Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Sales data
- Consumer survey data
- Advertising creative
- Abbreviations and terms
- Abbreviations
Executive Summary
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- Tough times for bottled water
- Segment snapshot: Sparkling water holding its own
- Opting for soda, energy drinks, and filtration systems
- Private label gaining on leaders
- SoBe and smartwater succeed in a tough market
- Innovation and Innovators
- Consumption habits by demographic
- The selection process
- Consumers distrust industry
- Some loyalty seen in spite of turn to private label
- Bottled water versus tap water
- More flavors, please
Insights and Opportunities
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- Key points
- A winning recipe: New flavors, new sweeteners, new shapes
- Looking to Japan’s health-oriented innovations
- The sports beverage challenge
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- Figure 1: Interest in sports beverages vs. bottled water, by gender, August 2009
- Bottled water in the face of America’s polluted waterways
- A drink for what ails you
- Don’t forget dad
- Green cause marketing to ease environmental concerns
Inspire Insights
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- Introduction
- Fixing the green problem: Biodegradable Bags in 60 Days
- Bottled Water Backlash
- Transparency and clarity
- Customization
- Implications
Market Size and Forecast
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- Key points
- Sales dry up
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- Figure 2: U.S. FDMx sales and forecast of bottled water, at current prices, 2004-14
- Figure 3: U.S. FDMx sales and forecast of bottled water, at inflation-adjusted prices, 2004-14
- Figure 4: U.S. wholesale sales of bottled water, volume and value, 2004-08
- Walmart sales
Competitive Context
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- Competition from other beverages
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- Figure 5: Number of beverages purchased yesterday, by gender, August 2009
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- Figure 6: Number of beverages purchased yesterday, by age, August 2009
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- Figure 7: Number of beverages purchased yesterday, by HH income, August 2009
- Home carbonation
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- Figure 8: Drinking habits and practices, by household income, August 2009
- Home water filtration
- Private-label onslaught
Segment Performance
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- Key points
- The recession, energy drinks drain convenience segment
- Private label and tap dry sales
- Sparkling still bubbling
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- Figure 9: U.S. FDMx sales and forecast of bottled water, at current prices, by segment, 2004-14
- Figure 10: U.S. FDMx sales of bottled water, by segment, 2008 and 2009
Segment Performance—Convenience/PET
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- Key points
- Tough times and category competition squeezing the segment
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- Figure 11: U.S. FDMx sales and forecast convenience/PET still water, 2004-14
Segment Performance—Jug/bulk
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- Key points
- Challenges from many sides
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- Figure 12: U.S. FDMx sales and forecast of jug/bulk still water, 2004-14
Segment Performance—Sparkling Water
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- Key points
- Bubbling along
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- Figure 13: U.S. FDMx sales and forecast of sparkling/mineral water, 2004-14
Retail Channels
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- Key points
- Sales fall across all channels
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- Figure 14: U.S. FDMx sales of bottled water, by retail channel, 2008 and 2009
Retail Channels—Supermarkets
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- Key points
- Deep discounts and private label drive down sales
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- Figure 15: U.S. FDMX sales of bottled water at supermarkets, 2004-09
Retail Channels—Drug Stores and Other
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- Key points
- Sales of bottled water healthy at drug stores
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- Figure 16: U.S. FDMx sales of bottled water at drug and other FDMx stores, 2004-09
Natural Channel/SPINS
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- Key points
- Falling in the natural channel
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- Figure 17: Natural supermarket sales of bottled water, at current prices, 2007-09*
- Figure 18: Natural supermarket sales of bottled water, at inflation-adjusted prices, 2007-09*
- Implications
- Natural channel sales by segment
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- Figure 19: Natural product supermarket retail sales of bottled water, by segment, 2007 and 2009
- Brand tables
- Brand table: Bottled water
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- Figure 20: Manufacturer brand natural supermarket sales of bottled water*, 2007 and 2009
- Natural channel sales of still water: enhanced vs. regular
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- Figure 21: Natural product supermarket retail sales of still water, by enhanced vs. regular, 2007 and 2009
- Natural channel sales of sparkling water; by flavor
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- Figure 22: Natural product supermarket retail sales of sparkling water, by flavor, 2007 and 2009
Market Drivers
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- Key points
- The recession douses sales and prices
- A flood of negative press
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- Figure 23: Criteria used when purchasing water, August 2009
- The recession/environment/diet one-two-three punch
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- Figure 24: Drinking habits and practices, August 2009
- The affluent choosing alternatives
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- Figure 25: Drinking habits and practices, by household income, August 2009
- BPA still scares
Leading Companies
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- Key points
- The big three lose ground
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- Figure 26: FDMx sales of leading bottled water companies, 2008 and 2009
