Bottled Water Reporter

W W W. B O T T L E D W AT E R . O R G

BWR

IN THIS ISSUE What IBWA Learns From Working With Regulators

How IBWA Helps Your Social Media Efforts

Why Spend Time on Capitol Hill With IBWA

BOTTLED WATER REPORTER | MAY/JUNE 2017

Winning at Route Sales

IBWA Route Salespeople of the Year Offer Advice on How to Get and Retain Customers

Selling Bottled Water Online

Also Inside: Bottled Water Named America’s Favorite Packaged Drink A PUBLICATION OF THE INTERNATIONAL BOTTLED WATER ASSOCIATION

VOL. 57 • NO. 3

COLUMNS GOVERNMENT RELATIONS

20 | IBWA Hill Days: Why Spend Time Building Critical Congressional Relationships If you aren’t on Capitol Hill educating legislators about bottled water, then where will they get their information from?

COMMUNICATIONS

22 | How to Use IBWA’s Social Media Toolkits To ensure the truth about bottled water is shared online, IBWA members should consider helping amplify the association’s bottled water messages.

TECHNICAL UPDATE

24 | IBWA Increases Interaction With FDA on Key Bottled Water Issues Learn about IBWA’s efforts to work with government agencies to resolve regulatory issues.

TABLE OF CONTENTS 8 | Winning at Route Sales A route salesperson in today’s home and office delivery segment of the bottled water industry must possess a unique skill set. And to be the best, you should learn from the best. That's why Bottled Water Reporter talks with current and former IBWA Route Salesperson of the Year title holders to glean what advice they have for others in the industry. By Christine Umbrell

16 | Selling Bottled Water Online As the No.1 packaged beverage product in America, bottled water is in high demand.

Bottlers have many means for getting their products to consumers—and, now, there’s another option on deck: online sales through a third party. By Arthur von Wiesenberger SPECIAL SECTION

28 | Bottled Water: No.1 By the Numbers Check out the statistics that show why bottled water is now the Nation’s favorite packaged beverage.

DEPARTMENTS CHAIRWOMAN'S COMMENTARY...........................2 PRESIDENT’S MESSAGE.......................................4 WATER NOTES.....................................................6 CPO QUIZ..........................................................26 ADVERTISERS....................................................27 CALENDAR........................................................27 CLASSIFIEDS.....................................................27

CONNECT WITH IBWA

BOTTLED WATER REPORTER, Volume 57, Number 3.

Published six times a year by The Goetz Printing Company, 7939 Angus Court, Springfield, VA, 22153, for the International Bottled Water Association, 1700 Diagonal Road, Suite 650, Alexandria, VA 22314-2973.

Tel: 703.683.5213, Fax: 703.683.4074, www.bottledwater.org.

Subscription rate for members is $25 per year, which is included in the dues. U.S. and Canadian subscription rate to nonmembers is $50 per year. International subscription rate is $100 per year. Single copies are $7. POSTMASTER: Send address changes to Bottled Water Reporter, 1700 Diagonal Road, Suite 650, Alexandria, VA 22314-2973.

IBWA IBWA

International Bottled Water Association

CHAIRWOMAN’S COMMENTARY HOME AND OFFICE DELIVERY – YESTERDAY AND TODAY We’ve certainly come a long way to use an old adage, in terms of delivering bottled water to homes and offices. To advance in most instances from glass bottles to using a durable plastic, such as polycarbonate and also using PET plastic; demonstrates the contrast between the packaging used yesterday versus today.

Some legacy brands used a horse-drawn truck to deliver bottled water throughout local communities. Today, we use route trucks with specially designed cabs and bays that meet ergonomic standards.

In today’s fast-paced world, we’ve adopted ways and means to communicate with our home and office delivery customers. We use social media, leave door hangers, send emails and text messages; and yes we still call customers. We are only limited by our imagination as we ensure we are actively staying in contact with our home and office delivery customers. It’s sometimes hard to imagine the challenges that bottlers encountered as recently as last century to effectively communicate with their home and office delivery customers.

New technology and improved packaging are great, but ultimately when it comes to our home and office delivery customers the order of the day is simply customer service.

Delivery of the requested product(s) and equipment, when promised; is important to our home and office delivery customers. Being in the service delivery business is not easy on any given day, but we must continue to explore processes and policies that will ensure our customers are always satisfied with our delivery service. The fact that some of our legacy brands in the bottled water industry, have been delivering to home and offices for more than one hundred years is a testament to our commitment to get it right and make our customers happy.

And finally I want to express my admiration and gratitude to our route service representatives (RSRs). You encounter challenges every day, from traffic to weather conditions to neighbors dogs that seem to bark every time your truck pulls up to the house.

I’ve heard stories of RSRs being cut by broken glass bottles and getting stuck in the mud when the horse would not budge!

Yes, the home and office bottled water delivery service of yesterday has advanced and today represents the best practices available, but the constants and the basics that are the corner stone of our service industry remain unchanged—customer service and route service representatives.

Shayron F. Barnes-Selby Shayron Barnes-Selby IBWA Chairwoman

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International Bottled Water Association OFFICERS Chairwoman Shayron Barnes-Selby, DS Services of America, Inc. Vice Chair Lynn Wachtmann, Maumee Valley Bottlers, Inc. Treasurer Brian Grant, Pure Flo Water Company, Inc. Immediate Past Chairman Joe Bell, Aqua Filter Fresh, Inc.

BOARD OF DIRECTORS Shayron Barnes-Selby, DS Services of America, Inc. Joe Bell, Aqua Filter Fresh, Inc. Charlie Broll, Nestlé Waters North America Philippe Caradec, Danone Waters of America Andy Eaton, Eurofins Eaton Analytical Brian Grant, Pure Flo Water, Inc. Brian Hess, Niagara Bottling LLC Doug Hidding, Blackhawk Molding Co. Scott Hoover, Roaring Spring Bottling Dan Kelly, Polymer Solutions International Greg Nemec, Premium Waters, Inc. Bryan Shinn, WG America Company Robert Smith, Grand Springs Distribution Louis Vittorio, Jr., EarthRes Group, Inc. Lynn Wachtmann, Maumee Valley Bottlers, Inc. William Patrick Young, Absopure Water Co., Inc.

IBWA EXECUTIVE COMMITTEE Chairwoman Shayron Barnes-Selby, DS Services of America, Inc. Joe Bell, Aqua Filter Fresh, Inc. Charlie Broll, Nestlé Waters North America Philippe Caradec, Danone Waters of America Brian Grant, Pure Flo Water Company, Inc. C.R. Hall, Hall’s Culligan Henry R. Hidell, III, Hidell International Scott Hoover, Roaring Spring Bottling Dan Kelly, Polymer Solutions International Ed Merklen, DS Services of America, Inc. Bryan Shinn, WG America Company Lynn Wachtmann, Maumee Valley Bottlers, Inc. William Patrick Young, Absopure Water Co., Inc.

COMMITTEE CHAIRS Communications Committee Julia Buchanan, Niagara Bottling, LLC Audrey Krupiak, WG America Company Education Committee Glen Davis, Absopure Water Co., Inc. Douglas R. Hupe, Aqua Filter Fresh Environmental Sustainability Committee Leslie Alstad, Pure Flo Water Company, Inc. Jeff Davis, Blackhawk Molding Co. Government Relations Committee Derieth Sutton, Niagara Bottling, LLC Lynn Wachtmann, Maumee Valley Bottlers, Inc. Membership Committee Marge Eggie, Polymer Solutions International Kelley Goshay, DS Services of America, Inc. State and Regional Associations Committee Joe Cimino, ChoiceH2O Supplier and Convention Committee Brian Grant, Pure Flo Water Company, Inc. Dan Kelly, Polymer Solutions International Technical Committee Andy Eaton, Eurofins Eaton Analytical Kevin Mathews, Nestlé Waters North America

IBWA

International Bottled Water Association

PRESIDENT’S MESSAGE THE MARKETPLACE EVOLVES, BUT GOOD CUSTOMER SERVICE IS EVERGREEN

BOTTLED WATER REPORTER is published for: International Bottled Water Association 1700 Diagonal Road, Suite 650 Alexandria, VA 22314-2973.

