UK: Eastern Europe primed for water growth, says analyst
Eastern Europe is set to provide impressive growth for bottled water companies, according to a recent report.
Sales of bottled water last year in the region rose by 9%, a report by drinks analyst Zenith International has highlighted.
For the first time, annual consumption in the region broke the 10bn-litre barrier. An average summer across Europe, following the poor weather of 2004, reinvigorated demand in what is one of the world's fastest growing bottled water markets, the report, published yesterday (12 September), noted.
"East European growth promises to remain strong for a number of years to come," said Zenith research director Gary Roethenbaugh. "We expect volumes to exceed 11bn litres in 2006, particularly after an excellent summer. Annual rises are forecast at around 7% over the next five years. With sustained marketing investment and favourable weather conditions, these estimates could prove conservative."
He added: "In contrast, sales in West Europe will look relatively flat, despite a boost from a hot early summer this year."
With average bottled water consumption per person at 33 litres in East Europe, compared with 108 litres in West Europe, the region offers impressive growth potential, said Zenith.
"Rising standards of living, together with a growing appreciation of health and hydration, should provide great opportunities for water bottlers," Roethenbaugh continued. "Aggressive pricing to gain market share, advances by own label and discount brands, alongside substantial advertising budgets from multinationals and local players alike, will also drive volume sales."
Poland was the largest consumer of bottled water last year, accounting for 23% of total volume. Russia was second at an advancing 21% and Romania was third with a 10% share. In terms of growth rates, Bulgaria led the way with a 22% increase, followed by Hungary, Estonia and Russia. Eleven of the 15 countries analysed experienced growth rates in excess of 5%.
"Zenith anticipates further acquisitions in the region by the top four bottlers, given this climate of relatively high growth and a plethora of local bottlers," Roethenbaugh said.
"However, national operators have strong positions and a loyal customer base. They include: European Drinks in Romania, Jamnica in Croatia and Myrhorod in the Ukraine."
Nestlé Waters is to launch bottled water brand Vittel in China next month after securing a deal with one of the country's leading wine and spirits distributors.....
PepsiCo has promoted a Gatorade executive to head the sports marketing for the energy drink brand. The US soft drinks giant said yesterday (8 March) that Jeff Urban will replace Tom Fox from 1 April....
Nestlé Waters is looking to further grow its business in Italy after a successful year in the country in 2006....
Nestlé Waters will next month enter the diet soft drinks segment with the launch in France of a zero-calorie, fizzy, fruit-flavoured beverage named Frisson....
Nestlé Waters is looking to bolster its presence in the enhanced water category after a solid performance from its core business last year, its chairman and CEO said today (6 March)....
Philippines food and beverage group Universal Robina Corp. (URC) has revealed that it will pay around US$5m for Nestlé Waters' local bottled water business....
Royal Unibrew has warned that high raw material costs and ongoing price competition in northern Europe could hit its performance this year. The Danish brewer issued a note of caution on its 2007 outlo...
Chinese soft drinks group Hangzhou Wahaha Group Co. has reportedly said today (5 March) that it has no plans to list....
- How the can has a part to play in beer's future
- What do US wholesalers think of spirits trends?
- Experienced hands hold firm at CCEP - Analysis
- It isn't just men who like beer - Comment
- Why sports drinks fail to ride the Olympic wave
- Diageo Australia's commercial head to step down
- Stoli Group CEO Rob Cullins to step down
- William Grant sees 2015 sales, profits lift
- Diageo reveals revival plan for former factory
- Jose Cuervo applies to go public
- Global gin insights - market forecasts, product innovation and consumer trends
- The Next Seven Big Beverage Markets
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends
- Global rum insights - market forecasts, product innovation and consumer trends
- Global RTD insights - market forecasts, product innovation and consumer trends