SA BOTTLED WATER

INDUSTRY LANDSCAPE REPORT

COMPILED: AUGUST 2017

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 is the historical market size of the SA Bottled Water Industry (2012-2016) and forecasts?

What are volumes (2012-2016) by brand, company, retail channel?

What are the South African Bottled Water Industry trends, drivers and restraints?

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 and Water Coolers across South African retail outlets?

SOME KEY QUESTIONS THE REPORT WILL HELP YOU TO ANSWER:

The South African Bottled Water Industry Landscape Report (102 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, consumption,

competitor and pricing analysis.

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SCREENSHOTS FROM REPORT

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

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30%

22%20%

15%

7% 7%

0%

5%

10%

15%

20%

25%

30%

35%

Water AlcoholicBeverages

CarbonatedSoft Drinks

Milk andDairy Drinks

Fruit andVegetable

Drinks

New Drinks

SHARE OF CONSUMPTION OF PACKAGED BEVERAGES WORLDWIDE IN

2016, BY BEVERAGE TYPE

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The global Bottled Water Market was

worth close to US$182 billion in 2016.

Furthermore, increased health

awareness and changing consumer

lifestyles are ensuring that Bottled

Water is growing at a CAGR of around

6.6%.

It is estimated that the global Bottled Water

Market will be worth US$307.2 billion by

2024.

Still Bottled Water accounted for over 60%

of the overall market in 2014, and this is

expected to increase to 78% by 2024.

In general, the Bottled Water Market is

segmented into four product types: still,

carbonated, flavoured and functional. The

contents are from different sources (e.g.

mineral water or table water).

Rapid growth is expected in the flavoured

and functional water market driven by

increasing concern about health and

wellness.

Source: Global News Wire; Health Line; Transparency Market Research;

Transparency Market research; Bottled Water; Plos; The Grocer; Statista; foodbev Image Source: Pixabay

In 2016, Bottled Water became the largest

beverage category by volume in the US. In the

UK, Bottled Water sales also overtook soft drinks

in the 52 weeks preceding 15 July, 2017.

Globally, the sale of water surpasses all other

beverages. In terms of consumption of packaged

beverages, the graph below illustrates that water

held 30% market share in 2016.

Mexico remains the biggest consumer of Bottled

Water globally due to poor water infrastructure, a

tax on sugary beverages, and public health

campaigns.

SAMPLE FROM REPORT:GLOBAL BOTTLED WATER CONSUMPTION

272.8

48.931.2 24.3

2.30

50

100

150

200

250

300

SOUTH AFRICA'S RETAIL CHANNEL IN BOTTLED WATER MARKET (IN MILLION LITRES): 2016

Coca Cola SA Brands:

The graph below shows the retail channel

distribution of Bottled Water in South Africa for

2016.

Source: Euromonitor; Ethical Living Image Source: Freepik; Karoo; Trailerenvy

SA Retail Channel for Bottled Water Sales

(in Million Litres)

2014 2015 2016

Supermarkets 233.1 248.8 272.8

Convenience Stores 41.4 44.4 48.9

Forecourt Retailers 25.7 27.6 31.2

Hypermarkets 20.8 22.2 24.3

Discounters 2.2 2.3 2.3

Bottled water is a portable, accessible

and convenient way to stay healthy with

fresh, purified water throughout the

day.

In a society filled with shopping malls, office

parks and gyms with few water fountains,

and with running water often available only in

bathrooms, picking up a bottle of water in a

shop is often easier than looking for a

hygienic source of drinking water.

In 2016, supermarkets dominated the retail

channel with 272.8 million litres sold,

followed by convenience stores with 48.9

million litres.

SAMPLE FROM REPORT:SA BOTTLED WATER RETAIL CHANNEL

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aQuellé was established in 1997 after

the discovery and subsequent testing

and bottling of water at a natural source

buried in the heart of KwaZulu-Natal.

aQuellé introduced typical, well-known South

African flavours in 1998. This range has

since grown and now offers 9 refreshing

flavours, including Naartjie and Litchi.

