INNOVATION IN THE BEVERAGE INDUSTRY GLOBAL WATER

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

3 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 London Chicago Singapore Shanghai § Annually-updated syndicated research in 80 countries § Customised ad-hoc projects conducted globally in virtually every market § 800+ analysts in 80 countries Dubai Vilnius Cape Town Santiago § Regional research hubs and industry specialist support teams Tokyo Sydney Bangalore © 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 4

5 INNOVATION IN THE BEVERAGE INDUSTRY GLOBAL SALES BY REGION AND BEVERAGE TYPE 445 bn litres 2010 Off-trade volume mn litres © Euromonitor International 445 bn litres

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

7 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 26. 0 12. 8 19. 9 39. 1 56. 5 9. 3 77. 8 92. 3 Carbonates 23. 0 5. 9 74. 2 32. 9 72. 7 13. 0 114. 7 49. 3 Concentrates 0. 4 0. 1 5. 2 0. 5 1. 1 0. 4 Fruit/Vegetable Juice 8. 5 5. 0 30. 3 18. 8 9. 6 3. 3 33. 2 22. 8 RTD Coffee 0. 6 1. 0 5. 6 - - - 0. 6 0. 2 RTD Tea 4. 1 5. 6 1. 2 2. 7 0. 1 7. 7 4. 8 Sports and Energy Drinks 2. 0 1. 1 7. 5 0. 9 1. 6 0. 2 17. 4 3. 5 Asian Speciality Drinks 3. 0 5. 3 Off trade volume 2010 litres per capita © Euromonitor International - 1. 8

INNOVATION IN THE BEVERAGE INDUSTRY WHO IS EUROMONITOR INTERNATIONAL THE GLOBAL BEVERAGE INDUSTRY GLOBAL DRIVERS FOR INNOVATION KEY LEARNINGS Q&A © Euromonitor International 8

9 INNOVATION IN THE BEVERAGE INDUSTRY WHAT DRIVES INNOVATION GLOBALLY? Economising Packaging Drivers for Innovation Sustainability Health and Wellness Premiumisation © Euromonitor International

INNOVATION IN THE BEVERAGE INDUSTRY 10 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

11 INNOVATION IN THE BEVERAGE INDUSTRY FUNCTIONAL DRINKS OUTPACE GLOBAL SOFT DRINKS Percentage Growth 35 30 25 20 15 10 5 0 Middle East Asia Pacific Latin and Africa America World Eastern Europe Sports and Energy Drinks © Euromonitor International Western Australasia Europe Soft Drinks Off trade volume growth 2010 -2015 North America

INNOVATION IN THE BEVERAGE INDUSTRY ECONOMISING, VALUE FOR MONEY Global private label share is on the rise © Euromonitor International 12

13 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. © Euromonitor International

14 INNOVATION IN THE BEVERAGE INDUSTRY INNOVATION – FINDING A NICHE IN THE MARKET Identifying the emerging demographic in the UAE Date milk smoothie Barakat © Euromonitor International Bottled water Al Ain

15 INNOVATION IN THE BEVERAGE INDUSTRY INNOVATION – VISUAL DIFFERENTIATION Standout designs & use of colour Ingredient enhancement Hungary Poland be! BEAUTIFUL Gorska Natura Innovative Beverages Kft Building strong brand identity water Functional bottled 2010 © Euromonitor International 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 Q&A © Euromonitor International 16

INNOVATION IN THE BEVERAGE INDUSTRY Percentage Growth FUTURE GROWTH PROSPECTS 2010 -2015 Off-trade volume growth © Euromonitor International 17

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

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)