Milling & Baking News Corporate Profiles - 2017 - 34

INDUSTRY
Beverages
REVIEW:
Beverages

Beverages
Bottled water, energy drinks charge ahead

LEADING CONVENIENCE

Nestle Waters North America, Inc.
Coca-Cola Co.
Glaceau Water Co., Inc.
PepsiCo, Inc.
Natural Waters of Viti Ltd.
Quaker Oats Co.
Niagara Bottling L.L.C.
Crystal Geyser Water Co.
Danone Waters of North America
Private label
Total

Dollar sales
$2,357,008,128
$695,956,224
$674,563,200
$662,473,600
$194,220,576
$190,213,120
$134,417,904
$132,028,304
$112,440,600
$2,218,932,992
$7,840,530,432

PepsiCo, Inc., Purchase, N.Y., in a July 11 earnings call.
Globally, bottled water's share in the overall beverage category increased to 19% in 2016 from 16% in 2011, according
to Zenith, based in Bath, United Kingdom. Bottled water trailed
only tea, which held a 21% beverage share in 2016 and 22% in
2011. Carbonates were at 12% in 2016 and 13% in 2011.
"There is still a lot of headroom for growth," said Matt Wilton,
commercial director for Zenith, in a Sept. 6 webinar. "Bottled water is still under 20% of the overall beverage landscape, (It is) a
very dynamic sector but still a lot of headroom for share growth."
Geographically, sales in Asia made up 41% of total global
bottled water sales in 2016, which was up from 34% in 2011.

An energized category
In the U.S. retail market, sales of energy and sports drinks

LEADING CONVENIENCE

bottled water vendors
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lternatives to carbonated soft drinks, such as bottled
water, energy drinks and ready-to-drink tea, continue to
grow in sales and take up market share in the overall
beverage category. Bottled water may be leading the charge.
"Bottled water effectively reshaped the beverage marketplace,"
said Michael C. Bellas, chairman and chief executive officer of the
Beverage Marketing Corp. "When Perrier first entered the country in the 1970s, few would have predicted the heights to which
bottled water would eventually climb. Where once it would have
been unimaginable to see Americans walking down the street
carrying plastic bottles of water, or driving around with them in
their cars' cup holders, now that's the norm."
Bottled water volume in the United States grew to 12.8 billion
gallons in 2016 from 11.8 billion gallons in 2015, nearly a 9%
increase, according to the Beverage Marketing Corp., New York.
Per capita consumption of bottled water exceeded 39 gallons in
2016, which compared to 38.5 gallons for carbonated soft drinks.
"Around the turn of the century, per capita soft drink consumption regularly exceeded 50 gallons, and Beverage Marketing expects bottled water to reach that level by the middle of the
next decade," the B.M.C. said.
A 2017 success story came in PepsiCo, Inc.'s launch of Lifewtr.
"In just five months of sales since its launch in Q1, Lifewtr has
already reached $70 million in retail sales across measured channels, was the top brand contributing to L.R.B. (liquid refreshment
beverages) retail sales growth in the second quarter and is on
track to generate approximately $200 million in retail sales on
an annualized basis," said Indra K. Nooyi, chairman and c.e.o. of

bottled water brands
% change
from
year ago
3.9%
-1.0%
2.6%
7.4%
21.7%
4.6%
-3.7%
6.8%
31.6%
4.4%
4.9%

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Nestle Pure Life
Dasani
Aquafina
Poland Spring
Glaceau smartwater
Deer Park
Ozarka
Ice Mountain
Fiji
Private label
Total

Dollar sales
$726,064,640
$695,622,080
$660,881,920
$491,234,528
$325,991,584
$259,783,296
$247,100,992
$220,472,768
$194,220,576
$2,218,932,992
$7,840,530,432

% change
from
year ago
1.8%
-0.9%
7.8%
6.0%
4.5%
0%
8.2%
9.0%
21.7%
4.4%
4.9%

Data for 52 weeks ended July 9, 2017
Total U.S. - Multi-outlet with C-Store (Supermarkets, Drugstores and Mass Market Retailers, Gas/C-Stores, Military Commissaries and Select Club & Dollar Retail Chains)
Source: Information Resources, Inc.

34 \ October 2017

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