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.

The International Bottled Water Association (IBWA) and Earth911.com have formed a sponsored partnership to encourage increased and more extensive recycling of all empty plastic bottles.

For the next year, IBWA will sponsor Earth911.com’s Plastic Bottle Section http://earth911.com/recycling/plastic/plastic-bottles/. IBWA’s sponsorship includes contribution of research findings, video presentations and related information to help consumers better understand how to recycle these valuable materials.

Earth911.com hosts the nation’s largest and most comprehensive resource for consumer recycling information through its Local Recycling and Proper Disposal Directory. The Directory includes detailed data on how and where to recycle more than 240 products throughout 127,000 locations and programs in North America.

“Proper disposal of PET plastic bottles has become increasingly important,” said Earth911.com President Corey Lambrecht. “We are excited to offer the IBWA an opportunity to better reach and inform consumers about effective ways to participate in local recycling for plastic bottles,” he said.

“The Earth911.com/IBWA partnership will advance bottled water companies’ on-going efforts to provide effective solutions for proper, post-consumer recycling for all plastic bottles, including empty plastic water bottles,” said Joe Doss, President and CEO of IBWA. “This new partnership with Earth911.com gives our industry a valuable new way to communicate to consumers and provide them with education about the importance and effectiveness of plastic recycling,” he said.

“According to the U.S. EPA, bottled water containers make-up 1/3 of 1 percent of the U.S. waste stream,” Doss explained, “So for an effective solution to concerns about landfills, it is important to capture the containers of the thousands of products packaged in plastic, including bottled water containers, but extending far, far beyond it.”

Contact Jennifer Berry or Tom Lauria

Salt Lake City, UT (PRWeb) November 9, 2010 –DS Waters of America, Inc., one of the country’s largest providers of bottled water products, is pleased to announce the acquisition of substantially all of the assets of Mount Olympus Waters, Inc., which has been operating its home and office bottled water delivery business in the greater Salt Lake City area since the late 1800’s. As the significant resources of these two companies are combined, DS Waters will assume management of the bottled water delivery for all Mount Olympus customers. The addition of new water delivery service routes will enable DS Waters to enhance its service offerings, which include office coffeeservice and water filtration.

“I am excited to welcome the customers and employees of Mount Olympus Waters to our family of DS Waters brands. We look forward to continuing the unparalleled commitment to superior products and service that Mount Olympus has had for over 100 years,” said Jim Lewandowski, Vice President and General Manager of the West Central Region for DS Waters.

William C. Bailey, owner of Mount Olympus Waters, commented, “I have been an owner of this business for almost 50 years and wanted to hand Mount Olympus Waters over to a team of proven professionals that will continue to focus on preserving the Brand with continued emphasis on quality, growth and exceptional customer service. I have been associated with the senior management team of DS Waters for an extended period of time and we have served together in the leadership of the International Bottled Water Association. I am both proud and pleased knowing they will take Mount Olympus to the next level.”

“Bill has been an icon in our industry. He and his loyal staff have built a great business over the past 47 years and I am pleased that Bill has entrusted us to carry on the Mount Olympus tradition of excellence,” said K. Dillon Schickli, CEO of DS Waters. “

Tullius Partners, an investment banking firm that specializes in the bottled water industry, represented and acted as exclusive financial advisor to Mount Olympus Waters.

About DS Waters:

Formed in 2003, DS Waters is the producer and distributor of home, office, and retail bottled water, water filtration and office coffee products across the United States sold under the brand namesAlhambra®, AbitaSprings®, Athena®, Belmont Springs®, Crystal Springs®, Hinckley Springs®, Kentwood Springs®, Nursery® Water, Sierra Springs®, Sparkletts®, and Roast2Coast®, a coffee delivery service. The company, headquartered in Atlanta, Georgia, is one of the leaders in the U.S. home and office water delivery, focusing on three and five gallon, one gallon and single servebottled water products. Water is bottled at over 25 manufacturing facilities, and delivered to over a million homes and offices and retail establishments in more than 40 states. DS Waters and its associates also provide safe drinking water to communities during emergencies such as hurricanes, fires, floods, droughts and other natural disasters. Visit www.water.comor www.nurserywater.comfor more information.

