IBWA Bottled Water Reporter Dec 2010-Jan2011

W W W. B O T T L E D W AT E R . O R G

BWR

BOTTLED WATER REPORTER | DEC 2010 / JAN 2011

A PUBLICATION OF THE INTERNATIONAL BOTTLED WATER ASSOCIATION

ALSO IN THIS ISSUE

What New Leaders in DC and the States Mean for You

How to Calculate Your Environmental Footprint

What to do With E-Waste

VOL. 51 • NO. 1

COLUMNS GOVERNMENT RELATIONS

24 | 2010 Midterm Elections: A Republican Affair As newly elected legislators head to Washington, D.C., and the state capitols, IBWA members have a tremendous opportunity to educate them about the bottled water industry.

COMMUNICATIONS

26 | Bottled Water is Very Sustainable

and Claims Under Review

Discover how every aspect of bottled water production and distribution satisfies the need of thirsty consumers for an environmentally sustainable beverage product.

TECHNICAL UPDATE

28 | PET Recycling Rate Increases for Sixth Year PET packaging is clear, strong, safe, sustainable, versatile, and convenient—which makes it a favorite packaging material with the food and beverage industry and consumers.

VALUE OF IBWA MEMBERSHIP

TABLE OF CONTENTS

32 | All About the Source Bottled Water Reporter talks with Callaway Blue Spring Water’s Ken Calloway about his experience as an IBWA member.

10 | Labels and Claims Under Review In October 2010, the Federal Trade Commission announced its intention to formally update its “Green Guides” for the first time in more than 10 years. The revisions seek to make the process of verifying environmental claims easier for businesses and marketers to understand, address changes that have arisen in the marketplace, and help marketers not make deceptive environmental claims. How will these guides change the way the bottled water industry markets their products? Read this article and find out.

15 | IBWA’s Life Cycle Inventory Tool: Six Things You Need to Know Although the term “environmental footprint” quickly became a household term, the task of calculating it is daunting for most businesses. IBWA reveals how its Life Cycle Inventory Tool will help members calculate the environmental impact of their bottled water products.

19 | Don’t Throw Technology Away Electronic devices help us communicate, garner information, and entertain ourselves with speedy efficiency—but as soon as there’s a technology upgrade, we’re quick to toss aside our beloved hi-tech gadget for the next great electronic device. So, what should we do with the old technology?

DEPARTMENTS CHAIRMAN’S COMMENTARY ...............................2 PRESIDENT’S MESSAGE ......................................4 WATER NOTES ....................................................6 CEU QUIZ .........................................................30 ADVERTISERS.COM...........................................31 CALENDAR .......................................................31 NEW MEMBERS ................................................31

CONNECT WITH IBWA

BOTTLED WATER REPORTER, Volume 51, Number 1.

Published six times a year by The YGS Group, 3650 West Market Street, York, PA 17404, for the International Bottled Water Association, 1700 Diagonal Road, Suite 650, Alexandria, VA 22314-2973. Tel: 703.683.5213, Fax: 703.683.4074, www.bottledwaterreporter.org.

Subscription rate for members is $25 per year, which is included in the dues. U.S. and Canadian subscription rate to nonmembers is $50 per year. International subscription rate is $100 per year. Single copies are $7. POSTMASTER: Send address changes to Bottled Water Reporter, 1700 Diagonal Road, Suite 650, Alexandria, VA 22314-2973.

IBWA

International Bottled Water Association ULLOIKXY

INGOXSGTÙY"IUSSKTZGX_ SHOWING SUSTAINABILITY

Chairman Scott Hoover, Roaring Spring Bottling Vice Chairman Philippe Caradec, Danone Waters of America Treasurer William Patrick Young, Absopure Water Co., Inc. Immediate Past Chairman Stewart Allen, DS Waters

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For some time now, the bottled water industry has battled against criticism from environmental activists, mainly because of perceived environmental issues with one of our products’ packaging materials: plastic.

But that’s a misguided and perplexing assault—as plastic is used in almost every consumer product industry. Our industry’s record shows that bottled water companies are good stewards of the environment, and we continue to look for ways to make our packaging even more “sustainable.”

But, what is “sustainable packaging”? hat’s not an easy question to answer and there are many different views on the subject. One organization, the Sustainable Packaging Coalition (www.sustainablepackaging.org), defines sustainable packaging as follows: t t t t t t t t

beneficial, safe, and healthy for individuals and communities throughout its life cycle able to meet market criteria for performance and cost sourced, manufactured, transported, and recycled using renewable energy able to maximize the use of renewable or recycled source materials manufactured using clean production technologies and best practices made from materials healthy in all probable end-of-life scenarios physically designed to optimize materials and energy effectively recovered and utilized in biological and/or industrial cradle-to-cradle cycles.

