The UK Water Cooler Industry Faces the Challenge of Increased Competition in 2006

Research and Markets (researchandmarkets.com/reports/c35565) has announced the addition of the Zenith International latest report: UK Water Coolers 2006 to their offering.

Dublin (PRWEB) April 13, 2006 -- Research and Markets (http://www.researchandmarkets.com/reports/c35565) has announced the addition of the Zenith International latest report: UK Water Coolers 2006 to their offering.

All UK water cooler industry operators are facing challenges in 2006. Competition has intensified and customers are increasingly placing tough demands in terms of their pricing and service expectations. Meanwhile, the competition from mains-fed point of use (POU) coolers continues to take its toll. Yet, with a strong purity positioning, the outlook for the bottled water cooler does remain promising. Small to medium sized offices are a notable growth area. As the UK water cooler industry enters a new phase of development, Zenith’s latest report remains the definitive resource for all industry players.

After consistently showing strong double digit growth rates in both unit and volume terms for well over a decade, 2004 and 2005 have represented a turning point for the UK water cooler market. 2005 saw UK water cooler volumes remain static on 435 million litres, with cooler unit numbers declining to 520,000 units – the first year in the industry’s history that a unit decline has been recorded.

A significant factor in the change of fortunes for bottled water coolers was the particularly poor summer weather of 2004 and the average summer of 2005, both of which came in stark contrast to the record temperatures and spectacular growth experienced in 2003.

The UK water cooler industry has also experienced a shakeout, with the leading cooler distributors Nestlé Waters Powwow and Eden Springs UK prioritising profitable accounts and therefore abandoning a number of smaller, less profitable customers. The UK’s small and medium sized distributors (typically regional operators) have thus benefited – gaining those accounts deemed less attractive by the market leaders. Smaller UK cooler operators have also tended to be more flexible and have gained those accounts that the major operators have found it difficult to service effectively.

The challenge posed by plumbed in POU coolers remains a key issue, as does the elusive in-home segment, ensuring that the UK cooler industry remains one to watch closely. As consolidation, price pressures and distribution challenges remain ongoing industry themes – 2006 looks set to be yet another interesting year.

Zenith International reports offer you the most reliable market figures and in-depth analysis of trends. This comes from a bottom up approach to the research process, and detailed discussions undertaken with industry players.

For more information visit http://www.researchandmarkets.com/reports/c35565

Source: Jain PharmBiotech

Laura Wood
Senior Manager
Research and Markets
Fax: +353 1 4100 980

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