Innovation in the beverage industry

1. Innovation in the beverage industry Global Water & Beverage Technology Congress - Dubai Mariam jarrar Consultant, Middle east, NORTH AFRICA AND turkey 2011 November

2. INNOVATION IN THE BEVERAGE INDUSTRY OBJECTIVES Who is Euromonitor International the GLOBAL beverage industry global drivers for innovation KEY LEARNINGS Q & A

3. Innovation in the beverage industry Who is Euromonitor International • A global strategic market intelligence source for almost 40 years • Helping clients make informed decisions • Consumer-focused: industries, countries, consumers • Annually-updated syndicated research in 80 countries • Customised ad-hoc projects conducted globally in virtually every market • 800+ analysts in 80 countries • Regional research hubs and industry specialist support teams

4. INNOVATION IN THE BEVERAGE INDUSTRY Who is Euromonitor International the GLOBAL beverage industry global drivers for innovation KEY LEARNINGS Q & A

5. Innovation in the beverage industry Global sales by region and beverage type 445 bn litres 445 bn litres 2010 Off-trade volume mn litres 445 bn litres

6. Innovation in the beverage industry How much did we drink in 2010? Off trade volume 2010 litres per capita In 2010, 445 billion litres of soft drinks were sold globally which equates to 65 litres per head!

7. Innovation in the beverage industry what do we drink most, WHERE IN THE WORLD? Off trade volume 2010 litres per capita

8. INNOVATION IN THE BEVERAGE INDUSTRY Who is Euromonitor International the GLOBAL beverage industry global drivers for innovation KEY LEARNINGS Q & A

9. Innovation in the beverage industry What drives innovation globally? Economising Drivers for Innovation Packaging Sustainability Health and Wellness Premiumisation

10. Innovation in the beverage industry Health-positioned beverage trend a double-edged sword Consumer interest in health and well-being is creating strong volume growth opportunities • Al Ain: vitamin enhanced water (Wow) • The Berry Company, UK imported • Masafi: focusing on 100% juice • Powerhorse: energy Cola drink

11. Innovation in the beverage industry FUNCTIONAL drinks outpace GLOBAL soft drinks Percentage Growth Off trade volume growth 2010-2015

12. Innovation in the beverage industry Economising, Value for money Global private label share is on the rise

13. Innovation in the beverage industry Economising, value for money Bulk size beverage launches appeal to cost-conscious Argentina 3-litre HDPE bottle in juice drinks February 2009 Citric Chey’s launch follows a successful 3-litre launch in 100% juice and serves to take share from the liquid carton’s monopoly position. Canada 3.8-litre PET bottle launched in juices August 2010 Fruitopia is a well-known brand from The Coca-Cola Co and considered to do well following a trend in Canada towards juices retailed in economically-priced, larger bottle sizes.

14. Innovation – Finding a niche in the market Innovation in the beverage industry Identifying the emerging demographic in the UAE

15. Innovation – Visual Differentiation Innovation in the beverage industry

16. INNOVATION IN THE BEVERAGE INDUSTRY Who is Euromonitor International the GLOBAL beverage industry global drivers for innovation KEY LEARNINGS Q & A

17. Future GROWTH PROSPECTS Innovation in the beverage industry Percentage Growth 2010-2015 Off-trade volume growth

18. KEY LEARNINGS Innovation in the beverage industry • Shift towards health and wellness • Emphasise unique ingredients • Look for a niche in the market: find new usage occasions

19. Thank you FOR LISTENING Any questions? Mariam Jarrar Consultant, Middle East, North Africa and Turkey mariam.jarrar@euromonitor.com Euromonitor International - Dubai F- Wing Office 606-607Dubai Silicon Oasis (HQ)