An article appearing in today's Times Online highlights how future growth for the bottled water industry lies in Asia. The article echoes what we at the Polaris Institute have been saying over the past few months that led by Coke, Pepsi, Danone and Nestlé, the industry will increase its exploitation of the desperate lack of potable publicly delivered Water in the Global South.
Asia is definitely a major growth area for the industry, but we would add that Latin America, in particular Mexico and Brazil, are also major targets for bottled water companies.
Asian middle classes’ thirst for bottled water will pull trigger on an Eastern blue gold rush
Leo Lewis, The Times, December 17, 2009 - The relentless rise of Asia’s middle classes is poised to create an explosion in the global market for bottled water that will see the world consuming more than 280 billion litres annually by 2012.
According to sustainability analysts, bottled water will establish a permanent presence on dining tables in emerging markets despite abrupt reversals in the US and Western Europe, where recessionary thriftiness and environmental concerns have begun to bite.
The expected growth surge, which will be driven in large part by China, India and the Middle East, is expected to trigger what some are already dubbing a blue gold rush as investment money chases different ways to play the bullish consumption forecasts and back whichever brand appears likely to become the “Perrier of the East”.
The recently published Global Bottled Water report by the consultancy Zenith International said that worldwide bottled water growth in 2008 had been 4.5 per cent and predicted another 18 per cent rise over the next three years. However, others judge these figures too conservative and believe growth rates will be more like 25 per cent over the same period.
Behind the more bullish forecasts are three features of the Chinese market that suggest its growing thirst for bottled water may be even more vigorous than the one that gripped the US and Europe from the late 1990s. The first is a recent United Nations survey of tap water in 11 Chinese provinces that found more than half of all water samples contained unacceptably high levels of bacteria.
Increasing water shortages are also expected to play a big role as households stock themselves with bottled water to overcome seasonal droughts.
The biggest driver, though, is expected to be wealth. A recent report by McKinsey explored the probable economic impact of a huge Chinese middle class demanding better living standards. Bottled water was a symbol of middle class luxury in the US and Europe, and China’s middle class is expected to comprise at least 350 million people by 2011.
Brokers said there were few “pure” ways for investors to play the bottled water story in emerging markets: Danone, Nestlé, Coca-Cola and Pepsico all have significant water businesses in developing countries but are too diverse to track accurately bottled water growth.
Some believe that the bottled water story most strongly favours Thailand’s Indorama Polymer — the company poised to become the world’s secondbiggest producer of plastic bottles.
Senior investment bankers in Asia said they were also gearing-up for several years’ worth of potential deal-making as mergers reshape the landscape and the “new Nestlés and Coca-Colas” emerge from Asia as dominant players. Consolidation is expected to be a theme in India particularly, where the market is expected to grow by 100 per cent over the next five years and there are currently more than 2,000 bottled water producers.
Analysts described as “striking” the suddenness with which consumers in Europe and the US were turning back to tap water. Simon Powell, head of sustainability research for CLSA, the brokerage, said that awareness campaigns about the carbon footprint of plastic bottles and internationally transported water have successfully been waged against bottled water in the West. The result, he said, was that “at the extreme end, you have got people sloganeering that drinking bottled water is the moral equivalent of smoking or driving a Hummer”.
Mr Powell said: “It is so striking how the EU and US consumer have abandoned bottled water. Two years ago, if you asked for tap water in a restaurant, you’d practically be shown the door. Now, it’s the done thing. As bottled water emerges as a growth area in the developing world, investors are constantly going to find themselves underestimating the fashions involved.”
Thursday, December 17, 2009
Friday, December 11, 2009
Aquablue Exposed!
Back in June, the Polaris Institute released a report about the plans of a little known bottled water company to start bottling water at an old Hershey chocolate factory in the town of Smiths Falls, Ontario. The report posed some serious questions about the company and the bottled water industry.
