PETpla.net Insider 09 / 2010

REGIONAL MARKET REPORTS 14 PET planet insider Vol. 11 No. 09/10 www.petpla.net Beverage Industries – Facts and Figures In addition to the multi-national brands there are inde- pendent brands, integrated retailers and co-packers for retailers or private labels. Bottled water in France Bottled water in France includes still bottled, carbon- ated bottled, flavoured bottled water and functional bottled water. 7,200 million litres of water were bottled in 7.1 billion units in 2009, of which 86% were in PET. Sales volume declined from 9,000 million litres in 2003 to 7,200 million litres in 2009 (a decline of 20%). The major portion of the decline was in still water. A further decline of 2.2% per annum is forecast for the next few years. Company shares of the bottled water market by volume in 2008: Alma Roxane 22%  Danone Group 20.4%  Nestlé Waters France SA 20.1%  Others each achieved less than a 2.5% share  Brand shares of the bottled water market by volume in 2008: Cristaline Neptune 17%  Evian Danone 8.2%  Volvic Danone 6.5%  Contrex Nestlé 5.8%  Vittel Nestlé 4.7%  Others each held less than 4%, including such well- known products as Perrier belonging to Nestlé and Badoit to Danone. Typical mineral water PET package 0.5l 11 and 17g (29/25 and 30/25)  1.0l 27g (30/25)  1.5l 23,3 to 33g (29/25 and 30/25)  2.0l 33 to 40g (29/25 and 30/25)  The decline of the French water market is the result of several factors. Recently the financial crisis was mentioned as being one important reason for the fall since 2008; poor summer weather was another. But there are also specifi- cally French reasons, e.g. ecological concern as well as growing competition from tap water. According to Euromonitor International “Growing consideration for the environment and sus- tainable development, as well as rising confidence in the quality of tap water, resulted in decreasing consumption of industrial bottled water. Manufacturers were often attacked and discredited by aggressive communication campaigns by major water pressure groups. In response, manufactur- ers tried to demonstrate that their activities do respect the environment through growing usage of recycled material in their bottles, the preserved quality of the water source, transportation of goods by train as well as the beginning of shared transportation between companies to optimise truck loads.” Sources: Euromonitor International, PETplanet (information shared on tour visiting various companies) Non-alcoholic soft drinks such as water, CSDs and juices (including nectars, still drinks, isotonics and teas) are commodities of special relevance to the PET business. Total consumption of non-alcoholic beverages in France in 2009: 11.1 billion litres in 22.5 billion packaging units (bottles), of which 8.4 billion (37%) were in PET. Per capita con- sumption levels at 172 litre lie far behind Spain, Italy and Germany. Bottle sizes of non-alcoholic beverages in France Format breakdown: 8% in PET bottles smaller than 0.5 litres  25% in 0.5 litre PET bottles  67% in PET bottles larger than 0.5 litres  The market for non-alcoholic beverages in total has been decreasing over the years since 2003 and is expected to continue to decrease. Moderate growth of CSDs and juices will not be able to compensate for the decline in water, which is approximately twice the volume of CSDs and juices consumed per annum. Leading companies in terms of soft beverage volume produced in France are multi-national companies with multi-national brands: Alma Group (Roxane with Cristaline) approx. 13% share  Danone Group (Evian, Volvic Hepar,…)approx. 13% share  Nestlé SA (Vittel, Perrier Contrex, …) approx. 12% share  Coca Cola Entreprise approx. 11% share  The strength of these leading companies is demon- strated by the fact that Pepsi (with no filling plant in France) is in number 5 position and yet has a share of less than 2%. In terms of brands/volumes: Cristalline from Alma Roxane in the lead  followed by Coca-Cola  thereafter Evian and Volvic from Danone  Contrex and Vittel from Nestlé 