Bottled Water - US - May 2006

TABLE OF CONTENTS

• Introduction and Abbreviations
• Introduction
• Other relevant reports
• Definition
• Abbreviations and terms
• Abbreviations
• Terms
• Executive Summary
• Health and diet drive growth from soda to bottled water
• Convenience segment grows the market
• Flavored enhanced waters create new premium category
• Supermarkets see higher volumes at lower profit
• Females, younger consumers, and high earners drink more
• National brands weaker as differentiation fizzles
• Innovations in design to prevent commoditization
• Continued growth ahead
• Market Drivers
• Americans trying to eat and drink healthier
  • Figure 1: Attitudes toward healthy eating,2003 and 2005
• Obesity
  • Figure 2: Prevalence of overweight andobesity among adults aged 20 years and over, 1976-2002
• Diabetes
• Impact on beverages
  • Figure 3: Per capita consumption ofcarbonated beverages, bottled water and sports drinks, 2000-04
• Increased choices in flavored and enhanced waters encouraging trial
  • Figure 4: Motivations driving trial of anew drink, March 2006
  • Figure 5: Compound annual growth rates ofFDM sales for selected bottled water brands, 2000-05
• Demographics
• AgeFigure 6: U.S. population, by age, 2000-10
• Race/ethnicity
  • Figure 7: U.S. population, by race andHispanic origin, 2000-10
• Water quality and associated health concerns
• Water quality by city
  • Figure 8: Water quality, by city, 2001
• Source water protection
  • Figure 9: Source water protection, bycity, 2001
• Market Size and Trends
• Market size
  • Figure 10: U.S. retail sales of bottledwater, at current and constant prices, 2000-05
  • Figure 11: Graph: U.S. retail sales ofbottled water, at current and constant prices*, 2000-05
  • Figure 12: Consumption of bottled water inthe U.S., gallons and per capita, 2000-05
• Market trends
  • Figure 13: Positioning claims of newproduct launches in the U.S. bottled water market, 2001-06
• Market Segmentation
  • Figure 14: U.S. sales of bottled water, byproduct type, 2003 and 2005
  • Figure 15: Graph: U.S. sales of bottledwater, by product type, 2005
  • Figure 16: Indexed U.S. sales of bottledwater, by segment, 2000-05
• Convenience/PET
  • Figure 17: Sales of convenience/PETbottled water, at current and constant prices, 2000-05
• Jug/bulk
  • Figure 18: Sales of jug/bulk bottledwater, at current and constant prices, 2000-05
• Sparkling/mineral
  • Figure 19: Sales of sparkling/mineralbottled water, at current and constant prices, 2000-05
• Supply Structure
• Foreign trade
  • Figure 20: Imports of water for U.S.consumption, by source country/region, 2003 and 2005
  • Figure 21: Exports of water, bydestination country/region, 2003 and 2005
• Company and brand sales
• FDM sales by manufacturer and brand
  • Figure 22: FDM* sales of majormanufacturers in the U.S. bottled water market, 2003 and 2005
  • Figure 23: Graph: FDM* sales of majormanufacturers in the U.S. bottled water market, 2003 and 2005
• Convenience/PET
  • Figure 24: FDM* sales of selected brandsof convenience/PET bottled water in the U.S., 2003 and 2005
• Jug/bulk
  • Figure 25: FDM* sales of selected brandsof jug/bulk bottled water in the U.S., 2003 and 2005
• Sparkling/mineral
  • Figure 26: FDM* sales of selected brandsof sparkling bottled water in the U.S., 2003 and 2005
• Private label
  • Figure 27: FDM* sales of private labelbottled water, at current and constant prices, 2000-05
  • Figure 28: FDM* sales of private labelbottled water, by segment, 2000-05
• Major manufacturer profiles
• Nestlé Waters North America (NWNA)
• PepsiCo, Inc. (Pepsi-Cola North America)
• Coca-Cola Company
• Danone Waters North America (DWNA)
• Suntory Water Group
• Crystal Geyser
• Glaceau Water Company
• Advertising and Promotion
• Aquafina
  • Figure 29: Media expenditures for theAquafina brand in dollars and as a percentage of sales, 2001-04
• Dasani
