2020 IBWA Progress Report

PROGRESS REPORT I N T E R N AT I O N A L B OT T L E D WAT E R AS S O C I AT I O N

2021 IBWA BOARD OF DIRECTORS

2021 IBWA EXECUTIVE COMMITTEE

CHAIR Tara Carraro Nestlé Waters North America, Inc. Stamford, Connecticut

CHAIR Tara Carraro

VICE CHAIRMAN C.R. Hall Hall’s Culligan Water Wichita, Kansas TREASURER Brian Hess Niagara Bottling, LLC Diamond Bar, California IMMEDIATE PAST CHAIRMAN Robert Smith Grand Springs Distribution Alton, Virginia PRESIDENT AND CEO Joe Doss International Bottled Water Association Alexandria, Virginia BOARD MEMBERS Shayron Barnes-Selby Primo Water North America Atlanta, Georgia Joe Bell Aqua Filter Fresh, Inc. Pittsburgh, Pennsylvania

Philippe Caradec Danone Waters of America White Plains, New York Douglas Hidding Blackhawk Molding Company, Inc. Addison, Illinois Dan Kelly Polymer Solutions International, Inc. Medford, New Jersey Kari Mondt Allied Purchasing Mason City, Iowa Greg Nemec Premium Waters, Inc. Minneapolis, Minnesota Jillian Olsen Cherry Ridge Consulting Wind Gap, Pennsylvania David Redick Steelhead, Inc. San Antonio, Texas Lynn Wachtmann Maumee Valley Bottlers, Inc. Napoleon, Ohio Bill Young Absopure Water Company, Inc. Plymouth, Michigan

Nestlé Waters North America, Inc. Stamford, Connecticut Joe Bell Aqua Filter Fresh, Inc. Pittsburgh, Pennsylvania Philippe Caradec Danone Waters of America White Plains, New York Brian Hess Niagara Bottling, LLC Diamond Bar, California C.R. Hall Hall’s Culligan Water Wichita, Kansas Henry R. Hidell Hidell International Hingham, Massachusetts Dan Kelly Polymer Solutions International, Inc. Medford, New Jersey

Dave Muscato Primo Water North America Atlanta, Georgia Robert Smith Grand Springs Distribution Alton, Virginia Lynn Wachtmann Maumee Valley Bottlers, Inc. Napoleon, Ohio Bill Young Absopure Water Company, Inc. Plymouth, Michigan

A LETTER FROM THE PRESIDENT The 2020 IBWA Progress Report contains summaries of some of the association’s most notable accomplishments during the past year. Thanks to a great team of members and staff, we have been successful in maintaining a favorable business, regulatory, and public affairs climate for the bottled water industry, as well as protecting and advancing the interests of all IBWA member companies.

Despite the unprecedented challenges caused by the COVID-19 pandemic, the bottled water industry continued to grow in 2020. For the fifth consecutive year, bottled water is the No.1 packaged beverage (by volume) in the United States.

According to the Beverage Marketing Corporation (BMC), bottled water consumption increased 5 percent to 15.1 billion gallons.

Retail sales grew 4.9 percent to $36.3 billion, and per capita consumption of bottled water increased 4.5 percent, as the average American is now drinking 45.3 gallons per year.

These figures demonstrate that bottled water sales and consumption continue to grow despite the efforts by industry critics who try to discourage consumers otherwise. Bottled water remains No.1 for many simple reasons: it tastes great, and it’s safe, healthy, and convenient.

While bottled water maintained its popularity in 2020, there were some challenges for the industry – none more notable than the COVID-19 pandemic. Like most other industries, bottled water was not immune to the impacts of this public health crisis, which is the world’s largest in over a century.

When the pandemic started, IBWA and the bottled water industry went into action and adjusted to the unprecedented situation we faced. Our primary goal was to make sure that our members had the information they needed to conduct business during this public health crisis. IBWA made sure that bottled water was considered as part of the nationwide critical infrastructure by the Department of Homeland Security, regularly sent members information about the latest FDA, CDC, and OSHA guidance documents and requirements, worked to increase truck weight limits at the state and federal levels, kept members informed about new federal tax laws that would help companies of all sizes, created a COVID-19 webpage, and prepared a COVID-19 handbook for members.

COVID-19 will still be an issue heading into 2021, and IBWA will continue to provide members with the resources they need to successfully operate their business.

In our long-standing efforts to communicate the facts about bottled water to the public, IBWA successfully conducted two social media campaigns for

our “Put It In The Bin” recycling initiative. #BottledWaterBecause reassured bottled water supporters that it’s OK to love bottled water. And with consumers likely having more recycled plastics at home due to the COVID-19 pandemic, the #YouCan #WeWill campaign used simple, focused tips and educational facts to help inspire consumers to recycle. With the help of our members and partners, such as Keep America Beautiful and the National Association of PET Container Resources (NAPCOR), both campaigns were very engaging and successful.

IBWA was engaged on many legislative issues that would benefit the bottled water industry, and we also worked very hard to ensure no harmful bills were enacted. Recycled content mandate legislation, bottled water sales ban proposals, groundwater resource management, efforts to tax bottled water, and Extended Producer Responsibility (EPR) were just some of the issues that IBWA addressed in 2020.

