Category Management Handbook

Packaged Beverages: Bottled Water 2016

Market Share: Bottled Water

C-store sales, 52 weeks ending Dec. 26, 2015

As the third-largest nonalcohol beverage category in c-stores, according to Nielsen, bottled-water sales in the channel lag behind other segments of retail. Euromonitor recently announced that bottled water passed carbonated soft drink as the most consumed pacakged beverage in the United States.

 

Subcategory

Dollar share

PCYA*

Unit sales (Millions)

PCYA*

Carbonated soft drinks31.1%23.3%58.821.7%
Energy drinks27.7%9.5%74.610.0%
Water12.8%4.6%57.92.5%
Sports drinks9.9%2.1%37.34.0%
RTD tea5.6%(6.6%)25.1(7.0%)
Fruit drinks4.4%14.3%29.315.1%
Fruit juice3.4%94.0%11.395.0%
RTD coffee2.7%(10.0%)19.3(5.6%)
Others***2.2%3.8%11.52.8%

Sources: The Nielsen Co., Dr Pepper Snapple Group Inc. | * Percent change from a year ago | *** Beverages with less than 2% dollar share


Where the Gains Are

C-store unit sales of bottled water—including sweetened and enhanced—rose more than 10% in the 52 weeks ending Dec. 27, 2015, with convenience/PET, jug/bulk and seltzer/sparkling/mineral all seeing gains, according to IRI.

Nielsen figures show an 8% jump in c-store unit sales of plain single-serve bottled water, with multipacks up nearly 10% in the 52 weeks ending Jan. 2, 2016. Sweetened/enhanced unit sales, meanwhile, were up only slightly.

C-store sales, 52 weeks ending Dec. 27, 2015

Water typeC-store sales ($ millions)PCYA*Unit sales (millions)PCYA*
Convenience/PET***$3,375.312.9%2,081.19.8%
Jug/bulk$248.513.2%125.710.8%
Seltzer/sparkling/mineral$195.517.5%130.815.6%
Total category**$3,819.313.2%2,337.710.1%

Source: IRI | * Percent change from a year ago |** Including UPCs/brands/families not shown | *** Includes sweetened/enhanced varieties


Plain Water

C-store sales, 52 weeks ending Jan. 2, 2016

Water typeC-store sales ($ millions)PCYA*Unit sales (millions)PCYA*
Single-serve$2,345.312.7%1,569.98.0%
Take-home multipack$302.011.7%67.29.6%
Convenience serve/PET
(less than 53 ounces)
$2,647.312.6%1,637.18.1%
Multiserve/bulk$211.68.2%106.15.8%
Sparkling$79.122.4%50.819.7%
Total category$2,938.012.5%1,793.98.2%

Sweetened/Enhanced

 C-store sales ($ millions)PCYA*Unit sales (millions)PCYA*
Sweetened/enhanced$532.52.8%319.00.9%

Sources: The Nielsen Co., Nestlé Waters | * Percent change from a year ago


Big Number

8.0% —Increase in c-store unit sales of single-serve plain bottled water in 2015, according to Nielsen


Bottled-Water Gallon Growth

C-store sales, fourth-quarter 2015 ending Jan. 2, 2016

The pace of growth in c-store bottled-water gallons picked up in 2015, with the final two quarters of the year enjoying the biggest gains, according to Nielsen.

QuarterGallons PCYA*
Q1 20117.0%
Q2 2011(2.5%)
Q3 20115.1%
Q4 20117.7%
Q1 201212.9%
Q2 201212.3%
Q3 20127.7%
Q4 201210.2%
Q1 20131.4%
Q2 20132.8%
Q3 20134.2%
Q4 20133.3%
Q1 20147.2%
Q2 20145.2%
Q3 20147.1%
Q4 201413.4%
Q1 20159.9%
Q2 20156.6%
Q3 201511.3%
Q4 201510.6%

Sources: The Nielsen Co., Nestlé Waters | * Percent change from a year ago


Consumer in Focus

According to a Mintel survey, the top reasons consumers have for drinking bottled water of all types—plain still, sparkling, enhanced and flavored—include hydration (52%), its health benefits (46%) and taste (38%). Meanwhile, 28% say they drink bottled water as an alternative to “other, less healthful beverages.” This would explain the appeal of sparkling water, which has a bubbly mouth-feel similar to that of carbonated soft drinks, Mintel says.


Latest Quarter: Bottled-Water UPCs (Plain and Enhanced)

C-store sales, 13 weeks ending Dec. 27, 2015

In the final quarter of 2015, bottled-water unit sales—including enhanced varieties—picked up 9%, according to IRI.

