UK water coolers tap 19% more volume in 2003
UK consumers filled 19% more cups from water coolers during 2003, stimulated by growing awareness of good hydration and by hot summer weather, according to leading drinks consultancy Zenith International. Volumes rose 75 million litres to 460 million litres, representing 22% of total bottled water consumption and contributing 24% of overall UK bottled water market growth for the year. In terms of coolers installed, the rate of increase was a far slower 7%, taking the number past half a million to a total of 530,000 units.
After several years of intense acquisition activity, the UK water cooler industry has now emerged with a much clearer structure. Leaders Nestlé and Danone have largely reconfigured their recently acquired portfolios, resulting in the creation of Nestlé Waters Powwow Ltd and Eden Springs UK. Together, these two players now account for 52% of the entire market. Well Well Well, Culligan and newly formed Angel Springs occupy the next three places with a combined 18% volume share.
Nevertheless, restructuring on such a scale has not been without problems. "The new market leaders have suffered a degree of indigestion", commented Zenith Research Director Gary Roethenbaugh. "New unit placements lagged behind record summer volumes partly because distributors had to focus all their resources on meeting the heightened demand for water at the expense of finding new business. Another key factor was increased competition from mains fed point of use coolers, resulting in a marked rise in cancellation rates, particularly amongst larger accounts," he added. Point of use coolers are now surfacing as a serious alternative to bottled water coolers, with more and more distributors adding them to their ranges, if only as a defensive measure.
Despite the slowdown in unit growth for 2003, the cooler industry is expected to regain some of its previous momentum once the top two companies have completed their rebranding and focus is renewed on organic expansion. Zenith anticipates the market will reach 850,000 units by 2008, with consumption approaching 700 million litres.
The 2004 Zenith Report on UK Water Coolers contains 126 pages including 36 company profiles, 18 market tables and a detailed commentary with charts. Contact Zenith International on tel +44 (0)1225 327900, fax +44 (0)1225 327901 or e-mail info@zenithinternational.com
For further information, please contact:
Gary Roethenbaugh or Anya Bourke, Zenith International Ltd
7 Kingsmead Square, Bath BA1 2AB, United Kingdom
t +44 (0)1225 327900 f +44 (0)1225 327901
zenithinternational.com
After several years of intense acquisition activity, the UK water cooler industry has now emerged with a much clearer structure. Leaders Nestlé and Danone have largely reconfigured their recently acquired portfolios, resulting in the creation of Nestlé Waters Powwow Ltd and Eden Springs UK. Together, these two players now account for 52% of the entire market. Well Well Well, Culligan and newly formed Angel Springs occupy the next three places with a combined 18% volume share.
Nevertheless, restructuring on such a scale has not been without problems. "The new market leaders have suffered a degree of indigestion", commented Zenith Research Director Gary Roethenbaugh. "New unit placements lagged behind record summer volumes partly because distributors had to focus all their resources on meeting the heightened demand for water at the expense of finding new business. Another key factor was increased competition from mains fed point of use coolers, resulting in a marked rise in cancellation rates, particularly amongst larger accounts," he added. Point of use coolers are now surfacing as a serious alternative to bottled water coolers, with more and more distributors adding them to their ranges, if only as a defensive measure.
Despite the slowdown in unit growth for 2003, the cooler industry is expected to regain some of its previous momentum once the top two companies have completed their rebranding and focus is renewed on organic expansion. Zenith anticipates the market will reach 850,000 units by 2008, with consumption approaching 700 million litres.
The 2004 Zenith Report on UK Water Coolers contains 126 pages including 36 company profiles, 18 market tables and a detailed commentary with charts. Contact Zenith International on tel +44 (0)1225 327900, fax +44 (0)1225 327901 or e-mail info@zenithinternational.com
For further information, please contact:
Gary Roethenbaugh or Anya Bourke, Zenith International Ltd
7 Kingsmead Square, Bath BA1 2AB, United Kingdom
t +44 (0)1225 327900 f +44 (0)1225 327901
zenithinternational.com