IBWA is continuing to monitor and take action on PFAS regulation issues. To help ensure consumer safety and confidence, IBWA has established the following standards of quality (SOQs) for PFAS substances in bottled water produced by IBWA bottler members: 5 parts per trillion (ppt) for a detection of one PFAS compound, and 10 ppt for detection of two or more PFAS compounds.

IBWA has been actively involved with the effort to revise the Dietary Guidelines for

JOE DOSS

Americans (DGAs). IBWA urged both the U.S. Department of Agriculture (USDA) and the Department of Health and Human Services (HHS) to continue to recognize the importance of water in a healthy diet. We also continued to ask federal officials to add water to the MyPlate nutrition guide graphic.

The continued hard work by all IBWA members and IBWA staff is the primary reason for the association’s success in 2020, and it is why bottled water has maintained its status as America’s favorite packaged drink. But we can’t rest on our laurels. We must continue working together to help ensure that consumers, the media, and government officials have the facts about bottled water. That will help bottled water to retain its position as the No.1 beverage in the United States.

Joe Doss IBWA President and CEO IBWA 2020 PROGRESS REPORT

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BOTTLED WATER CONTINUES AS THE NATION’S #1 BEVERAGE

2020[P] VOLUME SHARE OF STOMACH

BY U.S. BEVERAGE SEGMENT

IBWA members and the entire bottled water industry Tap/Others 11.2% continue to benefit from consumers’ increased focus Value-Added Water on healthy hydration and lifestyle choices. According 1.3% Energy Drinks to Beverage Marketing Corporation (BMC), bottled 1.3% Wine & Spirits 2.3% water continues to be the No.1 beverage in the Sports Drinks United States (by volume). And the gap between 2.5% Fruit bottled water and carbonated soft drinks (CSDs) Beverages and other sugary beverages continues to widen.

4.6% Tea 5.5%

The preliminary key figures for bottled water in 2020 are as follows: • Consumption: 15.1 billion gallons – a 5% increase • Retail Sales: $36.3 billion dollars – a 4.9% increase • Per capita consumption: 45.3 gallons – a 4.5% increase The volume for bottled water packaged in polyethylene terephthalate (PET) plastic grew by 4.76 percent, according to BMC, and is now at 10.6 billion gallons. Home and office delivery (HOD) volume, however, experienced a decrease of 3.41 percent and is now at 1.4 billion gallons. The decline can likely be attributed to the many office closures that occurred during the COVID-19 pandemic.

The volume share of the various types of bottled water is as follows: • PET – 70.1% • HOD – 9.1% • 1 and 2.5 gallon – 8.1% • Vended, domestic sparkling, and imported bottled water make up the remaining – 12.7 % 2

Bottled Water 23.7%

Carbonated Soft Drinks 18.4%

Milk 8.2% Beer 10.0%

Coffee 11.0%

P = preliminary Source: Beverage Marketing Corporation

Battling Anti-Bottled Water Laws and Critics.

There were continued attempts by anti-bottled water groups in 2020 to try to convince consumers and lawmakers that bottled water shouldn’t be sold.

It’s an issue that is far from new but is becoming a greater concern to our industry. IBWA has noticed an increase in the number of local, state, and federal anti-bottled water proposals, which includes burdensome water use taxes, unreasonable recycled content requirements, efforts to restrict the production or ban the sale of bottled water, and false claims about plastic container safety.

As a result of IBWA’s efforts, these groups have not been very successful at this stage. But they are

INTERNATIONAL BOTTLED WATER ASSOCIATION

becoming more active and effective in spreading false and misleading information about bottled water, which can potentially have a negative influence on the next generation of potential bottled water consumers.

These anti-bottled water actions can impact all bottlers – big and small companies, as well as both HOD and small pack products.

It is therefore very important for IBWA to continue to both defend and proactively provide the facts about bottled water. IBWA has stepped up our activities to forcefully address these matters.

Our efforts involve a coordinated approach that includes IBWA’s government relations, communications, technical, and environmental departments.

These actions push back against bottled water critics and proactively provide the facts to the media, government officials, consumers, and other relevant audiences.

Navigating the COVID-19 Pandemic. The bottled water industry was impacted, like many other industries, by the COVID-19 pandemic.

But bottled water companies quickly adjusted to meet the increased demand for our products. And IBWA provided members with the resources they needed to continue to safely operate their businesses. This included: • Sending regular email bulletins to keep members informed about the latest U.S. Food and Drug Administration (FDA), U.S. Centers for Disease Control and Prevention (CDC), and Occupational Safety and Health Administration (OSHA) guidance and requirements.

POLYMER SOLUTIONS INTERNATIONAL

2020 & COVID-19

PRIMO WATER NORTH AMERICA

IBWA member companies helped during the pandemic by providing those in need with bottled water, face shields, face masks, and other contributions.

IBWA 2020 PROGRESS REPORT

AQUA FILTER FRESH

NIAGARA BOTTLING

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Show and Tell Your Representatives About Your Business

Our new remote way of doing business due to the COVID-19 pandemic has provided more opportunities for IBWA members to participate in legislative meetings, hearings, and events. While it may lack the personal touch, it allows members easier access to more legislators than we ordinarily could see with in-person visits. If you are interested in hosting a virtual tour of your plant or would like to meet with your federal, state, or local policymakers, please contact IBWA Vice President of Government Relations Cory Martin (cmartin@bottledwater.org).

• Developing a central hub of COVID-19 information on IBWA’s website for members and the public.

