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World market of bottled water
Amelia Díaz
Miquel Salgot
Universitat de Barcelona
Bottling market & companies
 Dynamic market where great
number of companies are
competing
 Sector where a big part of the world
market is still controlled by local
firms
 Three main types of companies
Types of bottling companies
 Small or big companies created
purposely for the commercialization
of a specific brand of bottled water
 Several of them are centennial and
family owned. Nevertheless, most of
them grouped or are controlled by
big worldwide corporations like
Nestlé and Danone
1
 Big food and beverage corporations,
like Coca-Cola and PepsiCo. For
those corporations, water is a key
component (raw material) for their
products and entered the bottled
water market to improve the
efficiency of and by using their
worldwide distribution network
2
 Urban water supply companies
(network companies), using their
knowledge on water treatment and
purification to enter a more profitable
business
3
Here comes your footer  Page 6
PEPSICO
COCA-
COLA
DANONE
NESTLÉ1
2
3
4
The big four
NESTLÉ
63 brands
http://www.nestle-
waters.com/brands/
all-brands
Located in 36
countries
97 bottling
factories
Distribution in
130 markets
NESTLÉ
Brands:
Internationally
prestigious
Functional brands
Nestlé ‘s trademark
waters
Brands
portfolio:
3 main types
Natural sources’
waters
Internationally known
brands
All brands coming from
protected sources
in France and Italy
San Pellegrino
Acqua Panna
Vittel
Perrier
NESTLÉ
Contrex
Nestlé
Functional brands
Natural source’s waters located
in national territories,
well positioned in the national
or regional markets
Nestlé brand waters, all having
identical quality but produced
in different places to minimize
transport costs
NESTLÉ
Nestlé’s brand waters
Nestlé Pure Life
NESTLÉ
Nestlé Pure Life
Commercialized in 27 countries,
in emergent markets
and in North America
2008, just in 10 years, became
the worldwide leader brand of bottled water
NESTLÉ
2008: more than 5 billion liters sold in the world
2009: 14% increase
NESTLÉ
2013: 11,7% market share.
Nestlé sales’ leader in
North America, Europe
and Latin America
Buying local well
known companies
Introduction of their own
brand Nestlé water
or
Main expansion strategy
Inroducción de su marca de
agua Nestlé
NESTLÉ
Saudí Arabia (2002)  Al Manhal, Springs
Nigeria and Algeria (2005)
Turkey (2006)  Erikli, Alaçam
Switzerland (2007)  Henniez, Cristalp
Mexico (2007): Gerber, Sta. María
Brazil (2009)  Sta Bárbara, Petrópolis
China (2009) Da Shan, Waterman, Deep Spring
Introduction of
Nestlé water brand
Chile (2007) Cachantun, Manantial, Porvenir
DANONE
Owns 2 of the first
5 worldwide
selling leader
brands : Evian and
Volvic
Sales: 18
billion liters
81 bottling
factories
Market share :
8,5%
World market of bottled water
World market of bottled water
World market of bottled water
Main international brands
Local brands leaders of the market
MAIN LEVERS FOR GROWTH IN 2013
World market of bottled water
2nd bigger bottled water producer in Europe and
important supplier in Asia- Pacific and Latin America
Its 2 bigger factories, both located in France,
represent approximately 15% of the total bottling
capacity of the group
DANONE
Its 2 bigger factories for bottling water in large containers,
both located in Indonesia, represented
nearly 8% of total production
DANONE
2009: exported to 150 countries
EVIAN
The main exported product of the group is
bottled water, mainly under the brands
Evian and Volvic
Leader brand in the UK
and second in Japan
DANONE
Leader brand in Germany
First imported brand in Japan
VOLVIC
COCA -
COLA
Es la mayor compañía de bebidas sin alcohol y el tercer
productor de agua embotellada en el mundo
2009: 79% of the total volume of units sold worldwide
were commercialized
through the associated bottling partners
The main company for non-alcoholic beverages
and the third bottled water producer in the world
The beverages are produced, distributed and sold
through the local associated
bottling companies, privately owned and administered
Here comes your footer  Page 28
Brands
We believe that water must be respected
as well as water is respecting us
Our sources: different places, the same quality water
COCA -
COLA
This water comes from the public distribution
network and is then purified
DASANI
In 1999 was introduced in the States with the
bigger publicity budget in the
bottled water industry
Its first brand
Mexico (2008)  El Agua de los Ángeles
Colombia (2009)  Brisa
Bolivia (2009)  Mineragua
Bolivia (2009)  Vital
Japan (2009)  I Lohas
COCA -
COLA
Apart, has been increasing
its water business during
the precedent years through
the purchase of companies
in several countries
PepsiCo
In the mid nineties entered the bottling water markets
by launching the brand
Aquafina
In 1999, became the fourth bottled water
supplierin the USA, with a 5,5% market share
2014: was the fourth ranked bottled still water
