BOTTLED WATER
SALES KEEP FLOWING
Alia Akkam

Over thirty years ago, in 1976, 354.3 millions of gallons of bottled water were consumed. In 2006, that number shot up to 8.25 billion gallons, based on stats from the Beverage Marketing Corporation. That’s a 9.5% increase from 2005, with 27.6 gallons consumed per capita.

Sales of bottled water continue to steadily increase. In fact, in 2003, it became the most popular category after carbonated beverages. Popular enhanced waters, unregulated by the government and often packed with sweeteners and flavors, are in a category of their own, yet still do not shake consumer interest in old-fashioned water.

“There is always a demand for water. Others may contain calories and additives,” says Stephen Kay, vice president of communications at the Alexandria, VA-based, International Bottled Water Association (IBWA). “The convenience, the safety, and the quality will drive interest. People will always want plain water.”

Marilyn Maher, general manager of Arcadia Restaurant in San Jose, California (a steakhouse by chef Michael Mina) and director of restaurants for the San Jose Marriot, says the rise in sales of bottled water has been noticeable on all levels. “Management has seen the increase, the servers identify the increase and our purchasing agent estimates a 75-percent increase in water purchased,” she says. Maher notes that the servers offer the sale of water in their introduction and that they receive training for water service. Arcadia has switched their still water from Voss to Fiji to be in line with water served at the other Mina Group restaurants.

Since there are few national brands, and most waters are regionalized and localized, there are two hundred brands represented by the IBWA alone. This number may seem overwhelming, but it also shows that like wine, consumers can seek out exactly the type of water they’re craving, whether it’s purified from a natural spring, or sparkling rainwater.

A sense of place affiliated with their purchases is increasingly becoming more important for savvy consumers, just like embracing a greener lifestyle is for them. Although the impact of plastic bottles on the environment has been buzzworthy of late, Kay doesn’t think the bottled water industry will suffer.

“Seventy nine percent of what people drink comes in a bottle. Bottled water is typically chosen over others as an alternative to caffeine,” he points out. Instead of shunning plastic bottles, Kay thinks it’s important to reduce litter, advocate recycling, and for retailers to tap into customer concerns. He doesn’t think retailers and restaurateurs should remove certain products, “because customers will just go elsewhere” to get what they want.

Nestlé Waters has responded to consumer concerns about bottled water not being good for the environment with a new, eco-friendly bottle. “This year, we introduced the new Eco-Shaped .5 liter bottle in all of our regional spring water brands as well as in the Nestlé Pure Life Purified Water brand,” says Stacy Roth, marketing manager at Nestlé Waters North America. “This new bottle contains 30% less plastic than an average .5 liter PET beverage container (based on a 2007 audit of half liter beverage bottles in the water, soda and tea categories). The Eco-Shaped bottle represents our latest initiative to lighten our environmental footprint, building on a strong history of decreasing our footprint.”

THE ALLURE OF BOTTLED WATER
Dominick’s restaurant in Los Angeles serves Fiuggi, an Italian brand of still and sparkling water. “We are offered many brands by beverage distributors but we want to carry something that not everybody has,” says Larry Rudolph, general manager. “We like to give people an experience they can’t get at home, and one way is giving them something that they don’t see everywhere else.” For Rudolph, bottled water is yet another product that can set a restaurant apart while at the same time improving the bottom line. “Beverage sales add to the bottom line. Selling good products helps the restaurant’s reputation, regardless of what the product is. It’s all part of the experience,” he shares.

Scott Lutengau, director of operations for the Urban Food Group, based in Raleigh, NC, echoes Rudolph’s sentiments and believes that bottled water only compliments a dining experience: “People in our market are more and more critical of any products purchased. Along with the movement of consumers interested in more health-conscious choices comes a call for restaurants to offer them a selection of choices including bottled water, organic offerings, and low-fat alternatives,” says Lutengau. “Also, people associate a night out as treating themselves to something they normally wouldn’t, such as bottled water or a splash of Kahlúa with their coffee.”

A DIVERSITY OF OFFERINGS
According to the Beverage Marketing Corporation, the leaders in the bottled water market are Pepsi’s Aquafina, Coke’s Dasani, and Poland Springs, all in accessible plastic bottles. Along with the more familiar brands one is most likely to come across in a grocery store or restaurant, like Voss, Acqua Panna, San Pellegrino, and Fiji, which recently announced its plans to go carbon neutral, there are a slew of more obscure brands clamoring for market share as well.

Canadian Iceberg water, from the same people who make the ultra premium Canadian Iceberg vodka, is made from icebergs harvested in the Canadian Arctic, in St. John’s, Newfoundland. Filette, after rave reviews in Europe and Asia, has now made its debut in the United States, with still, slightly sparkling and sparkling water from a mountain source in central Italy that’s been lauded for its restorative properties since 400 B.C.E. Concerned about the environment, Filette comes in recyclable glass bottles.
Tasmanian Rain, an import from “down under,” also packaged in recyclable glass, is sold almost exclusively over the Internet and in a few high-end restaurants, including Water Works Restaurant and Lounge in Philadelphia and Radius 10 in Nashville. Soon, it will be rolled out to upscale hotels and spas. Comprised of rainwater, a self-sustaining resource, the company accentuates their purity angle. “Many consumers want to know that the bottled water they buy and drink does as little as possible to cause damage to the environment,” says Kelley Blevins, Tasmanian Rain’s vice president of marketing and public relations. “They want to know that the water they put into their bodies is as clean and safe as it can be. Water that is sold in plastic containers is already compromised and somewhat contaminated by the plastic itself.”

