Source: Zhishi (WeChat ID: zs07555) Reprinted with authorization by New Distribution. For reprints, please contact the original author.

Introduction: Nielsen data shows that in March 2017, Ganten's market share surpassed Wahaha, ranking fourth and closing in on Master Kong, with expectations to enter the top three this year.

Ganten is the fastest-growing bottled water brand According to Nielsen data, in March 2017, Ganten held a 9.2% market share, followed by Wahaha and Ice Dew at 8.6% and 6.6%, respectively.

Nielsen data indicates that as early as 2015, Ganten had a slight edge over Ice Dew. In 2016, the two brands were in a tight race for several months. Since October 2016, the gap between Ganten and Ice Dew has gradually widened. By March 2017, Ganten's share was 9.2%, while Ice Dew's was 6.6%, giving Ganten a 2.6% lead.

Nielsen data also shows that in November 2016, Ganten surpassed Wahaha for the first time, with 8.4% versus 8.1%, moving to fourth place in the industry. This trend continued through March 2017, when Ganten held 9.2% compared to Wahaha's 8.6%, a lead of 0.6%.

(Data source: Nielsen)

According to Nielsen, in 2016, Ganten jumped from sixth to fourth place in the bottled water industry, overtaking both Ice Dew and Wahaha within a year. Industry observers told Zhishi that Ganten's rapid rise, overtaking two brands in a single year, is rare in the industry.

A market salesperson from Ganten's same-city competitor, C'estbon, who spoke on condition of anonymity, told Zhishi that when discussing industry landscape and market trends, almost no one mentions Wahaha, implying that Wahaha is no longer a focus for competitors.

In recent years, Ganten has been the fastest-growing brand in the bottled water sector. Nielsen data also shows that Ganten's bottled water sales in 2016 grew 43% year-on-year, while Master Kong, Wahaha, and Ice Dew all saw negative growth at -14%, -14%, and -2%, respectively.

In March 2017, Nielsen data showed that Ganten and Ice Dew grew 38% and 17% respectively compared to the same period in 2016, while Master Kong and Wahaha saw negative growth of -8% and -4%.

(Data source: Nielsen)

Nielsen data is widely recognized as the most authoritative third-party data in the bottled water industry. Whether in terms of market share, ranking changes, or sales growth, Ganten is undoubtedly the most dynamic, with commendable market performance.

Ganten has been the leader in mineral water for 8 consecutive years

Nielsen data for March 2017 shows the top six bottled water brands are Nongfu Spring, C'estbon, Master Kong, Ganten, Wahaha, and Ice Dew, together holding 80.7% of the market. Among these, only Ganten is a mineral water brand; the others primarily produce purified or natural water.

In 2007, Ganten's parent company, Jingtian Company, launched Ganten mineral water, which quickly became a market hit. In recent years, as consumers have become more knowledgeable about drinking water, mineral water has gained popularity, and Ganten has been the biggest beneficiary.

As early as 2011, the China Beverage Industry Association first released its list of China's top 10 natural mineral water brands, with Ganten ranking first. Since 2009, Ganten Natural Mineral Water has held the top spot in the domestic natural mineral water market for eight consecutive years.

In recent years, new entrants like Evergrande, Kunlun Mountain, and Tai Chi Group have entered the mineral water segment, but their performance has been below expectations and has not shaken the existing industry structure. Neither Evergrande, Kunlun Mountain, nor 5100 appeared on the China Beverage Industry Association's top 10 list, nor were they among the top six in Nielsen data.

Whether based on Nielsen data or the association's list, Ganten remains the undisputed leader in domestic natural mineral water. At least for now, no brand has been able to challenge its dominance.

The largest exporter of natural mineral water

At the Ganten Natural Mineral Water production base in Luofu Mountain, Huizhou, Zhishi noticed a small square with multiple national flags. Staff explained that for every country Ganten exports to, a flag is raised at the base.

Staff also noted that the company's sales network covers mainland China, Hong Kong, and Macau, and extends to Canada, Singapore, the United States, Russia, the Philippines, South Africa, the Marshall Islands, and other countries, achieving significant success and a good reputation overseas. Ganten has been the top exporter of bottled mineral water from China for several consecutive years.

Zhishi noted that in a test report by the Hong Kong Consumer Council on 40 common bottled waters, Ganten was the only mainland mineral water brand to receive five stars in all indicators and overall rating, matching the quality of foreign brands like Evian.

Mainland consumers who frequently visit Hong Kong will notice that in supermarkets, convenience stores, and five-star hotels, Ganten is one of the few mainland mineral water brands competing alongside Evian, Perrier, and San Pellegrino.

(At a media briefing for the Rio Olympics elite athletes' visit to Hong Kong, Ganten bottles were prominently placed, showing its popularity in Hong Kong.)

Ganten has multiple natural mineral water production bases

In 2007, relying on rare, high-quality water sources, Ganten's Huizhou Luofu Mountain production base, Asia's largest natural mineral water base, was officially put into operation. Thanks to its superior water quality, Ganten, known as the "aristocrat of water," quickly grew from a regional to a national brand, securing the top spot in domestic natural mineral water market share.

