Innovation in the beverage industry - TypePad

Transcript Innovation in the beverage industry - TypePad

INNOVATION IN THE BEVERAGE INDUSTRY GLOBAL WATER & BEVERAGE TECHNOLOGY CONGRESS - DUBAI

MARIAM JARRAR CONSULTANT, MIDDLE EAST, NORTH AFRICA AND TURKEY 2011 NOVEMBER

INNOVATION IN THE BEVERAGE INDUSTRY OBJECTIVES

WHO IS EUROMONITOR INTERNATIONAL

THE GLOBAL BEVERAGE INDUSTRY GLOBAL DRIVERS FOR INNOVATION KEY LEARNINGS Q & A © Euromonitor International 2

INNOVATION IN THE BEVERAGE INDUSTRY WHO IS EUROMONITOR INTERNATIONAL  A global strategic market intelligence source for almost 40 years  Helping clients make informed decisions  Consumer-focused: industries, countries, consumers  Annually-updated syndicated research in 80 countries  Customised ad-hoc projects conducted globally in virtually every market  800+ analysts in 80 countries  Regional research hubs and industry specialist support teams © Euromonitor International 3

INNOVATION IN THE BEVERAGE INDUSTRY WHO IS EUROMONITOR INTERNATIONAL

THE GLOBAL BEVERAGE INDUSTRY

GLOBAL DRIVERS FOR INNOVATION KEY LEARNINGS Q & A © Euromonitor International 4

INNOVATION IN THE BEVERAGE INDUSTRY GLOBAL SALES BY REGION AND BEVERAGE TYPE 5 445 bn litres © Euromonitor International

2010 Off-trade volume mn litres

445 bn litres

INNOVATION IN THE BEVERAGE INDUSTRY HOW MUCH DID WE DRINK IN 2010?

Middle East and Africa Asia Pacific Eastern Europe Latin America Australasia Western Europe North America 0 50 100 150 200 250

Off trade volume 2010 litres per capita

300

In 2010, 445 billion litres of soft drinks were sold globally which equates to 65 litres per head!

INNOVATION IN THE BEVERAGE INDUSTRY WHAT DO WE DRINK MOST, WHERE IN THE WORLD?

Bottled Water Carbonates Concentrates Fruit/Vegetable Juice RTD Coffee RTD Tea Sports and Energy Drinks Asian Speciality Drinks World Asia Pacific Australasia E Europe L America MENA N America W Europe 26.0 12.8 19.9 39.1 56.5 9.3 77.8 92.3 23.0 0.4 5.9 0.1 74.2 5.2 32.9 0.5 72.7 1.1 13.0 0.4 114.7 49.3 1.8 8.5 0.6 4.1 2.0 3.0 5.0 1.0 5.6 1.1 5.3 30.3 5.6 1.2 7.5 18.8 2.7 0.9 9.6 0.7 1.6 3.3 0.1 0.2 33.2 0.6 7.7 17.4 22.8 0.2 4.8 3.5

Off trade volume 2010 litres per capita

7 © Euromonitor International

INNOVATION IN THE BEVERAGE INDUSTRY WHO IS EUROMONITOR INTERNATIONAL THE GLOBAL BEVERAGE INDUSTRY

GLOBAL DRIVERS FOR INNOVATION

KEY LEARNINGS Q & A © Euromonitor International 8

INNOVATION IN THE BEVERAGE INDUSTRY WHAT DRIVES INNOVATION GLOBALLY?

Drivers for Innovation Economising Packaging Sustainability Health and Wellness Premiumisation

9 © Euromonitor International

10 INNOVATION IN THE BEVERAGE INDUSTRY HEALTH-POSITIONED BEVERAGE TREND A DOUBLE-EDGED SWORD

Consumer interest in health and well-being is creating strong volume growth opportunities

 Al Ain: vitamin enhanced water (Wow)  The Berry Company, UK imported  Masafi: focusing on 100% juice  Powerhorse: energy Cola drink © Euromonitor International

INNOVATION IN THE BEVERAGE INDUSTRY FUNCTIONAL DRINKS OUTPACE GLOBAL SOFT DRINKS 35 30 25 20 15 10 5 0 Middle East and Africa Asia Pacific Latin America World Eastern Europe Sports and Energy Drinks Western Europe Soft Drinks Australasia North America

Off trade volume growth 2010-2015

INNOVATION IN THE BEVERAGE INDUSTRY ECONOMISING, VALUE FOR MONEY

Global private label share is on the rise

12 © Euromonitor International

INNOVATION IN THE BEVERAGE INDUSTRY ECONOMISING, VALUE FOR MONEY

Bulk size beverage launches appeal to cost-conscious

Argentina

3-litre HDPE bottle in juice drinks

February 2009

Citric Chey’s launch follows a successful 3-litre launch in 100% juice and serves to take share from the liquid carton’s monopoly position.

Canada

3.8-litre PET bottle launched in juices

August 2010

Fruitopia is a well-known brand from The Coca-Cola Co and considered to do well following a trend in Canada towards juices retailed in economically-priced, larger bottle sizes.

INNOVATION IN THE BEVERAGE INDUSTRY INNOVATION – FINDING A NICHE IN THE MARKET Identifying the emerging demographic in the UAE 1,200 1,000

Population Aged 0-14 and 65+ 1980-2030

By 2030 there will be 3 people aged 0-14 to every person aged 65+ 800 600 400 200 0 1980 1990 2000 Population aged 65+ © Euromonitor International 2010 2020 2030 Population aged 0-14 14

INNOVATION IN THE BEVERAGE INDUSTRY INNOVATION – VISUAL DIFFERENTIATION Standout designs & use of colour Ingredient enhancement

Hungary be! BEAUTIFUL

Building strong brand identity

2010 Poland Gorska Natura

Pepsi-Cola General Bottlers Functional bottled water

2010

INNOVATION IN THE BEVERAGE INDUSTRY WHO IS EUROMONITOR INTERNATIONAL THE GLOBAL BEVERAGE INDUSTRY GLOBAL DRIVERS FOR INNOVATION

KEY LEARNINGS

INNOVATION IN THE BEVERAGE INDUSTRY FUTURE GROWTH PROSPECTS 2 1 4 3 6 5 8 7 0 Asia Pacific Australasia Eastern Europe Latin America Middle East and Africa North America

2010-2015 Off-trade volume growth

INNOVATION IN THE BEVERAGE INDUSTRY KEY LEARNINGS  Shift towards health and wellness  Emphasise unique ingredients  Look for a niche in the market: find new usage occasions 18 © Euromonitor International

THANK YOU FOR LISTENING

ANY QUESTIONS?

Mariam Jarrar

Consultant, Middle East, North Africa and Turkey [email protected]

Euromonitor International - Dubai F- Wing Office 606-607 Dubai Silicon Oasis (HQ)