The aQuellé bottling plant, which has grown

from a mere 360 square meters in 1998 to

over 14,000 square meters to date, is tucked

away in the heart of Kwazulu-Natal, where

aQuellé’s exceptionally pure natural spring

water flows under the earth’s surface.

In the bottling plant, the unique, customized

bottles are blown in-line. The water is

flavoured and carbonated, and then bottled

in a completely sterile environment.

On an annual basis aQuellé supports

various outdoor events all over South Africa,

such as the aQuellé Midmar Mile and Spar

Women’s Race, to name a few.

Coca Cola SA Brands:

Source: aQuellé; FB Reporter Image Source: aQuellé

Regarding the aQuellé product range, the natural

spring water packaging aims to have a classy feel

and a few functional benefits. It sports a flat base

for better stability, a flip-top for the 750 ml bottle

(which makes it easier to open and more

hygienic), as well as a comfortable handle for the

economic 5L bottle.

The flavoured sparkling drinks range bottle has a

new distinctive shape with a trendy wave design

and slim easy-grip waist, which is perfect for the

active consumer who is on the move.

In August 2016, aQuellé changed their packaging

to pink to help fight cancer on the limited edition

500ml and 750ml Still Natural Spring Water bottles

with its “Change in a Bottle campaign”. The bottles

were wrapped in pink, and every pink bottle sold,

added up to the R300,000 the company donated

to Cansa, CHOC and the Pink Drive.

SAMPLE FROM REPORT: SA MANUFACTURERS: AQUELLÉ

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South Africa's retail sector has

remained resilient in the face of an

economic downturn and the

devastating drought. Retail trade sales

grew by 1.7% in May 2017 compared

with the same period a year ago.

Much of the growth came from retailers of

food, beverages and tobacco in specialised

stores.

For the year ending 2 July 2017, the

Shoprite Group (including the Shoprite and

Checkers brands) saw turnover grow by a

solid 8.4% to R141 billion. Trading profit

grew by 11.6% to R8 billion.

For the 52 weeks ending 26 February 2017,

Pick n Pay delivered a turnover of R77.5

billion (a growth of 7% compared to R72.4

billion in 2016).

Spar Southern Africa’s turnover (for the six

months ending March 2017) increased by

4.9% to R32.5 billion (2016: R31.0 billion).

Coca Cola SA Brands:

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For the 52 weeks ended 25 June 2017,

Woolworths Food’s turnover and concession sales

increased by 4.6% to R27.7 billion.

Turnover for Massmart amounted to R42.6 billion

for the 26 weeks ended 25 June 2017, an increase

of 0.4% compared to R42.5 billion for the 26

weeks up to 25 June 2016.

In August 2017, a pricing analysis was conducted

with the retail chains below, who were compared

on baking ingredients, beverages, cereals and

porridge, and staples.

Interestingly, Pick n Pay proved cheapest, with

Shoprite (commonly perceived as a ‘cheaper

retailer’) being the 2nd most expensive shop.

Source: OnShelf; Massmart; Pick n Pay; Shoprite Holdings; Spar Group;

Woolworths Holdings; Businesslive; Businesstech; Checkers Image Source: Pixabay

R632.87

R628.04

R613.25

R596.04

570 580 590 600 610 620 630 640

BASKET OF GOODS PRICING ANALYSIS: 2017

SAMPLE FROM REPORT: SA RETAIL OVERVIEW

BRAND AND SIZE

Bonaqua

500ml N/A R6.49 R5.99 N/A N/A R6.90 R5.62 R6.49

750ml

(pump)N/A R9.99 R9.49 N/A R10.90 R10.90 R8.46 R10.50

1.5L N/A R10.49 R10.99 N/A N/A N/A R9.54 R9.16

Cape Aqua

330ml N/A N/A N/A N/A N/A N/A N/A R4.99

500ml R5.49 R5.60 N/A N/A N/A N/A N/A R5.49

1L R8.49 N/A N/A N/A N/A N/A N/A R8.49

1.5L N/A N/A N/A N/A N/A N/A N/A R8.99

Ceres

500ml N/A N/A R7.49 N/A N/A N/A N/A R5.99

1L N/A N/A N/A N/A N/A N/A N/A R7.99

1.5L R9.99 N/A N/A N/A N/A N/A N/A R9.99

5L N/A N/A R23.49 N/A N/A N/A N/A N/A

This pricing analysis was conducted at retail stores and supermarkets during w/c 21 August 2017.