• Preparing a members-only COVID-19 Handbook that includes guidance on maintaining their operations during the pandemic.

At the outset of the pandemic, demand for bottled water increased significantly. To meet this surge in demand, IBWA member companies worked tirelessly to ensure bottled water products were available to their home and office and retail customers. This included increasing bottling capacity, acquiring extra packaging and materials, working with retailers to determine demand, and hiring additional drivers and bottling plant workers. IBWA members also donated bottled water and made other contributions to several charitable community organizations, such as police departments and other first responders, hospitals, food banks, the United Way, and the Ronald McDonald House.

ADVOCATING FOR INDUSTRY SUCCESS

The state legislatures and the federal government have focused much of their attention on COVID-related matters, but they have also continued to consider other issues that impact the bottled water industry.

FEDERAL ISSUES

In 2020, much of the federal government's attention was geared toward matters related to COVID-19. But there were many other issues federal officials considered during the year that would impact the bottled water industry.

National Park Service Bottled Water Sales Ban. A policy was adopted by the National Park Service (NPS) in 2011 that allowed parks to ban the sale of bottled water in plastic containers. IBWA successfully had that policy repealed, and bottled water re-appeared in several parks that previously banned it.

At the federal, state, and local levels, IBWA worked on several issues that would benefit the bottled water industry and fought others that could potentially harm it.

Following the 2020 elections, we expect continued anti-bottled water activity at the state and federal level. Regardless of what party is in power, the key to IBWA’s government relations success can be summed up in two words: member involvement. It is very important for members to meet with their

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elected officials, testify at hearings, conduct plant tours, and participate in campaigns and elections.

All of these can now be done virtually as a result of the pandemic.

INTERNATIONAL BOTTLED WATER ASSOCIATION

On February 27, 2020, IBWA President and CEO Joe Doss testified in opposition of federal legislation that would allow national parks to ban the sale of bottled water.

However, in February 2020, the House Subcommittee on National Parks held a hearing on legislation that would ban the sale of bottled water.

IBWA testified in opposition to this bill, citing our ongoing concerns with its focus on banning the healthiest beverage choice but still allowing carbonated soft drinks and other sugary beverages to be sold.

No action was taken on this measure, but it will likely continue to reemerge in the coming years.

A sales ban could also be implemented through another NPS policy memorandum, rather than legislation, under the new administration. Banning the sale of bottled water in national parks would not significantly impact the industry’s sales figures.

However, it would set a very bad precedent and would be used by bottled water critics to support their efforts to ban the sale of our products in cities, colleges, zoos, and other public places.

IBWA will continue to strongly oppose these measures.

Spring Water Extraction Investigation. In early 2020, the House Subcommittee on the Environment launched an investigation into bottled water industry practices. This effort primarily focused on the use of spring water for bottling purposes. However, the subcommittee was also concerned about microplastics in bottled water and the industry’s contribution to pollution and climate change. IBWA was prepared to engage on this investigation but it eventually stalled in the early spring due to the COVID-19 pandemic. We expect that similar efforts will be made next year in the new Congress.

6-Cent Per Gallon Tax on Groundwater. In tandem with the spring water extraction investigation, a bill was introduced in the House of Representatives that would impose a 6-cent per gallon tax on groundwater extracted to make bottled water. IBWA communicated our concerns with this legislation to several key members of Congress. In particular, we made sure that they knew about the very small environmental impact of bottled water products, and the disastrous impact that a 6-cent per gallon tax would have on the industry. This legislation only had one other cosponsor and it also stalled due to COVID-19. However, we expect that it will be reintroduced in the next Congress.

Energy Star 3.0 Water Cooler Specifications. IBWA has been working with the U.S. Environmental Protection Agency (EPA) regarding its effort to issue new Energy Star 3.0 specifications for water coolers. A working group comprised of IBWA members and staff was formed to address the matter.

The working group believes that the draft specification is too stringent and would interfere with providing coolers that meet consumer expectations.

Therefore, we have been working to help EPA gain a better understanding of the industry and how these specifications impact your businesses.

IBWA held several calls with EPA staff and submitted formal comments to support our position. The final draft of Energy Star 3.0 for water coolers was scheduled to be released at some point in December (after this Progress Report went to press), and we hope that the final specifications will reflect industry input.

Extended Producer Responsibility. IBWA has held discussions with several outside groups this year on the Extended Producer Responsibility (EPR) issue.

The matter has received a lot of attention lately, and we expect policymakers to introduce EPR proposals next year at both the state and federal levels. Typically, EPR programs require manufacturers to be responsible for the life cycle of their products. This means they are responsible for the collection and recycling of their packaging. These proposals would all involve a cost to bottled water producers. And they will also require a change in how we have done business in the past.

There are several large business organizations taking the lead on the EPR issue at both the state and federal level, however, IBWA will engage – where possible and appropriate – to ensure that our industry has a voice in the process.

Tariffs on Water Coolers. The industry received welcome news in late 2019 that a 25 percent tariff would not be imposed on bottled water coolers made in China in 2020. This was the direct result of several IBWA members petitioning the U.S. Trade Representative for an exclusion from the tariffs.

Imposing tariffs on Chinese water coolers, which are used by many IBWA members, would significantly increase the cost of doing business and have a negative impact on HOD bottled water sales.

The current tariff exemption will expire at the end of 2020, and IBWA again submitted comments in support of extending it.