KNOWING THE SOURCE
Nuanced geographic details, along with attractive, elegant packaging, are often what set different waters apart. Mark Rajeski of Brands of Britain, which promotes Tau and Ty Nant waters, known for their striking blue and red glass bottles, acknowledges the shelves of retails stores are saturated with waters, but not with the brands consumers are truly seeking. “With the growing awareness of bottled water, U.S. consumers are becoming much more discerning, and greater numbers now recognize all water brands are not created equally,” he says. “For example, many consumers now want to know the source, to be sure the water is from a natural spring, not municipal water that has been filtered and sterilized. We source our water from a remote and rugged area in western Wales and believe this water should be packaged in bottles that are fitting to this treasured resource,” he says.

Technically an enhanced water, Hint, with its natural flavorings, like peppermint, appeals to consumers who really crave water in its simplest form. “With all the ‘water beverages’ out there, it’s not unusual for us to hear first-time customers exclaim with surprise and delight [when they taste Hint], ‘Ohhh, it’s water. It’s not sweet,’’ explains COO Theo Goldin. “We’re seeing the term water appear on all sorts of beverages that would have previously been called juice drinks, sports drinks, or soda. This reflects the fact consumers really want to drink more water, but many of them still prefer the taste of soft drinks to plain water. The word water seems to have the effect of letting some consumers off the hook, or giving them permission to grab that soft drink.”

GETTING THE FULL EXPERIENCE
Newcomers clearly feel confident about their niches in the industry, but where does that leave a bottled water stalwart like Evian? They have the double challenge of keeping loyalists happy with their quality, while simultaneously offering creative new twists. The brand has definitely been a category leader in packaging innovation. Evian has released unique designs such as the Nomad sports bottle, limited edition teardrop glass bottle, flip-cap bottle, hot pink label, the 2006 limited edition Romero Britto glass bottle and the most recently released Evian Palace Bottle.

“Consumers are looking for a brand that can integrate into their lives,” says Evian’s vice president of marketing, Jeff Caswell. “The Evian Palace bottle allows us to really incorporate all of our messaging in one single design. Served only in fine dining establishments and upscale hotels, the Palace Bottle is shaped to represent the origin of Evian – the pristine French Alps – in a very modern way. The pourer and coaster accompanying the bottle allow the waitstaff to turn the act of pouring Evian into an actual experience. It’s not just about a bottle of water being brought to your table; it’s about the presentation, the history.” In addition, they’ve partnered with Parisian fashion designer Christian Lacroix to develop the first-ever high-fashion Limited Edition Evian bottle for 2008.

“Healthy living is becoming an increasingly bigger trend and with the benefits of Evian’s uniquely balanced mineral composition,” Caswell continues, “we are always looking to emphasize and innovate around the themes of health, beauty and purity.”

“BOTTLE SERVICE”
What are restaurants doing to turn customers on to bottled water?

Here’s a sampling.
• Known for its water bar showcasing over 40 different types of water, Water Works Restaurant and Lounge in Philadelphia has turned diners on to more exotic brands. Tasmanian Rain is one of the restaurant’s bestsellers, next to Antipodes from New Zealand, Cape Karoo from South Africa, and Scotland’s Speyside Glenlivet. Leonidas E. Agorastos, a partner in the restaurant, also serves as a water sommelier. Guests can rely on Agorastos and his knowledgeable servers to explain how waters differ and recommend ideal pairings.

• At Herons, the posh Umstead Hotel and Spa in Cary, North Carolina, beverage director Patrick Kemmache pours his preferred selections - Voss still and sparkling waters - directly into glasses on the tables.

• Scott Luetgenau, director of operations for the Raleigh, NC-based Urban Food Group, serves Fiji still water and Italian Lurisia sparkling water, since discerning guests seek less mainstream brands.

• A MANO, a new contemporary trattoria in Chicago, has installed a state-of-the-art Italian water filtration system dispensing both still and sparkling water. Then, they serve it gratis in tall, contemporary looking bottles similar to Voss’s, that say “still” and “sparkling” on the side. Dan Sachs, managing partner of A MANO and BIN 36, believes that selling the filtered water to customers would provide “intangible value.”

• Keefer’s, a classic Chicago steakhouse, installed a filtration system back in 2001 due to owner Glenn Keefer’s distaste for asking customers the snobby question of “Would you like still, sparkling, or tap?” The restaurant serves its filtered tap water in luxurious turquoise bottles made of hand-blown Mexican glass.

• Gary Obligacion, director of restaurants at Carmel Valley’s Bernardus Lodge, stopped using Sole because he didn’t think the screw-top closure was aesthetically pleasing enough for the high-end Marinus dining room. Instead, he opted for Acqua Panna, and, because customers regularly asked for it by name, San Pellegrino.

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