Given that Smiths Falls has recently suffered huge job losses due to the closure of the Hershey's plant and other facilities, one of the main concerns raised in the report was that by embracing a bottled water plant the town would be relying on a diminishing industry with limited ability to create jobs. Further research conducted over the past few months showed that the company had a limited track record in operating a business, highlighted the questionable business dealings of the company's CEO and president, and revealed that the plant had not actually been purchased by Aquablue. Based on this information, our fears that the people of Smiths Falls were being taken for a ride seemed to be coming true.
This brings us to last Friday, December 7th, when the Canadian Broadcasting Corporation (CBC) aired a story about Aquablue that confirmed many of our concerns about whether or not this business would ever actually open. Since December 7th the CBC has produced 4 radio pieces, posted 4 news stories and aired two television reports that speak about many of our concerns with Aquablue.
Here are some highlights of what the CBC has uncovered:
To listen to the December 10th radio expose click here
Given that Smiths Falls has recently suffered huge job losses due to the closure of the Hershey's plant and other facilities, one of the main concerns raised in the report was that by embracing a bottled water plant the town would be relying on a diminishing industry with limited ability to create jobs. Further research conducted over the past few months showed that the company had a limited track record in operating a business, highlighted the questionable business dealings of the company's CEO and president, and revealed that the plant had not actually been purchased by Aquablue. Based on this information, our fears that the people of Smiths Falls were being taken for a ride seemed to be coming true.
This brings us to last Friday, December 7th, when the Canadian Broadcasting Corporation (CBC) aired a story about Aquablue that confirmed many of our concerns about whether or not this business would ever actually open. Since December 7th the CBC has produced 4 radio pieces, posted 4 news stories and aired two television reports that speak about many of our concerns with Aquablue.
Here are some highlights of what the CBC has uncovered:
- "When Aquablue International...announced in June that it would take over the closed Hershey chocolate factory and create a business that would employ 200 people, it was like a light at the end of a long tunnel for the residents of Smiths Falls."
- "'We're actively looking to secure all our financing, especially on the equipment side, placing an order for the equipment,' Villeneuve said.When asked whether he had all the financing, he said: 'No, not completely, not totally, yes.'"
- "One local man — who didn't want to give his name — said no one he knows believed it would actually happen. 'They think it's just a phoney setup,' he said. 'They make a lot of promises, but nothing's coming out.'"
- "several local companies have already worked removing old production lines and retrofitting the building. Between them, they are owed more than $360,000 for the work."
- "Tom Ondrejicka, who left his position as Aquablue's former marketing director six months ago, said he's still owed $14,000 from the company and he doubts it will ever reopen the Smiths Falls plant. He estimated taking over the plant would cost close to $50 million. 'That money's not there,' he said."
- The company's president, Dan Villeneuve, said there's still no lease-to-own agreement with Hershey for the factory, and Aquablue hasn't ordered any equipment, but the company is committed to opening the plant by next June.
To listen to the December 10th radio expose click here
Wednesday, December 9, 2009
State bottled water expenditures exposed
A new report from our friends at Corporate Accountability International in Boston exposes State spending on bottled water.
Read the report here
Read The Polaris Institute and CUPE Nova Scotia's 2009 report on the Canadian Government's expenditures on bottled water here
Read CAI's press release below:
Millions of Taxpayer Dollars Flow to Bottled Water
New Report Calls Such Spending Wasteful, Calls for Support of Public Water
Contact:
Nick Guroff, 617-784-4753
For Immediate Release: December 9, 2009
BOSTON, MA – States in the Northeast have set aside or spent between $228,874 and $527,107 a year for bottled water, according to a new report Getting States Off the Bottle released today by Corporate Accountability International. The states surveyed include four Northeastern states: Massachusetts, Connecticut, Vermont and Pennsylvania – all known for their high quality tap water.