Obviously, meeting all of those requirements is a very tall order—for any product on the market. And, interestingly, a recent consumer survey revealed that 89 percent of consumers have no idea what sustainable packaging is. he survey, “My Views on Environmentally Friendly Packaging,” conducted by the marketing firm he Sage Group, collected views from U.S. citizens aged 17 and older and found that, regardless of age, consumers view recycling as the key component of good environmental practices. “My job is to recycle; yours (the manufacturer) is to make the packaging recyclable,” the survey found, as reported in Packaging Digest.

So, perhaps the lesson for the bottled water industry is this: We should continue to do what we do—be good environmental stewards and continue to find ways to lessen our impact on the planet. But, just as important, we need to find creative ways to educate our consumers, legislators, and the media about our environmental efforts.

Stewart Allen, DS Waters Peter Baker, Vermont Pure Springs, Inc. Joe Bell, Bell Sales, Inc. Page Beykpour, CG Roxane Philippe Caradec, Danone Waters of America Marty Conte, Diamond Springs Water Doug Hidding, Blackhawk Molding Co. Scott Hoover, Roaring Spring Bottling Dan Kelly, Polymer Solutions International Greg Nemec, Premium Waters, Inc. Steve Raupe, Ozarka Water and Coffee Service Chris Saxman, Shenandoah Valley Water Co. Bryan Shinn, Shinn Spring Water Company Robert Smith, Grand Springs, Inc. Dimitrios Smyrnios, Nestlé Waters North America Breck Speed, Mountain Valley Spring Company, LLC Ray Steed, CCDA Waters, LLC Jeffrey Vinyard, Crystal Springs Bottled Water Co. Lynn Wachtmann, Maumee Valley Bottlers, Inc. William Patrick Young, Absopure Water Co., Inc.

OH]G"K^KI[ZO¥K"IUSSOZZKK Chairman, Scott Hoover, Roaring Spring Bottling Stewart Allen, DS Waters Philippe Caradec, Danone Waters of America Marty Conte, Diamond Springs Water Henry R. Hidell, III, Hidell-Eyster International Dan Kelly, Polymer Solutions International Chris Saxman, Shenandoah Valley Water Co. Dimitrios Smyrnios, Nestlé Waters North America Breck Speed, Mountain Valley Spring Company William Patrick Young, Absopure Water Co., Inc.

IUSSOZZKK"INGOXY Communications Committee Mick Gunter, Primo Water Corporation William Patrick Young, Absopure Water Co., Inc. Education Committee Marty Conte, Diamond Springs Water Glen Davis, Absopure Water Co., Inc. Environmental Sustainability Committee Philippe Caradec, Danone Waters of America Breck Speed, Mountain Valley Spring Company Government Relations Committee Shayron Barnes-Selby, DS Waters Robert Smith, Grand Springs, Inc. Membership Committee David Carlile, 3M Purification, Inc. Dave Muscato, Nestlé Waters North America Small Bottler Resources Committee Bill Saxman, Shenandoah Valley Water Co. Bryan Shinn, Shinn Spring Water Company State and Regional Associations Committee Ross Rosette, H2Oregon

Scott Hoover IBWA Chairman 2

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Supplier and Convention Committee Brian Grant, Pure Flo Water, Inc. Dan Kelly, Polymer Solutions International Technical Committee Andy Eaton, MWH Laboratories

IBWA

International Bottled Water Association

BOTTLED WATER REPORTER is published for:

VXKYOJKTZÙY"SKYYGMK THE SUBSTANCE BEHIND OUR SUSTAINABILITY

International Bottled Water Association 1700 Diagonal Road, Suite 650 Alexandria, VA 22314-2973.

Tel: 703.683.5213 Fax: 703.683.4074 www.bottledwater.org

IBWA STAFF President Joseph K. Doss jdoss@bottledwater.org

Environmental sustainability remained a hot topic throughout 2010, and it’s an easy guess that consumer and activist pressure for bottled water companies to be green will continue in the New Year and for many years to come.

In light of that, we continue to devote an entire issue of Bottled Water Reporter to issues concerning environmental sustainability. Inside this edition, you’ll find several interesting articles about issues that could impact your business.

Of particular interest is “Labels and Claims Under Review,” an article explaining how proposed changes to the Federal Trade Commission’s “Green Guides”—set to be released in early 2011—will affect the way businesses market their products with regard to environmental claims. Readers should pay careful attention to the section suggesting that consumer access to recycling facilities will be a factor in a product’s perceived environmental friendliness. hat obviously will have direct impact on the bottled water industry as U.S. communities continue to increase public access to curbside recycling and provide more public space recycling.

