Less is more
Premium branded waters have found a natural home in the region perhaps driven by the aggressive expansion of high-end branded hotels and F&B brands. It is in this sector, where margins are at their highest, that competition is most fierce.

“We’ve experienced 100% growth since we first launched Antipodes Water in the region in 2008,” recalls Antipodes managing director for the Middle East region, Matthew King. “Back then, F&B managers were hesitant when implementing new premium water products.

“I now believe that F&B managers are becoming more selective when it comes to water products and brand alignment. A brand’s unique point of difference can differentiate the hospitality experience and add to the overall dining experience.”

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Interestingly, Antipodes has experienced growth in the region by not mass distributing its products through retail channels — perhaps to protect the exclusivity of the Antipodes brand and its margin. Antipodes is only available through F&B outlets and via the company’s home-delivery service.

“For the F&B industry, it’s no longer simply a matter of finding the cheapest water which can return the highest profit margin,” continues King. “It’s about the quality of the offering.”

Similarly, Classic Fine Foods Emirates, distributor of Italian water brand San Benedetto, is pursuing growth by focusing on sole distribution through F&B channels and restricting availability elsewhere.

“We have found that imported mineral water is more popular in places like Dubai and Abu Dhabi where there is a high concentration of business travellers and expatriates,” says Classic Fine Foods Emirates managing director, Thomas Leroy.

“The UAE is a very dynamic market, especially in the hospitality industry, so our strategy is to stay dedicated to food service in order to offer our customers an exclusive product that is not available in retail.”

As the water market proliferates, brand exclusivity is becoming more important to F&B outlets.

“Without a doubt, the strongest change in demand is coming from the region’s fine dining restaurants and five-star deluxe hotels — accounting for 50% of the demand increase,” says Oana Vremes, marketing and brand manager, International Hotel Supplies — the firm behind Hildon Natural Mineral Water in the Middle East.

“I think that the demand for exclusivity will continue to grow because the F&B market here will always be seeking out new and innovative ways of fulfilling its consumers’ needs. The GCC has huge tourism potential — both leisure and business — so I think the Middle East will be an unstoppable engine for luxury and exclusivity. Water itself stands at the base of this evolution.”