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GreenWater Industries, Inc.
Industry Analysis Report
Muriel Burrell, Courtney Manning, Diana Matthews, Elizabeth Tucker
1) Industry description and analysis
a. What is the industry? What are its components and segments? What
are the corresponding SIC/NAICS numbers?
 Industry: Bottled Water Manufacturing
 Components and Segments NAICS: 31 Manufacturing; 312
Beverage and Tobacco Product Manufacturing; 3121 Beverage
Manufacturing; 31211 Soft Drink and Ice Manufacturing;
312112 Bottled Water Manufacturing.
 NAICS (North American Industry Classification System):
312112 – Bottled Water Manufacturing
U.S. Census Bureau. (2008). 2002 Numerical List of Manufactured and
Mineral Products. Retrieved March 5, 2008 from
http://www.census.gov/prod/ec02/02numlist/02numlist.html.

Components and Segments SIC: 2000 Food and Kindred
Products; 2080 Beverages; 2086 Water, pasteurized: bottled or
canned.

SIC (Standard Industrial Classification): 2086 – Beverages
U.S. Department of Labor Occupational Safety & Health Administration.
(2008). Retrieved March 5, 2008 from http://www.osha.gov/index.html.
b. Are there any significant trends affecting it?
 Trends affecting the bottled water industry include: concern over
plastic bottle recycling; diminishing water sources and regulation
of groundwater withdrawals.
 According to the International Bottled Water Association,
consumers reported taste as being the main reason for making the
choice to purchase bottled water.
 The ever-growing fitness trends, the uncertainty of well water,
partnerships with municipalities and emergency preparedness all
help drive this category forward.
 The "healthy" image of bottled water continues to demand
attention from consumers who perceive bottled water as a
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healthier alternative to sports drinks, juices, soft drinks and tap
water.
Water Quality Products: Bottled Water Industry Update. (September, 2006).
Retrieved March 10, 2008 from http://www.wqpmag.com/%20Bottled-WaterIndustry-Update-article7245.
c. Is the industry affected by any technological, economic, demographic,
political or legislative developments? In what ways?
 Bottled water consumption is growing fastest worldwide in India
and Asia. Many emerging economies are faced with providing
safe drinking water to massively expanding urban populations
that have confounded the existing urban systems, and as such,
consumers are turning to packaged water, which includes bottles
and poly bags. Safe drinking water is a major concern for
governments.
 Bottled water remains the most efficient way to get safe, healthy
drinking water to populations. Additionally, in many areas
around the globe bottled water is the only source of safe water.
 With the shift in global populations from agrarian societies and
regions to urban centers, the world will see the importance of
packaged water remaining dominant.
Water Quality Products: Bottled Water Industry Update. (September, 2006).
Retrieved March 10, 2008 from http://www.wqpmag.com/%20Bottled-WaterIndustry-Update-article7245.
d. Is this a “new” or an “old” industry?
 Bottled water manufacturing is not a new industry, however, it
has changed significantly over the years.
 Water spas and the bottling of natural mineral waters had also
become well established in North America at that time. In 1845,
Poland Spring water was bottled for sale in three gallon demijohns. In South America, São Lourenço bottled water appeared in
Brazil in 1890.
American Beverage Association. History: Bottled Water. (2008). Retrieved
March 10, 2008 from http://www.ameribev.org/all-about-beverage-productsmanufacturing-marketing--consumption/americas-beverage-products/bottleddrinking/history/index.aspx.
e. What are the market analysts predicting and recommending about
the industry? What is its outlook for the future?
 The bottled water industry is in the “consumer/non-cyclical” goods
category.
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Google. Google Finance. Consumer – Non-Cyclical. (2008). Retrieved March 10, 2008 from
http://finance.google.com/finance?client=ig&catid=52760568.
Google. Google Finance. Consumer – Non-Cyclical. Beverages: Non-Alcoholic. (2008).
Retrieved March 10, 2008 from
http://finance.google.com/finance?client=ig&catid=52760568
http://finance.google.com/finance?catid=63796143.

Market Forecast: Economic outlook for the bottled water industry is
favorable and growth is expected to occur. In 2006, bottled water
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revenue in the United States was $15.6 billion, with a compound
annual growth rate of 8.1% from 2002. It is the second largest
commercial beverage category by volume in the United States in 2003.
