Voss Water international marketing plan for the Turkish market

Voss Water

Today, Turkey is emerging as an increasingly important nation that serves as a bridge between the Middle East and the European Union and points beyond. Turkey's full membership in the European Union appears to be a matter of when rather than if, and the Turkish population has enjoyed the economic benefits of a secular state seeking to become a full partner in the international community. Cities such as Ankara and Istanbul are becoming a cosmopolitan amalgam of the best that Europe, the Middle East and Asia have to offer, and the growing Turkish middle class is eager to spend their discretionary income on Western goods that communicate good taste and top-notch quality as evidence of their new affluence. In this environment, there are numerous opportunities for marketers of consumer goods to establish a foothold in this market by creating strategic alliances with local partners and through online sales to Turkish consumers that have embraced the Internet in a major way. While the metaphors abound concerning Turkey's historic role as a bridge between the West and the East and its importance to the West, there is also ample evidence as well that the country is well situated to become an economic powerhouse in the future by taking advantage of its geography, educated workforce and evolving membership in the European Union to join the ranks of developed nations around the world. The purpose of this study was to identify opportunities in Turkey today for a high-quality bottled water product, Voss Waters of Norway. A critical review of the relevant peer-reviewed and organizational literature is followed by a summary of the research and timely recommendations in the conclusion.

Chapter 1: Introduction

Statement of the Problem

Purpose of Study

Importance of Study

Scope of Study

Overview of Study

Chapter 2: Review and Analysis

Chapter 3: Conclusion and Recommendations

Voss Water International Marketing Plan for the Turkish Market

Chapter One: Introduction

Today, Turkey represents one of the most promising markets in the European Union (EU). Although the nation does not yet enjoy full membership in the EU, it is well on the way to achieving it and all signs suggest that it is only a matter of when rather than if. Moreover, Turkey enjoys a relatively high literacy rate for the region, and has a growing middle class that possesses more and more discretionary income. In addition, Turkey has historically sought out Western styles and goods and its secular state has long been a staunch ally of the United States and is the only Muslim member of the North Atlantic Treaty Organization. Indeed, Turkey is like "one of the gang" when it comes to many consumer goods that are popular in the West. Therefore, the concept of bringing the prestigious Voss Water to the emerging market in Turkey represents an idea whose time has come.

Voss is a Norwegian brand that was founded by two high school friends, Ole Christian Sandberg and Christopher Harlem. The Voss brand is built around providing a high quality product to its consumers around the world. The company consistently emphasizes the pristine nature of the source for its product, and shamelessly promotes it by selling it in designer bottles that cost much more than the water itself. In fact, a glass of Voss water can easily cost more than a glass of good wine, so there must be something truly compelling about what is going on at Voss that suggests these marketers know what they are doing. Therefore, the reason for picking this particular brand is due to its bottle design and brand image more than its quality. Voss is a fairly a new brand, which began competing in the market in April 2000 and continues to show strong signs of growth today.

Statement of the Problem

The future will show that water is far more important than oil, and its importance to the survival of mankind cannot be overstated, but the importance of bottled water for many consumers today appears even greater. "Bottled water costs on average several times what we pay for gasoline, roughly $8 per gallon. It is more expensive than milk, per fluid ounce, and about the same as coffee, soft drinks, and most fruit juices." Nevertheless, According to Greco, Mazze, and Michman, "One of the most important changes in the soft drink industry has been the decline of diet drinks and colas. Many consumers are becoming more health-conscious and favor drinking bottled water. Coca-Cola and Pepsico did not foresee changes in consumer behavior patterns and allowed Perrier and the bottled water industry to gain a foothold in the soft drink industry." Like the once-nascent Perrier brand, today, Voss Water represents yet another promising up-and-comer in the global bottled water industry, but the competition is fierce and consumer tastes can be flighty and unpredictable. In this environment, identifying what a targeted market wants from a product is just good business sense, and the bottled water industry is no exception.

