Carbon Foot Print - A Serious Alarm to the Bottled Water Business !

Yes, It is damn serious !

(Listen to the Podcast)

If you are thinking of a venture into Water Business, and if you are thinking in terms of establishing a PET bottle based Water Business, you really need to re-think. It has become a serious thing. Indeed !

Why am I saying so ?

Considering the growing concern over Carbon Foot Print, the giants have already started facing issues. Look at some disturbing results :-

Danone, the makers of Evian, Coca Cola, Nestle is observing drop in its sales. Various towns have already started banning the bottled water, not just in the West, but also in India. The Environmental Movement is definitely challenging the Water Makers, and we can easily see the steps they are taking, which can produce some viable solutions to you 

What is happening in the world ?

1) Danone, Pepsi & Coke have already started experimenting with Aluminium Cans.

(The economics need to be worked out.)

2) Pepsi has been investing heavily into Soda Stream, the Domestic Soda Maker. It's an American Trend, not that there are no Sodamakers in India, but has a very select market in place of Drinking Water. There is a brand in India called Mr Butlers , who produce these machines. 

(Pepsi wants to cash more on the value addition, in the CO2 market, which gives it more money.)

3) Pepsi has also come out with a Brand called Drinkfinity, which are actually Pods which contain Flavours from Pepsi, and use Tap Water as the base drink again.

(Again, cashing on the CO2 Market)

4) Coke,Nestle & Danone are going to try introducing Water Purifier with options to add Soda flavours.  

(Again wanting to make more money from the flavours, while not loosing the base water usage)

5) Danone is also willing to use the Water Baloon thing in place of PET Bottles whereas Nestle is experimenting with Paper Bottles.

(Are the baloons same like the water balls ? , About 100% bio degradable Paper Bottles, Nothing much to find.)

This whole information has been taken out from this source article :-

(https://www.ippmedia.com/en/node/70757)

My Observations 

(Besides those in the italics in front of the topics above)

(A) Keep CSD in your Product Mix - Money is there !

The Brands mentioned actually started from Colas, the CO2, and the essence, which is their prominent money making vehicle, they are smartly investing more in the segment having understood the bitter future. This might be the reason why Coca-Cola (if really) is looking to sell out 3 of their plants in India.You can read a separate article written on this. Strategy : De-Invest from future loss making ventures & invest in more profit making products.

# Tip for Indian Water Business Enthusiasts : Start thinking of CSD option : Carbonated Soft Drinks - A better value addition, take step right in time. Should be a great addition to your product mix.

(B) Think of Domestic Purifiers : future trend ...

They have also sensed the importance of Domestic Purifiers, and have started thinking of monetizing with the ready-made tap water.

# Tip for Indian Water Business Enthusiasts : It's also a viable option to veture into Domestic Water Purifiers. See the market on Amazon.

(C) Water ATM will be a right step to enter into !

Water ATM is not visible in any of their Business Models of future. Can't wait to see Bisleri, Aquafina, Kinley Water ATMs flood the towns of India.

# Tip for Indian Water Business Enthusiasts : Take step in Time. This IS THE time to enter into a Water ATM business.

Get trained in Water Business, Attend Training Sessions created for Business Owners eyeing opportunity in this field.

In House Glass Bottling Plant for Own Consumption

Water Bottling Plant for own consumption 

Many Hotels have their own consumption for their guests at their hotel. Currently, they do have arrangements with brands like Bisleri, Qua, Veen, Himalaya, Aquafina etc. This depends upon which type of the hotel is. If your hotel belongs to the Star Category business hotel; then it serves as an excellent branding opportunity + saving earning a good amount of money. 

Is it really worth it ?

If you have a good amount of place + consumption (more than 5000 LPD) , then can be a sensible decision. However, it's still better to find out an existing plant who will do it for you on your name. This way, he takes all the production troubles, while you focus on en cashing your brand name.

