Bottled Water: Flavoured & Unflavoured Innova Market Insights June 2009 Introduction This review focuses on ‘Bottled Water flavoured & unflavoured’ global product launches from the Innova Database. The review contains information regarding new ‘Bottled Water flavoured & unflavoured’ product launches from January 2008 to December 2008. Market Analysis Company Analysis Positioning Analysis Flavour Analysis Packaging Analysis Bottled Water Flavoured & Unflavoured Product Trends Conclusion Market Category Breakdown Bottled Water Vs Countries United States is the king of flavoured & unflavoured bottled water launches. Germany (18%) takes second place in flavoured bottled water launches, and Japan (25%) takes second place in bottled unflavoured water launches. Future Market Predictions •The largest single market is the US market, with a value in 2006 of $15.3bn, projected to rise by $4.0bn by 2010. In monetary terms, this represents the greatest value growth, driven by the size of the market and a high projected CAGR rate of 6.0%. The still unflavored water category is the largest of all the bottled water categories. •In 2006 the combined markets of Europe, the US and Japan was estimated to be worth $32.4bn. Still unflavored water is also by far the largest bottled water category in terms of volume sales. In 2006, volume sales for this category were estimated at 56.3bn liters. This is projected to rise by 12.1bn liters to a new level of 68.4bn liters in 2010. •Between 2006 and 2010 the value of the combined US, European and Japanese bottled water market is projected to see a compound annual growth rate (CAGR) of 5.0%. Volume growth will be healthy at a projected CAGR of 4.7% for the total market. In value terms, Europe is the largest regional market for bottled water and this will remain constant over the period. •Of all markets, the UK is projected to see the highest rate of value growth at 8.7%, from $2.4 billion in 2006 to $3.3bn in 2010. (Source:www.mindbranch.com) Positioning Analysis Bottled Water: Flavored Market Analysis Bottled Water - Flavored Market Analysis: Bottled Water - Flavored -Top 15 Countries The beauty water market was initially launched in mid 2007, gaining sales of GB £200,000 in its first year, which has since risen to £500,000, with distribution deals for a number of the major multiple retailers and an introduction into the French market. A more detailed review of product activity indicates that recent launches in Europe and the US have focused particularly on the bottled water market, where the additional benefit of skin hydration can be exploited to the full alongside the benefits of the added ingredients. Drinks with functional ingredients intended to help with specific health issues are common to the Japanese market and are growing in popularity in the US and Europe. Company Analysis: Bottled Water Flavored - Top 15 Companies Products Company Launched COCA COLA 19% •Coca Cola is the biggest bottler DANONE 12% and marketer of bottled water in the world. NESTLE 8% GEROLSTEINER BRUNNEN GMBH & CO KG 8% •Nestlé launched Pure Life Natural Fruit Flavored Water PEPSICO 7% Beverages which are all 100% caffeine-free, made with natural TARGET 7% fruit essence, SPLENDA® Brand AG BARR 6% Sweetener, or Sucralose, is a no- calorie sweetener that is made USN (PTY) LTD 5% from sugar so it tastes like sugar. COTT BEVERAGES INC 5% SOBE 4% WOOLWORTHS 4% OWATER 4% BIG EARTH BRANDS LTD 4% SNAPPLE 4% AGUAS SANTA LUCIA LTDA 3% Positioning Analysis Bottled Water - Flavored Positioning Analysis Positioning Analysis – Positioning Category Positioning Category Products Launched Low Calorie 21% Natural 11% No Additives/Preservatives •Today's consumer is not only 10% driven to buy bottled water for Vitamin/Mineral Fortified 10% freshness and hygiene reasons, but also for the added benefits Sugar Free 9% such as vitamin and mineral Antioxidant 7% fortification, infused antioxidants, and other functional ingredients. Ethical 4% Sports & Recovery 4% Energy/Alertness 4% Kosher 4% Weight Management 4% Wellness 3% Low Sodium 3% Allergy 3% Children (5-12) 3% Sugar Free Reduces Calorie Consumption One of the preferred choices in Bottled water