Highland Spring – brief history

Formed in 1979, Highland Spring is the leading UK produced brand and number one spring
water. It is the number two overall brand in the bottled water sector in Britain; number one
sparkling water brand and leading kids’ bottled water.

Recognised as an iconic Scottish brand, Highland Spring’s brand portfolio sports a

contemporary Tartan Sash design highlighting the product’s authenticity, Scottish provenance
and natural purity.

Highland Spring is drawn from 2000 acres of protected land beneath the Ochil Hills in
Perthshire. It was the first British brand of bottled water to have its land certified organic by
the Soil Association.

To facilitate increased demand Highland Spring reclassified as a ‘spring water’ in April 2007
to manage its water resources more efficiently and give access to at least another 100 million
litres of water a year, without putting stress on the catchment area or local environment.

The Blackford headquarters boasts one of Europe’s most modern plants, with four state of the
art bottling lines, producing one million bottles a day. Over the next four years the company is
investing £30million in its bottling plant, doubling production capacity with three new bottling
lines by 2011.

In 2001 Highland Spring acquired the neighbouring Gleneagles water brand, popular in top
restaurants with its stylish glass bottle. The company also owns Watermedia, the UK market
leader in the niche private sector label.

Championing Kids’ Water

Highland Spring pioneered the kids’ bottled water market in 2001. Today it produces the UK’s
leading children’s bottled water, Highland Spring for Kids, which is sourced from the same
organic catchment area as the parent brand. It comes in a multi-pack of 12x330ml sports
bottles.

In August 2007, the company launched Highland Spring for Kids sparkling which is the first
sparkling kids’ water. Ideal for lunchboxes and kids’ parties and a great way of encouraging
children to drink water regularly, it is available in a 6x330ml multipack.

Many parents may not know the levels of sugar contained in sweetened carbonated and other
soft drinks. Leading nutritionist, Juliette Kellow advises a glass of blackcurrant squash may
contain the equivalent of five teaspoons of sugar while some children’s drinks may contain up
to nine teaspoons of sugar – more than a can of cola.

Despite a growth in the popularity of bottled water among youngsters, carbonated drinks
remain the most popular choice for kids. Currently 68 per cent of children drink one or more
glasses of carbonated soft drinks a day, despite the fact that 98 per cent believe this is
unhealthy and may cause tooth decay (TNS Kids Omnibus).

Juliette Kellow commented: “Encouraging children to drink more fluids is essential to prevent
dehydration. Water is free from fat, sugar, salt and additives and is an essential part of a
balanced, healthy diet for children. It’s also free from calories so is ideal to help prevent
obesity.”

According to the British Dietetic Association the amount of fluid children need varies but
should be about six to eight glasses a day, or more if it’s hot or a child exercises a lot.

Organic Source
Highland Spring’s organic source is a key asset and Patrick Holden of the Soil Association
says: "Highland Spring's commitment to the purity of its product and to caring for the
environment is reflected in the way it looks after the catchment area for its water.”

Highland Spring is drawn from protected organic land in Perthshire where no farming,
agricultural spraying, building or habitation is permitted. The land has been kept free from
pesticides and pollution for more than two decades.

The water takes about 15 years to filter through the basalt and sandstone strata to
boreholes lined with stainless steel which allow the water to be gently pumped to the surface
and then down to the bottling plant in Blackford.

Untouched by human hand, Highland Spring is delivered to consumers exactly as nature

intended with nothing added or taken away, apart from the addition of CO2 for its sparkling
range.

The Environment
Highland Spring is harvested from naturally renewable sources which are constantly
replenished by the ample rainfall in the Ochil Hills. The company is fully committed to
protecting the environment and developing the business in a sustainable, eco-friendly way.
The water is packaged in glass and PET bottles using the safest methods and materials in full
compliance with UK Food Safety & Packaging Regulations and industry codes of best
practice.
Gleneagles

The Gleneagles brand is best known for its award winning, stylish glass bottle and sits
perfectly alongside Highland Spring’s portfolio.

The water plant is situated in the village of Blackford, Perthshire and was originally a
subsidiary of Gleneagles Malting, the successor to Sharps Brewery which operated on the
site of The Maltings until the 1920s.

The water is bottled at source from the Gleneagles valley in the Ochil Hills.