In “IBWA’s Life Cycle Inventory Tool: Six hings You Need to Know,” we bring you a how-to guide for using IBWA’s Life Cycle Inventory (LCI) tool. I’ve heard many members mention they feel less than confident in their ability to conduct an LCI for their companies. However, this article—together with testimonials from two IBWA member companies—will provide the confidence you need to use this valuable tool. he New Year brings with it 109 new members to Congress. As mentioned in this issue’s Government Relations column, the time is ripe for all IBWA members to reach out and educate those new legislators about the bottled water industry. IBWA staff is happy to help you connect with your newly elected state and federal legislators—just contact IBWA and let us know you are ready to participate in our outreach efforts.

As always, IBWA is ready to support our members in anyway we can in 2011. Please let us know how we can help.

Vice President of Education, Science, and Technical Relations Robert R. Hirst bhirst@bottledwater.org Vice President of Communications Thomas Lauria tlauria@bottledwater.org Vice President of Government Relations Daniel Felton dfelton@bottledwater.org Chief Financial Officer Michelle S. Tiller mtiller@bottledwater.org Director of Conventions, Trade Shows, and Meetings Michele Campbell mcampbell@bottledwater.org Director of Science and Research Tamika Sims tsims@bottledwater.org Manager of Publications and Special Projects Sabrina E. Hicks shicks@bottledwater.org Education and Technical Programs Coordinator Dimeko Shaw dshaw@bottledwater.org Executive Assistant LaKesha Gathers ibwainfo@bottledwater.org Bottled Water Reporter Layout and Design The YGS Group 3650 West Market Street York, PA 17404 Tel: 800.501.9571 Fax: 717.505.9713 www.theygsgroup.com Editor Sabrina E. Hicks shicks@bottledwater.org Graphic Designer Jennifer Tillmann jennifer.tillmann@theygsgroup.com Advertising Sales Stephanie Bunsick stephanie.bunsick@theygsgroup.com

Joe Doss IBWA President

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WATER NOTES

IBWA PRODUCT

Ge t Your Fa c t s H e re

BOTTLED WATER MATTERS

Fa ll Fun Wit h Bot t le d Wat e r Phot o Cont e st his fall, IBWA’s pro-bottled water campaign Bottled Water Matters ran its firstever “Fall Fun With Bottled Water Photo Contest.” Participants submitted photos showcasing bottled water as part of their fun fall activities for the chance to win a free Kindle 3G. Submissions included shots of bottled water lovers drinking their favorite brand while decorating for Halloween, helping underprivileged children, enjoying college campuses during autumn, enjoying bottled water at the beach, and even spending time with Mickey and Minnie at Disney World. he winning photo, pictured above, was titled 6

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“Refreshing.” Contest winner Fred Telegdy shot this photo of young football player Jordan Young taking a time out to hydrate during a football game. Mr. Telegdy is from Charlottesville, Virginia. He works for the University of Virginia and also owns a web design firm, Kafenatid Web Design. After a voting period of one month, Mr. Telegdy was declared the winner after receiving 1,720 votes. he photo contest was primarily promoted on Facebook.com, and a link to the contest was also posted on BottledWaterMatters.com. hrough the use of social media, Bottled Water Matters gained more than 400 new supporters to our

Facebook profile when visitors logged in to select their favorite bottled water photo.

Visit www.facebook.com/ bottledwatermatters to find out about more contests and the latest bottled water industry news—and “like” us while there.

Only 0.64 % of U.S. landfill waste in 2007 was bottled water packaging.

Source: Life Cycle Inventory of U.S. Bottled Water, Final Report, by Franklin Associates

The IBWA Environmental Sustainability Committee has prepared a reference document called the “Environmental Fact Book,” which presents environmental information members can use to help answer questions from the media, legislators, consumers, and bottled water critics. IBWA members can also use the presented facts in their company’s marketing or other information documents.

Topics covered in the book include water withdrawal amounts for various U.S. industries, Environmental Protection Agency Cap and Trade programs, White House climate control policies, federal energy conservation initiatives (e.g., U.S. Department of Energy’s “Save Energy Now,” Green Suppliers Network, and Climate Leaders), and greenwashing.

The “IBWA Environmental Fact Book” is updated regularly to ensure that the information is current.

IBWA members can download the PDF by logging on to www.bottledwater.org and selecting the Technical tab under the Members Menu.

Lastly, click the Technical Publications & Video button to see a list of available IBWA publications.

WATER NOTES

PARTNERSHIP

KDYC"cpf"Gctvj;33"Rtqoqvg" Rncuvke"Dqvvng"Tge{enkpi IBWA and Earth911.com have formed a sponsored partnership to encourage increased and more extensive recycling of all empty plastic bottles.

