Southern Europe fuels growth in West European water cooler market

The volume of water sold through bottled water coolers in West Europe rose by 5% in 2005 to 1,392 million litres, according to the 2006 West Europe Water Coolers report from specialist drinks consultancy Zenith International. This represents a return to solid growth, following a poor year in 2004, and was fuelled mainly by significant gains in southern Europe.

Leading the way was Spain, accounting for over one third of the growth in 2005 sales. Portugal performed strongly, with 11% of the increase. Greece, France and Italy were also responsible for around 10% each. Progress in the more mature northern markets was limited, with the large United Kingdom market registering stable volumes. Finland, Norway and Sweden all experienced declines.

"Many southern European countries have now overtaken their more mature northern counterparts, thanks to their warmer climates and predisposition to drinking bottled water," commented Zenith Research Director Gary Roethenbaugh. "Spain, Italy, Greece and Portugal are all becoming, or indeed already are, key markets."

In terms of numbers of water coolers, 2005 saw a 2% advance across West Europe to 1,804,000 units, following a 6% uplift in 2004 and high double figure gains in previous years. Spain, Greece, Portugal and Italy were responsible for most of last year's increase, more than making up for losses in other countries.

"As in 2004, West Europe's market leading distributors continued to clear out dormant and unprofitable accounts in 2005," added Gary Roethenbaugh. "In 2006, Zenith expects growth to be reinvigorated, based on leaner portfolios and the record breaking summer temperatures so far recorded around the region."

Nestlé Waters has maintained its corporate lead, through sales under the Powwow and Aquarel brands. Danone Springs of Eden retains second place, with Culligan again third. Elis and SEMAE SLU – following its 2005 acquisition of Portugal's Fonte Viva – complete the top five. At 31% of 2005 volume, the UK remains the largest West European cooler market by a substantial margin. France holds on to its second place on 14%, with Spain and Italy following at 11% and 8% respectively.

Over the next five years, Zenith forecasts growth of more than 50% in Spain, Greece, Spain, Portugal, Austria and Switzerland, with good results also projected for Germany and Italy. By 2010, the total West European market is expected to advance a further 40% to 2.6 million units and a volume of 2,560 million litres.

The 2006 Zenith report on West Europe Water Coolers contains 300 pages including 125 company profiles, full company rankings, 23 market overview tables and a detailed market commentary. Contact Zenith International on tel +44 (0)1225 327900, fax +44 (0)1225 327901 or e-mail info@zenithinternational.com.

For further information, please contact:

Stuart Foxon or Gary Roethenbaugh, Zenith International Ltd
7 Kingsmead Square w Bath BA1 2AB w United Kingdom
t +44 (0)1225 327900 w f +44 (0)1225 327901
zenithinternational.com