1. CBE 555 Presentation Modified by Jon Konen Originally by Joel Thomas March 10, 2008

2. What’s on Tap? Market Trends Market Growth & Comparative Markets Financial Analysis Myths dispelled Reason (given) to believe Safety Quality Purity Environmental Impact Fiji case study Source problems Disturbance of Delicate Ecosystems Alternatives Conclusions

3. Market Trends

4. Changes in U.S. Consumption Over 5 Years

5. Financial Typical PriceStandardized Price W.W. Bottled Water Consumption yearly Tap Water$1.52/HCF*$0.000357/L89 billion L/yr$32 million Bottled Water $1.00/Liter$1.00/L89 billion L/yr$89 billion *HCF = Hundred Cubic Feet Difference$88.97 billion Factor2800x more

6. Why do people drink bottled water? Alternative to other beverages Trendy Luxurious Convenience Worries about tap water “Bottled water is purer.” “Bottled water is just safer.” Differently regulated (see regulation slide) Hype, myth, and propaganda Perception of difference “Bottled water tastes better.” Placebo effect Caters to different “tastes” (preferences) Bottled water is better than tap water 3 out of 4 cases, it is tap water

7. Pristine Waters? BrandSource AquafinaPepsi bottling plants DasaniCocaCola bottling plants Yosemite WatersLos Angeles, CA Alaskan FallsWorthington, OH EverestCorpus Christi Texas* *Listed on the bottle Source: Corpus Christi Municipal Water Supply

8. Healthier? Myth: BW is healthier than tap water Truth: BW not regulated to check for parasites and certain other microbes. See regulations slide (next) Myth: Water bottles leak carcinogens into water if you reuse bottles. Truth: Bottled Water (BW) does have an expiration date. Extended exposure to heat and light leeches plasticizers and terephthalates into water. However, infinite shelf life when stored under optimum conditions Enough to kill?

9. Re-using Plastic Bottles Bottles do not leak carcinogens over short time that are harmful Bacteria can grow in the bottles due to trace amounts of water left behind when sitting for several days Cleaning and sanitizing bottles after 1-2 days of use eliminates bacteria makes bottle safe again Nothing from the bottle is cause of sickness, bacteria that grows from water left in the bottle.

10. Safer? - Regulation of water Tap water – EPA Regulated Purity requirements – more limitations than FDA Bottled water – FDA Regulated Standards of identity – Must ensure truth in advertising = declare your source Final product must be at least as pure as source % Total Dissolved Solids (TDS) in mineral water Sparkling water may have no more CO 2 dissolved than source May remove and replace up to limit Limits on Chemical, Microbial, and Radiological Contamination But… No test for Parasites, E. Coli, Cryptosporidium, Giardia No test for Asbestos No test for Organics such as Benzenes

11. Regulation Issues Comprehensive database at www.ewg.org for contaminants in public tap water No database/ information for contaminants in bottled water. Claims of purer water Ohio State study of 57 bottled water samples, 15 had higher bacteria contents than tap water Others were “more pure” than tap water All were deemed safe to drink

12. Tastes Better? - Perspective Penn and Teller (Showtime fame) – Fooled customers at a San Francisco Restaurant with bottles of water filled from the restaurant’s tap Customers thought it tasted better and was more fancy than tap water Taste test using New York City water and 5 name brands, NYC water tied for 3 rd with water from Iceland. Last place – Evian (most expensive), First place – K-mart brand water

13. Limitations of FDA Regulation Loophole: regulates only BW for interstate commerce Reliance on state regulation “The FDA relies on state and local government agencies to approve water sources for safety and sanitary quality” 1 in 5 do not regulate Unequal protection Devotion of half of time of one FDA inspector for every 100 EPA water quality inspectors Low priority for inspection under General Food Safety Program Reliance on voluntary declaration of violations

14. Environmental Impact Solid Waste Effective recycling rate = 34.1 % Recycling problems FDA regulations food surfaces materials = one time use Saturation of market for recycled PET Total waste mass 998 million tons/yr Uses mass amounts of gasoline and oil to ship water across the country and around the world. Poly(Ethylene Terephthalate)

15. Water Resource Impact Water resources Privatization of water Water rights Ethical issue Especially in third world and water-poor countries Source Depletion Damage to delicate ecosystems Coastal land drilling – salt water intrusion damages soil quality Spring water – can drain streams and riverbeds miles away Question of water rights Ground water – common source of well water

16. Carbon Impact Fiji Case Study: One bottle of Fiji Water CO 2 emissions Production in China – 93g (3x mass PET) Transport to Figi – 4g Transport of filled bottles to US – 153g Total Impact: 250g CO 2 /bottle Energy cost of PET production, filling and transportation is equivalent to filling each bottle ¼ full of oil. Price to consumer - $2.50/bottle

17. Alternatives to Bottled Water Consumers say bottled water is convenient Use Nalgene or other reusable bottle and bring with you Containers must be cleaned regularly to prevent bacterial growth. May be cleaned hundreds of times. Public water fountains Purifying with Brita and other filters if worried about quality

18. Conclusions Billion Dollar Industry Charging exorbitant prices Marketing and hype Using existing technology and equipment Often already paid for with tax dollars Generating culture of distrust, disposability and waste Alternatives: Nalgenes and other washable safe containers

19. Questions? When will the growth of bottled water slow down? With increasing use in developing countries (India, China), will cost of water continue to rise? Water quality is heavily regulated in the US, should municipalities be selling their water for profit versus large corporations paying fractions of cents to sell for 2800 X profit? How long until FDA imposes stringent standards on bottled water?

20. Sources http://www.epa.gov/ http://www.cfsan.fda.gov/~dms/botwatr.html (FDA/CFSAN website) http://www.nrdc.org/water/drinking/ National Resources Defense Council http://www.bottledwater.org International Bottled Water Association http://www.epa.gov/msw/facts-text.htm http://www.epa.gov/safewater/faq/faq.html http://www.pubmedcentral.nih.gov/articlerender.fcgi?artid=1693287 http://en.wikipedia.org/wiki/Bottled_water http://www.jewishworldreview.com/0505/stossel051805.php3 www.bottledwaterweb.com http://www.cnn.com/2007/HEALTH/07/27/pepsico.aquafina.reut/