The findings come as public water systems face a $24 billion annual shortfall, and during financial times where states can ill afford to be spending public dollars on such a non-essential use of an essential public resource.
“Not only is the spending patently wasteful at a time when states can not afford unnecessary expenses, but it broadcasts the absolute wrong message about our high quality tap water,” said Connecticut State Representative Richard Roy, Chair of the House Environmental Committee.
Roy is one of hundreds of public officials nationwide that are now calling for taxpayer dollars to cease flowing to bottled water. In 2008, the U.S. Conference of Mayors, representing more than 1200 mayors, passed a resolution encouraging mayors to phase out city spending on bottled water. To date, more than 100 cities have taken action to cut spending on bottled water or support public water systems as well as three states, including Illinois, Virginia and New York.
Governors and mayors are stewards of public water systems, responsible for overseeing budgets that provide the overwhelming majority of public funding for this essential public service. But the need for greater investment in these systems is growing rapidly, while public fundings for these systems languishes.
A major cause of the gap in funding has been the marketing and promotion of bottled water. Marketing campaigns, such as Nestlé’s Born Better, have convinced one in five people to believe the only place to get clean drinking water is from a bottle. And as public confidence in tap water has waned, so too has the political will to invest in public water.
“Swift action by governors to cut bottled water spending can be a strong first step in restoring public water systems and the public’s confidence in them,” said Kelle Louaillier, executive director of Corporate Accountability International.
After all, up to forty percent of bottled water sold comes from the same source as tap water. Tap water is also more highly regulated than what comes in the bottle.
Public education campaigns like Think Outside the Bottle are, however, restoring confidence in public water systems. A recent Harris Poll found that 29 percent of people switched from bottled to tap water in the last year. An overall decline in the North American bottled water market reflects this shift in behavior and attitude toward the tap. However, state action is still lagging. While each state profiled in the report has taken some steps to allocate funding towards water infrastructure – such as dedicating funds from the American Recovery and Reinvestment Act to water systems – even these steps are a drop in the bucket compared to what will be needed to close the gap.
“During these tough economic times our states need to be thinking, ‘we should only spend scarce public dollars on projects that grow the economy at large not just the bottom line for a handful of private corporations,’” said Louaillier. “Investment in public water is, in this respect, one of the wisest investments we can make.”
According to a U.S. Conference of Mayors report, every dollar invested in public water generates more than six for the economy at large in the long term.
For the full report visit www.StopCorporateAbuse.org/GettingStatesOffTheBottle
Read the report here
Read The Polaris Institute and CUPE Nova Scotia's 2009 report on the Canadian Government's expenditures on bottled water here
Read CAI's press release below:
Millions of Taxpayer Dollars Flow to Bottled Water
New Report Calls Such Spending Wasteful, Calls for Support of Public Water
Contact:
Nick Guroff, 617-784-4753
For Immediate Release: December 9, 2009
BOSTON, MA – States in the Northeast have set aside or spent between $228,874 and $527,107 a year for bottled water, according to a new report Getting States Off the Bottle released today by Corporate Accountability International. The states surveyed include four Northeastern states: Massachusetts, Connecticut, Vermont and Pennsylvania – all known for their high quality tap water.
The findings come as public water systems face a $24 billion annual shortfall, and during financial times where states can ill afford to be spending public dollars on such a non-essential use of an essential public resource.
“Not only is the spending patently wasteful at a time when states can not afford unnecessary expenses, but it broadcasts the absolute wrong message about our high quality tap water,” said Connecticut State Representative Richard Roy, Chair of the House Environmental Committee.
Roy is one of hundreds of public officials nationwide that are now calling for taxpayer dollars to cease flowing to bottled water. In 2008, the U.S. Conference of Mayors, representing more than 1200 mayors, passed a resolution encouraging mayors to phase out city spending on bottled water. To date, more than 100 cities have taken action to cut spending on bottled water or support public water systems as well as three states, including Illinois, Virginia and New York.