Purpose of Study

Why Turkey? By reason of its geographically strategic position, Turkey plays a vitally important role in uniting Europe and Middle East. It is also a rapidly developing country that is starting to be influenced more and more by Western culture. For example, Kubicek emphasizes that, "Since the beginnings of the Ottoman Empire, Turkish foreign policy and popular imagination have been both captivated and repelled by Europe. A leitmotif in modern Turkish history has been the effort to modernize society in the image of Europe." Likewise, Nation points out that, "As a secular state with democratic institutions and an overwhelmingly Muslim population, Turkey is often regarded as a potential model for the Islamic world as a whole. Its pro-Western strategic orientation has made it a reliable and much appreciated U.S. ally." The appreciation is mutual, it would seem, and the Turkish people (notwithstanding some influential quarters that do not want any further Westernization of their country and its religion) have historically embraced much of what the West has to offer.

Importance of Study

In terms of timing, today represents an enormous opportunity to introduce a high quality European product in Turkey. Companies that act today will be well positioned to reap the benefits of expanding Turkish membership in the European Union and will be able to use this country as a springboard to further expansions throughout the Middle East in the future. For this purpose, Turkey's geographic placement in the world is going to be a great help to experiment for Voss to see how they might do in the Middle Eastern countries in the future. Today Turkey, specifically Istanbul, is a rapidly growing niche market. Due to its early adopter and experiencer target market status, positioning this product will likely be a promising success. In order to reach its potential customers, the main marketing approach to be used will be promotion through high-end restaurants and hotels and later or expanding to the general public and online sales.

Scope of Study

The general focus of the study will extend to the global bottled water market with a specific focus on how these trends will likely play out in Turkey in the near and long-term.

Overview of Study

The study uses a three-chapter format to develop the background required and to provide an overview of Voss Water and the industry in which it competes. An analysis of the emerging market in Turkey and what steps the company can take to gain a foothold there as well as additional market share in the future is followed by a summary of the research in the conclusion together with recommendations for the decision-makers at Voss Water.

Chapter Two: Review and Analysis

Introduction.

This chapter provides a critical review of the peer-reviewed and scholarly literature concerning Voss Water and its executive cadre and a representative sampling of its packaging, an overview of the bottled water industry in which it competes including a recent ruling by the European Commission concerning the bottled water market in the EU, and a discussion of why people are buying more bottled water. A discussion of some salient current economic indicators for Turkey is followed by a discussion of consumer lifestyles and trends in Istanbul today.

Voss Water Overview.

A combination of abundant natural resources and savvy marketing acumen among its founders has resulted in the company known as Voss Water today. According to the company's official Web site, "Though Norway is a small country, its vast pristine nature is home to some of the best spring and artesian water sources on Earth, and most Norwegians see it as a national benefit to live off this pure and amazing tasting drinking water. Ole and Christopher felt it was time to share this delicious water with the world. They spent the next 2 years traveling the world, researching the potential markets. With the persistent conviction that they should provide only the highest quality water - to the highest quality accounts - in the highest quality package, an idea was born: share this naturally delicious tasting water with the rest of the world in a bottle equally unique, reflecting classic elements of nature."

As will be shown below, the bottled water market is increasingly competitive and consumers have a dazzling array of choices available to them. It is clear that Voss has taken this into account when developing its sophisticated packaging, some samples of which are shown in Figure ____ below.

Figure ____. Representative Sampling of Voss Packaging Techniques.

Source: noisedfisk.com/illustrations/vosswater.jpg, www.uncrate.com/men/images/voss-water.jpg, http://www.urbanfare.com/featuredfare/images/weeklyad/voss_water.jpg

In fact, one new admirer of the Voss brand unashamedly proclaimed that even though she liked the water, it was the "wicked cool" Voss packaging that sold her: "Yesterday, I drank a few bottles of Voss Artesian Water from Norway. One was Still. One was Sparkling. Both were pretty good but its wicked cool glass bottle is the best thing about it. My friend Sharon said she paid $20 for a bottle of Voss at the tres upscale Michael Mina Restaurant in San Francisco, which was more than she paid for a glass of wine!"

The marketing literature provided by AquaMaestro, an online marketer of quality bottled waters, enthuses that, "Voss Artesian bottled water is taken from a virgin aquifer that, according to the company, has been shielded for centuries under ice and rock in the untouched wilderness of Central Norway. Perhaps more to the point in today's world of lifestyle trends, Voss's stunning cylindrical package has quickly developed a superior image and significant market share in the ultra-premium bottled water segment." Like some American milk producers (i.e., Braum's) adding additional butter fat content to their milk to make it taste better, Voss also adds bicarbonate to the sparkling version of its product, thereby accounting for its elevated mineral content compared to its still version of the product.

