UK Water Plus Report 2023

UK Water Plus Report

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Introduction

April 2023

This is the 32nd year that Zenith Global Commercial has reported on the UK water drinks market, as one of the company’s flagship reports when it started in 1991 Back then, it was the UK Bottled Water Report, but as the UK water drinks market has continued to grow and evolve, so has our report

As in the last few years, 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 Report

• The UK Water Plus 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 2023 report contains text, charts and datasheets 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.

Akos Petri Commercial Consulting Director

Research overview

UK water plus market executive summary

Key interview takeaways

Trending claims

1. Marco overview

2. UK water plus market

3. UK water plus packaging

4. UK water plus distribution

5. UK water plus companies and groups

6. UK water plus producers

7. UK still water plus brands

8. UK sparkling water plus brands

9. UK flavoured water brands

10. UK juicy water brands

11. UK flavoured water retailer own label

Research overview

• In compiling its research, Zenith Global Commercial relies on the goodwill and cooperation 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 water drinks.

• A complete picture of the UK water drinks market is thus produced through Zenith Global Commercial’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 onpremise/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 Global Commercial 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).

UK Water Plus Market

Executive summary

UK Water Plus Market Executive summary

Key interview takeaways from 2022

Trending claims

1. Macro overview

1.1 Bird's eye view of 2022

1. Macro overview

1.2

PESTLE analysis

1. Macro overview

1.3 Weather

1. Macro overview

1.3 Weather

1. Macro overview

1.3 Weather

2. UK water plus market Figure 2.1

UK water plus market, 2017-22 (Dummy) Flavoured

2017-22 (Dummy)

3. UK water plus packaging

Figure 3.1

5.1 UK water plus companies Figure 5.1

UK water plus industry consolidation, 2017-22 (Dummy)

Source: Zenith Global Commercial 2023

5.1 UK water plus companies and groups

Top 5 water plus companies, 2017 vs 2022 (Dummy)

Danone Waters (UK & Ireland) Ltd

5.1 UK water plus companies and groups Figure 5.3

Leading UK water plus companies, 2022 (Dummy)

11. UK flavoured water retailer own label

Figure 11.1

UK own label flavoured water consumption, 2017-22 (Dummy)

Source: Zenith Global Commercial 2023

12. UK water plus consumer

12. UK water plus consumer

Source: Kantar Media, Target Group Index 2023

13. UK water plus value Figure 13.1

UK flavoured water market value, 2017-22 (Dummy)

15. Ongoing challenges

15.1 Maintaining consumer interest

19. Legislation

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

1

Water definitions

Natural mineral water

Spring water

Bottled drinking water

Flavored water

Functional water

Juicy water

Water plus

2 Retail Away from home Symbols

Distribution channel definitions

3 TGI Target Group Index (TGI)

Appendix

Water 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 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.

Appendix

Water definitions

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. 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 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)

Appendix

Water definitions

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.

Appendix

Distribution channel definitions

Retail

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

Appendix

Distribution channel definitions

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

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

Company profiles

COMPANY

Company Structure

Employees: subsidiaries:

Company Finances £ Million, year to Sales Profit before tax

Ownership: Senior management: Water Production

Location: Source: Lines: Investment:

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