The document discusses bottled water pricing trends in Canada. It notes that bottled water is now the top beverage in the US and healthy alternative to sugary drinks. However, bottled water margins have become thin as retailers lower case pack prices to drive traffic. The document suggests leveraging the growth in bottled water to increase profits and balancing pricing with shopper expectations and occasion packs.

1. Presentation Subtitle
Presentation Title

2. Let’s Move Campaign
NYC establishes “supersized” sugary drink ban
#1
Bottled water will
be the beverage in
the US in 2016
Healthy beverages like bottled
water are now a key solution
to the US health crisis
X.X
Million
new bottled water
consumers in the
past year
markets in the US
of bottled water
already outsells
carbonated soft drinks
The future is NOW!
X

3. A History of Bottled Water Case Pack Pricing - Canada
US Shoppers say
“$X.XX
is a good price
for a case of
bottled water!”
PROFITABILITY
Bottled water no longer
used as an affordable
traffic driver. Category
Margins become anemic.
Retailer A does not want to be beat.
Begins to offer $X.XX case packs
Retailer B needs to go lower to drive
traffic, features case pack for $X.XX
Factory sends the same
case pack to every retailer.
Retailer B begins to offer $X.XX case
pack pricing to drive traffic. DETOUR

4. Price points $X.XX/Case
$X.XX
What do you think is a good price
for a case of store brand bottled water?
$X.XX
What do you think is a good price
for a case of bottled water?
$X.XX
What do you think is an average price
for a case of bottled water?

5. The scale of bottled
water will be huge
Leverage the inherent growth in the
bottled water category to help drive
both topline and bottom
line growth.
Consider the end game
Leverage Nestlé Waters global
expertise to help keep category profits
healthy and growing.
Let the shopper
be your guide
Bottled water already offers a significant value
VS other beverages. Are you leaving money on
the table when you price significantly below
your shoppers’ expectations?
Keep your category in balance
Branded bottled water and occasion
packs can help balance your penny
profit & margins.