“An Overview of the BPA Controversy”

“An Overview of the BPA Controversy”

by Joe Doss, President and CEO, International Bottled Water Association

In the past few years, there has been a great deal of controversy and scrutiny concerning Bisphenol-A (BPA), a component of polycarbonate plastic. Some scientists, legislators and environmentalists have voiced various and often conflicting opinions on BPA and its potential health effects.  However, the overwhelming majority of experts and regulatory agencies throughout the world believe that BPA is safe for use in consumer food products.

Regulatory agencies in several countries have ruled favorably on the safety of BPA, including the U.S. Food and Drug Administration (FDA), European Food Safety Authority (EFSA), Swiss Federal Office of Public Health, French Food Safety Authority, Health Canada (the FDA equivalent in Canada,) Food Standards Australia New Zealand (FSANZ) and the Japanese National Institute of Advanced Industrial Science and Technology (NIAIST).

The consensus among these regulatory agencies is that the current levels of exposure to BPA through food packaging do not pose an immediate health risk to the general population, including infants and children.  As noted by Health Canada, an adult would have to drink approximately 1,000 liters (or 264 gallons) of water from polycarbonate water cooler bottles every day to approach the science-based safe intake limit for BPA recently established in Canada.

Many bottled water companies use polycarbonate plastic for their 3 and 5 gallon water cooler bottles.  Polycarbonate plastic is also widely used in various food containers and many other everyday items, such as eyeglasses, paper store receipts, compact discs, cell phones, can liners; the list is almost endless for this popular material.

From November 1 – 5, 2010, the World Health Organization (WHO), in cooperation with Health Canada, the U.S. Food and Drug Administration (FDA), the European Food Safety Authority (EFSA), and other international health agencies, held a stakeholder and expert panel meeting in Ottawa, Canada.   In a November 9, 2010, statement published on its website, WHO reported that the international expert panel reviewed all the latest scientific evidence on BPA and its potential to affect human health.  Importantly, because the panel could not determine the relevance of newer studies linking very low levels of BPA in the body with some adverse health effects, it stated, “Initiation of public health measures would be premature.”

Earlier, on September 30, 2010, EFSA re-confirmed the existing safe intake level for Bisphenol A.  EFSA stated: “Following a detailed and comprehensive review of recent scientific literature and studies on the toxicity of bisphenol A at low doses, scientists on EFSA’s (review) Panel conclude they could not identify any new evidence which would lead them to revise the current Tolerable Daily Intake for BPA of 0.05 mg/kg body weight set by EFSA in its 2006 opinion and re-confirmed in its 2008 opinion. The Panel also state that the data currently available do not provide convincing evidence of neuro-behavioural toxicity of BPA.”

On January 15, 2010, The FDA released “Update on Bisphenol A for Use in Food Contact Applications,” an updated statement regarding the agency’s position on the use and safety of BPA in food contact materials.  The FDA statement confirmed the overall safety of BPA used in food containers. FDA noted that “standardized toxicity tests have thus far supported the safety of current low levels of human exposure to BPA.” FDA did, however, state that based on studies “using novel approaches to test for subtle effects,” it has “some concerns” about the potential effects of BPA on infants and young children.   The FDA’s reference to “novel approaches” refers to the “low-dose theory,” which the World Health Organization and EFSA reviewed and found no evidence to support claims of adverse health effects.

FDA has not taken any formal action to prohibit the use of BPA in any food products.   In fact, FDA cautioned against making any changes in food packaging or consumption by either industry or consumers that could jeopardize food safety or reduce intake of food needed for good nutrition.  Bottled water companies using polycarbonate containers can therefore continue to sell their products fully confident of consumer safety.

The FDA’s position on the safety of BPA did not stop the U.S. Congress, 22 states and numerous localities from proposing over 80 separate pieces of legislation in 2010 to ban or severely limit the use of polycarbonate plastic with BPA in children’s products, food containers and other applications.  Minnesota was the first state in the U.S. to enact a restriction on the sale and distribution of certain products containing BPA. That happened in 2009, and since then seven other states have also enacted BPA restrictions – Connecticut, Massachusetts, Maryland, New York, Vermont, Washington State and Wisconsin. In part because IBWA and our allies remain diligent in keeping lawmakers apprised of the solid science behind the safety of BPA, the majority of these new laws are more narrowly focused on products intended for young children (such as  baby bottles and sippy cups) and none of them currently apply to bottled water products.