brand of the United States with about 0.86 billion
U.S. dollars worth of sales
AQUAFINA
PepsiCo
Purified public network water
Its first brand
Rusia  Minerale Acqua
Mexico  Electropura
United Kingdom V Water
PepsiCo
Apart from Aquafina in the
USA, PepsiCo owns other
brands in several countries
Global market forecast 2011-2021
Industry future perspectives
In the next five years, as a general tendency, the main
four companies will mainly center their efforts in the
USA and Europe markets, mature and consolidated, but
still heavily fragmented
The immediate future of the industry will be strongly
related to the results of the main companies in the
world water market
 Will be interesting to follow the
next steps of PepsiCo and Coca-
Cola: in only 10 years, with
Aquafina and Dasani brands,
started from zero and are now
the first and second selling
brands in the USA
 Next step: both companies will
attempt to control/dominate the
world market and challenge the
present leaders command:
Nestlé and Danone
 Due to the market contraction in
the last years, all the big players
in the bottled water market are
trying to position themselves in
the quickly growing markets in
developing countries
Approach to the commercial flows
 The WTO (World Trade
Organization) estimated that the
world water trade is limited to
bottled water and just represents
0,02% of the value of worldwide
goods
 25% of the billion bottles sold every
year in the world is sold out of its
country of origin
 75% is produced and distributed at
regional level
 More than 90% of Nestlé’s Water
volume is sold out in the country
where it is produced
 Vichy Catalán, from the three main
water bottlers in Spain, exported 3%
of its production to 29 countries
 In the next future, the tendency
seems to be an increase to the
bottling water flows at the local,
regional, national and international
levels
 The big bottling water corporations
did found a market niche in the
emergent countries
 The strategy for growing is right
now the acquisition of local, well
positioned companies
To finish...
 The comparatively high price
and the consideration of the
difficulties to recycle the
water containers is
generating certain rejection
from the public
 New York and Boston cities
launched a campaign pushing the
citizens to return to tap water
consumption
 Several USA and Australia
universities banned to sold
bottled water in the campus
World market of bottled water
World market of bottled water
World market of bottled water

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World market of bottled water

  • 1. World market of bottled water Amelia Díaz Miquel Salgot Universitat de Barcelona
  • 2. Bottling market & companies  Dynamic market where great number of companies are competing  Sector where a big part of the world market is still controlled by local firms  Three main types of companies
  • 3. Types of bottling companies  Small or big companies created purposely for the commercialization of a specific brand of bottled water  Several of them are centennial and family owned. Nevertheless, most of them grouped or are controlled by big worldwide corporations like Nestlé and Danone 1
  • 4.  Big food and beverage corporations, like Coca-Cola and PepsiCo. For those corporations, water is a key component (raw material) for their products and entered the bottled water market to improve the efficiency of and by using their worldwide distribution network 2
  • 5.  Urban water supply companies (network companies), using their knowledge on water treatment and purification to enter a more profitable business 3
  • 6. Here comes your footer  Page 6
  • 8. NESTLÉ 63 brands http://www.nestle- waters.com/brands/ all-brands Located in 36 countries 97 bottling factories Distribution in 130 markets
  • 9. NESTLÉ Brands: Internationally prestigious Functional brands Nestlé ‘s trademark waters Brands portfolio: 3 main types Natural sources’ waters
  • 10. Internationally known brands All brands coming from protected sources in France and Italy San Pellegrino Acqua Panna Vittel Perrier NESTLÉ Contrex Nestlé
  • 11. Functional brands Natural source’s waters located in national territories, well positioned in the national or regional markets Nestlé brand waters, all having identical quality but produced in different places to minimize transport costs NESTLÉ
  • 12. Nestlé’s brand waters Nestlé Pure Life NESTLÉ
  • 13. Nestlé Pure Life Commercialized in 27 countries, in emergent markets and in North America 2008, just in 10 years, became the worldwide leader brand of bottled water NESTLÉ 2008: more than 5 billion liters sold in the world 2009: 14% increase
  • 14. NESTLÉ 2013: 11,7% market share. Nestlé sales’ leader in North America, Europe and Latin America Buying local well known companies Introduction of their own brand Nestlé water or Main expansion strategy
