Thirst increases with the thermometer, the water bottlers deliver record quantities. But the drop in consumption from 2020 is still having an effect and consumers are increasingly turning to cheaper private labels and promotions. New varieties with vitamins and flavor should therefore stimulate activity.
“We are currently delivering up to 700,000 bottles a day,” beams Vitezslav Stanek, general manager of Waldquelle. “For every 0.5 percent increase in the thermometer, our sales figures increase by 15,000 liters per day,” calculates Römerquelle boss Herbert Bauer. And Vöslauer boss Birgit Aichinger “fills about 25,000 hectoliters a day, which is about twice as much as normal”.
The mineral water industry is clearly one of the main beneficiaries of the heat wave of recent weeks. But that is also necessary, because the business has not really bubbled up for years. In 2020, sales dried up due to the corona (closed pubs, no tourists) by almost 100 million to 644 million litres, consumption per capita fell immediately from over 90 to 80 liters and has since recovered only slightly to 84 liters (see graph).
The cool spring this year didn’t help either, “so I don’t think we’ll reach 2019 levels this year,” Aichinger says. In addition, due to inflation, consumers are watching their money, private label brands will likely account for more than 30 percent of sales.
And branded water is also thrown away, in the food trade about 70 percent of the turnover consists of promotions – this year, instead of discounts, it is more about “1 + 1” offers, says Starzinger director Patrick Moser (Frankenmarkter, Long Life etc.). No one in the industry really believes that the current discussion about artificial sweeteners will at least lead more customers of light lemonades to them.
No wonder all bottlers are looking for new sources for better margins. The trend to add vitamins and minerals is therefore increasing. Vöslauer brought sports drinks with caffeine or magnesium (Aichinger: “That is also a big problem for women”), Waldquelle manager Stanek has three waters in cans that should strengthen or revitalize the immune system “and we are working on further innovations”.
“Consumers want variety”
The tin is actually a second recognizable trend. Römerquellle now also offers its Emotion Line in cans. Starzinger boss Moser recently even put normal Frankenmarkter minerals on the shelves like this. “This is common practice internationally, partly because PET is banned there, the can is easily recyclable. We are now also trying this as a test in Austria, the consumer wants variety.”
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