For the next year, IBWA will sponsor Earth911.com’s Plastic Bottle Section (http://earth911.com/ recycling/plastic/plasticbottles/). IBWA’s sponsorship includes contribution of research findings, video presentations, and related information to help consum-

ers better understand how to recycle these valuable materials.

Earth911.com hosts the nation’s largest and most comprehensive resource for consumer recycling information through its Local Recycling and Proper Disposal Directory. he Directory includes detailed data on how and where to recycle more than 240 products throughout 127,000 locations and programs in North America.

“Proper disposal of PET plastic bottles has become increasingly important,” said Earth911.com President Corey Lambrecht. “We are excited to offer IBWA an opportunity to better reach and inform consumers about effective ways to participate in local recycling for plastic bottles,” he said. “he Earth911.com/ IBWA partnership will advance bottled water companies’ on-going efforts to provide effective solutions for proper, post-consumer recycling for all plastic bottles, including empty plastic water bottles,” said Joe Doss, president and CEO of

IBWA. “his new partnership with Earth911.com gives our industry a valuable new way to communicate to consumers and provide them with education about the importance and effectiveness of plastic recycling,” he said.

“According to the U.S. EPA, bottled water containers make up 1/3 of 1 percent of the U.S. waste stream,” Doss explained, “So for an effective solution to concerns about landfills, it is important to capture the containers of the thousands of products packaged in plastic, including bottled water containers, but extending far, far beyond it.”

IBWA CHARITY

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the amount small pack and HOD bottled water industries contribute to the total greenhouse gas emissions in the United States.

On November 23, 2010, Virginia’s First Lady Maureen McDonnell kicked off the hanksgiving holiday by accepting donations to the Central Virginia Food Bank from IBWA Member Diamond Springs and Walmart. he contributions of the day totaled 9,392 pounds of food and water.

Katie Terry, Diamond Springs’ marketing director, presented Mrs. McDonnell with a contribution of $1,000 along with two pallets of water, part of an initiative to raise charitable donation levels. Diamond Springs has also begun working to increase awareness of the Virginia Food Banks across the state by offering billboard advertising on the back of Diamond Spring delivery trucks that feature the Food Banks’ campaign to “Turn hunger into hope.”

“Diamond Springs is a proud member of IBWA and is celebrating 50 years of doing business in Richmond. Virginia is home to 16 bottled water companies, including distributors and suppliers which total 14,800 jobs,” said Terry. “Our bottled water companies continue to generate jobs and revenue and

Source: Life Cycle Inventory of U.S. Bottled Water, Final Report, by Franklin Associates

Photo courtesy of Michaele White, Governor’s Office

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First Lady of Virginia Maureen McDonnell (left) accepted a donation from Diamond Springs’ Katie Terry and David Payne.

we are pleased to give back to the food banks across our state.”

Bottled water’s tax contributions to the Commonwealth totaled $249 million in 2009, with consumer sales taxes on the product adding another $21.3 million to the Commonwealth’s coffers.

DEC 2010/JAN 2011

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WATER NOTES

2 0 1 0 I BWA Conve nt ion a nd Tra de Show / I nt e rBev: Fille d Wit h Oppor t unit ie s More than 2,400 attendees met in Orlando, Florida, to network, learn, and play during IBWA’s 2010 Convention and Trade Show, which partnered with the American Beverage Association’s InterBev. From

September 20-24, 2010, IBWA provided educational opportunities to keep bottled water professionals informed of the innovations taking place in the industry and social events to encourage peer networking.

DWRF’s Jack West

NTL’s Barbara Marteney (center) talks with booth visitors.

IBWA’s 2010 Route Salespeople of the Year Troy Baker (Culligan Bottled Water) and Christian Dimitri (DS Waters’ Kentwood Springs) 2011 IBWA Chairman Scott Hoover

Jan and Bill Saxman

Stew Allen, Philippe Caradec, Brian Flaherty, and Breck Speed Rose Rocha and Allena Najor Gene Ross and Bryan Shinn

Dan, Cindy, Janet, and Scott Hoover

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2010 InterBev Trade Show floor

Jason Chambers and Sandra Keil

WATER NOTES

Rej Tellier (center) explains Crystal Mountain Products.

David Carlile explains CUNO offerings.

Bryan Shinn and Marge Eggie

Gustav Felix and Elizabeth Griswold

2010 DWRF Golf Tournament participants

Bill Young and 2010 IBWA Chairman Stew Allen

Edward Eigner and Dennis Bodoh

Allen French, Dave Prigge, Chris Weichman, Brian Grant, Robert Riefers, Leslie Alstad

DEC 2010/JAN 2011

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COVER STORY

and Claims

THE FTC HAS PROPOSED REVISIONS TO ITS “GREEN GUIDES.”