  • Figure 30: Media expenditures for theDasani brand in dollars and as a percentage of sales, 2001-04
• Poland Spring
  • Figure 31: Media expenditures for thePoland Spring brand in dollars and as a percentage of sales, 2001-04
• Retail Distribution
• Introduction
  • Figure 32: U.S. retail sales of bottledwater, by channel, 2003 and 2005
  • Figure 33: Graph: U.S. retail sales ofbottled water, by channel, 2005
  • Figure 34: Indexed sales of bottled water,by channel, 2000-05
• Supermarkets
  • Figure 35: U.S. supermarket sales ofbottled water, at current and constant prices, 2000-05
• Convenience stores/gas stations
  • Figure 36: U.S. convenience store and gasstation sales of bottled water, at current and constant prices, 2000-05
• Vending
  • Figure 37: U.S. vending machine sales ofbottled water, at current and constant prices, 2000-05
• Drug stores
  • Figure 38: U.S. drug store sales ofbottled water, at current and constant prices, 2000-05
• Mass merchandisers and clubs
  • Figure 39: Mass merchandiser and clubstore sales of bottled water, at current and constant prices, 2000-05*
• The Consumer
• Introduction
• Summary
• Bottled water usage
  • Figure 40: Incidence and level of bottledwater usage, by gender, January-September 2005
  • Figure 41: Incidence and level of bottledwater usage, by age, January-September 2005
  • Figure 42: Graph: Incidence ofnon-carbonated bottled water usage, by age, January-September 2005
  • Figure 43: Incidence and level of bottledwater usage, by household income, January-September 2005
  • Figure 44: Graph: Incidence ofnon-carbonated bottled water usage, by household income,January-September 2005
  • Figure 45: Incidence and level of bottledwater usage, by race/ethnicity, January-September 2005
  • Figure 46: Incidence and level of bottledwater usage, by geographic region, January-September 2005
  • Figure 47: Incidence and level of bottledwater usage, by presence of children in the household, January-September2005
• Incidence and level of bottled water usage by teens
  • Figure 48: Bottled water usage in teens,by age and gender, January-September 2005
• Where teens drink bottled water
  • Figure 49: Where bottled water is drunk byteens, by age and gender, January-September 2005
• Bottled water usage by cohort
  • Figure 50: Descriptions of selectedcohorts
  • Figure 51: Incidence and level of bottledwater usage, by cohort, January-September 2005
• Enhanced variations of bottled water
  • Figure 52: Trial of bottled watervariations, by age, March 2006
  • Figure 53: Trial of bottled watervariations, by presence of children in the household, March 2006
• Bottled water purchases by segment
  • Figure 54: Types of bottled waterpurchased, by gender, March 2006
  • Figure 55: Types of bottled waterpurchased, by age, March 2006
  • Figure 56: Types of bottled waterpurchased, by household income, March 2006
  • Figure 57: Types of bottled waterpurchased, by race/ethnicity, March 2006
• Place and way of purchase
  • Figure 58: Source and method of purchaseof portable non-carbonated bottled water, by gender, March 2006
  • Figure 59: Source and method of purchaseof portable non-carbonated bottled water, by age, March 2006
  • Figure 60: Source and method of purchaseof portable non-carbonated bottled water, by household income, March2006
  • Figure 61: Source and method of purchaseof portable non-carbonated bottled water, by presence of children in thehousehold, March 2006
• Importance of brand
  • Figure 62: Importance of bottled waterbrand, by age, March 2006
  • Figure 63: Importance of bottled waterbrand, by household income, March 2006
  • Figure 64: Importance of bottled waterbrand, by race/ethnicity, March 2006
• Taste preferences for non-carbonated brands
  • Figure 65: Which non-carbonated waterbrand tastes best, by age, March 2006
  • Figure 66: Which non-carbonated waterbrand tastes best, by household income, March 2006