IBWA 2020 PROGRESS REPORT

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2020 PAC Accomplishments IBWA’s Political Action Committee (PAC) is a vital tool to help us educate members of Congress and build champions for our industry. Contributions to the PAC make it possible for IBWA to support political candidates who support the bottled water industry.

Due to the generosity of IBWA members, we were able to support many key members of Congress in their successful reelection efforts in 2020.

If you are not receiving information about the IBWA PAC, it’s because we do not have an Authorization to Solicit form for your company; therefore, we can’t contact you about PAC issues. Submitting an authorization to solicit form does not obligate you to contribute to the IBWA PAC. It only gives IBWA permission to keep you informed about PAC activities and events.

In addition to making a personal contribution to the IBWA PAC, members can consider identifying their company as an IBWA PAC Corporate Sponsor. Donating as a corporate sponsor helps IBWA cover the costs associated with the PAC, such as fundraising events.

For more information about the IBWA PAC, please contact IBWA Vice President of Government Relations Cory Martin (cmartin@bottledwater.org) or IBWA Director of Government Relations JP Toner (jtoner@bottledwater.org).

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STATE ISSUES

Despite the many COVID-19 shutdowns, it was still a very busy year in the state legislatures and in various state government agencies. More than 1,000 pieces of legislation that had potential impact on the industry were introduced. And nearly every state addressed issues important to bottled water. In addition to state legislative activity, there were more than 400 proposed regulations considered in the states that could have impacted bottled water.

Recycled Content Bills. State legislators and regulators are seeking ways to handle the growing concerns over plastic pollution and single-serve products, and to promote policies that reduce plastic use and waste.

That has resulted in more EPR and mandatory recycled content bills being introduced. While consumers came to better appreciate the safety benefits of single-serve plastic containers during the pandemic, there remains a strong push to limit plastic waste.

For most of 2020, IBWA worked on mandatory recycled content bills in California and Washington state. This legislation applied to all plastic beverage containers, including bottled water. IBWA supports mandatory content requirements that are reasonable and attainable. However, these two measures, as introduced, sought to establish unattainable mandates of 100 percent recycled content material in all bottles and had unreasonable compliance dates. In addition to seeking changes in the recycled content rates and effective dates, IBWA, together with our beverage industry allies, was able to make positive changes in the penalty amounts, safeguards, reporting requirements, and local preemption provisions of these two bills.

INTERNATIONAL BOTTLED WATER ASSOCIATION

California. The final version of the California bill requires an initial 15 percent recycled content use by 2022, 25 percent by 2025, and 50 percent by 2030.

The bill was signed into law by Governor Gavin Newsom (D) in September, which made California the first state to impose a recycled content mandate for plastic beverage containers.

Washington State. The mandatory recycled content bill approved by the Washington legislature was similar to the California legislation. However, it was one of many bills vetoed by Governor Jay Inslee (D) due to COVID-19. Washington, like many other states, is facing a severe budget shortfall as a result of the pandemic, and the governor didn’t want to approve any programs that had new funding requirements.

We expect Washington to consider recycled content legislation again in 2021.

The new bill may also include additional measures recommended by an interim government study on plastic waste management. The study recommendations include a recycled content mandate, a bottle deposit program, and EPR for all types of packaging.

IBWA submitted comments on the recommendations and worked with in-state organizations to communicate our position to lawmakers prior to the start of the 2021 session.

Groundwater Extraction Taxes and Moratoriums.

In Florida, IBWA members pushed back against several proposals that would have placed burdensome fees/ taxes on water used for bottling. The proposed fee for groundwater extractions was 12.5 cents per gallon, and another bill would have placed a 5 cents per gallon fee on water from a groundwater or public water system source. There was also an attempt to

#YOUCAN #WEWILL IBWA's fall 2020 social media campaign focused on posting messages that encourage consumers to recycle their plastic beverage containers, while also educating them about the bottled water industry's environmental sustainability efforts.

Learn more at www.PutItInTheBin.org.

IBWA 2020 PROGRESS REPORT

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I N T E R N AT I O N A L B O T T L E D WAT E R A S S O C I AT I O N

2020

THE AVERAGE AMERICAN CONSUMED 45.3 GALLONS OF BOTTLED WATER.

45.3 GALLONS

RETAIL SALES INCREASED BY 4.9%.

BILLION DOLLARS

36.3

BOTTLED WATER SALES MAKE UP THE LARGEST SEGMENT OF THE U.S. BEVERAGE MARKET AT 23.7%, WITH MOST OF ITS GAINS COMING FROM SOFT DRINKS AND FRUIT BEVERAGES.

23.7%

BOTTLERS PRODUCED MORE THAN 15 BILLION GALLONS OF BOTTLED WATER IN 2020, A 5% INCREASE OVER THE PREVIOUS YEAR.

15.1 BILLION GALLONS

BOTTLED WATER IS THE FAVORITE PACKAGED BEVERAGE IN THE UNITED STATES—AND HAS BEEN SINCE 2016.

AGAIN

#1

BY THE NUMBERS

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1.1 MILLION+

VIRTUAL

IBWA REVIEWED AND MONITORED MORE THAN 1,000 PIECES OF LEGISLATION AND MORE THAN 400 PROPOSED REGULATIONS.

1,400+

THE 2020 IBWA ANNUAL BUSINESS CONFERENCE WAS HELD VIRTUALLY, AND BOTTLER PARTICIPATION WAS UP 35%.

