...The Bottled Water Industry and Its Impacts on Our Environment and Health Comparing with Tap Water in North America INTRODUCTION The world nowadays has a rapid increase in population, thus it leads to a drastic demand for water resources. However, in reality, there is only 2.5% of the Earth’s water is freshwater, and 98.8% of them is still in ice and groundwater (Peter H. Gleic, 1993). The water resources are distributed unevenly due to the geographic locations. There are about 884 million people do not have access to clean and safe water. (World Health Organization, 2012). At the meantime, studies shows that limited availability of safe drinking water, and growing awareness among people to safeguard their health using bottled water, the bottled water industries boomed over those developed countries (Anisur Rahman, 2007). From 2001 to 2011, the United States alone had produced 5,185.3 millions of gallons of water to 9,107.3 millions of gallons of water, and had an increasing revenues from 6,808.4 millions of dollars to 11,083.8 millions of dollars (Beverage Marketing Corporation, 2006). As the bottled water market grows mature, it accounts for 1% of total GDP of the United States and Canada respectively in 2011. This paper is aimed at critically examining the overall bottled water production and its side effects on human health and environment in North America. It is organized as follows: it discusses where the water from and how it was processed and its affects on health...
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...In 2011, the company was Australia's largest supplier of non-alcoholic beverages. Tom Dwyer, the current Managing Director, has been with the company since 2008. He joined the company at a time when carbonated soft drinks (CSDs) growth was stagnating and shareholder confidence in the company was waning. Dwyer established a strategic planning team within the company to assess the current product portfolio and identify organic and acquisition growth opportunities. From this review the importance of operational excellence was identified and strong investment was made in world-class manufacturing facilities and systems. Process re-engineering was implemented to reduce the costs of manufacturing and time-to-market. Given the declining consumption of CSDs, Managing Director Tom Dwyer has sought to reduce ABL's reliance on them, focusing on growing new products and entering new non-alcoholic beverage categories since his appointment in 2008. Alongside significant investment in product development of other non-alcoholic beverages, several acquisitions have been made to grow the market share of non- CSD based beverages in the company's portfolio, and entry into the Australian snack food market was recently undertaken. Having finalised the integration of a snack food business acquisition just over 12 months ago, this latest acquisition enabled ABL to leverage its strong distribution capabilities to supermarkets, convenience stores and hospitality channels by...
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...Fall 2010 Abstract The consumption of bottle water has been growing over the past decade. There has been many studies and research done on the two. The research proves if you have safe drinking water in your municipal you should drink the tap water. There are benefits of drinking municipal water because studies found bottle water and municipal water the same in safety. Do You Know What Evian is Spelled Backwards? Naive Water is an essential part to human life. We as humans need around eight to twelve cups per day to make up for the fact that throughout normal functions such as breathing and sweating we lose an average of ten cups per day. To make sure that we are healthy and everything runs properly, we must make sure we drink the right amount of water (Diet and Health). The one question when thinking about water is what type of water will you drink? Many people in the world today are switching from drinking tap water to drinking bottled water. The number of people who drink bottled water has been rising over the past few decades and by an average of 7% per year. Some reasons for this could be because bottled water is convenient and is said to taste better and be healthier for you than tap water. However this is not always the case. The water that you just paid for could have possibly come out of the municipal water supply. The global consumption of bottled water was 154 billion liters in 2004, up 57 percent from the 98 billion liters consumed...
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...new product and sustainable conduct 11 5.0 Evaluation 12 5.1 Analysis of the Alternatives 12 5.1.0 Alternative 1 12 5.1.1 Alternative 2 13 5.1.2 Alternative 3 13 6.0 Recommendations 13 7.0 Action Plan 14 8.0 Contingency Plan 15 9.0 Conclusion 15 10.0 References 16 Introduction FIJI Water was founded David Gilmour a Canadian hotel and gold mining mogul. In 1996, FIJI Water started its operations in the Islands of Fiji (McMaster & Nowak, 2009). They leased land from the Fijian government that was located on top of a massive artesian aquifer in the Yaqara Valley of Fiji's main island (McMaster & Nowak, 2009). FIJI Water was able to successfully attract consumers to its pure artesian water with slogans like "untouched" and "unpolluted" (McMaster & Nowak, 2009). With adopting a successful branding and marketing strategy, FIJI Water gained competitive advantage over its competitors through creating a unique brand image that is portrayed healthy, trendy, and high-end. Recently, FIJI Water has been facing heavy criticism not just for its carbon footprint, but also for its entire business model of shipping a product (water) to markets where high quality water is readily available for free. This report will discuss FIJI Water’s future options to become a genuine environmentally conscious/ sustainable company. 1.0 Problem Statement The primary problem in the case is that fundamentally the business...