Today, Voss water is bottled and marketed by Voss of Norway ASA, a Norwegian Limited Company, headquartered in Oslo, Norway. The company's board of directors include chairman Knut Brundtland, Magne Jordanger, Arne Hjeltnes, Eva Kempe-Forsberg, Lars Hoie, Anitra Steen and M. Hadly Mullin. Other key executives at Voss include CEO Morthen Johannessen, founder Ole Christian Sandberg, VP Operations Stian Kjellemyr Eilertsen, VP International Sales Siri Titlestad, VP Emerging Markets Thomas Weeden and Legal Counsel Gard Skogstrom Andreassen; the company's organization in the U.S. is headed by Ole Chr. Sandberg. Voss of Norway ASA also owns Energy Group as, the company behind G. Pure Energy, an energy drink available in the United States. The board of directors of Voss of Norway ASA consists of chairman Knut Brundtland and directors Eva Kempe-Forsberg, Arne Hjeltnes, Hadley Mullin and Andreas Boquist.

The Growing Market for Bottled Waters.

The growing demand for bottled water today can be attributed to two primary sources: (a) increasing health- and taste- consciousness among consumers and (b) the wide range of marketing techniques being used to promote its consumption, and these issues are discussed further below.

Perhaps as a sign of the increasing presence of effluents in the nation's drinking water, although it may be safe, tap water usually does just not taste as good as bottled water. Even store brand bottled waters cost far, far more than their tap water counterparts, so empirical observations suggest there may be something to the taste issue. According to Pip, "Annual consumption of bottled water in North America and Europe is substantial. Many consumers choose this alternative because they dislike the taste of chlorinated tap water, or because they believe that bottled water contains fewer contaminants and is a healthier choice."

In this regard, the safety factor of bottled waters is cited as one of the reasons for its increasing popularity in the U.K.: "Not long ago, the British would never have considered drinking bottled waters, spending a weekend in the jacuzzi of a health farm, or giving birth in water pools in hospitals." Notwithstanding the health considerations involved, there are also some taste factors that must be taken into account. In fact, even the best bottled water just tastes like, well, water, which is to say like nothing, which accounts for the addition of flavors by Perrier and others to provide consumers with the experience that they are in fact tasting something.

The growing brands being offered for sale in the bottled water market today in the United States and the EU include a wide range of domestic and imported spring and mineral waters, tap waters that have been treated by filtration, reverse osmosis, or distillation, and miscellaneous waters supplemented by the addition of specific salts. To complicate matters from the consumers' perspective, labeling standards in the bottled water market remains highly varied. According to Pip:

Label designs can feature attractive pictures of blue mountains or glaciers that may bear no relationship to the actual provenance of the water. Descriptions of the product often contain terms that imply purity, such as 'glacial,' 'alpine,' 'natural,' 'crystal,' 'premium,' or 'pure.' Unfortunately, definitions of terms differ in various jurisdictions and in the understanding of individual bottlers. The water source is not always identified on the product, and a brand may use more than one source.

Coke and Pepsi enjoyed a long ride, but like the Model T, consumers today want more choices and water is no exception. In this regard, one analyst notes that, "The world of the one perfect soft drink for everyone is gone. The bottled water industry has come a long way since Canada Dry started marketing water as a mixer in other drinks in the early 1980s. Bottled water sales have tripled in the past ten years to $5.7 billion in 2000. and, women constitute the majority of bottled water drinkers" (emphasis added).

The results of a recent survey of young London women provided some valuable guidance for the marketers at Voss. The study determined that there is in fact a demand for an alternative to plain water, provided that the taste is very subtle, as well as a demand for added nutrients, provided that they were natural and low-calorie; the survey also found that women wanted a fully recyclable, portable bottle with a wide neck (something which the author suggests involves not smearing lipstick). Based on their historic propensity to closely follow Western trends, as a representation of what may be expected in the Turkish market, more than 50% of all Americans drink bottled water and spend 240-10,000 times more per gallon for bottled water than they do for completely safe and potable tap water, a trend that has largely been fueled by the notion that bottled water is safer and healthier than tap water.

While bottled water may taste better, there are also some other compelling reasons for purchasing one brand over another. According to Gabriel, "The scenario seems to repeat itself ad infinitum: you might see the president of the United States drinking from Poland Springs at the inauguration or a member of the Backstreet Boys quaffing Ice Mountain in an MTV interview -- all of it free advertisement, solidifying bottled water's spot in the collective consciousness. And it just must be driving the folks over in product placement crazy." The bottled water market is in fact just part of a larger trend.

