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FoodBev Media

FoodBev Media

15 September 2005

Nestlé Waters’ Kékkúti on securing status

Nestlé Waters’ Kékkúti on securing status

As in any rapidly developing market, the challenge to attain and maintain the top slot produces intense competition. While Szentkirályi claims to have risen quickly to number one, rival market leader Nestlé Waters’ Kékkúti believes otherwise. While the numbers contradict, Kékkúti has plans to ensure its position is secure. The bottled water market in Hungary has changed a great deal in recent years, with the private label sector rapidly gaining ground. This has led to a strong reaction from the major players - from competitive pricing structures to major television and outdoor advertising initiatives and product redesigns. At the forefront of this response to market change is Nestlé Waters’ Kékkúti. “Although the Hungarian mineral water market experienced some unfavourable changes last year, Kékkúti managed to remain strong,“ commented Kékkúti Marketing Director Noémi Csete. “Not only did the company succeed in holding market leader position in take home by reaching 13.2% in volume and 19.2% in value shares, but Theodora was also the most efficient player on the market." The brand reached 11.4% volume and 16.5% value share. According to ACNielsen, it also held its number one position in the horeca segment with 35.4% volume share. “The company’s other brand Nestlé Aquarel was launched in 2002 and has been gaining reputation among consumers ever since. According to ACNielsen, the spring water doubled its market share since January 2005 reaching 3.8% in April. Aquarel is sold as being suitable for the whole family, with a quality guaranteed by Nestlé standards and an acceptable price.“ Talking specifically about the recently revamped packaging for the Theodora range, Ms Csete added: “The Hungarian mineral water market has become highly fragmented, with many new competitors. We cannot afford to wait and see. We are constantly monitoring consumers’ needs and try to do the best we can to meet their expectations. “We launched the Theodora campaign with press, television and billboard support to increase sales activity. As well as celebrating the redesign, the main messages include the brand’s heritage and the vitality Theodora gives the human body each day” A seasonal label for the horeca sector on 33cl returnable bottles is a new move for Theodora. As for Nestlé Aquarel, a new 25cl litre bottle was launched in March 2005 for horeca distribution. “Hungarian mineral water consumption has increased rapidly in the last couple of years – reaching over 60 litres per person each year. “With the help of our carefully planned marketing activity, we will do our best to keep Theodora as a trusted brand in consumers’ minds. In a survey last year by TNS 2004, 94% of consumers knew the brand. It is the best known and most often consumed mineral water on the market,” continued Ms Csete. “Quality has never been an issue for Theodora and Aquarel. These waters derive from the Káli Basin, one of the most beautiful and harmonious landscapes in Hungary and home to the perfectly reserved Balaton Upland National Park. Both versions are bottled carefully on site without spoiling the balanced mineral water and trace element composition. “Kékkúti has recently opened an eight kilometre long educational Theodora trail through the Káli basin, with 15 information stations on the region’s natural resources and water base.” Theodora was recently selected as the ’Most Trusted Brand’ in the mineral water and soft drink category by Reader’s Digest subscribers for the second time and also won Superbrand status - awarded by communication professionals to brands with strong consumer trust. * Hungary for success?* With a steadily improving economy and consumers spending proportionally more on luxury goods and eating out, the challenge presented to the established bottlers by discounters and private label has created a vibrant and exciting market, with two players battling for the number one slot and others keen to catch up.

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