Under Review ]ngz"juky"zngz"skgt"lux"znk"huzzrkj"}gzkx"otj{yzx E

By Jennifer Berry In October 2010, the Federal Trade Commission (FTC) announced its intention to formally update its “Green Guides” for the first time in more than 10 years. he revisions seek to make the process of verifying environmental claims easier for businesses and marketers to understand, to address new changes and terminology that have arisen in the marketplace since 1998, and to help marketers not make deceptive environmental claims.

“In the last 10 years, we’ve seen an explosion of ‘green’ claims, on everything from paper towels to construction materials, and from energy generation to carbon offsets,” says FTC Chairman Jon Leibowitz. “In short, for many products, confusion abounds—we don’t always get what we think we’re getting.”

Guidance A Necessity If industries across the board have learned anything this past year from the “green” concept, it’s this: “Green” won’t be taken lightly. Corporate social responsibility has moved beyond a novelty to an ingrained consumer expectation.

According to he Greendex 2010 survey, conducted by the National Geographic Society and polling firm GlobeScan, respondents feel that companies, government, and industry groups are responsible for encouraging environmentally friendly consumer behaviors.

When asked what discourages that behavior, the top response (44 percent) was that “companies make false claims about the environmental impact of their products,” with the secondhighest response that “individual efforts are not worth it if governments and industries don’t take action.” Other studies have found similar results in the past. Ninety percent of respondents from the 2008 Green Gap survey conducted by Cone, LLC, and the Boston College Center for Corporate Citizenship, said “Companies must not only say a product or service is good for the environment, they need to prove it.”

As consumer expectation continues to evolve and solidify, the pressure increases to make real and verifiable claims in marketing and advertising. Although many have already sought to do so, guidance on the best and most effective ways to accomplish that objective is a necessity. he FTC’s “Green Guides” revisions cover a wide range of issues, from claims about general environmental benefits using terms such as “green” and “eco-friendly” or “compostable” and “made with renewable materials,” to “free of ” certain harmful substances and “recyclable.” he 229-page proposed revisions to the “Green Guides” document went under a 60-day review and public commentary, which ended December 2010. While the final revisions to the guides are not anticipated to be released until 2011, reviewing them to assess your company’s environmental messaging is crucial.

Guides, Not Laws It is important to note that the “Green Guides” are simply that: guides. “I think the Federal Trade Commission ended up deciding to be a coach rather than a cop,” says Mike Lawrence, executive vice president and chief reputation officer for Cone, LLC, whose clients include a number of bottled water companies. “And I think a little police work might have been a good idea for environmental marketing,” he adds.

Indeed, the guides create an ideal space for marketers to not only embrace sustainability claims but also put real action and information behind them. “here’s lots of ways to follow these guidelines and still have lots of creative flexibility, perhaps too much creative flexibility, in marketing,” says Lawrence.

Whether or not “green” marketing claims are currently incorporated into your company’s products, the revised guides are creating a buzz that cannot be ignored by companies, industries, and organizations seeking to promote the environmental benefits of their products.

DEC 2010/JAN 2011

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IBWA’S REACTION TO FTC GREEN GUIDES IBWA worked with several other food industry associations in 2008 to submit joint comments to the Federal Trade Commission (FTC) as the agency began its work on new revisions to its “Green Guides.” In November 2010, IBWA’s Government Relations and Environmental Sustainability Committees decided that IBWA should submit its own stand-alone comments to the FTC on behalf of the bottled water industry.

They also agreed that IBWA should coordinate its comments, as best as possible, with other food industry associations that might also submit comments to the FTC. IBWA spent several weeks working with members to craft comments, which were then finalized and submitted to the FTC in midDecember 2010. Our comments addressed claims currently included in the Guides as well as new content for the Guides, and focused on the following issue areas: t recyclable claims t recycled content claims t free-of claims t made with renewable claims.

Please contact IBWA Vice President of Government Relations Dan Felton with any concerns or questions related to this issue: 703.647.4618 or dfelton@bottledwater.org.

he bottled water industry, in particular, has a rare opportunity with these revisions to set a standard for transparency and verifiability through its environmental marketing claims. Below is an examination of some of the high points that directly affect bottled water, although a thorough read-through of the guides is highly recommended.

