Water Is Getting A New Image (And Taste) From Enhancers

By Isaac Fletcher, contributing writer, Food Online

As health concerns push soft drinks aside, water has gained popularity as a go-to beverage, but many consumers want more from their water and enhancers may provide just the flavor they’re looking for

With consumers increasingly choosing bottled water over carbonated soft drinks, many beverage industry analysts believe that it is destined to become the non-alcoholic beverage of choice. An era of health concerns over diseases linked to obesity has helped push zero-calorie or ultra-low calorie beverages to center stage, but even with rising popularity, there are still some factors staggering the growth of bottled water.

For instance, supermarkets often stock shelves with loss-leading cases of plain bottled water, causing major bottled water brands to realize that competing on the basis of volume and price no longer makes sense. On the consumer side, some people still reject plain bottled water on the basis of its lack of flavor.

So how do the major bottled water brands entice consumers into paying higher prices for bottled water? In order to add value and boost profits, market players are introducing bottled water products with bold colors, exotic flavors, and trendy packaging. Additionally, the introduction of Kraft Foods’ MiO in 2011 created a new market category for water enhancers, which has yet to be fully explored. With a convenient size and ease of use, water enhancers have the potential to shift the perception of water as plain and boring to something more interesting and customizable. Accordingly, major bottled water brands have a vested interest in rolling out new water enhancers.

Alongside Kraft Foods, Coca-Cola has been trying to take a piece of the water enhancer category with the introduction of DASANI Drops in 2012, followed by enhancers for the sport and energy drink market to compete with Kraft’s MiO Fit. In 2014, Coca-Cola introduced Vitaminwater Zero Drops and Minute Maid Drops to bring more product variety into the market category. Other notable product additions include PepsiCo’s Aquafina Flavorsplash and Kraft’s Crystal Light liquid enhancer.

According to a DASANI marketing executive, about 20 percent of households that buy bottled water also buy water enhancers. Additionally, an April/May 2014 consumer survey by Packaged Facts shows that about 35 percent of consumers who purchased bottled water in the last four weeks also purchased a water enhancer. There is great potential in the water enhancer category, and with consumers finding ways to have water the way they want it, there is plenty of room for product innovation and differentiation to capture market share.