The Products

• Definition of Bottled Water
• Nutrition Labeling and Education Act
• Methods Used to Ensure Bottled Water Quality
• Bottled Water Product Categories
• Noncarbonated Bottled Water
• Distilled Water
• Carbonated Water/Seltzer/Club Soda
• Commercial/Home-Delivered Water
• New Product Introductions

The Market

• Market Size and Growth
• Overall US Bottled Water Market
• Table 1-1: US Retail Sales of Bottled Water, 1994-1998
• Table 1-2: US Retail Sales of Bottled Water, by Market Segment, 1998
• Noncarbonated Bottled Water
• Distilled Water
• Carbonated Water/Seltzer/Club Soda
• Commercial/Home-Delivered Segment
• Imports and Exports
• Per Capita Consumption
• Table 1-3: US Per Capita Consumption of Bottled Water, 1982-1998
• Issues and Trends Affecting the Bottled Water Market
• Fluoridation Issue
• Social Trends Increase Bottled Water Demand
• Figure 1-1: US Per Capita Consumption of Bottled Water, 1982-1998
• Public Water System Supervision Program
• Point-of-Use Water Treatment Industry
• Projected Market Growth
• Table 1-4: Projected US Retail Sales of Bottled Water, 1999-2003

The Marketers

• Marketer Overview
• Highly Fragmented Market
• Acquisition Strategy Made Perrier Number One
• Supermarket Sales and Share
• Noncarbonated Bottled Water
• Distilled Water
• Carbonated Water/Seltzer/Club Soda
• Private Label Products
• Commercial/Home-Delivered Water
• Overall Market Share Standings

Distribution and Retail

• Distribution a Major Expense
• Delivery Methods
• Retail Outlets

The Consumer

• Consumer Motivations
• Bottled Water Consumer Profile

Scope and Methodology

II THE PRODUCTS

History of Bottled Water in the United States

• The Market Before 1977
• Perrier Rollout
• Lasting Effects of the Perrier Rollout

Classification of Bottled Water

• Classification of Water Poses Problems
• Nutrition Labeling and Education Act
• Nutrition Labeling and Education Act Descriptors
• Drinking Water
• Mineral Water
• Purified Water
• Spring Water
• Well Water
• Artesian Water
• Sparkling Water

Bottled Water Quality

• Water Comes from Natural Sources, Treated Municipal Supplies
• Source Protection and Source Monitoring
• Reverse Osmosis
• Ozonation
• Micron Filtration
• Distillation
• Testing

Product Categories

• Noncarbonated Bottled Water
• Distilled Water
• Carbonated Water
• Seltzer
• Club Soda
• Tonic Water
• Commercial/Home-Delivered Water
• Water Cooler Industry
• Water Cooler Water Products
• Water Cooler Business Grew in the 1980s
• Automatic-Fill Water Coolers

New Product Introductions

• New Product Introductions on the Rise
• Many New Product Introductions from Small Companies
• Major New Product Trends
• Oxygenated Waters
• Caffeinated Waters
• New Product Listings
• AquaPenn Spring Water Company
• Bear Rock Beverages
• Black Mountain Spring Water
• Cable Car Beverage Corporation
• Concord Beverage Company
• Earth2O Company
• Great Brands of Europe
• Indian Wells Water
• Life 02 International
• Mayer Bros Apple Products
• McKesson Water Products Company
• Natural Waters of Viti
• Naya
• Paradise Water
• Perrier Group of America
• River City Beverages
• Rockland Corporation
• Saratoga Beverage Group
• Sports Group International
• Suntory Water Group
• Thunderhead Beverages
• White Rock Products Corporation

