Leading UK naturally sourced bottled water producer Highland Spring has broken ground on a £16 million factory extension for a new production line at its Perthshire home.
The group aims to double production capacity in the next 12 months at Blackford as the UK’s thirst for bottled water grows.
The move is a major gesture of confidence in the sector by the group which has outperformed the market, with a 9.4% year-on-year growth, against a category average of 8.7%.
Les Montgomery, chief executive, said: “UK consumption of bottled water drinks rose 8.2% in 2015 to reach almost 3.3 billion litres, with a retail value in excess of £2.5bn.
“We have great confidence in the underlying strength of the category and our investment plans to drive long-term sustainable growth.
“The factory extension will increase capacity at our main Blackford site by 50%, ensuring we are perfectly placed to meet demand for bottled water as consumers switch from sugary soft drinks to healthier hydration choices.”
The plain water market is expected to reach in excess of 4bn litres by 2020, and the total water drinks market will stand at volume sales of almost 4.8bn litres.
“This is set to be another year of double-digit growth and we’re currently out-performing the market,” he added.
New initiatives at Blackford include a new rail siding to transport up to 60 lorry loads per day by train rather than by road as part of a business commitment to sustainable distribution.
