Nestlé’s North American bottled water operation has hired Michael Washburn as director of sustainability.

In his new role, Washburn will lead Nestlé Waters’ efforts to increase recycling rates in the United States, innovate in energy use and building design and advocate for constructive water policies.

Nestlé Waters sells 15 brands of bottled water, including Perrier, Deer Park and Poland Spring.

Washburn recently held a senior position at The Wilderness Society, a public lands advocacy organization. He also served as vice president of brand management for the Forest Stewardship Council, where he advanced the adoption of independent forest-certification and product labeling programs.

Washburn spent over 15 years working in conservation roles at non-profits and universities, with a focus on sustainable forestry and land conservation. He holds a Ph.D. in forest policy from Penn State University.

“I’m eager to put my resource management and conservation experience to work for Nestlé Waters,” Washburn said. “I feel strongly that bottled water brings value to society, and I am looking forward to continued engagement with a wide range of stakeholders around water advocacy, energy use, waste and recycling approaches, such as Extended Producer Responsibility.”

Also on the HR front, Dell’s executive director of sustainable business, Mark Newton, is leaving the company after eight years.

Danone May Make Small Nutrition, Water Acquisitions, CFO Says

By Tom Mulier - Feb 15, 2011

Danone, the world’s biggest yogurt maker, may purchase smaller companies to expand in medical nutrition and water, Chief Financial Officer Pierre-Andre Terisse said.

“There may be some acquisitions” in medical nutrition, he said in an interview in Paris after the company reported an 18 percent increase in 2010 profit. The bulk of the unit’s growth will come from existing businesses.

Danone also might make a “small” purchase in bottled water, Terisse said. The Evian bottler may expand existing water brands into new markets as it did by introducing the Mexican Bonafont brand to Brazil.

The French maker of Activia yogurt got 6 percent of its sales last year from medical nutrition and 17 percent from bottled water. Danone is also planning to add fresh fruit products to its ranges as part of a joint venture with Chiquita Brands International Inc., Terisse said.

“We think a bit wider than the pure use of milk or the pure use of water,” the CFO said, adding that Danone has introduced flavored waters and an energy drink in Asia called Mizone. Danone and Chiquita are testing the fruit products in Belgium and soon will start a trial inGermany, he said.

Danone might also start selling other products linked to Qua, an Indian water brand the company recently acquired that bottles water from the Himalayas, Terisse said.

To contact the reporter on this story: Tom Mulier in Geneva at tmulier@bloomberg.net.

Toxic Rocket Fuel Chemical Tap Water in America – Pass the Ozarka Bottled Water

Why is a toxic rocket fuel chemical in tap water in America? The Environmental Protection Agency is setting out to make a first federal drinking water standard. According to the Obama administration, the rocket fuel chemical in tap water is linked to thyroid problems in pregnant women and young children.

Why is rocket fuel in the tap water at all? Why does it take the EPA to get this toxic chemical out of the tap water?

Lisa Jackson, EPA administrator, explained that the organization is working to set a new standard in public health regarding drinking water. The EPA desires new technologies to be created that would clean up the tap water in America. Unfortunately, it could take up to two years before the rocket fuel chemical is removed from the tap water.

Monitored testing from 2001 to 2005 showed that “153 drinking water sources in 26 states contain Perchlorate.” The rocket fuel chemical is found in explosives and fireworks. What caused this toxic chemical to get into the nation’s tap water? The EPA explained that the contamination was “caused by improper disposal at rocket testing sites, military bases and chemical plants.”

Jackson spoke about the toxic rocket fuel chemical in America’s tap water. She said, “As improved standards are developed and put in place… clean water technology innovators have an opportunity to create cutting edge solutions that will strengthen health protections and spark economic growth.”

Jackson will appear before a Senate panel today to state the EPA’s case in regards to the per chlorate in the tap water. She is expected to get opposition from “Republicans who plan to take on the EPA over air pollution regulations, controls on the gases blamed for global warming, and other regulations.”

What do you think about this rocket fuel chemical being found in our tap water? Do you think that after Americans learn about this dangerous fuel that bottled water sales will increase greatly? Pass the Ozarka bottled water.

Tap Water Not the Best for Breadmaking

by Heloise, Texarkana Gazette (published 02/02/2011)

Dear Heloise: I would like to give you this little hint: Never use tap water to make bread. The chemicals kill the action of the yeast. Use only bottled water.–Marlene E., via e-mail

You need to know what is in your tap water to be the most successful when baking bread. Many cooks do use distilled water or bottled water when baking from scratch. It can’t hurt!—Heloise

Expert: Public needs education on sustainability

by Mike Verespej (Published January 10, 2011)

Much of the focus in plastics packaging — and rightly so — has been on shrinking the weight and size of the package, and lowering a package’s total environmental footprint. But changing a consumer’s perception that plastics are bad may be one of the largest challenges companies face in their sustainability journey.

“Most consumers know less than you might think they do,” said Suzanne Shelton, president and CEO of Shelton Group Inc., an advertising agency in Knoxville, Tenn., that focuses on motivating consumers to make sustainable choices and helps companies develop green marketing campaigns.

