NRE 2215 Group 7. A look at Bottled Water: United States, Asia, and Latin America. Dave Niedz, Emily Maynard, Dan Masella

Transcription

1 NRE 2215 Group 7 A look at Bottled Water: United States, Asia, and Latin America Dave Niedz, Emily Maynard, Dan Masella

2 Bottled Water: South/Latin America 246% increase in consumption in South America across 7 years Compared to 176% increase in consumption in North America over 7 years

3 Growth of the industry Production and sales are predicted to flourish in Latin America over the next 5 to 10 years. Annual growth within Latin America is greater than the worldwide average growth rate of 7%. In 2009, Mexico had seen a 11.5% increase, Brazil a 17.9% increase. These countries are the 2 largest consumers of bottled water in the region. Mexico also holds the title for 2 nd largest consumer of bottled water in the world behind the United States. Primary reason for such large consumption is the lack of safe, clean drinking water in Latin American countries. Unlike the United States, bottled water is seen as a necessity rather than a lifestyle in these countries.

4 Major players in the market Mexican market has over 300 different name brands of bottled water. In recent years the market has seen mass buy-offs and consolidations by large international companies, namely Coca-Cola and Pepsi. Brazilian market remains more diverse with about 20 major companies competing for a share of the market. Grupo Edson Queiroz is the largest producer of those companies, claiming about 20% of the market. As the Brazilian market continues to grow, it is expected the draw the attention of the big 4 bottled water czars.

5 Ingenuity in Brazil One of the consequences of bottled water and one of the most hotly contested arguments against it's use is the enormous amount of waste it produces in empty bottles. During a blackout in Brazil, one man took that waste and used it to help his town. He took empty bottles and used them to create light. AWztZ6TI&feature=player_detailpage

6 Key points Pros: Cheap initial cost Little to no maintenance Re-using what would otherwise be thrown away Produce about as much light as a 50 watt incandescent bulb Powered by the sun, no cost to operate Produces a more natural, soothing light Improves way of life in developing areas Cons: Powered by the sun, meaning weather is always a variable Location, location, location. Not practical everywhere. For instance, they would be fairly useless in a large city with many tall buildings blocking the sun. Only viable for certain types of buildings.

7 Conclusions Latin America Lack of safe, drinking water throughout the majority of Latin America Due to this, bottled water is viewed by the people as a necessity rather than a commodity These circumstances have allowed and continue to allow bottled water companies to thrive in the Latin American market Bottled water isn't always a bad thing, depends on circumstances. For many people in Latin America it provides clean water for their families when there municipal water supplier fails to do that. A bit of ingenuity and the right attitude( waste not, want not ) can make a big difference as in the case of the water bottle light.

8 Bottled Water: The truth behind one of the Largest Industries in the World Issues: Tap vs. Bottled Saftey Carbon Footprint Industry Growth Global Perspective

9 The Bottled Water Industry $10.5 billion dollar Industry That s just in the U.S. Our Expert: Jane Lazgin Nestle, Corporate Affairs History of Nestle Citizenship Report

10 Scope of the Industry Growing Consumption Americans drink: 15 billion gallons of Soft drinks 4.7 billion gallons of bottled water Obesity? Strict Monitoring CBWA IBWA FDA

11 Scope of Nestlé's Bottled Water Industry Moved from Greenwich to Stamford in Oct. 2010, 75 to 525 employees Maintain 14,000 acres of land around water source 2,000 water samples tested each day 60x more frequently than the avg. municipal water supply In North America: Use 0.003% of Fresh Water

12 Bottled Water: The Healthy Choice 2/3 of North Americans will choose a bottled beverage over tap Bottled Water: Smallest Carbon Footprint Healthiest choice when it comes to caloric intake The Beverage Pyramid

13 Recycling & the Environment Water Use 1.6% water use ratio reduction 30% production increase The Convenience Factor Least carbon-intensive product

14 Recycling & the Environment 30% of water bottles are recycled in the U.S. 66% in Canada When not recycled: convenience-sized water bottles make up less than 1/3 of 1% of waste Largest carbon emissions impact: plastic resin production Nestle: 19% decrease in volume of packaging material by using the Eco-Shape bottles 98% of in-plant solid waste recycled

15 The Cold Hard Facts COLD HARD FACTS Bottled Tap Regulations Standards Testing Frequencies FDA: naming, good manufacturing practices, labeling, & quality FDA est. Standards of Quality (MCLs), As stringent as EPA, more stringent for: Copper, Fluoride, Lead, Nickel as often as necessary but at minimum frequency of: once a week for microbiological contaminants & once a year for chemical & radiological contaminants EPA with the SWDA. Set MCLs Primary & Secondary Drinking Water Standards. Primary: MCLs & TT. Secondary: Taste, Odor, Color, SMLCs Based on: system size, system type, source type, detections or known risks, monitoring waivers

16 Desertification in Asia Yunnan drought China s Qinhai province has lost over 2,000 of its 4,077 lakes since 1985 Yellow River runs dry part of the year and barely reaches the Yellow Sea

17 Pollution Some rivers are toxic to the touch, never mind drinkable Water in rivers is often green-black from uncontrolled pollution by thousands of factories

18 Possible Solutions $62.5 billion engineering project was created to transfer water from three southern river basins to northern provinces Veolia was hired in 2002 to manage water and wastewater systems in 17 Chinese cities including Pudong

19 Role of Bottled Water The people that need clean drinking water the most is 2/3 of China s population in the rural areas, yet these people cannot afford it by means of bottled water China comes in a close 3rd for largest consumer of bottled water behind the United States and Mexico