Flavored products sector among modern health conscious consumers Colombia: Dasani Taiwan: Carrefour Blackberry Sparkling Water with Flavored Water Orange Flavor Czech Republic: Lychee United States: Fruit Finland: H2Oh Lemon and Ginger Flavored Motions Peach-Grapefruit & Lime Lightly Sparkling Water Flavored Water Beverage Sparkling Water Increasing Daily Fiber Intake •Drinking for fiber instead of eating is one of the latest trends driving NPD for this category. United States: Vitamin+Fiber Water Pomehydrate Flavor. Rich pomegranates would grace our water with their flavor. With more fiber than pomegranate juice, now Source: www.vitaminfiberwater.com you can put good taste to work. In Search Of Dieters •Consumers are turning more to liquid solutions to aid with weight loss. Germany: Japonica Cassis Leict & Still United Kingdom: Bio-Synergy - Diet Non-Carbonated Water Beverage Fitness Water Flavored with Black Currant Latvia: Aqua Plus Nearwater Raspberry Russia: Slim+ Non- South Africa: USN Leanfast Lean-R Strawberry Kiwi alcoholic Aerated Drink - Flavored Water Mandarin Flavor Dairy Peptides for “lowering blood pressure” UK: A bottle of natural pomegranate flavored spring water with dairy peptides to help lower blood pressure and maintain a healthy heart. Claims: Suitable for diabetics. Gluten free. Suitable for vegetarians. Lactose free. Water with dairy peptides to help lower blood pressure and maintain a healthy heart. With sweetener. This product contains special dairy peptides which naturally occur in dairy foods. Scientific studies show that they actively help control blood pressure as part of a healthy diet. Only 7.5 calories per 500ml serving. Works With Water 120/80 is designed for people who want to follow a blood pressure controlling diet. Source: www.blisstree.com Kids Need Hydration Too •The number of kids flavored bottled water products is on the increase, following adult product trends. United Kingdom: Calypso Disney High School Musical 3 Senior Year Strawberry & Blueberry Flavour Natural Mineral Water Drinks United States: Capri Sun Roarin' Waters - Grape Flavored Water Beverage. United States: Eating Right Kids Uniting Strawberry Kiwi Flavored Water Beverage for Kids Canada: Simply Kids 100% Petit Vitamin Enriched Water - Watermelon New Generation Amino Acid Citrulline Water Japan: Asahi Soft Drinks developed a product containing citrulline and shared this with Shiseido Pharmaceuticals and confectionery company Lotte to allow more than one company to develop products using it. Citrulline is a multifunctional amino acid ingredient derived from watermelon (Citrullus vulgaris), working as an antioxidant, reducing the build-up of ammonia in the bloodstream and dilating blood vessels, preventing muscle fatigue and boosting metabolism. As a result it may find applications as a functional ingredient in the prevention of vascular diseases and also in sports nutrition to improve endurance and improve recovery rates. Sports Waters Come Into Play United States: Sport Australia: Play United States: Owater Wave Vitamin Infused Sports Water - Infused Strawberry Water in Cherry Slam Blackcurrant with Caffeine and Flavor Electrolytes Water Philippines: Vitwater Nutrient Enhanced Flavored Water - Endure/Fruit Punch with Ribose Israel: Mey Eden Active - Flavored Water with Lemon and Spearmint Antioxidant Waters For More Health •Creating flavor and health appeal simultaneously by using fruits with antioxidant qualities. United States: Snapple Canada: Aquafina Plus+ Vitamin Antioxidant Water - Grape Enhanced Water – Passion Fruit Pomegranate Flavour Citrus Flavour United States: Archer Farms United States: Snapple Beauty Fortified Water Antioxidant Water - Beverage - Pear Lychee Dragonfruit Flavour Adding Flavor Without Too Many Calories Calorie free or reduced calorie flavored water options are plentiful. Germany: Austria: Low United States: Carbonated Natural Germany: Volvic Calorie Drink Archer Farms Netherlands: Netherlands: Spa & Mineral Water Drink Landfrucht With Pear Elder Touch of Eazy Active Fruit Carbonated with Orange and Zitrone - Lemon Flavor Spearmint All Water with Mineral Water in Fresh Ginger Flavor Flavored