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Presentation on sustainable operations, supply chain management, green business, marketing and insights from the bottled water industry. Learn more about Sustainable Business & Design at: http://sustainablelifemedia.com
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The Bottled Water Industry and Sustainable Operations
Steve EmeryEARTH2O Natural Spring Water
Understand the category you compete in
• Consumers driven by price first
• Retail consolidation to national brands limited local options
• Convenience & Gas category distribution purchased
• National brands purchasing market share – DS Waters
• Distribution cost increases
• Disposable income declining
Factors Impacting Beverage DistributionUnderstand Market Dynamics
Michael Porter Competitive Advantage Model• Cost Leadership (low cost producer) – Private Label, Nestle
• Differentiation – all other bottled water producers Believe theirsis best based on content of water
• Focus – Coke (Dasani) Pepsi (Aquafina) outstanding distributionexecution
Be careful of competitor creep Green Washing
Green Washing in the bottled water industry• “Carbon Negative” bottled water imported into USA use carbon
offsets• “Eco” bottle – borehole pumping?• PLA Bottle – cradle to cradle or grave?• Reverse Osmosis waters generating 3 to 9 gallons (New state of
the art 1 waste for 1 produced) of waste to produce 1 processedgallon: “Eco Challenge – bottle is 100% recyclable” – “our bottleis 100% recyclable change the bottle, keep the taste, help theearth”
• X Waters “Go Green” campaign urges consumers to recycle
Porter Value Chain Frameworkreduce waste and communicateWaste = Expense & Emissions
Inbound Logistics
Elimination of waste in packagingFirst water company in US to eliminate Cardboard in PET
Packaging
New Solar Array
Additional Operations
• Recycling of inbound waste material
• Affluent pond - evaporation and irrigation
• Efficient and passive lighting
• Facility heating
• LEAN Manufacturing
Outbound Logistics
Conclusion• Get a clear understanding of the segment in which you compete
and differentiate you brand message
• Green Washing will cloud the sustainability effort, consumerconfidence
• Evaluation of Value Chain will help to determine sustainability ofa product
• The Value Chain with the least waste will be the most profitableand competitive
• True investment in sustainable efforts will yield higher returns