  • 15. Inroducción de su marca de agua Nestlé NESTLÉ Saudí Arabia (2002)  Al Manhal, Springs Nigeria and Algeria (2005) Turkey (2006)  Erikli, Alaçam Switzerland (2007)  Henniez, Cristalp Mexico (2007): Gerber, Sta. María Brazil (2009)  Sta Bárbara, Petrópolis China (2009) Da Shan, Waterman, Deep Spring Introduction of Nestlé water brand Chile (2007) Cachantun, Manantial, Porvenir
  • 16. DANONE Owns 2 of the first 5 worldwide selling leader brands : Evian and Volvic Sales: 18 billion liters 81 bottling factories Market share : 8,5%
  • 21. Local brands leaders of the market
  • 22. MAIN LEVERS FOR GROWTH IN 2013
  • 24. 2nd bigger bottled water producer in Europe and important supplier in Asia- Pacific and Latin America Its 2 bigger factories, both located in France, represent approximately 15% of the total bottling capacity of the group DANONE Its 2 bigger factories for bottling water in large containers, both located in Indonesia, represented nearly 8% of total production
  • 25. DANONE 2009: exported to 150 countries EVIAN The main exported product of the group is bottled water, mainly under the brands Evian and Volvic Leader brand in the UK and second in Japan
  • 26. DANONE Leader brand in Germany First imported brand in Japan VOLVIC
  • 27. COCA - COLA Es la mayor compañía de bebidas sin alcohol y el tercer productor de agua embotellada en el mundo 2009: 79% of the total volume of units sold worldwide were commercialized through the associated bottling partners The main company for non-alcoholic beverages and the third bottled water producer in the world The beverages are produced, distributed and sold through the local associated bottling companies, privately owned and administered
  • 28. Here comes your footer  Page 28 Brands
  • 29. We believe that water must be respected as well as water is respecting us
  • 30. Our sources: different places, the same quality water
  • 31. COCA - COLA This water comes from the public distribution network and is then purified DASANI In 1999 was introduced in the States with the bigger publicity budget in the bottled water industry Its first brand
  • 32. Mexico (2008)  El Agua de los Ángeles Colombia (2009)  Brisa Bolivia (2009)  Mineragua Bolivia (2009)  Vital Japan (2009)  I Lohas COCA - COLA Apart, has been increasing its water business during the precedent years through the purchase of companies in several countries
  • 33. PepsiCo In the mid nineties entered the bottling water markets by launching the brand Aquafina In 1999, became the fourth bottled water supplierin the USA, with a 5,5% market share
  • 34. 2014: was the fourth ranked bottled still water brand of the United States with about 0.86 billion U.S. dollars worth of sales AQUAFINA PepsiCo Purified public network water Its first brand
  • 35. Rusia  Minerale Acqua Mexico  Electropura United Kingdom V Water PepsiCo Apart from Aquafina in the USA, PepsiCo owns other brands in several countries
  • 38. In the next five years, as a general tendency, the main four companies will mainly center their efforts in the USA and Europe markets, mature and consolidated, but still heavily fragmented
  • 39. The immediate future of the industry will be strongly related to the results of the main companies in the world water market
  • 40.  Will be interesting to follow the next steps of PepsiCo and Coca- Cola: in only 10 years, with Aquafina and Dasani brands, started from zero and are now the first and second selling brands in the USA  Next step: both companies will attempt to control/dominate the world market and challenge the present leaders command: Nestlé and Danone
  • 41.  Due to the market contraction in the last years, all the big players in the bottled water market are trying to position themselves in the quickly growing markets in developing countries
  • 42. Approach to the commercial flows
  • 43.  The WTO (World Trade Organization) estimated that the world water trade is limited to bottled water and just represents 0,02% of the value of worldwide goods  25% of the billion bottles sold every year in the world is sold out of its country of origin  75% is produced and distributed at regional level
  • 44.  More than 90% of Nestlé’s Water volume is sold out in the country where it is produced  Vichy Catalán, from the three main water bottlers in Spain, exported 3% of its production to 29 countries
  • 45.  In the next future, the tendency seems to be an increase to the bottling water flows at the local, regional, national and international levels  The big bottling water corporations did found a market niche in the emergent countries  The strategy for growing is right now the acquisition of local, well positioned companies
  • 46. To finish...  The comparatively high price and the consideration of the difficulties to recycle the water containers is generating certain rejection from the public
  • 47.  New York and Boston cities launched a campaign pushing the citizens to return to tap water consumption  Several USA and Australia universities banned to sold bottled water in the campus