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...18, 2013 I choose to speak about bottled water. To me, bottled water is the safest water to drink. According to ncbi.nlm.nih.gov, “Consumption of bottled water is increasing worldwide. Prior research shows many consumers believe bottled water is convenient and has better taste than tap water, despite reports of a number of water quality incidents with bottled water.” I must say I agree with this statement. I say this because of the many incidents in the tap water. Who wants to drink the same water the bathe with? “They find that U.S. consumers are more likely to report bottled water as their primary drinking water source when they perceive that drinking water is not safe. Furthermore, those who give lower ratings to the quality of their ground water are more likely to regularly purchase bottle water for drinking and use bottle water as their primary drinking water source.” With that being said, I will give a more detailed explanation on this issue. Firstly, I will use this graph to discuss bottled water in terms of its current target market demographics using U.S. Census Data. As we examine this graph we see that bottled water is widely used in several of countries. In each category we see an increase in the demand of the bottled water. Total consumption of bottled water increased per person increased by at least 30%. According to research from ncbi.nlm.nih.gov, “after years of substantial growth in sales, the U.S. bottled water market is recently slowing down. The current...
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...investing in product development of the other NAB and diversified into the Australian snack food market, complementary food product to NAB B The Aust bottled water manufacturing industry • 2011 fastest growing NAB • Growth stage, increase in per capita consumption • Consumers have become health conscious and change their preference from CSDs to healthier beverages such as water 1. Demand and consumption trends • Total NAB revenue in Aust was over 10b in 2011 • Aust consumed 963 litres of bottled water in 2011 • However it is lower as compared to other similar markets have higher rate of consumption, hence potential for growth • Increasing awareness of the obesity problem in Aust and established focus toward health and wellbeing is ensuring strong future growth for healthy beverages • Introduction of sugar-free or diet CSDs not appealing to older Australians • Bottled water advantages: small sized plastic bottles easier to carry, resealable and has become a fashion accessory. 2. Industry segmentation 2 types still and sparkling water • Still water • 76% consumption, consumed for hydration and thirst satisfaction • Fat free, calorie free thirst quencher • Consumers not satisfied with tap water • Convenience major factor more widespread leisure activities and expansion of travel • Sparkling water • 24% consumption in 2011. • Refreshment berverage when dining out than hrdration. manufacturing costs to carbonate, different closure types to retain carbonation, costs...
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...Industry – Australian bottled water manufacturing industry Product segments includes stilled water and sparkling water Value chain – (upstream) Access to water supply > Manufacturing > Packaging > Distribution > Retailers > Consumers (downstream) 2. Current life cycle position of the industry Australian bottled water manufacturing industry is at the growth stage of its life cycle. It is evolved out of the soft drink manufacturing industry during the 1990s, hence considered a relatively new industry. It is the fastest growing category in the non-alcoholic beverage market in Aus in 2011. Growth is demonstrated that despite from a relatively low base compared to other more established beverages, it shows increase per capita consumption. This is shown in Table 1 that bottled water growth from 2001 to 2011, increasing significantly from 6.4% in 2001 to 13.3% in 2011 (i.e. a 107.8% increase over the period). It is also projected to increase by 30.8% from 2011 to 2016. Despite having Energy drink, ready to drink tea/coffee, sports drinks and milk drinks are also experiencing growth; however bottled water has the largest market share of all the other growing non-alcoholic beverages. A recent report by Global Earth Policy Institute shows that global consumption water rose 56.8% to 164 billion litres from 2007 to 2011. Australians consumed 963 million litres of bottled water, is lower comparison to the top 10 global bottled water consuming countries...