Mineral Natural Water Lemon & Lime Orange Flavor Beverage Water Flavour Analysis Bottled Water - Flavored Flavour Analysis: Flavour Group Flavour Analysis: Flavour Sub-Category Citrus and Berries & Summer Fruits still dominate as far as flavour selection is concerned. However, consumers seem to be more willing to try new and unusual tastes. Tea, Elderflower, Melon and Mint flavours are up and coming flavours which offer the consumer something a bit unique to experience. Sparkling Water with Fruit Extracts Flavour Analysis: Top 10 Flavours Kiwi has emerged as a hot new flavour Kiwi Fruit Receives New Found Fame •Nestlé Pure Life Natural Fruit Flavored Water Beverages are all 100% caffeine-free, made with natural fruit essence, SPLENDA® Brand Sweetener, or Sucralose, is a no-calorie sweetener that is made from sugar so it tastes like sugar (Source: www.nestle-purelife.us) Flavour Analysis: Primary Flavour Adding Tea For Flavour and Function There is an increasing number of products containing natural extracts such as Tea. Tea is renowned for its antioxidant qualities. Green coffee extract is finding more applications as it can raise the resting metabolic rate and thus increases energy expenditure, which is ideal for dieters. United States: Emerge Nutrient Zero Calorie Relax Green Tea with Germany: Volvic Tee Creation Russia: Aqua Minerale Berry Infused Water Fernostlicher Tee/Zitrone-Limette Active Water - Green - Mineral Water with Far Eastern Tea and Peppermint Tea and Lemon-Lime Flavour Germany: Gerolsteiner Moment Rooibostee & Guatemala: Water Pfirsich - Water with Rooibos Flavored with Green Tea Tea and Peach Flavour Coco-Cola Sparkling Water with New Flavours Vegetable Extracts For Natural Appeal Demand for natural ingredients like vegetable extracts is entering the mainstream soft drinks sector which can replace the artificial flavours and colors. Spain: Pascual Nature Descanso Herb Flavored Mineral Water with Lime Blossom, Melissa and Chamomile. Contains vegetable extracts Portugal: Frize Tangerine Flavored Mineral Water. Naturally sparkling carbonated mineral water with tangerine flavor and vegetable extracts. Portugal: Frize Lemon Flavored Mineral Water. Lemon flavored naturally sparkling carbonated mineral water with vegetable extracts. Flavour Analysis: Secondary Flavour Guarana Moves From Energy Drinks to Water Guarana herb is one of the popular ingredients used in herbal weight loss products. Guarana has a long list of reputed health benefits; it is a natural stimulant and has fat burning or weight loss properties. Serbia: Fresh Water with Hungary: Grapefruit-Lemon Hungary: Natur Aqua Lime and Guarana Flavors Balm Flavored Carbonated Emotion Citrus- Water with Guarana Guarana Flavoured Still Water Brazil: Antartica Guarana Flavored Water Australia: Spring Valley Smart Water Jump-start Honey Is The New Inclusion of Choice United States: United States: Japan: JT Echinacea Water Honeydrop Bee Calm China: OKF Nude Natural Honeydrop Bee Good with Honey and Vitamin C Chamomile Tea and Fruit Drink - Grape Apple and Honey Honey Drink Raisin. Contains honey Drink Packaging Analysis Bottled Water - Flavored Packaging Analysis – Flavoured Water Bottled Water: Unflavored Market Analysis Bottled Water - Unflavored Market Analysis: Bottled Water Unflavored -Top 15 Countries Company Analysis: Bottled Water Unflavored - Top 15 Companies Company Products Launched KINKI PARTNERS LTD 23% PROJECT 7 INC 13% NESTLE 13% DANONE 10% PURBLU BEVERAGES INC 7% SAN PELLEGRINO 6% APOLLINARIS BRUNNEN D 4% COCA COLA 4% PERRIER 4% TRADER JOES 3% USN (PTY) LTD 3% PEPSICO 3% WHOLE FOODS 3% MEDAQUA KFT 3% ARVI KALAKUTAI 3% Positioning Analysis Bottled Water - Unflavored Positioning Analysis Positioning Analysis: By Category Positioning Category Products Launched in (%) Natural 41 Ethical 17 Ready-to-drink 16 Low Sodium 6 Children (5-12) 4 Indulgent and Premium 3 Seasonal/In-Out Products 2 Halal 2 No Additives/Preservatives 2 Sports & Recovery 1 Vitamin/Mineral Fortified 1 Allergy 1 Low Calorie 1 Gluten Free 1 Kosher 1 Total 99 Promoting Natural Micronutrient Water- A World First Ingredients: Antioxidants: Prevent cellular damage, and help your body