Company revenues rose 10.2% to £163.4m, cementing its position as the UK’s largest water brand.
Highland Spring Group reported an increase in revenues and operating profits for 2025, stating it outperformed a strongly growing category to cement its position as the UK’s largest water brand by volume and value. Revenues for the year rose by 10.2%, an increase of £15.1m, reaching a total of £163.4m. Operating profits also saw a rise of £1.9m, closing the year at £16.1m.
The UK bottled water category experienced a record year in 2025, with total retail sales growing by 13.5% to £2.1bn. Highland Spring recorded its strongest ever sales performance, with brand retail sales increasing by 29% to £258m. This growth was attributed to increased distribution of its core range and strong performance from its new flavoured still water offering, launched in 2024, which allowed the company to enter the £466m UK flavoured water category that grew by 14% in 2025.
Continued investment at the company’s Blackford site in Perthshire supported this performance, including a £10m spend on new production capabilities. This investment unlocked approximately 25% additional annual production capacity for the group.
Simon Oldham, Managing Director of Highland Spring Group, commented on the results: “I am incredibly proud of our performance, which cements Highland Spring as the nation’s favourite bottled water brand. We continue to make good progress towards our ambition to become a £500m brand in retail sales. We’ve continued to invest heavily in our team, brand and capabilities to meet the continued strong demand for healthy hydration, as well as the potential we see for our future flavoured water business.”
Despite the positive results, the company highlighted concerns regarding increasing inflationary pressures across its cost base. Rising oil prices are impacting logistics and raw material costs. The added cost of regulation, particularly the spiralling cost of mandated Packaging Recovery Notes (PRNs), which have reportedly more than doubled in a year, was also noted as a significant concern for the food and drink industry.
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Oldham added, “But we cannot be complacent. We are facing increasing inflationary pressures across our cost base, driven by rising oil prices which are impacting on logistics and raw material costs. The added cost of regulation is also a concern, specifically the spiralling cost of mandated Packaging Recovery Notes (PRNs), which have more than doubled in a year, and are putting real pressure on the food and drink industry. We call on the UK Government to urgently review the PRN market in line with their commitment to cut the cost of living for British families.”
Looking to 2026, the group stated its priority is to maintain momentum, continuing to build market share and extending its flavoured still water offering as it progresses towards its £500m milestone. The company is also preparing for the incoming UK Deposit Return Scheme, scheduled to launch in October 2027.
As part of its commitment to sustainability, Highland Spring announced a partnership with The Woodland Trust in early 2026. This collaboration supports woodland creation and restoration across 1,200 hectares at Glen Devon Woodlands in the Ochil Hills, Perthshire.
