Zenith Global UK Water Plus Report 2020

Zenith Global Report 2020

UK Water Plus Report

UK Water Plus Report 2020

Zenith Global report on UK water plus March 2020 29th edition

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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.

UK Water Plus Report 2020

Introduction This is the twenty-ninth Zenith report on the UK plain water market. As the UK water drinks market continues to grow and evolve, so does our report. This year, we have again produced three reports on the sector in order to provide a complete review of this dynamic market.

• • •

The UK Plain Water Market Report The UK Water Plus Market Report The UK Water Drinks Summary Report

As always, our aim is to contact every significant company active in the 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 water drinks companies we profile. The 2020 report contains text, charts and tables which analyse the industry’s leading packaged water companies and track recent developments in the UK market.

These reports represent exceptional coverage of the UK water drinks market and we hope that you find them 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

UK Water Plus Report 2020

Contents Brief summary ------------------------------------------------------------------------------------------ 1 Research overview ------------------------------------------------------------------------------------ 2 1

Macro overview --------------------------------------------------------------------------------- 3 1.1 Economy ------------------------------------------------------------------------------------------ 4 1.2 Weather ------------------------------------------------------------------------------------------- 6 1.3 Media ---------------------------------------------------------------------------------------------- 8

2

UK water plus market ------------------------------------------------------------------------- 9

3

UK water plus packaging ------------------------------------------------------------------ 13

4

UK water plus distribution ---------------------------------------------------------------- 16

5

UK water plus companies and groups ------------------------------------------------ 18 5.1 UK water plus companies ------------------------------------------------------------------ 18 5.2 UK water plus groups ----------------------------------------------------------------------- 22

6

UK water plus producers ------------------------------------------------------------------ 25

7

UK still water plus brands ----------------------------------------------------------------- 27

8

UK sparkling water plus brands --------------------------------------------------------- 29

9

UK flavoured water brands --------------------------------------------------------------- 31

10

UK functional water brands -------------------------------------------------------------- 33

11

UK juicy water brands ----------------------------------------------------------------------- 36

12

UK flavoured water retailer own label ----------------------------------------------- 38

13

UK water plus consumer ------------------------------------------------------------------- 41

14

UK water plus value ------------------------------------------------------------------------- 44

15

Ethical initiatives ------------------------------------------------------------------------------ 47

Š Zenith Global Ltd 2020

UK Water Plus Report 2020

16

Ongoing challenges ------------------------------------------------------------------------- 48 16.1 Maintaining consumer interest ---------------------------------------------------------- 48 16.1.1 16.1.2

Key challenges ----------------------------------------------------------------------------- 48 Future trends ------------------------------------------------------------------------------- 49

16.2 Selling ‘hydration with flavour’ ---------------------------------------------------------- 50 16.2.1 16.2.2

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

16.3 The sugar debate ----------------------------------------------------------------------------- 51 16.3.1 16.3.2

Key challenges ----------------------------------------------------------------------------- 51 Future trends ------------------------------------------------------------------------------- 51

16.4 Retailer perception -------------------------------------------------------------------------- 51 16.4.1 16.4.2

Key challenges ----------------------------------------------------------------------------- 51 Future trends ------------------------------------------------------------------------------- 52

16.5 Stock control and supply ------------------------------------------------------------------ 52 16.5.1 16.5.2

Key challenges ----------------------------------------------------------------------------- 52 Future trends ------------------------------------------------------------------------------- 52

16.6 Price pressures -------------------------------------------------------------------------------- 53 16.6.1 16.6.2

Key challenges ----------------------------------------------------------------------------- 53 Future trends ------------------------------------------------------------------------------- 53

17

Innovation --------------------------------------------------------------------------------------- 54

18

Water stewardship --------------------------------------------------------------------------- 55

19

Legislation --------------------------------------------------------------------------------------- 56 19.1 Natural mineral water, spring water and bottled drinking water - current situation (2015 onwards) ------------------------------------------------------------------ 56 19.2 Natural mineral water, spring water and bottled drinking water historical timeline (to 2015) -------------------------------------------------------------- 57 19.3 Abstraction licensing ------------------------------------------------------------------------ 58

