------------------------------------------------------------- 12

UK plain packaged water ----------------------------------------------------------------------------- 13 UK plain bottled water companies ---------------------------------------------------------------- 13 Table 3: Top 25 companies in UK bottled water market, 2014-2015 ----------------------------------------------------- 14 Table 4: Next 25 companies in UK bottled water market, 2014-2015 ---------------------------------------------------- 15 Table 5: Top 25 brands in UK bottled water market, 2014-2015 ----------------------------------------------------------- 18 Table 6: Next 25 brands in the UK plain bottled water market ------------------------------------------------------------- 19 Table 7: UK plain bottled water: small pack vs cooler, 2009-2015--------------------------------------------------------- 20

UK plain bottled water consumer ----------------------------------------------------------------- 21 Table 8: Total UK plain bottled water: per capita consumption, 2009-2015 -------------------------------------------- 21 Table 9: International plain bottled water comparison ----------------------------------------------------------------------- 22

Plain bottled water value ----------------------------------------------------------------------------- 24 Table 10: Plain bottled water value, 2013-2015 -------------------------------------------------------------------------------- 24

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Table 11: UK plain bottled water value per litre by pack size, 2014-2015 ----------------------------------------------- 25

Plain vs. Water Plus ------------------------------------------------------------------------------------ 26 Forecast to 2020----------------------------------------------------------------------------------------- 27 Table 12: UK plain bottled water consumption by segment, 2015-2020f ----------------------------------------------- 27

2015 UK water plus market ------------------------------------------------------------------------------- 30 Market overview ---------------------------------------------------------------------------------------- 30 Sector performance ------------------------------------------------------------------------------------ 30 Table 1: UK water plus market, 2009-2015 -------------------------------------------------------------------------------------- 30 Table 2: Total UK water plus types, 2009-2015 --------------------------------------------------------------------------------- 31

UK water plus companies ---------------------------------------------------------------------------- 32 Table 3: Top 15 companies in UK water plus market, 2014-2015 ---------------------------------------------------------- 33

Water plus brands -------------------------------------------------------------------------------------- 36 Table 4: Top 20 brands in UK water plus market ------------------------------------------------------------------------------- 36 Table 5: Top 20 brands in UK water plus market ranking, 2015 ------------------------------------------------------------ 37

Water plus consumer---------------------------------------------------------------------------------- 38 Table 6: Total UK water plus: per capita consumption, 2009-2015-------------------------------------------------------- 38 Table 7: International flavoured water comparison, 2010-2020f ---------------------------------------------------------- 39

Water plus value ---------------------------------------------------------------------------------------- 39 Table 8: UK flavoured water value, 2013-2015 --------------------------------------------------------------------------------- 40

Forecast to 2020----------------------------------------------------------------------------------------- 41 Table 9: UK water plus consumption by segment, 2015-2020f ------------------------------------------------------------- 42

APPENDICES ----------------------------------------------------------------------------------------------------Appendix 1 - Leading company profiles ------------------------------------------------------------- AP 1 AG Barr Plc ------------------------------------------------------------------------------------------------------------------- AP 2 Angel Springs Holdings Ltd ------------------------------------------------------------------------------------------------ AP 4 Berrington Pure Spring Water Company -------------------------------------------------------------------------------- AP 6 Best Water Technology Ltd------------------------------------------------------------------------------------------------ AP 8 Black Mountain Mineral Water Company ----------------------------------------------------------------------------- AP 10 Brecon Mineral Water ---------------------------------------------------------------------------------------------------- AP 12 Britvic Plc -------------------------------------------------------------------------------------------------------------------- AP 14 CBL Drinks Ltd -------------------------------------------------------------------------------------------------------------- AP 16 Coca-Cola Enterprises ----------------------------------------------------------------------------------------------------- AP 19 Coca-Cola HBC Northern Ireland ------------------------------------------------------------------------------------- AP 21