Proud partner. Susan G. Komen for the Cure.®

ATLANTA, Nov. 10, 2010 /PRNewswire/ — DS Waters of America, Inc. announces the launch of its Athena® brand bottled water in all USA markets and via internet sales channels, providing a continuing boost to the company’s funding of breast cancer research, education and awareness.  Each bottle of Athena water sold generates a contribution to the cause.  Athena bottled water is noticeable by the signature pink ribbon prominently displayed on every bottle.

The 2010 acquisition of the bottled water assets of Athena Partners will substantially increase DS Waters financial commitment to finding a cure for breast cancer via research, education and awareness.  DS Waters recently also extended its agreement with the Susan G. Komen for the Cure® organization and will be donating a minimum of $800,000 by 2016.  An additional minimum contribution of $400,000 based on Athena water sales through 2013 will go to fund programs to combat breast cancer, for a guaranteed total of at least $1,200,000 in funding for the cause by the end of 2016.

Consumers now can purchase Athena brand water from any of the divisions of DS Waters, including Abita Springs®, Alhambra®, Belmont Springs®, Crystal Springs®, Hinckley Springs®, Kentwood Springs®, Sierra Springs® and Sparkletts®.  The company’s website provides another convenient purchase option; visit www.water.com for information on how to order Athena online.

The brand Athena and the Athena Partners organization were founded in 2003 by Patricia B. May, a breast cancer survivor, to raise money for women’s cancer research, awareness and education.

At DS Waters’ headquarters in Atlanta, as well as other company locations throughout the United States, a number of supportive events for Breast Cancer Awareness month are planned, including meetings with Athena founder Trish May, an “Athena Games” event, and postings on the company website of “Stories of Hope” from employees who are breast cancer survivors.

“The launch of the Athena brand and our partnership with Susan G. Komen for the Cure® gives each individual in our company the opportunity to make a difference in the fight against breast cancer.  Together we can come one step closer to a cure,” said Dillon Schickli, CEO of DS Waters.

About DS Waters:

Formed  in 2003, DS Waters is the producer and distributor of home, office, and retail bottled water, water filtration and office coffee products across the United States sold under the brand names Alhambra®, Abita Springs®, Athena®, Belmont Springs®, Crystal Springs®, Hinckley Springs®, Kentwood Springs®, Nursery® Water, Sierra Springs®, Sparkletts®, and Roast2Coast®, a coffee delivery service. The company, headquartered in Atlanta, Georgia, is one of the leaders in the U.S. home and office water delivery, focusing on three and five gallon, one gallon and single serve bottled water products. Water is bottled at over 25 manufacturing facilities, and delivered to over a million homes and offices and retail establishments in more than 40 states. DS Waters and its associates also provide safe drinking water to communities during emergencies such as hurricanes, fires, floods, droughts and other natural disasters. Visit www.water.com or www.nurserywater.com for more information.

Proud partner. Susan G. Komen for the Cure.® information.

Bill Bruce is group editorial director of FoodBev Media

DS Waters is really on the move. Just one day after announcing its acquisition of Echota Beverage Group’s HOD business in Knoxville, Tennessee, it bought Mount Olympus Waters in Salt Lake City – adding to the four companies already acquired since February.

In September, its Sparkletts division acquired the Utah-based home and office bottled water delivery business assets of AquaOne – enabling operation in a part of the country not previously serviced by the company.

In July, the company acquired the Athena bottled water brand and other assets from Athena Partners, a non-profit corporation headquartered in Seattle.

In June, DS Water’s Crystal Springs Crystal Springs acquired the home and office bottled water delivery business of Chester Mountain Distributors Inc and affiliates, which have been serving Long Island and the greater New York City area since 1998.

And finally, back in February, DS Waters acquired the assets of Yosemite Waters’ home and office bottled water delivery, coffee and filtration service business – operating in Central and Southern California.

About DS Waters

Formed in 2003, DS Waters is the producer and distributor of home, office, and retail bottled water, water filtration and office coffee products across the United States sold under the brand names Alhambra, Abita Springs, Athena, Belmont Springs, Crystal Springs, Hinckley Springs, Kentwood Springs, Nursery Water, Sierra Springs, Sparkletts – and Roast2Coast, a coffee delivery service.

The company, headquartered in Atlanta, Georgia, is one of the leaders in the US home and office water delivery, focusing on three and five gallon, one gallon and single serve bottled water products. Water is bottled at over 25 manufacturing facilities, and delivered to over a million homes and offices and retail establishments in more than 40 states. DS Waters and its associates also provide safe drinking water to communities during emergencies such as hurricanes, fires, floods, droughts and other natural disasters.

