George Brown College - School of Business

Competitive Analysis for Maple Water

Elham Safari

Executive Summary
Nowadays, the visible trend towards organic and healthy food and beverage, created a new waves of
competition in this industry. Recently many large companies in Canada and United states are promoting a wide
range of healthy beverages options. Although maple water is still a new product in this market and has lots of
opportunity, it needs to deal with a variety of healthy and organic beverages such as coconut water, green tea,
aloe drink, vitamin water, and naked juice (a new brand of all-natural fruit drinks that have no added sugar) that
has been already positioned successfully in the market.
Maple water has gained much attention among consumers in recent years. . There are several Canadian-based
companies that launched the product successfully in Canada and United States. The major threat comes from
Quebec NAPSI-certified Pure Maple Water. NAPSI seal is developed by the Federation of Quebec Maple Syrup
Producers, which describes a production process that preserves the real taste and quality of maple water from
Canada. This certification is available for national and international distributors who meet the requirements,
which include that the maple water must be from Canada. The brands with NAPSI certification are SEVA,
OVIVA and MAPLE3.
At the present time, Quebec NAPSI-certified maple water under the OVIVA and SEVA brands are on sale in
Quebec and British Columbia. Retail price is between $4.99 and $5.99 for one liter. (Blumenfeld, 2015)
WAHTA is the first and currently only NAPSI-certified maple water from Canada that ships nationwide in the
U.S. via Amazon.com. Other NAPSI-certified maple water brands with limited U.S. distribution include SEVA,
OVIVA and MAPLE3. (Pure Canadian Maple Syrup RSS, 2015). OVIVA offers the product in Metro and
IGA supermarket, in the maple items aisle.
Market Overview for Maple Water
Product

Price

Size

Per 500 mL

Vertical Water

$2.99

500 mL

$2.99

Seva

$4.99 $5.99

1L

$2.50 $3.00

OVIVA

$4.99 $5.99

1L

$2.50 $3.00

Maple3

$6.50

1L

$3.25

WAHTA

$2.50

250 mL

$5.00

An overview to Coconut Water Market

Coconut water is the main competitor for our product because it has the same health benefits and gained
popularity among its consumers because of its sweet and refreshing taste. At the present time, the two main
producer of coconut water are ZICO Beverages, LLc. and Vita Coco.

About ZICO Beverages, LLC.:

Founded in 2004 by Mark Rampolla, ZICO Beverages, LLC (pronounced Zee-co) is the maker of ZICO
Pure Premium Coconut Water. With five electrolytes, as much potassium as a banana and low acidity,
ZICO is the all-natural, refreshing way to hydrate and replenish. And because ZICO is the only major
brand of pure premium coconut water available in both a tetra carton and a re-sealable, recyclable, onthe-go HDPE bottle, it truly is the ultimate hydration drink. (El Segundo, 2012)
ZICO Coconut Water, Oradell, N.J., inked distribution agreements with New Age Beverage of
Colorado, Arizona Beverage Co. in Florida and Austin Provisions in Austin, Texas. ZICO will be
distributed and sold in a variety of retail locations, as well as in gyms, yoga studios, spas and natural
food stores. The product is available in Natural, Mango and Passion Fruit Orange Peel varieties.
(Beverage Industry, 2009)

About Vita Coco:

Vita Coco, the No. 1-selling U.S. coconut-water brand, which was launched in 2004 says its revenue
more than doubled in 2011 to nearly $100 million, most of that in the U.S., seven years after co-founder
Michael Kirban began deliveries to New York bodegas on inline skates. The brand is expanding into
chains including Walgreens, CVS and 7-Eleven. Vita Coco holds about 80%, with roughly equal stakes.
The remaining 20% is divided among Vita Coco's 125 employees and more than half a dozen celebrity
investors, including the singer Madonna, actor Matthew McConaughey and fashion designer Diane von
Furstenberg. Vita Coco expects to source about half its coconut water outside Brazil this year. Zico gets
its coconuts from Indonesia, Thailand and Brazil. (ESTERL, 2012)
Vita Coco and O.N.E. originally sourced their coconuts from Brazil, before demands for the beverage
soon exceeded the countrys supply capacity. The major players have since shifted their procurement
strategies to the Asia Pacific. In the Philippines, coconut water export doubled from 5.7 million litres
worth $5.6 million to 10.2 million litres worth US $11.2 million during first half of 2012. Still the big
brands make high margins as they buy coconuts for virtually nothing at the expense of the coconut
farmer. (Roolant, 2014)

