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Business buoyed by emerging countries
Last update april 2010
:: With a total of roughly 18 billion litres of packaged water marketed
in 2009, Danone is the world’s second largest producer, with a global market share of approximately 8.5%.The group’s Indonesian brand, Aqua, on its own chalked up 7 billion litres sold and a 50% market share, which makes Danone the world’s leading packaged water brand in volume. With Evian and Volvic, Danone also owns two of the five worldwide brands of bottled water.
The Waters division’s sales totalled €2.6 billion in 2009, 49% of this total achieved in Europe, 27% in Asia and 24% in the rest of the world. On a like-for-like basis, the share of water sales in emerging countries was 51%, compared to 49% for the industrialised nations (including Western Europe, Canada, the United States and Japan).
The year 2009 was a challenging one for the Waters division, especially in certain industrialised countries like Spain and Japan, where sales decreased significantly, but nevertheless stabilised during the fourth quarter. These difficulties on the water market can be explained by the economic crisis on markets which have long withstood attacks relative to environmental impact, as well as competition with tap water. Danone, through its principal brands in France, joined the mineral water defence campaign led by the employers' federation, presenting its position in a “Mem'eau” that can be read online at http://leseauxmineralesnaturelles.com. The campaign seeks to put an end to several preconceived notions and promote the benefits of natural mineral water: Naturalness, Protection, Purity, Minerals, Recyclability, Pleasure.
But the simple message that one must “drink more water because it’s the only drink the body really needs,” central to the Danone strategy, made it possible for the group to experience sales increases in the second half of 2009 on markets considered complex, such as the United Kingdom, Germany and France, and boosted sales in its principal emerging countries. Growth is therefore still at a double-digit pace in Indonesia, Mexico, Argentina and China. This acceleration is explained in part by the Waters division’s ability to promote its brands and the benefits of water in markets where soft drinks are well-entrenched; by its expertise in convenience store distribution; and by consumer concerns, where great emphasis is placed on safety in the absence of drinking water in certain countries.