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Cooleraid -------------------------------------------------------------------------------------------------------------------- AP 23 Cott Beverages Ltd --------------------------------------------------------------------------------------------------------- AP 25 Danone Waters (UK & Ireland) ------------------------------------------------------------------------------------------ AP 27 Decantae Natural Mineral Water --------------------------------------------------------------------------------------- AP 31 Eden Springs UK Ltd ------------------------------------------------------------------------------------------------------- AP 33 Edgar’s Water --------------------------------------------------------------------------------------------------------------- AP 35 Fonthill ----------------------------------------------------------------------------------------------------------------------- AP 37 Harrogate Water Brands Ltd -------------------------------------------------------------------------------------------- AP 39 Highland Spring Group ---------------------------------------------------------------------------------------------------- AP 41 Hildon Ltd ------------------------------------------------------------------------------------------------------------------- AP 43 Iceni Waters Ltd ------------------------------------------------------------------------------------------------------------ AP 47 Innocent Drinks Ltd -------------------------------------------------------------------------------------------------------- AP 49 Kingshill Mineral Water Ltd ---------------------------------------------------------------------------------------------- AP 51 Montgomery Spring Water Company ---------------------------------------------------------------------------------- AP 53 Navson Ltd ------------------------------------------------------------------------------------------------------------------ AP 56 Nestlé Waters UK Ltd ------------------------------------------------------------------------------------------------------ AP 58 Nichols Plc ------------------------------------------------------------------------------------------------------------------ AP 61 One Water------------------------------------------------------------------------------------------------------------------- AP 63 Princes Gate Spring Water ----------------------------------------------------------------------------------------------- AP 65 Princes Soft Drinks --------------------------------------------------------------------------------------------------------- AP 68 Radnor Hills Mineral Water Company Ltd ---------------------------------------------------------------------------- AP 70 Roxane UK Ltd -------------------------------------------------------------------------------------------------------------- AP 72 Shepley Spring Ltd --------------------------------------------------------------------------------------------------------- AP 74 Swithland Spring Water --------------------------------------------------------------------------------------------------- AP 76 Trederwen Springs --------------------------------------------------------------------------------------------------------- AP 78 Water Coolers (Scotland) Ltd -------------------------------------------------------------------------------------------- AP 80

Appendix 2 - UK bottled water market in perspective --------------------------------------- AP 82 Appendix 3 - Legislation ------------------------------------------------------------------------------- AP 92 Appendix 4 - Definitions and symbols ------------------------------------------------------------- AP 95 Appendix 5 - Target Group Index (TGI) --------------------------------------------------------- AP 99

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UK water drinks report

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Brief Summary 1.

Commentary

2.

Commentary

3.

Commentary

Research Overview In compiling its research, Zenith International 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).

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UK water drinks report

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UK Water Drinks Market Macro Overview 1.1 Economy  Commentary

1.2 Weather 

Commentary

UK mean temperature, 2010-15 10.0

degrees centigrade

9.5 9.0

9.00

9.00

9.00

9.00

9.00

9.00

2010

2011

2012

2013

2014

2015

8.5 8.0 7.5 7.0

UK sunshine hours, 2013-15 250

sunshine hours

200 150 100 50 0 Jan

Feb Mar Apr May Jun Jul 2013 2014

Aug Sep Oct Nov Dec 2015

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UK rainfall 2013-2015 250

rainfall, mm

200 150 100 50 0 Jan

Feb Mar Apr May Jun 2013

Jul

2014

Aug Sep Oct Nov Dec 2015

1.3 Media  Commentary

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UK water drinks market Table 1: UK water drinks market, 2010-2015 Million litres

2010

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 International

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200

2016

UK water drinks, 2010-2015 million litres

150

100

50

0 2010

2011

2012

Plain

2013

2014

2015

Waterplus

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UK water drinks companies Table 2: Top 25 companies in UK bottled water drinks market, 2014-2015 Million litres

2014 volume

2014 2015 share volume

2015 2015 share ranking

Company 1

1

Company 2

2

Company 3

3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Top 25 Others Total market Top 5 Top 10 Source: Zenith International

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Top 5 UK water drinks companies, 2015 Company 1, 10.0% Company 2, 10.0%

Company 3, 10.0% Others, 50.0%

Company 4, 10.0%

Company 5, 10.0%

Total UK mineral water: X million litres

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Table 3: UK water drinks market, 2014-2015 Million litres (1)

2014 volume

2014 2015 share volume

2015 share

Brand Rank

Brand 1

1

Brand 2

2

Brand 3

3 4 5 6 7 8 9 10 11 12 13 14 15 16 16 18 19 20 21 22 23 24 25

Top 25 Others Total market Top 5 Top 10 (1) Branded water volumes only (2) Brands listed include volumes of sub-brands (plain, flavoured, functional and juicy waters) Source: Zenith International

