Good News Bad News: Bottled-Water Price War Heats Up as Demand Falls

September 1st, 2009
in

The Wall Street Journal recently reported: "Bottled-water makers have stepped up a months-long price war this summer to win back customers who have turned on the tap to save money and reduce environmental waste."

First reaction - great news, people are paying attention (and maybe the change in the economic circumstances of millions has helped change their thinking about the practicality of bottled water)!  Second reaction - oops, lower prices will mean higher consumption.  

We're winning the argument so they are fighting back in the smartest way possible, or at least what appears to be the smartest way possible.

But remember, even though cheaper bottled water will seem more attractive, lowering prices returns water to being a commodity.  And tap water as a commodity still wins hands down on any comparison of price per liter or quart or gallon (or sip).  A good old fashioned price war also highlights the real economic argument: it's time to rethink how we build our economic analysis.  We need to include formerly externalized costs (the environment which is not a "free" resource, a "free" garbage dump, or a "free" source of energy for humans to exploit), we need to take into account all the costs, not just economic, but health, environmental, and carbon, of all our actions.  In any real economic analysis, one that includes all the true costs, tap water wins over bottled water hands down, no questions allowed.

Next entry: reading list for social and economic change.  Visit www.writerscast.com to hear my interview with Gus Speth, author of "The Bridge at the Edge of the World."  It's a book everyone should read!

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well, there always will be

Submitted by cv writing services (not verified) on Sun, 05/30/2010 - 13:17.
well, there always will be either good or bad news, so don't bother!

comments

Submitted by carpet padding (not verified) on Wed, 12/16/2009 - 10:47.
Bottled-water makers have cut prices to win back consumers who have switched to tap water as a way to save money and reduce waste, reports the Wall Street Journal.Aquafina (owned by PepsiCo) and other companies have drastically cut the price of multipacks to less than 25 cents a bottle in some cases. Overall, bottled-water brands sold for an average of $1.35 a gallon in the U.S., down from $1.94 in 2001, according to Beverage Marketing Corp. Analysts believe prices may fall further next year.Bottled-water sales nationwide fell 6% to $7.6 billion for the year ended July 12, according to floor pillows Information Resources Inc. Particularly hard hit have been single-serve bottle sales, hurting profitability."The bottling companies rely on single-serve bottles sold in vending machines and coolers for much of their profit margin on bottled water, but with those sales down, they are also struggling to make water profitable," writes Valerie Bauerlein for the Wall Street Journal.Beyond its higher cost relative to tap water, bottled-water has also suffered from a poor environmental reputation and concerns over quality. Green groups have noted that tap water faces more stringent health and safety controls than bottled-water and generates substantially less waste.

Bad news

Submitted by thoumas (not verified) on Thu, 09/03/2009 - 05:30.
it is really bad news the prices of water bottle in increased ,It is basic need and specially in summer every one carried with him self a water bottle , i just still remember last month in our security+ exam questions few of student daily bring water bottle, after few days i notice they are just using electric water cooler i ask the reason , then they said now it is not affordable because water bottle's prices increased. so i will just say it is a very bad news because for our safety and health we need pure water and if pure water is out of reach so every one knows the result.