Today, marketers of a diverse line of consumer products are increasingly focusing on younger consumers with brand names that evoke images of an elegant lifestyle and they are doing it in droves. Some observers suggest that this is due in large part to the messages being communicated to these young consumers concerning how these products can add to this perception of elegance and luxury - all at an affordable price. After all, many people today can afford to purchase the very best of some products, such as a cigar or in this case, a bottled water, to achieve this level of satisfaction if only for a fleeting moment and to impress their friends. In this regard, Twitchell suggests that bottled water marketers have not been idle in response to these trends and are promoting their brands for this purpose: "This phenomenon explains why companies like Starbucks and Ben & Jerry's are appearing on street corners in poor urban neighborhoods; why Gen Y-ers are clutching bottled water with French names and cigars with Cuban wrappers." In fact, some high-quality bottled waters such as Evian are even being marketed "as if they were a liquor."

According to Greco and his colleagues, "Coca-Cola and Pepsico did not foresee changes in consumer behavior patterns and allowed Perrier and the bottled water industry to gain a foothold in the soft drink industry." Perrier managed to achieve this marketing feat by employing a product positioning strategy that allowed it to capture a larger share of the soft drink market: "Perrier positioned its product in consumers' minds as an alternative to soft drinks. A product's position is the complex association of perceptions, impressions, and feelings that consumers maintain for the product as compared to competing products." In order for the company to achieve this goal, though, sales of the Perrier brand had to be extended to the public through supermarkets where it was displayed in the same aisle as soft drinks; in the past, Perrier had only been sold through health food and gourmet shops. For example, these authors add that, "Perrier managed to overcome obstacles to motivate independent soft drink bottlers and beer distributors throughout the United States to distribute Perrier and continually replenish store shelves. Perrier is now marketed with natural flavor in variations of lemon, lime, orange, and berry. The product is calorie-free and natural. Perrier is competing with soft drinks by offering flavored water."

More importantly, like the up-and-coming Voss, Perrier is competing by selling a concept of high quality and sophistication because it is one of the "Cadillacs" of bottled waters. Furthermore, and like the marketers at Voss, the consumer-savvy marketers at Perrier satisfied an identified consumer need for convenience by offering their products in cans that people could easily take to work, picnics, or consume by the pool and the company emphasizes that it is environmentally responsible by providing glass and plastic bottles that are recyclable. It is reasonable to assume that many consumers that purchase Voss will keep the packaging for reuse in their homes as vases or knick-knacks, and to impress their friends by casually showing that they can afford to drink the product

Unlike Voss's success to date, though, the road to success has not been without some rocky spots for Perrier. The initiatives that Perrier took during one such episode may prove useful for Voss in the future, though. In 1989, all Perrier mineral water in the U.S. was recalled because benzene traces were found in samples; at the time, the company's president, Ronald V. Davis, advised American consumers that there was no significant health risk and emphasized, "We're trying to act aggressively and responsibly in the interests of the public." In response to the temporary absence of Perrier's products, competitors such as Evian, Pepsi (H20h!), and even Coors "Rocky Mountain Sparkling Water" began aggressively promoting their products to take up the slack. According to Soares, by 1990, "The $2.2 billion bottled water market was spilling over with competitors. By mid-1990, Perrier had sprung back with soft, new advertising showing cavemen enjoying Perrier water. Perrier showed that they were still floating."

The Bottled Water Industry in the European Union.

As noted above, the demand for bottled waters continues to grow at record rates throughout the European Union today. Not surprisingly, then, there have been some important precedential cases that have developed in the bottled water market in the EU in recent years as well that may have some relevance for Voss's efforts to expand its market to Turkey and points beyond in the future. In his book, EC Competition Law, Goyder reports that, "There are a number of national competition law systems in the EC, including both Germany and the United Kingdom, under which mergers can be prevented or subjected to conditions if either they are seen to enable single undertakings to acquire undue degree of market power, or the outcome of the transaction will be to place two or more companies in a position of joint dominance."

