MILAN, May 17 (Class Editori) – San Pellegrino, which belongs to the Swiss Nestlé group, leading company in the mineral water and non-alcoholic soft drinks sector, continues to stack up record performance on international markets, with a turnover of €529 millions in 2018 accounted for 56.9% of total revenue, 928 million euros, an increase of 4% in value as compared with the previous year.
International brands drove the Group's performance with San Pellegrino and Acqua Panna mineral waters, which grew by 6% and 10% respectively.
China, along with Europe and the United States, was the most growing market last year, at a rate of 18%, like German, and a little below France (19%) and the United Kingdom (25%), while the average growth on international markets was of 8%.
The mineral water boom in China is nothing new. Toasting with sparkling water causes an increase in sales of mineral water. In 2017 the consumption of mineral water reached 40 billion liters per year, almost thirteen times more than in 1998, according to a study carried out by Canadean, a specialized research institute.
In the last decade, bottled water has acquired a 42% market share and considering that per capita consumption is around 30 liters per year, it's easy to picture the extent to which bottled water is destined to take hold increasingly in the consumption of China, already the first country in number of consumers and producers of bottled water.
Tibet glaciers are considered the new premium water factory. Last year, the Tibetan government granted authorization to 28 companies to increase the province's bottling capacity by 50 times within 2020. By 2025, the authorities will create a $6.3 billion industry that will bottle up to 10 million cubic meters of water, clearly exceeding the over 153,000 bottled in 2014.
Along with San Pellegrino, several Italian companies are benefiting from this positive environment, among which bottling plant manufacturers.
The water factory situated at 4,300 meters was installed by the SMI Group, one of the largest manufacturers of bottling plants and packaging machines in the world collecting 5100 water, which flows from the Dongziong spring and is sold by Tibet Glacer Mineral Water.
The frontier of mineral water in China is not limited to Tibet but also includes the Made in Italy designer bottles, enjoyed by the upper class, that looks to foreign products as a status symbol. This market is anything but small, especially if combined with what will inevitably come from the baby boom following the repeal of the one-child law.
Based on these forecasts, Acqua Sant'Anna di Vinadio, whose plants are based in the province of Cuneo and was one of the Italian market leaders in 2015, signed two agreements on the selling of natural and sparkling water in 1.5 and 0.5 liters bottles, in two of the main retailers' brands, Metro, with 80 stores in China and planning to double by 2020, and City Super, specializing in premium products, 85% of which are imported.
The entrance in the largest market in the world, in which were already sold 20 million Sant'Anna bottles, was worth 6 million euros. Michele Brero, owner of the brand situated in Pian della Mussa (Piedmont), at an altitude of 1,500 meters, was equipped to ship 62,000 bottles to China.
Norda, the fourth Italian group in the sector competing with San Pellegrino, has initiated contacts with a few customers in the childhood segment where it operates under the Sangemini brand. Togni group, based in Serra San Quirico (Ancona), is among the first 10 leading groups in Italy, owned by the Frasassi brand, selling 280 million pet and glass bottles a year. The company is focusing on increasing the production of mineral water extracted from its two springs through the investment of 5 million euros.
(Source:Class Editori)
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