Selected Brand Analysis—Convenience/PET
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- Key points
- Compelling benefits still draw
- But most brands stumble
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- Figure 27: Selected FDMx manufacturer and brand sales of convenience/PET still water, 2008 and 2009
- Brand usage data
- Only private label gaining in usage
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- Figure 28: Incidence of drinking selected brands of still bottled water, 2006-09
- Younger respondents show increased use of Aquafina, Dasani, and Nestlé
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- Figure 29: Incidence of drinking selected brands of still bottled water, by age, February 2008-March 2009
Selected Brand Analysis—Jug/bulk
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- Key points
- Pristine sells
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- Figure 30: Selected FDMx manufacturer and brand sales of jug/bulk still water, 2008 and 2009
Selected Brand Analysis—Sparkling water
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- Key points
- An affordable luxury
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- Figure 31: Selected FDMx brand sales of sparkling/mineral in the U.S., 2008 and 2009
- Brand usage: Aquafina far in the lead, but number two slot up for grabs
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- Figure 32: Top brands of sparkling water purchased, by age, August 2009
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- Figure 33: Top brands of sparkling water purchased, by HH income, August 2009
Brand Qualities
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- Glacéau smartwater
- SoBe Lifewater
Innovation and Innovators
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- Innovation drives demand
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- Figure 34: Number of new bottled water products introduced, by year, 2006-09
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- Figure 35: Growth of U.S. bottled water new product launches, 2006-09
- Figure 36: Top claims in U.S. bottled water new product launches, 2006-09
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- Figure 37: Top manufacturers, based on number of new product launches of U.S. bottled waters, 2006-09
- Innovative products
- Flavored bottled water
- Enhanced bottled water
- Environmentally friendly products
Advertising and Promotion
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- Introduction
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- Figure 38: Adspend by category leaders, 2007 and 2008
- Noteworthy initiatives
- Online initiatives
- Noteworthy partnerships
- Website activity
- Ice Mountain (Nestlé)
- Evian
- SoBe Lifewater
- TV commercials
- Glacéau goes after dads
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- Figure 39: Glacéau vitaminwater Revive television ad, 2009
- Crystal Geyser: We aren’t selling tap
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- Figure 40: Crystal Geyser television ad, 2009
- Nestlé selling health to moms
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- Figure 41: Nestlé Pure Life television ad, 2009
- SoBe’s lizards chase the young and hip
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- Figure 42: SoBe television ad, 2009
- Perrier keeps you cool
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- Figure 43: Perrier television ad, 2009
Consumption
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- Flavored water has room for growth
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- Figure 44: Beverage usage, by gender, February 2008-March 2009
- Increased usage in women dependent on increased penetration
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- Figure 45: Weekly consumption of still and sparkling bottled water, by gender, February 2008-March 2009
- Ages 12-64 show high levels of consumption
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- Figure 46: Weekly consumption of still and sparkling water, by age, February 2008-March 2009
Trust, Taste and Loyalty
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- Trust: Wariness towards manufacturers’ claims
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- Figure 47: Trust in bottled water claims, August 2009
- Taste: Women more likely to taste a difference, but majority still do not
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- Figure 48: Perception of taste/quality differences between water brands, by gender, August 2009
- Loyalty
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- Figure 49: Degree of brand loyalty with bottled water, by age, August 2009
- Children in the house and brand-loyal
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- Figure 50: Degree of brand loyalty with bottled water, by presence of children in HH, August 2009
The Selection Process
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- Price and taste in the lead
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- Figure 51: Criteria used when purchasing unflavored, unsweetened water, by gender, August 2009
- Shape of bottle can shape brand choice in 18-34s
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- Figure 52: Criteria used when purchasing unflavored, unsweetened water, by age, August 2009
- Parents buying for flavor, bottle shape, and convenience
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- Figure 53: Criteria used when purchasing unflavored, unsweetened water, by presence of children in HH, August 2009
Bottled vs. Tapped
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- Comparisons with tap not entirely favorable
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- Figure 54: Tap water vs. bottled water, opinions on health and taste, August 2009
- Favorable opinions decline with age
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- Figure 55: Tap water vs. bottled water, opinions on health and taste, by age, August 2009
- Positive attitudes seen in households with children
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- Figure 56: Tap water vs. bottled water, opinions on health and taste, by presence and number of children in HH, August 2009
All-day Hydration vs. Workout Replenishment
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- Hydration for the young (and young at heart)
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- Figure 57: Habits concerning hydration, by age, August 2009
- Hydration for women; exercise for men