IBWA has worked with broader industry coalitions managed by the likes of the American Chemistry Council (ACC) and the Grocery Manufacturers Association (GMA) to fight these misguided efforts to ban BPA.  In a few instances where proposed legislation was broader and appeared to capture our industry’s polycarbonate water bottles, IBWA members raised their voices and worked to have those proposals amended so that they did not directly impact the bottled water industry.  They contacted their legislators and attended a public hearing in order to voice their concerns about how a BPA restriction would negatively impact their business and thus the local economy.

IBWA members made certain that legislators understood that bottled water is a packaged food product highly regulated by the FDA and by the states in which they operate, and that the FDA continues to confirm the overall safety of BPA used in food containers. IBWA members also made certain that legislators knew that this was not just a “baby bottles and sippy cups issue”, and that polycarbonate water bottles could easily be considered a reusable food and beverage container under the wrong definition.  And IBWA members also made certain that legislators knew that replacing their existing polycarbonate water bottles would be very cost-prohibitive, and restricting their use would have negative economic consequences for local companies and the entire bottled water industry.

As we look ahead in 2011, concerns over BPA are not likely to go away.  The issue will continue to be very important for all IBWA members – small, medium and large. Inaccurate perceptions are likely to continue among legislators, and even some in the bottled water industry.  We should expect as much, if not more, related legislation in the coming year that could impact the bottled water industry – particularly in Illinois, New York, Maine, Oregon and Pennsylvania, as well as in Congress.

IBWA will continue to defend and provide the facts about the safety of BPA.   IBWA members and regional associations such as SEBWA must remain actively engaged and involved in providing accurate industry and BPA information to legislators in order to ensure that related legislation is not overtly and unintentionally broad to the point of unnecessarily harming our industry. If not, new BPA restrictions may directly impact the bottled water industry in negative ways.  If you want to get involved on this issue, please contact IBWA.

Meeting Stresses Caused by Recession & Reducing Costs

Meeting Stresses Caused by Recession & Reducing Costs

by Dr. Fred Garrett, dvm, CEO Nantze Springs Bottling Company

During this time when most business’s have been stressed out due to the recession and to the sharp reduction of pricing structures caused by heavy competition among the large end bottlers, it becomes necessary for all companies to attempt to reduce labor cost. One of the areas that Nantze Springs has looked at is route calling. We have always made next day calls to non-business accounts. This has taken one full time employee dedicated to this job.

We are now 3 months into a program in which we are using automated calling. This program will make one call every 48 seconds on up to 4 dedicated lines. We are at present using 1 dedicated line. This can make our next day home route calls within a 7-hour time frame. This relates to a $20,000 plus savings in labor cost with a $5,000 outlay cost.

This system allows our own voice overlays. We can use this message system to promote any new products or promotions. This is easy to do and takes little time. After all calls are made the system will redial any missed calls twice. It then gives a printed report of all completed calls, no answer calls, and bad number calls.

In our business model we have found water sales to be flat to negative. Several years back we felt this would become a reality. This has come about not because of water sales, which has been increasing, but because of large corporations in competition with each other forcing the product price to a level in which the is no profit margin left for the small to medium size bottler.

In order to offset these sales and annual growth in the company we have looked at different models in order to stay afloat during these times of transition. In order to offset water sales we started a project to be able to produce products other than water. We now have a system in place in which we can blend and mix any tea or flavored waters. This allows us to be able to co-pack for outside companies. We also have developed several products that we presently market in multiple states.

We at Nantze Springs welcome any comments.

I have a spring!

I have a spring!

by Clay Bell, Vice President & General Manager, Melwood Springs Water Co.

“I have a spring and it has the purest water that has ever been tested. I want to get in the bottle water business.” How many of us have had this call, I personally get about 2 a week.

My first question to the person is what is pure? I have looked at all my test analysis and have yet to find a MCL (maximum contaminate level) for pure. I have called the FDA for a definition that I can measure but have yet to find one. We (Melwood Spring Water Co.) are in the Bottle Water business and are members of the SEBWA and IBWA. Without these organizations I can see in my mind the number of times that I would have been standing in front of the television camera with a microphone in my face being asked all kinds of questions and answering ‘I don’t know’.

Guess what I do know, I attend the conventions; I get my C.E.U.’s, I am a certified bottle water plant operator! The knowledge, resources, and relationships that these associations bring to the table are priceless.

