Highland Spring to invest £16m at Perthshire site

Producer of naturally sourced bottled water Highland Spring has plans for a major factory extension to accommodate a new production line at its Blackford site in Perthshire.

The business will invest £16m is being invested as part of its commitment to doubling production capacity over the next 12 months, following rise in the UK’s consumptihighlandon of bottled water.

This move follows a 9.4% year-on-year growth in the last year for the group, against a category average of 8.7%. Highland Spring has seen

Chief executive Les Montgomery commented: “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.”