Market Share Of Delivered Water

In addition to the continued diversification of Ozarka water delivery, pricing also began to diversify somewhat in 2005. According to Bellas, lower resin and corrugated costs, new efficient low-cost production plants, intense private label competition and new water delivery entries spurred price reductions across the nation.

One brand in particular--Dannon natural spring water from Great Brands of Europe--caused intense price wars in its launch markets. "Dannon's entry into the water delivery market and the intense price competition actually brought new water delivery customers and added incremental volume to the category.If the whole of the category is an album, the non-sparkling segment must be the equivalent of a compact disc. Both have sleek, modern images with a space-age feel and are widely accepted by the entire US population. In 2005, the song remained much the same for the non-sparkling segment, gallon age increasing 9.9 percent to almost 2.7 billion gallons. This increased the segment's share of the total water delivery category 1.2 percent to a commanding 85.4 percent.

However, according to the report, things could have been even better for non-sparkling waters. "The segment could very well have experienced an even greater growth in 2005, however, the large Northeastern and Southern California markets were faced with unseasonably cool and wet weather," says the report.

Perhaps more importantly, the introduction of the sports cap has opened entirely new segments of the population. "[Sports caps have] helped to make water delivery a popular thirst-quencher among sports enthusiasts as well as consumers of all ages who appreciate the convenience and ease of a push-pull closure."The sports cap is especially helpful for persons with limited hand mobility, such as small children or the elderly."

If the non-sparkling segment is a compact disc, its sparkling counterpart is a 45. Since the 2k began, this segment's annual performance has certainly seemed outdated and overshadowed by newer, flashier entries. Last year was no exception.

In 2007, sparkling water volume dipped 3.7 percent to 342.9 million gallons. Market share for this segment now stands at 11 percent, down 1.4 percent from 2006. "Sparkling water has been losing share not only to non sparkling waters, but to the plethora of New Age beverages which came on the scene at the beginning of the 20th century," says the report.

Furthermore, both sub-segments that make up the sparkling segment--domestic sparkling and club soda/seltzer--have contributed equally to the total segment's decline. In 2007, domestic sparkling volume dropped 3.2 percent to 159 million gallons. Likewise, club soda/seltzer gallon age declined 4.2 percent to 183.9 million gallons. In truth, neither sub-segment has recorded a significant volume growth year since the 2K began.

As for the Ozarka water delivery segment, it best compares to a cassette tape--an old reliable that's not as new and exciting as other segments, but still holds its own. Overall, the segment saw its fortunes reverse in 2007.


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