recover faster from exercise. Antioxidants also slow the aging process by protecting cells and tissues from oxidation. Electrolytes: Necessary for a healthy metabolism and cellular activity, electrolytes are mineral salts that carry energy throughout your body. Zinc: Found in almost every cell in your body, zinc is an essential mineral that supports a healthy immune system. Zinc stimulates the activity of enzymes and helps fight colds, aides in the healing process, and improves cellular function (Source: www.metroelectro.com) Evian Leads With Special Edition Launches United States: Evian Jean Paul Gaultier Pret-A-Porter Water. A giant crystals revealing a shimmering gown, over sized letters generously enveloping the bottle and a play on transparency and optical illusions. This special edition Evian bottle offers an extravagant celebration of the simplicity of pure beauty of porter water. Magnified by a unique color so very much his own, the majestic blue that offers a subtle reminder of a famous mariniere, the Evian Pret-a-porter version by Jean Paul Gaultier is already widely coveted and will soon be gracing every table. Paying For Premium •Consumers are ready pay a for premium products. There are plenty of products claiming to be of superior quality and/or from a superior water source. United Kingdom: Calypso Natural Mineral Water Ice Cubes. A bag of premium quality, individually Australia: Macro frozen ice cubes made from Wholefoods Market - natural mineral water. Australian Natural Still Water. Natural United States: Delicious South Korea: Lotte premium water. Genuine Glacial Water. Bluemarine Water. Premium Delicious Genuine Glacial deep sea drinking water in a Australia: Mountain H2O Premium Water rests on top of a PET bottle. Natural Spring Water. BFA registered volcanic port and melts product. Natural product. from the bottom up. Filtration For Purity Canada: Nestle Pure Life Purified Water. Every drop of water in every bottle of Nestle Pure Life purified water goes through a multi-step process of filtration that involves reverse osmosis and/or distillation. The water is enhanced with a unique blend of minerals for great taste. Packaging Analysis Bottled Water Unflavored Packaging Analysis – Unflavoured Water Thumb’Up Sport Closure Gets Thumbs Up Bubbles For Improved Grip Designer: ristina Menegozzo, Architect Design Concept: The concept of the water bubble was the inspiration for the bottle’s design. The uniqueness of its shape is combined with the necessities of practical use. The bubble allows the hand to grasp the bottle easily, without letting it slip when the water is poured. The little bubbles repeated in the lower part have a partly aesthetic function, but they also give an extra non-slip handhold, as well as serving as ribbing to stiffen the bottle and compensate for the very small weight of the PET (Polyethylene terephthalate) of which the bottles are made, and Source: www.santanna.it preventing the bottle from losing its shape when grasped. Eco-Friendly Packaging Source: www.nestle-purelife.us AquaFlexCan Is Flexible But Can Stand Up Packaging Analysis Spain: Evian Christian Lacroix - Refreshing natural United Kingdom: mineral water in an elegant Sparkling Blue Keld Christian Lacroix designed Artesian Carbonated glass bottle. Natural Mineral Water in glass bottle. Poland: Toma Frutado Apple Mint. Apple and Japan: Sence Water mint flavored water. with Rose Aroma. Imported rose Malaysia: Glinter Air Mineral flavored water from Semulajadi - Natural Mineral Bulgaria. Beautiful Water. A innovative bottle of colored water and natural mineral water. pretty bottle. Packaging Analysis Indonesia: Cap Panda Orange Flavored Water. Orange flavored water in a plastic glass. Finland: Plup 0.4l Lahdevesi - Spring Water. Spring water from Hong Kong: Radical Grabber Anttila well (Finland), contained in Hydrogen Water. Hydrogen a specially designed plastic bottle. water in an aluminum bottle. Brazil: Antarctica Tonica - Tonic Carbonated Drink. United States: World Classics Carbonated quinine Trading Company National tonic water in 350ml Forest Protected Spring Water. aluminium can. National forest protected spring water in a