Testing the Waters

We used to take water for granted. You would turn on the tap in the kitchen and out would flow cold, clean water. Surely the most egalitarian of products, even very poor households have running water, good thing too because our bodies are made with 60 percent of the stuff. Our brains are 70 percent water, our blood is 82 percent, and our lungs are virtually waterlogged at 90 percent H2O. In the United States alone, more than 400 billion gallons of water are used every day, easily making it our country's single biggest commodity. In truth, we are surrounded by it at all times in the form of clouds in the sky, vapor in the air, and underground water supplies not far below us.

Add to this the obvious lakes, rivers, and oceans, and we are literally awash in water. And yet as a nation, we are shelling out close to $3 billion a year for bottled water, a figure that points to the consumption of over 600 million cases. And that figure, according to ACNielsen, is only for 1.5-liter or less non-refillable plastic bottles. In other words, it doesn't include the large bottles that are delivered to homes or even the one-gallon bottles consumers purchase in supermarkets. Industry experts predict that in four years bottled water will be second only to soda pop as America's beverage of choice. "Water sommeliers" are appearing in trendier restaurants, Web sites are devoted to it, celebrities are defined by their brand of bottled water, and of course, no well-dressed soccer mom would be seen without a bottle of designer water. As the hottest category in the beverage market, bottled waters deserve some close scrutiny, so we'll plunge right into what is surely the marketing coup of the century.

Parting the Waters

If you think bottled waters are new, think again. Benjamin Franklin was the first to import bottled water to the United States, placing his order in 1785. Later, early American settlers often purchased water on their way west as insurance against watering holes of uncertain location and cleanliness. And of course, water from famous spas across Europe has been bottled, or otherwise contained, and sold for thousands of years. Athletes, especially bikers and cross-country runners, have long known the value of portable, potable water. Today, you are as likely to see people carrying bottles of water in a bag slung from their Armani-clad shoulders as attached to the frame of a bicycle.

Bottled waters are sold in virtually every imaginable outlet, and many that were heretofore unimaginable, including gas stations and vending machines. According to a report by Anne Christiansen Bullers on FineWaters.com, Americans consumed five billion gallons of bottled water in 2001, which is equivalent to the amount of water that flows over Niagara Falls in two hours. Despite that gusher of bottled water sales, consumers are still uneducated about the water they are buying, or perhaps more accurately, they are often mistaken about the source of their bottled water. In an attempt to clarify some of the nomenclature regarding bottled waters, following are some definitions of waters based on information on the Web site FineWaters.com, a site devoted entirely to the emerging phenomenon of water connoisseurs.

Artesian Water - This is water that is confined by layers of rock, sand, or clay that provide a natural pressure so that when the source is tapped by being drilled into, the water rises up through the ground without mechanical pumps. Generally, this water tends to be purer than regular ground water as the rock layers and so forth impede the movement of contaminates. However, the Environmental Protection Agency (EPA) says that there is no guarantee that artesian water is any cleaner than regular ground water.

Mineral Water - By U.S. law, these waters contain no less than 250 parts per million of dissolved solids, and those trace minerals must come from the source and not added later. Anything less than 500 parts per million must be labeled "low mineral content" and anything over 1500 parts per million must be labeled "high mineral content." Note that European regulations stipulate that all natural spring waters with dissolved solids of 0 to 500 mg/liter are considered mineral waters with low mineral content.

Spring Water - Similar to mineral water, this comes from a natural underground source but with the difference that it must flow naturally to the surface, where it forms a spring. It may also be obtained by boring a hole close to the surface to tap the spring's source. Though spring water often requires minimal treatment before it is bottled, by law it must retain the same physical properties and composition as the natural spring water from whence it originates.

Distilled Water - In a process similar to how alcoholic spirits are made, water is turned to vapor, or steam. Since minerals and other solids are heavier than the vapor, they remain behind while the water itself is separated off. Other types of purified water include deionized, purified, and reverse osmosis waters, all of which are usually meant for uses in which the presence of trace minerals would clog up the works, such as in an iron or other steam-producing apparatus.

Sparkling Water - This is water that contains bubbles, either naturally or due to the addition of CO2 to approximate the amount it would have had emerging from the source. It differs from soda or seltzer (see below).

Soda, Seltzer, and Tonic Waters - The FDA does not consider these as bottled waters but as "soft drinks" since they typically contain sugar and calories. They are regulated separately and do not appear in bottled water statistics.

Other types of water are defined by the FDA and the EPA. Among them are well water, fluoridated water, and even tap water from a municipal source (bottled water from a municipal source must be clearly labeled unless it has been distilled or otherwise purified), but they are all drinking water, a distinction that the FDA defines as containing no added sweeteners or additives (except for flavorings, extracts, or essences). Drinking water must not contain calories and must be sugar free.
Basically then, not all bottled waters are from a natural spring located in a pristine mountain setting. Many are actually tap water that has been filtered, much the same as if you installed a filter on your own faucet. Nothing is wrong with that as long as consumers understand what they are buying.

