Bottled water boom

Every county is Ireland, it seems, has its own bottled water brand. Kerry, Galway, Tipperary..

Every county is Ireland, it seems, has its own bottled water brand. Kerry, Galway, Tipperary . . . each talking of tapping into unique sources and of offering wonderful qualities in taste and healthiness.

The Irish bottle water industry is big business, worth close to £35 million (based on yearly retail sales) and predicted to jump to £120 million within a few years if we continue to follow northern European trends.

It goes far beyond one bottled water company per county, however, as the latest running total is about 40 players in the market, separate to a significant number of water importers. In commercial terms, Ireland's native water industry has almost appeared over night. It is predicted to grow by almost 20 per cent a year.

Bottled water is not without its critics but the recent onslaught - deeming it one of the "great cons of the 20th century" - by the British Water Companies Association, representing companies supplying tap water, is among the more vitriolic. The product is "vastly over-priced" and environmentally damaging because of frequent use of plastic bottles, according to the WCA. There is little to differentiate it from tap water, especially if tap water is chilled like bottled water before consumption, the organisation claims. In blind trials, experts could not tell the difference. Supermarket customers were paying 700 times more for bottled water than for the same quality from the tap, the WCA adds.

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The British Drinking Water Inspectorate in 1996 found 99.7 per cent of tap samples passed purity tests but 2 per cent of bottled water failed the same test, meaning 10 million litres of bottled water with unacceptable bacteria levels were sold in Britain, the WCA claims. There are no corresponding Irish test figures. Both water types, however, are regularly tested.

For all that, bottle water consumption seems set to continue its sustained rise.

International consumption is often related to good sunshine and high temperatures, but for comparative purposes Ireland is often linked to Germany. Average Irish consumption of bottled water is about 12 litres per person per year. In Germany, the figure is 92 litres - hence, obvious room for growth.

Irish growth is sustained, according to Karen Coyle, marketing manager of Ballygowan - the brand more than any other that heralded the arrival of Irish bottled water - because it has happened for a variety of reasons. It started with strong sales in carbonated (sparkling) water, but still water is the new growth area and now accounts for about 60 per cent of sales.

But ask her and any one in tune with the business, and they point to doubts over tap water quality facilitating an easy move to establishing a large presence in the market place. Beyond that, however, there are pertinent "quality issues" within the bottled water industry itself. It is relatively easy and not technologically demanding to set up a spring water bottling operation. A mineral water operation is a much more onerous proposition.

John Young is sales and marketing director with New Age Beverages, which imports and distributes Evian natural mineral water. The French brand has, he claims, 5 per cent of the still market (imports account for up to 20 per cent of Irish water sales). He stands over his controversial view given in an interview with Check-out magazine that "the heritage of Irish waters is questionable".

He points to Evian's source within the Alps from a guaranteed unpolluted area where even sheep grazing is prohibited to ensure the water quality. In Ireland, soil types, farming activity and evidence of pollution in certain areas is an entirely different scenario. "In my opinion, a certain amount of filtration has to be done to many Irish waters."

With natural mineral waters such filtration is strictly prohibited but is allowed with spring water production. He does not question the quality players. "Don't get me wrong. Geoff Read did a fantastic job in establishing the Ballygowan brand in Ireland."

"Bottled waters are produced in every county in Ireland. I'm not undermining them. They are what they are; water from individual parts of the country, but they have different quality standards. Some will not get accreditation when EU mineral water classification comes into force."

Equally, Irish palates, he predicts, will become more educated about the differences between natural mineral water and natural spring water, and their preference for the quality water will emerge.

We have become a bottled water consuming nation, he says, primarily because of "Europeanisation" and "badge drinking"; consuming bottled water in social settings as a fashion statement. By any international standard, Irish tap water is generally very good, he stresses. Nonetheless, he can point to areas around the country where there has been water pollution. They are confirmed by sales of his bottled water product. "People obviously turn to bottled water. They're not sure about the tap water. Once they are comfortable with bottled water, they continue with it. There's a consistency factor."

In other cases, they consume bottled water while abroad and bring these habits home with them. Consumption then becomes more pronounced in times of water shortages and pollution scares.

Karen Coyle of Ballygowan agrees with many of his reasons for sustained bottled water growth which sees us consuming 40 million litres a year at present (her company claims to have 60 per cent of that business).

Reasons for the growing trend include increased focus on healthy lifestyle, increased emphasis on good eating (including drinking) - women in particular respond to health messages such as "you should drink eight glasses of water a day". People engaging in sport recognise the need for re-hydration and there is even a water cooler in many workplaces now.

"It has also become very unacceptable socially to drink/drive. The days of `ah go on, have another one' are over. It has become socially acceptable, particularly among men, to drink water in a pub setting." On the quality front, she points to research saying there is growing concern about Irish tap water. "I would honestly say that compared to other countries, Ireland has very high standards of tap water. But whether it's perceived or reality, we are hearing back in research, people have concerns."

Big differences in production of natural mineral waters - there are five registered natural mineral water producers - and spring water mean big differences in quality, she says. Mineral water has strict requirements on mineral content. It must emerge from the ground completely free from harmful bacteria or contaminants. It cannot be treated. Spring water can be "substantially treated".

The Bottled Water Association of Ireland represents the quality players. It has 10 companies affiliated to it. Not all are indigenous to Ireland. Its spokesman, Bernard Murphy, says the BWAI represents "people who have reached or are capable of reaching the quality standards". They must be able to stand up to a rigorous certification process.

Irish water compares favourably with Europe, he adds. "We don't knock the quality of Irish tap water. However, consumption of bottled water in some situations is due to quality concerns."

The bottled water industry, he says, is most reflected in the consumer out for a drink and having, say, a Ballygowan, just like any other beverage in a pub scene. That said, he confirms he is aware of many mothers of young babies who will only use still bottled water when making feeds. The quality factor is never far away.