Governors and mayors are stewards of public water systems, responsible for overseeing budgets that provide the overwhelming majority of public funding for this essential public service. But the need for greater investment in these systems is growing rapidly, while public fundings for these systems languishes.
A major cause of the gap in funding has been the marketing and promotion of bottled water. Marketing campaigns, such as Nestlé’s Born Better, have convinced one in five people to believe the only place to get clean drinking water is from a bottle. And as public confidence in tap water has waned, so too has the political will to invest in public water.
“Swift action by governors to cut bottled water spending can be a strong first step in restoring public water systems and the public’s confidence in them,” said Kelle Louaillier, executive director of Corporate Accountability International.
After all, up to forty percent of bottled water sold comes from the same source as tap water. Tap water is also more highly regulated than what comes in the bottle.
Public education campaigns like Think Outside the Bottle are, however, restoring confidence in public water systems. A recent Harris Poll found that 29 percent of people switched from bottled to tap water in the last year. An overall decline in the North American bottled water market reflects this shift in behavior and attitude toward the tap. However, state action is still lagging. While each state profiled in the report has taken some steps to allocate funding towards water infrastructure – such as dedicating funds from the American Recovery and Reinvestment Act to water systems – even these steps are a drop in the bucket compared to what will be needed to close the gap.
“During these tough economic times our states need to be thinking, ‘we should only spend scarce public dollars on projects that grow the economy at large not just the bottom line for a handful of private corporations,’” said Louaillier. “Investment in public water is, in this respect, one of the wisest investments we can make.”
According to a U.S. Conference of Mayors report, every dollar invested in public water generates more than six for the economy at large in the long term.
For the full report visit www.StopCorporateAbuse.org/GettingStatesOffTheBottle
Monday, November 30, 2009
Coca Cola under fire for water takings in India
Local resistance movements in Mehdiganj in the state of Varanasi, India staged a protest today against Coca Cola's continued mining of groundwater for a bottling plant.
For more information see the article below or visit the India Resource Center's website.
Protest for closure of Coca Cola plant in Varanasi on Nov 30
Nvember 28, 2009
UNI (United News of India)
Varanasi, Nov. 28 -- Residents of Mehdiganj and adjacent villages will protest on November 30 to demand the closure of the Coca-Cola bottling plant in the area. Talking to reporters here today, Nand Lal Mater, the convenor of Lok Samiti -- a national alliance of peoples' movements -- said the Coca Cola company was responsible for worsening the water conditions in the area. The water conditions were set to get worse as the impacts of climate change became real in Varanasi. He said the ground water levels in the Araziline block, where Coca Cola's bottling plant is located, fell by six metres in the first six years of its operations in the area. He said the ground water level at Coca-Cola bottling plant was the lowest in the area, according to Coca Cola itself. Mr Lal added this year the water conditions in the Araziline block were some of the worst impacted in the region.
The State Irrigation department has confirmed that the majority of the tubewells that went dry in the area were in the same block. He said there was no place for Coca-Cola in Mehdiganj. ''Coca Cola must shut down its bottling plant in the area to ease the impacts of climate change,'' he added. Residents of Mehdiganj and adjacent villages will protest on November 30 to demand the closure of the Coca-Cola bottling plant in the area. Talking to reporters here today, Nand Lal Mater, the convenor of Lok Samiti -- a national alliance of peoples' movements -- said the Coca Cola company was responsible for worsening the water conditions in the area. The water conditions were set to get worse as the impacts of climate change became real in Varanasi. He said the ground water levels in the Araziline block, where Coca Cola's bottling plant is located, fell by six metres in the first six years of its operations in the area. He said the ground water level at Coca-Cola bottling plant was the lowest in the area, according to Coca Cola itself. Mr Lal added this year the water conditions in the Araziline block were some of the worst impacted in the region. The State Irrigation department has confirmed that the majority of the tubewells that went dry in the area were in the same block. He said there was no place for Coca-Cola in Mehdiganj. ''Coca Cola must shut down its bottling plant in the area to ease the impacts of climate change,'' he added.Published by HT Syndication with permission from United News of India. For more information on news feed please contact Sarabjit Jagirdar at htsyndication@hindustantimes.com
For more information see the article below or visit the India Resource Center's website.