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Leading UK water drinks brands, 2015 Brand 1, 10.0%

Brand 2, 10.0%

Brand 3, 10.0% Others, 50.0%

Brand 4, 10.0%

Brand 5, 10.0%

Total UK mineral water: X million litres

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UK Plain Water Market

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2015 UK Plain Bottled Water Market Market Overview  Commentary

Sector Performance  Commentary

Table 1: UK plain bottled water market, 2009-2015 Million litres

2009

2010

2011

2012

2013

2014

2015

Production Exports Imports Consumption

Production % change Exports as % of production Imports as % consumption Consumption % change Litres per person Source: Zenith International

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Table 2: Total UK plain bottled water types, 2009-2015 Million litres

2009

2010

2011

2012

2013

2014

2015

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 International

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UK plain packaged water vs coolers, 2010-2015 250

million litres

200

150

100

50

0 2010

2011

2012 Packaged

2013

2014

2015

Water Cooler

UK plain packaged water  Commentary

UK plain bottled water companies  Commentary

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Table 3: Top 25 companies in UK bottled water market, 2014-2015 Million litres

2014 2014 volume %share

2015 2015 volume %share

2015 ranking Packaged Cooler Total

Company 1 Company 2 Company 3

Top 25 Others Total market Top 5 Top 10 Source: Zenith International

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Table 4: Next 25 companies in UK bottled water market, 2014-2015 Million litres

2014 2014 volume % share

2015 ranking 2015 2015 Packaged Cooler Total volume % share

Company 25 Company 26 Company 27

Top 25 Next 25 Others Total market Source: Zenith International

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UK plain bottled water industry consolidation, 2010-15 60

% share

50 40 30 20 10 0 2010

2011

2012 Top 5

2013

2014

2015

Top 10

Top 5 plain bottled water companies, 2010 & 2015

Company 1

100 100

Company 4

100 100

Company 3

100 100

Company 2

100 100

Company 1

100 100 0

40

80

million litres

2010 2015

120

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Top 5 UK plain bottled water companies, 2015 Company 1 , 10.0% Company 2, 10.0% Others, 50.0%

Company 3, 10.0%

Company 4 , 10.0% Company 5, 10.0% Total consumption: X million litres

UK bottled water producers, 2015 Company 1 , 10.0% Company 2, 10.0%

Others, 50.0%

Company 3, 10.0%

Company 4 , 10.0% Company 5, 10.0%

Total UK bottled water production: X million litres

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Table 5: Top 25 brands in UK bottled water market, 2014-2015 Million litres (1)

2014 2014 % 2015 2015 volume share volume % share

Brand Rank

Brand 1

1

Brand 2

2

Brand 3

3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Top 25 Others Total market Top 5 Top 10 Source: Zenith International

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Table 6: Next 25 brands in the UK plain bottled water market Million litres (1)

2014 2014 2015 2015 volume % share volume % share

Brand Rank

Brand 25 Brand 26 Brand 27

Top 25 Next 25 Others Total market Source: Zenith International

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Table 7: UK plain bottled water: small pack vs cooler, 2009-2015 Million litres

2009

2010

2011

2012

2013

2014

2015

2009

2010

2011

2012

2013

2014

2015

2009

2010

2011

2012

2013

2014

2015

Total consumption Sparkling Still Total consumption Small pack Water cooler Total small pack water Packaged sparkling Packaged still

% change Total consumption Sparkling Still Total consumption Small pack Water cooler Total small pack water Packaged sparkling Packaged still

% share Total consumption Sparkling Still Total consumption Small pack Water cooler Total small pack water Packaged sparkling Packaged still Source: Zenith International

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UK plain bottled water consumer  Commentary

Table 8: Total UK plain bottled water: per capita consumption, 2009-2015 Litres

2009

2010

2011

2012

2013

2014

2015

2009

2010

2011

2012

2013

2014

2015

Per capita consumption Sparkling Still

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 International

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Table 9: International plain bottled water comparison CAGR Litres per person

2010

2015

2020f (10-15)

(15-20f)

