Companynews // 01/23/2005

Gerolsteiner 2004: Innovations and export secure leading market position

7 million hectoliters sold in 2004 - total market shows a reduction of 2 percent compared to 2003 - 4,6 percent volume growth planned for 2005 - Team Gerolsteiner is the main pillar of brand communication


Gerolstein, January 23rd 2005. The Gerolsteiner Brunnen GmbH & Co. KG closes the business year 2004 with a satisfactory result. A total of 7 million hectoliters of mineral water and mineral-water-plus-products was sold. The company thus falls short of the record results - that were determined by the record summer - from 2003 by 7,9 percent. It is especially the innovations implemented in the past years as well as exports that are having a stabilizing effect on the development. With a market share of 9,3 percent on a value basis (source: AC Nielsen) market leadership has been firmly maintained.


Proportionately to sales, the 790 company employees managed to achieve a net turnover of 198 million Euro. In export trade, Gerolsteiner achieved a growth of 5,4 percent, reaching 245.000 hectoliters.


All in all, water sales in Germany went down by 2 percent compared to 2003. Sales winners in the year 2004 were the discounters. They registered an increase of 40 percent.


Jörg Croseck, spokesman of the executive board: "the market for mineral water is influenced strongly by the consumer's growing acceptance of discounters as sales sites and thus the acceptance of products in disposable packaging. Together with the traditional distributive trade, we - as a brand name company - are required to offer a consumer solution that is superior to the discounters."


The innovations-campaign launched by Gerolsteiner in 2003 had a noticeable effect on the company's sales and turnover in the past business year. The non-carbonated mineral water Gerolsteiner Naturell, Gerolsteiner Office Line and Gerolsteiner Apfelschorle, introduced in 2004 in the 0.75 liter PET reusable bottle, managed an over-all sales share of 10.6 percent.

The strategy adopted regarding the Gerolsteiner brand by the advisory board is clearly stipulated: growth through further innovations in products and packaging for the export market.


"Our target for 2005 is a volume growth of 4.6 percent. Part of this growth will be achieved by new innovative products that are as yet not available on the German market. We will thus live up to our pioneering role as market leader and significantly increase our independence from the traditional mineral water market", says Croseck. "Regarding the development of new potential, we refuse to be dependent on the market by actively influencing the development."


The cycling team Team Gerolsteiner again plays a very special part in the brand communication of 2005. "32 race victories, the participation in the Tour de France, and the third place in the world rankings have caused an immensely positive reaction in the media and amongst the consumers. Besides the usual communication, the team has become the second major pillar of our brand communication."


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Gerolsteiner Brunnen GmbH & Co. KG

Anke Krüger

Corporate Communications


54567 Gerolstein/Germany

Phone: +49 (0) 6591 14 237

Fax: +49 (0) 6591 14 249