In this regard, the European Commission has gone on record as being in favor of increased competition for the bottled water market, which may serve to Voss's advantage early on but may represent an impediment for growth and expansion in the future. For example, when Nestle attempt to buy out Perrier in 1992, it was willing, in view of its existing large market share, to sacrifice its Volvic brand to another concern, BSN, as part of the deal (which would have also served to equalize their market shares while leaving in the aggregate the large two companies with a share of 82 per cent), the European Commission (EC) held that:

Para 120: The reduction from three to two suppliers (duopoly) is not a mere cosmetic change in the market structure... The reduction from three to only two national suppliers would make anti-competitive parallel behaviour leading to collective abuses much easier.

Para 121: The mineral water suppliers in France have developed instruments of transparency facilitating a tacit co-ordination of pricing policies...

Para 123: Their reciprocal dependency thus creates a strong common interest and incentive to maximise profits by engaging in anti-competitive parallel behaviour. This situation of common interest is further reinforced by the fact that Nestle and BSN are similar in size and nature, both active in the wider food industry and already co-operate in some sectors of that industry.

Based on the foregoing findings as to the nature of the bottled water market in the European Union, the EC concluded in para. 131 of its decision that "the market structure resulting from the merger... would create a duopolistic dominant position on the French bottled water market which would significantly impede effective competition and would be very likely to cause a considerable harm to consumers." Notwithstanding this temporary setback, Nestle recently announced that it would merge in Turkey with the country's number one bottled water group, Erikli, to.".. take better advantage of Turks' growing thirst for mineral water. Nestle Waters will hold a 60 per cent stake of the merged company, although Erikli president Hasan Aslanoba will become its chief executive. The deal, if approved by competition authorities, hands Nestle Turkey's leading premium bottled water brand at a time when the market is consistently reporting double-digit volume growth." The deal, if approved by the EC, will also spell some trouble for Voss if and when it enters the Turkish market, but Nestle Waters reports that it is pursuing this initiative for the same reasons that would be attractive to Voss. The chairman of Nestle Waters, Carlo Donati, reported that the intended merger "reinforces our local distribution, offers interesting synergies, promotes the growth of our international brand Nestle Pure Life, and allows us to establish a leading market position." In fact, Nestle Waters already has two production plants in place in Turkey and enjoys annual sales of around $30 million. According to Mercer:

Expansion in Turkey shows how Nestle has increased its focus on emerging bottled water markets after a difficult time in parts of Western Europe. Nestle Waters recently returned to growth in Europe thanks to new products, notably lower priced Aquarel water, and a re-branding of its iconic Vittel brand. but, the group said last autumn the market remained challenging, with a "consumer shift towards private label and lower-priced bottled waters." The firm confirmed earlier this year it was examining how to re-organise its 75 bottled water brands in order to re-focus marketing efforts.... Nestle Waters recently overtook Danone to become the world's largest bottled water producer, with an 18 per cent share of global market value.

Based on the foregoing, it is clear that things have been hectic for the global bottled water industry over the last three decades or so, and it appears things are going to pick up before they slow down in the future as well, particularly in emerging nations such as Turkey that seek to emulate what is popular in the West by eating, drinking, driving, dancing to it, watching it on television and wearing it. Because Voss already has in-house legal expertise concerning EU regulations and procedures for expansion into the Turkish market, it will be assumed for the purposes of this analysis that the regulatory way is clear for them to pursue new marketing initiatives throughout the country, with a particular focus on cosmopolitan cities such as Ankara and especially Istanbul, and these issues are discussed further below.

Emerging Consumer Markets in Turkey.

While the 21st century may be the "Century of Asia," it is clear that the effects of globalization are having some profound effects in other parts of the world as well. Based on the rigorous economic reforms taken pursuant to Turkish leaders' frenetic desire to become a full member in the European Union and favorable economic indicators in recent years, it would appear reasonable to assume that these trends will continue in the future and the people of Turkey will represent a potential market for a wide range of consumer goods from the West. In this regard, analysts at the CIA report that although agriculture remains an important part of Turkey's economy, it is diversifying and becoming more responsive to international trends. "Turkey's dynamic economy is a complex mix of modern industry and commerce along with a traditional agriculture sector that still accounts for more than 35% of employment," they advise. "It has a strong and rapidly growing private sector, yet the state still plays a major role in basic industry, banking, transport, and communication." Turkey's growth in real GNP has exceeded 6% in a number of recent years; however, there have been some downturns experienced in output in 1994, 1999, and 2001 but the economy is rebound today following the implementation of various economic initiatives. As a result, GDP growth in 2004 was a robust 9%, followed by an approximate 5% annual growth during the period from 2005-06; in 2005, inflation fell to 7.7% (a 30-year low); however, inflation remains a problem at 9.8% in 2006.