DS Waters is also partner of the cancer charity Susan G Komen for the Cure.

DS Waters of America, a producer and distributor of home, office, and retail bottled water, water filtration and office coffee products, has launched its Athena brand bottled water in all the markets across the US, and also on internet sales channels.

Athena bottled water is noticeable by the pink ribbon displayed on every bottle. DS Waters has acquired the bottled water assets of Georgia-based Athena Bottled Water.

Athena brand water is available at all the divisions of DS Waters, including Abita Springs, Alhambra, Belmont Springs, Crystal Springs, Hinckley Springs, Kentwood Springs, Sierra Springs and Sparkletts. The bottled water can also be purchased from the company’s website www.water.com.

DS Waters CEO Dillon Schickli said that the launch of the Athena brand and the company’s partnership with Susan Komen for the Cure gives each individual in the company the opportunity to make a difference in the fight against breast cancer.

Alexandria, VA – The International Bottled Water Association (IBWA) applauds efforts to encourage consumers to always recycle, a key aim of the America Recycles Day campaign. This event was founded by ‘Keep America Beautiful” thirteen years ago and has been celebrated each year on November 15 to remind Americans about the importance of personal recycling and the need for effective community recycling programs.

Plastic bottled water containers – whether single serve PET, or home and office delivery (HOD) 3 and 5 gallon jugs – are all 100 percent recyclable. In addition, HOD plastic water jugs are reusable. The bottled water industry has encouraged recycling for many years and taken actions to help improve community curbside recycling programs.

“Efforts to educate consumers about recycling empty plastic water bottles appear to be having an effect. A 2008 National Association of PET Container Resources (NAPCOR) study (the most recent data available) found recycling rates for bottled water containers at a decade high of 30.9 percent,” said Tom Lauria, Vice President of Communications at the IBWA, “That’s a 32 percent improvement over the previous year, and more than 50 percent improvement since 2006.” Currently, bottled water containers are the single most recycled item in single stream curbside recycling programs. In 2008, data from the “Post-Consumer Plastic Bottle Recycling Report” indicates the recycling rate for all plastic bottles is 27 percent.

“It is encouraging that the improvement of bottled water container recycling is now over the 30% mark, but we are reminded that still more needs to be done by bottled water companies and all companies producing consumer products packaged in plastic,” Mr. Lauria said.

Furthermore, the industry has made significant inroads in reducing the amount of virgin plastic used to make bottled water containers by light-weighting its packaging. Over the past 8 years, the total weight of PET plastic bottled water containers has been reduced by 32 percent. This has saved over 1.3 billion pounds of PET resin plastic. Other innovative ways to improve recycling is by expanding the use of recycled PET (rPET), and exploring new compostable and bio-degradable plastics.

According to the U.S. Environmental Protection Agency, PET bottled water containers as comprise only 1/3 of one percent of the U.S. waste stream. Although a relatively small amount, bottled water companies are serious about bringing that statistic down even further. Earlier this year, members of the International Bottled Water Association approved a plan that would see our industry work more closely with municipalities to improve the recovery of recyclable material, primarily through the expansion of single-stream curbside recycling collection programs. Right now, approximately half of American communities do not have such programs.

“IBWA’s ‘Material Recovery Program’ framework is intended to assist in developing new, comprehensive solutions to help manage solid waste in communities throughout in the United States by having all consumer product companies work together with state and local governments to improve recycling and waste collection efforts,” Mr. Lauria said. “The bottled water industry is ready to take action on this front, but to truly improve how America recycles, we need a comprehensive effort that focuses on all consumer product packaging.”
“America Recycles Day is an important, one-day event, but consumers should think about recycling everyday and make a point to do it right,” Mr. Lauria said. In order to reach consumers about recycling, IBWA recently partnered with Earth 911.com, a major consumer education services company and website that addresses product end-of-life solutions and provides proper disposal information for more than 200 consumer products in over 120,000 locations. IBWA sponsors the website’s section on plastic bottle recycling. (http://earth911.com/recycling/plastic/plastic-bottles/)

“America Recycles Day is a time to spotlight the importance of recycling, and I encourage all bottled water drinkers to take the America Recycles Day pledge (http://www.kab.org/site/PageServer?pagename=ARD_Pledge),” he said.

Contact: TOM LAURIA
703-647-4609 or 703-887-4056