20

Forecast to 2024 ------------------------------------------------------------------------------ 59

Š Zenith Global Ltd 2020

UK Water Plus Report 2020

Appendix 1 - Definitions and symbols ------------------------------------------------------- 63 Water definitions------------------------------------------------------------------------------------- 63 Natural mineral water ------------------------------------------------------------------------------------ 63 Spring water -------------------------------------------------------------------------------------------------- 63 Bottled drinking water ----------------------------------------------------------------------------------- 63 Flavoured water --------------------------------------------------------------------------------------------- 64 Functional water -------------------------------------------------------------------------------------------- 64 Juicy water ---------------------------------------------------------------------------------------------------- 64 Water plus ----------------------------------------------------------------------------------------------------- 64

Distribution channel definitions ---------------------------------------------------------------- 65 Retail ------------------------------------------------------------------------------------------------------------- 65 Modern retail ------------------------------------------------------------------------------------------------- 65 Convenience / impulse ------------------------------------------------------------------------------------ 65 Door to door -------------------------------------------------------------------------------------------------- 65

Away from home-------------------------------------------------------------------------------------------- 65 HoReCa; pubs and clubs ---------------------------------------------------------------------------------- 65 Offices ----------------------------------------------------------------------------------------------------------- 65 Others ----------------------------------------------------------------------------------------------------------- 65

Symbols -------------------------------------------------------------------------------------------------- 66

Appendix 2 - Target Group Index (TGI) ------------------------------------------------------ 67 Appendix 3 - Leading company profiles----------------------------------------------------- 68 AG Barr Plc ------------------------------------------------------------------------------------------------Britvic Plc--------------------------------------------------------------------------------------------------Clearly Drinks Ltd --------------------------------------------------------------------------------------Coca-Cola European Partners ---------------------------------------------------------------------Danone Waters (UK & Ireland) Ltd ---------------------------------------------------------------Get More Vitamin Drinks ----------------------------------------------------------------------------Highland Spring Group -------------------------------------------------------------------------------Innocent Drinks -----------------------------------------------------------------------------------------Montgomery Spring Water Company -----------------------------------------------------------NestlĂŠ Waters UK Ltd ---------------------------------------------------------------------------------Nichols Plc ------------------------------------------------------------------------------------------------Princes Limited------------------------------------------------------------------------------------------Radnor Hills Mineral Water Company Ltd -----------------------------------------------------Refresco Beverages -----------------------------------------------------------------------------------Talking Rain Beverage Company -----------------------------------------------------------------Trederwen Springs-------------------------------------------------------------------------------------Ugly Brands Ltd ------------------------------------------------------------------------------------------

Š Zenith Global Ltd 2020

UK Water Plus Report 2020

Tables Table 2.1 Table 2.2 Table 3.1 Table 3.2 Table 4.1 Table 5.1 Table 5.2 Table 5.3 Table 6.1 Table 7.1 Table 8.1 Table 9.1 Table 10.1 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 20.1

Š Zenith Global Ltd 2020

UK water plus market, 2014-2019 ---------------------------------------------- 11 UK water plus types, 2014-2019 ------------------------------------------------- 11 UK water plus packaging, 2017-2019 ------------------------------------------ 15 UK water plus packaging, 2019 ------------------------------------------------- 17 UK water plus distribution, 2017-2019---------------------------------------- 17 Top 15 companies in UK water plus market, 2018-2019---------------- 19 Top 20 brands in UK water plus market, 2018-2019 --------------------- 23 Top 20 brands in UK water plus market ranking, 2019 ------------------ 24 Top 10 UK water plus producers, 2018-2019 ------------------------------- 26 Top 5 UK still water plus brands, 2018-2019 -------------------------------- 28 Top 5 UK sparkling water plus brands, 2018-2019------------------------ 30 Top 10 UK flavoured water brands 2018-2019 ----------------------------- 32 Top 5 UK functional water brands, 2018-2019 ----------------------------- 35 Top 5 UK juicy water brands, 2018-2019 ------------------------------------- 37 UK own label flavoured water production, 2017-2019------------------ 39 Top 5 UK own label water plus producers, 2018-2019 ------------------ 40 GB flavoured water, herbal and premium soft drinks consumer, 2014-2019 ------------------------------------------------------------------------------- 42 UK water plus per capita consumption, 2014-2019 ---------------------- 43 International flavoured water comparison, 2014-2024f---------------- 43 UK water plus value, 2017-2019 ------------------------------------------------- 45 UK branded vs private label value per litre, 2018-2019----------------- 46 UK water plus consumption by segment forecast, 2019-2024f ------ 61