Even if you don't have place, but just good consumption, the exercise is really worthwhile.

Is it allowed ?

100% allowed. That's what even the biggies are doing. It's called as 3rd party Production method. You just need to create certain legal structure for that & done.

Glass Bottled Water elevates your image !

Water bottled in Glass has a different brand value to score over those bottled in PET. You can listen to some of my Podcasts where I have shared some of my thoughts about Glass Bottling.

It is Mineral Water, or Packaged Drinking Water, What is it exactly ?

Conversation at a Stall near Railway Station

"Ek Bisleri dijiye" ... a shout at the stall. "Please Give me a Bisleri "

"Are Bhai Bisleri nahi, Mineral Water Kaho Yaar" ... a Moderation "Say Mineral Water man, not Bisleri"
" Abey ye to Packaged Drinking Water Hota Hai, Mineral Water to Bahut Mehenga Hai" Another Edit "Dear, this is Packaged Drinking Water, Mineral Water is very expensive"

People call it different ways ...

For masses, when they buy Sealed, Bottled Water at a stall or shop, they believe they are buying better water, safe water. The trend in India as started by Bisleri, hence they have earned a repute of a brand. But it is not what the BIS (Bureau o Indian Standards) call it. 

BIS recognizes just 2 types

On called as Packaged Drinking Water (Like the 20 Rs Bisleri) and Packaged Natural Mineral Water (Like the 65 Rs. Qua). I have discussed about this through many QnA on Quora + also a special article on What is Mineral Water exactly

Recording of an earlier Webinar on this subject

Whenever you are buying a Bottle ..

• Check the ISI mark on the Bottle (Usually on the Label)
• Also Check the Date of MFG ( On the Bottle Neck)
• fssai Mark

Check the Video :-

If the Bottle doesn't have that, is it fake ?

Not necessarily. Sometimes, many companies produce Vitamin Water like the TATA Water Plus. Or Smartwater by Pepsico. These are approved by the fssai, but not come under BIS premise. These companies use Packaged Drinking Water as the base,raw water, and then prepare their Final product by adding permitted ingradients into the same. Usually this process is carried out at a BIS approved Packaged Drinking Plant itself. See an article on Tata Water Plus.

We also take this subject in details at the Training Sessions. Here is a small glimpse of the same, recorded during one of the training sessions : Recorded Audio

Why is Coca Cola Selling some of its Beverage Plants ?

Is Coca Cola really selling some of its units in India ?

(Listen to the Podcast)

Coca Cola, the global giant beverage producer is all set to sell off its 3 production units, according to this news . It's a good profit making (Last year 373% profit rise) venture for them. Still why are they selling these ? Some reasons might be ...

• Coca Cola is a Global multinational. The costs are much higher compared to the local franchisees, the Indian companies.
• Their Essence selling business (the real secret of Coke) might be having better potential than bottling, which they might be thinking of expanding
• Having run own units for a considerable time, it might be the right time to switchover to franchise model, in a phased manner.
• They may be willing to put the risk of the Plastic Ban (If it comes truely) on the franchisors.

Please share if you think something beyond this.

Is a Franchise really profitable ?

If you scroll below in the post (above mentioned), you will notice a comment wherein the commenter says that Coca Cola Franchisee ultimately starts his own version of Coke within the next year of operation

Franchise or own plant, any plant will close down if not run properly. That's why many Packaged Drinking Plants close their operations in 1-2 years. For a Plant to run (rather any business) profitable, it needs careful investment planning & ROI calculations (Return on Investment). If you do this perfect in 1st place, you won't need to close down. Who will do it with a well established brand like Coca Cola ?

We conduct detailed Plant Cost Calculation Session during training 

During our Live Trainings, or in our Home study Course we have a special session on the Plant Cost Calulcation which prompts the investor as to what will be the costs & the ROI. Listen to a sample recorded session here. And do undertake training in case you are thinking of setting up your water business.