Watermedia
Watermedia is the B2B promotional arm of Highland Spring Ltd, creating custom-designed
branded water bottles for companies aiming to increase awareness of their products or
business at exhibitions, sponsorships, product launches, corporate hospitality events and
conferences.

The company has created personalised branded water bottles for bluechip companies
including Microsoft, Orange, Volvo and the BBC. They have been used innovatively to
enhance marketing campaigns for product launches, exhibitions, sponsorships and corporate
hospitality throughout the UK and Europe, including several Formula One Grand Prix events
with the Orange Arrows racing team and The Royal Bank of Scotland’s Street Party at
Edinburgh’s Hogmanay celebrations.

Watermedia is a successful promotional arm within the Highland Spring group. To date it has
produced over one million bottles each containing Scottish Natural Water from Blackford,
Perthshire.

Notes to editors:

1. Highland Spring reported a turnover of £51.4 million in 2007. It is the biggest

employer in Blackford with 330 employees.
Highland Spring market/product overview

With a 16 per cent share of the UK soft drinks market, bottled water is attracting consumers at
a faster rate than any other soft drink.

More than half of the adult population now drinks bottled water. The market is worth £1.7
billion with 2.19 billion litres consumed in 2007. (Zenith 2008) Nevertheless, only 12 per cent
of adults drink the recommended two litres a day, indicating huge potential for growth in the
years ahead. (TGI 2007)

Highland Spring outperformed the bottled water market in 2007 and was the only top three
brand in growth. It consolidated its number two position by extending its lead over the third
largest brand Volvic, while edging ever close to Evian. The company’s sales grew by 0.2 per
cent in 2007 and its brand share increased to 8.2 per cent from 7.9 per cent of the total
bottled water market in the UK.

Still water is the most popular choice for consumers with 72 per cent choosing it most often.
(TGI 2007)

The kids’ bottled water sector has reached nearly 16 million litres, continuing to offer
significant potential and forecast to reach 40 million litres by 2010.
(ACNielsen/Highland Spring) And with a massive 31 per cent brand share, Highland Spring
for Kids is the leading brand of children’s bottled water. (ACNielsen Feb 2008)

As the leader in the sparkling market with 13.5 per cent brand share, the company sells five
times more than its nearest competitor. (Zenith 2008)

Fifty per cent of consumers believe Scotland produces the purest bottled water, and the same
number regard Highland Spring as the strongest Scottish water brand available, according to
NOP research. (2007)

As well as being the leading UK producer Highland Spring boasts other market leading
positions:
• No 1 doorstep brand through dairies
• No 1 in cash and carry outlets
• No 1 in hotels*
• No 1 in sports clubs*
• No 1 in the travel sector*
(*On Premise AC Nielsen 2007)

Product Range

The portfolio ranges from small 330ml to two litre bottles with easy-to-carry multi-packs
suitable for families.

Highland Spring
Glass Bottles
still : 330ml, 750ml, 1 litre clear glass
sparkling : 330ml,750ml, 1 litre green glass
Plastic
still : 330ml, 500ml, 500ml and 750ml sports cap, 1.5 litre, 2 litre
sparkling : 330ml, 500 ml, 1.5 litre
Multi-packs
still : 6 x 500ml sports-cap
still : 6 x 500ml screw cap, plastic
still: 6 x 1.5 litres
still : 2 x 2 litre plastic
still: 12 x 500ml plastic
still: 12 x 500ml sports-cap
still: 12 x 330ml plastic (kids’ pack)
still : 6 x 2 litre plastic
sparkling : 4 x 1.5 litre plastic
sparkling: 6 x 500ml
sparkling: 6 x 330ml plastic (kids’ pack)

Gleneagles Natural Mineral Water

BENEATH THE RAINBOW : available in top hotels, restaurants and bars
• 75cl sparkling (silver cap)
• 75cl still (blue cap)
• 25cl sparkling (silver cap)
• 25cl still (blue cap)
Watermedia
Plastic
Still : 500ml sports-cap
Glass
Still: 250ml, 750ml
 Sparkling: 250ml, 750ml
Highland Spring offers the most comprehensive portfolio of bottled waters in the UK market to
meet all needs from the stylish glass range for fine dining to sports bottles for on the go.

