Categories
Bottled Water

The Cost and the Numbers

Bottled Water – A Series of Blogs on the Growth of the Bottled Water Industry.

Part III-“The Cost and the Numbers”

Water is better for the body than soda. There are many reasons for the recommended eight glasses of water per day while limiting soda, or better yet, avoiding soft drinks and other sugary drinks altogether. Water has numerous health benefits overall and is the best liquid for your health. These are givens.

Are plastic water bottles safe for our planet and waterways? Absolutely not!

We are not trying to start any battles with large conglomerates who control this industry. We just are laying out some facts for you to help determine your opinion.

First, let’s look at the numbers:
Nestle and the negotiators at the Sacramento Watershed came to the agreement that Nestle would pay .99 cents per 100 cubic acre-feet of water. More simply put, Nestle pays .0000000304 cents per gallon to obtain water from the aquifer at the average price of $1.25/liter that equates to a sale price of $4.72/gallon.

Nestle has also been siphoning water from the San Bernardino National Forest on a special use permit that lapsed 27 years ago, which has been causing considerable controversy in California.

Michigan, a water-rich state surrounded by four of the five Great Lakes, charges high-volume, self-supplied water bottlers like Nestle and Absopure only $200 per year in paperwork fees to operate. There’s no state tax, license fee or royalty associated with the company’s extraction of a precious natural resource.

How does Nestle get these deals you might ask? Under the premise that water is a human right. The New York Times in its May 24, 2017, article about the water rights in Michigan wrote, “Actually, it is standard; landowners and commercial businesses have long had rights in much of the United States to use as much water as they want free if they drill and pump it themselves. Even customers on municipal water systems technically pay not for the water they use but for infrastructure and energy to deliver it.”

So they get these deals based on the premise that water is a human right? Hmm, I’m confused.

There has been a lot of talk in the media about Nestle’s CEO comments on this subject stating that “water is not a human right.” In fairness to Nestle, they said they were misquoted and had detailed this on their website. The best explanation I have found is a Blog by the Huff Post ( read it here> http://www.huffingtonpost.com/george-mcgraw/nestle-chairman-peter-brabeck-water_b_3150150.html ). This blog takes the emotion out of the statement and looks at the root of the issue.

Additionally, apart from the Human Right issues; we have to look at the environmental impact on our planet. Again here are some numbers:

  • Last year, the average American used 167 disposable water bottles, but only recycled 38.
  • US Consumers use 1,500 water bottles every second.
    We use 17 million barrels of oil just to make the water bottles, and this does not include the oil used in transportation.
  • Over the last ten years, we have produced more plastic than during the whole of the last century.
  • It takes 500-1,000 years for plastic to degrade.
  • It takes three times the volume of water to manufacture one bottle of water than it does to fill it, and because of the chemical production of plastics that water is mostly unusable.
  • Plastic constitutes approximately 90 percent of all trash floating on the ocean’s surface, with 46,000 pieces of plastic per square mile.
  • One million seabirds and 100,000 marine mammals are killed annually from plastic in our oceans.

Staggering numbers!

So to go back to our original question. Is the growth of the bottled water industry a good thing? Definitely not.

What is the solution?

We will look into that, in the next segment of this series. Stay tuned.

Categories
Bottled Water Industry Manipulation

Marketing Trick of the Century

After reflecting on the history of bottled water, the next question is, “How did it become a $15 billion dollar industry and surpass soda and soft drinks as the number one beverage?”

In short, years ago, the consumable drinks industry took notice of the dwindling infrastructure of our water systems. Through their marketing efforts, they capitalized on the rich history of bottled water and brought it to us all. Clean and safe water was now available for everyone.

They also capitalized on the health-conscious trend in numerous ways. Big drink companies (like Coke, Pepsi, and Nestle) understood that their traditional “Kingpin of Earnings” aka soda products had shortcomings in this new found health trend. So they adjusted and diversified. If you are gonna drink something, they want to make sure it’s one of their products. These companies acquired as many resources as possible to control the market and then turned on the advertising faucet – big time. Naturally, they sprinkled in enough truth to make their story believable and palatable. This equation created the $15 billion annual sales of bottled water in the USA.

Up to 70% of the human body is water. Water is a staple of life. We have always known this.

The Engineer’s Creed in disposing of waste (“the solution to pollution is dilution”) helps us better understand the importance of clean water. Most engineers would agree that much of our delivery systems and pipes are antiquated. That is a scary truth that provides a background of legitimate news stories about the safety of our water. Over the years, those stories have fed into the marketing pitch. Tap water bad. Bottled water good.

Categories
Bottled Water

Why People Buy Bottled Water

Why people buy bottled water: How a perceived joke from the 1970s has become the largest sector of today’s beverage industry. Take something that is readily available, that most everybody already has, find a creative way to package and market it, and sell it to the masses at a thousand times its cost.

In 2015 bottled water in the US alone was a $15+ BILLION industry, and it all started 40 years ago in mass appeal with sparkling water from France. In 1977, Perrier’s target audience and approach to marketing were different than we see today. Perrier® caught the beverage industry behemoths’ attention with their effervescent mineral beverage in a big way.

This new fashionable drink entranced the imagination of the public. The slightly carbonated Perrier wasn’t a direct comparison to water from your tap, because of its unique qualities. It was more.

Unlike today’s bottled water, you knew the source of Perrier. They made sure you knew it came direct to you from Vergèze, located in the Gard département, Southern France. Their green glass bottle, shaped like a perfect water drop was distinct. All these factors gave Perrier an elegant, different, one-of-a-kind appeal, positioning this naturally carbonated drink as the “Champagne of mineral water.”

Packaged in more expensive glass bottles, Perrier was segmented and target marketed to young professionals. Their brand wasn’t about health, purity, or contaminated aquifers. It was a status symbol. “Look at me, and look at what I’m drinking.” It was about the lifestyle.

The growth of Perrier helped spark the beginning market trend for the “health-conscious consumer.” It didn’t take long for the beverage giants, namely Coke® and Pepsi® to take notice. The increase in that market sector also caught the eye of food conglomerate, Nestle®. These three giants pulled off what many call the “Marketing trick of the century.”

The marketing dollars that began to flow into the bottled water industry make it seem like it all started in the late 1980s. But in reality, the beverage conglomerates have capitalized on a rich history of bottling water, going back for centuries. People have been going to the mountains and filling their bottles since the beginning of time. Before the 1980s bottled water was a treat or something the elite enjoyed exclusively.

1844 – The POLAND SPRING® story began when summer visitors vacationed at a family Inn in Maine and wanted to return home with the 100% natural glacier spring water from their trip, that they referred to as wonder tonic.

1863 – PERRIER® first bottled by decree of Louis-Napoléon Bonaparte III “for the good of France.”

1873 – DEER PARK® Brand’s 100% natural spring water got its start near the crest of the Appalachians, where travelers, including President Taft, came from all over to enjoy its great taste.

Each of their stories touts their long histories as they showed the elite enjoying their refreshing, pure water.

Later, as big business saw the massive sales potential, they bought up many of the smaller boutique water companies, along with their water rights and sources.