Why do people buy and drink bottled water, and why is it growing in popularity? Reports consistently show that such behavior is attributable to perceived healthfulness, that it is somehow better for you, or at least cleaner than tap water. To some extent this is true - in some cities, the water is not that great. Even in cities where the water is rated very high in terms of purity and flavor, people often don't trust the ancient pipes through which the water flows. Also, the convenience factor, especially in the 1.5-liter and smaller sizes, can not be discounted. They are very handy to carry in one's purse, briefcase, gym bag, or car. While it is amusing to see people carrying their water bottles around town as if they were heading out into the Sahara, bottled water makes a much better beverage choice than readily available soft drinks. Plus, they look cool.

The New Wave

Relatively new on the scene is the category of enhanced waters, a realm of bottled waters that are loaded with various healthy ingredients like vitamins, minerals, green tea, and fruit essences. One of the pioneers of the enhanced bottled water industry is a man named J. Darius Bikoff who went in search of a better bottled water during a New York City water shortage in the early 1990s. He was looking for something more healthful than tap water and with more pizzazz than most plain bottled waters. Mr. Bikoff knew something of the business since he began his career in the metals industry as a packing supplier to many of the top beverage companies. He moved into the bottled water business and finally came up with his brand of enhanced waters "so that people feel good about what they drink."

All of his company's waters start with vapor-distilled water (a proprietary technology that results in pure water) to which electrolytes are added (calcium, magnesium, and potassium). His so-called "Smartwater" comprises the basis of the entire line that includes 14 functional formulas in 20-ounce bottles that are enhanced with various vitamins, herbs, roots, fruits, and teas. Other companies have followed suit and have begun to proliferate at the trade shows in much the same way salsas and hot sauces did several years ago. One prevailing theory is that most Americans - due to their increasingly busy lifestyles - simply don't eat enough fruits and vegetables to ingest the proper amount of nutrition.

In other words, Hippolytus' theorem that the best medicine is to be found in the soup pot was falling on deaf ears. So rather than popping vitamin pills, Americans can drink functional water full of healthful nutrients. Most of the functional water brands on the market today target specific results with each SKU, everything from adding more pep into one's step to calming one down. Since these drinks contain little or no calories or sugar, it seems likely that this is a trend that will remain with us for some time.

Water and Food

Demand for specialty bottled waters, functional or otherwise, is growing and doesn't seem likely to relent. According to research done by the Beverage Marketing Corp. and reported by our sister publication Beverage Aisle, they are the beverage market's fastest-growing segment, and though we fall behind the rate at which consumers in Europe and the Middle East drink them, Americans' consumption of bottled water rose from 1.6 gallons per capita in 1976 to 21.2 gallons in 2001. Or as Beverage Aisle editor Bob Phillips wrote recently, "back in 1976, when polyester reigned supreme and Baby Boomers were shake-shake-shakin' their collective booties at their local discos (when they weren't stuck in gas lines), the bottled water industry essentially didn't exist."

Adding to this cultural phenomenon is the influence from the wine culture wherein it becomes necessary to correctly match up your water and food. As more and more restaurants stock up on designer waters and actually offer water menus (no, not just in LA), they have begun to advise their clientele on pairings. "Balance" is the term FineWaters.com uses to categorize bottled waters. They have designed a balance scale to help consumers struggle with the concept. The scale divides waters by the level of bubbles, such as Bold, Classic, and so on down to Still.

For example, the listing for Bold says:

"Waters with a Bold Balance are sparkling waters with large, loud bubbles. These waters typically have a high amount of carbonation, and are represented by such brands as Perrier, Ty Nant, Calistoga. Best temperatures for serving: 62 degrees F / 17 degrees C

They also advocate the proper stemware for serving water, and are careful to point out that their ratings are not meant to imply quality, but rather to determine a "balance of waters" so consumers may enjoy them more fully. If this sounds quite like the wine world, you're right, and to those reading some of the descriptions of waters in their vast listing by country, it almost sounds like those of a wine aficionado. However, for anyone interested in the waters that are available and the makeup of each one (the Web site features a chemical analysis of each water), as well as in developing a vocabulary to discuss and rate the various brands, this unique Web site is required reading. To access the site, visit www.finewaters.com.

Perhaps in a few years specialty merchants will be featuring selections of waters to rival their display of extra-virgin olive oils or artisanal vinegars. As American consumers continue to seek convenient ways to obtain their proper nutrition, or simply to keep themselves hydrated, bottled waters are going to gain in popularity and become a major force in our business. There seems to be no fear of saturating the market since many of the waters offer something different and appeal to customers on many different levels, including package design and reports of who's drinking what. So belly up to the water bar and begin to conduct your own taste analysis of the hundreds of specialty waters that are on tap for big profits.