With an overall brand share of 8.6%, Perthshire-based Highland Spring retained its position as the No 2 brand in the UK market against fierce competition from global brands. The company’s sparkling range, which outsells its nearest competitor 3:1 by volume, and kids’ water brand maintained their leading positions throughout 2009.
The substantial increase in profit was down to a number of factors: a better summer than 2008 combined with an impactful sales and marketing programme. Since 2009, there has been a growing trend for people buying more British brands such as Highland Spring. The sales team was restructured to capitalise on new market opportunities and a dedicated customer marketing team was established to meet the increasingly complex requirements of trade customers.
Les Montgomery, chief executive of Highland Spring, said: “The results are clear evidence that the strategy we have adopted of developing the Highland Spring brand is being rewarded. 2009 saw strong market recovery, with Highland Spring’s value growth considerably ahead of the market, up 4.8%.
“The increase in sales and profits is testimony to the hard work of all the employees throughout 2009.
“The marketplace is extremely competitive, but we’re now uniquely placed to continue to our offer our customers and consumers excellence in both quality and value for money. It’s all about achieving the balance between continued growth and profitability while satisfying the changing needs of our consumers.
“The group’s investment programme continues, with £2m committed over the 12-month period to increasing the capacity and production capability.”
Commenting on 2010 and future outlook, Montgomery continued: “The acquisition of the Greencore bottled water division in March 2010 (£15.5m) has enabled two new modern bottling facilities in Wales and Scotland to be integrated into the company. Operating predominantly in the private label sector, the acquired businesses will enable Highland Spring to provide a complete offering across the water category, including flavoured water.
“With annual sales of 350m litres, the group is now the leading supplier of bottled water in the UK and is well placed to achieve our medium-term vision of becoming a £100m turnover and 500m-litre business.
“Environmental sustainability is core to our business strategy, and the group has a proven track record in areas of sustainability, packaging and environmental performance with numerous awards, audits and accreditations achieved. The company has also just been awarded Ethical Company Accreditation for a fifth straight year by the Good Shopping Guide.”
Source: Highland Spring
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