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- Figure 58: Habits concerning hydration, by gender, August 2009
Flavoring, Sweetening and Carbonation
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- Key points
- vitaminwater10 in line with consumer desire
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- Figure 59: Drink preferences, attitudes towards flavoring and carbonation, August 2009
- Tackling sports beverages
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- Figure 60: Drink preferences, attitudes towards flavoring and carbonation, by gender, August 2009
- Under-45s most keen on flavor
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- Figure 61: Drink preferences, attitudes towards flavoring and carbonation, by age, August 2009
- Parents use coupons, like new products, and want less sweet options
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- Figure 62: Drink preferences, attitudes towards flavoring and carbonation, by presence and number of children in HH, August 2009
Impact of Race/Hispanic Origin
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- Blacks consume all types of bottled water
- Fighting obesity
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- Figure 63: Number of beverages purchased yesterday, by race/Hispanic origin, August 2009
- Dasani, Deer Park, Dannon more popular with blacks
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- Figure 64: Incidence of drinking selected brands of still bottled water, by race/Hispanic origin, February 2008-March 2009
Cluster Analysis
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- Flavorers
- Straights
- Opportunity
- Savers
- Cluster characteristics
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- Figure 65: Bottled water clusters, August 2009
- Figure 66: Number of beverages purchased yesterday, by bottled water clusters, August 2009
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- Figure 67: Water vs. bottled water, opinions on health and taste, by bottled water clusters, August 2009
- Figure 68: Brand loyalty, by bottled water clusters, August 2009
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- Figure 69: Product selection, by bottled water clusters, August 2009
- Figure 70: Drink preferences, attitudes towards flavoring and carbonation, by bottled water clusters, August 2009
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- Figure 71: Reasons to drink or avoid drinking bottled water, by bottled water clusters, August 2009
- Cluster demographics
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- Figure 72: Bottled water clusters, by gender, August 2009
- Figure 73: Bottled water clusters, by age, August 2009
- Figure 74: Bottled water clusters, by race/Hispanic origin, August 2009
- Cluster methodology
Custom Consumer Groups
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- Women aged 18-54 drinking a wide variety of beverages
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- Figure 75: Beverage usage, by gender and age, February 2008-March 2009
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- Figure 76: Weekly consumption of still and sparkling bottled water, by gender and age, February 2008-March 2009
- Dads are brand-loyal
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- Figure 77: Degree of brand loyalty with bottled water, by gender and presence of children under 18 in HH, August 2009
- Getting Dad off Gatorade/Powerade
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- Figure 78: Drink preferences, sports vs. flavored or unflavored water, by gender and presence of children in HH, August 2009
IRI/Builders—Key Household Purchase Measures
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- Overview
- Convenience/PET still water
- Brand map
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- Figure 79: Brand map, selected brands of convenience/PET still water, buying rate by household penetration, 2008*
- Brand leader characteristics
- Key purchase measures
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- Figure 80: Key purchase measures for top brands of convenience/PET still water, by household penetration, 2008*
- Jug/bulk still water
- Brand map
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- Figure 81: Brand map, selected brands of jug/bulk still water, buying rate by household penetration, 2008*
- Brand leader characteristics
- Key purchase measures
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- Figure 82: Key purchase measures for top brands of jug/bulk still water, by household penetration, 2008*
- Sparkling/mineral water
- Brand map
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- Figure 83: Brand map, selected brands of sparkling/mineral water, buying rate by household penetration, 2008*
- Brand leader characteristics
- Key purchase measures
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- Figure 84: Key purchase measures for top brands of sparkling/mineral water, by household penetration, 2008*
Appendix: Other Useful Consumer Tables
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- Widespread usage among under-65s
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- Figure 85: Beverage usage, by age, February 2008-March 2009
- Affluent consuming more still bottled water
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- Figure 86: Weekly consumption of still and sparkling bottled water, by HH income, February 2008-March 2009
- Blacks drink more bottled water
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- Figure 87: Weekly consumption of still and sparkling bottled water, by race/Hispanic origin, February 2008-March 2009
- 18-24s not believing in health risks
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- Figure 88: Perception of health risk about drinking bottled/canned beverages, by age, August 2009
- Other popular brands
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- Figure 89: Other brands of sparkling water purchased, by age, August 2009
- 18-34s refilling, over-35s recycling
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- Figure 90: Reuse and recycling of water bottles, by age, August 2009
- No children and recycling
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- Figure 91: Reuse and recycling of water bottles, by presence of children in HH, August 2009
- Households with children less skeptical
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- Figure 92: Trust in bottled water claims, by presence of children in HH, August 2009
Appendix: Trade Associations
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