Protest for closure of Coca Cola plant in Varanasi on Nov 30
Nvember 28, 2009
UNI (United News of India)
Varanasi, Nov. 28 -- Residents of Mehdiganj and adjacent villages will protest on November 30 to demand the closure of the Coca-Cola bottling plant in the area. Talking to reporters here today, Nand Lal Mater, the convenor of Lok Samiti -- a national alliance of peoples' movements -- said the Coca Cola company was responsible for worsening the water conditions in the area. The water conditions were set to get worse as the impacts of climate change became real in Varanasi. He said the ground water levels in the Araziline block, where Coca Cola's bottling plant is located, fell by six metres in the first six years of its operations in the area. He said the ground water level at Coca-Cola bottling plant was the lowest in the area, according to Coca Cola itself. Mr Lal added this year the water conditions in the Araziline block were some of the worst impacted in the region.
The State Irrigation department has confirmed that the majority of the tubewells that went dry in the area were in the same block. He said there was no place for Coca-Cola in Mehdiganj. ''Coca Cola must shut down its bottling plant in the area to ease the impacts of climate change,'' he added. Residents of Mehdiganj and adjacent villages will protest on November 30 to demand the closure of the Coca-Cola bottling plant in the area. Talking to reporters here today, Nand Lal Mater, the convenor of Lok Samiti -- a national alliance of peoples' movements -- said the Coca Cola company was responsible for worsening the water conditions in the area. The water conditions were set to get worse as the impacts of climate change became real in Varanasi. He said the ground water levels in the Araziline block, where Coca Cola's bottling plant is located, fell by six metres in the first six years of its operations in the area. He said the ground water level at Coca-Cola bottling plant was the lowest in the area, according to Coca Cola itself. Mr Lal added this year the water conditions in the Araziline block were some of the worst impacted in the region. The State Irrigation department has confirmed that the majority of the tubewells that went dry in the area were in the same block. He said there was no place for Coca-Cola in Mehdiganj. ''Coca Cola must shut down its bottling plant in the area to ease the impacts of climate change,'' he added.Published by HT Syndication with permission from United News of India. For more information on news feed please contact Sarabjit Jagirdar at htsyndication@hindustantimes.com
Tuesday, November 24, 2009
Nestlé Waters lays off workers in France
Dealing with a 30% drop in production since 2006 at its bottled water plant in Vittel, France, Nestlé is taking steps to shed a further 250 employees from the plant. These layoffs, or voluntary retirements, are further indication that the company's bottled water division is in trouble in Europe.
Dropping sales across Europe as well as in Canada and the United States are resulting in lower production and unfortunately, layoffs. It is difficult to reconcile job losses wherever they occur, however, job losses in the bottled water sector are indicative just how important it is for governments to start emphasizing green jobs solutions.
People will continue to turn away from bottled water and other products that are bad for the environment. An unfortunate consequence of this will be the loss of jobs in these sectors. With many of the West's public water systems crumbling, there could be many employment opportunities for these workers if our governments had the will to reinvest in our public water systems.
Nestle Waters Vosges new voluntary departure plan to affect 250 jobs
November 24, 2009
French News Digest
(ADPnews) - Nov 24, 2009 - Nestlé Waters Vosges, the French arm of Swiss water bottling company Nestle Waters, told on Monday the works council that it would launch a voluntary departure plan, involving 250 people
The new plan, which will run over a two-year period, follows a previous one for the period 2008 to 2011, which envisaged 350 voluntary departures. The company said that decision was due to the decline of the bottled water market. No lay-offs are planned.