General Environmental Benefit Claims For the proposed “Green Guides” revisions, a highly debated topic was the establishment of general environmental benefit claims—and whether they should be allowed at all. “he weakest, I think, is the general claims [revisions]. hey should have thrown out, in my opinion at least, a few key words,” says Lawrence. Words that fall into this general category include “sustainable,” “green,” “eco-friendly,” and “earth-friendly.” “here are ways that you can say something that’s specific, makes an environmental claim, will motivate purchase, and 12

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is factually definable. And they certainly encourage people to do that in the ‘Green Guides’ now, and, in the proposed revisions, certainly encourage them more than they used to, so that’s all good. But, they stop short of really making the dirty words go away.

“But as a consultant, our job is to tell people what this stuff means and what it means they can do. And what it means you can do is that you can continue to make these kinds of claims, as long as you’re specific about why you’re making them,” says Lawrence.

Substantiation and Label Space he overall concept of having verifiable evidence to back every environmental claim and use of an eco-label or certification is prevalent throughout the revised guides. he proposed revisions remind marketers that they have a duty to substantiate “every express and material implied claim that the general assertion conveys to reasonable consumers about an objective quality, feature, or attribute of a product.

“Unless marketers can meet this ‘substantiation duty,’ they should avoid, or qualify, those claims as necessary, to prevent deception about the specific nature of the environmental benefit being asserted.”

According to Lawrence’s interpretation of the revisions, this substantiation also must happen at the point of sale where customers can easily discern them—and not rely on other substitutions, such as additional information provided on websites.

“So, you can’t say, ‘We’re environmentally wonderful’ with an asterisk saying, ‘See website for more.’ I don’t think that will work anymore,” says Lawrence. “And lots of products—not just bottled water—lots of consumer products that are roughly the size of your hand do that because they don’t have room.” he new guides pose this challenge: Finding label space to substantiate environmental claims. “So what that means is that there will be a battle for label space as there has already been at bottled water companies we know and love,” he says. “hat will be even more important, and if you want to market environmental claims, you’re going to have to resolve it in favor of more space, which is a good thing for the consumer.”

Recyclability Claims For bottled water, recyclability is an important claim for a product’s overall eco-impact. he guides provide three main levels of substantiation as they relate to whether or not a product can claim that it is recyclable, meaning that the people who can purchase the product have access to recycling resources.

FTC GREEN GUIDES

The bottled water industry has a rare opportunity with these revisions to set a standard for transparency and verifiability through its environmental marketing claims. he FTC is proposing to improve the readability of recyclability claims by using a three-tiered analysis for qualifying recyclable claims: â&#x20AC;&#x153;he appropriate qualiďŹ cations vary depending upon whether recycling facilities are available to: (1) at least a substantial majority; (2) at least a signiďŹ cant percentage but not a substantial majority; or (3) less than a signiďŹ cant percentage of consumers or communities,â&#x20AC;? the revisions read. â&#x20AC;&#x153;Currently, the recyclable section provides this guidance only in the examples.â&#x20AC;?

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Qualifying those claims with real, veriďŹ able evidence will be crucial for the implementation of recyclability claims.

he substantial majority threshold has been informally interpreted by FTC staďŹ&#x20AC; to mean at least 60 percent of consumers have access to recycling resources for a product.

For national distributors, that number may be attainable, while regional distributors may face more challenges depending on the area of the country where their products are sold. â&#x20AC;&#x153;If youâ&#x20AC;&#x2122;re saying, as most bottled water companies do, â&#x20AC;&#x2DC;Our product is 100 percent recyclable,â&#x20AC;&#x2122; that worked ďŹ ne, but now it may not, because the commission says it depends on where you sell it,â&#x20AC;? says Lawrence. â&#x20AC;&#x153;And, the lower two stages I think will require a bottled water company to make an assessment of how recyclable its area is for consumersâ&#x20AC;&#x201D; and to be prepared to defend that if challenged,â&#x20AC;? he adds.

In addition, previously acceptable statementsâ&#x20AC;&#x201D;such as â&#x20AC;&#x153;Check to see if recycling is available in your areaâ&#x20AC;?â&#x20AC;&#x201D;will not be suďŹ&#x192;cient under the revised guides. â&#x20AC;&#x153;he Commission proposes modifying existing Example 5 [of the guides] to illustrate that both disclosuresâ&#x20AC;&#x201D;â&#x20AC;&#x2DC;Recyclable where facilities existâ&#x20AC;&#x2122; and â&#x20AC;&#x2DC;Check to see if recycling facilities exist in your areaâ&#x20AC;&#x2122;â&#x20AC;&#x201D;are inadequate,â&#x20AC;? according to the revisions.

Claims for terms such as â&#x20AC;&#x153;degradable,â&#x20AC;? will be impacted as well, with much stricter interpretations of those types

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ABOUT EARTH911 Host of the nation’s largest and most accurate recycling directory, Earth911.com is a partner with IBWA to promote plastic bottle recycling.

