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Competition in bottled water
Market segment for bottled water
Effects of bottled water on society, the economy and the environment
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Recommended: Competition in bottled water
Bottled water is the other form of privatizing water and is a profit driven business worldwide. It is important to include bottled water in the same discussion as municipal water sources mainly in looking at how developed countries are handling water issues. For Europe and the United States, both have relatively safe water and the infrastructure, which provides water to all citizens compared to developing countries. The problem however for developed countries is the bottled water industry and the continual issues with expansion. “Bottled water is second to soft drinks as the world’s most-consumed beverage, surpassing 56 billion gallons in 2010.” The bottled water industry has become increasingly popular and is an easy way to get clean drinking First, bottled water is a convenient product that is not a substitute for tap water, rather bottled water is for consumers to use on the go. Suppliers of bottled water would agree with that bottled water is not a substitute for tap water and is for convenience, however, more and more people are switching to bottled water as their main source of water. A 2003 Gallup poll showed that 74% of Americans drink bottled water, with 20% consuming it exclusively. The irony is that most bottled water comes from municipal water sources. About half of all bottled water sold in the United States today is filtered municipal tap water. Nestle is the only brand compared to Coke’s Dasani and Pepsi’s Aquafina that sells from both municipal and spring sources. Nestle Waters is the largest and most profitable bottled water firm and biggest supplier of spring water. In North America, Nestle profits of $4.2 billion in 2009. It owns 15 water brands and operates 50 spring water extraction sites in 15 U.S. states.” The reason the bottled water industry is getting so large and profitable business for corporations is in part with campaigns targeting the positive aspects of bottled water, while altering the public’s perception of tap water at the same Nestle owns a bottling plant that residents tried to derail, however by the time the public became aware of the companies interests it was too late. Fryeburg is a rural community with 3,083 residents and have pursued actions attempting to drive out Nestle. Enough though Nestle invests $430 million in the economy of the state of Maine, the water belongs to the town and its people according to residents. In the state of Maine the laws allow Nestle to have absolute dominion , meaning whoever owns the land has rights to the water beneath it. Other than the price of the permits and cost of land, Nestle is extracting water essentially for free. A few residents are concerned about Lovewell Pond, citing deterioration and a green slime that is new. Mainly, the residents of Fryeburg are worried about Nestle extracting too much water causing the depletion of aquifers. Jim Wilfong started a group called H20 for Me fighting for the conservation of water. The legal battle between the residents of Fryeburg and Nestle still continues over a decade later in 2016. As of right now, Nestle is still extracting water and the residents of Fryeburg are waiting on the Maine’s Supreme Court decision on if Nestle is pumping too
Going forward, the Court of Appeal’s decision in Garetson Brothers v. American Warrior will stand for the proposition that Kansas water laws mean what they say. Rather than consider any economic considerations, the only relevant factors will be who has the senior water right and whether an impairment has occurred. As groundwater becomes scarcer in Kansas, senior water users will likely find that Kansas laws will serve to protect their use over any junior water
Maude Barlow’s “Water Incorporated: The Commodification of the World’s Water” gives a voice to a very real but vastly unknown issue: the privatization of water. I refer to it as vastly unknown because it wasn’t until this article that I was even aware such a power struggle existed. Barlow first introduces startling statistics, meant to grab the attention of its reader. Once she has your attention, she introduces the “new generation of trade and investment agreements.” (306) This includes referencing many different acronyms such as, FTAA, NAFTA, GTAA and WWF. FTAA, NAFTA, and GTAA are the villains of this story. Simply put, the privatization of water would end in socioeconomic turmoil and dehydration worldwide.
Zhang, J. (2009, July 13). More Scrutiny Urged for Bottled Water . Retrieved April 19, 2014, from http://online.wsj.com/news/articles/SB10001424052970203577304574276473594279310?mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052970203577304574276473594279310.html
In Milagro, located in New Mexico where water is a high class amenity and questionable developer named Ladd Devine has deceived a flashy resort. The plan was to funnel off all the water from the neighboring lands and crop-fields. Luckily a repairman and farmer named Joe Mondragon accidentally tampers with a valve for water set aside for major-grade companies. Which unwittingly sparks a small scale water rights war between the elite and
Wealthy individuals and large corporations are purchasing the water rights for some of the US and even the world’s biggest aquifers. Among these individuals is oil tycoon T. Boone Pickens who believes water or “blue gold” is the new oil. Located in the Texas panhandle, Roberts County sits above the biggest underground aquifer in the US. The Ogallala Aquifer stretches from the Texas all the way up into South Dakota. Pickens has been buying up land and is now the largest landowner in the county with some 68,000 acres. As well as the water rights that allow him to personally pump up to half of the Ogallala Aquifer which he plans to sell back to residents and nearby counties in need, for a profit of course. “Pickens owns more water than any other individual in the U.S. and is looking to control even more.” Water is finite and shortages are sure to come in the future. Water just like any other scarcity will make for an excellent investment opportunity. Pickens and Mesa Water are acquiring a sufficient amount water rights and political power to turn America’s heartland into a dustbowl.