The European is even bigger, with $32.2 billion in revenue.
Unflavored water comprises 89.6% of the market share. Globally, the
United States comprises 25.6% of the market, while Europe is the
biggest consumer, with 52.9% market share. Although profits can be
high from bottled water, a fragmented market and the fact that retailers
do not incur high switching costs can increase competitiveness, driving
prices down. In 2011, the United States bottled water market is
projected to grow 48.5% from 2006, and the global market is projected
to grow 41.8%. “Supermarkets and hypermarkets form the most
significant distribution channel in the US bottled water market, with a
71.6% share of the market's volume.” (DataMonitor). Bottled water
contains no calories, fat, or cholesterol, making it a good choice for
health-conscious consumers. As consumers are aging and waistlines
grow, bottled water is set to become a viable alternative to other less
healthy beverages, and profits will increase. U.S. consumption of
bottled water grew 9.5% from 2005 to 2006, while soft drink
consumption decreased 1.1%. Many public schools now ban soft
drinks from their campuses, but bottled water, along with juice and
low-calories offerings, remain. Water infused with vitamins and
minerals, in particular, is forecast to grow heavily. Besides healthconsciousness, other attributes that heavily drive bottled water sales
are concerns about local water supply and relative wealth of
consumers.
Datamonitor Industry Market Research. (2007, Nov. 15). Bottled Water
Manufacturing (312112), United States. Retrieved March 28, 2008 from Business &
Company Resource Center.
Datamonitor Industry Market Research. (2007, Nov. 15). Bottled Water
Manufacturing (312112), Global. Retrieved March 28, 2008 from Business &
Company Resource Center.
International Bottled Water Association. (n.d.). Retrieved March 28, 2008 from
http://www.bottledwater.org/.
Standard & Poor’s. (2007, December 13). Industry Surveys: Foods & Nonalcoholic
Beverages. Retrieved March 28, 2008 from Standard & Poor’s NetAdvantage.
2) Major Players
a. What are the most important companies in the industry?
 The most important companies in the water industry are Nestle
Waters North America, PepsiCo, and Coca-Cola Corporation.
b. Are there any “up-and-comers?”
 Numerous “boutique” water companies are born every year.
However, these brands are usually attached to larger corporations
like Coca-Cola, PepsiCo, or Nestle.
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c. What market share do the major players have in the industry?
 PepsiCo Inc., Purchase, New York, has the top U.S. bottledwater brand in Aquafina, which had a 14.5% market share,
according to 2004 retail data compiled by Beverage Digest.
Coke's Dasani brand, a purified tap water, was No. 2 with a 9.5%
share.
Organic Consumers Association. Coke Tightens Grip on North American
Bottled Water Market. (April 22, 2005). Retrieved March 10, 2008 from
http://www.organicconsumers.org/btc/cokewater050305.cfm.

Nestlé Waters has a market share of 18% in terms of value and is
recovering an indisputable leadership position in terms of
volume.
Nestle Waters. (March 7, 2006). Press. Retrieved March 10, 2008 from
http://www.press.nestle-waters.com.

The bottled water business is a $35 billion worldwide industry.
It is considered the fastest-growing major U.S. beverage
category.
Water Quality Products: Bottled Water Zone. (September, 2007). Retrieved
March 10, 2008 from http://www.wqpmag.com/Bottled-Water-Zone16.
d. Is the industry represented by small growing companies, or by older
giant companies?
 The industry is represented by older giant companies.
e. Is there a global market for this industry and its U.S. companies, or
are foreign companies posing a threat?
 There is a global market for the bottled water industry and its
U.S. companies. Foreign threats have mostly been “absorbed”
into the larger, more dominant U.S. companies.
3) Product Development
a. What are the current issues in product development?
 Ground water filtration
 Plastic bottle technology
 Food value additives
 Flavored water
 Water bottled with individual and corporate names labeled
 Recycling
b. Who are the primary researchers/research institutions?
The primary researchers are those hired by the main corporations in the
bottled water industry – mainly Nestle and Coke. Various research
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institutions are hired by the large corporations to conduct the research.
Also, many universities across the country are engaged in water filtration,
water conservation, and water packaging research (e.g. Auburn University
in Auburn Alabama – see patent information below).
c. Are patents being issued for the industry? In what areas?
