Cheap products, such as table or spring water, are the biggestthreat to the mineral water industry, valued at around 300m euros,say bottlers.
Production at mineral water sources dropped by 9% in the first halfagainst a year ago as part of consumers shifted to the low-pricesegment, that of mineral-free water.
The flood of cheap products on stores' water shelves is forcingmineral water producers to boost the number of promotional offersand bet on large packaging, of 5-6 litres.
Companies' representatives estimate the market contracted by 15% involume in the first six months of this year from a year ago and saythat it is only large packaging, of above 2 litres, which stillbrought them sales increases in 2010.
"I do not believe that the water sales advance generated by thehigh temperatures of August will offset the volume declines of thefirst half. I expect the mineral water industry to fall by 9-10%,even more, in 2010" maintains Becsi Zsolt, Apemin Tuşnad CEO.
In his turn, Cristian Şerban, Rio Bucovina CEO, projects flat watersales against 2009 for his company, with the best scenarioincluding slight growth, of several percentage points.
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