Indeed, according to Shelton Group surveys, 69 percent of consumers equate green with environmentally friendly, 50 percent define green as something that is recycled or recyclable, and another 40 percent view something as green because it’s energy-efficient.

“The consumer knows just enough to get them through a cocktail party,” said Shelton, the kickoff speaker at the Sustainable Plastics Packaging 2010 conference, held in Atlanta. The December event was organized by Plastics News Global Group.

Consumers have “a broad definition”  of what green means, she said.  “You’d be surprised at the number of consumers that look ashen-faced when you tell them that not everything plastics is recyclable,” Shelton said. “They don’t understand how the system works and are giving themselves credit for being greener than they are just because they throw everything in the trash and think it is recyclable.”

Similarly, she said, consumers are concerned about potential health hazards from chemicals used to make plastic products and those in health and beauty products. But they don’t really know what chemicals are hazardous and what products contain potentially hazardous chemicals.

For example, only 22.5 percent identified polycarbonate as a potential candidate for leaching bisphenol A. Nearly 60 percent weren’t sure what products BPA could leach from, while 28 percent said polyethylene plastics leach BPA, 23 percent said polypropylene could do so, and 9 percent said aluminum cans coated with water-based epoxy could leach BPA.

In a similar fashion, 15 percent identified glycerin as a harmful ingredient in skin-care products, 11 percent cited lanolin as a harmful ingredient and 22 percent thought phthalates could be found in skin-care products.

“There is confusion and a lack of knowledge,” said Shelton. “It’s up to you to wake them up.”  But she advised companies to “keep it simple and don’t use jargon.”

“Highlight a single issue, do it in a light entertaining way and give them a simple plan of action,” said Shelton. “They’re confused because there is so much information for them to digest, they don’t know what the right choice is.”

She said companies should tailor their sustainability messages to a specific category and give the consumer a specific reason to buy the product and “believe your claim.”

“You need the line of copy that tells the consumer what the benefit is to them,” she said.  For example, with a BPA-free product, she suggested that companies might say that the product is “better for your family” or that it has “no harmful chemicals.” She also cited the use of the word ‘organic’ as an example of how consumers are confused about labeling and claims on packaging.  “Organic doesn’t buy [a company] anything because consumers don’t understand it,” said Shelton. She pointed to her recent survey results that found 42 percent of consumers thought a food product could be organic, but not sustainable; and nearly 50 percent weren’t sure if that was the case. “Consumers don’t understand that the use of the word ‘organics’ on food is regulated. They think you’re screwing them.”

She also stressed the importance of getting the message right on the packaging because “94 percent of consumers think you are lying to sell them something.”

“It is really important that you get the message right and avoid jargon,” she said “The way ingredient claims and sustainability claims are worded on packages is critical. Chemical names don’t mean anything to consumers and terms like ‘low VOCs’ are lost on them.

“The consumer is reading the package to make an informed buying decision and too often you are throwing jargon at them,” Shelton said. “You must make the message clear because what the package says is critical to a consumer’s decision to buy.”   The critical message varies by product category, but, in general, the most important phrases to consumers are ‘recyclable,’ followed by ‘biodegradable’ and then ‘recycled content,’ she said.

“In non-food products, ‘recycled content’ and ‘safety’ seem to be the words that work best,” said Shelton, as 39.8 percent pointed to recycled content, 35.9 percent focused on whether a package says that it contains no potentially toxic chemicals and 30.3 percent want to know if a non-food item is healthy and safe.

“Recycling always matters,” she said. “But packaging as a green attribute only matters in some categories.”

She also said that in the U.S., larger is what wins more often when it comes to recycled content.

“The consumer has no idea that packaging’s real job is to protect the product, and the American way is that 100 percent is better than 10 percent,” said Shelton. “So if the tiebreaker in a category is recycled content, larger wins. So you have to be better, faster, sexier and smarter” than your competition.

Apple Announces Apple Water!

Cupertino, CA — Step aside, Perrier. Prepare for oblivion, Poland Spring. After steamrolling the music player, smartphone and tablet markets, Apple is out to disrupt a whole new category.

Today Apple announced Apple Water — a cool refreshment made for those willing to suspend all logic and pay the price for Apple’s lavish attention to quality and design.

“If you’ve been drinking the juice, you’re ready to drink the water,” proclaims Apple’s website.

Like iPod, iPhone and iPad, Apple Water is part of a closed ecosystem. By breaking the seal, you accept a User Agreement that prohibits refilling the container with tap water, spring water or any unauthorized third-party water.

Power users can quench their thirst with Apple Water Pro

“We’ve heard people say ‘there must be something in the water over there,’” said Apple spokesperson Lindsay Grebner, “and there is. We’re happy to share our water with fans all over the world.”

Apple Water is indeed an Apple-lover’s dream — pure, clean H2O, captured in Apple-designed containers from the central irrigation spigot at Apple’s corporate headquarters.

AAPL stock soared on the announcement today. Analyst Gene Munster of Piper Jaffray raised his target price to $500, noting the low cost of materials and customers “endless thirst and inscrutable need” for all things Apple. “Apple Water,” says Munster, “is somewhere between tap water and holy water.”