WATER BOTTLING and WATER BOTTLES
 Twist-open closure having inclined frangible membrane
A closure for a container having an opening includes a base cap and an
overcap that form a sealed chamber adjacent the opening that is
isolated from the contents of the container. The base cap includes an
outer skirt having container-engaging structure, a cylindrical well, a
frangible membrane connected to the well along an inclined line of
weakness and by a hinge member. The hinge member includes a
pocket extending downward adjacent lower and upper terminuses of
the line of weakness. The overcap includes a body having gripping
structure, an inner skirt received within and rotatably connected to the
well, and a cutting member depending from a lower end of the inner
skirt received within the pocket such that the cutting member extends
below the upper terminus. The cutting member severs the line of
weakness upon substantial rotation of the overcap with respect to the
base cap. A method of using the closure is also disclosed.
 Inventors: Ma; Mike Xiaoli (San Jose, CA)
 Assignee: Portola Packaging, Inc. (Batavia, IL)
 Appl. No.:
10/525,143
 Filed:
September 16, 2004
 PCT Filed:
September 16, 2004
 PCT No.: PCT/US2004/030476
 371(c)(1),(2),(4) Date: February 16, 2005
United States Patent and Trademark Office. USPTO EBC. Patent Portals. Patent
Electronic Business Center. (2008). Retrieved March 11, 2008 from
http://patft.uspto.gov/netacgi/nphParser?Sect1=PTO2&Sect2=HITOFF&p=1&u=%2Fnetahtml%2FPTO%2Fsearchbool.html&r=7&f=G&l=50&co1=AND&d=PTXT&s1=Bottled&s2=water&O.
WATER BOTTLING and WATER BOTTLES
 CLAIM The ornamental design for a bottle, as shown and described
herein.
 Inventors: Laupie; Marc (Nomexy, FR)
 Assignee: Nestle Waters North America (Greenwich, CT)
 Appl. No.: D/247,959
 Filed:
July 21, 2006
 This is one of 12 bottle designs currently being patented by Nestle
Waters North America
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United States Patent and Trademark Office. USPTO EBC. Patent Portals. Patent
Electronic Business Center. (2008). Retrieved March 11, 2008 from
http://patft.uspto.gov/netacgi/nphParser?Sect1=PTO2&Sect2=HITOFF&p=1&u=%2Fnetahtml%2FPTO%2Fsearchbool.html&r=1&f=G&l=50&co1=AND&d=PTXT&s1=%22Nestle+Waters%22&O
S=%22Nestle+Waters%22&RS=%22Nestle+Waters%22.
GROUND WATER FILTRATION
 United States Patent
7,341,664
 Lee, et al. March 11, 2008
 Method for forming an in situ groundwater filter
A method and system for forming an in situ subsurface filter in a
contaminated aquifer and for removing contaminants from
groundwater drawn from a contaminated aquifer. The filter is
produced in situ by injecting an aqueous solution comprising bacteriastimulating chemical components through a well to bioactively
generate a subsurface mineral filtering zone surrounding the well. As
water is subsequently drawn through the well, contaminants are
removed from the water as it passes through the filtering zone.
 Inventors: Lee; Ming-Kuo (Auburn, AL), Saunders; James A.
(Auburn, AL), Nichols, III; Samuel H. (Auburn, AL)
 Assignee: Auburn University (Auburn, AL)
 Appl. No.: 10/865,572

Filed: June 10, 2004
United States Patent and Trademark Office. USPTO EBC. Patent Portals. Patent
Electronic Business Center. (2008). Retrieved March 11, 2008 from
http://patft.uspto.gov/netacgi/nphParser?Sect1=PTO2&Sect2=HITOFF&p=1&u=%2Fnetahtml%2FPTO%2Fsearchbool.html&r=1&f=G&l=50&co1=AND&d=PTXT&s1=%22bottled+water%22&OS
=%22bottled+water%22&RS=%22bottled+water%22.