1ST VIRTUAL CONFERENCE

IBWA’S MOST RECENT HARRIS POLL SHOWS THAT MOST AMERICANS WANT BOTTLED WATER AVAILABLE WHERE OTHER DRINKS ARE SOLD.

91%

IBWA’S SUMMER SOCIAL MEDIA CAMPAIGN #BOTTLEDWATERBECAUSE REACHED MORE THAN 1 MILLION PEOPLE.

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place a two-year moratorium on building new bottling facilities.

While all these bills were defeated, the legislature did approve a study on the bottled water industry. This study will focus on water use, sales and marketing, and environmental impacts. IBWA is working with the state on this effort and providing officials with information that demonstrates the bottled water industry’s very small environmental impact.

Other Important State Issues. In addition to environmental matters, IBWA also worked on several other important state issues. This included efforts to ban or restrict the sale of bottled water products in plastic containers, ban the sale of plastic bottles that contain bisphenol A (BPA), require bottled water labels to include warnings or statements about various substances, establish unreasonable testing requirements and standards for PFAS substances, and revise existing bottle deposit programs.

PROVIDING THE FACTS ABOUT BOTTLED WATER Activists and bottled water critics continue to make false and misleading statements about our products.

To counter those efforts, IBWA aggressively defends and proactively communicates the facts about bottled water to a variety of audiences: media, consumers, legislators, regulators, social influencers, and other opinion leaders. We use a variety of methods to get our messages across, including social media toolkits, traditional newspapers and magazines, news websites, blogs, Facebook, Twitter, Instagram, YouTube, Pinterest, and podcasts.

Having an online presence is vital for effective communication, brand identity, and media awareness.

Two strong websites anchor IBWA’s online activities: bottledwater.org and bottledwatermatters.com. Our “Put It In The Bin” website promotes the value of recycling. These sites allow visitors to quickly get up-to-date facts, economic data, and other useful information about bottled water. Nearly 20,000 people visit IBWA’s main website each month.

We track data and statistics about how people use our website so we can refine topics based on user demand.

This helps us stay at the top of search engine results, which is important in ensuring that IBWA is the first source for bottled water information on the internet.

IBWA continuously monitors news outlets, blogs, and social media for articles and posts that mention bottled water. We also actively engage in online conversations with both our fans and those that challenge our point of view. IBWA submits letters to traditional and online news outlets requesting corrections on inaccurate information. We also request inclusion when stories appear without the industry’s perspective.

The ability to engage with the media, supporters and critics, and consumers in real-time is vital and can directly impact the perception of our industry and our products. IBWA continues to be seen as the leading media resource for bottled water information.

Social Media Campaigns. Early in 2020, we noticed that our adversaries had stepped up their efforts to convince consumers not to drink bottled water. To counter those actions, IBWA created a social media campaign aimed at bottled water drinkers that reinforced why bottled water is a smart beverage choice.

10 INTERNATIONAL BOTTLED WATER ASSOCIATION

#BottledWaterBecause used images of people enjoying bottled water, together with messaging that focused on why this is a healthy beverage choice. This proactive campaign ran for nine weeks on IBWA’s Facebook, Instagram, and Twitter pages, and it reached more than 1 million people. IBWA member participation helped amplify these campaign messages.

We also created a series of entertaining videos aimed at motivating younger people to help improve recycling rates. Recycling Rex, a dinosaur reporter, interviews college students about their views and recycling habits. This funny, five-video series covers recycling tips such as: pack it out, the afterlife of a water bottle, and how to be intentional about recycling. Links to these videos are on IBWA’s YouTube channel: www.youtube.com/user/ BottledWaterMatters.

IBWA’S SOCIAL MEDIA PRESENCE AND REACH

WEB TRAFFIC UNIQUE VISITORS BOTTLEDWATER.ORG

Bottled Water Matters 8,120 likes

BOTTLEDWATERMATTERS.ORG

Bottled Water Matters 804 followers

Hydration. Health.

Happiness. 207 likes @BottledWaterOrg 1,884 followers

Bottled Water Matters 4,400 monthly viewers

@BottledH2OBabe 3,179 followers

219,725 VISITORS

@BWMatters 732 followers

6,537 VISITORS

2020’S MOST POPULAR VIDEOS

BOTTLED WATER REPORTER MAGAZINE DIGITAL EDITION (LIFETIME STATISTICS)

49 Videos | Views 1,133,865 | 2,264 Subscribers

412,958 Impressions | 57,796 Reads | 92 Followers

➊

➋

➌

2020 Top 10 Videos and All-Time View Count

➊ The Water Song (391,152 all-time views) ➋ The Inner Workings of a Bottled Water Plant (120,340) ➌ Bottled Water - Always There When You Need It (22,114) ➍ Bottled Water - Small Water Use, Big Health Benefits (33,132) ➎ Good Stewards of the Environment (31,674) ➏ Recycling Empty Plastic Bottles (210,969) ➐ Recycled Holiday Wreath (104,223) ➑ What Is rPET? (2,377) ➒ How Safe Is Bottled Water (1,730) ➓ From Tap to Bottled Water (18,225) IBWA 2020 PROGRESS REPORT

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THE ABILITY TO ENGAGE WITH THE MEDIA, SUPPORTERS AND CRITICS, AND CONSUMERS IN REAL-TIME IS VITAL AND CAN DIRECTLY IMPACT THE PERCEPTION OF OUR INDUSTRY AND OUR PRODUCTS. Our fall “Put It In The Bin” social media campaign— #YouCan #WeWill— encouraged consumers to recycle their empty containers. The campaign used positive messaging to suggest ways people can increase their recycling efforts. Turn to page 7 to see #YouCan #WeWill posts.

