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Australian Beverage Ltd

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Australian Beverages Ltd

1. Identify the industry, product segments and value chain

Industry – Australian bottled water manufacturing industry
Product segments includes stilled water and sparkling water
Value chain –
(upstream) Access to water supply > Manufacturing > Packaging > Distribution > Retailers > Consumers (downstream)

2. Current life cycle position of the industry

Australian bottled water manufacturing industry is at the growth stage of its life cycle. It is evolved out of the soft drink manufacturing industry during the 1990s, hence considered a relatively new industry.
It is the fastest growing category in the non-alcoholic beverage market in Aus in 2011.

Growth is demonstrated that despite from a relatively low base compared to other more established beverages, it shows increase per capita consumption.
This is shown in Table 1 that bottled water growth from 2001 to 2011, increasing significantly from 6.4% in 2001 to 13.3% in 2011 (i.e. a 107.8% increase over the period). It is also projected to increase by 30.8% from 2011 to 2016.

Despite having Energy drink, ready to drink tea/coffee, sports drinks and milk drinks are also experiencing growth; however bottled water has the largest market share of all the other growing non-alcoholic beverages.

A recent report by Global Earth Policy Institute shows that global consumption water rose 56.8% to 164 billion litres from 2007 to 2011.

Australians consumed 963 million litres of bottled water, is lower comparison to the top 10 global bottled water consuming countries. When comparison is made to similar markets, Australia still has the potential for a higher rate of consumption and sales growth before it reaches maturity.

It is evidenced by the fact that major competitors tends to dominate one or two distribution channels only, which shows that there are…...

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