-By David Lotti

The United States leads the world in bottled water sales. Sales of bottled water have more than doubled in the United States since 2000. That's a lot of water. With more than 900 bottled water brands now on the U.S. market — including such specialties as flavored pet waters — that's a lot of potential sales opportunities for retailers.

Even in the current economic climate, people are buying bottled water. According to recent SPINS data, the combined channel sales for the natural and naturally positioned water category through June of this year show a decline of 6.8 percent in dollar sales vs. the same period a year ago. For those still buying bottled water, they're even more concerned that they're getting what they pay for.

What About Tap Water?

Many people credit the emergence of the mass bottled water market to a study done in the '70s by the Environmental Protection Agency (EPA). Originally set up to define guidelines for the newly created Safe Drinking Water Act, the study identified a number of chemicals and minerals in municipal water supplies that were unhealthy. The study results stirred up near-panic in some parts of the country, leading to a sudden increased demand for bottled water.

But the ongoing question remains: Is it really better? Concerns about the health and safety of tap water have only increased since the initial EPA report. A recent Associated Press investigation revealed that a vast array of pharmaceuticals has been found in the drinking supplies of millions of Americans. One example was the discovery of more than 56 pharmaceuticals or drug byproducts in a major city's watersheds.

Furthermore, many bottled water brands undergo no filtration during the bottling process and provide essentially the same quality of water that comes from the tap. Responsible bottled water producers, however, tackle purity issues in a variety of ways. Some natural premium waters are bottled from sources in remote places where contamination is unlikely. According to the Alexandria, Va.-based International Bottled Water Association, for bottled water that originates in the municipal water supply, which accounts for 25 percent of bottled waters, a multi-barrier approach is often used for purification. This includes reverse osmosis, micron filtration, distillation, ozonation and the application of ultraviolet light during the process.

In addition to mineral and spring waters, as well as purified premium waters, several other categories have emerged as the industry has matured. So-called functional water — which includes sports, flavored and enhanced waters — is another fast-growing category that has cut into the soft drink market.

"At one end, you have sports drinks, which often contain pretty high amounts of sugar, though less than their soft drink and soda rivals," says Richard Berry, CEO of Huntington Beach, Calif.-based AquaGenus, a supplier of high-performance sports water. "Sports drinks can also contain artificial additives and colorings that have raised health concerns."

At the other end of the functional water spectrum are highly engineered waters designed for optimal health and hydration, with no artificial additives. Trace minerals and electrolytes, for example, can be infused into water, increasing the body's ability to use vitamins and other nutrients.

"But only ionized trace minerals and electrolytes can be readily absorbed into cells and assimilated by the body,” notes Berry. "The acid/alkaline balance of water has also emerged as an important factor, with some waters carrying a slightly alkaline pH to help combat the acidic and toxic cellular environment created by our fast-food diets and stressful lifestyles. Micro-structuring is another way to enhance the hydrating ability of water, by restructuring large water molecule clusters into smaller clusters that can be more readily absorbed by cells."

It's not always easy to figure out which water offers which filtration, where it's from, and what's actually been done to the product. "With nearly 1,000 brands on the market, it can be tough to sort through all the information," admits Troy Benscoter, SVP of category management at St. Augustine, Fla.-based Tree of Life, Inc., the leading distributor of natural, organic, specialty, ethnic and gourmet food products in the United States. "But it pays to be aware of the source and contents of the bottled water you carry, the process involved in purifying it and ways in which the water has been enhanced. Being able to educate your customers about what they're buying can make a significant difference in your sales."


Full Glass

Americans drink water more than any beverage other than carbonated soft drinks. According to the Alexandria, Va.-based International Bottled Water Association, women and younger consumers drink more bottled water than men, with women more likely to drink the recommended eight glasses of water per day.

For years, the very idea that people would pay money for individual bottles of water was considered ludicrous unless you were in an exotic location trying to keep from getting sick. Not anymore. Thanks to a variety of factors — convenience; a more active, more mobile society; concerns about the health of tap water; and some clever marketing — the bottled water industry is still booming.

With 41 years in the food industry, David Lotti, Tree of Life category manager - beverages, is currently responsible for all of the company's U.S. beverage selection and beverage category vendor relations.