Some relevant demographic, financial metrics and cultural metrics for Turkey are provided in the tables and figures below.

Table 1.

Population and Age Structure.

Metric

Estimate

Population:

71,158,647 (July 2007 est.)

Age structure:

0-14 years: 24.9% (male 9,034,731/female 8,703,624)

15-64 years: 68.1% (male 24,627,270/female 23,857,507)

65 years and over: 6.9% (male 2,253,383/female 2,682,132) (2007 est.)

Figure ____. Overall age structure of Turkish population (2007 estimates).

Source: Based on tabular data in Turkey, 2007.

Figure ____. Age structure of Turkish population by sex (2007 estimates).

Source: Based on tabular data in Turkey, 2007.

Table ____.

Selected Demographic Features of Turkey (2007 estimates).

Metric

Estimate

Median age:

total: 28.6 years male: 28.4 years female: 28.8 years (2007 est.)

Population growth rate:

1.04% (2007 est.)

Literacy:

definition: age 15 and over can read and write total population: 86.5% male: 94.3% female: 78.7% (2003 est.)

Source: Based on data in Turkey, 2007.

Figure ____. Median Ages in Turkey.

Source: Based on tabular data in Turkey, 2007.

Figure ____. Literacy Rates (defined as age 15 and over can read and write) in Turkey.

Source: Based on tabular data in Turkey, 2007.

Relevant economic indicators for Turkey are shown in the tables and figures that follow below.

Table ____.

Economic Indicators for Turkey (2006 estimates).

Indicator

Estimate

GDP (current U.S.$) (billions)

GDP growth (annual %)

GNI per capita, Atlas method (current U.S.$)

Inflation, consumer prices (annual %)

Foreign direct investment, net inflows (% of GDP)

Unemployment, total (% of total labor force)

Time required to start a business (days)

Internet users (per 1,000 people)

Source: World Bank Economic Indicators, 2007.

As can be readily seen from the above economic indicators, Turkey represents a burgeoning market for a wide range of consumer goods from the West, and given their growing use of the Internet and the presence of Internet cafes and the like throughout Istanbul and tourist areas of the country, some marketing avenues are already in place for Voss as well.

It should be pointed out, though, that the people of Turkey are the heaviest taxed in the world today as shown in Table ____ and Figure ____ below.

Rank

Countries

Amount

Turkey:

Sweden:

Belgium:

France:

Hungary:

Finland:

Poland:

Greece:

Italy:

Germany:

Netherlands:

Denmark:

Spain:

Slovakia:

Austria:

Czech Republic:

Norway:

Source: NationMaster, 2007, available: http://www.nationmaster.com/graph/tax_tot_tax_wed_sin_inc_fam-tax-wedge-single-income-family.

Figure ____. Total Tax Wedge: Single-Income Family by Country.

Source: Based on tabular data in NationMaster, 2007.

While Voss enjoys some experience with the European and North American markets, it has not marketed its products in a Muslim nation to date; therefore, in spite of the many commonalities and shared values between the EU and Turkey, there are some fundamental differences as well that must be taken into account when formulating any marketing initiative. The cross-cultural analysis developed by Hofstede is useful for this purpose. As shown in Figure ____ below, there are some profound differences between the Norwegian culture in which Voss operates and the culture of Turkey.

Figure ____. Five-Dimension Cross-Cultural Analysis of Norway and Turkey.

Source: Geert Hofstede, 2007, available: http://www.geert-hofstede.com/hofstede_dimensions. php?culture1=65&culture2=93.

Note: An explanation of the categories as they relate to Turkey is provided in the table at Appendix a.

According to Mercer, the market for bottled water in Turkey.".. has gone from strength to strength recently as consumers become richer and more health-conscious about their soft drinks. The market is currently sized at nearly seven billion litres, but Nestle said it expected this to reach 10 billion in the next five years. Per capita consumption is 90 litres, compared to 112-litre average for Western Europe.

Finally, as a reflection of the increasingly sophisticated tastes of Turkish consumers for different beverages today, the demand for beer, cider and flavored alcoholic beverages in Turkey increased between 2000-2005 at an average annual rate of 3.8%.