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Coca-Cola Smartwater enters China, high-end water is a hot business

Recently, it was reported in the media that Coca-Cola’s high-end water Smartwater entered China and was the first to land in Sam’s Clubs in Shanghai and other cities.

Recently, it was reported in the media that Coca-Cola’s high-end water Smartwater entered China and was the first to land in Sam’s Clubs in Shanghai and other cities.

Publicly available information shows that smartwater is a brand of bottled, steam-distilled water. The company was acquired in 2007 and became a subsidiary of The Coca-Cola Company.

Jennifer Aniston served as its brand ambassador from 2008 to 2020, and by 2016, smartwater grew to be one of the top five bottled water brands in the United States and one of the fastest growing brands in terms of sales for The Coca-Cola Company.

It is reported that Smartwater in the Chinese market named “Simant packaged drinking water”, using the same blue packaging style and straight bottle design with the overseas version, specifications for 600ml. It is suitable for sports hydration and other drinking scenarios. A case of 24 bottles is priced at about 80 RMB, which translates into a unit price of 3.3 RMB per bottle.

Coca-Cola actively explores water market

With the upgrading of people’s health consumption awareness, the market for pure water, juice drinks and tea drinks has grown rapidly, while the carbonated beverage market has shrunk.

For Coca-Cola, which mainly focuses on carbonated beverages, the launch of products that cater to people with low sugar, no sugar and no additives. Bottled water becomes a good choice, especially the premium premium water is more profitable. 2021, Coca-Cola bottled water revenue of 1.485 billion RMB.

In China, Coca-Cola already has brands such as Ice Dew and Pure Joy. For this smartwater into the Chinese market, it is a new attempt by Coca-Cola to develop the water market in China.

High-end water has become a popular business

The entire bottled water market has undergone tremendous changes in recent years. Based on the upgrading of people’s economic base and consumption needs, the consumption scenario of bottled water has started to spread to cooking, tea and coffee making, and at the same time, it gradually has social values such as gift giving and hospitality, which has ushered in a strong growth period for the high-end water market in China.

High-end water brands are also stirring up the storm in the overall positive bottled water industry: Perrier (Paris Water) and Evian are starting to gain sales in the Chinese market; Mount Pleasant is sitting firmly at the top of the category, maintaining its image as a “water aristocrat” by sponsoring international events such as tennis, basketball and major conferences; VOSS, Nestle, etc. High-end water brands such as VOSS and Nestle are also making bold efforts to break the game; Nongfu Shanquan’s high-end glass bottles are highly sought after. The rapid development of high-end water in the Chinese market is evident to all.

Apparently, smartwater entered the Chinese market because Coca-Cola is optimistic about the development of high-end bottled water in China and wants to make a big splash in the bottled water field.

Rees Consulting research report has pointed out that: 1 RMB water consumption market slowly decreasing; 2 RMB water consumption market stability; 3 RMB consumption market slowly expanding; 4 RMB and above high-end mineral water market is brewing, in the initial stage.

But the high-end water fight is not the price, nor the strength of the promotion, but how to find a higher degree of taste recognition of consumers is the most important.

So Smartwater in China before the market, to face many difficulties, want more long-term development, must be based on their own positioning to find a good consumer groups, step by step to explore the Chinese high-end water market.

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