Despite the recession, the fastest-growing bottled water brand in the UK last year was a premium water from a glacial source. Catherine Dawes reports
The odds were stacked against the launch of Norwegian bottled water Isklar in April 2008. Two washout summers; environmentalists lobbying hard against a packaged product that can otherwise be delivered at the twist of a tap; and, to cap it all, a recession in which consumers eschewed premium brands and traded down to cheaper alternatives.
Yet despite this perfect storm, Isklar has flourished and hit annual sales of £1.97m [IRI 52w/e 23 January 2010] less than two years after launch and is currently the fastest-growing brand in the category. The company is now ready to introduce a sparkling variant, which will go into three of the big five retailers later this month.
Like the original launch, the move into sparkling hasn't been simple though for different reasons. One of Isklar's key attributes is its award-winning bottle that, with its multi-faceted design, has an icy look reminiscent of the glacier the water comes from. (Isklar means "ice clear" in Norwegian). However, the original bottle would have burst under the pressure of carbonated water, so designers Blue Marlin had to develop reinforced curved facets to replicate the look of the original bottle, while adding extra strength.
The result is impressive, as are Isklar's efforts to minimise the impact its product has on the environment. The bottling plant, in the Hardanger region of west Norway, uses hydro-electric power and the water piggybacks existing shipping routes to the UK. Chief executive Peter Krogh (pictured) says the carbon impact of shipping the water from Norway to London is lower than transporting it by road from northern England to London. The company has also built a recycling facility in the Middle East with the capacity to recycle 10 plastic bottles for every one produced by Isklar.
"There's a lot of negative talk around bottled water, and we need to be responsible," says Krogh. "Water has been something of a scapegoat but it is responsible for less carbon than sugary drinks. We need to be conscious of everything we do, but other things have a much bigger impact."
He is unfazed by suggestions that consumers seeking to reduce their carbon footprint might favour local over imported products. "I believe in giving people choice, and there aren't many glaciers in the UK," he says.
The glaciers are the secret to the company's success, he believes. Isklar bottles glacial water that feeds into a 1,000-year-old well. The low mineral content gives Isklar a unique taste that, coupled with high-profile brand building, means customers will keep coming back. The company has splashed out £2.5m a year on marketing since launch, with TV ads in 2008 and much of last year's budget going on sampling and in-store activity. In April this year Isklar will return to UK TV screens with a series of seven short, quirky adverts that make it one of the bottled water category's biggest spenders on marketing [Billetts].
Krogh feels the marketing push will cement its position in the UK before it launches into Denmark, Spain and the Middle East later this year. "The UK is the most professional grocery market in the world," he says. "If we can succeed here, then we can take it around the world."
The odds were stacked against the launch of Norwegian bottled water Isklar in April 2008. Two washout summers; environmentalists lobbying hard against a packaged product that can otherwise be delivered at the twist of a tap; and, to cap it all, a recession in which consumers eschewed premium brands and traded down to cheaper alternatives.
Yet despite this perfect storm, Isklar has flourished and hit annual sales of £1.97m [IRI 52w/e 23 January 2010] less than two years after launch and is currently the fastest-growing brand in the category. The company is now ready to introduce a sparkling variant, which will go into three of the big five retailers later this month.
Like the original launch, the move into sparkling hasn't been simple though for different reasons. One of Isklar's key attributes is its award-winning bottle that, with its multi-faceted design, has an icy look reminiscent of the glacier the water comes from. (Isklar means "ice clear" in Norwegian). However, the original bottle would have burst under the pressure of carbonated water, so designers Blue Marlin had to develop reinforced curved facets to replicate the look of the original bottle, while adding extra strength.
The result is impressive, as are Isklar's efforts to minimise the impact its product has on the environment. The bottling plant, in the Hardanger region of west Norway, uses hydro-electric power and the water piggybacks existing shipping routes to the UK. Chief executive Peter Krogh (pictured) says the carbon impact of shipping the water from Norway to London is lower than transporting it by road from northern England to London. The company has also built a recycling facility in the Middle East with the capacity to recycle 10 plastic bottles for every one produced by Isklar.
"There's a lot of negative talk around bottled water, and we need to be responsible," says Krogh. "Water has been something of a scapegoat but it is responsible for less carbon than sugary drinks. We need to be conscious of everything we do, but other things have a much bigger impact."
He is unfazed by suggestions that consumers seeking to reduce their carbon footprint might favour local over imported products. "I believe in giving people choice, and there aren't many glaciers in the UK," he says.
The glaciers are the secret to the company's success, he believes. Isklar bottles glacial water that feeds into a 1,000-year-old well. The low mineral content gives Isklar a unique taste that, coupled with high-profile brand building, means customers will keep coming back. The company has splashed out £2.5m a year on marketing since launch, with TV ads in 2008 and much of last year's budget going on sampling and in-store activity. In April this year Isklar will return to UK TV screens with a series of seven short, quirky adverts that make it one of the bottled water category's biggest spenders on marketing [Billetts].
Krogh feels the marketing push will cement its position in the UK before it launches into Denmark, Spain and the Middle East later this year. "The UK is the most professional grocery market in the world," he says. "If we can succeed here, then we can take it around the world."
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