Tel: 703.683.5213 Fax: 703.683.4074 www.bottledwater.org

IBWA STAFF

As the face of the home and office delivery (HOD) segment of the bottled water industry, our route sales representatives are invaluable.

President Joseph K. Doss jdoss@bottledwater.org

HOD route salespeople encounter unique situations every day—everything from technical and mechanical glitches to customer service issues. It takes a special skill set to perform this job well—so, why not learn from the best? That’s why Bottled Water Reporter (BWR) reached out to the current and former IBWA Route Salespeople of the Year to ask them what it takes to be an award-winning route sales representative. Our cover story, "Winning at Route Sales" (p.8), offers insight from these experts, many of whom have 20-plus years in the industry. Hiring managers can learn what qualities to be on the lookout for when hiring people for this position—and bottlers can share with their current sales teams the advice offered from these award winners.

Vice President of Education, Science, and Technical Relations Robert R. Hirst bhirst@bottledwater.org

While our route salespeople are stellar, growth in the HOD marketplace would most likely be classified as steady. According to Beverage Marketing Corporation research, the HOD market has seen, on average, 3 percent growth during each of the last five years. So, BWR asked Arthur von Wiesenberger, founder of BottledWaterWeb.com, to review for our readers the sales innovations occurring online. In “Selling Bottled Water Online” (p.16), von Wiesenberger explains how bottlers of any size can benefit from selling their bottled water products on sites such as JET.com and Amazon. As consumers get more and more comfortable with shopping online, it makes sense to investigate if this is an option your company might want to add to its portfolio.

Our regular columns cover a variety of topics this issue. In the Government Relations column (p.20), we discuss the importance of continuing to build relationships with member of Congress to educate them about our industry’s issues. (An especially relevant topic as IBWA heads to Capitol Hill on June 7, 2017, for our annual Hill advocacy event.) Speaking of IBWA’s educational efforts, the Communications column (p.22) explains how members can use our monthly and campaign-specific social media toolkits to help amplify IBWA’s pro-bottled water messages. Finally, readers can learn about the many ways IBWA works with government agencies to resolve regulatory issues affecting the bottled water industry in the Technical Update column (p.24). And make sure to turn to the last page of this issue (p.28), where we present “Bottled Water: No.1 By the Numbers." This special section presents informative charts highlighting the fact that consumers are driving the shift away from carbonated soft drinks in favor of bottled water.

Joe Doss IBWA President 4

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Vice President of Communications Jill Culora jculora@bottledwater.org Vice President of Government Relations Cory Martin cmartin@bottledwater.org Director of Conventions, Trade Shows, and Meetings Michele Campbell mcampbell@bottledwater.org Director of Government Relations J.P. Toner jtoner@bottledwater.org Director of Science and Research Al Lear alear@bottledwater.org Manager of Publications and Special Projects Sabrina E. Hicks shicks@bottledwater.org Manager of Member Services Cheryl Bass-Briscoe cbass@bottledwater.org Education and Technical Programs Coordinator Claire Crane ccrane@bottledwater.org Executive Assistant Patrice Ward ibwainfo@bottledwater.org Bottled Water Reporter Layout and Design Rose McLeod rozmack@gmail.com Tel: 315.447.4385 Editor Sabrina E. Hicks shicks@bottledwater.org Advertising Sales Stephanie Schaefer stephanie@bottledwater.org On the Cover Joe Gimont, of WG America Company. IBWA would like to thank bottler member WG America Company for contributing this photo for the May/June cover. If you'd like to submit art/photos for consideration for a future BWR cover or other IBWA materials, email Publications Manager Sabrina Hicks: shicks@bottledwater.org.

SOCIAL M EDIA MESSAGING BOARD If you are looki ng

(Tweet on June 8) On #WorldOceansDay and everyday, do your part to help protect the oceans. Never pollute and #AlwaysRecycle.

for new opport unities to conn ect with educate them about bottled w at er issues, feel share any of th free to e following on yo ur social media May and June— sites during or be inspired an d write your ow (Post on May 15-19) It’s National Bike n!

consumers and

(Post on May 9) #ItOnlyTakesOne storm to change your life and community.

During Hurricane Preparedness Week (May 7-13), NOAA suggests that you plan to ensure you have your hydration needs met during an emergency. Have at least 1 gallon per person per day for three to seven days, plus water for pets. flash.org/peril_inside.php?id=84

(Post May 7-13) If a hurricane hits, it’s too late to look for supplies.

That’s why we join the National Weather Service in encouraging you to check your disaster relief kit this week—during National Hurricane Preparedness Week! Remember to include at least 1 gallon of water per person per day for up to three to seven days, plus water for pets. For more information about how to prepare for a hurricane, go to weather.gov or @NWS #ItOnlyTakeOne #HurricaneStrong

National Campaigns May: National Physical Fitness and Sports Month, National Barbecue Month, National Bike Month, American Stroke Month, Drinking Water Week (May 7-13), Hurricane Preparedness Week (May 7-13), National Bike to Work Week (May 15-19), National Women’s Health Week (May 14-20), Mother's Day (May 14), National Bike to Work Day (May 19), 7th Annual Kids to Parks Day/National Day of Outdoor Play (May 20), National Senior Health and Fitness Day (May 31)

to Work Week! Hop on your bike and peddle into work, but make sure to bring a #BottledWater and stay #hydrated! #BottledWaterMatters bit.ly/BikeWithWater

June: Great Outdoors Month, Men's Health Month, National Safety Month, IBWA June Board & Committee Meetings (June 5-8), National Men's Health Week (June 12-18), World Oceans Day (June 8), First Day of Summer (June 21)

5 Things to Know About Getting Your Hurricane Supplies Together. #BottledWaterMatters Heading to a National Park on May 20 for the 7th Annual Kids to Parks Day/National Day of Outdoor Play? Don't forget to bring bottled water—because some national parks don't sell bottled water on site! And don't forget to recycle your empties!

www.instagram.com/p/ooUMopKSrL/?takenby=bottledwatermatters June is Great Outdoors Month! Visit findyourpark. com to locate the closest national park to you. Get outdoors—and take bottled water with you so you can stay properly hydrated! And Always Recycle~! www.pinterest.com/pin/414964553147947955

www.pinterest.com/pin/414964553147458920

(Post on June 21) It’s officially #summer!

As it heats up outside, make sure you are staying properly #hydrated! #firstdayofsummer #healthyhydration www.instagram.com/p/2lnc0XqSpn/ ?taken-by=bottledwatermatters

(Tweet May 7-13) #BottledWater is always there when you need it most! #HurricaneStrong www.youtube.com/watch?v=DOBatcWe08c

(Tweet May 7-13) Water is Everything! Celebrate #DrinkingWaterWeek by learning The Water Song www.youtube.com/watch?v=gvuhAVH-BU8

Download: bit.ly/NPSBW2017

Global recommendations on water intake vary between health authorities. So, how much water should you drink daily? www.pinterest.com/pin/414964553153720313 Download: bit.ly/2017DrinkingWaterWeek

Prepare for summer storms before they hit! #BottledWater is there when you need it most. www.youtube.com/ watch?v=DOBatcWe08c

WATER NOTES

INDUSTRY NEWS

Bottled Water Is No.1 On March 9, 2017, IBWA and the Beverage Marketing Corporation (BMC) announced that Americans are drinking more bottled water than any other packaged beverage––outselling carbonated soft drinks, by volume, for the first time in history.

BMC reports that bottled water sales increased by 10 percent in 2016, and now total $16 billion (wholesale).

In 2016, total U.S. bottled water consumption grew by 8.6 percent to 12.8 billion gallons, up from 11.8 billion gallons in 2015. In addition, per-capita consumption was up 7.7 percent in 2016, with every person in America drinking an average of 39.3 gallons of bottled water last 6

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year, while average intake of carbonated soft drinks slipped to about 38.5 gallons, BMC statistics show.

Bottled water has become consumers’ No.1 drink for many reasons, says Joe Doss, IBWA president and CEO. “Research and polling indicate people are continuing to make the switch from other packaged drinks to bottled water. Some of these reasons include the following: • Bottled water is a healthy packaged drink choice.