III THE MARKET

Definition of the Market

• Scope of Report

Market Size and Growth

• Total Retail Sales Estimated at $46 Billion
• Table 3-1: US Retail Sales of Bottled Water, 1994-1998
• Figure 3-1: US Retail Sales of Bottled Water, 1994-1998
• Figure 3-2: US Retail Sales of Bottled Water, by Market Segment, 1998
• Table 3-2: US Retail Sales of Bottled Water, by Market Segment, 1998
• Noncarbonated Bottled Water Sees Extraordinary Growth
• Alternative to Soft Drinks
• Convenience Factor
• Health Concerns
• PET Packaging
• Distilled Water Also Does Well
• Carbonated Water/Seltzer/Club Soda Is a Mature Segment
• Table 3-3: US Retail Sales of Noncarbonated Water, Distilled Water, and Carbonated Water/Seltzer/Club Soda Commercial/Home-Delivered Water Gives Solid Performance
• Table 3-4: US Retail Sales of Commercial/Home-Delivered Water, 1994-1998
• Imports and Exports
• Table 3-5: US Imports of Mineral and Aerated Waters, without Sugar, Sweetening, or Flavoring, 1994-1998
• Table 3-6: US Exports of Mineral and Aerated Waters, without Sugar, Sweetening, or Flavoring, 1994-1998
• Table 3-7: US Imports of Mineral and Aerated Water, without Sugar, Sweetening, or Flavoring, by Country of Origin, 1997
• Table 3-8: US Exports of Mineral and Aerated Water, without Sugar, Sweetening, or Flavoring, by Country of Destination, 1997 Per Capita Consumption
• Figure 3-3: US Per Capita Consumption of Bottled Water, 1982-1998
• Table 3-9: US Per Capita Consumption of Bottled Water, 1982-1998

Factors To Market Growth

• Packaging Innovations
• The Fluoridation Issue Is a Hot Topic
• Statements from the American Dental Association
• International Bottled Water Association Responds
• Contamination and Product Recalls
• Perrier Recall
• Effect of Recalls Seems Slight
• Recycling Issues
• Social Trends Increase Bottled Water Demand
• European Influences
• Healthful Properties of Waters Add Appeal
• Water's Critical Role in the Body
• Health Concerns and the Public Water Supply
• Americans Skeptical of Quality of US Water Supply
• Public Water System Supervision Program
• Safe Drinking Water Act
• Population Shifts Impact Water Supply
• Water Availability
• The Bottled Water Industry Versus the Public Water Supply
• Most Water Systems Given Clean Bill of Health
• The Clean Water Action Plan
• Controlling Polluted Runoff
• Enhanced Federal Stewardship
• Restoring and Protecting Wetlands
• New Resources for Watersheds
• Water 2000
• Bottled Water Legislation
• Competition from the Point-of-Use Water Treatment Industry
• Competition Strongest with Home-Delivered Water

Projected Market Growth

• Market Will Surpass $64 Billion by 2003
• Table 3-10: Projected US Retail Sales of Bottled Water, 1999-2003 Five-Year Forecasts by Segment
• Figure 3-4: Projected US Retail Sales of Bottled Water, 1999-2003
• Table 3-11: US Retail Sales of Noncarbonated Water, Distilled Water, and Carbonated Water/Seltzer/Club Soda, 1999-2003
• Table 3-12: Projected US Retail Sales of Commercial/Home- Delivered Water, 1999-2003
• Noncarbonated Segment to Lead Growth

IV THE MARKETERS

Marketer Overview

• A Highly Fragmented Business
• Acquisition Strategy Made Perrier Number One
• Mergers and Acquisitions Decline in the Late 1990s

Competitive Overview

• Supermarket Sales and Share
• Perrier Leads Noncarbonated Bottled Water Segment
• Table 4-1: Noncarbonated Water Marketer Supermarket Sales and Share, 1998
• And the Distilled Water Segment
• Table 4-2: Distilled Water Marketer Supermarket Sales and Share, 1998
• Cadbury Leads Carbonated Water/Seltzer/Club Soda
• Table 4-3: Carbonated Water/Seltzer/Club Soda Marketer Supermarket Sales and Share, 1998
• Private Label Products on the Rise
• Major Players in Commercial/Home-Delivered Water
• Perrier Leads the Overall US Bottled Water Market
• Table 4-4: Leading Players in the US Bottled Water Market

