• Glimpse at the Growing US Bottled Water Industry
  • Coca-Cola To Buy Nora Beverages of Canada
  • European Telecom Monopolies Form Alliance With Sprint
  • S. Korea Attracts More Foreign Investment and Attention
  • Foreign Investment in Vietnam May Be Waning
  • Growing Middle Class in Vietnam
  • World Auto Production Led By US Companies
  • Daewoo Group Takes on General Motors
  • Cameroon Re-Emerges to Trade With Rest of World
  • US Tobacco Giants Shift Emphasis to Asia for Profits
  • check back for more news this month!
  • check back for more news this month!
  • .....check back for more news later this month!
  • USA -- Consumption of bottled waters in the USA has been on the rise since their introduction to the mass consumer market nearly ten years ago. Some may attribute growth in the industry to health and safety trends or consumers' refocus on nature (in our digital world) or a fitness/wellness movement. Some may even correlate this growth with consumer emphasis on status (first was Perrier, now Gerolsteiner or Sole or Tynant or dozens of other status brands -- which have come to substitute for or complement an alcoholic beverage in social settings). Nevertheless, there are over 500 brands of bottled water available to US consumers today. Consumption in 1995 was close to 2.7 million gallons (twice the volume of 10 years ago), with annual sales reaching US$2.5 billion. Interestingly, in the US, there are 15 states including California, Florida and New York, that consume 75% of bottled water volume. The majority of Americans consume still water (93%), rather than sparkling/mineral water (7%). And the average price of a bottle in the US? US$1.39 - 2.00/one-and-a-half liters. The 10 US market leaders, listed in order of 1995 annual sales (US$ millions), include:
    • Arrowhead spring water (CA) - US$234.3
    • Poland Spring natural spring water (ME) - US$201.9
    • Evian natural spring water (France) - US$170
    • Sparkletts bottled water (CA) - US$157
    • Hinckley-Schmitt bottled water (Midwest/West US) - US$113.7
    • Ozarka Spring Water (TX) - US$86.8
    • Alpine spring bottled water (CA) - US$84
    • Zephyr Hills spring water (FL) - US$80.7
    • Mountain Valley natural spring water (AK) - US$67.4
    • Deer Park spring water (Northeast) - US$66.8

    (Source: YOUR LINK HERE)

    May 1995
    June 1995
    July 1995
    August 1995
    September 1995
    October 1995
    November 1995
    Vietnam - special edition
    December 1995
    January 1996
    February 1996
    March 1996
    April 1996
    May 1996
    June 1996
    July 1996
    September 1996
    October 1996
    November 1996
    December 1996/
    January 1997
    February 1997
    March 1997
    April 1997
    May 1997
    June 1997
    July 1997
    August 1997
    September 1997
    October 1997
    November 1997
    December 1997
    January 1998
    February 1998
    March 1998
    April 1998
    May 1998
    June 1998
    July 1998
    August 1998
    September 1998
    October 1998
    November 1998
    December 1998
    January 1999
    February 1999
    March 1999
    April 1999
    May 1999
    June 1999
    July/August 1999
    USA and CANADA -- Coca-Cola Enterprises, Inc., the world's largest soft drinks bottler, which distributes 57% of Coca-Cola's bottle/can volume in the USA has announced plans to acquire Quebec's Nora Beverages Inc. for about US$117 million. Nora produces Naya brand Canadian spring water. Coca-Cola is Naya's largest distributor in the world, handling about half of its worldwide volume.
    (Source: YOUR LINK HERE)
    EUROPE -- In a new venture, called Atlas, Europe's antitrust regulator allows Sprint Corp., France Telecom S.A. and Deutsche Telekom A.G. (two of the largest phone companies/monopolies in Europe -- with combined annual revenues of US$61 billion, operating 70 million telephone lines) to form an alliance for a period of five years. As part of the negotiations, the two European monopolies were granted this freedom to operate jointly under the conditions that they further liberalize local telecommunications laws, and allow competitors fair access to state-owned networks. Full deregulation of both monopolies will take place on January 1, 1998. This is seen as a positive step towards restructuring and integrating the European telecommunications industry. See Sprint's Global-One explanation for more information.
    (Source: YOUR LINK HERE)
    SEOUL, S. Korea -- Foreign investors are looking at S. Korea differently lately and have altered their perceptions of the country from that of a production based market, with benefits of lower wages, to a consumer market, with high potential. This confidence in S. Korea's business opportunities has attracted more investment from foreign companies. These are the findings of a survey conducted in July '96 by the Economist Magazine and POSCO Research Institute. According to 55.5% of the senior executives from 100 foreign firms surveyed, their subsidiaries in S. Korea were doing better business than in any other country and 77.8% of respondents said their companies put greater emphasis on operations of their S. Korean units than in businesses elsewhere.
    (Source: YOUR LINK HERE)
    HANOI, Vietnam -- Vietnam, also called The Pearl of the Orient, and considered one of SE Asia's most promising emerging frontiers, has seen recent foreign investment slipping. Foreign investment in southern Vietnam's Ho Chi Minh City has dropped by 28% during the first five-and-a-half months of this year vs. the same period in 1995. Since Vietnam's opening up in 1988, foreign investments have totalled US$20 billion -- actual disbursements to date are estimated at around US$4-7 billion. Despite the recent decline, officials in Vietnam are still optimistic and report a positive trend, and attribute the sharp decline to receiving one extremely large project last year, valued at US$500 million. The government is also reportedly becoming more selective about the foreign investment projects it accepts than they were at the outset -- given the number of projects already underway and the volume of investments it has already received, they are taking a more focused, strategic approach. MPI (Ministry of Planning and Investment) released national figures that demonstrate a nearly 40% drop in foreign investments from 1995 to 1996 (measuring the first 5.5 months of 1995 vs. 1996 -- investments in 1996, so far, have come from 132 foreign projects and total US$2.075 billion).
    (Source: YOUR LINK HERE)