America Recycles Day. Recycling education has always been important to our industry. With bottled water being the most popular packaged beverage in the United States, we need to help ensure that our consumers continue to do the right thing and recycle their empty containers. One way that IBWA does this is by being a national sponsor of Keep America Beautiful’s America Recycles Day, which was held on November 15. Through our continued partnership with Keep America Beautiful, we work to help ensure that our consumers continue to do the right thing and recycle their empty containers.

Bottled Water Reporter Magazine. We continue to provide our members with important information in Bottled Water Reporter (BWR), IBWA’s bimonthly magazine. For 60 years, this publication has educated members about the key issues affecting our

industry – and making sure they are up-to-date on association news. BWR is a great resource for bottled water facts and positive industry stories.

TECHNICAL AND ENVIRONMENTAL ACTIONS

The COVID-19 pandemic posed a myriad of issues for technical and environmental matters, including a significant change for IBWA inspections in 2020.

IBWA Inspection Program. The COVID-19 pandemic caused IBWA to suspend the mandatory Tier 1 inspection program in 2020. We are looking into various options to resume on-site audits in 2021 that meet the COVID-19 restrictions that IBWA members have at their plants. The first year of IBWA’s revised audit program was in 2019, which now checks on Food Safety Modernization Act (FSMA) compliance. The results of those audits were very encouraging. It is expected that, like previous years, the numbers will improve with each passing year.

FSMA Implementation.

IBWA continues to provide FSMA implementation and compliance guidance to our members. This is done through webinars,

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educational seminars, News Splash articles, BWR articles, and special member bulletins.

IBWA also prepared a detailed guidance document on the requirements of the FSMA Preventive Controls Rule. That document, combined with the audit check sheets, are the best tools available from IBWA to help companies prepare for an FDA inspection.

FDA and PFAS. IBWA sent a letter to FDA in November 2019, asking the agency to issue standards of quality for PFAS substances. There are currently no federal PFAS standards for any food product or water, including public drinking water and bottled water. EPA has an advisory limit for tap water and is developing a maximum contaminant level (MCL), but it will likely be a few years until a proposed rule is published. In the absence of any federal regulations, and with pressure from the public and media, many states are adopting standards of their own. Some of those regulations apply to bottled water. However, they are all different.

For a public water system operating in one state, the impact of non-uniform PFAS standards is minimal.

However, for companies that make and sell bottled water in multiple states, these new state requirements are burdensome and expensive. If FDA issues a PFAS regulation, as IBWA requested, it will preempt any state requirements. Unfortunately, FDA responded to IBWA’s letter advising us that they will wait for EPA to propose tap water MCLs for PFAS compounds before acting on bottled water standards of quality (SOQs).

In order to help ensure consumer safety, and to provide the highest quality products, IBWA has established the following SOQs for PFAS in bottled water: • 5 parts per trillion (ppt) for a detection of one PFAS compound • 10 ppt for detection of two or more PFAS compounds Member product data reviewed shows that all samples tested were below the 70 ppt EPA health advisory limit for tap water. No state-established MCLs were exceeded, and all data is below the IBWA Board-approved SOQs, which is very good news.

Microplastics. The microplastics issue continues to receive a lot of attention from the media and government officials. There is currently no scientific agreement on what amount of microplastics presents a human health risk. And there are no universally recognized testing methods to accurately detect these substances.

During the past year, IBWA’s Microplastics Working Group reviewed the strengths and weaknesses of available testing methods, based on publicly available studies. The Working Group identified two detection methods that are very effective for bottled water.

In addition, the IBWA Working Group has been coordinating its efforts with the European Federation of Bottled Waters (EFBW). They have also identified the same two detection methods to determine if microplastics are in bottled water. EFBW has also been working with the academic community to develop laboratory protocols for conducting testing – from sampling through the reporting of results.

The Working Group will review the EFBW laboratory protocols when they are issued. The World Health

Organization (WHO) released a report on microplastics in drinking water last year that supports IBWA’s position. The WHO report states, under conclusions and recommendations: “There are no studies on the impacts of ingested microplastics on human health and there are only a limited number of animal studies of questionable reliability and relevance.”

We are also closely monitoring efforts underway in California to define, establish testing methods, and set health limits for microplastics in tap water. These requirements could also be applied to bottled water in California, and other states might seek to adopt similar regulations.

IBWA is also monitoring the implementation of a 2018 law that requires the California Water Resources Control Board to adopt a definition of microplastics in drinking water. This definition would apply only to tap water, but the Board’s decision could influence California and other state regulators who may want to regulate microplastics in bottled water.

The Control Board adopted its definition in June 2020. It seems reasonable, but a lot will depend on the testing methodology and health risk assessment that is adopted. The Control Board must adopt a test methodology and develop accreditation requirements for laboratories to analyze microplastics before July 2021, and it is possible that the microplastics definition will be revisited again in July 2021 once the Board finalizes its testing methodology. We will continue to follow this effort and keep IBWA members informed of any key developments.

NAPCOR’s Recycling Report.

