Selling Ice to Eskimos - The Business of Water

Last week I found myself in a second hand shop in Milton and discovered a soda siphon. Frosted onto the glass was its maker, Lanes Ltd, and its description, Gold Metal Aerated Water. Given the proliferation of packaged watered it lead me to ask - What is the story behind bottled water?

After a little internet surfing I found that sparkling mineral water or “fizzy water” was first machine made during the seventeenth century when an English reverend Rev Joseph Priestly applied carbonic acid to pressured water. The benefits of natural mineral water had long been associated with good health and finally the production of such an elixir was one step closer to reality.

Three years later in 1771 a Swedish chemist, Tobern Bergman, fabricated a machine to facilitate the commercialization of this process but was unsuccessful. It was not until 1790 that a feasible production process was conceived by German Jacob Schweppe, a name synonymous with carbonation.

Amazingly enough I discovered that the oldest bottled water company in the world is a New Zealand one, Waiwera Infinity established in 1875. They are still at the top of their game being named best water by Decanter in the UK and also best bottle design at a design competition in Italy in 2006. Unfortunately I was unable to find much information on Lanes Ltd (except for another soda siphon on Trademe) so there ends a brief history of water.

How did drinking water become so trendy? Perhaps the need to drink eight glasses a day, a fact ingrained in my generation, is what water marketers are tapping into?

New Zealanders drink (still looking for the statistic ... help?) of bottled water a year.

What is the difference between bottled water and tap water? Apparently not much, at least in the US. Both Coke and Pepsi main stream water brands are nothing more than packaged municipal water. It’s hard to believe isn’t it? Is this the case in New Zealand also? Where does PUMP water come from?

However, most New Zealand tap water does not taste the same as its bottled equivalent. Added chlorine and little bubbles that produce a murky appearance mean that there is a difference. Is this difference worth the premium we are paying?

An emergence of premium waters is taking place, especially in restaurants. New Zealand brands Antipodes and Mt Pisa and are fetching up to $10 for 750ml at our trendiest spots. Perhaps it is an attempt to compete with the world wide water tycoons Evian and San Pellegrino which have featured for years on wine lists. It is has never been more trendy or acceptable to drink water, especially premium priced New Zealand water. Claridges Hotel, London, sell 42 Below Volcanic water for 21 pounds for 420 ml!

Ten dollars may sound extravagant but cult waters are surfacing. Bling H20, a Hollywood accessory, sells its water online for around $20 - $40 depending on design and how many Swarovski crystals are stuck to the bottle. Triple this and this is what you can expect to pay at an A list venue.

One can not deny to marketability of water as given that Aquaplus specializes in branding water for your organization.

What impact is all this having on our environment and landfills? Opinions vary. Gary Hemphill, a New York marketing executive, splits the water market into ‘water replacement’ and ‘refreshment’ segments. Obviously tap water replacement business means more plastic in landfills. On the other hand, refreshment consumer at the drinks cabinet, are making a health choice not an environmental one as most refreshment products are packaged in plastic bottles. Ceteris paribus, buying water is not creating more rubbish but different rubbish. But all things are never the same and are the health benefits increasing refreshment purchases?

One blog I read suggested that tap water is going to come back into favour as the world rethinks the environmental impact of what we consume. Lately I have found myself buying more sparkling than still water as a refreshment purchase. I am proud to say that it is New Zealand water that I drink.

The marketers of water are doing a great job and the adage of selling ice to Eskimos holds true in this industry as we are sold something that we already have in abundance.