Nestle Waters Vosges markets mineral waters under the brand Vittel and Contrex.
The output of the Vosges region site, in northeastern France, has been falling since 2006, to the current 1.2 billion bottles from 1.6 billion bottles.
Dropping sales across Europe as well as in Canada and the United States are resulting in lower production and unfortunately, layoffs. It is difficult to reconcile job losses wherever they occur, however, job losses in the bottled water sector are indicative just how important it is for governments to start emphasizing green jobs solutions.
People will continue to turn away from bottled water and other products that are bad for the environment. An unfortunate consequence of this will be the loss of jobs in these sectors. With many of the West's public water systems crumbling, there could be many employment opportunities for these workers if our governments had the will to reinvest in our public water systems.
Nestle Waters Vosges new voluntary departure plan to affect 250 jobs
November 24, 2009
French News Digest
(ADPnews) - Nov 24, 2009 - Nestlé Waters Vosges, the French arm of Swiss water bottling company Nestle Waters, told on Monday the works council that it would launch a voluntary departure plan, involving 250 people
The new plan, which will run over a two-year period, follows a previous one for the period 2008 to 2011, which envisaged 350 voluntary departures. The company said that decision was due to the decline of the bottled water market. No lay-offs are planned.
Nestle Waters Vosges markets mineral waters under the brand Vittel and Contrex.
The output of the Vosges region site, in northeastern France, has been falling since 2006, to the current 1.2 billion bottles from 1.6 billion bottles.
Friday, November 20, 2009
Nestlé is trying to buy back customers with new tv ads
Last week Nestlé launched a series of television advertisements for their 'spring water' brands of bottled water in the United States. The advertisments come at a time when the company is trying desperately to stop the slide in sales of their bottled water products in Canada and the United States. In addition, the company is trying to counter sustained resistance from local communities where they take and bottle water.
These advertisments are an obvious ploy by Nestlé to influence the public image of their products and increase flagging sales.
Watch a video here: http://www.youtube.com/watch?v=BLZnaUYsyG4
Nestlé's press release:
Nestlé Waters North America Launches “Born Better” Marketing Campaign To Help Consumers Learn About What Makes Nestlé Waters’ Regional Spring Water Brands So Unique
GREENWICH, Conn.-- (BUSINESS WIRE) -- Nestlé Waters North America’s regional spring water brands division is launching an integrated marketing campaign called “Born Better™.” The campaign shows people the small fraction of the Earth’s water that is unique enough to become one of the six regional brands for Nestle Waters’ family of 100% natural spring waters. The TV commercial celebrates where this unique water comes from, taking viewers on a journey to demonstrate how water that travels beneath the Earth where the water is naturally filtered, collects a distinct blend of minerals, and emerges as 100% natural spring water.
“Only one-billionth of one percent (of the water on Earth) is filtered naturally beneath the earth... with a distinct balance of minerals... and emerges crisp and refreshing enough to be called Poland Spring,” the TV spot’s narrator says. This selective process yields Nestlé Waters’ regional spring brands’ quality, great tasting, 100% natural spring water. The commercial, which debuted on November 2, 2009, concludes by showing footage of one of Poland Spring’s spring sources in Maine.
The campaign, which will include TV, online, print and radio, reinforces that all of the Nestlé Waters’ regional 100% natural spring water brands -- Arrowhead®, Deer Park®, Ice Mountain®, Ozarka®, Poland Spring® and Zephyrhills® -- have special origins, are naturally filtered beneath the earth, contain a distinct blend of natural minerals that impart a unique taste and are of high quality. The campaign rolls out to Arrowhead and Deer Park markets on November 9, 2009 and extends across the remaining brands’ markets in 2010.