As a national recycling authority, Earth911 specializes in supporting companies’ proper disposal initiatives, offering On-Product Solutions and Recyclability Reporting through its National Recycling Program. If your company is looking to verify and support your recyclability claims or is interested in other offerings, contact Earth911 at 1.888.987.7329.

of claims being constructed, such as requiring that the product break down in no more than one year and not be expected to be sent directly to a landfill. “hose words have all but gone away in that the way that the FTC did deal with degradable is basically such that almost nothing’s going to be able to say it’s degradable,” says Lawrence.

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Moving Forward he intent of the revised “Green Guides” is to make the process of navigating the world of green marketing less confusing for all parties involved, from manufacturing to purchase and disposal. In fact, Chairman Leibowitz commented that he is hoping that there will be less enforcement, not more, based on the increased clarity of many issues, and that these guides will encourage companies to voluntarily comply—especially those that have actively been seeking clarity. he bottled water industry should view the guides as nothing less than a call to action—an opportunity for all bottled water manufacturers to embrace them and be a leader among other industries as well. By correctly verifying and substantiating all environmental marketing claims, increased trust and support from consumers is a real and possible outcome.

Jennifer Berry is the public and strategic relations manager for Earth911. Contact her at jberry@earth911.com.

IBWA LCI TOOL

Bottled Water Life Cycle

ENERGY

Packaging Manufacturing

Waste/CO2 Equivalent

Recycle/Reuse

RESIN

Bottling

MAR

KET

Illustration by Matt Sweitzer

Raw Materials

Consumer Use

Transportation

IBWA’s Life Cycle Inventory Tool:

Six Things You Need to Know

By Jill Culora and Tamika Sims

Although the term “environmental footprint” quickly became a household term, the task of calculating it is daunting for most businesses. With that in mind, IBWA developed a Life Cycle Inventory (LCI) Toolkit to help members calculate the environmental impact of their bottled water products.

and immediately see the results. he three separate spreadsheets provide data fields for small pack, home and office delivery (HOD), and combined bottled water businesses. In addition, a frequently asked questions (FAQs) document provides guidance on how to use the LCI tools and interpret the data.

he toolkit includes an LCI report, slide presentation, executive summary, and three LCI tools, all in the form of a pre-programmed spreadsheet that allows you to add your business data

IBWA’s LCI tool is simple to use and outcomes will help members make other business decisions—such as assessing ways to reduce waste, energy, and greenhouse gas emissions.

But what six things should members know before they set out on the overwhelming task of calculating their business’ environmental footprint?

1. LCI is a Part of an LCA An LCI is just one of four steps involved in conducting a Life Cycle Assessment (LCA) of a product.

An LCA (also called “cradle-to-grave analysis”) quantifies and evaluates the impact of a product beginning with the extraction of raw materials and ending with the product’s end-of-life disposal.

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With practice, IBWA’s LCI tool will help you learn what production factors contribute the most to energy, waste, and emissions. he LCI phase (ISO 14041) collects and calculates inputs and outputs across an entire supply chain, factoring in materials and energy used in product production (such as a bottle of water).

It’s like a balance sheet measuring energy and materials in and outputs (such as emissions and solid waste). he other three phases in an LCA include (1) Goal Definition (ISO 14040), (2) Impact Assessment (ISO 14042), and (3) Improvement Interpretation (ISO 14043).

2. Using the LCI Tools IBWA’s LCI tools are straightforward and simple, and users are easily able to address each of the steps needed to input a company’s sample data.

Step 1. Analyze internal product data. Identify the raw materials and packaging involved in production. his step includes storage, transportation, and any waste produced during production.

3. Reading the Results After entering your data into the spreadsheet tool, the model will calculate values and output information in easy-to-read graphs. Results show the following information: total energy (millions of BTUs)

CASE STUDY

t

net energy (millions of BTUs)

Q & A WITH BLACKHAWK MOLDING CO., INC

t

global warming potential (lbs CO2 equivalents)

t

net global warming potential (lbs CO2 equivalents)

t

solid waste (lbs)

t

net solid waste (lbs).

How user-friendly was the tool, and why?

We found the software very easy to use. It required only a few data entry steps to clearly document our current closure and compare it to our two new closures.

What surprised you most about your results?

The significant impact changes to the closure could have on the entire HOD packaging LCI. HOD bottlers using our current SafeGard closure, or similar style closure, can realize a significant reduction in resin required to produce the closure, reduce their global warming potential, reduce their solid waste, and even reduce their overall energy requirements by going to our SafeGard Plus or U5 closure.

How do you plan to use the LCI results information?

Blackhawk has used the information to develop an internal marketing summary sheet detailing the LCI benefits from using our SafeGard Plus and/or our U5 closure to assist our sales staff in communicating those LCI advantages to our current customer base and to potential new customers.