UK Water Plus Report 2020

Figures Figure 1.1 Figure 1.2 Figure 1.3 Figure 2.1 Figure 2.2 Figure 3.1 Figure 4.1 Figure 5.1 Figure 5.2 Figure 5.3 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 20.1

Š Zenith Global Ltd 2020

UK mean temperature, 2014-19 -------------------------------------------------- 7 UK sunshine hours, 2017-19 ------------------------------------------------------- 7 UK rainfall, 2017-19-----------------------------------------------------------------------7 UK water plus market, 2014-19 -------------------------------------------------- 12 UK water plus consumption share, 2014-19 -------------------------------- 12 UK water plus packaging, 2019 -------------------------------------------------- 15 UK water plus distribution, 2019 ------------------------------------------------ 17 UK water plus industry consolidation, 2014-2019 ------------------------ 20 Top 5 water plus companies, 2014 vs 2019 --------------------------------- 20 Leading UK water plus companies, 2019 ------------------------------------- 21 Leading UK water plus producers, 2019 -------------------------------------- 26 Leading UK still water plus brands, 2019 ------------------------------------ 28 Leading UK sparkling water plus brands, 2019 ---------------------------- 30 Leading UK flavoured water brands, 2019 ---------------------------------- 32 Leading UK functional water brands, 2019 ---------------------------------- 35 Leading UK juicy water brands, 2019 ------------------------------------------ 37 UK own label flavoured water consumption share, 2014-2019 ------ 39 Leading UK own label flavoured water producers, 2019 --------------- 40 GB flavoured water, herbal and premium soft drinks consumption 2014-2019 ------------------------------------------------------------------------------- 42 UK water plus market value, 2014-2019-------------------------------------- 46 UK water plus market forecast, 2014-2024f -------------------------------- 61

UK Water Plus Report 2020

UK Water Plus Report 2020 Brief summary 1. Commentary 2. Commentary 3. Commentary

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UK Water Plus Report 2020

Research overview

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•

In compiling its research, Zenith 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 packaged water.

•

A complete picture of the UK 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 packaged water drinks including: take home, impulse and on-premise/foodservice 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 water drinks arena. We believe Zenith’s coverage of the total UK 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 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 the BSDA (British Soft Drinks Association) and the NSWA (Natural Source Waters Association, formerly Natural Hydration Council).

UK Water Plus Report 2020

1

1.1

1.2

Macro overview •

Commentary

•

Commentary

•

Commentary

Economy •

Commentary

•

Commentary

•

Commentary

Weather •

Commentary

•

Commentary

•

Commentary

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UK Water Plus Report 2020

Figure 1.1

UK mean temperature, 2014-19

16.0 14.0 Degrees centigrade

12.0 10.0 8.0 6.0 4.0 2.0 0.0 2014

2015

2016

Figure 1.2

2017

2018

2019

UK sunshine hours, 2017-19

50 45

Sunshine hours

40 35 30 25 20 15 10 5 0 Jan

Feb

Mar

Apr

May

2017

Figure 1.3

Jun

Jul

2018

Aug

Sep

Oct

Nov

Dec

Sep

Oct

Nov

Dec

2019

UK rainfall, 2017-19

80 70 60 Rainfall

50 40 30 20 10 0 Jan

Feb

Mar

Apr

May

2017 Source: Met Office

Jun 2018

Jul

Aug 2019

UK Water Plus Report 2020

1.3

Media •

Commentary

•

Commentary

•

Commentary

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UK Water Plus Report 2020

2

UK water plus market •

Commentary

•

Commentary

•

Commentary Table 2.1

Million litres Production Imports Consumption

2014

UK water plus market, 2014-2019 2015 2016 2017

2018

2019

2014

UK water plus types, 2014-2019 2015 2016 2017

2018

2019

Production % change Imports as % consumption Consumption % change Litres per person Source: Zenith Global Table 2.2 Million litres Sparkling Still Sparkling % share Still % share Flavoured Functional Juicy Flavoured % share Functional % share Juicy % share Flavoured % change Functional % change Juicy % change Total market Total market % change Source: Zenith Global