An overview to Green Tea Market

Tata Global Beverages Canada Inc. is one of the well-known Canadian company in this market that its green
teas are drunk around the world every day and enjoyed in 70 countries; Tetley is the 2nd largest tea
brand, globally.

About Tetley's Tata Global:

Tetley's Tata Global planning to launch new green tea products, offers Acti Green to tap smaller towns
Tata Global Beverages is looking to cash in on the growing awareness on health and wellness to
reinforce its dominance in the green tea segment in the country by launching new products and tapping
small towns. Green tea accounts for just Rs 300 crore or 1.5% of total tea sales of about Rs 20,000 crore
in India, Grover said, but added that the segment is growing at 50% a year. TGBL has been selling
green tea through its Tetley brand for the past seven years, but consumption has been mostly confined to
major cities. Tetley green tea bags and packets have about 30% share of the green tea market in the
country. With its new offering Acti Green, the company is planning to move to smaller towns. "The
culture of green tea drinking is catching up in the smaller towns in the country though it is yet to
penetrate rural areas," Grover said, adding that the new product has been priced cheaper than Tetley
brand to maximise its reach. (FRPT- FMCG Snapshot, 2014)

About TEAVANA:
TEAVANA is another successful company in providing delicious herbal tea and green tea from the
sweet to the spicy. TEAVANA 's herbal tea has many selections for everyone with every taste. Its herbal
tea packages with different flavours range from $6.98 to $7.98 per package.
According to TEAVANA case study, Datamonitor reports that the US tea retail market was worth $2.5
billion in 2007 and recorded a compound annual growth rate (CAGR) of 2.0% between 2002 and 2007.
Growth forecast over the 200711 periods also shows tea to have the greater potentiala CAGR
forecast at 2.9% compared to 0.6% for coffee. The tea association commented that this growth has been
driven by three main factors: convenience, interest in the healthy properties of tea, and the continued
discovery of specialty tea.
The association's additional findings regarding the nature of the US tea market in 2007 include:
over 85% of tea consumed is iced tea;
82% of tea consumed is black, 17% is green and the rest oolong or white tea;
over 65% of the tea brewed in the US was prepared using tea bags.
TEAVANA 's target consumers are women aged between 30 and 55 years old. This target age range is
lower than the traditional tea drinker: Datamonitor records that the over 55 age group accounts for a
higher percentage of the US tea market than any other age groupat 24.2% in 2006. (Teavana Case
Study, 2008)

Appendix:
Based on Serge Beaulieu, President of the Federation of Quebec Maple Syrup Producers (FPAQ) the NAPSIcertified pure maple water provides great potential for growth opportunities in industry, which already
contributes up to three quarters of a billion dollars to Canada's GDP ($750 million). Maple water, an innovation
developed and sold via collective Quebec marketing strategies, will help promote local economic growth
through the added value generated by the underlying NAPSI process. The FPAQ was founded in 1966 with the
mission of defending and promoting the economic, social and moral interests of its 7,400 maple businesses. The
FPAQ innovates and develops products for the domestic maple syrup industry and with the advantages brought
by collective marketing. The quality of their work and their products has made Quebec the producer of close to
80% of today's global maple syrup output. (Food & Beverage, 2013)
In 2012, Seva Maple Water was launched with Mr. Amantea as chief operating officer, focusing on sales and
marketing, and Mr. Normandin holding the roles of president and CEO, focusing on operations. In its first 10
months of operation, the business landed shelf space with major retailers including Urban Fare and Whole
Foods in California and recorded sales of $210,000. The entrepreneurs had forecast sales of $2 million by the
end of 2014 a target it did not reach. (Teresa Bitti, 2015)

