The study also reveals that 70 per cent of these were electric water cooler machines and 30 per cent were ceramic dispensers and pumps. At over 700 million litres, sales through coolers have risen to 8 per cent of total bottled water consumption, compared with just 4 per cent in 1999.
Poland remains the leading country with a 46 per cent volume share, followed by Russia on 30 per cent. Then there is a substantial gap before reaching the Czech Republic and Ukraine at 5 per cent and 4 per cent respectively. Romania and Croatia continue to impress, growing the fastest since 2002. Both countries surged in 2003 achieving 5th and 6th places in the East Europe market as a whole.
Major players Danone and Nestlé Waters proved that their engagement with the region aims for the long-term. Eden Springs, which acquired Rent a Cooler operations in the Baltic States and Ukrainian Springs in 2001, is now part of Danone. In February 2003, Nestlé Waters established itself firmly as the Russian and Eastern European number one water cooler operator through the acquisition of ClearWater Moscow, which was added to Saint Springs and its lead in Poland.
"Although the market leader Poland is approaching maturity, experiencing a slowdown in growth in the last couple of years, other and much younger markets such as Croatia and Romania are growing rapidly. This has a great impact on overall growth in the region," commented Zenith research director Gary Roethenbaugh. "European Union enlargement opens a new window of opportunity for water cooler distributors across Europe, encouraging the setting up of subsidiaries in neighbouring countries. Thus East European bottled water cooler industry potential is far from realised yet."
Zenith's forecasts anticipate cooler numbers at 1.8 million units by 2008, with the majority of new placements coming from electric cooler machines. On this basis, sales through coolers should pass the 1 billion litre mark in 2006, reaching 1.4 billion litres by 2008.
The 2004 Zenith Report on East Europe Water Coolers contains 253 pages with 25 overview tables and charts, regional analysis, 15 detailed country profiles, 72 company profiles, full market analysis and commentary. For further details contact Zenith International.