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UK Water Plus Report 2020

Figure 2.1

UK water plus market, 2014-19

120

100

Million litres

80

60

40

20

0 2014

2015

2016 Flavoured

2017 Functional

2018

2019

Juicy

Source: Zenith Global

Figure 2.2

UK water plus consumption share, 2014-19

60

% share

40

20

0 2014

2015

2016 Flavoured

Source: Zenith Global

2017 Functional

2018 Juicy

2019

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UK Water Plus Report 2020

3

UK water plus packaging •

Commentary

•

Commentary

•

Commentary

Table 3.1 Million litres PET Others Total market

% share PET Others Source: Zenith Global

UK water plus packaging, 2017-19 2017 2018

2017

Figure 3.1

2019

2018

2019

UK water plus packaging, 2019

PET 50%

50% Others

Total consumption: XX million litres

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UK Water Plus Report 2020

4

UK water plus distribution •

Commentary

•

Commentary

•

Commentary

Table 4.1

UK water plus distribution, 2017-2019 2017 2018 2017 2018 volume % share volume % share

Million litres

2019 volume

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

Figure 4.1

25%

UK water plus distribution, 2019

25%

Modern retail Convenience HoReCa 25%

25%

Total consumption: XX million litres

Others

2019 % share

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UK Water Plus Report 2020

5

UK water plus companies and groups

5.1

UK water plus companies •

Commentary

•

Commentary

•

Commentary

Table 5.1 Million litres

Top 15 companies in UK water plus market, 2018-2019 2018 2019 2018 2019 volume % share volume % share

Rank

Company 1

1

Company 2

2

Company 3

3 4 5 6 7 8 9 10 11 12 13 14 15

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

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UK Water Plus Report 2020

Figure 5.1

UK water plus industry consolidation, 2014-2019

100 90 80 70 % share

60 50 40 30 20 10 0 2014

2015

2016 Top 5

2017

2018

2019

Top 10

Source: Zenith Global

Figure 5.2

Top 5 water plus companies, 2014 vs 2019

Company 1

Company 2

Company 3

Company 4

Company 5

0

20

40 2019

Source: Zenith Global

60 2014

80

100

120

Million litres

UK Water Plus Report 2020

Figure 5.3

Leading UK water plus companies, 2019

10%

Company 1 10%

50%

10%

Company 2 Company 3 Company 4

10% 10%

Total consumption: XX million litres

Company 5 Others

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UK Water Plus Report 2020

5.2

UK water plus groups •

Commentary

•

Commentary

•

Commentary

Table 5.2 Million litres

Top 20 brands in UK water plus market, 2018-2019 2018 2019 2018 2019 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

Top 20 Others (3) Total market Top 5 Top 10 (1) (2) (3)

Includes retailer brands

Source: Zenith Global

UK Water Plus Report 2020

Table 5.3 Million litres Brand 1

Top 20 brands in UK water plus market ranking, 2019 Flavoured

Functional

Juicy

1

Brand 2

1

Brand 3

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2 1

3

Brand 4

2

4

Brand 5

3

5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Source: Zenith Global

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UK Water Plus Report 2020

6

UK water plus producers •

Commentary

•

Commentary

•

Commentary

Table 6.1

Top 10 UK water plus producers, 2018-2019 2018 2018 % 2019 volume share volume

Million litres Company 1 Company 2 Company 3

Top 10 Others Total UK production Source: Zenith Global

Figure 6.1

Leading UK water plus producers, 2019

10% Company 1 10%

Company 2 Company 3

50%

10% Company 4 10% 10%

Total UK water plus production: XX million litres

Company 5 Others

2019 % share

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UK Water Plus Report 2020

7

UK still water plus brands •

Commentary

•

Commentary

•

Commentary

Table 7.1

Top 5 UK still water plus brands, 2018-2019 2018 2018 % 2019 volume share volume

Million litres Brand 1 Brand 2 Brand 3

Top 5 Others (1) Total still water plus (1)