• Bottled water tastes great and is refreshing.

• Bottled water is convenient for on-the-go lifestyles.

• Bottled water has trusted safety and quality and is

comprehensively regulated by the U.S. Food and Drug Administration (FDA).

• Bottled water packaging has a proven record of safety.

• Bottled water is sold in containers that are 100-percent recyclable.

• Bottled water has the lowest water and energy use ratio of all packaged beverages.

• Bottled water has a tiny water-use footprint. The entire industry uses less than 0.011 percent of all water used in the United States each year.

• Bottled water containers use much less PET plastic than soft drinks containers (9.25 grams vs. 23.9 grams, on average for 16.9-ounce containers). Soda needs a thicker plastic container due to its carbonation.

BMC data from the past two decades shows that a large part of the sales growth for bottled water is the result of a “consumer shift” from sugar-sweetened beverages to bottled water.

“Bottled water effectively reshaped the beverage marketplace,” says Michael C. Bellas, chairman and CEO, Beverage Marketing Corporation. “When Perrier first entered the country in the 1970s, few would have predicted the heights to which bottled water would eventually climb.

“With the exception of two relatively small declines in 2008 and 2009—when most beverage categories

contracted—bottled water volume grew every year from 1977 to 2016. This period included 17 double-digit annual volume growth spurts.

Since resuming growth in 2010, bottled water volume has consistently enlarged at solid single-digit percentage rates,” says Bellas.

Reflecting a clear trend of consumers increasingly choosing safe, healthy, convenient, zero-calorie bottled water, BMC reported that in 2016, bottled water had achieved a new volume record—4 billion gallons higher than it had been in 2007. Soft drinks, on the other hand, underwent their eleventh consecutive year of volume reductions in 2016.

IBWA members promoted the exciting news that bottled water is now America’s favorite packaged beverage using the “Bottled Water Is No.1 For a Reason” campaign toolkit. This social media campaign thanked consumers for choosing healthy hydration and identified some of the many reasons consumers choose bottled water over other packaged beverages.

The toolkit provided members with a variety of Facebook posts, Instagram images, Pinterest pins, Twitter tweets, and web posters they could share online with customers, legislators, friends, and family. For more information on this campaign, contact IBWA Vice President of Communications Jill Culora: jculora@bottledwater.org.

WATER NOTES CORPORATE LEADERSHIP

Nestlé Waters North America Names New CEO On March 31, 2017, Nestlé Waters North America (NWNA) announced that Fernando Mercé has been named president and chief executive officer (CEO) of the company, effective May 1, 2017. Mercé, formerly CEO of Nestlé Purina Latin America & Caribbean, will oversee all NWNA's operations in both the United States and Canada. He will also serve as a member of the global Nestlé Waters board of directors.

“I am delighted that Fernando will be leading Nestlé

Waters North America as it begins an exciting new chapter,” said Maurizio Patarnello, chairman and CEO, Nestlé Waters. “His proven leadership, passion for innovation and deep commitment to creating a learning culture will enrich our strong NWNA teams and ensure that we build on our growth legacy to retain our leadership position in the category.”

At Nestlé Purina Latin America & Caribbean, Mercé presided over a sustained period of strong results,

including double-digit increases in organic growth, profitability, and market share, all while introducing key innovations to the PetCare category.

Mercé began his career with Nestlé in 1992 as an industrial engineer with the Operations Improvement Team, before joining marketing and steadily increasing his responsibilities. His roles have included e-business development, director of marketing for the Friskies™ Brand, and global market-

Fernando Mercé

ing director in the PetCare Global Strategic Business Unit. Mercé also served as vice president and deputy of Nestlé’s Americas Zone before moving to Nestlé Purina.

ASSOCIATION STAFF

Cory Martin and Jill Culora Join the IBWA Team IBWA is pleased to announce

overseeing ABA’s grass-

that Cory Martin is IBWA’s

roots advocacy campaigns,

new vice president of govern-

working with its PAC, and

ment relations and Jill Culora

organizing and leading legisla-

its new vice president of

tive fly-ins. Earlier in his career,

communications.

Cory worked as the executive

Cory’s background

director of the Utah Associa-

includes extensive experience

tion of Mortgage Brokers. At

lobbying at the federal level on

IBWA, Cory can be reached

a wide-range of food-industry

at cmartin@bottledwater.org

issues, including labeling,

or 703.647.4618

quality, and the Food Safety

Earlier in her career, Jill

Modernization Act (FSMA).

worked as the head of

He most recently served

the media relations unit

as director of government

at James Cook University

relations at the American

in Australia, a newsroom

Bakers Association (ABA),

print reporter (News

where he was responsible for

Corporation and Tribune

Cory Martin Media), a magazine writer (Condé Nast and BoatUS), and a producer of television (Canadian Broadcasting Corporation) and radio (Australian Broadcasting Corporation) news programs.

Since 2009, Jill has worked as a communications/

Jill Culora public relations consultant to IBWA and has a full understanding of the many important issues facing the bottled water industry and the IBWA membership.

Members can contact Jill at jculora@bottledwater.org and 703.647.4609.

Attend IBWA’s June Board of Directors and Committee Meetings All IBWA members are invited to attend the association's upcoming June Board of Directors and Committee Meetings, which will be held at the Hilton Old Town in Alexandria, Virginia, June 5-8, 2017. Members can register at bit.ly/IBWA2017BoardReg. In addition, members are encouraged to sign up to participate in an afternoon full of events and meetings on Capitol Hill on Wednesday, June 7. IBWA members can register for IBWA Hill Day at bit.ly/IBWA2017HillDay.

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COVER STORY

WINNING AT ROUTE SALES Bottled Water Reporter talks with current and former IBWA Route Salesperson of the Year title holders to learn how sales reps can be successful in today’s HOD market.

By Christine Umbrell

A route salesperson in today’s home and office delivery (HOD) segment of the bottled water industry must possess a unique skill set.

In addition to the physical requirements involved in maneuvering large trucks through traffic to deliver plastic containers full of heavy product to customers in homes and businesses (a 5-gallon bottled water container weighs 40 pounds), route sales representatives also facilitate personal interactions with dozens or even hundreds of customers during the course of a work day.

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START THE DAY PLANNING TO BE EFFICIENT. IT'S IMPORTANT TO STAY ORGANIZED, AND DON'T RACE AGAINST TIME. SIMON COX - THE WATER GUY

" To delve deeper into the abilities and character traits that make a successful route salesperson, Bottled Water Reporter spoke with current and former IBWA Route Salesperson of the Year title holders. They offered their thoughts on the HOD sales job and shared tips for excelling in this space. Included in the discussions were Simon Cox from W.G. America Company in Birdsboro, Pennsylvania; Mike Forristall from Nestlé Waters North America (NWNA) in Dracut, Massachusetts; Shawn Kelleher from Culligan Bottled Water in Brooklyn Park, Minnesota; and Jerry Williams from NWNA in Northbrook, Illinois.

People Skills Everyone in the bottled water industry knows that being a good HOD sales representative requires more than simply making a quick delivery and leaving. It turns out that being a “people person” is one of the most important characteristics of successful route salespeople.

Taking the time to interact with customers during deliveries can lead to solid long-term relationships and even increased sales. At some stops, “you’re in and out,” says Cox. “But at others, you get to know a little about them, and they get to know a little about you. I want my customers to see me as a human being and want to do business with me.”

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Kelleher has established personal relationships with some of his long-standing customers as well. “You get to know them—and learn about their families,” he says. He routinely offers his cell phone number to customers, in case they have any questions in-between deliveries. Kelleher believes that building relationships based on trust helps customers feel comfortable voicing any concerns, which he can then address quickly. “We need to resolve any issues right away,” says Kelleher.

Going “above and beyond” during deliveries is an important goal for successful HOD reps, agrees Williams. “I try to talk to as many customers as I can,” he says. “Any company can deliver water. We have to differentiate ourselves—by going the extra mile to make sure the customer is happy, by saying ‘Good morning,’ by knowing our client’s name, by making sure the cooler is working, and by asking if they need anything or if there’s anything we could be doing differently,” he explains.