    World -- Looking at the leading 26 automobile and light truck manufacturers around the world, the USA continues to take the lead in global production. In 1994, total world output was 44,906,051 million vehicles. Of the top 26 companies, the three US leaders (General Motors, Ford and Chrysler) accounted for 37% of vehicles produced. Japan represented 30% of output (from nine leaders -- Toyota, Nissan, Honda, Mitsubishi, Mazda, Suzuki, Fuji, Daihatsu and Isuzu). France's leading auto makers (PSA/Peugeot and Renault) accounted for 10% of production. Germany ranked next at 9.6% (lead by Volkswagen, Daimler-Benz and BMW). South Korea, whose Year 2000 goals from Daewoo are quite ambitious, ranks next with 4.7% of vehicles (lead by Hyundai, Kia and Daewoo). Then Italy's Fiat, alone, produced 4.2% of the world's vehicles. The remaining 4.2+% of vehicles manufactured by the leading auto makers were produced by Russia (Vaz), the UK (Rover Group), Sweden (Volvo) and Poland (FSM and FSO).
    (Source: YOUR LINK HERE)


    Cameroon -- For the first time in 20 years, Cameroon's trade balance with the rest of the world is positive. Its economy is showing signs of an economic recovery. Leading exports (in terms of revenues) last year included logs, robusta coffee, cocoa and cotton. Domestically, the textiles and clothing industry reported record turnover last year, an increase of 60% over the previous year and significant increases were also noted in the agricultural sector. Manufacturing is one of the most promising sectors, with an expected growth rate of 8% annually. It currently accounts for 12% of the nation's GDP. The World Bank's outlook for Cameroon is also positive with a projected 5% sustained increase in GDP for 1995/6.
    (Source: YOUR LINK HERE)

    HANOI, Vietnam -- Despite recent evidence of waning investments in Vietnam, the surge of investments over the last few years, i.e. in construction, infrastructure development, etc. and accompanying government reforms have attracted significant foreign money from abroad, giving rise to an emerging middle class. The growing wealthier/middle class is now working for foreign companies or as entrepreneurs and they fuel a widening gap between the haves and the have-nots. The average income for those living in the major cities such as Hanoi and Ho Chi Minh City is estimated to be 3 - 4 times higher than the rest of the country (estimated average per capita GDP was US$220 in 1995). This new found wealth can be seen in consumer purchases and leisure activities. For instance, there is a two-hour wait at the newly opened bowling alley in HCM City, where a game can cost US$4.36 (the equivalent of 10 servings of noodle soup). And upscale restaurants and night clubs, once the sole terrain of foreigners, are now frequented by Vietnamese. In terms of material goods, VCR ownership has jumped from 33% of households in 1994 to 51% in 1995. Visible evidence of this upwardly mobile group, ranges from clothing (styles and quality) to transportation means (motor bikes and cars) to lavish wedding ceremonies at the New World Hotel in HCM City, one of the most luxurious hotels in the country. More Information about consumer trends in Vietnam is available in PANGAEA's in-depth country overview.
    (Source: YOUR LINK HERE)


    South Korea -- South Korea's Daewoo Group ranked 24th out of the leading vehicle manufacturers in 1994. Their ambitious plan is to rank among the world's 10 largest automobile producers by the Year 2000, by building two million cars that year. Daewoo has invested heavily in production facilities in eastern Europe to help facilitate this goal. Specifically, they bid for and won (against companies such as US' General Motors) the rights to take control of Poland's Fabryka Samochodow Osobowych (FSO), Poland's state-run car and component manufacturing facilities, with 20,000 employees -- for US$1.1 billion. This is just a fraction of the US$5 billion they have invested to date in eastern European manufacturing facilities (in Poland, Romania and the Czech Republic). Poland, like other nations of eastern Europe, continues to offer low manufacturing costs (wages are 1/5 of those in S. Korea) and an increasing consumer demand for automobiles. Consumer car sales rose 30% in Poland and the Czech Republic during the first five months of 1996. Moreover, Poland's central European location serves as a viable gateway to western Europe, where demand for vehicles is significantly higher. Daewoo is in an aggressive growth mode, taking risks and employing less traditional marketing techniques. For example, their Nexia model car launched in Britain and sold 18,000 cars in its first year -- many were sold through Sainsbury's Savacenter superstores, a supermarket chain, rather than in traditional car show rooms.
    (Source: YOUR LINK HERE)

    PR CHINA -- With a restricted tobacco industry in the US (and many developed markets), tobacco giants look to consumers in developing nations in Asia for profits. Focus on the US$8 billion tobacco market in China is particularly enticing for US giants, in a country where 300 million men (out of a more than 1 billion population) already smoke cigarettes, personal income is rising and the image of smoking American cigarettes conveys status, "coolness," and disposable income for the growing number of younger smokers. In China, cigarette ads for a variety of brands are evident on television, in public areas, in print, etc. And the majority of smokers do not yet understand the impending dangers of cigarette smoking.
    (Source: YOUR LINK HERE)

    .....check back for more news this month!

    For more information about any of these topics in any foreign market, or if you would like an in-depth market study, contact PANGAEA, International Consultants. With an extensive network of marketing consultants, attorneys, logistics experts and more around the world, PANGAEA is uniquely qualified to offer hands-on, local marketing and management consulting services.

    (c) 1996 PANGAEACommunications. All rights reserved. Materials found on this website are not for resale. No part of this file may be printed, copied, distributed or disseminated in part or in whole without the express prior written permission of PANGAEACommunications

    Reprints/copies of this issue are available for US$10.00 per copy.

    Updated 8/19/96