zenithinternationalspecialist consultants to the food and drink industries worldwide

STRATEGY & MANAGEMENT MERGERS & ACQUISITIONS COMMERCIAL & MARKET OPERATIONS & TECHNICAL WATER & ENVIRONMENT PACKAGING & DISTRIBUTION

2013 Global Bottled Water

Congress and market trends

Richard Hall

Chairman

Matt Wilton

Commercial Consulting Director

Webinar

Wednesday 25 September 2013

zenithinternationalspecialist consultants to the food and drink industries worldwide© Zenith International Ltd 2013

2013 Global Bottled Water Congress

2

Richard Hall

Chairman, Zenith International

zenithinternationalspecialist consultants to the food and drink industries worldwide© Zenith International Ltd 2013

Event outline

3

• 10th Global Bottled Water Congress

• 12-14 November 2013, Nashville, USA

• In association with FoodBev Media

• Alongside the IBWA Annual Business Conference & Trade Show and the

NAMA CoffeeTea&Water Show

• Around 150 delegates each year from top global and regional producers

• Sponsored by leading industry suppliers Aptar, Bericap and NSF

• Full programme and online booking at www.zenithinternational.com/events

• Discounted rates available until 4 October 2013

zenithinternationalspecialist consultants to the food and drink industries worldwide© Zenith International Ltd 20134

Previous Congresses

zenithinternationalspecialist consultants to the food and drink industries worldwide© Zenith International Ltd 2013

2013 programme

5

• Alongside IBWA Annual Business

Conference & Trade Show and NAMA

CoffeeTea&Water Show

• Conference: Force of nature

• Day of detailed market briefings

• Gala Dinner

• Global Bottled Water Awards

• Sponsored by leading suppliers Aptar,

Bericap and NSF

zenithinternationalspecialist consultants to the food and drink industries worldwide© Zenith International Ltd 2013

Force of nature

6

• Premium water case studies

• US market opportunities

• North America regional overview

• World view of water

• Attracting new consumers

• Innovation and investment

• Innovation presentations

• Market data briefings

zenithinternationalspecialist consultants to the food and drink industries worldwide© Zenith International Ltd 2013

Conference speakers

7

International producers

Regional leaders and innovators

Industry representatives and advisers

Industry suppliers

zenithinternationalspecialist consultants to the food and drink industries worldwide

STRATEGY & MANAGEMENT MERGERS & ACQUISITIONS COMMERCIAL & MARKET OPERATIONS & TECHNICAL WATER & ENVIRONMENT PACKAGING & DISTRIBUTION

Global bottled water

Latest trends and analysis

Matt Wilton

Commercial Consulting Director, Zenith International

zenithinternationalspecialist consultants to the food and drink industries worldwide© Zenith International Ltd 2013

212 223 234250

269288

0

50

100

150

200

250

300

350

2007 2008 2009 2010 2011 2012

Global bottled water volume 2007-12

000 million litres

+6.7% +7.5% +7.1%

90 countries

zenithinternationalspecialist consultants to the food and drink industries worldwide© Zenith International Ltd 2013

49.9%

38.6%

11.4%

Global bottled water types 2007-12Still bulk water continues to gain market share

212 billion litres 288 billion litres

90 countries

2007 2012

50.3%

34.9%

14.8%Still to 10 litres

Still bulk over 10 litres

Sparkling

zenithinternationalspecialist consultants to the food and drink industries worldwide© Zenith International Ltd 2013

Global trends 2012/13• Global volume of bottled water has surpassed

carbonates and it is a volume driven category. Prices

remain low and private label is a pressure in

developed markets.

• Global market is still fragmented with big four

international players commanding approximately a

quarter of volume. There are some established

regional players, notably Wahaha and Suntory in Asia

Pacific plus San Benedetto in Europe..

• Environmental concerns remain, although affordability

remains the key driver of purchase.

• Core messages of health and hydration are still

relevant, but challenged by innovation in other

‘healthy’ soft drinks.

• Still, bulk water over 10 litres remains a driver,

reflecting the importance of markets where such

products are in greater demand and where water

supply remains inadequate

zenithinternationalspecialist consultants to the food and drink industries worldwide© Zenith International Ltd 2013

36.4%

16.6%15.5%

13.0%

8.3%

6.1%4.2%

Global bottled water regions 2007-12Asia Pacific and Africa gain share but the latter remains small

212 billion litres 288 billion litres

2007 2012

26.2%

22.4%

16.5%

16.2%

8.1%

7.4%

3.2%

Asia Pacific

West Europe

North America

Central & LatinAmericaMiddle East

East Europe

Africa

90 countries

zenithinternationalspecialist consultants to the food and drink industries worldwide© Zenith International Ltd 2013

Region trends 2008-12

North America

West EuropeEast Europe

Latin America

Asia Pacific

Africa

Middle East

-2

0

2

4

6

8

10

12

14

16

18

0 20 40 60 80 100 120

Bubble size shows 2012 volume

An

nu

alvo

lum

e g

row

th2

00

8-1

2

Litres per person in 2012

High potential. Explore

opportunity

Growth and

consumption. Invest

High consumption, low

growth. Hold/acquire

zenithinternationalspecialist consultants to the food and drink industries worldwide© Zenith International Ltd 2013

USA bottled water volume 2007-12

32.0 31.730.8 31.4

32.434.1

0

5

10

15

20

25

30

35

2007 2008 2009 2010 2011 2012

+8.0% -1.0%- 2.9%

+2.0%+3.2%

+5.4%000 million litres

zenithinternationalspecialist consultants to the food and drink industries worldwide© Zenith International Ltd 2013

69.2%

14.3%

2.4%

14.1%

Still to 2 litresStill 2-10 litresSparklingStill over 10 litres

USA bottled water segments 2012

Total 34 billion litres

zenithinternationalspecialist consultants to the food and drink industries worldwide© Zenith International Ltd 2013

Summary and future evolution

• The developing regions of Asia Pacific, Africa and

Middle East will continue to drive growth due to

increasing urbanisation and economic stability.

• Growing awareness of water safety and lack of

mains water a key driver for growth in these

markets.

• The bulk water segment is expected to grow at the

fastest pace over the next 5 years, mainly driven

by the Asia Pacific region.

• Small pack sizes of still bottled water continue to

benefit from health consciousness and on-the-go

convenience.

• Innovation in packaging is key to ensure the

category retains momentum in more developed

markets.

• Further industry consolidation is expected as the

larger companies acquire small/niche players to

increase capacity and product portfolio and gain a

foothold in the less developed regions.

0

100

200

300

400

500

2012 2014 2016 2018 2020

Forecast to 2020billion litres

zenithinternationalspecialist consultants to the food and drink industries worldwide

STRATEGY & MANAGEMENT MERGERS & ACQUISITIONS COMMERCIAL & MARKET OPERATIONS & TECHNICAL WATER & ENVIRONMENT PACKAGING & DISTRIBUTION

For more information about the Global Bottled Water Congress, please

contact:

Nick Crossland

Marketing & Events Consultant

ncrossland@zenithinternational.com

t +44 1225 327941

Or visit www.zenithinternational.com/events

For more information about this presentation, please contact:

Matt Wilton

Commercial Consulting Director

mwilton@zenithinternational.com

t +44 (0)1225 327931