PETpla.net Insider 04 / 2018

9 NEWS PET planet Insider Vol. 19 No. 04/18 www.petpla.net Where next for bottled water? The report ‘Where Next for Bottled Water?’, published by the Beverage Research Company Drink Sector presents information on the latest research and events in the global beverage industry and outlines the key consumer trends and innovation opportunities within the bottled water category. According to their research, health & wellness is consid- ered to be the most influential factor for consumers when purchasing soft drinks. Around 60% of consumers globally say that how the product impacts their health and wellbeing always (33%), or often (27%), influences their purchases when choosing a non-alcoholic bever- age. Bottled water has a high inherent health appeal, given that water is crucial to staying hydrated and supporting the function of every bodily system, including the brain, heart and muscles. The study also finds that consumers are looking to remove high-sugar bev- erages, such as carbonates, from their diets and replace them with low-sugar alternatives which they perceive to be healthier, such as bottled water. Also, consumers are more willing to experiment with conventional beverages, such as coffee, tea and bottled water, than they are with functional beverages such as energy or sports drinks. The report identifies five key innova- tion opportunities within the packaged water space:  Functional waters: A proactive approach to health is steering consum- ers towards enhanced water products that address specific health needs and offer more functional benefits.  Outside the bottle: Plastic water bot- tles are a major contributor to plastic waste, so more sustainable packaging alternatives are needed to combat the growing plastic waste issue.  Hybrid waters: Hybrid products such as energy waters, sports waters and juice-infused waters represent a major opportunity in the soft drink market as they are seen as healthier than con- ventional soft drink beverages.  Alternative waters: The plant water trend has expanded to include maple, cactus, birch, aloe vera and even honey water, driven by health-con- scious consumers seeking beverages that provide natural hydration and other functional health benefits.  Premium waters: Premium waters hold potential in the market, leveraging high-quality claims and sustainability credentials to differentiate themselves in the highly competitive bottled water market. Companies mentioned in this report: Reliant Recovery, Kirin, Suja, Giant, Box Water, Just Water, Memobottle, CanO Water, DASH Water, Hint Water, Gatorade, Go Water, Bee’s water, Water Works, Green Beverages, Alnatura, Naeve, VOSS, O Pure Water, Life Water, Aquiem, Ecomo, Ooho! www.drinksector.com Indorama Ventures to acquire PET business in Brazil Indorama Ventures Public Company Limited (IVL), a global chemical producer, has announced that it has entered into an agreement to acquire M&G Polimeros Brazil S.A. in Ipojuca Brazil. The plant is the largest PET facility in Brazil, with capac- ity of 550,000t/a. This plant is strategically located and benefits from virtual integration with a manufacturer of Purified Tere- phthalic Acid (PTA), a key feedstock to PET. The transaction is expected to be completed in second quarter 2018, subject to regulatory approvals. This acquisition in Brazil is in line with the company’s strategy to further extend its market position, and expand its global footprint in key markets with high growth potential. This strategic position is intended to allow Indorama Ventures to deliver products to key customers in Brazil and elsewhere in a cost-effective and efficient manner. Indorama Ventures is well positioned to service its current global client base and M&G’s existing customers once this acquisition is complete and the plant is fully operational. The company expects imme- diate incremental revenues and cost synergies, driven by a substantial volume increase and potential value add through backward integration. SouthAmerica is an important emerging market with domestic demand for PET growing at around 5%. Today’s per capita con- sumption of PET is comparatively low at 2.8kg and has potential for growth. Brazil also has strong underlying fundamentals, sup- ported by government policies to stimulate economic growth and strengthen the domestic market. Indorama Ventures continues to be on a transformational jour- ney aimed at accretive growth and sustainable value creation, while maintaining financial discipline. In its latest financial disclosure of 20 February 2018, the company announced its record EBITDA of US$ 1 billion for 2017 which was a growth of 30% on a year-on- year basis. Significant improvement in the PET and feedstocks business environment also enabled its net profit to grow by 68% on a year-on-year basis. This acquisition will significantly advance IVL’s strategy in its Necessities business, where the company aims to deepen its global footprint and build scale in key markets. HSBC is serving as financial advisor, KPMG is serving as finance and tax due diligence advisors, and Mattos Filho & Lowenstein Sandler is serving as legal advisors. www.indoramaventures.com