Soon to Be Americans’ Top Beverage Choice Bottled Water Profiler 2016 Brought to you by THE MEDIACENTER

Water, Water Everywhere Multiple sources show excellent growth for the bottled water industry during 2014. Beverage World reported a 7.2% increase in volume and a 5.6% increase in revenues, compared to 2013. Beverage Marketing Corporation said volume increased 7.3%. The big news for bottled water, however, is that the International Bottled Water Association expects it to surpass carbonated soft drinks as the #1 packaged beverage by the end of 2016. Industry research firm Canadean says it will be 2019. The Coca-Cola Co. and PepsiCo may not be that concerned, since Coca-Cola’s Dasani was 9th and PepsiCo’s Aquafina was 10th in total 2014 volume among the top 10 US liquid refreshment beverage brands

Bottled Water Battles Soft Drinks Comparison of Bottled Water and Carbonated Soft Drinks Brands, 2013–2014 PR Newswire (Beverage Marketing Corporation), March 2015 *Gallons Coke Pepsi Mountain Dew Dr. Pepper Nestlé Pure Life Poland Spring Dasani Aquafina 4.20 billion 2.09 billion 1.34 billion 1.19 billion 933.4 million 677.1 million 619.3 million 457.3 million 4.10 billion $2.02 billion 1.36 billion 1.17 billion 1.02 billion 716.5 million 663.0 million 491.1 million -2.4% -3.0% +1.5% -1.6% +9.3% +5.8% +7.1% +7.4% 13.9% 6.9% 4.4% 3.9% 3.1% 2.2% 2.0% 1.5% 13.3% 6.6% 3.8% 3.3% 2.3% 2.1% 1.6% Brand 2013 Share 2013 Volume* 2014 Volume* % Change 2014 Share

Still Water Can’t Sit Still According to Beverage World, total 2014 revenues for the convenience/PET still water category increased 3.7% and the jug/bulk still water category increased 5.9%. Following a 4% increase in unit sales and a 5.6% increase in dollars sales for the 52 weeks ending May 17, 2015, the still bottle water segment is forecast to increase 1.8% per year through 2018, according to Packaged Facts. For the 52 weeks ending May 17, 2015, private label still water brands had the largest market share at 20.7%; followed by Dasani, 10.2%; Aquafina, 9.6%; Nestlé Pure Life, 9.3%; and Glacéau Smart Water, 7.0%.

Sparkling Waters Making Every Merchant Smile Beverage World reported that Sparkling ICE enjoyed another outstanding year during 2014, with a 25.8% increase in revenues to $370.9 million. Private label brands were second with a 10.0% increase to $284.7 million in revenues. Beverage Industry’s more recent dollar sales data had Sparkling ICE with an 18.0% increase and a 26.5% market share. All brands in the segment registered an 18.1% increase in dollar sales, and the segment will be the fastest growing through 2018. For the 52 weeks ending May 17, 2015, Sparking ICE had the largest market share of sparkling waters at 26.5%; followed by private label brands, 20.4%; Perrier, 12.3%; LaCroix, 7.5%; and San Pellegrino, 7.5%.

The Convenience of Bottled Water During Q4 2015, bottled water sales at convenience stores increased 11.1%. For all of 2015, volume sales increased 17%. Although currently only 11% of total bottled-water sales occur at convenience stores, sales are forecast to increase 47% through 2019. Despite this growth, a 2015 study found that carbonated soft drinks (CSDs) are still convenience store customers’ first beverage choice when they enter the store and 51% access the cooler directly without considering other choices or brands. With Nestlé Water North America’s share of the US bottled water market at 31.3% for 2014, Pepsi will be introducing sparkling Aquafina flavored waters and Coca-Cola will be aggressively marketing its sparkling Smartwater to increase their market shares.

Advertising Strategies Convenience stores may be able to “divert” customers from the carbonated soft drinks cases with a bottled water display on the route to the cases or distribute a half-price bottled water coupon to consumers who buy a carbonated soft drink to use during their next visit. Offer beverage retailers, supermarkets and mass merchandisers an opportunity to support a charity walk, run or similar activity that the station is sponsoring and promoting by supplying a certain number of cases of bottled water to distribute to event participants. Local or regional private label bottled water manufacturers can target mothers with a “Hydration Is Healthy” campaign, with testimonials from local women who are mothers, explaining why they prefer the private label brand over the national brands.

Social Media Strategies Conduct a contest, asking people to submit photos or videos showing an unusual or interesting way they use bottled water in cooking or sparkling water for adult beverages. Invite everyone to vote for his or her favorite, with an appropriate prize for the winner. Ask a local physician or a number of them to write an article about the importance of hydration and bottled water as a healthy alternative to other beverages. Post the articles online. Alternatively, or in addition, record podcasts interviewing the physicians. Post articles, photos and videos on LinkedIn about the health benefits of busy professionals drinking more water. Offer to become a partner in corporation and businesses’ employee wellness programs, providing discounted cases that can be distributed free to employees.

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