SAMPLE FROM REPORT STILL WATER PRICING ANALYSIS

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TABLE OF CONTENTS

1. Executive Summary (3 pages):

1.1 Global Industry Snapshot

1.2 South African Industry Snapshot

1.3 Industry Drivers and Restraints

2. Global Bottled Water Industry (12 pages):

2.1 Global Bottled Water Industry Overview: PACK MIX OF BEVERAGES WORLDWIDE IN 2016, BY PACKAGING TYPE (Graph)

2.2 Global Bottled Water Industry Overview: Consumption: SHARE OF CONSUMPTION OF PACKAGED BEVERAGES WORLDWIDE IN 2016, BY BEVERAGE

TYPE (Graph)

2.3 Global Bottled Water Industry Overview: Manufacturers

2.4 Key Global Bottled Water Markets: Regional- Asia-Pacific

2.5 Key Global Bottled Water Markets: Regional- North America: CONSUMPTION SHARE OF BEVERAGES IN THE UNITED STATES IN 2016, BY SEGMENT

(Graph)

2.6 Key Global Bottled Water Markets: Regional- Europe: PER CAPITA CONSUMPTION OF BOTTLED WATER IN EUROPE IN 2016, BY TOP 10 COUNTRIES

(IN LITRES PER CAPITA) (Graph)

2.7 Key Global Bottled Water Markets: Regional- South America

2.8 Global Bottled Water Industry Trends

2.9 Global Bottled Water Industry Market Drivers

2.10 Global Bottled Water Industry Market Challenges

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TABLE OF CONTENTS

3. South African Bottled Water Industry (39 pages):

3.1 South African Bottled Water Industry Overview (16 pages)

3.1.1 South African Bottled Water Industry Overview

3.1.2 South African Bottled Water Industry Market Size: BOTTLED WATER MARKET SIZE IN SA (IN MILLION LITRES): 2014-2016; SOUTH AFRICA'S MARKET

SIZE FOR BOTTLED WATER (IN MILLION LITRES): 2012-2016 (Table & Graph)

3.1.3 South African Bottled Water Market Environment

3.1.4 South African Bottled Water Market Environment: Volume by Top 5 Brands (2012-2016): TOP 5 BOTTLED WATER BRANDS IN SOUTH

AFRICA: 2012-2016 (MILLION LITRES) (Graph)

3.1.5 South African Bottled Water Market Environment: Volume by Top 5 Companies (2012-2016): TOP 5 BOTTLED WATER COMPANIES IN

SOUTH AFRICA: 2012-2016 (MILLION LITRES) (Graph)

3.1.6 South African Bottled Water Retail Channel: SA RETAIL CHANNEL FOR BOTTLED WATER SALES (IN MILLION LITRES): 2014-2016; SOUTH AFRICA'S

RETAIL CHANNEL IN BOTTLED WATER MARKET (IN MILLION LITRES): 2016 (Table & Graph)

3.1.7 South African Bottled Water Consumer Overview: Demographics & a Focus on Health; Cosmetic Benefits & the Role of Tech