UPCC-store sales ($ millions)PCYA*Unit sales (millions)PCYA*
Glacéau smartwater (33.8-oz.)$53.125.0%24.022.4%
Aquafina (33.8-oz.)$38.26.9%23.53.0%
Glacéau smartwater (23.7-oz.)$37.114.5%20.411.5%
Aquafina (20-oz.)$35.80.3%30.7(0.5%)
Dasani (20-oz.)$33.11.9%26.70.2%
Dasani (33.8-oz.)$30.16.9%18.14.6%
Fiji (33.8-oz.)$23.030.4%8.829.6%
Poland Spring (33.8-oz.)$14.10.8%8.0(2.8%)
Glacéau vitaminwater XXX (acai blueberry pomegranate, 20-oz.)$13.55.2%7.84.1%
Fiji (16.9-oz.)$12.634.6%7.630.8%
Total**$807.111.6%492.59.0%

Source: IRI | * Percent change from a year ago |** Including UPCs/brands/families not shown

Continued: Top UPCs, Bulk & Manufacturers

Plain-Water UPCs by Units, Dollars and Gallons

C-store sales, 52 weeks ending Jan. 2, 2016

The top-selling plain-water UPC in c-stores by units, dollars and gallons in 2015 was the 33.8-ounce Glacéau smartwater, per Nielsen.

Units

UPCUnit sales (millions)PCYA*
Glacéau smartwater (33.8-oz.)106.813.3%
Aquafina (20-oz.)101.61.4%
Glacéau smartwater (23.8-oz.)95.415.0%
Dasani (20-oz.)94.5(4.4%)
Aquafina (33.8-oz.)89.78.9%

Dollars

UPCDollar sales ($ millions)PCYA*
Glacéau smartwater (33.8-oz.)$235.719.4%
Glacéau smartwater (23.8-oz.)$172.017.5%
Aquafina (33.8-oz.)$147.411.9%
Aquafina (20-oz.)$126.64.0%
Dasani (20-oz.)$123.00.5%

Gallons

UPCGallon sales (millions)PCYA*
Glacéau smartwater (33.8-oz.)28.213.3%
Aquafina (33.8-oz.)23.78.9%
Dasani (33.8-oz.)18.6(1.4%)
Glacéau smartwater (23.8-oz.)17.715.0%
Aquafina (20-oz.)15.91.4%

Sources: The Nielsen Co., Nestlé Waters | * Percent change from a year ago


Bulk and Multipack

C-store unit sales of bulk bottled water rose nearly 11% in 2015, according to IRI. Nielsen shows the 20-pack of 16.9-ounce Nestlé Pure Life as the top UPC.

Jug/Bulk Water Brands by Dollars

C-store sales, 52 weeks ending Dec. 27, 2015

BrandC-store sales ($ millions)PCYA*Unit sales (millions)PCYA*
Private label$60.831.0%33.627.0%
Arrowhead$22.43.6%9.50.7%
Ozarka$22.07.2%11.110.3%
Poland Spring$20.511.7%9.38.1%
Deer Park$19.512.0%8.810.2%
Total**$248.513.2%125.710.8%

Sources: IRI | * Percent change from a year ago |** Including UPCs/brands/families not shown

Multipack UPCs

C-store sales, 52 weeks ending Jan. 2, 2016

BrandC-store sales ($ millions)PCYA*Unit sales (millions)PCYA*
Nestlé Pure Life (20-pack, 16.9-oz.)$66.1(4.9%)15.0(7.0%)
Private label (24-pack, 16.9-oz.)$32.0173.7%8.6175.5%
Dasani (24-pack, 16.9-oz.)$26.120.5%4.718.6%
Aquafina (24-pack, 16.9-oz.)$25.135.3%4.633.5%
Ozarka (24-pack, 16.9-oz.)$17.69.1%3.611.5%
Total**$302.011.7%67.29.6%

Sources: The Nielsen Co., Nestlé Waters | * Percent change from a year ago |** Including UPCs/brands/families not shown


Bottled-Water Manufacturer Share by Gallons and Dollars

C-store sales, 52 weeks ending Jan. 2, 2016

Private label picked up gallon and dollar share of bottled-water sales in c-stores in 2015, per Nielsen.

Gallon Sales

ManufacturerDollar salesPoint change
Nestlé Waters North America41.3%(3.9)
Private label21.8%3.4
Coca-Cola16.2%(0.1)
Pepsi-Cola9.8%0.5
All others10.9%N/A

Dollar Sales

ManufacturerDollar salesPoint change
Nestlé Waters North America35.6%(3.4)
Coca-Cola25.3%0.2
Private label13.8%2.4
Pepsi-Cola11.5%0.2
All others12.9%N/A

Sources: The Nielsen Co., Nestlé Waters

Sparkling and Mineral Waters

C-store unit sales of sparkling and mineral waters rose by double-digit percentages in 2015, according to IRI and Nielsen.