To select its spring sources, Nestlé Waters’ natural resource managers, trained hydrologists, geologists and engineers analyze the spring, the surrounding land, soil, wildlife, as well as the water’s chemistry and how the water is replenished. Each source is managed and monitored for long-term quality and viability to help ensure the sources remain stable and abundant and the environment is sustainable. We preserve more than 14,000 acres around our U.S. spring sources, protecting the water’s quality, local watersheds, habitats and nature’s open spaces. It’s good for our 100% natural spring water and the environment.
“Our natural spring water is special. It’s a gift from nature. We work really hard to find it, and really hard to manage it,” says Tom Brennan, one of eleven natural resource managers for Nestlé Waters North America. “We’re proud to help bring it to the public to drink.”
About Nestlé Waters North America
Central to the leadership of Nestlé Waters North America Inc. is its 33-year history and single-focus on producing bottled water products. The company’s dedication to product quality, manufacturing expertise, efficient production, employee development and environmental stewardship, especially in the areas of water use, energy and packaging, has helped Nestlé Waters become the number one bottled water company in the U.S. To reach success, the company follows its credo: Respect for each other, respect for the environment, and respect for the community. To learn more, visit www.nestlewatersnorthamerica.com.
For Nestlé Waters North America
Erik Dawson, 617-939-8419
edawson@coneinc.com
Friday, November 13, 2009
PepsiCo targets India
The Delhi based Economic Times reports today that PepsiCo's 3-day meeting of the company's Board of Directors in Mumbai, discussed, among other items, increasing the presence of the company's bottled water brands in the country. PepsiCo announced earlier this year that it will double investments in its Indian beverage business in 2009. The company’s Indian beverage investments will now total $220 million.
This is not surprising given that India is being touted as one of the fastest growing bottled water markets in the world. Company's like PepsiCo, Nestlé, Coca Cola and Danone are jumping at the opportunity to exploit India's growing middle class and the reality of poor public water infrastructure.
This is good news for PepsiCo shareholders, but for the communities in India where there is no public water infrastructure, more expensive bottled water brands will do nothing to create access to something that is a fundamental human right. On the contrary, once people are forced to pay for their drinking water, the commodification and privatization of water becomes a deadly bygone conclusion.
Pepsi to fizz up image with corporate social responsibility
November 12, 2009, The Economic Times - MUMBAI: PepsiCo on Wednesday discussed plans to widen its product portfolio in India and build the brand's image around corporate social responsibility at the $43-billion beverages and snacks foods multinational's first global board meeting in India, an official familiar with the matter said.
The three-day global board meet is being attended by PepsiCo chairman and CEO Indra Nooyi, International CEO Michael D White and 11 independent directors including Novartis AGchairman & CEO Daniel Vasella and Colgate-Palmolive president & CEO Ian M Cook.
The board of directors also discussed increasing the beverages maker's presence actively in the country's health and wellness portfolio, especially in the packaged water category, said the official requesting anonymity.
The meeting is seen as an indication of the importance of India in PepsiCo's global space, officials said. The only other time the company board met outside was five years ago, in Mexico.
The meet in India is believed to be the brainchild of Ms Nooyi. "We want to show them (PepsiCo board members) the glory of India and the issues in India so that we propose solutions," PepsiCo's India-born chairman and CEO had said at a meeting organised by the United States-India Business Council (USIBC) and CII on Tuesday.
India has been identified as one of the top three markets for PepsiCo, which came into the country almost 20 years ago, she had said. The board will use the Mumbai meet to learn more about the Indian market place, the firm's business strategies here and the progress it's making in environmental, human and talent sustainability, the company said in an official statement.
"They also will take an in-depth look at how our business and product lines are evolving to address the varied and changing needs of Indian consumers," the PepsiCo India release said.
PepsiCo allocated 'region' status to the Indian operations in 2008, which meant more room for decision-making and higher resource allocation. In January this year, it integrated beverages and snacks businesses in the country under a common leadership, in line with Ms Nooyi's 'power of one' strategy followed in many world markets.
