EQUITIES as a percentage of any PORTFOLIO

Nestle Sa French bottled water sales slipping as consumers turn to tapwater - report


PARIS (AFX) - Sales of bottled water in France, the largest market in the
world, fell 2.6 pct year-on-year in volume terms over the first 11 months of
this year, in line with the decline seen in 2005, French daily La Tribune said,
citing market research companies.
The high prices of premium brands like Evian and Volvic, owned by Danone, or
Vittel and San Pellegrino, owned by Nestle, has prompted a switch to normal
tapwater, the report said.
Late last year and in 2006, municipal water companies launched advertising
campaigns promoting the safety and health benefits of tapwater, arguing that its
composition is often very similar to bottled water that costs 100 to 300 times
more.
"It's a long-term trend. There was a peak for sales in 2003, a year with a
heat wave, followed logically by a decline in 2004. But since then the fall has
continued and today, we still haven't returned to the levels of 2002," said
Mathieu Denier, a consultant at market analysis group Iri France.
Price increases have helped offset the lower volume sales. By value, sales
fell 0.9 pct during the first 11 months of 2006, compared with a 5.5 pct drop
last year.




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