Water Bottlers Move to Protect Sales
It's beginning to look as if consumer decisions to vote with their purses are to be contested by companies whose sales of bottled water have fallen significantly in recent months.
The reasons for falling sales have been well covered - tap water is cheaper, doesn't have to travel so far and doesn't come in plastic bottles that take up space in landfill sites. But three of the biggest companies supplying U.K. retailers have joined forces to fight back.
According to a report on foodanddrinkeurope.com, Danone Waters, Highland Spring and Nestlé Waters have got together to form a Natural Hydration Council. The article explained that the council is "designed to spread the word on the economic and social value of their product, amidst continuing pressures surrounding its alleged environmental impact." It plans to "provide 'authoritative' information and advice for researchers, government, industry and consumers."
Paolo Sangiorgi, managing director of Nestlé Waters UK, is quoted as having said, "Not many people realize that natural bottled water comes from fully sustainable sources and in recyclable packaging. We need the council to undertake new research and communicate the facts to ensure fully informed consumer choices."
Nick Krzyzaniak, managing director of Danone Waters UK & Ireland, added that the council will provide consumers "with an informed choice on the health and sustainability aspects of naturally sourced water."
Consumer analyst Zenith International predicts that sales of bottled water are still growing, however, partly due to innovation and added value. As long as consumers believe that the quality of bottled water is better than what gushes from their taps, they will apparently continue to pay for it. It is this on which the new council will focus. How to tailor arguments for consumers who are more sensitive than usual to every penny they spend may present an additional challenge.
Discussion question: How much difference will industry marketing efforts make to bottled water sales? Do you think the strength of bottled water as a product category will fade, hold steady or grow?