In 2020, the National Association of PET Container Resources (NAPCOR) issued a report prepared for IBWA about PET water bottle recycling in 2018. There were several positive findings from the report.

The water bottle recycling rate increased to 33 percent, which is 2 percent higher than the previous year.

While we need to continue our efforts to increase that number, it is better than the overall beverage recycling rate at 29 percent.

Another finding in the report was that demand for recycled PET (rPET) grew 30 percent. NAPCOR notes that producing new products from rPET uses two-thirds less energy than what is required to make products from raw virgin materials. It also reduces greenhouse gas emissions.

ACC Report on Alternative Packaging Materials.

There are a lot of false claims made about the environmental impact of plastic containers. And our critics

THERE IS CURRENTLY NO SCIENTIFIC AGREEMENT ON WHAT AMOUNT OF MICROPLASTICS PRESENTS A HUMAN HEALTH RISK. IBWA 2020 PROGRESS REPORT 13

THE 2015 GUIDELINES EXPRESSLY STATE THAT CALORIE-FREE DRINKS – ESPECIALLY WATER – SHOULD BE THE PRIMARY BEVERAGES CONSUMED.

are urging people not to buy them. However, according to a study by the American Chemistry Council (ACC), using other packaging materials – such as glass or aluminum – will create 60 percent more greenhouse gas emissions.

IBWA is developing a new infographic comparing the environmental impact of the most common drink package materials. This will be a very useful tool for us to use when educating consumers, the media, and government officials about this issue.

Resource Recycling Systems’ rPET and rHDPE Study. IBWA also commissioned a study on the availability of food-grade rPET and recycled HDPE (rHDPE) in the United States. The analysis concluded that meeting mandated recycled content requirements and individual company commitments for bottled water and other beverage bottles will require significant efforts to increase the supply of recovered feedstock. This includes having greater access to, and promotion of, curbside recycling, and efficiently run bottle deposit programs.

This study also provides IBWA with a model template that can be used to determine the feasibility of

meeting various recycled content commitments and/ or mandates. This will be very helpful as IBWA deals with states that are attempting to enact unreasonable recycled content mandates and effective dates.

Plant Siting Best Practices Guide. IBWA finalized its Plant Siting Best Practices Guide in 2020.

This guide is a useful tool for companies to review when siting a new plant. It includes operational and logistical requirements for developing a new facility.

It also provides information about how to work with the local community to develop a relationship that is mutually beneficial. The Plant Siting Best Practices Guide uses a stepwise approach to site selection: • Step 1: Define facility and operational requirements • Step 2: Location screening • Step 3: Site and community level analysis and screening • Step 4: Site selection The IBWA Plant Siting and Best Practices Guide was sent to all IBWA members earlier this year. Members are encouraged to use this helpful resource when siting a new plant.

Dietary Guidelines for Americans. IBWA was successful in making sure that the 2015 Dietary Guidelines for Americans (DGAs) supported increased access to water as a healthy beverage choice.

The 2015 guidelines expressly state that calorie-free drinks – especially water – should be the primary beverages consumed. And they also encourage a shift to healthier, no-sugar added beverages, such as water, in place of sugar-sweetened beverages.

The process of revising the 2015 DGAs is almost complete, and IBWA worked hard to ensure that the 2020

14 INTERNATIONAL BOTTLED WATER ASSOCIATION

DGAs continue to include positive messages about the importance of water for a healthy diet. IBWA provided oral and written comments during this process and we have urged both U.S. Department of Agriculture (USDA) and the Department of Health and Human Services to take the following actions: • Recognize the importance of plain water consumption as part of a healthy dietary pattern.

• Encourage plain water as a healthier beverage choice for consumers to replace sugar sweetened beverages and reduce added sugar.

• We also asked them to include plain water (in addition to dairy) on the MyPlate nutrition guide graphic.

N

The MyPlate graphic is the primary tool used to educate Americans about nutrition, and it is based on the DGAs. Posters of MyPlate are found all across

R

THE INCREDIBLE WORK PERFORMED DAILY BY PROFESSIONALS IN THE BOTTLED WATER INDUSTRY IS SPECIAL— AND THAT’S CONFIRMED EVEN MORE IN A YEAR LIKE 2020. The COVID-19 pandemic presented our industry with challenges, but bottled water has persevered and even retained our title as America’s favorite packaged drink.

2020 IBWA HALL OF FAME INDUCTEE: ANDY EATON, PHD

SHAYRON BARNES-SELBY/IBWA ADVOCACY AWARD: DERIETH SUTTON, NIAGARA BOTTLING

2020 IBWA AWARDS PROGRAM

For these reasons, it’s important that IBWA held our awards ceremony during

KRISTIN SAFRAN/IBWA BOARD OF DIRECTORS’ AWARD: TOM CONDON, PRIMO WATER NORTH AMERICA

KRISTIN SAFRAN/IBWA BOARD OF DIRECTORS’ AWARD: MARGE EGGIE, POLYMER SOLUTIONS INTERNATIONAL

PLANT MANAGER OF THE YEAR: MONIKA MORGAN, PRIMO WATER NORTH AMERICA

the general session of the 2020 IBWA Annual Business Conference to recognize and thank the people who make this great industry thrive, such as the 2020 award winners shown here.

