Clear choice

With consumers ever more health conscious and choice all-important do your pub a favour and offer a range of bottled waters, says Ben McFarland.

It may be clear, tasteless and available on tap but the British consumer is buying more bottled water than ever before. According to the UK Bottled Water Report from water producer Well Well Well, the total bottled water market volume increased by 18 per cent last year - a rise of 310 million litres, not far short of the entire UK market in 1989.

Last year also saw UK consumption pass the 2,000-million litre mark for the first time. Although there were two mitigating factors for this - warnings to stock up in case of supply disruption due to the terrorist threat and a prolonged, hot summer - the thirst for bottled water is showing no signs of abating. By 2007 UK consumers will be drinking 1,446 million litres of bottled water annually - an increase of 46 per cent on 2002 levels. Spending is forecast to grow by 41 per cent to £910m in 2007.

"Consumers understand hydration more than ever before and there's a movement towards well-being that bottled water fits snugly into," says Gary Roethenbaugh, research director at specialist drinks consultant Zenith International. "And it's fashionable."

Compared to other European countries such as France and Italy, however, Britain lags behind in its water consumption so industry observers believe there is plenty of room for growth. An increasing number of brands are now available and although the top five companies claim more than half of overall market volume, the UK has a wide range of operators carving out their own niches. But Gary suggests that water has a long way to go to create the kind of brand allegiance seen in the beer or cola category. He says: "Although there's a small number who will only drink a certain brand a lot of it has to do with availability." Brands like Evian and TyNant have done much to promote their bottles as iconic in an effort to create a brand following but for those buying for what's in, rather than on, the bottle, natural mineral waters market themselves as the most healthy of the three different types of waters available in the UK.

Natural Mineral Water Information Service (NMWIS) research found that eight out of 10 people prefer to consume foods and drinks that are as natural as possible. But the research showed there is still confusion when it comes to distinguishing between natural mineral water, spring water and processed water. Publicans need to be able to provide natural mineral water if asked specifically for it.

The threat from processed water​

Natural mineral water producers are becoming protective as they are under threat from processed waters. The processed water market continues to grow its share at a time when the spring water sector has been stagnant for the last two years. The need for convenient rehydration as opposed to a need for a certain number of minerals, magnesium and calcium is the main driver behind this and it is into this market that Coca-Cola's Dasani was launched, albeit with disastrous and well-publicised effect.

Although the water's unromantic source in Sidcup could not rival the picturesque springs used by Badoit or Evian, the soft drinks giant recognised it could steal a march on its natural mineral water rivals in terms of both cost and distribution. Producing natural mineral water is expensive, with springs often located in remote, mountainous regions, but processed waters cost a lot less and the likes of Coca-Cola have well-established distribution networks to sell the water through, making them a lot cheaper.

But can commercial advantages eclipse the health benefits of natural mineral waters and spring waters in the consumer's mind? Gary says: "As consumers we are similar to Americans rather than Europeans so I think this category has room for growth."

The company behind Sebor Absinth recently launched a similar product to Dasani called Ontap - essentially glorified tap water in bottles. Jeremy Hill, managing director, says the idea is to offer a low-price alternative to mineral waters.

Ontap is bottles filled with filtered tap water at the bottling plant. Jeremy says: "I firmly believe that tap water in the UK is as good as bottled mineral water. If there is a choice and a saving to be made on water then I think the consumer deserves it."

The Drinking Water Inspectorate (DWI) insists that tap water can deliver the same health benefits of mineral water and spring water. It says: "The only difference between tap and bottled water is the cost. High quality water which contains adequate amounts of minerals such as calcium and magnesium is delivered to the consumer's tap at a 1/1,000th of the cost of bottled water."

The NMWIS recommends that publicans offer a range of waters just as they would offer a range of soft drinks, beers or wines. Has bottled water a role to play in the pub? Yes, say the statistics. With food playing an ever-increasing role in the on-trade, sales of water in pubs have surged by 19 per cent and the good news for licensees is that consumers are willing to pay a premium for water.

According to AC Nielsen, the on-trade provided 38 per cent of total market value from just seven per cent of volume and the average consumer price topped £3.30 per litre - 10 times the equivalent cost in a supermarket thank you very much. Even with a slice of lemon and some ice, that's not a bad mark-up!

Water types​

The bottled water market is divided into three categories:

• Natural mineral water​
  
  Natural mineral waters are regulated by the EU. They must come from a specified and protected underground source. Before being bottled and sold they must undergo two years of rigorous testing to prove constant composition and gain recognition through the local authority. The only thing added is carbon dioxide for sparkle.

Spring water​

In the UK spring water must originate underground, be bottled at source and be microbiologically safe without treatment. It is not required to be consistent in composition, though some may be. In the UK spring waters can legally be "natural" or "processed" waters but most of continental Europe states that spring water must, by law, be untreated.

Processed water​

There are several processed waters on the market but, ironically, the most famous is (or was) the ill-fated Dasani from Coca-Cola swiftly followed by "Peckham Spring" - the bottled water produced by Del Boy and Rodney in Only Fools and Horses! These tend to be produced using tap water that has been purified and enhanced with mineral or other additives.