Packaged drinking water is a rather interesting category. It’s tasteless, it’s a necessity, easily available, and, for the most part, very affordable. When you feel thirsty, you need water to quench your thirst. It is one of the most essential products in the world. Yet, there is little to no advertising for brands that provide packaged drinking water. This, when there are so many players in the market. How do you then stand out? Also, do consumers actually see the brand when buying water? After all, it is tasteless, right? So, how does brand loyalty play into all this? Furthermore, water in India is sold at a very affordable price – starting at Rs. 10. But there is an interesting fact here. There is also packaged drinking water available for Rs 100 and Rs 1,000 per bottle. Why would you pay Rs 100 for a bottle of water if you can get it for Rs 10? It does the same job after all. Too many questions.
Storyboard18 caught up with Vikram Grover, Managing Director (MD) at NourishCo Beverages Limited, to understand what premiumisation means in this category. NourishCo Beverages Limited, the ready-to-drink business of Tata Consumer Products, is one of the biggest players in the market. They own Himalayan, a popular and premium packaged drinking water brand. Edited excerpts:
As a player in an already cluttered market, how do you stay relevant and prominent?
NourishCo has successfully established a unique identity through its diverse portfolio. On the premium spectrum, our renowned brand, Himalayan, boasts a portfolio that encompasses pristine natural mineral water sourced from the Himalayas. This exceptional product, crafted by nature over two decades, has positioned itself as the leading premium natural mineral water brand in the country, experiencing profitable growth. Furthermore, our recent foray into the premium Kashmiri saffron category sets a global standard by providing consumers with concrete proof of quality and purity. This achievement is particularly noteworthy in a category notorious for rampant adulteration with fake and inferior saffron variants. The market response to Himalayan saffron has been highly favourable, making it the No. 1 seller on leading e-commerce platforms with an expanding retail footprint. Within our diverse portfolio, Tata Copper+ (water brand) stands out as a uniquely differentiated offering that has swiftly carved a niche for itself. Similarly, Tata Gluco+ and Tata Gluco+ Jelly are distinctive offerings in cup format, capitalising on the booming energy segment in India. In essence, our success lies in offering differentiated products that place consumers at the core of our endeavours. This customer-centric approach is the secret sauce that propels our growth and distinguishes NourishCo in the market.
Packaged drinking water is a category where possibly every certified player can make sales since water is a necessity. What marketing tactics do you undertake to make sure consumers gravitate towards Himalayan?
Himalayan Natural Mineral Water boasts a steadfast and dedicated consumer following in India, attributed to its esteemed source and unwavering commitment to quality — a foundation meticulously laid over the years. Informed consumers recognise the difference between natural mineral water and regular packaged drinking water and, thereby, the advantages of indulging in a premium mineral water product bestowed by nature that they can trust.
What is the size of the packaged drinking water market in India, and what is Himalayan’s share in it? Please share some numbers.
The packaged drinking water market in India is currently valued at more than Rs 12,000 crore, as per some estimates. The natural mineral water segment is much smaller, at around Rs 150 crore to Rs 200 crore in size, as per our estimates, and within this specific category, Himalayan emerges as the market leader, boasting a significant share exceeding one-third, according to our internal estimations. The brand’s robust growth trajectory further underscores its prominence in the evolving landscape of natural mineral water consumption in the country.
Water as a category is rarely seen in advertisements. Why is that?
In India, the packaged drinking water market exhibits a notable concentration among the leading five to six brands, with a considerable portion remaining unorganised. Within the top five players, including our company, there has been intermittent utilisation of advertising strategies, particularly in recent times. It is noteworthy that, unlike other segments in the ready-to-drink (RTD) beverage category such as colas and energy drinks, advertising in the premium natural water segment is either limited or predominantly directed towards digital platforms. Additionally, emphasis is placed on enhancing Point-of-Sale (PoS) visibility in this market segment.
Water doesn’t have any taste. So, how do you get a consumer to choose a specific brand of packaged drinking water? Also, will Himalayan consider exploring flavoured water as a category, considering that it’s one of the biggest trends internationally?
Trust holds significant value for discerning consumers who prioritise their well-being, considering water as one of the fundamental elements crucial to human life. In our ongoing efforts to shape the future New Product Development (NPD) pipeline, we continually assess multiple projects. We remain receptive to exploring new segments tailored to the unique needs of the Indian market, provided they align with our brand values when the opportune moment arises.
What are some of the key consumer trends that you have been witnessing in this category in India?
In the aftermath of the COVID-19 pandemic, we have observed a noteworthy shift in consumer preferences. Modern consumers place a premium on quality, prioritising products that contribute to their overall well-being, and are willing to invest accordingly. There is a heightened consciousness towards sustainable living, leading to a growing share of glass bottles, though that’s still a market in its nascency given the overall market scenario. This trend underscores a growing awareness and commitment to eco-friendly choices in the consumer landscape. Increased mobility and an increase in out-of-home (OOH) consumption are also aiding the growth in the water category in India.
Himalayan is quite a known brand in the market. How did you establish it?
For more than two decades, the Himalayan brand has thrived in the market, uniquely distinguished by its proposition of pristine water, meticulously crafted by nature over two decades. Untouched by civilization and naturally mildly alkaline, this water is a testament to the purity of the Himalayan regions, enriched with minerals, and presented in distinctive packaging.
As we reflect on our journey, it is evident that the brand has cultivated a robust reputation, particularly with the affluent class in India. This resonance has been the driving force behind our recent ventures into the realms of honey, fruit spreads, and saffron, further solidifying our commitment to authenticity and quality.
Our expansion into these new segments not only reflects the brand’s versatility but also underscores our dedication to providing consumers with premium offerings sourced from the pristine landscapes of the Himalayas. We are excited about the continued growth and evolution of the Himalayan brand as we explore new avenues and deliver exceptional products to our discerning consumers.”
What does premiumisation mean in this category? Why are some packaged drinking water brands, like Himalayan, advertising themselves as premium players?
At the onset, it’s important to highlight that packaged drinking water and natural mineral water are two different product categories and cannot be compared. The premium appeal within this category stems primarily from product differentiation and the overall product experience, particularly in packaging. The Himalayan brand distinguishes itself by capitalising on a unique selling proposition — its water undergoes a natural filtration process over many years, untouched by civilization. Naturally mildly alkaline, with inherent minerals, it boasts a distinctive quality. The packaging further contributes to this premium positioning by breaking away from conventional designs, adding an extra layer of exclusivity to the product.
Pricing is an interesting topic in the packaged drinking water category. There is water that costs Rs 10, Rs 100, and Rs 1,000 per bottle. Why is that so? If most brands advertise minerals in their water, why is there such a price gap?
The essence of premiumisation lies in the distinctive qualities inherent to a product within its category. It’s crucial to recognise that the mere addition of minerals does not transform packaged drinking water into natural mineral water, as natural mineral water has inherent minerals from nature and is minimally treated. Packaged drinking water is, on the other hand, processed and could be devoid of minerals unless added.
Who are Himalayan’s target group of consumers?
The Himalayan brand predominantly attracts a discerning consumer base characterised by a heightened awareness of their overall well-being. These individuals are consciously committed to making choices that align with their lifestyle priorities, demonstrating a willingness to invest in premium products to meet these standards.