Includes retailer own label numbers Source: Zenith Global

Figure 7.1

Leading UK still water plus brands, 2019

10% Brand 1 10%

Brand 2 Brand 3

50%

10% Brand 4 10% 10%

Total UK still water plus consumption: XX million litres

Brand 5 Others

2019 % share

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UK Water Plus Report 2020

8

UK sparkling water plus brands •

Commentary

•

Commentary

•

Commentary

Table 8.1 Million litres

Top 5 UK sparkling water plus brands, 2018-2019 2018 2018 % 2019 volume share volume

Brand 1 Brand 2 Brand 3

Top 5 Others (1) Total sparkling water plus (1)

Includes retailer own label numbers Source: Zenith Global

Figure 8.1

Leading UK sparkling water plus brands, 2019

10% Brand 1 10%

Brand 2 Brand 3

50%

10% Brand 4 10% 10%

Brand 5 Others

Total UK sparkling water plus consumption: XX million litres

2019 % share

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UK Water Plus Report 2020

9

UK flavoured water brands •

Commentary

•

Commentary

•

Commentary

Table 9.1 Million litres

Top 10 UK flavoured water brands, 2018-2019 2018 2018 % 2019 volume share volume

Brand 1 Brand 2 Brand 3

Top 10 Others (1) Total flavoured water (1)

Includes retailer own label numbers Source: Zenith Global

Figure 9.1

Leading UK flavoured water brands, 2019

10% Brand 1 10%

Brand 2 Brand 3

50%

10% Brand 4 10% 10%

Brand 5 Others

Total UK flavoured water consumption: XX million litres

2019 % share

% change

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UK Water Plus Report 2020

10

UK functional water brands •

Commentary

•

Commentary

•

Commentary

Table 10.1 Million litres

Top 5 UK functional water brands, 2018-2019 2018 2018 % 2019 volume share volume

Brand 1 Brand 2 Brand 3

Top 5 Others (3) Total functional water (1) (2) (3)

Includes retailer own label numbers Source: Zenith Global

Figure 10.1

Leading UK functional water brands, 2019

10% Brand 1 10%

Brand 2 Brand 3

50%

10% Brand 4 10% 10%

Brand 5 Others

Total UK functional water consumption: XX million litres

2019 % share

% change

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UK Water Plus Report 2020

11

UK juicy water brands •

Commentary

•

Commentary

•

Commentary

Table 11.1 Million litres

Top 5 UK juicy water brands, 2018-2019 2018 2018 % 2019 volume share volume

Brand 1 Brand 2 Brand 3

Top 5 Others (2) Total juicy water (1) (2)

Includes retailer own label numbers Source: Zenith Global

Figure 11.1

Leading UK juicy water brands, 2019

10% Brand 1 10%

Brand 2 Brand 3

50%

10% Brand 4 10% 10%

Total UK juicy water consumption: XX million litres

Brand 5 Others

2019 % share

% change

UK Water Plus Report 2020

12

UK flavoured water retailer own label •

Commentary

•

Commentary

•

Commentary

Table 12.1 Million litres

UK own label flavoured water production, 2017-2019 2017 2018 2019

Total water plus market Flavoured water (1) Flavoured water as a % of total market

Sparkling flavoured water Sparkling flavoured % share

Still flavoured water 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 Excludes functional and juicy waters Source: Zenith Global (1)

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UK Water Plus Report 2020

Figure 12.1

UK own label flavoured water consumption share, 2014-2019

60

% share of flavoured water

50

40

30

20

10

0 2014

2015

2016

2017

2018

2019

Source: Zenith Global

Table 12.2 Million litres

Top 5 UK own label flavoured water producers, 2018-2019 2018 2018 % 2019 2019 % Rank volume share volume share