3.1.8 South African Bottled Water Industry Trends

3.1.9 South African Bottled Water Industry Market Drivers

3.1.10 South African Bottled Water Industry Market Challenges

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TABLE OF CONTENTS

3. South African Bottled Water Industry (39 pages):

3.2 South African Bottled Water Manufacturing Overview (23 pages)

3.2.1 SA Bottled Water Manufacturers: aqua.v

3.2.2 SA Bottled Water Manufacturers: Aquabella

3.2.3 SA Bottled Water Manufacturers: aQuellé

3.2.4 SA Bottled Water Manufacturers: Clover Waters: CLOVER BOTTLED WATER BRANDS MARKET SHARE: 2014-2016 (Graph)

3.2.5 SA Bottled Water Manufacturers: Clover Waters: Aquartz Mineral Water, Nestlé Pure Life

3.2.6 SA Bottled Water Manufacturers: Coca-Cola: COCA-COLA'S REVENUE AND INCOME IN MILLION US DOLLARS (Graph)

3.2.7 SA Bottled Water Manufacturers: Coca-Cola: Bonaqua, Glacéau Vitaminwater, Valpré

3.2.8 SA Bottled Water Manufacturers: Go Water

3.2.9 SA Bottled Water Manufacturers: Just Water

3.2.10 SA Bottled Water Manufacturers: La Vie De Luc

3.2.11 SA Bottled Water Manufacturers: Nestlé Waters: NESTLÉ WATER RESULTS 2016 (Table)

3.2.12 SA Bottled Water Manufacturers: Nestlé Waters: San Pellegrino

3.2.13 SA Bottled Water Manufacturers: Pioneer Foods: PIONEER FOODS REVENUE FOR THE SIX MONTHS ENDED 31 MARCH 2017 (IN MILLION RANDS)

(Graph)

3.2.14 SA Bottled Water Manufacturers: Pioneer Foods: Ceres Spring Water

3.2.15 SA Bottled Water Manufacturers: Tsitsikamma Crystal

3.2.16 SA Bottled Water Manufacturers: Verve

3.2.17 SA Bottled Water Manufacturers: Other

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TABLE OF CONTENTS

4. South African Bottled Water Retail Analysis (34 pages):

4.1 SA Retail Overview (20 pages)

4.1.1 SA Retail Overview: BASKET OF GOODS PRICING ANALYSIS: 2017 (Graph)

4.1.2 SA Retail: Checkers

4.1.3 SA Retail: Fruit and Veg City

4.1.4 SA Retail: Massmart

4.1.5 SA Retail: Pick n Pay: GROUP TURNOVER (RAND BILLION): 2015-2017 (Graph)

4.1.6 SA Retail: Shoprite & The Shoprite Group

4.1.7 SA Retail: Spar

4.1.8 SA Retail: Woolworths: WOOLWORTHS HOLDING REVENUE: 2013-2017; WOOLWORTHS SA FOOD SALES: 2015-2017 (Graphs)

4.1.9 SA Retail: Eish2O

4.1.10 SA Retail: H2O

4.1.11 SA Retail: Perfect Water

4.1.12 SA Retail: RO3 Oasis

4.1.13 SA Retail: RO Water Systems

4.1.14 SA Retail: Water Bar Retail Other

4.1.15 SA Retail: Engen Quick Shop, Shell Select

4.1.16 SA Retail: BP Wild Bean, Caltex Fresh Stop

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TABLE OF CONTENTS

4. South African Bottled Water Retail Analysis (34 pages):

4.2 Bottled Water Pricing Analysis (14 pages) (conducted w/c 21 August 2017)

4.2.1 Still Water: Aquabella Lightweight Plastic, Aquartz Active Natural Mineral Water, Aquartz Pure Natural Mineral Water,

aQuellé, Bonaqua, Cape Aqua, Ceres, Darling, Eastern Highlands, Evian, Giant Thirst, Hydr8 Spring Water Sport, Just

Water, Nestlé Pure Life Mineral Water, Spar Still Spring Water, Valpré, Woolworths, Tsitsikamma.

4.2.2 Sparkling Water: Aquartz Pure, aQuellé, Aqua Panna, Cape Aqua, Darling Springs, Nestlé Pure Life Mineral Water, San

Pellegrino, Valpré, Woolworths.

4.2.3 Flavoured Water: aQuellé, Bonaqua, Cape Aqua, Darling Springs, Eastern Highlands, Glacéau Vitamin Flavoured Water,

Seltzer, Woolworths Flavoured Sparkling.

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

Quickshop, Makro and Spar.

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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