Dive Brief:
- Nestle Waters North America is continuing to roll out its ReadyRefresh delivery service, adding a 25,000-square-foot distribution center in Atlanta, according to Food Bev Media. The Atlanta branch will distribute a variety of Nestle-owned bottled water and beverage products.
- ReadyRefresh allows consumers and small and large businesses to order deliveries of brands like Poland Spring, Nestle Pure Life, Perrier Water, San Pellegrino and Nestea. They can also select a variety of beverage dispensers and accessories.
- “We’re particularly pleased to expand our operations into Atlanta, one of the fastest growing cities in the country and a market we’ve wanted to service for quite some time. We know that our customers here are looking for simple ways to maintain a healthy lifestyle, and convenient delivery of our many beverage choices helps them do just that," ReadyRefresh by Nestle Executive Vice President Henrik Jelert told Food Bev Media.
Dive Insight:
Nestle Waters North America has also expanded in Sacramento, California as part of its efforts to make its delivery services more widely available across the country. Last month, it announced it would build a 10,000-square-foot distribution branch in Denver.
“This is a pivotal time for our business as we work to meet fast-growing demand for our bottled water and iced tea brands across the counter,” Jelert told Food Bev Media.
The move reflects the growing power of the bottled water category, which topped carbonated soft drinks last year to become the largest beverage category in volume in the U.S. In 2016, total bottled water volume increased from 11.8 billion gallons in 2015 to 12.8 billion gallons, growth of approximately 9%. This also marked the third year in a row of accelerated growth.
This uptick is fueled by two industry trends: waning consumer interest in soda, which is increasingly viewed as an unhealthy option because of high sugar levels and use of artificial sweeteners, and new premium bottled water offerings. Specialty waters with sparkling, mineral and functional applications grew 75% between 2014 and 2016, and will continue to grow at this rate through 2020, according to Mintel.
Mintel also found that more than half of consumers want premium bottled water and are willing to pay more for it. Eighty-three percent of shoppers want water that's enhanced with functional or nutritional benefits, such as herbal mineral waters.
Nestle's convenient delivery service will add another premium element to its brands, as convenience is also a top consumer demand. The beverage manufacturer is also tapping into consumer desire for sustainable bottle applications through the NaturALL Bottle Alliance, a project that uses discarded wood-based products to create bio-based bottle materials. It will be interesting to see how the company continues to innovate in the bottled water space going forward, as competition and pressure to differentiate continue to grow.