Face-to-face interaction can facilitate add-on sales, says Williams, whose clients often order items based on his recommendations. While many of today’s sales are being driven by technology-enabled marketing efforts—such as e-blasts and social media posts—“it’s good for individual route salespeople to remind customers of our portfolio," says Williams.

He notes that there are still plenty of customers who are

HOD SALES

not as “connected” to their devices as younger consumers, so in-person sales remain a key part of the job.

Strong people skills also contribute to customer retention, notes Forristall. "When you establish a relationship with the business owner or resident, it's likely they will remain a customer for a long time." By striving to exceed customers’ expectations, you will retain business, he says.

Forristall has been known to contact his customers before he goes on vacation to let them know he will be out of town and to ask if they might have special needs while he is away. These personal touches strengthen his relationships with his customers, and build customer loyalty.

Team Players Working well with others—both supervisors and coworkers—is an important attribute for bottled water route salespeople. A “team” mentality evolves more easily for HOD reps who work at companies that facilitate camaraderie and value employee feedback.

Kelleher emphasizes the importance of a good rapport with your supervisor, and he says one of the reasons he

TO BUILD LONG-TERM RELATIONSHIPS WITH CUSTOMERS, IT'S IMPORTANT TO TAKE THE TIME TO INTERACT WITH THEM DURING DELIVERIES. enjoys his job at Culligan is because he is encouraged to share any new ideas he has that may assist the entire sales team. In fact, Kelleher was a member of a committee tasked with coming up with new ideas, and he appreciates that management is open to input from all levels of staff.

Williams agrees that having the leadership's support makes for more successful route salespeople. He says management at his NWNA branch has an “open-mindedness to

ProStack ® & Polymer Solutions International, Inc. Where Ideas Become Solutions

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WHEN YOU ESTABLISH A RELATIONSHIP WITH THE BUSINESS OWNER OR RESIDENT, IT'S LIKELY THEY WILL REMAIN A CUSTOMER FOR A LONG TIME.

" listening to employees at the ground level, so route drivers are willing to speak up about things and share their thoughts with leadership."

Forristall appreciates his company’s “open-door policy”: “If there’s something pressing, they’ll bring you into the office and listen to you.” He also believes the work environment is enhanced when employees look out for one another. The HOD reps at his branch “have each other’s backs,” he says.

For example, when one former employee was injured while serving in Afghanistan a few years ago, Forristall organized a collection among his co-workers and dropped off the donation at the employee’s home to help his family out during the challenging time. Being able to “impact others for good while you’re working” makes for happier and more productive work relationships, he says.

Forristall also enjoys a role as a mentor to some of the NWNA new employees at his branch. When a new hire comes on board, that employee rides along with mentor drivers to learn the job responsibilities. Forristall takes pride in training the new hires and sharing the “goals and beliefs” of the job.

Looking out for his co-workers is also a goal for Williams, who plays a mentorship role at his company and is considered the “MacGyver” of his branch. His unique ability to 12

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MIKE FORRISTALL – NESTLÉ WATERS NORTH AMERICA

fix things and desire to help out his co-workers when small problems arise promote a sense of fellowship at his branch.

Knowing that others will support you when complications arise, says Williams, leads to a more committed team of route salespeople.

Adaptability to New Technology As in other industries, new technologies have changed the way the job gets done for bottled water delivery. The ability to adapt to those changes is a critical skill for route salespeople.

Because Forristall first started at NWNA 30 years ago, you can believe him when he tells you that today’s 5-gallon bottles, with “a nice handle and plastic cap,” make the job less physically challenging than when he started. And the coolers themselves, he suggests, are much more convenient and easier to deliver.

Delivery tracking systems have also evolved, says Forristall.

“When I first started, we had to keep track of all of our inventory, and we used calculators to keep track of all of the fulls and empties,” he recalls. What’s more, he remembers using a Rand McNally map book to plan his route each morning in the early days—but now, “GPS helps you run your route.”

Cox also notes that deliveries today are easier than when he first started on his route in 2007—but the work requires

HOD SALES

more familiarity with new technologies. Developments such as electronic mapping and GPS systems, electronic invoicing, and company-driven social media marketing efforts that target customers and potential customers have altered the way he carries out his job.

there’s still a long way to go,” he says. Being flexible and willing to embrace new technologies that enhance the job will continue to be an important attribute for HOD drivers as more changes take hold. (For more on bottled water sales through Amazon and other websites, turn to page 16.)

“Every couple of years, we change the handheld devices we use,” says Cox. His current iteration offers enhanced directions to guide salespeople once they arrive at a building to drop product—“they tell you which door to go in, and where exactly to place the water,” says Cox. Once a delivery is complete, the information is reported back at the office, and the customer gets an email with a record of delivery within a couple of hours.

Pride in the Product Successful HOD sales reps share a passion for the work they do, and they genuinely care about their company and the reputation of its brand and services—which can have a positive effect on how they do their job and how their customers perceive them during deliveries.

Being proficient on a smartphone is a requirement of the job today. “We use our work phones for everything now,” says Kelleher. But he believes the water delivery business is just in the initial stages of leveraging new technologies, and a bigger technological evolution may be coming. “I don’t think it’s even been tapped into yet.”

Williams points to the evolution of Amazon Prime, with its increasingly popular same-day delivery option, as a model for the future of water delivery. “The bottled water industry has come a long way since the days of the horse-and-buggy and glass water bottles in crates—but

“You have to believe in the product and the company,” says Williams, who has been a route sales representative for NWNA for 23 years. “If you don’t have passion for the product, then you won’t have the passion to want to be out there every day.” Forristall agrees: “I take pride in what I deliver—that’s part of what keeps me here.” Further supporting his stance, Forristall states that he stocks his home refrigerator with his company’s products.

Kelleher, who has been with Culligan for 19 years, says he believes his company’s product “is the best product out there.

I take pride in what I deliver—bottled water is the best.”

This feeling spills over into his willingness to promote new

IT’S A HEAVY LIFTING JOB, SO YOU HAVE TO BE FIT. IT’S IMPORTANT TO KEEP UP WITH THE PHYSICAL AND MENTAL CHALLENGES INHERENT IN A ROUTE SALESPERSON JOB. SHAWN KELLEHER - CULLIGAN BOTTLED WATER

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ANY COMPANY CAN DELIVER WATER. WE HAVE TO DIFFERENTIATE OURSELVES—BY GOING THE EXTRA MILE TO MAKE SURE THE CUSTOMER IS HAPPY.

"

JERRY WILLIAMS – NESTLÉ WATERS NORTH AMERICA

products and to make suggestions for what customers may need in the future. “We really think ahead for the customer, to help them with seasonal changes,” Kelleher says. Because he has delivered to many of the same Culligan customers for several years, “it gets easy to predict what they’re going to need and make suggestions at the appropriate time.”

Kelleher also takes pride in his equipment and the presentation of the product at each delivery. He focuses on cleanliness at every stop. “It’s important to look at where they’re storing the water, and what the cooler and the adjacent area look like,” he says. Customers can sense when the individuals making their deliveries take pride in their work, which can ultimately lead to increased sales and customer retention.

Commitment to Safety HOD sales representatives have to keep an eye out for safety in many environments—while at the branch, while on the road, and while making deliveries at customers’ homes and offices. Safer drivers equate to fewer accidents and injuries—and a more profitable company.

At the start of each shift, successful route salespeople have a goal for the day and a well-thought-out plan to accomplish that goal safely. “Start the day by planning to be efficient,” Cox advises. “It’s important to stay organized, and 14

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don’t race against time,” says Cox, who believes he’ll do a better job if he serves “one customer at a time.”

Staying safe while carrying the weight of hundreds of water bottles each day can be “physically and mentally draining,” says Cox, and it’s important to stay physically fit to avoid injury. He tries to eat healthy and drink plenty of water throughout the day. “You need to live a healthy lifestyle to be successful with such physical work.”

“It’s a heavy lifting job, so you have to be fit,” agrees Kelleher. “It’s important to keep up with the physical and mental challenges” inherent in a route salesperson job.

Safe driving practices, like the Smith System, also are required, says Williams. “Know the vices that inhibit the senses while driving,” he recommends, emphasizing the importance of eliminating distractions while on the road. As an example, Williams states that he refrains from listening to the radio while driving his truck because “I want my sight and hearing fully intact” while on his route.