Works Cited:
"The Federation of Quebec Maple Syrup Producers Promotes Launch of NAPSI-Certified Pure Maple Water."
Food & Beverage Close-Up 23 May 2013. Print.
"Maple Water." Pure Canadian Maple Syrup RSS. Federation of Quebec Maple Syrup Producer. Web. 16 Feb.
2015. <http://www.purecanadamaple.com/pure-maple-syrup/maple-water>.
"100% PURE MAPLE WATER." Maple Water. SEVA Maple Water Inc., 1 Jan. 2014. Web. 17 Feb. 2015.
<http://www.drinkseva.com/en/>.
Mary, Teresa Bitti. "Seva Maple Water's Dragon's Den Deal in Limbo as Treliving, Chilton Walk Away."
Financial Post Seva Maple Waters Dragons Den Deal in Limbo as Treliving Chilton Walkaway Comments.
National Post, 26 Jan. 2015. Web. 17 Feb. 2015. <http://business.financialpost.com/2015/01/26/seva-maplewaters-dragons-den-deal-in-limbo-as-treliving-chilton-walk-away/?__lsa=68a9-dc80>.
Blumenfeld, Jenna. "Testing the Waters." Natural Foods Merchandiser. Penton Media, 2015. 12. Print.
"Maple Water." Pure Canadian Maple Syrup RSS. Federation of Quebec Maple Syrup Producer. Web. 16 Feb.
2015. <http://www.purecanadamaple.com/pure-maple-syrup/maple-water>.
EL SEGUNDO. "ZICO Grabs Gold." -- EL SEGUNDO, Calif., Aug. 7, 2012 /PRNewswire/ --. 7 Aug. 2012.
Web. 6 Mar. 2015. <http://www.prnewswire.com/news-releases/zico-grabs-gold-165243116.html>.
"CATEGORY NEWS." Beverage Industry. Ascend Media- Beverage Industry, 1 May 2009. Web. 6 Mar. 2015.
<http://web.a.ebscohost.com.rap.ocls.ca/bsi/detail/detail?vid=7&sid=88cd6a47-80b1-41e7-8a5c-

8108ea4a5522@sessionmgr4003&hid=4107&bdata=JnNpdGU9YnNpLWxpdmUmc2NvcGU9c2l0ZQ==#db=b
th&AN=39878504>.
Esterl, Mike. "The Beverage Wars Move to Coconuts." WSJ. Dow Jones & Company, 11 Feb. 2012. Web. 6
Mar. 2015. <http://www.wsj.com/articles/SB10001424052970203315804577207313086829188>.
Roolant, Lisa. "Why Coconut Water Is Now a $1 Billion Industry | TransferWise Blog." TransferWise Blog.
TransferWise Ltd, 1 Jan. 2014. Web. 6 Mar. 2015. <https://transferwise.com/blog/2014-05/why-coconut-wateris-now-a-1-billion-industry/>.
"Tetley." Tata Global Beverages. 1 Jan. 2015. Web. 6 Mar. 2015. <http://www.tataglobalbeverages.com/ourbrands/brands-overview/brand-detail?brandid=fde0caaa-acb6-4094-ad53-0481902a6d19>.

"FMCG Industry Snapshot." FRPT Research, 23 Nov. 2014. Web. 6 Mar. 2015.
<http://web.a.ebscohost.com.rap.ocls.ca/bsi/pdfviewer/pdfviewer?sid=90f56810-1205-42c9-846846e78289399e@sessionmgr4003&vid=4&hid=4107>.
"The Perfect Cup of Tea, Everytime." Tea Products. 1 Jan. 2015. Web. 6 Mar. 2015.
<http://www.teavana.com/tea-products>.
"Data Monitor." Teavana Case Study, 1 Oct. 2008. Web. 6 Mar. 2015.
<http://web.a.ebscohost.com.rap.ocls.ca/bsi/pdfviewer/pdfviewer?sid=90f56810-1205-42c9-846846e78289399e@sessionmgr4003&vid=11&hid=4107>.