7 out of 10 UK cooler distributors continue growth in 2007
In the 21st year since water coolers first became established in the United Kingdom, almost 70% of industry members achieved continuing growth during 2007, despite a challenging business environment accentuated by poor summer weather. The total number of coolers installed rose 3.5% to 718,000 at the end of the year. A 3% decline for bottled coolers was more than offset by a 21% uplift for point of use (POU) coolers.
"Many cooler companies are growing much faster than the overall market," commented Zenith Market Intelligence Director Gary Roethenbaugh. "Those who are 'getting it right' include numerous smaller players. Despite top-level numbers appearing less impressive than previous years, there is substantial scope for further profitable expansion."
Three of the top five companies experienced declines, while the other two grew in double figures, after adding in acquisitions. The top 20 firms achieved a compound annual growth rate of 17% between 2001 and 2004, but this fell to 3% from 2004 to 2007.
"The missing summer, some environmental criticism of bottled water in the media and financial belt-tightening were added challenges for 2007," Gary Roethenbaugh continued. "It is evident that the balance of UK water cooler dynamics is shifting towards POU. More operators developed mixed portfolios in 2007.
"It is widely believed that important issues for the future remain customer service levels and the promotion of hydration benefits. Environmental credentials and rising overheads are also likely to become more prominent on the cooler industry agenda," Gary Roethenbaugh concluded.
UK Water Coolers 2008 contains over 130 pages of market commentary, charts and tables, together with company profiles. Contact Zenith International on tel +44 (0)1225 327900, fax +44 (0)1225 327901 or e-mail firstname.lastname@example.org
For further information, please contact:
Gary Roethenbaugh or Lauren Brookes, Zenith International Ltd
7 Kingsmead Square w Bath BA1 2AB w United Kingdom
t +44 (0)1225 327900 w f +44 (0)1225 327901