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

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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

London London Chicago Chicago

Singapore Singapore Shanghai Shanghai

Dubai Dubai Vilnius Vilnius Cape Town Cape Town Santiago Santiago Tokyo Tokyo Sydney Sydney Bangalore Bangalore

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INNOVATION IN THE BEVERAGE INDUSTRY

WHO IS EUROMONITOR INTERNATIONAL THE GLOBAL BEVERAGE INDUSTRY GLOBAL DRIVERS FOR INNOVATION KEY LEARNINGS Q&A

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INNOVATION IN THE BEVERAGE INDUSTRY

GLOBAL SALES BY REGION AND BEVERAGE TYPE

445 bn litres

445 bn litres

2010 Off-trade volume mn litres

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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 50 100 150 200 250 300

Off trade volume 2010 litres per capita

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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?

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

Off trade volume 2010 litres per capita

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INNOVATION IN THE BEVERAGE INDUSTRY

WHO IS EUROMONITOR INTERNATIONAL THE GLOBAL BEVERAGE INDUSTRY GLOBAL DRIVERS FOR INNOVATION KEY LEARNINGS Q&A

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INNOVATION IN THE BEVERAGE INDUSTRY

WHAT DRIVES INNOVATION GLOBALLY?

Economising Packaging Drivers for Innovation Sustainability Health and Wellness Premiumisation

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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

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FUNCTIONAL DRINKS OUTPACE GLOBAL SOFT DRINKS

35 30 25 20 15 10 5 0

Percentage Growth

Middle East Asia Pacific Latin and Africa America

World

Eastern Europe

Western Australasia Europe

North America

Sports and Energy Drinks

Soft Drinks

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Off trade volume growth 2010-2015

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ECONOMISING, VALUE FOR MONEY Global private label share is on the rise

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ECONOMISING, VALUE FOR MONEY Bulk size beverage launches appeal to cost-conscious

Argentina
3-litre HDPE bottle in juice drinks February 2009
Citric Cheys launch follows a successful 3-litre launch in 100% juice and serves to take share from the liquid cartons 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.
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INNOVATION FINDING A NICHE IN THE MARKET

Identifying the emerging demographic in the UAE
Population Aged 0-14 and 65+ 1980-2030
By 2030 there will be 3 people aged 0-14 to every person aged 65+

1,200
1,000 800

'000

600

400
200 0 1980

Date milk smoothie Barakat

1990 2000 2010 2020 2030

Bottled water Al Ain

Population aged 65+

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Population aged 0-14

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INNOVATION VISUAL DIFFERENTIATION

Standout designs & use of colour

Ingredient enhancement

Hungary be! BEAUTIFUL Innovative Beverages Kft Building strong Functional bottled brand identity water 2010

Poland Gorska Natura Pepsi-Cola General Bottlers Functional bottled water 2010

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WHO IS EUROMONITOR INTERNATIONAL THE GLOBAL BEVERAGE INDUSTRY GLOBAL DRIVERS FOR INNOVATION KEY LEARNINGS Q&A

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FUTURE GROWTH PROSPECTS

Percentage Growth

2010-2015 Off-trade volume growth

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KEY LEARNINGS

Shift towards health and wellness

Emphasise unique ingredients Look for a niche in the market: find new usage occasions

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THANK YOU FOR LISTENING ANY QUESTIONS?

Mariam Jarrar Consultant, Middle East, North Africa and Turkey mariam.jarrar@euromonitor.com Euromonitor International - Dubai F- Wing Office 606-607 Dubai Silicon Oasis (HQ)