Growing global health
trends, combined with an increasingly apparent lack of safe drinking water
around the world, have produced considerable momentum in the bottled water
space and premium mineral waters from untouched natural springs. Within just
the last handful of years a dramatic shift has occurred in beverage consumption
by adults all over the globe towards healthy choices and the bottled water
market was even recently pegged in a new report published by Transparency
Market Research as being on track to hit around $280 billion by 2020, growing
at a CAGR of 8.7%.
MarketResearch.com
analysis indicates a 20% growth rate over the past decade in the number of
adults consuming five or more bottles of water per day, even as their
consumption of beverages like diet and regular soft drinks plummeted. A
Netscribes report also shows that the global trend towards bottled waters, and
premium water in particular, is rock-solid, with the premium sparkling water
market and enhanced or functional waters emerging as not only a favored
beverage choice among global consumers, but as a healthy lifestyle fashion
statement and even a fashion accessory. Currently, the breakdown of the bottled
water market is roughly 65% still (regular), 23% carbonated, 7% flavored, and
5% functional, with the Asia-Pacific market forecast to outstrip all other
markets over the next five years, running a 10.5% revenue CAGR on the strength
of high-volume consumption, growing disposable income, and growing concerns
over water quality.
IBISWorld’s recent report
on U.S. bottled water production put the domestic market alone at over $8
billion in revenues last year, with more than 40% of the market being dominated
by a tiny handful of players, including Coca-Cola (NYSE: KO) and Nestle (OTC:
NSRGY), who have devoted an increasing amount of attention to the bottled water
market in recent years, despite being brands more widely recognized for
beverages like sugary soft drinks and chocolate milk. And yet the high-end,
premium, private label market is still largely underdeveloped. Nestle’s water
division for instance accounts for upwards of 10% of trading operating profit,
with India and Indonesia remaining strong markets for the company, but players
like Nestle only do broad spectrum consumer waters, where there is stiff
competition and their biggest regional rival, France-based Danone (OTCQX:
DANOY), is seeing similar headwinds in China. Outfits like the rapidly growing
private group, Hangzhou Wahaha, which is able to capture market share more
readily with its strong rural distribution network and established brand
presence for nutrition drinks and teas, is taking the big boys to the cleaners
in the broader consumer market. With all the competition focused on the broader
consumer space, the major players have left the niche premium water market
largely untouched.
One of the up and coming
players in this burgeoning sector today is Boreal Water Collection (OTC: BRWC),
an award-winning provider of premium bottled water, which is sourced from their
abundant and pristine spring deep in the heart of the Catskill Mountains. BRWC
caters largely to the attractive niche market of high-end private label
clients, exploiting their established presence as a boutique bottler to
capitalize on this still largely overlooked and fragmented space. BRWC CEO,
Francine Lavoie, personally flew to attend the FHC China Show late last year to
help capture more of this choice target market for Boreal’s premium bottled
water, as the FHC show is the essentially the exhibition of choice for food and
beverage importers, attracting key decision makers from across the Chinese
retail, import, and hospitably sectors.
The hospitality market is
a core demographic for BRWC, as evinced by their landing the Chatwal Hotel (New
York) last year as a new client. The Chatwal Hotel is a luxe boutique hotel
just two blocks off Times Square and Bryant Park, which occupies a gorgeous
landmark building styled with 1930s art-deco interiors, attracting a select
clientele that demands the very best in bottled waters. The Chatwal Hotel is
well known for its luxurious spa, featuring an indoor saltwater pool and
24-hour fitness center, as well as The Lambs Club Restaurant & Bar, a
fine-dining restaurant with a chic little bar, making this client an ideal
addition to BRWC’s growing list of such high-end hospitality industry clients.
High-end hotels like Chatwal are turning more and more towards providers like
BRWC, who can offer custom bottle design and labeling, as well as premium water
content that will whet the whistles of their discerning clientele.
Boreal Water Collection
produces a wide variety of still, carbonated, flavored and functional waters,
like caffeinated and mineral enhanced, and they have a broad array of bottle
design options for their clients to choose from. Boreal does all its bottles
in-house as well and uses extremely safe, high-quality PET plastics, which are
not known to leach any chemicals suspected of causing cancer or disrupting
hormones, like BPA plastics that make up most of the cheap water bottles on the
market today. BRWC even uses company-owned PET moulds to produce their bottles,
ensuring the highest standards in quality, and the bottles also have custom
safety caps and seals to ensure no leaks occur and no air gets in to
contaminate the product. Moreover, BRWC uses a rigorous ozonation process to
disinfect the bottle and cap prior to bottling, leaving nothing in the bottle
but the pure, clean taste of the spring water produced from deep inside thick,
impermeable layers of prehistoric clay at the company’s natural spring source.
Water connoisseurs know
that origin source makes all the difference when it comes to taste and health
benefits, and that waters taste much different depending on where they come
from, as well as what kind of source geology is present. The Boreal Water
Collection spring is 600 million year-old Precambrian host rock that is
naturally isolated from surface drainage and run-off, and the waters are
produced through a dense series of layered crystalline shelves that act as a
natural filter, giving the company’s water an incredibly delicious mineralized
purity that has won them admirers from around the world.
Learn more about the
company by visiting www.borealwater.com
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