SA BOTTLED WATER INDUSTRY

LANDSCAPE REPORT

COMPILED: JULY 2016

REPORT OVERVIEW

For the Global Bottled Water Industry Section:

What are the current market dynamics of the global Bottled Water industry?

What are the global Bottled Water industry trends, drivers, and restraints?

For the South African Bottled Water Industry Section:

What are the current market dynamics of the SA Bottled Water industry?

Who are the key manufacturing players in the SA Bottled Water industry?

For the South African Retail and Pricing Analysis Section:

Who are the key retail players in the SA Bottled Water industry?

What are the prices of popular Bottled Water brands across South African retail outlets?

In terms of South African Consumer Insights and Trends:

What are the volumes for Bottled Water consumption (2011-2015) and forecasts (2016-2019)?

What are the statistics regarding the most popular purchased Bottled Water brands in 2015?

SOME KEY QUESTIONS THE REPORT WILL HELP YOU TO ANSWER:

The South African Bottled Water Industry Landscape Report (93 pages) provides a dynamic synthesis

of industry research, examining the local and global Bottled Water industry from a uniquely holistic

perspective, with detailed insights into the entire value chain – from manufacturing to retail pricing and

consumption.

.

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SCREENSHOTS FROM REPORT

93 page report filled with detailed charts, graphs, tables and insights

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SAMPLE FROM REPORT:GLOBAL BOTTLED WATER CONSUMPTION

30

30

30

35

37

37

38

47

54

65

0 20 40 60 80

Hong Kong

Saudi Arabia

Spain

Belgium - Luxembourg

United States

France

Germany

Italy

Thailand

Mexico

Gallons

PER CAPITA CONSUMPTION OF BOTTLED WATER WORLDWIDE IN 2015, BY LEADING COUNTRIES (IN GALLONS)

Source: WRC, IBWA, Statista

Consumers’ thirst for bottled water appears on

track to persist in the years ahead.

The bottled water consumption worldwide has

been increasing since 2007 and will reach a

projected 391 billion litres in 2017.

Growth in per capita consumption indicate

enthusiasm for a product that consumers regard

as a healthy alternative to other beverages.

In 2015, Mexico had the highest per capita

consumption (65 gallons). In contrast, the per

capita consumption in Hong Kong was 30 gallons.

Five out of top 10 countries, in terms of per capita

consumption, were European: Italy, Germany,

France, Belgium and Spain, with per capita

consumption greater than 30 gallons.

Most other beverage categories including coffee,

milk and tea, are likely to grow much more slowly

than bottled water, which is forecast to achieve

higher per capita consumption in the future.

Image source: Pixabay

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17%

51%

14%

18%

DISTRIBUTION CHANNEL: 2013

Restaurants

Retail outlets

Wholesalers

Service stationconvenience stores

9%5%

42%17%

4%

5%

3%

1% 14%

DISTRIBUTION BY REGION: 2013

Eastern cape

Free State

Gauteng

Kwazulu-Natal

Limpopo

Mpumalanga

North West

Northern Cape

Western Cape

SAMPLE FROM REPORT:SA BOTTLED WATER DISTRIBUTION

The regional distribution of bottled

water has increased for most provinces.

Only four bottlers distribute their product

nationally with others just servicing their

small local areas.

It is not feasible for smaller companies to

distribute nationally due to the low price of

water relative to the weight and the expense

involved in transportation.

Distribution of bottled water was highest to

Gauteng (42%), followed by KwaZulu-Natal

(17%) and the Western Cape (14%).

Source: Bizcommunity ; SANBWA ; Euromonitor; BMI

Distribution of bottled water by channel.

As illustrated in the graph above, the majority

of bottled water is sold by retail outlets (51%).

Service station stores are the fastest growing

sector, currently accounting for 18% of

volume sales.

Restaurants and wholesalers make up the

rest of the distribution market.

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SAMPLE FROM REPORT: SA RETAIL OVERVIEW

South Africa’s biggest food retail chains

have experienced growth in sales, despite

economic hardships and the devastating

drought.