Company 1

1

Company 2

2

Company 3

3 4 5

Top 5 Others Total own label Source: Zenith Global

Figure 12.2

Leading UK own label flavoured water producers, 2019

10% Company 1 10%

Company 2 Company 3

50%

10% Company 4 10% 10%

Company 5 Others

Total UK own label flavoured water production: XX million litres

Top 20 rank

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UK Water Plus Report 2020

UK water plus consumer •

Commentary

•

Commentary

•

Commentary

Table 13.1 GB flavoured water, herbal and premium soft drinks consumer, 2014-2019 % of GB population (1) 2014 2015 2016 2017 2018 2019 Consumers '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 2018 - June 2019 Source: Target Group Index (TGI) - GB adults aged 15 and above Figure 13.1

GB flavoured water, herbal and premium soft drinks consumption 2014-2019

120

100

% of GB population

13

80

60

40

20

0 2014

2015 2016 Regular consumers

2017 2018 All consumers

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

2019

UK Water Plus Report 2020

Table 13.2 Litres Per capita consumption Sparkling Still

UK water plus per capita consumption, 2014-2019 2014 2015 2016 2017 2018

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

Table 13.3 Litres per person

International flavoured water comparison, 2014-2024f CAGR % 2014 2019 2024f (14-19) (19-24f)

United States France Germany Italy Spain United Kingdom West Europe Poland East Europe China Asia Pacific Global (1) Excludes functional and juicy waters Source: Zenith Global, globaldrinks.com (1)

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UK Water Plus Report 2020

14

UK water plus value •

Commentary

•

Commentary

•

Commentary

Table 14.1 2017 Volume

£ VPL

Flavoured water (1) % change Modern retail (including discounters) Convenience / impulse HoReCa; pubs, clubs

Functional water (1) % change Modern retail (including discounters) Convenience / impulse HoReCa; pubs, clubs

Juicy water (1) % change Modern retail (including discounters) Convenience / impulse HoReCa; pubs, clubs (1) retail

sales value - Numbers may vary due to rounding Source: Zenith Global

UK water plus value, 2017-2019 2018 £m £m Volume £ VPL Value Value

2019 Volume

£ VPL

£m Value

UK Water Plus Report 2020

Figure 14.1

UK water plus market value, 2014-2019

120

2.00

100

80

60

1.00 VPL £

Market value £ mln

1.50

40

0.50 20

0

0.00 2014

2015

2016

Market value (£ mln)

2017

2018

2019

Value per litre (£)

Source: Zenith Global

Table 14.2 Branded Private label Retail average Source: Zenith Global

UK branded vs private label value per litre, 2018-2019 2018 2019

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UK Water Plus Report 2020

15

Ethical initiatives •

Commentary

•

Commentary

•

Commentary

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UK Water Plus Report 2020

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 •

Commentary

•

Commentary

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UK Water Plus Report 2020

16.4

Retailer perception

16.4.1 Key challenges •

Commentary

•

Commentary

16.4.2 Future trends

16.5

•

Commentary

•

Commentary

Stock control and supply

16.5.1 Key challenges •

Commentary

•

Commentary

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

Innovation •

Commentary

•

Commentary

•

Commentary

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18

Water stewardship •

Commentary

•

Commentary

•

Commentary

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19

Legislation

19.1

Natural mineral water, spring water and bottled drinking water current situation (2015 onwards)

19.2

19.3

•

Commentary

•

Commentary

•

Commentary

Natural mineral water, spring water and bottled drinking water historical timeline (to 2015) •

Commentary

•

Commentary

•

Commentary

Abstraction licensing •

Commentary

•

Commentary

•

Commentary

•

This information was compiled by Zenith Global’s Water & Environment Department.

UK Water Plus Report 2020

20

Forecast to 2024 •

Commentary

•

Commentary

•

Commentary

Table 20.1 Million litres Sparkling Still Sparkling % share Still % share Flavoured Functional Juicy Flavoured % share Functional % share Juicy % share Flavoured % change Functional % change Juicy % change Total market Total market % change Source: Zenith Global

UK water plus consumption by segment forecast, 2019-2024f 2019 2020f 2021f 2022f 2023f

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2024f

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UK Water Plus Report 2020

Figure 20.1

UK water plus market forecast, 2014-2024f

120

100

Million litres

80

60

40

20

0 2014

2015

Source: Zenith Global

2016

2017

2018

2019

2020f

2021f

2022f

2023f

2024f

UK Water Plus Report 2020

Appendix

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UK Water Plus Report 2020

Appendix 1 - Definitions and symbols Water definitions

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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 permitted treatment for filtration of particles.