A Positive Attitude Perhaps the most important characteristic of a successful route salesperson is a good attitude. “There’s days when nothing’s perfect—where there’s trouble with the truck or your load, but you need to be able to adapt,” says Kelleher.

HOD SALES

“If you’re having a bad day, you don’t want the customers to know it.”

each shift. “At the end of the day, reflect on all the work you did and realize your accomplishment,” suggests Kelleher.

Kelleher drives what is known as a “brutal” route in a downtown area, where there’s a lot of traffic and not a lot of room to maneuver and park. But he never complains, and his customers there appreciate his dedication in a difficult location. “I’m comfortable here, and they know me on the route,” he says. “It’s a challenging area, and the competition’s fierce—but I take pride in being ‘the downtown guy.’”

While there is no one formula for the “perfect” HOD route salesperson, Cox, Kelleher, Forristall, and Williams come pretty close. Their ability to work well with customers and co-workers, their willingness to adapt to new technologies, their belief in the product, their commitment to safety, and their positive attitude make them true role models within the bottled water industry.

Like Kelleher, Forristall also looks at the glass as “half full” each day. There have been some challenging days during his 30 years on the job, but he has stayed focused on finding opportunities to do the right thing. “I choose to focus on what’s good, instead of what’s bad, and then go do the job.”

The award-winning route salespeople interviewed for this article agree that reviewing your accomplishments when all of your deliveries have been made is a great way to end

Christine Umbrell is a freelance writer based in Herndon, Virginia. Email her at christineumbrell@gmail.com.

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SELLING BOTTLED WATER ONLINE

By Arthur von Wiesenberger

In the mid-1990s, I dipped my toe into the world of online bottled water sales with the launch of the BottledWaterBoutique website.

At the time, it was a logical extension of BottledWaterWeb.com, a site I’d founded in 1995 that became an early leader in providing consumers with information about bottled water on the internet.

With thousands of visitors reading about bottled water on my site, I thought why not help them get easy access to some of the brands featured?

The biggest challenge was transporting the cases of product to consumers. UPS had a rigid pricing structure that could make the delivery costs as much, or even more, than the actual case price.

Another issue was that it made little sense for me to warehouse the bottled water products because shipping to a central distribution point only added additional transportation costs.

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ONLINE SALES

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The answers to helping companies defray expenditures on shipping are relatively simple: volume, loyalty programs, handling fees, higher costs on initial purchases, and membership fees.

The solution to the second issue was to make agreements with bottlers to ship directly to consumers from their bottling plants. For example, Trinity Springs in Idaho would receive an order from the BottledWaterBoutique, which generated a shipping label for the case.

Staff at Trinity Springs only had to affix the label on the cases ordered and call UPS to pick it up. But the shipping cost was not so easy. We had thought that a uniform charge per case would be the easiest way to charge customers.

Because some cases would travel short distances, those savings would balance out the orders that were delivered to more distant destinations. In reality, however, the majority of customers ordered bottled water brands from the most distant bottlers. East Coast brands were more popular on the West Coast; West Coast brands were in higher demand back East.

Was it human nature to think the grass was greener on the (far) other side?

Eventually, BottledWaterBoutique merged with Jeff Dunn’s BottledWaterStore.com, which launched 19 years ago.

At one time, the site offered up to 40 brands of bottled water on the site and about 100 stock keeping units (SKUs).

Product was stocked in Dunn’s garage in Florida, and, for 10 years, his car lived outside the garage. “Water is heavy,” explains Dunn, “and shipping was too much work.” So, he started to focus on private label bottled water where 18

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the products could be shipped directly from participating vendor locations.

Currently, he works with nine bottling plants across the United States and only ships by trucks because UPS, according to Dunn, “is too expensive.” He will ship from a minimum of 12 cases to a truck load (i.e., 21 pallets, which in half-liter custom labeled PET bottles equals 36,288 bottles). BottledWaterStore’s pricing per private label bottle is close to the current price of some 16.9-ounce PET bottles sold on Amazon, which is delivered free to Amazon Prime Members.

In July 2016, the premium online store Salacious Drinks (www.salaciousdrinks. com) was launched by R.J. Hyatt and co-founder Ashley Epperson. They entice online shopping with a mix and match option—where customers can select from six to 12 bottled waters and create their own sample pack. Consumers can also order straight cases of bottled water. “We have stayed away from mainstream brands and offer something unique,” says Hyatt. Their roster of brands covers bottled water from around the world—everything from New York’s Tickle Water (which is marketed as a kids' brand with product offerings of plain sparkling and also flavored sparkling water in cans) to Norway’s Svalbaroi iceberg water in 750 ml glass bottles. FedEx handles the shipping for Salacious Drinks.

HOD Re-envisioned?

Selling bottled water online can be seen as an offshoot of the home and office delivery (HOD) model, but with more choices and types of water, brands, sizes, and frequency and convenience of delivery. Obviously, shipping bottled water can be problematic—considering that a single gallon of water weighs 8 pounds whether you are shipping it across the city, across the country, or around the globe. So, how do companies factor the expense of shipping costs while providing inexpensive or free delivery?

The answers to helping companies defray expenditures on shipping are relatively simple: volume, loyalty programs for points that can be used for future purchases, handling fees, higher costs on initial purchases, and membership fees.

Both individual bottled water companies, mega-retail stores, and shipping companies see the potential of shipping water, and a big part of that is the convenience for consumers in not having to lug heavy water from the store to their homes. This is immensely helpful for senior citizens, parents who are short on time, and consumers with disabilities for whom shopping is a chore. According to a 2016 survey by Deloitte, just 42 percent of consumers characterize threeto four-day shipping as “fast,” whereas in 2015 it was “within 5 days.” Today, most people expect two-day delivery. In fact, Wal-Mart started offering free two-day shipping in early 2017 on orders of $35 or more from an assortment of 2 million items. That’s down from the previous minimum threshold of $50. Money talks, but it seems time talks louder.

Wal-Mart’s JET.com JET.com is the next generation of the e-commerce marketplace. JET ships a broad selection of bottled water brands; a sampling of their offerings include Nestlé Waters products, Essential Alkaline Water, Fiji, Voss, Smart Water, Evi-

IBWA member bottlers can sell your bottled water brands on JET by becoming a Jet Retail Partner. Jet uses a dynamic pricing engine to match each Jet member’s shopping cart with the optimal retailer for each transaction.

The fulfillment of a purchase is derived using an algorithm that selects the best retailer to the shopper’s basket size and delivery location.

In order to sell on JET, bottlers will need a developer or technical resource to set up the JET application program interface (API), which is a set of routines and protocols for building software applications. For each product you want to sell on JET, you’ll need an SKU, images of the product, pricing, etc. For more information, visit JET. com and click “Sell on JET” or go directly to https://partner.jet.com.

Other online sellers that you might consider establishing a relationship with include the following:

Amazon Amazon ships any and all water, allowing for the most diverse selection of bottled water anywhere, and Amazon Prime’s $99 annual fee means “free” shipping. Consumer Intelligence Research Partners estimates that Amazon has 63 million Prime members as of 2016, and those customers are three times more likely to purchase more items than those who do not use Prime. According to Bloomberg, in 2014 Amazon launched Prime Now in New York, with couriers who drove cars, rode bikes, and took public transportation with carts loaded

ONLINE SALES

an, Core, Blk, Penta, Icelandic Glacial, Real Water, Iceland Spring, Saratoga, Eternal Natural, Glacier Clear, True New Zealand, and Neo Superwater.

JET’s pricing on bottled water is diverse enough that everyone can find a brand that suits his or her wallet.

CONNECT WITH E-COMMERCE If you are interested in learning more about how to sell your bottled water products on a particular website featured in this article, contact them directly: • Amazon: Become an Amazon Vendor bit.ly/HowToBecomeAnAmazonVendor • Costco – Shipt.com: Costco Vendor Inquiries bit.ly/SellAtCostco • JET.com: Sell on Jet partner.jet.com • ReStockIt.com: Contact Vendor Relations at 800.680.0859 (Push 7 when prompted) or email info@restockit.com.

up with Amazon boxes for delivery.