  • Figure 67: Which non-carbonated waterbrand tastes best, by geographic region, March 2006
• Taste preferences for carbonated brands
  • Figure 68: Which carbonated water brandtastes best, by household income, March 2006
• Why bottled water is purchased
  • Figure 69: Reasons for buying bottledwater, by gender, March 2006
  • Figure 70: Reasons for buying bottledwater, by age, March 2006
  • Figure 71: Reasons for buying bottledwater, by household income, March 2006
  • Figure 72: Reasons for buying bottledwater, by presence of children in the household, March 2006
• Basis of bottled water selection
  • Figure 73: Basis of bottled waterselection, by age, March 2006
  • Figure 74: Basis of bottled waterselection, by household income, March 2006
• Attitudes toward bottled water
  • Figure 75: Attitudes toward bottled water,by age, March 2006
  • Figure 76: Attitudes toward bottled water,by geographic region, March 2006
  • Figure 77: Attitudes toward bottled water,by presence of children in the household, March 2006
• Attitudes toward beverage alternatives
  • Figure 78: Attitudes toward beveragealternatives, by gender, March 2006
  • Figure 79: Attitudes toward beveragealternatives, by age, March 2006
  • Figure 80: Attitudes toward beveragealternatives, by household income, March 2006
  • Figure 81: Attitudes toward beveragealternatives, by race/ethnicity, March 2006
  • Figure 82: Attitudes toward beveragealternatives, by presence of children in the household, March 2006
• Future and Forecast
• Future trends
• Demographics
  • Figure 83: U.S. population projections, byage, 2005-10
  • Figure 84: U.S. population, by race andHispanic origin, 2005 and 2010
• Deterioration of national brands
• End of sodas in school vending machines
• Bottled water as trendy accessory
• Market forecast
• Bottled water
  • Figure 85: Forecast of total U.S. sales ofbottled water, at current and constant prices, 2005-10
  • Figure 86: Forecast of total U.S. sales ofbottled water, at current and constant prices, 2005-10
• Convenience and PET bottled water
  • Figure 87: Forecast of U.S. sales ofconvenience and PET bottled water, at current and constant prices,2005-10
• Jug and bulk bottled water
  • Figure 88: Forecast of U.S. sales of jugand bulk bottled water, at current and constant prices, 2005-10
• Sparkling and mineral bottled water
  • Figure 89: Forecast of U.S. sales ofsparkling and mineral bottled water, at current and constant prices,2005-10
• Forecast factors
• Appendix: Trade Associations
• Appendix: New Product Developments
• Category review of global developments in bottled water
• Introduction
• Executive summary
• Product trends
• More than refreshment -- enhanced waters
• Dieting
• Beauty
• Vitamin & mineral fortification
• Calorie & sugar content continues to be reduced
• Low sodium content key for mineral waters
• Energizing/stimulating varieties
• More advanced processing techniques
• Targeting children & babies
• Children
• Babies
• Flavors/Ingredients
• Fruit
• Herbs & botanicals
• Green, white & red tea
• Unusual
• Packaging
• Convenience
• Design/premium positioning
• Environmentally-friendly
• Product launches by company/brand
• Forecast/predictions
• New product launches
• Le Nature's Aqua Ade Fitness Water Beverage
• Kraft Foods CapriSun Roarin' Waters Fruit Flavored Water Beverage
• Blu Italy Sparkling Water
• Hint Kids Premium Drinking Water
• Longs Drug Stores Walnut Grove Market Drinking Water
• Talking Rain Botanicals Naturally Flavored Spring Water Beverage
• Nestlé Waters Perrier Lemon Flavored Sparkling Mineral Water
• Hy-Vee Water Coolers Sparkling Beverage
• Evian Limited Edition Natural Spring Water
• Nestlé Waters Ozarka Natural Spring Water
• Target Archer Farms Pomegranate Fortified Water Beverage
• Dasani Sensations Flavored Sparkling Water
• Appendix: Simmons cohorts
  • Figure 90: Married couples cohorts
  • Figure 91: Single women cohorts
  • Figure 92: Single men cohorts