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Nestle Waters Retail Leadership Forum
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.
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Nestle Waters Retail Leadership Forum
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- 2. Let’s Move Campaign NYCestablishes “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 ofBottled 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 Whatdo 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 ofbottled 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.