Nestle to fight for leading position on water market

2010-09-06

Nestle Waters Polska, a producer of bottled water under the Naleczowianka name, is planning to lead the field on the water market in Poland. At present, the company has a 10% market share in terms of value, whereas Zywiec Zdroj, which belongs to Danone, accounts for 30%, giving it the leading position in Poland. Within two years Nestle intends to acquire more than 12% of the market. The company’s strategy is to compete with Zywiec Zdroj and Kropla Beskidu, which is owned by Coca-Cola. With regard to budget bottled water, Nestle's plans include the expansion of its Nestle Aquarel brand, which will rival the Cisowianka brand, owned by Polskie Zdroje. In addition to organic growth, Nestle also plans to develop by means of acquisitions and is considering the establishment of a joint venture. However, the details of these plans have not yet been disclosed. Demand for bottled water is growing rapidly in Poland. In June and July 2010, consumption increased substantially year on year. Nestle Waters Polska estimates that in 2010 the value of the market, which, according to the Nielsen data, was worth PLN 2.5bn (€625m) in 2009, will increase by 15% year on year. The market is also expected to consolidate. At present, there are around 200 water brands in Poland and there will eventually be 20 large players operating on the Polish market.