2017 SANBWA AGM Presentation

Transcription

1 2017 SANBWA AGM Presentation Hayley van Schalkwijk October 2017

2 Introduction to BMi Research Background Experience 46 Consultation Philosophy Pricing Specialists South African Market Value Chain Knowledge Total Market Quantification of Various CPG Categories Annually Analytics & Dashboard Specialists Trending Research Customized IT Platform (Mobile, Reporting & Dashboard) Flexible Reporting Technology Affiliations 2 SANBWA AGM 2016

3 South African Beverage Market Total Estimated Beverage Market Volume Performance % Total Estimated Beverage Market Volume (Billion Litres) 2016 Volume 2017e Volume % % 3.8% 3.9% % 2016e 3.6% 41.6% 42.3% % 39.8% 38.7% 2017e 1.1% 2021f 0.1% Total Beverage Market Category Volume Performance 50% 14.9% 15.1% 40% 30% Alcoholic Beverages Non-Alcoholic Beverages Dairy Beverages Bottled Water 20% 10% 0% SANBWA AGM 2016 Alcoholic Beverages Dairy Beverages Non-Alcoholic Beverages

4 South African Beverage Market Alcoholic Beverages Categories mostly mature and static in terms of growth Renewed life in spirits category, following global trends Good growth in glass Sorghum beer remains under pressure Bulk wine exports shifting into final packaging for value add Non-Alcoholic Beverages Sports and energy drinks, and bottled water driving segment growth Less dependence on imported products Greater export market focus Rigid plastic dominates outright Growth in rigid plastic and cans Soft drinks and dilutables hold majority share Sugar tax expected to hit the market hard Dairy Beverages Health positioning underpins growth White and flavoured milk eroding segment growth UHT still making inroads, underpinned by convenience benefit Line extensions refuel market interest Sugar tax may impact on market profitability 4 SANBWA AGM 2016

5 Bottled Water Volume Consumption Annual Per Cap Demand (LPPPY) Annual % Volume Growth Year CAGR % Change 4.5% 2.7% 4.1% 8.2% 4.5% 3.9% Local Per Capita Consumption % Change Year CAGR % Change 3.3% 1.3% 1.3% 6.2% 2.3% 2.2% Note: Includes Imports and Excludes Exports 5 SANBWA AGM 2016

6 Million LItres Bottled Water Variant Demand 2016 Total Market Breakdown Total Market Breakdown (% Growth ) 1.8% Functional -3.9% 21.4% Sparkling flavoured 3.0% Functional Sparkling unflavoured Sparkling flavoured Still flavoured 5.1% Sparkling unflavoured Still flavoured 10.5% Still unflavoured 5.0% Still unflavoured 64.5% 1.8% 5.1% 6 SANBWA AGM Functional Still flavoured Sparkling flavoured Still unflavoured Sparkling unflavoured

7 Bottled Water Promotion Activity in Print Media (Jan-Jul 2017) Most Advertised Bottled Water Brand Most Advertised Bottled Water SKU Retailers who Promoted Bottled Water the Most AQUELLE STILL WATER 500 ML x 6 AQUELLE STILL WATER 5 LITRE x 2 AQUELLE STILL WATER 5 LITRE BONAQUA PUMP STILL WATER 750 ML x 2 AQUELLE FLAVOURED MINERAL WATER 500 ML X 6 7 SANBWA AGM 2016

8 Bottled Water Promotion Activity in Print Media (Jan-Jul 2017) Retailers most Promoted Brands Retailer Most Advertised Brand Second Most Advertised Brand Third Most Advertised Brand Checkers Thirsti 155 Aquelle 109 Bonaqua 47 Checkers Hyper Aquelle 878 Thirsti 640 Clover 246 Game Aquelle Bonaqua 254 Clover 75 Makro Aquelle 575 Nestlé 133 Vita 93 Pick n Pay Nestlé 488 Bonaqua 422 Aquelle 106 Shoprite Aquelle 195 Thirsti 85 Eastern Highlands 58 Spar Aquelle 70 Nestlé 38 Spar 10 Woolworths Exposed 50 Vita 49 * Number of Ads 8 SANBWA AGM 2016

9 No. of Ads per Month Bottled Water Print Promotional Activity by Month Seasonality Grid Number of Ads per Month (Jan-Jul 2017) Depth of Promotion (Jan-Jul 2017) Number of Days Number of Promotions % Share Number of Promotions % Share % % % % % % Total % % 0 Jan Feb Mar Apr May Jun Jul SANBWA AGM 2016

10 Bottled Water General Trends Bottled water economically priced versus other NARTDs Increasing awareness of ingredients, bottled water benefits The drought continues to cause shift to larger pack sizes of still water Focus on areas near bottling sites to reduce distribution costs Sugar tax expected to work in favour of bottled water, conversions from alternative drinks Influx of new market entrants Growing intensity of drought in certain areas boosted volumes 10 SANBWA AGM 2016

11 Conclusion General Cash strapped consumers seeking value Social media increasingly used as a marketing platform Sugar tax expected to work in favour of bottled water, alternative beverage categories scrambling, bottled water natural substitute Export market looking increasingly attractive Health maintains prominence as category driver Media investment and promotions underpin growth Innovation and fresh ideas are key Brands and retailers will continue to rely on heavy promotions to drive sales 11 SANBWA AGM 2016

12 Thank you bmi.co.za