The second thing I do when I receive the call about a spring and someone getting into the water business is recommend to that person to join the SEBWA. I explain the wealth of knowledge they will get for the small sum for joining. Then I tell them to go to the conventions meet the people use their experiences before they invest a lot of money. The people that you get to know in this business are a very valuable asset to doing business. I don’t know how many times we have been late on a shipment of raw materials or had equipment down and picked up the phone and called another SEBWA member, who is my competitor, to get help to get my product out the door. What kind of price can you put on that?

The SEBWA is an organization that the small Bottler or Distributor is just as important as the big guy. We work together with our Suppliers (who support our organization as much if not more than the bottlers). Our Supplier members attend the conventions and board meetings and they support SEBWA. They will work with us to make each one of us feel just as important as the next. The one-on-one setting at the shows is a great way to share news ideas or products. This is a great business where your fierce competitor Monday through Friday can be a friend and share knowledge at meetings and conferences.

I recently had the opportunity to repay some of those favors when a dear friend and bottler called me with problems in their plant. We jumped at the chance to help them out till they could get their plant back up and running.

In summary, I think that the SEBWA is one of the best organizations that a bottler can belong to. Just look at our board meetings  – we try to hold them at one of our bottler’s facility and have a plant tour afterwards. What other organization would invite your competitors into your house and show them what you are doing. This is great that we make our industry stronger by sharing our knowledge with each other.

I am glad to say I am a member of the SEBWA.

Suggestive Selling

Suggestive Selling
by Allen Wankat, Culligan International

Ever been to McDonald’s, Burger King, or Wendy’s? Immediately after the order is placed, the counter person always has one of several questions to ask: “Would you like fries with that?” or “Would you like to supersize that?” or “Would you like an apple pie with that?” and even “Would you like cheese on your burger?” Those are the simplest examples of Suggestive (or add-on) Selling that explain the concept used by many businesses. Banks even are asking, “Have you heard about the overdraft protection that we offer?”

The reasons businesses go to the effort to train employees to suggest additional products or to “up sell’ are many, but usually zero in on one key reason: added revenue and profit for the business. Fries, soft drinks, added cheese, larger portions, and yes – overdraft protection are all high margin add-ons.

Bottled water suggestive selling — Will drivers do it? What is there to sell? Is it worth the effort? Some of the answers are obvious, and some are not. Normally, most HOD bottled water suppliers are already suggesting adding bottles when the weather turns warmer – almost a given. But this is a given that may not happen if the management team does not lay out a program, or maybe a contest.

Suggestive selling generally is not an easy thing for route drivers, or even for personnel who answer the phones in the office. Drivers often love their job, partially for what it is not. It is NOT a job where there is pressure to sell. They deliver. The personality of many route drivers can be introspective, and it is management’s duty and opportunity to train route drivers, and to move them toward becoming route salespersons.

How can such training be accomplished? Through role-playing. Role-playing is easy, can be done in a few minutes daily, and can be done in small or large groups. The meetings can be fun, motivating, or drudgery, depending on management’s approach and planning.  Specific goals should be stated, short written scenarios used, and the route manager or owner should lead the way. The question a route person could ask a customer could be as simple as, “It sure is starting to get hot! Would you like to look at a program we have so that you won’t run out of water?” At this point, the driver reaches forward, hands the customer a sheet of paper with just a few words explaining the program to add a bottle.  The driver who is shy or a little bit quiet does not have to recite a fancy sales pitch!

What else can be sold? Half liter bottles? Add-on products? How about customer referrals? Each program requires training, goal setting, and an offer sheet. Goal setting is not complete without a call to action, which include offer requirements and an ending date for the offer or prize!

Like everyone, most route sales personnel are motivated by recognition and rewards, often times in that exact order. Team management (or the business owner), need to post results compared to goals, on a chart for all to see. Contests are another whole subject, but usually pay for themselves.

Don’t forget about the folks who answer the phones, as earlier mentioned. They, too, can thrive when goals are set, role-playing is introduced, and prizes are awarded.

For smaller operations, it is easy to introduce very simple, but motivating “one-person contests.” It is as simple as saying, “If you bring in two referrals this week, I will take you to lunch” or “I will give you XYZ!” Every added product should improve the profitability of the business.

The author is Allen Wankat. Allen is the Franchise Development Manager for Culligan International and the current President of the Southeastern Bottled Water Association.