1. Pepsi launched its bottled water brand Aquafina in 1994 to compete in the growing bottled water market dominated by Evian and Perrier. Aquafina used reverse osmosis to filter local tap water, making it inexpensive to produce. 2. By 1999, major competitors like Coca-Cola had also entered the bottled water market. Both Aquafina and Coca-Cola's Dasani brand focused on building distribution over promotional activities. 3. By the early 2000s, the bottled water category had grown significantly, prompting Pepsi and Coca-Cola to begin "Water Wars" through increased advertising and promotion of their respective water brands.