ROUTE SALESPERSON OF THE YEAR: JON CLEAVER, PRIMO WATER NORTH AMERICA

IBWA 2020 PROGRESS REPORT 15

UP-AND-COMER AWARD: ZAIN ATTEBERY, PURITAN SPRINGS

A Strong IBWA Membership IBWA member retention and recruitment efforts were successful in 2020, despite the pandemic. IBWA added 10 new members for the year. The membership renewal rate for bottlers, suppliers, and distributors was 98.2 percent, which met IBWA’s goal for 2020. This shows that IBWA’s members continue to approve of the benefits and services provided by the association. To learn more about how you can join IBWA, contact IBWA’s Membership Department: cbass@bottledwater.org or 703.647.4615.

our nation’s school cafeterias. We have also noted that 48 other countries currently include water in their nutrition guidance documents.

IBWA has been working on this issue as part of the National Drinking Water Alliance (NDWA).

Other members of this broad coalition include the Center for Science in the Public Interest, American Heart Association, and the American Academy of Pediatrics.

Recycling. IBWA continues to support efforts to increase consumer awareness about the importance of recycling. We are a sponsor of The Recycling Partnership (TRP), a leading national organization promoting curbside and increased local recycling. TRP utilizes public-private collaborations to help local governments get the most out of their recycling programs by increasing resident participation and tonnage collected.

In addition to TRP, IBWA is a member of the Florida and Michigan Recycling Partnerships, and the Northeast Recycling Council.

IBWA DRAWS ITS STRENGTH FROM OUR MEMBERS, WHO HAVE BEEN ABLE TO MAKE THEIR BUSINESSES ADAPT LIKE NEVER BEFORE.

LOOKING AHEAD TO 2021 AND BEYOND Despite the challenges of the COVID-19 pandemic, IBWA was successful in serving our members and the bottled water industry in 2020.

IBWA draws its strength from our members, who have been able to make their businesses adapt like never before. Together, with IBWA staff and consultants, who work hard every day to create a favorable business, legislative, public affairs, and technical climate, our goals were achieved.

As we celebrate our accomplishments for the year, we also plan the continuation of our work for 2021. Because bottled water is the nation’s No.1 beverage product, we are a larger target for our detractors. There will be many opportunities in the years to come for us to promote our great-tasting, safe, healthy, and convenient products that consumers enjoy and rely on. IBWA will fight and vigorously defend your businesses every day. With our talented team of members, consultants, and staff, IBWA will continue to be successful in promoting and defending the bottled water industry.

16 INTERNATIONAL BOTTLED WATER ASSOCIATION

Coming Together Virtually IBWA leadership realized that COVID-19 was impacting organizations and individuals on multiple levels. These challenging VIRTUAL times meant that it was even more critical for the bottled water industry to convene as a community to learn, engage, and share best practices. As a result, IBWA decided not to cancel the 2020 IBWA Annual Business Conference and Trade Show but to hold it using a virtual format over the dates of November 9-12.

Transitioning conference content to a virtual platform was an intense process, but the ultimate result was a well-attended and successful virtual event. In fact, although overall attendance numbers were slightly lower than the 2019 in-person conference, bottler member participation was up 35 percent, thanks to more employees being able to participate in the committee meetings and education sessions from their home offices.

Conference highlights included 13 education sessions, 10 committee meetings, Meridith Elliott Powell as the keynote speaker, a general session that included IBWA’s 2020 awards ceremony, a fundraiser for the Drinking Water Research Foundation (DWRF), and 15 continuing education units available for IBWA’s certified plant operators (CPOs).

For 2021, IBWA’s Supplier and Convention Committee is reviewing conference options, acknowledging that there are still a lot of unknowns due to the COVID-19 pandemic.

However, our hope is that people may be more willing to travel by the fall, and IBWA can hold an in-person conference.

FUTURE IBWA MEETING DATES IBWA offers members several opportunities each year to meet face-to-face and virtually with their bottled water industry peers. Mark you calendars with the dates below, and start planning now to attend these IBWA meetings.

FEBRUARY 23-25 2021 IBWA Board of Directors and Committee Meetings Video Conference Online meetings begin at 11:00 am on Tuesday, February 23; end 4:00 pm Thursday, February 25

JUNE 7-10, 2021 2021 June IBWA Board of Directors and Committee Meetings and Capitol Hill Appointments Hilton Old Town, Alexandria, Virginia Meetings begin at 3:00 pm on Monday, June 7; end 10:30 am Thursday, June 10 LEARN MORE AT WWW.BOTTLEDWATER.ORG/EVENTS.

IBWA VISION

IBWA MISSION

The International Bottled Water Association will be the leading voice for healthy hydration and the bottled water industry.

To serve our members and the public by championing bottled water and other healthy hydration choices, while promoting an environmentally responsible and sustainable industry.

The International Bottled Water Association (IBWA) is the authoritative source of information about all types of bottled waters, including spring, mineral, purified, artesian, and sparkling. Founded in 1958, IBWA's membership includes U.S. and international bottlers, distributors, and suppliers. IBWA is committed to working with the U.S. Food and Drug Administration (FDA), which regulates bottled water as a packaged food product, to establish comprehensive and stringent standards for safe, high-quality bottled water.

In addition to FDA regulations, IBWA member bottlers must adhere to the IBWA Bottled Water Code of Practice, which mandates additional standards and practices that in some cases are more stringent than federal and state regulations.

A key feature of the IBWA Bottled Water Code of Practice is a mandatory annual plant inspection by an independent, third-party organization.

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