Together, the passages “Business in a Bottle”, by Cynthia Barnett and “Selling Bottled Water: The Modern Medicine Show”, by Peter Gleick, portray how bottled water has taken a superficial and deceptive image due to false advertising and pseudoscientific claims by greedy bottling companies, whose purpose is to take advantage of a free resource in order to make millions in profit; destroying the environment as they go. Both passages expose the bottling companies’ manipulative tricks, in order to bring awareness and open the populations’ eyes to the lies they have been fed for many years, however the authors utilize distinct styles to achieve their goal. Barnett focuses on specific bottling companies’ data and incorporates analysts for support,
Water has long been a controversy in countless places worldwide and Colorado is no exception. The water rights in Colorado involve different stages within the Prior Appropriation Law; the senior and junior water rights. Senior water rights are privileges that were the first to be issued on unappropriated streams in Colorado and are to be filled before the junior water right holders. Junior water rights are similar to senior water rights, but are filled after the senior water holders take their allotted amount (Wolfe Prior Appropriation Law). The water in Colorado is just that; Colorado’s water, owned by the people and restricted by the state. However, Colorado is required by law to send over 30 million acre – feet of water to seven western states (“Missouri River”). An acre – foot is “The quantity of water required to fill one acre with one foot of water and is equivalent to 43,560 cubic feet or 325,850 gallons” (“Missouri River”). The State enforces all water laws in Colorado even though they are not straightforward and are riddled with loopholes. These water laws came into effect “As early as 1879” (Hundley, Jr. 53). In the laws, there are even more constraints and idiosyncrasies including; owning ground water, owning surface water, senior rights and junior rights, and the use and reuse of rainwater or graywater. Water users in Colorado need to familiarize themselves with the laws and regulations involving water in order to receive the allotted water and the reasoning behind that number.
Both Barnett’s claim that bottled water is not better than tap water (139-141) and Gleick’s claim that specialized water is not better than tap water (118-120) demonstrate that companies’ claims are unreasonable. Furthermore, consumers assume bottled water is better than tap water because they have the impression that tap water is dangerous because of the tap water incident in “2003 [where] 400,000 people [got] sick” from drinking tap water. One may wonder whether companies use this incident to remind consumers how dangerous tap water is with the way Gleick presents bottled water companies even after the tap water is taken care of. Because Gleick portrays the deception of advertisement from bottled water businesses, he makes it clear that Barnett hints that they are taking advantage of the case by informing consumers that their water is safer than tap water in an indirect, subtle way. However, Barnett ensures readers that tap water are safe to drink again after the incident by proving that both bottled water and tap water are equally safe to drink with a study she provides: The testing from Florida Trend (magazine brand) concludes that Publix brand bottled water and tap water both contains “0.020milligrams per liter [of] THMs (trihalomethanes)”, a “common byproduct…linked to increased risk of cancer” (139-140). Although other bottled water brands may not have
After much research, there is no doubt that trend is a consistent factor that drives Voss water ahead. Due to this, the essay will focus on the social and environmentally part of Pestle analysis and how legal factors are interfering with the quality and credibility of the brand.
Many argue the fact that commercialized labeled brands of bottled water have offered choices to people that tap water does not. Although most people often rely on these particular brands of bottled water, most are unaware that some companies are simply using unfiltered-tap water at a much higher charge. Bottled water is averagely sold either individually or in packs of 24 or more at your local grocery store ranging from three to five dollars. This is a high cost not just to one’s pocket but to our waste and
Water privatization is putting water rights into private corporations. In developing countries privatization is acceptable but in developed countries water should be left to the public. In the developed countries like the US, France and Europe water is controlled by the public and private companies or corporations. Water remains a function of municipal government in 90% of cities around the US and Suez Environment and Veolia Water are the top two water companies.2 The consensus throughout the US is that water should be the publics responsibility because water in privately owned water facilities is more expensive and in some cases below standards and less desirable.6 People in the US want to keep their water in their hands because they feel better knowing that people like them control and consume the same water as they do and not people who do not. Putting water in the control of private companies has some less desirable effects on the public. These organizations have a profit motive with incentives that cause them to avoid conservation and efficiency measures since profits depend upon volu...
they spend fortunes on advertising to convince Americans that bottled water is the drink of choice for
The cost involved in water bottles is inconceivable to many. Bottled water costs 240 to 100,000 times more than tap water, which can be brought to your house for just pennies per day; based on city water usage, 4,787 bottled waters could be filled with tap water for $2.10, if each bottled water costs one dollar, you would pay 2,279 times more than if a single bottle is refilled. If tap water cost as much as bottled water, a monthly water bill would be around nine thousand dollars. By virtue of this, society is unaware of the fact that by replacing water bottles with tap water, many countries with economical dilemmas could be less strained.
In short, the industry extremely focused on preventing and testing the presence of bacteria. Therefore, bottled water often represented “somewhat of a novelty or prestige product” in the United States, and it gave a perception to their consumers that they need to purchase bottled water in order to stay young and healthy. Because the bottled water industry seemed very attractive and profitable, as mentioned above, there were many competitors, too. Total nine bottled water producers were mentioned in the case study, but four key major rivals were Coca-Cola, PepsiCo, Nestle, and Groupe Danone. However, there was no one buyer that accounts for a significant fraction of overall market demand. Distribution varied depending on the producer, but most distribution channels included food stores, supercenters, supermarkets, discount stores, and wholesale clubs. Because bottled water had an easy availability, consumers in the United States were able to find it anywhere the food was also
From a business point of view, it seems so ignorantly deceptive, yet it is absolutely genius. With a little marketing, bottled water has become a huge success. However, it is killing the environment and the water is usually comparable to tap water regardless. The “The Story of Bottled Water” is a very well-made short film that takes viewers into the dark world of manufactured demand.