Currently, Prime Now services more than 40 cities. Guess what the service’s most popular items are? Bottled water and toilet paper.

Costco - Shipt.com

Costco recently signed a deal with Shipt.com to deliver groceries to residences. Costco members do not have to use Shipt, a third-party shipping service, but it is available to all members.

However, Costco has also raised its membership fees, presumably to compensate, at least in part, for Shipt’s $99 annual fee for delivery. Shipt also works with other grocery stores to be their delivery service as well, and dues vary.

Shipt is not national, as of this writing, but the company is planning to capture a greater percentage of that market.

ReStockIt.com A beverage supply company located in Florida, ReStockIt.com ships bottled water in all container types: cans, glass bottles, plastic bottles, etc. For orders over $149, it has free shipping within the contiguous United States. However, it adds “freight delivery,” which in many cases is also listed—not as “shipping” but “handling”—so it behooves the consumer to be aware of all charges.

Future On-Demand Clearly, the key is a scalable distribution network. Aside from that—and the issue of volume sales—the niche market will undoubtedly sustain itself as consumers look for affordable convenience, ease of purchases, and home delivery on demand. With e-commerce purchases rocketing to almost 10 percent of all retail sales and a changing demographic (i.e., the effect of Millennials, who are accustomed to making purchases from their smartphones, and number over 76 million people), bottled water purchases on the internet will become increasingly more important. As the HOD market has remained steady, averaging 3 percent growth during the last five years, bottlers might find that exploring a business strategy that includes a strong online retail presence a must. Looking to the future, 74 percent of all babies born today have Millennials as parents—and they will influence the next generation of bottle water buyers.

Arthur von Wiesenberger is the founder of BottledWaterWeb.com.

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IBWA Hill Days: Why Spend Time Building Critical Congressional Relationships

By Cory Martin, IBWA Vice President of Government Relations

Relationships are critical in all facets of life. The bottled water industry would not be as successful as it is without having spent years building sustainable relationships with suppliers, customers, and local communities. That same attention to relationship building is also critical with your elected representatives in Washington, DC. Members of Congress crave connectivity with their constituents, but why?

Because the relationships they build with you help them survive future political battles, some of which may impact issues important to your livelihood (e.g., recycling, water use, bisphenol A, FDA funding, bottled water sales bans, etc.)—and ultimately help them win the next election.

Congressional relationships, just like any other business or personal relationship, 20

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are not built in a day. To be maintained, they need constant care. IBWA members can play a critical role in strengthening the bonds between members of Congress and your companies back in their home districts through education.

The good news is that IBWA makes it easy for you to connect with legislators and forge relationships that lead to positive outcomes for your business and the bottled water industry. From monthly visits to Capitol Hill to the annual June Hill Day, IBWA offers multiple resources to help members connect with legislators (e.g., the Take Action, Economics, and Get Involved pages on bottledwatermatters.org). This year’s IBWA June Hill Day is scheduled for Wednesday, June 7. To encourage more member participation,

let’s review a few success stories from past IBWA-led Hill visits.

Starting Point “My very first experience on the Hill was last century,” remarks IBWA Chairwoman Shayron Barnes-Selby (DS Services of America, Inc.) of her first visit to Capitol Hill in 1993. From that time on, Shayron has been a stalwart advocate and incredibly effective bottled water warrior for the industry. Impressively, during one of her visits to Congress she participated in 31 meetings with members of Congress and their staff in two days, a record that may stand the test of time.

Former IBWA Chairman Joe Bell (Aqua Filter Fresh) began participating in IBWA Hill Days in 2014. “For some-

GOVERNMENT RELATIONS

JUST LIKE ANY RELATIONSHIP, CONGRESSIONAL CONNECTIONS ARE NOT BUILT IN A DAY. THEY NEED CONSTANT CARE. one who had never been [to Capitol Hill], it was a great experience, seeing how government works, and, in some cases, doesn’t,” says Joe. “I was surprised with the openness of most congressional offices to hear what we had to say.”

Members of Congress want to achieve results for their constituents because they want to gain your trust and support for the next election. But, they can’t do things to help you and your business if they do not know who you are. As Shayron explains, “They do not know about you until you present yourself and the issues that concern you, your business, and your industry.”

Relationships Lead to Results Although we already have some fantastic bottled water champions on Capitol Hill, an ever-changing political landscape means that more are needed. But how do you build these relationships? First, you talk with legislators about how bottled water is produced. To start the education process, Derieth Sutton (Niagara Bottling LLC), a current co-chair of IBWA’s Government Relations Committee, typically invites elected officials to tour one of Niagara’s facilities back home: “IBWA Hill Days provide an opportunity for me to get decision makers in the door of my

DS Services of America's Viola Johnson-Jacobs, Shayron Barnes-Selby (IBWA Chairwoman), and Kelley Goshay with Sen. Elizabeth Warren (D-MA) (second from right).

From left: Niagara Bottling's Derieth Sutton (co-chair of IBWA's Government Relations Committee) with Rep. Elise Stefanik (R-NY).

plant for them to see how the bottling industry operates with their own eyes— and to tell the industry’s great success story through demonstration.”

Joe Bell also invited his members of Congress to visit his plant: “In the last two years, I have had Congressmen Keith Rothfus (R-PA) and Tim Murphy (R-PA) both in for plant tours. Now when they see me, they know me. No introductions are now necessary.” This kind of relationship building results in elected officials who are informed about bottled water industry issues, which can be critical when legislation is being considered that could help or hinder the industry. For example, in 2014 a visit from Tom Morvant (Silver Springs Bottled Water Company) with his member of Congress resulted in the legislator co-signing a bill. According to Tom, "I was able to present my information on a bill we were pushing and the representative co-signed on the bill. That

Aqua Filter Fresh's Doug R. Hupe, Joe Bell (IBWA Immediate Past Chairman), and Doug A. Hupe with Rep. Keith Rothfus (R-PA) (second from right).

was exciting to me—knowing that I may have made the difference in him doing so.” Shayron has had similar experiences in her visits to Capitol Hill. “When the bottled water regulations were published in November 1995,” she explains, “I felt that I, and so many others within the bottled water industry, had been heard. I was proud of our collective effort.”

Tell Your Story These success stories could not have been possible without IBWA members taking the time to build relationships with their members of Congress. We must continue to engage with our elected officials, build relationships with House and Senate leaders, and work together to achieve positive results for the industry. There’s a public relations adage that states, “If you don’t tell your story, someone else will.”

The bottled water industry cannot allow others to tell our story.

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How to Use IBWA’s Social Media Toolkits Help IBWA amplify its pro-bottled water messaging

By Jill Culora, IBWA Vice President of Communications

Developing original content to post regularly on your company’s social media platforms can be a big hurdle to overcome. To help remedy that issue, IBWA routinely creates social media toolkits that contain original digital content for members to share on the social media platforms you use most: Facebook, Twitter, Instagram, and Pinterest. If your business is either not aware of IBWA’s toolkits or not taking advantage of them, you might want to pass this article along to the staff person or team responsible for posting to your social media platforms—because they may find the information that follows useful.

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Customized Content To help promote positive bottled water messaging, IBWA crafts monthly and campaign-specific toolkits that include customized, theme-driven social media posts. We email toolkits to the staff member who has been identified as responsible for their company’s social media initiatives, and we also include them in IBWA’s Splash e-newsletter.

These toolkits contain Facebook posts, Instagram images, Pinterest pins, and Twitter tweets (with URLs to YouTube videos) members can share with customers, legislators, friends, and family to educate them about bottled water. Your communications staff will

likely use the toolkits in one of the following ways: • Cut and paste posts, as well as save or upload images, directly from the toolkits for use on your company social media platforms.

• Use the suggested posts as inspiration for more customized posts that better suit your business needs.

• Decide to simply Like, Share, or Retweet the posts from IBWA’s platforms. (For direct access to IBWA’s Facebook, Instagram, Pinterest, Twitter, and YouTube profiles, click on the social media icons on the top of IBWA’s homepage: www.bottledwater.org).

