Companynews // 01/21/2010

Gerolsteiner extends its leading position amongst brand name quality waters

Sales trend better than the market trend


Gerolstein, 01/21/2010. With a market share of 15.5 percent, Gerolsteiner remains the leading mineral water brand in the price segment over 0.40 € per liters (Nielsen, per December 2009). With this result, Gerolsteiner is able to further consolidate its market leadership amongst premium quality water brands, which make up 49 percent of the total market.

"For consumers it is increasingly the criteria of quality that influences the purchasing decision. In line with our quality strategy, we are trusting in the quality of our products - purposely keeping out of price wars", explains Axel Dahm, head of the executive board of the Gerolsteiner Brunnen GmbH & Co. KG. Due to this, sales have - as planned - fallen by 7 percent to 6 million hectoliters in Gerolsteiner's consolidation year 2009. With a net goods turnover of 185 million euro the decline in sales could however be significantly reduced during the second half of the year following a difficult first half. "Thanks to a consistent price bracket for our entire goods range and to consistent investments in the quality and communications of our products, our sales trend has developed more positively than the market trend", says Dahm.


Information campaign helps to extend quality leadership

Dahm is also pleased with the new communications campaign. "We have managed to achieve the highest popularity in the company's history - which has had a positive effect on business in the second half of the year. Our target for 2010 remains the same: Firmly establishing awareness of Gerolsteiner's superior quality in the consumers' minds and introducing our brand to new customers." Especially the value based segments Gerolsteiner Sprudel and Gerolsteiner Medium have managed to finish above target. Gerolsteiner Naturell managed to maintain its position in the business with re-usable bottles within the highly competitive and heavily discounter-dominated market of non-carbonated mineral water. (GfK, second third 2009). The top-selling products in the segment of mineral water based soft drinks were Gerolsteiner Apples Spritzer, Gerolsteiner Fit and Gerolsteiner Moment.


Gerolsteiner invests in innovations for the gastronomy and commerce Gerolsteiner was also able to extend its market share in away-from-home consumption. While the water market in this business segment has seen a drop in value and amount of almost a third compared to last year (GfK Consumer TrinkTrends, second third 2009), sales remained virtually level in spite of the crisis. Gerolsteiner attaches great importance to the gastronomy and the hotel business, and is thus further investing in this segment. "We believe that sales will increase here", says Dahm in regards to the perspectives. "That is why there are significant innovations planned for the catering trade in 2010. We are additionally investing in new packaging for the food and beverage trade. It will be presented at the Internorga in March."

Gerolsteiner also aims to further develop its international business. "As leading German mineral water exporter we will of course continue promoting the internationalization of the Gerolsteiner brand", says Dahm. "Today Gerolsteiner may already call itself ?The world's most popular sparkling mineral water" (Canadean). With a sales increase of 25 percent, business in Japan is a supporting pillar of success - as is business in the USA and in the Benelux States. "It is our aim to add to this success story by introducing a vending machine bottle - a high volume segment in Japan."



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For further information please contact:

Gerolsteiner Brunnen GmbH & Co. KG

Heike Görres, PR-Manager/Spokeswoman Corporate Communications

Vulkanring - 54567 Gerolstein, Germany

Phone: Germany-(0)6591-14-237 - Fax: Germany-(0)6591-14-249


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