Coca-Cola Amatil is seeing improved bottled water sales and market share in the year’s first six months.
The Australian Financial Review reports that a trend of declining carbonated soft drinks is continuing overall. CCA saw a 3 per cent decline in volume for the six months to June. Coke’s bottled water offset this, jumping 34 per cent.
The company is beginning to win back bottled water market share from Asahi/Schweppes and discount supermarket brands. According to Citigroup, CCA claimed over 10 per cent of this in the year’s first-half, up from eight per cent last year.
Bottled water makes high margins, though is under a fifth of the company’s total revenues. It has become increasingly important as supermarkets discount soft drinks and consumers drink less overall.
According to Retail World figures, carbonated soft drinks have been losing “share of throat” to bottled water from 2008 onward.
CCA will release its June-half results on August 26. Analysts are predicting a 1.4 per cent increase in net profit to $190 million.