The rise of smaller and local players, the entrance of alcoholic players with 0% offerings, the sophistication of tastes, the blurring of segments, the engagement of celebrities (e.g. Beyonce) in creating their own brands, and so more... within a few years the market of non-alcoholic beverages has been revolutionized.
Today, market entry barriers are very low as money is cheap and as there is a pull coming from venture capitalists and retailers who are giving small brands double their fair share. For those individuals who look for a manual, there is good news as there are even books explaining on how to build your own beverage empire.
With the trend to healthier beverages, Danone Waters is enjoying a tailwind for its core business - plain water and Aquadrinks. However, in 2016, its innovations were performing below par, leading to a decline of the contribution from its innovations to its net sales (-30%).
With a rapidly changing market environment, Danone concentrated on making its portfolio future-proof and augmenting the performance of its innovations.