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...second largest company in Australia non-alcoholic beverage industry. The company is run by Tom Dwyer, the current managing director, who has been appointed since 2005. b. What industry, product segments/markets does ABL operate in? ABL is currently the second largest company in Australian non-alcoholic beverage industry. With the exception of bottled water, ABL operates in almost all product segments of non-alcoholic beverage market, that is, carbonated soft drinks (CSD), fruit and milk-based drinks, etc. It has also moved into snack food market through acquisition of several small businesses. Its core activities include manufacturing, distribution and marketing. c. What is the current life-cycle position of the industry? Non-alcoholic industry ➢ The non-alcoholic beverage industry is at the growth stage of its life cycle. This is evidenced by: (1) Consumption of non-alcoholic beverage in Australia increased form 179.7 liters per capita in 2005 to 228.5 liters per capita in 2009, representing a 27% increase. (2) As Australian per capita consumption follows US pattern, Australian’s current level of 63% of US per capita consumption indicates significant opportunities for growth. (3) According to Table 4: revenue for non-alcoholic beverage has increased from $7199m to $10449m between 2003 and 2009, and is projected to grow another $3728m in the next 6 years. The actual and projected growth rates are 45.1% and 35.7%, respectively. (4) Firmly established focus toward health...
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...The Water Bottle Industry Markets Water is something that anyone around the world could get from the tap for free, but now it is all the rage for the beverage industry. Bottled water has become the industry's fastest growing segment, both in volume and profits. Due to the consumer's needs and wants for a healthier lifestyle, the beverage industry provides a necessary product to the consumers, which is bottled water. Water is essential and with the demand to participate in a healthy lifestyle, the water industry will be successfully profitable. The market size for this industry has been growing and will continue to grow in a rapid pace. Over the past ten years, bottled water has moved from being the preserve of a relatively small market into the U.S. mainstream, with sales of about $7.5 billion, and that's only for water in bottles of 1.5 liters or less (Durr). According to the International Bottle Water Association, Americans spend $5.6 billion in 2000 on bottled water. By 2005, Americans will consume 7.2 billion gallons of bottled water, up from about 5 billion gallons in 2000, the association reported. A factor that will continue to drive the bottled water market is foremost the desire to live a healthy lifestyle. Which leads to the concerns of contaminants found in the tap water. People will pay high prices for water, just to be ensured that it is safe to drink the water that they purchased. Drinking lots of water also prevents dehydration. According to the Bottled...
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...Bottled Water: An Issue in the Shadows As people grab for that pre-chilled bottle of water in gas stations, do they stop to think about the issues that are carried with it? Arthur von Wiesenberger stated that the need for social status is what caused the birth of the bottled water industry. Along with the need for social status raised the belief that bottled water is healthier and safer than water from the tap (Davies). Although believing that bottled water is healthier than tap water is a misconception, there is no doubt about the environmental impact that bottled water totes with it (Howard). Since the introduction of bottled water in the 1970’s, sales have risen and show no sign in stopping (Fishman). In 2005, Americans spent nearly $9 billion on bottled water (Davies). In one year the number nearly doubled, jumping to $15 billion. On a global level, approximately $60 billion is spent on bottled water (Knowledge@W.P. Carey). In relation to tap water, it costs about 10,000 times more to produce the water in bottles (Neal and Thompson). Americans often pay up to four times the price of gasoline for bottled water when they can have tap water for next to nothing (Fishman). The bottled water industry is expected to become the number one beverage in the nation by 2011 (Knowledge@W.P. Carey). “If you were cool, you were drinking bottled water,” stated Ed Slate, Evian’s marketing vice president in 1990 (Fishman). Ever since seeing their favorite celebrities carrying bottles of designer...
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...In Mark Coleman’s review of Elizabeth Royte’s Bottlemania: How Water Went on Sale and Why We Bought It, he had successfully discusses the author’s strong view and use her valid arguments to addresses the consumer about his view on the dangerous increase pollution and consumption of bottled waters. In his evaluation of Elizabeth Royte’s piece, Coleman had started off his review with facts from Royte’s book, “In 2006, Americans consumed, per capita, more than 25 gallons of bottled water…in 1987,” to help him explain the amount of bottled water that had been purchase in the past few year had dramatically increased. Coleman had pointed out that Royte display negative emotions to the large volume of water is bottled and buy for the same water...
