Thrifty consumers spur tap water comeback
Last Updated: Wednesday, June 18, 2008 | 11:28 AM ET
The Associated Press
U.S. consumers spent $16.8 billion on bottled water in 2007, according to Beverage Digest. (CBC)With a day's worth of bottled water — the recommended 64 ounces — costing hundreds to thousands of dollars a year depending on the brand, more people are opting to slurp water that comes straight from the sink.
The slumping U.S. economy may be accomplishing what environmentalists have been trying to do for years — wean people off the disposable plastic bottles of water that were sold as stylish, portable, healthier and safer than water from the tap.
Heather Kennedy, 33, an office administrator from Austin, Texas, said she used to drink a lot of bottled water but now tries to drink exclusively tap water.
"I feel that [bottled water] is a ripoff," she said in an e-mail. "It is not a better or healthier product than the water that comes out of my tap. It is absurd to pay so much extra for it."
Measured in 700-millilitre bottles of Poland Spring, a daily intake of water would cost $4.41 US, based on prices at a CVS drugstore in New York. Or $6.36 in 20-ounce bottles of Dasani. Buy half-litres of Evian, that'll be $6.76, please — which adds up to thousands a year.
Even a 24-pack of half-litre bottles at Costco Wholesale Corp., a bargain at $6.97, would be consumed by one person in six days. That's more than $400 a year.
But water from the tap? A little less than 0.14 cents for a day's worth of water, based on averages from an American Water Works Association survey — just about 51 cents a year.
Bottled water a $16.8B industry in US
U.S. consumers spent $16.8 billion on bottled water in 2007, according to the trade publication Beverage Digest. That's up 12 per cent from the year before — but it's the slowest growth rate since the early 1990s, said editor John Sicher.
Coca-Cola Enterprises Inc., the biggest bottler of Coca-Cola Co.'s Dasani, recently cut its outlook for the quarter, saying the weak North American economy is hurting sales of bottled water and soda — especially the 20-ounce single serving sizes consumers had been buying at gas stations.
"They're not walking in and spending a dollar plus for a 20-ounce bottle of water," said beverage analyst William Pecoriello at Morgan Stanley. Flavoured and "enhanced" waters like vitamin drinks are also eating into plain bottled water's market share.
Pecoriello said Americans' concern about the environment was also a factor, driven by campaigns against the use of oil in making and transporting the bottles, the waste they create and the notion of paying for what is essentially free.
The Tappening Project, which promotes tap water in the U.S. as clean, safe and more eco-friendly than bottled water, launched a new ad campaign in May. The company has also sold more than 200,000 reusable hard plastic and stainless steel bottles since last November.
Aware of consumer concerns, some bottled water makers are trying to address the issue. Nestle says all its half-litre bottles now come in an "eco-shape" that contains 30 per cent less plastic than the average bottle, and it has pared back other packaging. PepsiCo and Coca-Cola have also cut down on the amount of plastic used in their bottles.
US cities launch pro-tap campaigns
Many cities, including New York, have enacted pro-tap campaigns, and some have stopped providing disposable water bottles for government employees.
'It's becoming chic to say, 'Oh no, I don't drink bottled water, I'll have tap water.'—Tony Winnicker, San Francisco Public Utilities Commission
Chicago started a five-cent tax on plastic water bottles in January. San Francisco has done away with deliveries of water jugs for office use, instead installing filters and bottle-less dispensers, and banned the purchase of single-serving bottles by city employees with municipal funds. The city has already cut its government water budget in half, to $250,000 a year, said Tony Winnicker, spokesman for the San Francisco Public Utilities Commission.
"It's becoming chic to say, 'Oh no, I don't drink bottled water, I'll have tap water,' " he said.
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