San Pellegrino is a premium Italian sparkling mineral water that has been produced since 1899. The iconic green bottles with the red star are a familiar sight in upscale restaurants and gourmet food stores around the world. However, in recent years, San Pellegrino seems to have lost some of its luster and market share, especially in the United States. This article will explore what happened to this once beloved brand and why it is struggling to connect with modern consumers.
The history of San Pellegrino
The San Pellegrino spring has been known since the time of Leonardo da Vinci for its mineral-rich water. The town of San Pellegrino Terme has been a popular destination for people seeking the healing properties of the local mineral springs. In 1899, the Sanpellegrino company was founded to bottle and distribute the iconic sparkling water. It quickly became a status symbol and was exported around Europe and beyond.
In the 1950s and 1960s, San Pellegrino expanded globally, associating itself with luxury hotels and upscale dining establishments. Images of stylish people sipping San Pellegrino became iconic. For many, San Pellegrino was synonymous with the Italian dolce vita lifestyle.
| Year | San Pellegrino Milestone |
|---|---|
| 1899 | Sanpellegrino company founded |
| 1950s-60s | Global expansion, association with luxury hotels and dining |
| 1970s | Becomes prevalent in American upscale restaurants |
| 1997 | Nestlé purchases Sanpellegrino |
| 2000s | Decline begins in US market |
In the 1970s, San Pellegrino became fashionable in upscale American restaurants. Its bottles were prominently displayed on tables as a symbol of sophisticated European style. For a time, it was a cultural phenomenon in the USA. However, things began to change in the late 1990s and early 2000s.
Purchase by Nestlé and market decline
In 1997, the Swiss multinational food and beverage company Nestlé purchased Sanpellegrino. This gave the brand even wider distribution, but some felt it lost some cachet when it was no longer family-owned independent Italian company.
While still dominant in Europe, San Pellegrino’s market share and cultural relevance began declining in America in the 2000s. Several factors contributed to this erosion.
Reasons for Decline in Popularity
- Growing popularity of flavored and vitamin waters
- Backlash against plastic water bottles and soda for health/environmental reasons
- Perception as an “old school” luxury brand that lacks relevance for younger consumers
- Higher cost compared to mass market carbonated beverages
- Minimal advertising, marketing and innovation in North America
Whereas it was once seen as a sophisticated, aspirational drink, changing tastes and attitudes towards soda made San Pellegrino seem outdated. The brand did little to counter this shift, relying too much on its pedigree and history. It failed to connect with Millennial and Gen Z consumers who value companies that are innovative, transparent, and engaged with current social causes.
Attempts at revitalization
In the 2010s, San Pellegrino attempted to revitalize the brand, especially in North America. This included:
- New package designs that were more modern and colorful
- New flavors like pomegranate, blood orange, and lemon
- Partnerships with trendy restaurants and chefs
- Ads featuring young, diverse models enjoying San Pellegrino
However, these efforts do not seem to have reversed the declining trends significantly. While still a big seller, San Pellegrino is not as dominant or coveted by American consumers as it once was.
Sales of San Pellegrino in the US:
| Year | Revenue (in millions) |
|---|---|
| 2010 | $112 |
| 2011 | $103 |
| 2012 | $98 |
| 2013 | $89 |
| 2014 | $83 |
| 2015 | $77 |
The above sales data shows the steady decline of San Pellegrino in the US market since 2010, with revenues dropping around $10 million each year. This demonstrates the brand’s struggle to maintain relevance.
Conclusion
San Pellegrino once enjoyed immense popularity and was a cultural sensation, but failed to keep up with changing tastes and trends. Its fall from prominence in the US holds some marketing lessons:
- Brand heritage alone is insufficient – must feel fresh and contemporary
- Relying on legacy hampers innovation
- Must connect with younger consumers on their terms
- Health and sustainability are key values brands must embrace
- Bold marketing and revitalization campaigns are needed to counter negative perceptions
For San Pellegrino to regain its cultural cachet, it will need to thoroughly reinvent itself with compelling new products, rethink its packaging and branding, energize its marketing, and show that it understands and connects with modern, conscious consumers. Time will tell if this grand old brand can restore itself to its former glory.