Woolworths Food including concessions have

increased by 11.9% up to 26 June 2016 with a

price movement of 6.7%. The total revenue was

R58,1 billion.

For the 26 weeks up to 26 June 2016, total

sales at Massmart increased to R42.3 billion –

an 8.7% growth over the prior 26 week period. ,

Annual product inflation was estimated at 5.8%,

comparable store sales increased by 6.4%.

Shoprite Holdings managed to boost sales by

14.4% from R130.03 billion for the 12 months to

June 2016 compared to 11.2% in June 2015.

Spar revenue grew by 16.8% for the interim

period (up to 31 March 2016) to R42.484 billion

Spar from R36.383 billion in 2015.

Pick n Pay experienced growth in sales, with a

growing retail turnover of 8.2% to R72.4 billion

for the 2016 financial year.

Source: Woolworths Holdings; Shoprite Holdings; Spar; Moneyweb Image source: BusinessTech

The infographic below shows that the average

basket of goods from Woolworths is 15% higher

than from Checkers.

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Source: AMPS 2011B-2015B (Adult population 16+ years)

Sample Size:24 527 (2011); 24,528 (2012); 24 882 (2013); 25 060 (2014); 25 079 (2015)

Based on weighted numbers

28% 30% 28% 28% 28%

32% 31% 31% 31% 30%

40% 40% 42% 41% 42%

0%

20%

40%

60%

80%

100%

2011 2012 2013 2014 2015

HOW MANY BOTTLES OF MINERAL/ SPRING WATER HAVE YOU PERSONALLY BOUGHT DURING THE PAST 7 DAYS?

1 Serving 2 Servings 3+Servings

Year 1 Bottle 2 Bottle 3+ Bottles Total

2011 3,863,000 4,500,000 5,627,000 13,990,000

2012 4,139,000 4,319,000 5,579,000 14,037,000

2013 4,044,000 4,489,000 6,102,000 14,634,000

2014 3,816,000 4,341,000 5,670,000 13,827,000

2015 3,962,000 4,232,000 5,809,000 14,003,000

Between 2011 and 2015, the volume trends among consumers who had personally purchased bottled water has increased

from 40% purchasing 3+ bottles in the past 7 days in 2011 to 42% in 2015.

In 2015, 28% (4 million) of bottled water consumers had personally bought 1 bottle in the past 7 days, 30% (4.2 million)

bought 2 bottles and 42% (5.8 million) had purchased 3 or more bottles.

SAMPLE FROM REPORT:BOTTLED WATER VOLUME TRENDS (PAST 7 DAYS)

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TABLE OF CONTENTS

1. Executive Summary (4 pages):

1.1 Global Industry Snapshot 2015

1.2 South African Industry Snapshot 2015

1.3 Industry Drivers and Restraints

1.4 Dashboard: South African Bottled Water

2. Global Bottled Water Industry (6 pages):

2.1 Global Bottled Water Industry Overview: BOTTLED WATER GLOBAL MARKET (Graph)

2.2 Global Bottled Water Market Share: 2015 MARKET SHARE OF LEADING BOTTLED WATER COMPANIES WORLDWIDE (Graph)

2.3 Global Bottled Water Consumption: FORECASTED GLOBAL CONSUMPTION IN BILLION LITRES; TOP 10 COUNTRIES BY VOLUME; PER CAPITA

CONSUMPTION OF BOTTLED WATER WORLDWIDE IN 2015 BY LEADING COUNTRIES (Graphs)

