The Bottled Water Battle in Canada
The Bottled Water Battle in Canada The general consensus of the Canadian producers of bottled water is that dramatic yearly sales increases can be expected as health and status conscious consumers turn away from soft drinks and other beverages. The market has been showing good growth with sales increasing 10% each year since 1980. The sales of imported bottled water are increasing at 25% per year. This phenomenal success is creating a new segment in the Canadian soft drink market and, with total sales of over $25 million annually, nu- companies are entering the bottled water market—once the domain of Perrier, bottled by Great Waters of France, Inc. Bottled water, sometimes referred to as mineral water, is a drink usually obtained from wells or springs noted for their mineral content. For example, Perrier is a naturally carbonated spring water with small bubbles and a distinct flavor when compared with competing products which may be charged with machine-made carbon dioxide. Prices range from about $1.20 to over $2.00 per litre. At least 40 brands of bottled water are now competing in the Canadian market, including imported brands such as Apollinaris (Germany), Vichy (France), Poland Spring Water (United States), Evian (France), Ramlosa (Sweden), and, of course Perrier (France). Domes-tic brands include Mont Clair (sold by Allan Beverages), Mont Blanc (sold by Canada Dry), Crystal Springs (a division of Nestle Enterprises Ltd.) and Madawaska Springs (an independent). The latest companies to enter the `fray are Coca-Cola (with Avignon) and Pepsi-Cola (with Esprit). The strategies of Perrier, the leader, and the three main competitors—Mont Clair, Avignon, and Esprit—illustrate the intensity of the bottled water battle in Canada.

Currently, Perrier is the dominant figure in the market. In the U.S., Perrier sales skyrocketed from $1 million to $80 million per year then declined somewhat. In Canada, Perrier is distributed by Crush International, a company that was chosen because of its experience in selling and distributing soft drinks and mixes in a variety of markets. Perriers past sales success was based on a carefully planned and executed strategy which involves a product sold at a premium price, backed with heavy advertising. Perrier designed a national advertising campaign to persuade Canadians other than Quebeckers, whose consumption has been three million bottles per year, that drinking Perrier was both chic and healthy. The campaign was aimed at Ontario, which was seen as a huge untapped market. Perrier was positioned as a healthful alternative to soft drinks or alcoholic beverages, and as a product that was bought by affluent, young, active, “with-it” adults and those who emulated this market. The goal was to wean Canadians away from their taste for sugary thirst-quenchers and to persuade them that mineral water is an acceptable alternative even at more than twice the supermarket price of the average soft drink. The distinctively shaped, green-tinted bottle, the attractive label, the premium price, and the advertising all combined to play on snob appeal and create an elitist image. Past advertising had included ads in highfash-ion womens magazines and TV commercials narrated by Orson Welles. In Perriers new efforts to mass-market their product, the distribution emphasis has shifted from gourmet shops to the soft-drink sections of supermarkets. In this new environment, price competition runs rampant, shelf and special display space demands are severe, and costly promotions and trade allowances are essential. Mont Clair bottled by Allan Beverages, a division of Nestle, has emerged as the Canadian contender in the bottled water market in Canada. Raymond Jobin, the Vice-President of Allan Beverages, considers that the “sky is the limit” for the industry. He feels the keys to success for adoeptance for a Canadian product are:

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Domain Of Perrier And Bottled Water Battle. (July 2, 2021). Retrieved from https://www.freeessays.education/domain-of-perrier-and-bottled-water-battle-essay/