WATER WITH FOOD VALUE
 United States Patent
7,238,380
 Stillman July 3, 2007
 Water containing soluble fiber: A water-like fluid containing safe
water and a significant quantity of soluble dietary fiber. The resulting
solution is generally optically clear and has physical properties similar
to potable water. The fluid is intended as a replacement for bottled, or
other water, as a means to ensure proper hydration. Depending on the
soluble fiber used the fluid is either non-caloric or extremely low in
calories. The amount of soluble fiber is adjusted to a specific amount
of water so that consumption of an adequate amount of fluid ensures
hydration (e.g., eight 8 oz. glasses per day) will also providing an
optimal amount of dietary fiber. This is particularly valuable in
stressed situations where the diet may not provide adequate fiber
without supplementation. The constant metered supply of fiber
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provided throughout the day is preferable to, and more convenient
than, "bolus" administration of fiber through laxatives, etc.
Additionally, the constant presence of soluble fiber in the digestive
tract provides the known beneficial effects of moderating the
postprandial increase in blood glucose, modulating serum lipid levels,
and suppressing appetite.
Inventors: Stillman; Suzanne Jaffe (Los Angeles, CA)
Appl. No.: 10/204,572
Filed: February 22, 2001
PCT Filed: February 22, 2001
PCT No.: PCT/US01/05630
371(c)(1),(2),(4) Date: April 02, 2003
PCT Pub. No.: WO01/62108
PCT Pub. Date: August 30, 2001
United States Patent and Trademark Office. USPTO EBC. Patent Portals. Patent
Electronic Business Center. (2008). Retrieved March 11, 2008 from
http://patft.uspto.gov/netacgi/nphParser?Sect1=PTO2&Sect2=HITOFF&p=1&u=%2Fnetahtml%2FPTO%2Fsearchbool.html&r=1&f=G&l=50&co1=AND&d=PTXT&s1=%22bottled+water%22&OS
=%22bottled+water%22&RS=%22bottled+water%22.
WATER WITH MINERALS ADDED
 United States Patent 7,090,878
 Mehansho, et al. August 15, 2006
 Mineral fortified water
 A water composition that is fortified with at least one mineral and has
a pH between about 2.5 and 9.5. The water composition has a redox
potential that satisfies the following equation: 0.gtoreq.RP-(A-B*pH)
wherein RP is the redox potential in millivolts of the mineralcontaining water composition, pH is the pH of the mineral-containing
water composition, A is 400 and B is 20. The mineral is preferably
selected from calcium, iron, zinc, copper, manganese, iodine,
magnesium, and mixtures of these. Moreover, the mineral-fortified
water composition is preferably substantially free of flavor or
sweetener compounds. Even more preferably, the water composition
has no metallic taste or after-taste, a Hunter colorimetric "b" reading of
less than 5.0, and an NTU turbidity value of less than 5.0. The
mineral-fortified water composition may optionally contain other
nutrients and vitamins, for example, vitamin A, vitamin C, vitamin E,
niacin, thiamin, vitamin B6, vitamin B2, vitamin B 12, folic acid,
selenium, and pantathonic acid.
 Inventors: Mehansho; Haile (Fairfield, OH), Mellican; Renee Irvine
(Bradenton, FL), Nunes; Raul Victorino (Loveland, OH), Marcano;
Adrian Monsalve (Cincinnati, OH)
 Assignee: The Procter & Gamble Company (Cincinnati, OH)
 Appl. No.: 10/247,190
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Filed: September 19, 2002
United States Patent and Trademark Office. USPTO EBC. Patent Portals. Patent
Electronic Business Center. (2008). Retrieved March 11, 2008 from
http://patft.uspto.gov/netacgi/nphParser?Sect1=PTO2&Sect2=HITOFF&p=1&u=%2Fnetahtml%2FPTO%2Fsearchbool.html&r=1&f=G&l=50&co1=AND&d=PTXT&s1=%22bottled+water%22&OS
=%22bottled+water%22&RS=%22bottled+water%22.
Are patents being awarded to other corporate entities or to academic and research
institutions?
 The bottle patents are being awarded to corporations
 The filtration patent is being awarded to an academic institution
 The soluble fiber water patent is being awarded to an individual
 The mineral water patent is being awarded to a corporation
d. What standards and regulations may be impacting the development
and growth of the industry?
International Bottled Water Association: the information resource for the bottled water industry. Model
Code and Regulations Regarding Bottled Water. (2008). Retrieved March 11, 2008 from
http://www.idswater.com/water/us/IBWA/bottled_water_code/15_0/g_supplier_6.html.