Competitive Profile: Cadbury Beverages, Inc

• Company Overview
• History
• Cadbury Leads the US Carbonated Water Segment

Competitive Profile: Coca-Cola Company

• Company Overview
• Coca-Cola's Bottled Waters
• Belmont Springs Acquisition
• Coca-Cola Re-enters Bottled Water Market

Competitive Profile: Culligan Water Technologies, Inc

• Overview
• Recent Acquisitions
• Bottled Water Business

Competitive Profile: Great Brands of Europe, Inc

• Company Overview
• Evian Is Number One Brand in United States
• Evian Is World Leader
• Dannon Bottled Water Takes Off
• New Mini-Packs for Children
• US Open Promotion
• Use of PET Containers
• National Brand Strategy
• Acquisition of AquaPenn

Competitive Profile: McKesson Water Products Company

• Company Overview
• Number Three in Bottled Water
• Commercial/Home-Delivered Waters
• Production Facilities
• New Sports Caps

Competitive Profile: Naya, Inc

• Company Overview
• Naya's Source
• Use of PET Packaging
• Generation X and Naya
• Packaging Redesigned

Competitive Profile: PepsiCo, Inc

• Company Overview
• PepsiCo Enters Bottled Water Market
• PepsiCo's Aquafina Brand Doing Well
• Midpriced Alternative to Premium Brands

Competitive Profile: Perrier Group of America, Inc

• Company Overview
• History of Perrier
• Perrier's Regional Brand Strategy
• Poland Spring Is Perrier's Leading Brand
• Perrier Brands Have National Coverage
• San Pellegrino Acquisition
• Perrier Leads in Noncarbonated and Distilled Retail Segments
• Perrier's Promotions in 1998

Competitive Profile: Suntory Water Group, Inc

• Company Overview
• Number Two in US Bottled Water Market
• Kentwood Acquisition
• Hinckley & Schmitt
• New Hinckley & Schmitt Products

V DISTRIBUTION AND RETAIL

Distribution

• A Major Expense
• Two Principal Delivery Methods
• Direct Store Delivery
• Warehouse Delivery

Retail Outlets

• Supermarkets Dominate Retail Sales
• Heavy Competition for Shelf Space
• Supermarket Promotions Necessary
• Warehouse Clubs
• Water Stores
• Foodservice Sales
• Vended Sales

Commercial/Home-Delivered Water

• Commercial-Delivered Water
• Home-Delivered Waters

VI THE CONSUMER

Consumption of Bottled Water on the Rise

• Motivating Factors
• Consumer Concerns About Tap Water
• Taste and Flavor Issues
• The Subjectivity of Flavor
• State and Regional Differences

Consumer Profile

• A Young, Affluent, Well-Educated Audience
• Note on Simmons Market Research Bureau Data

Consumer Focus: Noncarbonated Bottled Spring Water

• 525% of 18-to-24 Age Group Uses Noncarbonated Bottled Water
• Noncarbonated Bottled Water Appeals to an Upscale Consumer
• Table 6-1: Demographic Characteristics Favoring Use of Noncarbonated Bottled Spring Water, 1998
• Table 6-2: Consumer Overview: Use of Noncarbonated Bottled Spring Water, 1998
• Greatest Popularity in West and Northeast
• Table 6-3: Consumer Overview: Use of Noncarbonated Bottled Spring Water, by Region, 1998

Consumer Focus: Sparkling Water/Seltzer

• Use Again Skews to Younger, Upscale Consumer
• Table 6-4: Demographic Characteristics Favoring Use of Sparkling Water/Seltzer, 1998
• Higher Use Among College Graduates
• Table 6-5: Consumer Overview: Use of Sparkling Water/Seltzer, 1998 West and Northeast Lead Again
• Table 6-6: Consumer Overview: Use of Sparkling Water/Seltzer, by Region, 1998

APPENDIX I: ADDRESSES OF SELECTED MARKETERS