The Bottled Water Industry and Sustainable Operations


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Presentation on sustainable operations, supply chain management, green business, marketing and insights from the bottled water industry.

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The Bottled Water Industry and Sustainable Operations

  1. 1. The Bottled Water Industry and Sustainable Operations Steve Emery EARTH2O Natural Spring Water
  2. 2. Understand the category you compete in
  3. 3. Understand Market Dynamics Factors Impacting Beverage Distribution • Consumers driven by price first • Retail consolidation to national brands limited local options • Convenience & Gas category distribution purchased • National brands purchasing market share – DS Waters • Distribution cost increases • Disposable income declining
  4. 4. Michael Porter Competitive Advantage Model • Cost Leadership (low cost producer) – Private Label, Nestle • Differentiation – all other bottled water producers Believe theirs is best based on content of water • Focus – Coke (Dasani) Pepsi (Aquafina) outstanding distribution execution
  5. 5. Be careful of competitor creep Green Washing
  6. 6. Green Washing in the bottled water industry • “Carbon Negative” bottled water imported into USA use carbon offsets • “Eco” bottle – borehole pumping? • PLA Bottle – cradle to cradle or grave? • Reverse Osmosis waters generating 3 to 9 gallons (New state of the art 1 waste for 1 produced) of waste to produce 1 processed gallon: “Eco Challenge – bottle is 100% recyclable” – “our bottle is 100% recyclable change the bottle, keep the taste, help the earth” • X Waters “Go Green” campaign urges consumers to recycle
  7. 7. Porter Value Chain Framework reduce waste and communicate Waste = Expense & Emissions
  8. 8. Inbound Logistics
  9. 9. Elimination of waste in packaging First water company in US to eliminate Cardboard in PET Packaging
  10. 10. New Solar Array
  11. 11. Additional Operations • Recycling of inbound waste material • Affluent pond - evaporation and irrigation • Efficient and passive lighting • Facility heating • LEAN Manufacturing
  12. 12. Outbound Logistics
  13. 13. Conclusion • Get a clear understanding of the segment in which you compete and differentiate you brand message • Green Washing will cloud the sustainability effort, consumer confidence • Evaluation of Value Chain will help to determine sustainability of a product • The Value Chain with the least waste will be the most profitable and competitive • True investment in sustainable efforts will yield higher returns