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International Bottled Water Association: the information resource for the bottled water industry. (2008).
Model code and regulations regarding bottled water. Retrieved March 11, 2008 from
http://www.idswater.com/water/us/IBWA/bottled_water_code/15_0/g_supplier_6.html.
FROM THE NEWS:
Green Water
The bottled-water industry has taken a knock over claims that its product is bad for the
environment. Now it's fighting back.
Daniel McGinn
Newsweek Web Exclusive
Updated: 3:27 PM ET Aug 15, 2007
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It's been a tough summer for the bottled-water industry. In June, the U.S. Conference of
Mayors, led by San Francisco's Gavin Newsom, passed a resolution calling for a study of
the negative environmental impact of bottled water and praising the high quality of
municipal tap water. In July, under pressure from environmental activists, Pepsico
announced it would begin adding "source labels" to bottles of Aquafina, making it clearer
to consumers that the stuff inside is merely tap water that's been subjected to extra
purification. And in the July issue of Fast Company magazine, award-winning writer
Charles Fishman penned a highly critical story about Americans' $16 billion-a-year
bottled-water habit, which he calls an "indulgence" in a world in which 1 billion people
lack access to dependable water sources. "When a whole industry grows up around
supplying us with something we don't need—when a whole industry is built on the
packaging and the presentation—it's worth asking how that happened, and what the
impact is," Fishman writes.
Now the bottled-water industry is fighting back. On Friday, NEWSWEEK has learned,
The New York Times and the San Francisco Chronicle will each carry a full-page ad
containing a message from the International Bottled Water Association. This week's
campaign will be the first industrywide advertising since 1999. In the ads, the industry
pushes the notion that "calorie-free, refreshing water" is a healthy choice in a country
where diabetes, obesity and heart disease afflict so many people. But beyond touting
those healthy virtues, the ad also seeks to subtly reframe the debate. "Whether it comes
from a faucet or a bottle, drinking water is an easy step people can take to lead a healthier
lifestyle," the ad says.
Much of this message is not new: the industry has spent years promoting the notion that
Americans are better off drinking bottled water than soda or beer, and from a health
standpoint, it's hard to argue with them. But lately more people—like the U.S. mayors—
are comparing bottled water not to Coke or Budweiser, but instead to the free, clean stuff
flowing out of taps. Since bottled water requires petroleum to create its containers, is
often trucked across the country to supermarkets, and leaves millions of plastic shells
behind in landfills after it's guzzled, that's a comparison that's necessarily less flattering.
The messaging in the new ads—hey, it's all water, whether it's from a tap or a bottle—
represents the latest twist in the industry's attempt to portray itself in better light. "It's
unfortunate that we've gotten into this situation where [people are] pitting tap water
against bottled water," IBWA president Joseph Doss told NEWSWEEK. "We don't
disparage tap water and we just think it's a good thing if people are drinking water."
Three in four Americans, according to industry research, drink both tap and bottled water,
depending on where they are and what they feel like drinking. Consumers shouldn't look
at bottled versus tap as an either-or proposition, the industry is suggesting. Instead, they
should look favorably on both types of water, and consider bottled water when tap isn't
an option. "[A]s far as we're concerned, the drink in everyone's purse, backpack and
lunch box should be water," the ad proclaims.
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Activists aren't surprised by the industry's counterpunch. "Certainly, other industries that
come under pressure roll out image advertising," says Patti Lynn, campaign director of
Corporate Accountability International, which has been trying to educate consumers
about the detriments of bottled water through an initiative it calls "Think Outside the
Bottle." And even as the new ads hit consumers' doorsteps, environmental advocates are
still working hard on the issue. They're urging the industry's two other big players, CocaCola and Nestlé, to follow Pepsico's lead and provide more information on their labels.
They're also continuing calls for Aquafina to remove the mountain images from its label,
which the group believes implies to consumer that the bottle contains mountain spring
water.
In the meantime, more cities are considering following the lead of San Francisco, which
has banned city employees from using tax dollars to buy bottled water to consume at
work. For a crisp, cool drink, it appears this will continue to be a long, hot summer.
McGinn, D. (2007, August 2). Green Water: The bottled-water industry has taken a knock over claims that
its product is bad for the environment. Now it's fighting back. Retrieved March 11, 2008 from
http://www.newsweek.com/id/32589.