BOTTLED WATER BACK TO GROWTH IN BRITAIN

Earlier than predicted, the British bottled water market has returned to growth this year. Volumes are up by an estimated 5% for the nine months to September and growth for the full year should reach 3% or more.

These figures were presented by my colleague Charles Phillips, Zenith’s Chief Operating Officer, at the annual UK bottled water industry conference yesterday.

During the conference, I asked for the views of three leading industry Managing Directors and here they are.

Highland Spring Ltd Chief Executive Officer Les Montgomery:

“Following the challenges of the last two years including the weather, economy and questions on the environmental credentials of bottled water, we are pleased to see the market, once again, return to growth.

“We are highly confident about the future of the market and particularly our business. Our performance has been extremely robust and again ahead of the market. We are on track to achieve our highest ever brand share by the year end.”

Nestlé Waters UK Ltd Managing Director Paolo Sangiorgi:

“We have the confidence of maintaining sustainable growth and providing one of the healthiest choices on the shelf. We see a positive future, with a recovering market and stronger brands which deliver real value to the consumer despite the tough economic environment.”

Danone Waters (UK & Ireland) Ltd Managing Director Nick Krzyzaniak:

“After two very challenging years, mainly driven by bad weather and a weaker economy, the UK bottled water market has returned to growth.

“This is great news. It means our message that water is the healthiest and most natural way to hydrate and the most environmentally responsible beverage on the retailer’s shelf is reaching our consumers. Communicating the health and social responsibility benefits of our products is an essential part of our business model and will provide the platform for future growth of our category as more British consumers find reason to believe in bottled water.”

My own take on it is that the economic downturn and better weather probably cancelled each other out, leaving bottled water to resume its natural 5% growth momentum.

Most people feel better when well hydrated and almost all of us would benefit by drinking an extra glass. Those who stop to look at the facts will find that bottled water is friendlier to the environment than all other packaged beverages and that it actually competes against them rather than tap water.

Shouldn’t you oughta drink more water ?

DON’T, BUY IT

Two striking new products I’ve just read about in the latest issue of Faire Savoir Faire from France.

Don’t ! is a new praline spread from Urban Food. 35% nuts. Do.

Dark Dog has now licensed a range of male toiletries to accompany the energy drink. Biting irony ?

TWO CHEERS FOR UK RECYCLING

Some good news from RECOUP’s latest report on UK plastic recycling. Rates have trebled in three years. But this does not quite merit three cheers.

The plastic bottle recycling rate reached 39% in 2008, compared with 13% in 2005, 20% in 2006 and 35% in 2007. That represents 4,753 million plastic bottles being recovered, an increase of 752 million or 19% on 2007.

The European average for PET in 2007, however, was 43%, so we should be doing better. Moreover, it seems that 7.2 million out of 25.3 million UK households still do not have kerbside collection schemes. Yes, 154 out of 475 local authorities have no provision and are therefore failing us as well as our environment.

Two cheers, then, for the two thirds that do.

ECONOMIC UPTICK ?

Well, not quite. But it seems the bottom may have been reached. Unless you believe in a W shaped downturn instead of a V shaped one.

Back in June I reproduced a chart from The Economist magazine which showed global economic growth at a constant 4% in 2005, 2006 and 2007. Then there was a rapid slide in 2008 to a 2% drop. It’s still bad, but the second quarter fall in 2009 was not quite as poor as the first quarter.

Here’s the evidence.

A half empty glass being made to look half full, perhaps ?

BARACK BACKS DAIRY

At the G20 Summit last month in Pittsburgh, what do you think Barack Obama said to the other Heads of Government at the official photocall ?

Yes, it was captured loud and clear on all the networks. He asked them all to: ‘say cheese’.

COULD BE COOLER

Many industries have the strangest of terms. In beverages, think semi-skimmed milk, FABs (flavoured alcoholic beverages) or point of use water coolers.

Bill Bruce wrote about cooler nomenclature on foodbev.com last week. He asked if there are more user friendly alternatives. My answer is a simple yes and here is what I would propose.

The current expressions for those machines that dispense chilled water from taps under large bottles are : home and office delivery, HOD, 5 gallon coolers, bulk water dispensers and bottled water coolers. Why not just ‘bottled coolers’ ?

And for similar machines that filter mains water instead of using bottles, we have : plumbed in coolers, mains fed coolers, point of use water coolers, point of use drinking water and no doubt more besides. Why not just ‘filter coolers’ ?

Wouldn’t simplest be coolest ?

SHOT DRINKS ALL THE RAGE

Shot drinks are so clever because they deliver added benefits and charge more, while containing less volume and calories. Many also require a daily consumption regime.

The most common are probiotic and cholesterol lowering dairy drinks, but energy shots are now growing faster.

Smaller segments include juice shots and vegetable shots. More recently there have been a series of new relaxation and other health shots. Two stories about these caught my attention this week.

One was in Zenith’s free daily online news service, which reported without irony on an ‘aggressive’ sampling campaign for a new ‘relaxation’ drink, Mini Chill in New York.

The other was on BevNET.com, which gave details of the new HealthShot range being launched on Long Island, including a Men’s Edge variant to ward off prostate cancer.

If there’s any chance of a new beverage niche, you can be sure someone will try to open it up.

BREAKTHROUGH TECHNOLOGY FOR WATER

Every week someone comes along with new technology to change the world. Well here are two ideas that just may.

The first is an Australian company that believes it has created the world’s greenest bottled water brand. Its bottling plant is entirely powered by hydroelectric and wind energy; the bottles are 100% biodegradable. Many others are also working along similar lines. This one is called Good Vibes For You (GVFY). Let’s see how it progresses.

The other is a remarkable new way of purifying water by solar disinfection. I quote from greenprophet.com …

“The method is almost cost-free and is now being used in many developing countries to make well and tap water safe for human consumption.

“The SODIS purification process involves filling a number of 1.5 or 2 litre plastic bottles about three quarters full of clear water (if the available water is cloudy, it should first be filtered through a layer of sand). The bottle is then shaken vigorously to mix sufficient air with the water, and then filled to the top with more water and closed. The filled bottles are then placed on a metal or concrete surface (like the roof of a building or house) and left in the sun for at least 6 hours, or until hot to the touch. The bottles should then be taken inside and allowed to cool before being opened for use.

“The SODIS water purification process utilises the sun’s ultraviolet rays to purify the water, killing harmful bacterial growth and other disease causing organisms. To enable the water to heat faster, paint one side of the bottle black and then place the bottle on a roof or other surface with the black side down. This acts mike a miniature sun boiler, and works on a similar principle as solar water heater collecting plates.”