Bottled water companies are driving growth through investments in existing bottling lines and new segments as new entrants crowd the market.
While the Abu Dhabi-based Agthia, which markets the Al Ain and Alpin water brands in the UAE, is investing about Dh70 million to double its capacity, the Dubai-based Masafi has started manufacturing a new sparkling juice, diversifying its products range.
Agthia will add 44 per cent capacity at its Al Ain factory by the middle of next year to feed its markets in the UAE, man, Qatar and Kuwait. Its capacity is 52 million cases a year.
Al Ain Water brand has 23 per cent of the market share in terms of volume in the UAE.
The UAE has about 160 water companies, according to Fasahat Beg, the executive vice president for the consumer business section at Agthia.
While the Al Ain water brand is 25 years old, it introduced the Turkish brand Alpin in the first quarter of last year. Water sales contributes 24 per cent of the group’s turnover, up from 17 per cent in 2007. Agthia is doubling the Alpin capacity by end of June to 7 million cases a year at its plant in Turkey.
“While fizzy drinks are not part of the scope right now, we will introduce other flavoured drinks such as iced tea and Al Ain fresh juices in retail markets by the beginning of next year,” Mr Beg said. Al Ain fresh juices are currently only delivered to offices.
Water accounts for quarter of the group’s turnover.
Earlier this month, Masafi said it would enter the carbonated drinks segment with a sparkling juice called Fruitsss at retailers in the Arabian Gulf.
“The water business is a growing sector, with a number of players entering in the market with markedly different offering for the consumers,” said Reginald Randall, the chief executive of Masafi. It already distributes bottled water, flavoured waters and fruit juice.
Fruitsss will be manufactured by Masafi in Saudi Arabia.
The bottled water segment in the UAE is increasingly getting crowded with new entrants such as Mai Dubai from the utility provider Dubai Electricity and Water Authority (Dewa). It started selling its water last year and currently produces 207 million units a year. That will rise to 258 million units in August to supply the UAE market. It expects to export the bottles next year.
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