Comments on: A Hot Market Watered Down?

By: Ted Mininni

Ted Mininni — Wed, 11 Mar 2009 13:38:52 +0000

Thanks for letting us know about this, Jessica. With innovative advances in water purification, it would be great if a less cumbersome way could be found to use our own water and by doing so, cut down more and more on plastic waste and recycling. Ditto for making our own seltzers. I’m sure these innovations are coming.

By: Jessica

Jessica — Mon, 09 Mar 2009 19:59:45 +0000

Yes, you can still buy those canisters to make your own carbonated water. I looked into it recently. The prices aren’t too bad but you still have to recycle the cartridges that make the fizziness and those can contain heavy metals. So, I’m still buying bubbly water in plastic/glass bottles and recycling those until I find an environmentally friendly brand of seltzer maker.

By: Ted Mininni

Ted Mininni — Mon, 09 Mar 2009 14:56:51 +0000

Old Sage,
Interesting points. First, you’re right: many companies that were solely in the soft drink business at one time like Coke and Pepsi, have repositioned themselves as beverage companies. With the slow down in soda sales, and bottled water sales soaring, this made perfect sense.
Big players also saw opportunities in the energy drink category and got on board with that. It makes sense.
In other cases, very large food companies like Nestle made an entry into the bottled water business by buying up brands like Poland Springs. And that is just a small part of a much larger portfolio of food and beverage brands for the largest food company in the world.
Agreed that it also makes sense for manufacturers to expand the potential for in-home, “bulk” water use in some way. Does that mean new filtering machines for the tap or some other devices to eliminate the handling, transportation costs and mess that comes with large in-home water dispensers? I’m not sure. But I’m betting consumers would like more options here.
As you also state, filling and refilling your own bottles when leaving home is something people are increasingly doing. And that does cut down on a lot of waste. Still, there will always be a market for the latest, greatest new beverages and that is why value-added water products have really caught on with consumers. These are trends, too. . .so what’s next, Old Sage? Want to venture your thoughts on that one?
Thanks for offering so many great insights. I appreciate it.

By: OldSage

OldSage — Sun, 08 Mar 2009 04:07:22 +0000

Maybe I see it from a different angle. These businesses are not in the water business except as they position themselves. They are in the drink business.
While I enjoy a choice between Aqua Fina or Dasani, my choice as a consumer also includes cola drinks, non-cola drinks, fruit drinks, wine coolers… the cola drink I buy displaces the sale of a water drink or vice-versa.
No doubt, water is more healthy than corn syrup and many things in between. “More healthy” must always be water’s message but also it must be “interesting”, that is, it must taste better than tap water and then some.
I would say that the home market is the largest untapped (pardon the pun) segment. But first someone must invent a better distribution model – It’s a pain to carry jugs or bottles of liquid from the store. Though I haven’t tried the “make your own” carbonated water method, it sounds good for distribution – if it’s convenient enough to use (easier than making ice cubes) and that word again, interesting in it’s flavoring.
The person who invents the key-a-number drink machine that sits on a kitchen counter will bury the bottled water segment. A machine that can filter and process tap water into a variety of good tasting drinks at the tap can’t be beat for distribution. Bottle it at home, carry a few with you if you need…
In the meantime, I use the refillable gallons for home (tastes better than tap water or at-the-tap filtered water). When I’m on the go I’ll buy the 20-oz bottles, water, carbed water, vitamin water… I enjoy the variety and for me, water has completely displaced soft drinks. This couldn’t have happened had water not become interesting.

By: Ted Mininni

Ted Mininni — Wed, 04 Mar 2009 23:49:42 +0000

When you put things in this perspective, Vincent, it all does seem paradoxical, doesn’t it? Still, I’ll say this: people are bound to pop into stores and purchase beverages, no matter what. What’s better: sugar-laden soft drinks or water? In that regard, it is a more healthy choice, right? Still, as you rightly stated: all of those plastic bottles, many ending up in landfills, are a source of concern. BTW: interesting insight about Evian.
Thanks for all of your insights, Vincent. You’ve made all of us think.

By: Vincent Le Pes

Vincent Le Pes — Wed, 04 Mar 2009 21:03:06 +0000

I have always considered bottled water a wasteful joke. It was especially bad watching it become more popular in the 90’s, right alongside the recycling revolution, and with people who considered themselves health fanatics and environmentally conscious…it always struck a chord with me that Evian backwards is Naive…

By: Ted Mininni

Ted Mininni — Tue, 03 Mar 2009 20:22:52 +0000

Great observations, Kevin. Bottled water will continue to sell, but I don’t expect it to grow as a category the way it did for the past few years. In fact, I expect it the slow down to continue as consumers reload their own containers from their home taps or their home-delivered spring water taps. Consumers are increasingly conscious of waste issues; not to mention a barrage of news stories proclaiming most bottled water on the market is no better than tap.
Sure, when on the road, in an outside sporting venue as participant or observer, away from home or in a favorite cafe, people are likely to order bottled water just as they’ve been doing. However, I don’t think it unreasonable to expect supermarkets might start trimming their bottled water assortments in response to slowing sales. I also think the new generation of flavored, energy or vitamin waters are the new darling of many consumers, too.
Thanks for weighing in, Kevin. I appreciate your comments.

By: Kevin Clancy

Kevin Clancy — Tue, 03 Mar 2009 19:49:26 +0000

A couple comments on this topic.
One’s more of anecdote. I still get a kick out of it when a waiter or waitress will ask if I’d like “sparkling” or “still” water when I’m out to eat. “Still,” of course, is your garden variety tap water, but, boy, it does sound extra fancy.
The other comment I have goes to your question about the future viability of some of these brands.
I don’t think that we’ll see a ghost aisle in the grocery store where the bottled water once lived–there’s still enough concerns about the health and safety of tap water out there. And in many situations, people who’d like a glass of water just don’t have access to a tap where they can get some.
So a lot rides on finding the right target here and figuring out the different occasions where folks might consider and use bottled water. The flavors and energy enhancements might relate to one occasion–something like a snack time–but I just wonder what some other occasions might be where bottled water might make a case for itself in one way or another.

By: Ted Mininni

Ted Mininni — Tue, 03 Mar 2009 19:13:33 +0000

Sorry about misunderstanding, Neil. Consumers used to be able to buy spritzers with cartridges in them. I wonder whether those are still available. My guess is that they’re not since the cartridges were filled with CO2. They were inexpensive, though, and enabled people to make flavored water, wine coolers or whatever else they wanted to concoct, simply and easily at home. No expensive machine purchases necessary.

By: Ted Mininni

Ted Mininni — Tue, 03 Mar 2009 19:09:42 +0000

I hear you, Paul. There is discussion in cash-strapped states about raising the deposits on soda cans, plastic bottles, etc, to raise more revenue. Another good incentive to buy reusuable plastic bottles or get in-home water systems put in place. Thanks, Paul, for weighing in.