A 16-ounce container of Apple Water retails for $9.99. Apple Water Pro, a five-gallon jug, is only $49.99.

Bottled Water Sales Rebound in 2010

by Melissa Kress

Along with the jobs, housing and retirement funds, sales of bottled water became a victim of the struggling economy, with actual sales dropping 10.2 percent in 2009. But just as some business are beginning to see the light at the end of the tunnel, bottled water sales rebounded in 2010 — and insiders forecast much of the same for 2011.

According to the recently published Convenience Store News Industry Forecast Study, bottled water sales inched up 4.2 percent in 2010 and are expected to grow another 3 percent in 2011. While those numbers may not scream “wow,” it is pretty significant when compared to the decline posted the previous year.

CSNews research also forecasts unit volume per store and sales per store to hover near 3.3 percent and 2.8 percent, respectively, after hitting 4.2 percent and 4 percent in 2010. These numbers are noteworthy because 2009 figures saw actual unit volume per store decrease 11.4 percent, and actual sales per store decrease 9.4 percent.

And the research seems to be right on target. Some convenience store operators have even seen their bottled water sales post dramatic numbers. “Pretty much every region is up,” said John West, director of marketing for Southwest Convenience Stores based in Odessa, Texas. “It is more than double digits over last year.”

Echoing the large increase is Little General Stores, based in Beckley, W.Va. According to Don Bolen, director of marketing, the regionally based convenience store operator with stores in West Virginia and Virginia saw overall retail sales in the water category jump 11 percent in 2010.

Proving the supply-demand equation, the increase in bottled water sales is also reflected on the supply side. Chris Silk, manager of channel development, c-stores for Nestle Waters North America Inc., noted the company’s bottled water category was up 5.6 percent year-to-date according to research from Nielsen U.S. C-Store Scantrack through Nov. 27, 2010.

Coco-Cola North America also registered an uptick in bottled water sales. “We have seen continued strong performance of smartwater in the convenience retail channel during 2010,” said Russell Baker, channel planning and development for CR, drug, value & spec retail for Coca Cola Refreshments. “It has been a key driver of growth for us across our portfolio, and we expect the momentum to continue into 2011.”

But where is the growth coming from? Anyone who has ever scanned the refrigerated cases at a convenience store knows that water is no longer just water. Flavored, enhanced or “plain vanilla” options are just a few available on the shelves, and the growth areas differ just as much as the choices. Southwest Convenience Stores, with more than 300 stores under the 7-Eleven flag in New Mexico and Texas, has seen the increase in regular water, according to West.

“The increases have all been in regular water,” he explained. “Our one liter sales were very strong this year, and our case bottle water sales were also very strong.”

Little General Stores also saw the register ring more for regular water in 2010. “Growth was driven by regular plain water, which was up 15 percent in units and 11 percent in retail sales,” Bolen said. “In addition to strong results from the cold vault, take home packages contributed significantly to this growth.”

Also, the growth is generally spread evenly across its stores, he noted. “We are in an area with a good mix of both interstate and rural traffic, but overall the category mix is quite close, with the exception of stronger 12-pack and 20-pack take home sales in the non-interstate locations.”

However, this not to say individual bottles of water aren’t moving, as witnessed by Coca-Cola. “The growth in convenience retail is primarily driven by immediate consumption as opposed to case packs,” Baker said.

As regular bottled water saw an increase, Bolen noted that Little General Stores locations have seen a decline in flavored water. “The flavored segment has declined due to customers trading to flavored water enhanced with vitamins,” he explained. But even that segment has seen its ups and downs.

“This vitamin-enhanced segment has leveled off compared to steady growth numbers from the last two years. Some of these customers have switched to either energy-based or juice-based drinks, both of which have seen consistent increases,” Bolen said.
Baker echoed this growth, noting that Coca-Cola North has had similar experiences. “The biggest drivers of growth for our water portfolio in 2010 have been glaceau smartwater and the introduction of glaceau vitaminwater zero.”

However it seems this experience is not across the board. According to Nestle Waters North America research it received from Nielsen U.S. C-Store Scantrack, the Sweetened and Enhanced Water category finished its second year in decline in the U.S. c-store channel, Silk said, with the category down 2.8 percent in gallon volume year-to-date through Nov. 27. In contrast, Silk noted, categories with health and wellness attributes such as ready-to-drink tea, sports drinks and bottled water showed growth in 2010.

Now with 2010 behind us, what is in store for the bottled water category in 2011? CSNews research forecasts a 3.3 percent growth in unit volume per store, 2.8 percent growth in sales dollars per store and 3 percent in overall sales dollars. C-store operators also expect this slightly-less-than-2010 uptick.

“I expect it to grow consistent with our total beverage category projection of 8 percent,” Bolen said of Little General’s 2011 projection for bottled water.

And West at Southwest Convenience Stores also expects sales to rise again this year. “It will probably not do as well because we had some huge numbers [in 2010}, but we do expect the trend to continue,” he said.

While it still remains to be seen what numbers the bottled water category pulls down in 2011, the industry — both retailers and suppliers — seem optimistic that 2009 is far behind.