Nestlé on bottled water business: ‘We are playing in the right category with the right mix of brands’
Nestlé Waters reported sales of 1.8bn CHF ($1.9bn), with 5.3% organic growth and 5.8% real internal growth for the period January - March 2016.
Nestlé Waters has a portfolio of 52 brands, including Nestlé Pure Life, its flagship brand for healthy hydration sold across 32 countries, and premium international brands Perrier and San Pellegrino.
It also has a portfolio of local brands, such as Poland Spring in the United States, Buxton in the United Kingdom, Erikli in Turkey, and Sta.María in Mexico.
Products are sold across most distribution channels, including traditional retail, modern trade, restaurants and offices.
Premium brands into double-digit growth
François-Xavier Roger, CFO, Nestle, said waters continue to grow well across its portfolio in the latest quarter.
“Our growth in waters was, as it was the case last year, essentially driven by RIG in all geographies, and it was largely driven as well by emerging markets where we experienced double-digit growth,” he said, speaking in the earnings call for the results.
“Last year, we had premium brands Perrier and S.Pellegrino growing high-single digits. We have accelerated that further. We are now in double-digit growth for these two premium brands.
Nestle water brands
Perrier (natural sparkling mineral water)
Pure Life (its biggest brand which is sold across 32 countries)
San Pellegrino (sparking mineral water)
Vittel (natural mineral water)
Acqua Panna (natural spring water)
Contrex (sold across 35 countries)
Buxton (UK natural mineral water)
Baraka (Egypt), Cachantun (Chile)
Montclair (Canada)
Erikli (Turkey)
“Nestlé Pure Life did well and grew double-digit in emerging markets. And we are benefiting as well from the strong momentum with some local brands.
"And I would mention Ozarka in the United States, Buxton in the United Kingdom, and La Vie in Vietnam.”
Asked about the performance of water in the US, Roger pointed to double-digit growth of international brands in the country and strong momentum for other brands.
“The [water] category itself is very dynamic,” he said.
“As you know, water, by volume, exceeded carbonated soft drinks in the US last year.
"So, obviously we are playing in the right category with the right mix of international brands.
“Sparkling also happens to be the fastest-growing segment of the category itself.
"So, once again, we are well positioned there with the combination of our local brands.”