•

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 certain forms of permitted 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.

Page1 37 7 / 0 4 Can be bottled under any description except one that is misleading to consumers. Use of/ the 2 description natural mineral water, spring water or mineral water is not permitted. Some 0 commonly used descriptions are ‘table water’ and ‘purified water’.

2 0 UK Water Plus Report 2020

•

• •

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. Section 18 - Legislation details the relevant regulations for England, Scotland, Wales and Northern Ireland and any subsequent amendments.

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

Excludes: • • •

‘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: • • •

Drench Juicy Volvic Juicy This Juicy Water

Excludes: • • •

San Pellegrino Aranciata, Limonata etc.

Capri Sun Vimto

Water plus Water plus includes flavoured waters, functional waters and juicy waters as defined above.

UK Water Plus Report 2020

Distribution channel definitions Retail

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Modern retail •

Multiples and other grocers - Tesco, Sainsbury, Asda, Waitrose, Morrisons, 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)

Convenience / impulse •

Confectioneries, tobacconists and newsagents (CTNs)

•

Convenience stores (e.g. Londis)

•

Small independent grocers

•

Other forecourts

•

Off licences

•

Other retail stockists

Door to door •

Dairy deliveries

•

Direct mail orders

Away from home HoReCa; pubs and clubs •

HoReCa - hotel, restaurant and cafés

•

Bars, pubs and nightclubs

•

Food service catering channels

•

Vending machines

Offices •

Water supplied in places of work such as offices, factories etc.

Others •

All other away from home outlets

UK Water Plus Report 2020

Symbols ...

Negligible, less than 0.05

CSD

Carbonated soft drink

e

Estimate

f

Forecast

Foodservice Distribution to on-premise or HoReCa outlets PET

Polyethylene terephthalate

rPET

Recycled polyethylene terephthalate

R

Returnable packaging

SC

Sports cap

VPL

Value per litre

Page1 39 7 / 0 4 / 2 0 2 0

UK Water Plus Report 2020

Appendix 2 - Target Group Index (TGI)

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Zenith uses Target Group Index (TGI) syndicated surveys to provide actionable single-source data 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 brands 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

UK Water Plus Report 2020

Appendix 3 - Leading company profiles AG Barr Plc Britvic Plc Clearly Drinks Ltd Coca-Cola European Partners Danone Waters (UK & Ireland) Ltd Get More Vitamin Drinks Highland Spring Group Innocent Drinks Montgomery Spring Water Company NestlĂŠ Waters UK Ltd Nichols Plc Princes Limited Radnor Hills Mineral Water Company Ltd Refresco Beverages Talking Rain Beverage Company Trederwen Springs Ugly Brands Ltd

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COMPANY Address: Tel: Website:

Fax: Email:

Company Structure Ownership: Senior management:

Employees: Subsiduaries: Related activities:

Non-related activities:

Company Finances ÂŁ Million, year to Sales Profit before tax

Water Production Location: Source: Lines: Investment:

Advertising

Commentary

2011

2012

2013

2014

2015

2016

2017

COMPANY - Water Plus Product Range Brand name Brand A

Water type Still

Pack type

Spring

NR PET

Sizes available (litre) 0.5 0.75 (SC)

0.5 1.5

0.33

0.75

Glass

x10

Production & Sales Volume (Water Plus) Million litres Production Exports UK Sales - still - sparkling Brand A - still - sparkling

2011

2012

2013

2014

2015

2016

2017

Packaging Split NR GLASS 0.33 0.75 NR PET 0.5 0.75 1

10.0% 5.0% 5.0% 90.0% 50.0% 20.0% 20.0%

Channel Split (by brand / type) Brand Brand

Retail 100.0%

OOH 0.0%

HOD 0.0%

Total 100%

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