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Ebac, IPI and Vivreau
FoodBev Media

FoodBev Media

15 December 2007

Ebac, IPI and Vivreau

As another year in the water cooler industry draws to a close, cooler innovation reflects on the year that was and looks ahead to 2008. Will the environment remain top of the agenda? Which geographical and sector markets will be fastest growing? Will new product launches continue to focus on improved and easier methods of sanitisation? And, most importantly, will next summer bring us the hot, dry weather that Western Europe in 2007 didn't.

The questions on everyone's lips might be difficult to answer with absolute certainty, but what you can be sure of at this time of year is the prevalence of the retrospective end of year review. Three water cooler companies tell Deputy Editor Medina Bailey how the past 12 months shaped up and speculate about what 2008 has in store.

Questions

1. How would you sum up 2007? 2. What trends or issues have characterised the cooler industry over the past year? 3. What was your best selling product or highlight? 4. Is there anything you would have done differently over the past 12 months? 5. What is next for your company in 2008? 6. Which issues do you think will be high on next yearís agenda for the cooler industry? 7. What would your one wish for 2008 be?

Answers

Ebac Chairman John Elliot MBE:

  1. "We have seen business startups who have entered the market in the last year achieve phenomenal success, even though the market had been described as static. It has become more competitive, but it has also been an exciting year."

  2. "We have noticed a shift towards POU coolers. Distributors are looking at ways of growing their business and accessing parts of the market they are not already reaching and end customers are looking for a more cost efficient, environmentally friendly and convenient cooler. We have also seen a greater number of smaller customers come to us and tell us they hadnít realised that Ebac was accessible to them as they were purchasing lower volumes, now they know differently! We have worked with many smaller companies and been able to give them very competitive prices and our flexible payment terms are designed specifically for smaller firms."

  3. "Without a doubt the FMax has been our best selling product. Our customers have described the FMax as the most complete water cooler ever and we definitely agree. It has many advantages in the bottled cooler market due to its high burst rate, energy efficient hot tank and patented cassette WaterTrail. After its launch earlier this year, the FMax has quickly established itself as a core product within our range and customers such as asNestlé Waters Direct, Dar Natury in Poland, Henniez of Switzerland and Rainbow in Greece all offer the model to their clients. The FMax represents 30% of our new business which has been an incredible achievement for a product which was launched less than a year ago."

  4. "I think we could have helped to change the perception that Ebac coolers are expensive and aimed at larger companies, when in fact the smaller company can reap all the same rewards and benefit from competitive pricing. If we could have changed the weather and made people thirstier we would have done that too."

  5. "We will be launching a new product which is set to revolutionise the POU market. We canít say too much about it yet but it is something that has never been seen before and will take simplicity, hygiene and sanitisation to the next level. An official launch will take place in the spring."

  6. "Definitely the opportunities of the emerging markets - Eastern and continental Europe and Japan. And not forgetting breaking into the home cooler market."

  7. "We work very closely with business startups in this industry and I would wish that they all have a very successful 2008."

International Packaging Innovations (IPI) Vice President of Sales and Marketing Alex Reby:

  1. "For IPI , 2007 was a year of introduction. Purelock, our product that combines the 3 gallon bag of water with the cooler top converter, was introduced to the market in the US in late August and the results have been solid. Our first partner was able to secure over 100 new bottled water and cooler rental accounts in three months by offering the Purelock. While 100 may not be huge, the market this company services is small and those accounts increased total customer base by about 5% in those 90 days. In October, we travelled to Poland for the EBWA show with hopes of meeting bottlers and distributors in the European marketplace that would like to partner with us to offer a unique product to their customers. We believe that it offers convenience to the consumer, is more environmentally friendly than 3 and 5 gallon bottles, and can help improve margins for bottlers."

  2. "Sanitisation, the environment and the reliability of the cooler and its parts."

  3. "Purelock. Our highlights have been contracting with two US bottlers this year, with two more American and one international one in the pipeline. The EBWA show introduced us to numerous bottlers in Europe and we look forward to partnering with them to launch the product overseas. We also won the cooler innovation award for "Best New Cooler Product" in 2007. That was definitely a highlight!"

  4. "The product was launched as a test programme in the US with the aim of determining customer reactions to the new package and find out how easy it would be to incorporate Purelock into existing routes from a logistical standpoint. Consumers reported that they would like to see the bags tinted or feature labelling. If we could do it all over again, we would have completed the package before introduction. The good news is that 82% of new consumers preferred Purelock and the converter to their existing bottles, and thatís with no aesthetics or labelling, so we anticipate that that number will rise."

  5. "We are opening operations with bottling partners in several US states and internationally, as well as seeking European partners and believe that the benefits of carrying Purelock will truly enhance the businesses."

  6. "Environmental impact and reliability are likely to be continuing trends."

  7. "From a business prospective, to sign agreements with 10 to 12 new partners to produce and distribute Purelock in their areas."

Vivreau Managing Director Stephen Charles:

  1. "2007 has been a fantastic year for Vivreau. Our research and development team have pulled out all the stops to enable us to launch two new ranges of systems, VR3000 and V20. The VR3000 has opened up the vending market, enabling distributors and vending companies to offer Vivreau to their clients. The response we have received from the trial units and test marketing has been beyond our expectations and we are feeling extremely positive about the future of this product. "Effectively completing the jigsaw with the V20, we can now offer a complete range of innovative still, sparkling and hot water systems for the whole spectrum of environments, meeting the expectations and demands of clients in any public and private industry sector. We have once again had an exceptional year with our direct sales business and are proud to say that we now supply to approximately 60% of the top 100 UK companies."

  2. "Environmental issues have been a key factor. World economy issues will always dictate the budgets of our clients, so cost factors continued to be an issue, although Vivreau clients usually accept that it is worth spending a little more for a high quality product and superior after sales service."

  3. "If I were to pick one product, it would most certainly be our Table Water Bottling system. Although it will never be our highest volume seller, as customers tend not to install more than one or two systems in a building, it is the perfect product in the current climate where companies are looking at their carbon footprints and other green initiatives."What has been so refreshing for us is that when we designed the whole concept of the system 17 years ago, our product was dismissed by the industry and the media as just a cheap imitation of mineral water. Finally the media, business and the general public have come to realise that we are not just a 'bunch of green eco warriors'. The demand for our bottling system has escalated and although there are a couple of other alternative systems on the market, none of them are able to match the quality, reliability and efficiency of ours."We are not complacent, however, and through investing in research and development, efficient budgeting and a well structured marketing plan, we aim to maintain our market leading position in the industry."

  4. "Even with the benefit of hindsight, I do not think we would have done things particularly differently. Vivreau has always been about the more cautious approach ensuring that everything we do enables us to provide a high quality product and service."

  5. "Now the technical development team have done their bit with the VR3000 and V20, it is now down to the sales team to realise the huge potential of these products and I am confident that they will achieve our goals. "We have also appointed a distributor for the Irish market and are looking forward to replicating the success we have in the UK right across Ireland. We will be exhibiting at Hospitality Ireland in Dublin in February where we will be officially launching Vivreau Ireland."

  6. "The trend for more environmentally products is increasing on a daily basis and I think our industry, as with most industries, will be under more and more pressure to take these issues more seriously, not only from the government but also from the private sector. Our corporate clients are demanding greater accountability and suppliers will have to be seen to be demonstrating their green credentials for their own companies, in addition to just offering clients more environmentally friendly solutions. Rest assured that, as in the past, we will be at the forefront of future developments in this area."

  7. "A more tolerant world would be a refreshing start and a better return from my Paddy Power account would always be nice!"

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