plastic jug. Bottled Water Trends Bottled Beauty Claims Some bottled water containing antioxidant fruits claim to enhance ‘beauty’. Berries are the top antioxidant rich fruits and the addition of these fruits to bottled water increases the nutritional quality. United Kingdom: Bio- Synergy Beauty From Within Water With A Hint Of White Grape United Kingdom: Boots Water Vit Beauty Strawberry & Cherry Spring Water Drink Pure Beauty Award Winner 2008 Source: www.workswithwater.co.uk Case Study: Clear Skin Beauty Water Manufacturers are aligning themselves with the beauty industry and developing products to aid weight control, skin health, and wellbeing. A close link between hydration and beauty is being promoted. Source: www.workswithwater.co.uk United Kingdom: Works with Water Beauty Natural Flavor Spring Water - Raspberry and Rose Water for Clear Skin Launching in June Source: www.workswithwater.co.uk Limited Edition For Special Occasions France: Evian's Spring France: Evian's Spring Collection – Water. Evian is Collection Haute Couture – yet another brand that jumps Water. Evian is yet another on the fashion endorsed brand that jumps on the limited edition range. fashion endorsed limited edition range. Adding Oxygen Adds Value •Oxygenated water is water that is infused with oxygen. People who consume oxygenated water acquire more oxygen into their bloodstream. This has a variety of health benefits for a variety of people. Not only is drinking oxygenated water a good idea for active people, it’s actually a good idea for everyone (Source: www.hydratedmineralwaterblog.com) •Studies shows that oxygenated water is a consumable product that also has topical application benefits. A laboratory report from Baylor Research Foundation states that aerobic oxygen has successfully killed many forms of anaerobic bacteria such as Staph (Staphylococcus), Strep (Streptococcus), Giardia, Salmonella, and E. coli, to name but a few. Oxygenated water appears to enhance absorption and utilization of vitamins, minerals, amino acids, and herbs so effectively that supplementation volume can be reduced, while experiencing enhanced effects and increased energy, more stamina, improved concentration, more rapid healing, improved circulation, reduction of varicose veins, smoother skin, and more rapid recovery from exercise. Oxygenated water actually stimulated metabolic activity (Source: www.collagenweightloss.com) Indonesia: OxyFine Oxygenated Drinking Water. Hong Kong: Oxigizer - Oxygenated drinking water in Oxygenated Water. a PET bottle. Oxygenated water in a 500ml glass bottle. Indonesia: Air Ox Oxygenated Water. Oxygenated water in a plastic bottle. Contains 80 ppm of oxygen. Conclusion United States is the king in bottled water flavoured & unflavoured launches. Germany (18%) takes second place in bottled flavoured water launches, and Japan (25%) takes second place in bottled unflavoured water launches. Consumer concerns over rising obesity levels combined with an increase in public knowledge of health issues, has had a positive effect on the bottled water market. UK is the dominating leader in beauty water product launches. Drinks with functional ingredients intended to help with specific health issues are more common in the Japanese market, but are increasing in popularity in the US and Europe. 'Good-for-you' water products such as vitamin and mineral enhanced water are enjoying strong growth. In the flavour arena, citrus is the dominating flavour in bottled flavoured water, however there has been an abundance of enticing new flavours like tea, elderberry, melon and mint emerge in recent times. More superfruits will find their way into the bottled water category. The emerging trend of bottled waters is reliant not only on the sourcing of the ‘purest’ water, but also very much on packaging, designed to appeal to consumers seeking a super premium product. New packaging solutions will form a major part of brand extension activity as manufacturers reach new markets with more convenient packaging formats. High end premium products will become more prevalent in future years and packaging design will becoming increasingly important as a product differentiator.