The company has already announced investments of Rs 1,000 crore ($220 million) in its beverages business this calendar to step up manufacturing capacity, market infrastructure, supply chain, product innovations and research & development.
The investment, PepsiCo India's biggest in a single year in the beverages arm, is part of the company's $500-million investment allocated for India over three years.
Pepsi has invested $1 billion in India so far. It has 41 bottling plants in the country, of which its franchisee bottling partner Jaipuria Group owns 28. The Indian subsidiary recorded an all-time high volume growth of 33-35% last year at a time when its parent was grappling with falling sales.
This is not surprising given that India is being touted as one of the fastest growing bottled water markets in the world. Company's like PepsiCo, Nestlé, Coca Cola and Danone are jumping at the opportunity to exploit India's growing middle class and the reality of poor public water infrastructure.
This is good news for PepsiCo shareholders, but for the communities in India where there is no public water infrastructure, more expensive bottled water brands will do nothing to create access to something that is a fundamental human right. On the contrary, once people are forced to pay for their drinking water, the commodification and privatization of water becomes a deadly bygone conclusion.
Pepsi to fizz up image with corporate social responsibility
November 12, 2009, The Economic Times - MUMBAI: PepsiCo on Wednesday discussed plans to widen its product portfolio in India and build the brand's image around corporate social responsibility at the $43-billion beverages and snacks foods multinational's first global board meeting in India, an official familiar with the matter said.
The three-day global board meet is being attended by PepsiCo chairman and CEO Indra Nooyi, International CEO Michael D White and 11 independent directors including Novartis AGchairman & CEO Daniel Vasella and Colgate-Palmolive president & CEO Ian M Cook.
The board of directors also discussed increasing the beverages maker's presence actively in the country's health and wellness portfolio, especially in the packaged water category, said the official requesting anonymity.
The meeting is seen as an indication of the importance of India in PepsiCo's global space, officials said. The only other time the company board met outside was five years ago, in Mexico.
The meet in India is believed to be the brainchild of Ms Nooyi. "We want to show them (PepsiCo board members) the glory of India and the issues in India so that we propose solutions," PepsiCo's India-born chairman and CEO had said at a meeting organised by the United States-India Business Council (USIBC) and CII on Tuesday.
India has been identified as one of the top three markets for PepsiCo, which came into the country almost 20 years ago, she had said. The board will use the Mumbai meet to learn more about the Indian market place, the firm's business strategies here and the progress it's making in environmental, human and talent sustainability, the company said in an official statement.
"They also will take an in-depth look at how our business and product lines are evolving to address the varied and changing needs of Indian consumers," the PepsiCo India release said.
PepsiCo allocated 'region' status to the Indian operations in 2008, which meant more room for decision-making and higher resource allocation. In January this year, it integrated beverages and snacks businesses in the country under a common leadership, in line with Ms Nooyi's 'power of one' strategy followed in many world markets.
The company has already announced investments of Rs 1,000 crore ($220 million) in its beverages business this calendar to step up manufacturing capacity, market infrastructure, supply chain, product innovations and research & development.
The investment, PepsiCo India's biggest in a single year in the beverages arm, is part of the company's $500-million investment allocated for India over three years.
Pepsi has invested $1 billion in India so far. It has 41 bottling plants in the country, of which its franchisee bottling partner Jaipuria Group owns 28. The Indian subsidiary recorded an all-time high volume growth of 33-35% last year at a time when its parent was grappling with falling sales.
Wednesday, November 11, 2009
Welcome to our Blog
The Inside the Bottle Blog is designed to provide insight, news, and analysis on the global bottled water industry and the growing backlash against this environmentally harmful product.
Watch this space for regular updates from the Polaris Institute's team which is engaged in confronting the bottled water industry.
Watch this space for regular updates from the Polaris Institute's team which is engaged in confronting the bottled water industry.
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