COMMUNICATIONS

IBWA’S TOOLKITS HELP MEMBERS SHARE POSITIVE BOTTLED WATER STORIES ON SOCIAL MEDIA. •

Be reminded that IBWA makes this original content available—and decide it’s time to put into action your good intentions to update your social media pages.

and, as more and more members got involved in the campaign and began using our hashtag #1FORaREASON on social media, IBWA staff was delighted to watch the momentum build.

We Want to Hear From You IBWA members are encouraged to share their ideas for future social media campaigns and let us know if current communication initiatives have been helpful to you. Send your comments to IBWA Vice President of Communications Jill Culora: jculora@bottledwater.org.

The Ripple Effect While IBWA’s toolkits are designed to help members keep their individual social media efforts current, they also meet another goal: amplifying the reach of our pro-bottled water messaging through coordinated efforts. Recently, we experienced some success when we rolled out our “Bottled Water Is No.1 for a Reason” campaign. IBWA members may recall receiving weekly emails from IBWA following the official announcement on March 9, 2017, that bottled water had outpaced carbonated soft drinks to become America’s favorite packaged beverage for the first time in history. The campaign focused on thanking consumers for choosing healthy hydration and highlighted some of the many reasons consumers choose bottled water over other packaged drinks. Each week, IBWA produced digital posters featuring different themes (e.g., choice, low water use, safety, consumer-driven shift) and provided suggested social media posts. IBWA asked members to promote the material for the duration of the week. As in any marketing effort, messaging sticks when you see it more than once, so having multiple member companies post the same image during the same week helped to ensure that IBWA’s messages were heard.

IBWA’s “Bottled Water Is No.1 for a Reason” campaign ran for seven weeks,

All too often, articles posted online about bottled water include negative, false, or misleading information about our products and our industry. The “Bottled Water Is No.1 for a Reason” campaign gave us an opportunity to emphasize the positive aspects of our industry and amplify the reach of bottled water facts on the internet. The campaign’s success can be attributed to IBWA members working together to amplify our visibility and increase the industry’s ability to be heard in the social media blogosphere.

Looking Ahead IBWA is currently developing another social media campaign that members will be able to promote during the upcoming summer months. Called “Bottled Water: Where You Live, Work, and Play,” this digital effort will focus on the convenience of bottled water—both on-the-go and at home and work—and encourage the recycling of all plastic beverage containers. Plans include a

launch on the first day of summer ( June 21), with the campaign running web posters and posts on Facebook, Twitter, Instagram, and Pinterest. Be sure to check your email and IBWA’s weekly Splash e-newsletter for updates on this exciting campaign as they become available.

Get on the List If you'd like to ensure that the people responsible for your company's social media efforts receive IBWA's social media toolkits, email their names and email addresses to IBWA Publications Manager Sabrina Hicks: shicks@bottledwater.org.

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IBWA Increases Interaction With FDA on Key Bottled Water Issues

By Bob Hirst, IBWA Vice President of Education, Science, and Technical Relations

During the past 15-20 years, IBWA has maintained an excellent working relationship with staff at the U.S. Food and Drug Administration’s (FDA) Center for Food Safety and Applied Nutrition (CFSAN), which regulates bottled water. When technical and regulatory 24

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issues arise, IBWA has been able to discuss our concerns with FDA staff in a constructive environment, resulting in resolution of several adverse issues.

For example, in 2000 FDA agreed with IBWA’s request for permission to remove “undesirable elements” in water

that would enable us to comply with FDA standards of quality for arsenic and bromate while maintaining the identity of the final product (i.e., “spring water”).

Recently, IBWA has entered into discussions with CFSAN staff on the issues detailed on the following page.

TECHNICAL UPDATE Fluoride Labeling In 2016, FDA published a new rule for nutrition labeling that included new formats for reporting nutritional information to consumers and revisions to serving sizes. Fluoride was one of the substances affected by the updates.

Currently, fluoride is presented on labels as milligrams per liter (mg/l); however, FDA’s revision meant a labeling requirement of mg per serving. Combined with a change in serving size, the mg/serving revision proved to have a negative impact on fluoride reporting. Instead of seeing 0.7 mg/l of fluoride on the label, bottlers would be required to follow the revised rule’s formula, which would change the mg/l information on the label to mg/serving. Depending on container size, the mg/serving would be reported in some cases as “0,” despite the water containing the 0.7 mg/l of fluoride recommended by the Centers for Disease Control and Prevention (CDC) and the American Dental Association (ADA).

After several conversations during which IBWA expressed our concerns, CFSAN agreed to a policy of regulatory discretion that would effectively allow IBWA bottlers to be exempt from the new labeling requirement and to continue reporting fluoride content on the label as mg/l.

FDA’s 2009 Ground Water Rule In 2009, FDA published a revised bottled water GMP rule (21 CFR 129.35) that modified how bottlers respond to natural water sources that test positive for coliform bacteria and Escherichia coli (E. coli). Overall, the rule promoted the microbiological quality of bottled water; however, it conflicted with some state regulations that permitted certain types of treatment for water sources that test positive for coliforms and E. coli. The FDA rule did not recognize treatment

IBWA CONTINUES TO WORK WITH GOVERNMENT AGENCIES TO RESOLVE REGULATORY ISSUES AFFECTING OUR INDUSTRY. as a corrective action for contaminated sources and limited bottlers’ responses to a contamination incident. This conflict possibly resulted in two recalls in recent years, even though the bottlers maintained effective microbial disinfection treatment that achieved 4-log reduction of viruses in water.

In 2016, IBWA initiated discussions with CFSAN to develop a solution that would assure continued protection of public health while also permitting bottlers the opportunity to address the source contamination issue without loss of a source or product being considered “adulterated” if the water originated from a source that tested positive for coliforms.

IBWA submitted a draft of a “revised” bottled water GMP rule that established treatment as an interim measure to protect public health while also avoiding a recall and providing a bottler time to implement corrective action within a 120day time period (e.g., locate a new source or mitigate contamination at current source). Specific language was extracted from the U.S. Environmental Protection Agency’s (EPA) Ground Water Rule, on which the 2009 FDA rule was based.

FDA recently advised IBWA that it agreed with the proposed approach. In addition, rather than initiate a lengthy regulatory process, FDA stated it would exercise regulatory discretion on a caseby-case basis, employing suggestions from IBWA’s draft rule revision. Should there be an increase in frequency of contaminated natural water sources, FDA would initiate rulemaking to formally revise its Ground Water Rule with changes suggested by IBWA.

Ozone as a Final Sanitizing Rinse Another great example of IBWA’s productive working relationship with CFSAN stems from the FDA bottled water GMP rule that requires ozone to be applied to food contact surfaces during the final disinfecting rinse at a concentration of 0.1 mg/l for 5 minutes, resulting in a contact time (CT) of 0.5.

Currently, no bottle washer/rinser/filler units on the marketplace can provide that combination of ozone concentration and time. IBWA is in discussions with CFSAN to allow application of alternative CTs for ozone that allow higher mg/l levels of ozone to be applied for shorter periods of time, while maintaining the same 0.5 CT required in the existing rule (e.g., 0.5 mg/l of ozone for 1 minute or 1 mg/l of ozone for 0.5 minute). FDA appears to be interested in resolving this conflict and has agreed to review ozone validation data that IBWA is currently gathering in support of a revision of the bottled water GMP requirement, or to justify regulatory discretion, either of which would alleviate the situation where bottlers are being cited for not meeting the exact conditions set forth in the current regulation.

IBWA will continue to review all industry technical and regulatory issues to help ensure a productive regulatory environment for our members and, if necessary, work with CFSAN and other government agencies to find solutions to any conflicts.

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CPO QUIZ

IBWA

certified plant operators (CPOs) are encouraged to complete the following quiz for ½ IBWA continuing education unit (CEU). The questions are derived from material presented in this issue of the Bottled Water Reporter, the IBWA Plant Technical Reference Manual, and the IBWA Bottled Water Code of Practice. Submit this quiz to Claire Crane (ccrane@bottledwater.org / Fax: 703.683.4074), IBWA Education and Technical Program Coordinator, 1700 Diagonal Road, Suite 650, Alexandria, VA 22314. Look for additional quizzes in future issues and earn additional IBWA CEUs! Name______________________________________________________

Company_ _________________________________________________

Address____________________________________________________

City_______________________________________________________

State/Province_ _____________________________________________

ZIP/Postal Code_ ___________________________________________

Check your selection for each question

1|

Revised FDA rules will impact the way bottled water is labeled for _____ content.