United States

France Germany Italy Spain United Kingdom West Europe

Poland East Europe

China Asia Pacific

Global Source: Zenith International - globaldrinks.com

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GB plain bottled water consumption, 2010-15

12 % of GB population

10 8 6 4 2 0 2010

2011

2012

Regular consumers

2013

2014

2015

All consumers

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Plain bottled water value  Commentary

Table 10: Plain bottled water value, 2013-2015 2013 Volume

£ VPL

2014 £m Volume Value

£ VPL

2015 £m Volume Value

£ VPL

£m Value

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 International

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UK plain bottled water market value, 2010-15 1200

1.20

1000

1.00

800

0.80

600

0.60

400

0.40

200

0.20

0

0.00 2010

2011 2012 2013 market value (£ mln)

2014 2015 value per litre (£)

Table 11: UK plain bottled water value per litre by pack size, 2014-2015 Pack size

2014

2015

Growth

Spark to 2 l Still to 2 l Still 2.1 - 10 l Still > 10.1 l Total Source: Zenith International

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Plain vs. Water Plus  Commentary

UK plain vs flavoured water, 2010-15 1200

million litres

1000 800 600 400 200 0 2010

2011

2012

2013

Plain packaged

2014

2015

Flavoured

UK still/sparkling flavoured water, 2013-15 250 200

million litres

100

100

100

100

100

100

2013

2014

2015

150 100 50 0 Still

Sparkling

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Forecast to 2020  Commentary

Table 12: UK plain bottled water consumption by segment, 2015-2020f Million litres

2015

2016f

2017f

2018f

2019f

2020f

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 International

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UK plain bottled water market forecast, 2010-20

1500 million litres

1000

500

0 2010

2011

2012

2013

2014

2015

2016f

2017f

2018f

2019f

2020f

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UK Water Plus Market

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2014 UK water plus market Market overview  Commentary

Sector performance  Commentary

Table 1: UK water plus market, 2009-2015 Million litres

2009

2010

2011

2012

2013

2014

2015

Production Imports Consumption

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

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Table 2: Total UK water plus types, 2009-2015 Million litres

2009

2010

2011

2012

2013

2014

2015

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 International

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UK water plus, 2010-15 160

million litres

140 120 100 80 60 40 20 0 2010

2011

2012 Flavoured

2013 Functional

Juicy

2014

2015

UK water plus companies  Commentary

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Table 3: Top 15 companies in UK water plus market, 2014-2015 Million litres

2014 2014 volume % share

2015 2015 2015 Rank volume % share

Company 1 Company 2 Company 3

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

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UK water plus industry consolidation, 2014-15 45.0

% share

40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 2014

Top 5

2015

Top 10

Top 5 water plus companies, 2014 & 2015

million litres

Company 5

2014

Company 4

2015 Company 3

Company 2

Company 1 0

20

40

60

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Top 5 UK water plus companies, 2015 Company 1, 10.0% Company 2, 10.0%

Others, 50.0%

Company 3, 10.0%

Company 4, 10.0% Company 5 , 10.0% Total consumption: X million litres

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Water plus brands Table 4: Top 20 brands in UK water plus market Million litres

2014 2014 volume % share

2015 2015 2015 Rank volume % share

Brand 1 Brand 2 Brand 3

Top 20 Others (3) Total market Top 5 Top 10 Source: Zenith International

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Table 5: Top 20 brands in UK water plus market ranking, 2015 2015 ranking Million litres

Flavoured Functional

Juicy

Total

Brand 1

1

Brand 2

2

Brand 3

3 4 5

6 7 8 9 9

11 12 13 14 15

16 17 17 19 20 Source: Zenith International

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Water plus consumer 

Commentary

Table 6: Total UK water plus: per capita consumption, 2009-2015 Litres

2009

2010

2011

2012

2013

2014

2015

2009

2010

2011

2012

2013

2014

2015

Per capita consumption Sparkling Still

Per capita consumption Flavoured Functional Juicy

% change Per capita consumption Sparkling Still

Per capita consumption Flavoured Functional Juicy Source: Zenith International

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Table 7: International flavoured water comparison, 2010-2020f CAGR Litres per person

2010

2015

2020

(10-15)

(15-20)

United States

France Germany Italy Spain United Kingdom West Europe

Poland East Europe

China Asia Pacific

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

Water plus value  Commentary

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Table 8: UK flavoured water value, 2013-2015 2013 Volume

