Companynews // 02/26/2007

Gerolsteiner grows faster

Press release 2007

Gerolstein, 02/01/2007. With 7.1 million hectoliters of mineral water and mineral-water-plus products - converted to bottles that makes 832 million bottles - the Gerolsteiner Brunnen GmbH & Co.KG managed to increase sales by 5.3 percent compared to 2005. Disproportionately, the company's employees generated a net goods turnover of 208.8 million euro - that is an increase of 7.7 percent. After two regressive years, Gerolsteiner has thus again managed to surpass the 7 million hectoliter mark, which was last reached in 2004. At the same time the company managed to outperform the turnover development in the industry, which reports a growth of 4.4 percent. (Source: AC Nielsen, December 2006)

The success is due to the product introductions since 2004: while core business with the mineral water products Gerolsteiner Sprudel, Gerolsteiner Stille Quelle Medium, Naturell and St.Gero health water shows a slight growth of two percent, the new products show a market share increase of over 70 percent. Growth winner is Gerolsteiner Fit, with a doubling of sales. Jörg Croseck, speaker of the Gerolsteiner executive board : "Under difficult market conditions we have managed to pull off a coup due to our product and packaging innovations. The market continues growing foremost due to cheap bargain offers. Our above average turnover growth proves that the consumer is willing to spend more for added value."

On average, every eighth German drank Gerolsteiner in 2006. Added to that, Gerolsteiner is reaching new consumer groups through its innovations.

Gerolsteiner's range of products reached twelve percent of consumers of non-alcoholic beverages in Germany (Source: GfK). In 2005 the level was only slightly above 8 percent. This means that - on average - every eighth German chose to buy the brand Gerolsteiner when buying mineral water or a mineral water based soft drink.

Increases are also registered in the national gastronomy business (plus 7.4 percent) and in export (plus 1.9 percent). In 2006 the markets of 12 new countries were opened up. Besides the Baltic states, the brand Gerolsteiner has also been on the Japanese market since last year. With a total of 34 countries worldwide, Gerolsteiner remains the leading German export mineral water.


Growth plans 2007: Further investments and establishing a new beverage category.

In 2007 further growth is to be ensured through investments in new products and technology: after 10.5 million euro in 2006, Gerolsteiner is planning to invest 24.5 million euro in the expansion of bottling capacities and the conversion of existing facilities. "With a vitality-drink based on natural ingredients, Gerolsteiner aims to establish a completely new product category on the German market", Croseck announces the next product innovation. "The product is consistently geared toward consumer demands." Targeted launch date of the innovative product concept is June 2007. "Gerolsteiner's executive board is consistently implementing the conversion from mineral water specialist to supplier of natural non-alcoholic beverages, which was decided on together with the advisory council", says Dr. Michael Dietzsch, head of the advisory council of the Gerolsteiner Brunnen GmbH & Co.KG .


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