One of the great marketing triumphs of the late 20th century was bottled water. Turning a commodity into a retail product uncapped huge revenue for companies such as Coca-Cola (NYSE:KO) and Pepsico (NYSE:PEP). The question now, however, is how fragile is the business? A troubling trend has top restaurants taking bottled water off of their menus due to environmental concerns.
According to CNN Money's Martinne Geller, New York's Del Posto restaurant and other restaurants owned by Joseph Bastianich are discontinuing bottled water, citing the resources squandered in transporting waters long distances. Perrier, for example, must be shipped from its source in Vergaze, France. 86% of all water bottles end up in the landfill. A study by the Pacific Institute's Peter H. Gleick and Heather Cooly found that bottled water required up to 2,000 times more energy to deliver than tap water.
Nestlé has already seen a 4.1% decline in its top-end brands, Perrier and S. Pellegrino, in the first quarter of this year. Ironically, the downturn has been most severe in Western Europe, relatively near the source of these waters. The International Bottled Water Association reports that U.S. consumption of bottled H20 dropped by 1% in 2008, but this was only half the decline suffered by the overall beverage industry. Water now has a 28.9% market share of the packaged beverage industry.
I anticipate that, if these trends continue, we'll see a new production and marketing approach by large-scale water vendors, promoting water that is locally sourced. I'll be interested to see what message they use to differentiate it from water flowing out of the nearest tap.
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Reader Comments (Page 1 of 2)
6-17-2009 @ 12:23PM
Ryan said...
It's amazing how bottled water companies have aggressively manufactured demand for bottled water when we have safe and affordable tap water available right from our sinks. Great to see some restaurants realizing the absurdity of bottled water sales.
Time for more business and restaurants to follow suit. Stop buying bottle water!
www.thinkoutsidethebottle.org
6-19-2009 @ 2:26PM
Jeremy said...
We as a public have been allowing corporations like Coca- Cola and Nestle to take control over our public water systems while convincing us through clever marketing schemes that the consumption of our water isn't safe unless bottled in their toxic plastic containers? Wow, never have I realized how sheepish "Westerners" really are.
It's promising to hear that finally, citizens are recognizing the detriments of bottled water and refusing to allow it to represent a symbol of affluency.
www.thinkoutsidethebottle.org
6-21-2009 @ 8:22PM
Susan Clark said...
Recycle People!!!!!!!!!!
6-21-2009 @ 8:39PM
Mary said...
I have thought this for years and I have said the same thing over and over again it is a shame that we are paying for water on bottles when there are so many other solutions to water problems, but no this is their way to make everyone want to spend a fortune for a bottle of water. I think it is a rip off and a way for them to take money from people who cannot afford bills and sometimes food. I have made iced tea and other beverages with tap water for basically my who life and I am still alive and not once ever got sick from it so for all the people who believe this then they are naive and can be rooked easily. I know they make the hype awesome, but tap water is fine. I am not saying now and then not to buy a bottled water when out somewhere and you are thirsty for some water, but come on they are taking this for all it is worth!
6-21-2009 @ 8:46PM
Sandra said...
Depending where you live.The tap water at home tastes naaa---styyyy!I drink my tap water filtered from Brita.I won't buy soda pop.It's ridiculous how much pop a person buys.
6-21-2009 @ 8:53PM
Bob Heinrich said...
I will begin marketing bottled air on July 1, 2009. Please look for my ads. It comes directly from Capitol Hill!
6-21-2009 @ 8:54PM
Sandra said...
I can tell AOL has gone to hell in a hand basket.Because who gives a flying fig about all these colon cleanse testimonies.It ranks up these for Viva Viagra..LOL
6-21-2009 @ 9:26PM
Mariucchi said...
AND THEY'RE SELLING IT TO US FOR WAY MORE THAN WE EVEN PAY FOR GASOLINE!
6-21-2009 @ 9:39PM
Dr. M said...
I have stopped buying bottled water, invested in a good water filter that attaches to my faucet and bought myself a nice insulated bottle that is reusable, cleanable, and definitely environmentally safer. I estimated a savings of at least @20.00 per week doing it this way. I am a visiting nurse in Florida and staying hydrated throughout the day is a must so having water throughout the day is a necessary thing. I encourage everyone to try this approach and maybe we can keep our planet a bit more "green".
6-21-2009 @ 10:07PM
E raymond said...
Having had a bone marrow transplant I can only drink certain types of bottled water. Sorry if it disappears.
Tap water isn't for everyone.
6-21-2009 @ 10:10PM
McLucas said...
Hey,
And let's not forget that most "bottled water" is "tap water."
Coke and Pepsi never denied this even though both never boldly advertised that point.
6-21-2009 @ 10:24PM
KMC528 said...
At home, I drink Brita-filtered tap water. When I'm out running errands, I do appreciate being able to buy bottled water rather than soda.
6-21-2009 @ 10:32PM
Malcolm W. said...
I'm 73 yrs old, and have never and will never buy a bottle of water. I can't believe how easy it is for marketers to convince us we NEED something they have to sell. I shop a predominantly latino grocery, and watch very poor folks load their carts with cases of water when their free tap water is often purer and healthier than what they are spending their scarce funds on. What a waste of money, resources, energy, transportation, time and concern. I'm more and more convinced the older I get that the people who are most uptight about the details of their diet are the ones most likely to suffer from the details of it.
6-21-2009 @ 10:39PM
JerseyGirl71 said...
While I applaud the restaurant industry for doing so at the same time I have to ask why they can't at least give us filtered water rather than the disgusting tasting tap water from the faucet and a lemon. There's nothing worse than smelling the chlorine in the water at a restaurant! I can get that at home already.
6-21-2009 @ 10:46PM
wallower said...
P.S. to Raymond, who had the bone marrow replacement, don't transplant the doctors' fears (and ignorance) into your own life-- when their favorite brand of bottled water is no longer available, they'll find you another. But the fact still remains: plain, pure tap water will do even you just as well!!
6-21-2009 @ 10:59PM
Seymour said...
Bottled water was a scam from the beginning. Everybody fell for it (just like they fell for voting for Bush...TWICE!). Bottled water is a nice convenience, but telling you not to drink your water at home was a crock, a lie to force you into buying their worthless product. I've stuck with drinking from the tap, and I'm still kicking. It's good stuff, it isn't overpriced, and I'm not stuck with a stupid plastic bottle.
6-21-2009 @ 11:13PM
E raymond said...
to Wallower - are you a doctor?
6-21-2009 @ 11:21PM
S A said...
Dr. M ... Way to go. I also have an insulated water bottle that I wash and refill. We have a water cooler at work and I refill my bottle. My co-workers laught at me and call me cheap. I probably am, but I always have money to pay my my bills and take nice vacations. These things are more important to me. S A
6-21-2009 @ 11:24PM
suprjoshmn2 said...
What the hell is your problem people??? Who cares if some people buy bottled water??? I drink tap water at home, and if I'm out on the street and want a bottle of water I can walk around with and drink, I F***ING BUY ONE!!! If you hate bottles so much, than guess what! YOU DON'T HAVE TO BUY THEM!!! Everyone thinks they can force everyone else to be just like them, and they hate each other for trying to do the same. Live and let live, you flaming morons.
6-21-2009 @ 11:27PM
Arnie Dickerman said...
A crucial point in the bottled water business demise states that "distance" of shipping source and bottles piling up in landfills are the culprits. The solution, pardon a pun, is to serve restaurant water straight from the nearby kitchen sink cold water tap and to use glass tumblers, which are reuseable. It has always been a "crock" that bottled water is better than tap water.