UK consumer trends

• As a nation Brits spent £1.68 billion on bottled water in 2007. (Zenith 2008)

• A massive 82% of adults still don’t drink the recommended 2 litres of water a day.
(TGI 2007)

• Over a third of consumers prefer to drink water sourced from organic land. (NOP
2007)

• Children’s bottled water is one of the fastest growing bottled water sectors reaching
16.3 billion litres. This amounts to just 0.7 % of the total unflavoured bottled water
market showing huge growth potential. (Nielsen 2007)

• Almost 90% of kids still don’t drink enough water (TNS 2007), but there has been a
58% increase in the number of 11-19 year olds drinking bottled water in the last year.
(TGI 2006)

• More than half of parents don’t know the recommended number of glasses of water a
day their child should drink. (NOP 2007)

• While 60% of women drink bottled water regularly, the biggest increase in
consumption is men with 52% drinking frequently, compared to 31% six years ago.
(TGI 2007)

• Biggest growth is in sports-caps with 31% of the population preferring the

convenience of this format due to people eating and drinking on the go. (NOP 2006)

• 50% of consumers say Scotland produces the clearest, purest bottled water. (NOP
2007)

• Scotland has the second highest proportion of bottled water drinker with 56% of
adults drinking bottled water (compared to 67% of the London population). (TGI 2007)

• Consumers in London are driving the trend towards healthier drinks. In fact sales of
bottled water surpassed sales of cola for the first time in 2006. (AC Nielsen 2006)
Sponsorships / partnerships

As advocates of a healthy active lifestyle, Highland Spring is committed to forging the link
between active sport and good hydration and encouraging school children to adopt healthier
drinking habits.

The company is a major supporter of UK sport and a long-term sponsor of many national and
international events including rugby union, golf, mountain biking, running, athletics, snooker,
windsurfing and tennis.

Sponsorship portfolio
• Exclusive beverage sponsor of Andy Murray, Britain’s number one tennis player. The
20 year-old tennis ace who hails from Dunblane (10 miles from the company’s
bottling plant) displays the brand logo on his shirt sleeve and drinks Highland Spring
as part of his dietary regime. The company also sponsors ‘Team Murray’ comprising
Jamie, the British number one doubles player and 2007 Wimbledon mixed doubles
champion and Judy Murray, one of the UK’s leading coaches.

• Official sponsor of the 2008 GB Davis Cup Team and official bottled water supplier to
the LTA’s commercial programme. Highland Spring will be present at all major LTA
events including each of the International events staged at Eastbourne, Nottingham
and Edgbaston in 2008.

• Official bottled water supplier to World Snooker Association and sponsor of Team
Highland Spring. The team consists of 14 snooker players including Stephen Hendry,
Ronnie O’Sullivan and Ken Doherty. The Highland Spring logo and tartan appears on
the players’ waistcoats

• Official bottled water supplier to 20 Scottish rugby union teams, London Wasps,
Saracens, NEC Harlequins, and Sale Sharks.

• Official bottled water supplier to Johnnie Walker Golf Championship, Paralympic

World Cup, Ladies Scottish Open Golf Tournament, the UK School Games, Scottish
Athletics, UCI Mountain Bike World Cup and HIHO windsurfing in the British Virgin
Islands.

• Highland Spring is also a sponsor of The Edinburgh Military Tattoo and broadcast
sponsor of the Soap Awards, the National Television Awards and the British Comedy
Awards.
Partnerships
Highland Spring works with a number of marketing partners to help build the brand profile
across the UK including:

VisitScotland
Sharing similar brand values focusing on the purity and naturalness of Scotland, the two
organisations have worked together since 2001. Through sampling, advertising and PR the
campaigns promote Scotland as the ideal destination for a short break and Highland Spring
as the source of the purest, freshest bottled water.

The Soil Association Organic Food Awards

To reinforce its organic credentials, Scottish provenance and natural purity, Highland Spring
has supported Soil Association initiatives including the 20th Soil Association Organic Food
Awards and School Food Awards.

Connoisseurs Scotland
Highland Spring has been a marketing partner of Connoisseurs Scotland for over a decade.
The consortium of luxury leisure destinations includes Gleneagles Hotel, The Old Course
Hotel at St Andrews, Inverlochy Castle Hotel and The Royal Scotsman.

Issued by:
Eve Robertson/Sarah Ormerod
3x1 Public Relations
T: 0141 221 0707
E:erobertson@3x1.com/sormerod@3x1.com