WOOLIES PULLS PLUG ON MOUNT FRANKLIN VARIETIES
WOOLWORTHS will pull all but two Mount Franklin water products from shelves opening up a new battleground on supermarket shelves.
Woolies will only stock the two most popular Mount Franklin products — 20 and six-bottle still water packs — from August, and single bottles will still be available at the front of stores.
Investors reacted to the news, sending shares in Mt Franklin’s owner, Coca-Cola Amatil. sliding 3.9 per cent to $8.23, taking the stock to a new 12-month low.
A Woolworths spokesman said the move was designed to meet customers’ growing thirst for more water options.
“Our customers are purchasing a wide variety of water options — both branded and non-branded — and as the category continues to increase in popularity we will respond to meet our customers’ demands in the space,” he said.
The Mount Franklin announcement is the latest in a string of bad news for CocaCola Amatil, with Woolworths earlier this month confirming it won’t stock the new Coca-Cola No Sugar and pizza giant Domino’s awarding a supply contract to Coke’s bitter rival, Pepsi.
A Coca-Cola Amatil spokesman yesterday talked down the potential hit to Mount Franklin.
He said Woolworths was not targeting the beverage giant but simply reducing availability of multiple brands across several manufacturers, while expanding Woolies’ own private label water range. He noted the Coca-Cola Amatil’s most popular grocery water products will remain on Woolworths’ shelves.
“This decision will have minimal effect on Coca-Cola Amatil,” the spokesman said.
“Our water strategy isn’t about just one brand, it is about a full portfolio including Mount Franklin, Pump, Neverfail and others with a strong focus on immediate consumption channels.
“Grocery water sales are important to us but are only one part of the strategy.”
According to market research firm IBISWorld, the Australian bottled water industry is worth $736 million and is projected to grow at an annualised rate of 2.4 per cent over the next five years to reach $826.8 million.
Coca-Cola Amatil dominates with just under 50 per cent market share, according to IBISWorld.