OO OO OO OO

Arsenic Fluoride Mineral Vitamin

2|

IBWA is requesting modification of the 2009 FDA ground water rule to the allow for treatment providing _____ reduction of viruses in water.

OO OO OO OO

0.5-log 100% 4-log 95%

3|

Which of the following processes is NOT involved in the manufacture of purified water?

OO OO OO OO

Reverse osmosis Distillation Deionization Granular activated carbon (GAC)

4|

According to IBWA policy, it is acceptable for water intended for bottling to be stored, transported, processed, or bottled through equipment or lines used for milk, other dairy products, nonbeverage foods, or any non-food product.

OO True OO False

5|

The current FDA requirement for ozone used as a sanitizer on food contact surfaces in bottled water plants is _____.

OO OO OO OO

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6|

The Centers for Disease Control and Prevention (CDC) recommends a fluoride concentration of _____ in drinking water.

OO OO OO OO

1.0 mg/l 0.7 mg/l 0.5 ug/l 1.4 mg/l

7|

Currently, the FDA ground water rule states that bottling of a ground water source that is contaminated with E. coli renders the final product _____.

OO OO OO OO

Adulterated Healthy Safe Marketable with an adequate warning on the label

8|

Which of the following is NOT a mineral typically added to purified water?

OO OO OO OO

Calcium Potassium Iron Magnesium

9|

A food contact surface exposed to 0.5 mg/l of ozone for 1 minute yields a CT of 0.5.

OO True OO False

10|

According to the IBWA Code of Practice, daily testing of each finished product water type for _____ may be performed in-house by qualified plant personnel or by an approved laboratory

OO OO OO OO

pH Total coliform Volatile organic chemicals Cap torque

CALENDAR 2017

ADVERTISERS

MAY 8-10

Blackhawk Molding Co.. . . . www.blackhawkmolding.com. . Inside Front Cover Pacific Ozone Technology. . . www.pacificozone.com . . . . . . . . . . . . . . . . . . 15 Polymer Solutions Int'l. . . . . . www.prostack.com. . . . . . . . . . . . . . . . . . . . . . . . 11 R.Bardi. . . . . . . . . . . . . . . . . www.r-bardi.com. . . . . . . . . . . Inside Back Cover Steelhead Inc. . . . . . . . . . . . www.steelheadinc.com . . . . . Outside Back Cover

Convention CBWA La Quinta Inn and Suites Paso Robles, CA

MAY 17-20 NWBWA 25th Anniversary

BWR 2017 IBWA MEDIA

Support your industry while getting ahead of the competition!

Place an ad in IBWA's Bottled Water Reporter magazine and News Splash e-newsletter.

Contact Stephanie: 817.719.6197 / stephanie@bottledwater.org.

PLANNER

WE'RE NO.1

IN 2017, BOTTLED WATER WILL SOFT DRINKS OUTPACE AS THE NO. BEVERAGE 1 IN THE UNITED PACKAGED STATES. Now is the time to ensure your business is a part of that success—n to plan your ow is the time advertising campaign with Internationa l Bottled Water the Association authoritative , the voice on all issues concerning the bottled water industry.

JOIN OUR TEA M

Convention & Trade Show Hilton Portland & Executive Tower Portland, OR

JUNE 5-8

IBWA June Board of Directors and Committee Meetings Hilton Old Town Alexandria, VA

OCTOBER 19-21

NEBWA Annual Convention Saratoga Resort and Casino Saratoga Springs, NY

NOVEMBER 6-10

IBWA Annual Business Conference and Trade Show Gaylord Texan Resort Grapevine, TX

CALENDAR 2018

IBWA's 2017 PCQI Workshops

JUNE 4-7

IBWA June Board of Directors and Committee Meetings Hilton Old Town Alexandria, VA

IBWA continues to plan PCQI workshops for 2017. Current workshop locales include the following:

CALENDAR 2019

Dallas/Arlington, Texas May 23-25

Denver, Colorado September 14-17

If you have any questions about IBWA's PCQI workshop schedule, contact IBWA Vice President of Education, Science, and Technical Relations Bob Hirst: bhirst@bottledwater.org.

CLASSIFIEDS

FOR SALE Five gallon used steel bottled water racks. The racks are 3 wide and 4 high. Each rack holds 24 bottles per rack.

Fork lift base on each rack. $125 each Contact: Scott McLauchlin 941.744.9249 Ext. 517

JUNE 3-6

IBWA June Board of Directors and Committee Meetings Hilton Old Town Alexandria, VA

ARE YOU AN IBWA PAC MEMBER? The IBWA Political Action Committee (PAC) is an important and vital component of IBWA’s political advocacy—both in Washington, DC, and in your backyard.

Interested in learning more about the activities and work of the IBWA PAC and how you can support industry efforts?

Contact IBWA Director of Government Relations J.P. Toner: 703.647.4616 or jtoner@bottledwater.org.

MAY/JUNE 2017

BWR

27

BOTTLED WATER SOLD IN THE U.S.

BOTTLED WATER:

(BILLION GALLONS)

By the Numbers

14 12 10

Since March 9, 2017, the news has been official. IBWA and the Beverage Marketing Corporation (BMC) issued press releases on that day announcing that bottled water has outpaced carbonated soft drinks to become the largest beverage category, by volume, in America. That means bottled water is now the Nation’s favorite packaged beverage.

Here’s how the numbers stack up.

8 6 4 2 0

2006 2008 2010 2012 2014 Source: Beverage Marketing Corporation (2017)

2016 VOLUME SHARE OF STOMACH

BOTTLED WATER IS

BY U.S. BEVERAGE SEGMENT (BILLIONS OF GALLONS) Tap/Others 11.3%

Carbonated Soft Drinks 20.1%

Value-Added Water 0.9% Energy Drinks 1.1%

At home, work, or on-the-go, bottled water’s convenient packaging options help people stay hydrated.

Wine/Spirits 2.2%

Bottled water is the consumer’s convenience drink of choice.

According to a Harris Poll, 86 percent of peopled polled purchase bottled water.

Sports Beverages 2.5% Fruit Beverages 4.9% Tea 6.0%

Bottled Water 20.6%

Milk 9.1%

Beer 10.3%

Source: Beverage Marketing Corporation (2017)

Coffee 11.0%

PROJECTED WATER & CSD GROWTH (MILLIONS OF GALLONS)

18000

CSDs

10-Yr CAGR:

15000 12000 9000 Premium Retail PET Waters 6000 3000

Bulk, HOD, Vended, Sparkling, Imported Waters

2010

2011

2012

2013

2014

P: Preliminary p:Projected

28

BWR

WWW.BOTTLEDWATER.ORG

2015

2016P

2017p

2018p

2016

2019p

2020p

Source: Beverage Marketing Corporation (2017)

Bottled water is a very small water user—accounting for just 0.011 percent of all the water used in the United States. (Biggest users are thermoelectric power at 45 percent and irrigation at 32 percent.)

Bottled water products have a proven safety record.

Consumers know that bottled water is the reliable, convenient, healthy choice.

Consumers like bottled water because its containers are 100 percent recyclable.

Environmental stewardship has always been an important part of the bottled water business, and consumers are continuing to learn about and be impressed by those efforts. For more information, visit bottledwater.org.

AD 4 DEC

OR ES OF W

One Operator Bottling Systems: 150 – 350 bph 5 Gallon Systems

Water Treatment: RO, Mineral Injection, Ozone

Check with us for pre-owned options

Full Plants: Turnkey Solutions for Every Size

NS

High Speed Bottling Systems: 450 – 3000 bph 5 Gallon Systems

VATION s SO NO

TIO LU

LI T Y s I QUA N

All bottling processes are not equal. Steelhead stands alone with our commitment ommitme ent ients. to innovation, efficiency and bottom line profitability for our clients.

S E RV I C E LD CLASS