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...Bottled water is one of the fastest-growing segments in the world’s food and beverage market owing to increasing health concerns. The market for bottled water in the US generated revenues of about $15.6 billion in 2006. Market consumption volumes were estimated to be 30 billion liters in 2006. The market's consumption volume is expected to rise to 38.6 billion units by the end of 2010. This represents a CAGR of 6.9% during 2005-2010. In terms of value, the bottled water market is forecast to reach $19.3 billion by the end of 2010. In the bottled water market, the revenue of flavored water (water-based, slightly sweetened refreshment drink) segment is growing by about $10 billion annually. TCCC is third largest player in the bottled water market in the US with market share of 11.9%. The company acquired Energy Brands Inc. in 2007 to further expand its presence in still beverage offerings in categories like vitaminwater, fruitwater and smartwater. TCCC could leverage its strong position in the bottled water segment to take advantage of growing demand for flavored water. Growing bottled water market Bottled water is one of the fastest-growing segments in the world’s food and beverage market owing to increasing health concerns. The market for bottled water in the US generated revenues of about $15.6 billion in 2006. Market consumption volumes were estimated to be 30 billion liters in 2006. The market's consumption volume is expected to rise to 38.6 billion units by...
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...Exam case Australian Beverages Limited Pre-seen information Semester 1 2010 Australian Beverages Limited — Pre-seen information A. Introduction to Australian Beverages Limited — March 2010 Australian Beverages Limited (ABL) commenced soft drink manufacturing in 1937. During the 1970s and 1980s, the company expanded its beverage portfolio by entering into other non-alcoholic beverage categories, such as fruit and milk-based drinks. Entry into the snack food market was recently undertaken in response to declining consumption of carbonated soft drinks (CSDs), the company’s traditional area of business strength. This move also enabled ABL to leverage its strong distribution capabilities to supermarkets, convenience stores and hospitality channels by adding adding such complementary food products to non-alcoholic beverages. Nevertheless, CSDs still accounted for 90 per cent of company revenue in 2004. Tom Dwyer, the current managing director, has been with the company since 2005. He joined the company at a time when CSD growth was stagnating and shareholder confidence in the company was waning. This had resulted in the share price declining by 15 per cent in the two years prior to his appointment. In order to restore shareholder confidence, Dwyer established a strategic planning team within the company to assess the current product portfolio and identify organic and acquisition growth opportunities. From this review the importance of operational excellence was identified and strong...
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...Bottled Water Industry Analysis & Recommendations I. Industry Introduction The Bottled Water industry is still in an expansionary/growth stage. In 2005 the bottled water industry accounted for $70 billion, and is expected to reach $140 billion by the year 2020.Advertising budgets are very heavy in companies such as Pepsi (Aquafina), and are positive indicators of the current [growth] stage in the product’s lifecycle. However, the bottled water industry is currently experiencing a skewing of profitability numbers (compared with last-year-to-date numbers) due to a shift in production from bulk to bottled water. A new and rapidly growing trend in the bottled water industry is the production of premium-priced “enhanced waters,” which competes on the product category level, and increases profits dramatically when purchased over traditional [non-premium] bottles of water. The aggressive advertising campaigns for bottled water and premium-priced “enhanced waters” coupled with health-related trends provide for a greater proportion of market-share for water companies who utilize their ability to expand their product line on the generic competition level. II. Four Types of Competition (& Competitors) for the Bottled Water Industry: Competition is the driving force in any and every industry. There are four different types of competition which, [each] in their own way, affect the sales of any given industry. This...
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...Coca cola water water everywhere… INTRODDUCTION: When we hear the name Coca-Cola we might not instantly think of water. However Coca-Cola Amatil's brand Mount Franklin is the number-one brand of bottled water in Australia. In a market crowded with hundreds of competitors, Mount Franklin and the Pump range of products account for more than one-quarter of all bottled water sales in Australia. Coca-Cola Amatil (CCA) is the local Coca-Cola licensee, manufacturer and bottler operating in Australia, New Zealand, Fiji, Indonesia and Papua New Guinea. Coca-Cola is continually striving for growth in this Pacific region. A core objective of the company is to become the supplier of choice for carbonated and non-carbonated beverages. The company has also set a goal to expand in the health and wellbeing segment, or market category. The non-alcoholic drink market consists of different product categories, the main ones being carbonated beverages (both sugared and sugar-free), water, sports drinks, energy drinks, juices and fruit drinks. Over the past two decades the growth in the market share in Australia of diet drinks, bottled waters, sports drinks, energy and lifestyle drinks and other sugar-free, non alcoholic drinks has been steadily increasing. In particular sales of bottled water have increased markedly over the last ten years while the proportional share of carbonated sugared drinks has been falling. In Australia in 2006, CCA enjoyed a 58 percent market share of carbonated...
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