Packaged beverage dilemma: McLane is aggressively working to offset increased costs from growing...

THE CONSUMPTION OF BOTTLED water is steadily increasing and it benefits convenience retailers to meet that demand. Not a bad problem to have as bottled water often retails between $1.19 and $1.39, and has a high gross margin. But because packaged beverage consumption is on the rise, the issue of moving these heavy, bulky packages is becoming a focal point for retailer, supplier and wholesaler participants in the supply chain.

"The bottled water segment is growing dramatically," said Roger Grogman, vice president of marketing for McLane Co. Inc. "Handling and transporti