£ VPL

2014 £m Volume Value

£ VPL

2015 £m Volume Value

£ VPL £m Value

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 International

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UK water plus market value, 2013-15 120 100

1.20

100

100

100

1.00

80

0.80

60

0.60

40

0.40

20

0.20

0

0.00 2013

2014 market value (£ mln)

2015 value per litre (£)

Forecast to 2020 

Commentary

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Table 9: UK water plus consumption by segment, 2015-2020f Million litres

2015

2016f

2017f

2018f

2019f

2020f

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 International

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UK water drinks report 200

2016

UK water plus market forecast, 2010-20f million litres

100

100

100

100

100

100

100

2010

2011

2012

2013

2014

2015

100

100

100

100

100

0 2016f 2017f 2018f 2019f 2020f

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APPENDIX 1 – LEADING COMPANY PROFILES

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AP 1

March 2016

Zenith Report

COMPANY NAME Address: Tel: Website:

Fax: Email:

Company Structure Ownership: Senior management:

Employees: Subsidiaries:

Related activities: Non-related activities:

Company Finances £ Million, year to Jan

2009

2010

2011

2012

2013

2014

2015

Sales Profit before tax

Water Production Location:

Source: Lines:

Investment:

Product Range Brand Name

© Zenith International Ltd 2016

Description Still- Spring

Pack TypeSize (litres) NR PET 0.33 0.75

0.5 1.5

AP

March 2016

Zenith Report

Production & Sales volume plain still / sparkling water Million Litres 2009 2010 2011 Production Exports UK Sales - Sparkling - Still

2012

2013

2014

2015

Brand - Sparkling - Still

Marketing Analysis Packaging (2015) NR GLASS 0.33 0.75 1.0 NR PET 0.33 0.5 0.75 1.5 2.0 R Polycarb 18.9

Outlets (2015) Away from Home Retail

Advertising

Commentary

Š Zenith International Ltd 2016

AP

APPENDIX 2 - BOTTLED WATER IN PERSPECTIVE

1.

2016

UK Plain bottled water market 25 year review

1.1 Overall market performance Commentary UK plain bottled water market, 1990-2015

1200

1000

800

600

400

200

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2015

2014

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2009

2008

2007

2006

2005

2004

2003

2002

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1999

1998

1997

1996

1995

1994

1993

1992

1991

1990

0

APPENDIX 2 - BOTTLED WATER IN PERSPECTIVE

2016

1.2 Small Pack vs. Coolers Commentary Small Pack vs. Cooler volume 1990 - 2015 1200

1000

800

600

400

200

Small pack

Water cooler

1.3 Small Pack Sparkling vs. Still Commentary Chart to illustrate

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2015

2014

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2009

2008

2007

2006

2005

2004

2003

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1999

1998

1997

1996

1995

1994

1993

1992

1991

1990

0

APPENDIX 2 - BOTTLED WATER IN PERSPECTIVE

1.4 Own label water consumption Commentary

Chart to illustrate

2.

UK Plain bottled water market in perspective

FROM 1994 ZENITH GUIDE Commentary

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APPENDIX 3 - LEGISLATION

2016

APPENDIX 3 - LEGISLATION  Commentary

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specialist consultants to the food and drink industries

APPENDIX 4 - DEFINITIONS AND SYMBOLS

APPENDIX 4 – 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 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.

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

zenithinternational © Zenith International Ltd 2016 worldwide

specialist consultants to the food and drink industries

2016

APPENDIX 4 - DEFINITIONS AND SYMBOLS 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.

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  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)

zenithinternational © Zenith International Ltd 2016 worldwide

specialist consultants to the food and drink industries

2016

APPENDIX 4 - DEFINITIONS AND SYMBOLS

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

zenithinternational © Zenith International Ltd 2016 worldwide

specialist consultants to the food and drink industries

2016

APPENDIX 4 - DEFINITIONS AND SYMBOLS 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

zenithinternational Š Zenith International Ltd 2016 worldwide

specialist consultants to the food and drink industries

2016

APPENDIX 5 - TARGET GROUP INDEX (TGI)

APPENDIX 5 - 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.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

zenithinternational © Zenith International Ltd 2016 worldwide

specialist consultants to the food and drink industries

2016