Currently, the Ganten brand family includes four natural mineral water production bases: Huizhou Luofu Mountain, Guangzhou Aofeng, Ningbo in eastern Zhejiang, and Yichun in Jiangxi, making it the mineral water brand with the most production bases and the largest production capacity in China.

To do a good job, one must first sharpen one's tools. Ganten's vice general manager, Chen Mengjia, told Zhishi that the company currently operates 40 Krones production lines from Germany, the most of any bottled water company in China. Krones, a German-listed multinational, is renowned worldwide for its filling and packaging line technology, often called the "Rolls-Royce" of beverage filling lines. In China, food and beverage companies take pride in owning Krones lines.

The president of Krones has visited China twice, both times choosing Ganten's base as the first stop, praising it as the "most beautiful water plant" they had ever seen.

Dual-brand strategy: Jingtian purified water becomes a hit

In addition to Ganten natural mineral water, which is well-known to consumers, Jingtian purified water emerged in 2016. In fact, as early as 2013, Zhishi noticed that Jingtian Company had launched a dual-brand strategy, splitting the original "Jingtian Ganten" brand into two: Jingtian for purified water and Ganten for bottled mineral water. Attentive consumers noticed that the packaging of Ganten natural mineral water no longer bore the "Jingtian" characters, and the advertising slogan changed from "Aristocrat of water, Jingtian Ganten" to "Aristocrat of water, Ganten."

An anonymous source from C'estbon, Ganten's same-city competitor, said that Nielsen's statistics may only count Ganten, and if Jingtian purified water were included, Jingtian Company's market share would be higher and its ranking more advanced.

The source added that Jingtian purified water has over 10 high-speed Krones production lines in Dongguan, Jiangxi, and Jiangsu, running at full capacity, indicating its popularity. It was one of the few hit products in the bottled water industry in 2016. Industry insiders can judge from its production capacity that the sales of Jingtian purified water alone far exceed those of some mineral water brands that have been highly visible in the market recently.

Launch of high-end glass-bottle mineral water in 2017

In March, Shenzhen Jingtian Food & Beverage Co., Ltd. (Ganten's parent company) announced that Ganten would launch a high-end mineral water brand, "Blairquhan Benlaiwang," available in both sparkling water and natural mineral water, both in glass bottles. "Benlaiwang" will be produced at the Huizhou Luofu Mountain base, with a new Krones filling line capable of producing 36,000 bottles per hour.

(Benlaiwang glass-bottle mineral water has frequently appeared in upscale venues since its launch.)

On May 5, at a press conference for the platinum partnership signing with the China Open tennis tournament at the Huizhou Luofu Mountain base, Chen Mengjia revealed that the company had initiated plans to build a mineral water plant in Italy.

(Signing ceremony between Ganten and the China Open)

Ganten ranks fourth, eyeing third: A three-way battle in the bottled water market?

According to the latest Nielsen data for March, Nongfu Spring and C'estbon rank first and second, with a market share difference of only 2 percentage points. Master Kong and Ganten follow closely at 12.2% and 9.2%, a gap of 3 percentage points. Industry insiders tend to believe that the bottled water landscape will change this year, and Ganten might "accidentally" overtake Master Kong to enter the top three.

(Data source: Nielsen)

Zhishi interviewed Chen Mengjia on this topic. When asked whether Ganten is expected to overtake Master Kong and enter the top three this year, Chen responded that the bottled water market is highly competitive and he prefers not to make predictions about uncertain matters. He added that Nongfu Spring, C'estbon, Master Kong, Wahaha, and Ice Dew are all excellent brands with strong capabilities, deserving respect, and have always been models for Ganten to learn from.

However, some anonymous industry insiders disagree. Ganten is known for its low profile, never engaging in verbal spats or conflicts with competitors, so it's not surprising they declined to comment. But given Ganten's upward momentum and Master Kong's apparent fatigue, overtaking Master Kong to enter the top three is only a matter of time.

Jingtian's chairman, Zhou Jingliang, has repeatedly told Zhishi that the three most active brands in China's bottled water market are Nongfu Spring, C'estbon, and Ganten. In Zhou's view, Master Kong, Wahaha, and Ice Dew did not start with bottled water and it is not their core business. In contrast, Nongfu Spring, C'estbon, and Ganten all started with bottled water and it remains their main business. In terms of brand awareness, market share, and marketing efforts, these three are thriving in the bottled water market.

If Ganten enters the top three, it will inevitably cross paths with Nongfu Spring and C'estbon, placing the three most active brands in the same first tier, intensifying competition in the bottled water market. Regarding the potential three-way battle, C'estbon responded that it also rose from a regional brand to the industry's forefront, and Ganten is now following a path C'estbon has already taken. C'estbon is not afraid of competition and welcomes challenges from strong opponents.

Public opinion suggests that although the three brands appear harmonious on the surface, none truly concedes to the others. In the coming period, close combat among the three is inevitable.

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