2.4 Global Bottled Comparative Country Pricing: PRICES PER COUNTRY FOR 1.5 LITRES (Table)

2.5 Global Bottled Water Industry Trends 2016

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TABLE OF CONTENTS

3. South African Bottled Water Industry (27 pages):

3.1 South African Bottled Water Industry Overview (13 pages)

3.1.1 South African Bottled Water Industry Overview

3.1.2 South African Bottled Water Distribution: DISTRIBUTION CHANNEL; DISTRIBUTION BY REGION (Graphs)

3.1.3 South African Bottled Water Production

3.1.4 South African Bottled Water Consumption

3.1.5 South African Bottled Water Trends

3.1.6 South African Bottled Water Industry Drivers

3.1.7 South African Bottled Water Industry Challenges

31.8 South African Bottled Water Industry Restraints

3.2 South African Bottled Water Manufacturing Overview (14 pages)

3.2.1 SA Bottled Water Manufacturers: Aquabella

3.2.2 SA Bottled Water Manufacturers: Aqua-Tiqua

3.2.3 SA Bottled Water Manufacturers: Aqua.v

3.2.4 SA Bottled Water Manufacturers: Coca Cola: Bonaqua, Dasani, Valpré, Glacéau Essential

3.2.5 SA Bottled Water Manufacturers: Nestlé Waters: Pure Life, San Pellegrino, Perrier, Poland Spring

3.2.6 SA Bottled Water Manufacturers: Oxy-Vita

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TABLE OF CONTENTS

4. South African Bottled Water Industry Retail Analysis (33 pages):

4.1 SA Retail Overview (19 pages)

4.1.1 SA Retail Overview: 2014 BRAND VALUE IN MILLION US DOLLARS (Graph)

4.1.2 SA Retail: Massmart

4.1.3 SA Retail: Pick ‘n Pay: 2010-2016 PICK N PAY TURNOVER (RM) (Graph)

4.1.4 SA Retail: Shoprite: SALES GROWTH PERCENTAGE FOR YEAR 2015 (Graph)

4.1.5 SA Retail: Spar: FY2014-2015 TOTAL COMPREHENSIVE INCOME (RM) (Graph)

4.1.7 SA Retail: Woolworths: OPERATING PROFIT BY SEGMENT 2014-2016(RM); WOOLWORTHS VS MARKET GROWTH 2014-2015 (Graphs)

4.1.7 SA Retail: Engen Quick Shop, Shell Select

4.1.8 SA Retail: BP Wild Bean, Caltex Fresh Stop

4.1.9 SA Retail: Bibo, Eish2O

4.1.10 SA Retail: H2O

4.1.11 SA Retail: Perfectwater

4.1.12 SA Retail: RO Water Systems

4.1.13 SA Retail: RO3 Oasis

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TABLE OF CONTENTS

4.2 Bottled Water Pricing Analysis (14 pages) (conducted w/c 27 July 2016)

4.2.1 Still Water: Aquabella, Aquartz, Aquelle, Bonaqua, Cape Aqua, Ceres, Darling, Eastern Highlands, Evian, Giant Thirst,

Hydr8 Spring Water Sport, Just Water, Nestlé Pure Life, Spar, Valpré, Woolworths, Tsitsikama.

4.2.2 Sparkling Water: Aquartz, Aquelle, Aqua Panna, Cape Aqua, Darling Springs, Nestlé Pure Life, S. Pellegrino, Valpré,

Woolworths.

4.2.3 Flavoured Water: Aquelle, Bonaqua, Cape Aqua, Darling Springs, Eastern Highlands, Glacéau Essential, Seltzer.

Comparative Pricing at Retail Outlets: Checkers, Pick ‘n Pay, Shoprite, Spar, Woolworths Food, Shell Select, Engen

Quickshop, Makro.

4.2.4 Direct Connection Coolers: H2O International

4.2.5 Bottle Water Coolers: H2O International

4.2.6 Countertop & Undercounter Water Filtration: H2O International

4.2.7 Sports & Outdoor Water Filtration: H2O International

4.2.8 Fridge & Appliance Water Filtration: H2O International

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TABLE OF CONTENTS

5. South African Consumer Trends (7 pages):

5.1 AMPS Survey Methodology & Sample Design

5.2 AMPS Survey Questions Asked

5.3 Bottled Water Purchasing Trends: 2011-2015 (Graph & Table)

5.4 Bottled Water Volume Trends (Past 7 Days): 2011-2015 (Graph & Table)

5.5 Most Popular Bottled Water Brands: 2015 (Graph & Table)

5.6 Consumer Actual (2011-2015) and Forecast (2016-2019): Bottled Water (Graph)

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