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Johannesburg - The 2010 Fifa World Cup is expected be a boon for the bottled water industry, which has taken a knock from the recession.
According to BMI Foodpack, 1.7 million litres of water will be consumed during the tournament, a 4% increase in daily consumption.
"During the boom times the industry registered double-digit increases but it was off a much smaller base," says Charlotte Metcalfe, operations manager at the SA National Bottled Water Association.
"But growth was already slowing down before the economic shake-up as can be seen from the 2008 growth of 5% compared with 2007." Metcalfe estimates the bottled water market to be worth about R3bn based on a BMI Adcheck report.
The industry as a whole has experienced a decrease over the last 18 months according to Paul Collingridge, operations manager of Ceres spring water. "Sales are not what they used to be, but we are holding up relatively well."
He estimates that Coca Cola has about 60% of the market share, based on Valpré and Bonaqua's dominance and their national distribution. Nestlé and Aquelle are the other top brands.
It seems the consumer still believes in paying extra for branded water, rather than taking it from a tap. "I'm just glad that bottled water is seen as a mainstream product, not a luxury, or we might have been in trouble," continues Collingridge.
With Gauteng and the Western Cape as the main markets, most popular brand Valpré has now opened another plant in Heidelberg.
"It took us three years to find another place with geological properties comparable to those at the plant in Polokwane," says Coca Cola SA president Bill Egbe. Valpré is positioned as natural mineral water, containing trace elements of minerals from the rock strata.
Egbe explains that the new plant will reduce the company's carbon footprint, because shorter transportation distances will cut carbon emissions. Making a positive impact has become essential for big business.
"In this case, it makes sense to help the community around the plant obtain water," says Egbe. Coca Cola has already begun building relationships within the group to understand its needs "because we have to be involved in the communities we operate in".
- Fin24.com