C-store sales, 52 weeks ending Dec. 27, 2015

Sparkling

BrandC-store sales ($ millions)PCYA*Unit sales (millions)PCYA*
Perrier$60.624.0%37.521.9%
Sparkling Ice$32.023.7%22.023.6%
Glacéau fruitwater$19.7(3.1%)13.2(2.0%)
Topo Chico$18.031.2%11.523.7%
Schweppes$15.417.3%10.510.1%
Total**$195.517.5%130.815.6%

Source: IRI | * Percent change from a year ago |** Including UPCs/brands/families not shown

Mineral

C-store sales, 52 weeks ending Jan. 2, 2016

UPCC-store sales ($ millions)PCYA*Unit sales (millions)PCYA*
Perrier (16.9-oz.)$26.119.8%16.717.5%
Perrier (citron, 16.9-oz.)$11.830.5%7.523.5%
Topo Chico (20-oz.)$7.817.9%5.315.0%
Perrier (lemon/orange, 16.9-oz.)$4.538.9%2.835.8%
Perrier (25.35-oz.)$4.414.3%1.811.9%
Total**$79.122.4%50.819.7%

Sources: The Nielsen Co., Nestlé Waters | * Percent change from a year ago |** Including UPCs/brands/families not shown


Category Insight

According to research by Management Science Associates Inc. (MSA), bottled water is the No. 3 purchased packaged beverage in the morning (6 to 10 a.m.) and evening (3 to 7 p.m.) dayparts. MSA’s analysis of retail POS data showed bottled water made up 19% of packaged-beverage purchases in the morning and 17% in the evening.


Single-Serve Bottled-Water Share by Package

C-store sales, 52 weeks ending Jan. 2, 2016

The 21- to 30.9-ounce package size of single-serve bottled water picked up c-store gallon and dollar share in 2015, according to Nielsen.

Gallons

Package sizeDollar sharePoint change
31-35.9-oz.50.6%(0.4)
19-20.9-oz.17.9%(2.6)
21-30.9-oz.14.8%1.5
16-18.9-oz.10.0%0.6
36-52.9-oz.6.7%0.9

Dollars

Package sizeDollar sharePoint change
31-35.9-oz.46.8%(0.5)
19-20.9-oz.19.6%(2.4)
21-30.9-oz.17.2%1.9
16-18.9-oz.11.5%0.4
36-52.9-oz.4.9%0.6

Sources: The Nielsen Co., Nestlé Waters


Big Number

15.6% —Increase in c-store unit sales of mineral, sparkling and seltzer water in 2015, per IRI


Sweetened/Enhanced Waters by UPC

C-store sales, 52 weeks ending Jan. 2, 2016

Despite little overall unit sales growth for sweetened/enhanced water in 2015, eight of the top 10 UPCs did see gains.

UPCC-store sales ($ millions)PCYA*Unit sales (millions)PCYA*
Glacéau vitaminwater XXX (acai blueberry pomegranate, 20-oz.)$57.87.0%33.05.3%
Glacéau vitaminwater Power-C (dragonfruit, 20-oz.)$50.17.0%28.65.1%
Glacéau vitaminwater Energy (tropical citrus, 20-oz.)$45.712.4%26.010.3%
Glacéau vitaminwater Revive (fruit punch, 20-oz.)$27.5(4.8%)15.7(6.7%)
Glacéau vitaminwater XXX (acai blueberry pomegranate, 32-oz.)$26.04.7%11.22.5%
Glacéau vitaminwater Energy (tropical citrus, 32-oz.)$22.05.2%9.23.6%
Glacéau vitaminwater Essential (orange-orange, 20-oz.)$20.61.6%12.00.2%
Glacéau vitaminwater Power-C (dragonfruit, 32-oz.)$18.9(8.4%)8.0(10.9%)
Glacéau vitaminwater Focus (kiwi strawberry, 20-oz.)$17.57.3%10.15.1%
Propel Kiwi Strawberry (20-oz.)$16.980.5%10.671.3%
Total**$532.52.8%319.00.9%

Sources: The Nielsen Co., Nestlé Waters |* Percent change from a year ago |** Including UPCs/brands/families not shown


Packaged Beverages: What to Watch

Carbonated Soft Drinks

Fruit Juice and Fruit Drinks

Specialty: Energy, Sport, Tea, Coffee

Alcohol

CMOY Alcohol Beverages: Damian Wyatt

CMOY Packaged Beverages: Gary Woods

View the full 2016 Category Management Handbook

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