Gerolsteiner Brunnen expands market leadership and successfully focuses on quality, sustainability and innovation

Strengthening the market position through innovative product concepts in the strategic fields of mineral water and soft drinks: Gerolsteiner Brunnen sees itself well equipped in a challenging industry environment to actively shape the market as a pacesetter in the future as well. "As the market leader and with our strong brand, we are in a position to set impulses and use the opportunities to further advance the mineral water category. Even if the mineral water market as a whole is declining and poses challenges for all players, we will strengthen the natural product mineral water. In the soft drinks segment, we are setting clear accents this year with further new concepts," says Roel Annega, CEO.

As the balance sheet of the past business year proves, Gerolsteiner benefits from the strength of the brand, the national marketing and from the fact that the mineral water from the Volcanic Eifel is offered in a wide range of variants and containers - with products for different target groups and occasions. In the mineral water segment, for example, Gerolsteiner has grown by 2.3 % (industry: -3.7 %) against the trend in the industry in terms of turnover and has expanded its position as market leader with now 10.2 % (2020: 9.6 %, source: Nielsen Handelspanel). In the soft drinks segment, which will be expanded into a second mainstay alongside mineral water in the coming years, a whole series of product launches such as Gerolsteiner Leichte Limo and Gerolsteiner Leichte Schorle have already provided impetus.

"Overall, we have come through a year really well, which was not only marked by the pandemic, but also by the flood disaster in our region, which had a temporary impact on our ability to deliver," says Annega. Overall, at the end of the 2021 financial year, especially due to the impact of the pandemic on the hospitality business and the out-of-home market, net sales were only slightly down at €285.6 million (2020: €291.9 million, -2.2%). Total sales in 2021 were 7.5 million hectolitres (2020: 7.6 million hectolitres, -2.0%).

Innovations: Tea for the first time from April / New mineral water origin and attractive soft drinks for the out-of-home market
"The pressure on the mineral water category is leading to concentration in the market," says Roel Annega. "We want to use the potential that this market situation opens up." On this path, Gerolsteiner will continue its innovation offensive with new products and containers in 2022 and in the coming years. The goal is to address new target groups in addition to existing customers. "With innovations such as Gerolsteiner Feinperlig launched in 2021 and our brand new mineral water called Ursprung, we are revitalising the market with new mineral water concepts and at the same time underlining our expertise in the mineral-rich mineral water segment." The soft drink range will be significantly expanded and in future will be divided into four clearly distinct areas: Flavoured water, spritzer, lemonade and, from April, tea for the first time in two variations. For the out-of-home market, Gerolsteiner will initially launch three spritzers and lemonades in the popular 0.33-litre longneck glass bottle starting in March and will further expand this area with, among others, the mineral water Ursprung, which is particularly rich in minerals. The 0.33-litre longneck container is to become a platform for new product concepts that can also be introduced in food retailing in the future. Further new products for the food retail trade will follow in the second half of the year.

More sustainable management as a joint task
The foundation of all activities continues to be the company's holistic and long-term sustainability strategy. For example, the company was the first mineral water company to commit to the 1.5-degree target of international climate protection policy, according to which the global temperature increase due to the greenhouse effect is to be limited to a maximum of 1.5 °C by 2030. Especially in the reduction of climate-relevant emissions at its own site (Scope 1 and 2), the mineral water from the Eifel region has already made significant progress and is on its way to achieving the 1.5-degree path. "The focus this year will therefore primarily be on our ambitions along the entire value chain. Here, we face a joint task and rely on strong alliances with our partners," says Annega. In order to achieve its ambitious climate goals, Gerolsteiner acts hand in hand with partners and suppliers and has, among other things, created its own supplier dialogue format for this purpose. With a roadmap, concrete goals and approaches for reduction in this area will be defined this year. "We are moving forward together step by step and are enthusiastic about the commitment of our partners to help shape our path," says Annega.