What advice do you have for IBWA members who have not tried the LCI tool?

It truly is easy to run LCI “What Ifs” scenarios and see the impact of seemingly minimal changes. I think all first-time users will be amazed at how easy the spreadsheets are to use and how easy it is to quantify proposed/actual changes/improvements to their HOD package/system.

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Step 3. Collect and enter the data.

Assemble and input the data required for every stage in the process. he range of data necessary will differ depending on your bottled water source and treatment practices, energy efficiencies, and packaging complexities. Remember: Missing data will result in inaccurate calculations.

t

Bottled Water Reporter spoke with Jeff Davis, director of operations at Blackhawk Molding Co., Inc., about his experience using IBWA’s Life Cycle Inventory (LCI) tool.

16

Step 2. Make a map of the supply chain. Take into account all the possible inputs for the product—from raw material to the factory gate to the store shelf.

WWW.BOTTLEDWATER.ORG

4. Analyzing Improvement Scenarios With the result graphs in view, adjust the numbers in the various input fields to immediately see how different data affects the results. For example, reducing the values in the plastic film and corrugated field, you will easily see the shift in energy and solid waste displayed in the graphs. By practicing with this tool, you’ll quickly learn what production factors contribute the most to energy, waste, and emissions. he tool allows you to see the following: t

which activities and processes have the most impact on the environment

t

where you can realize “quick wins” with minimal cost implications

where you can make the best investment decisions.

5. Identifying Major Contributors for Solid Waste, Energy Consumption, and Global Warming Potential Before using IBWA’s LCI tool, you should be aware of the following contributors to solid waste, energy consumption, and global warming—and the potential ways to reduce their impact.

Solid waste (small pack). As much as 70 percent of solid waste from small pack represents the disposal of post-consumer containers, caps, and packaging. Potential ways to reduce solid waste includes lightweighting (the bottled water industry saved 445 million pounds of PET plastic by lightweighting in 2008) and recycling production materials: paper corrugated and metals. Consumers should also be encouraged to recycle.

Energy consumption (small pack).

As much as 50 percent of energy consumption is spent producing PET bottles. Plant energy accounts for 20 percent and transportation accounts for up to 12 percent. Potential ways to reduce energy consumption include using rPET and lightweighting.

A National Association for PET Container Resources (NAPCOR) study found using rPET can reduce energy consumption by 84 percent.

Global warming potential (small pack). More than half the global warming potential of small pack development is associated with the production and transportation of bottled water containers and packaging. Potential ways to reduce this figure includes using energy-saving equipment and delivery vehicles (such as hybrid trucks).

Solid waste (HOD). he bulk of the solid waste associated with HOD production comes from fuel waste

IBWA LCI TOOL

t

CASE STUDY

Q & A WITH NESTLÉ WATERS NORTH AMERICA Bottled Water Reporter spoke with Kevin Mathews, director of health and environmental affairs at Nestlé Waters North America, about his experience using IBWA’s LCI tool.

How user-friendly was the tool, and why?

Very user friendly. The tool allows bottlers to directly input data from their product mix and operations into a simple spreadsheet. Results are then automatically calculated in the program and graphed for visual aid of results. This is much simpler and certainly more cost effective than using an outside LCA firm that will take much more time and cost more to execute.

What surprised you the most about your results?

We have already done an LCA on our products through an LCA provider. I was not surprised by the results because they were already known. What was surprising is that IBWA created a tool that is user friendly for the industry at a low cost with great value that we were able to validate through our own internal LCA work.

How do you plan to use the LCI results information?

We use LCA information in a number of ways. In communication—both internally and externally—[we use the data] to speak to the merits of bottled water or to compare our operations against each other for continuous improvement. One key point is that the IBWA LCI is an internal data gathering and comparison program that is an excellent tool for continuous improvement in your operations, but it can’t be used for external communication unless an additional step is taken to contract with an independent LCA contractor who can verify the results of the LCI for external use.

What advice do you have for IBWA members who have not tried the LCI tool?

It is imperative that IBWA bottlers do an LCI (or ever better an LCA) to assess their environmental footprint. As we have seen, bottled water has been under attack from environmentalists as unsustainable or bad for the environment. This LCI, and overtly an LCA, allows us to portray our products as the most environmentally sustainable beverage product. Communication of this externally is a huge win for bottle water industry.

(nearly 50 percent). Potential ways to reduce solid waste at the plant include using more energy efficient machines and delivery trucks.

Energy consumption (HOD).

Delivery and back hauling account for almost half the energy used to produce HOD bottled water, while only 25 percent is spent making the HOD bottles. Potential ways to reduce energy consumption include reducing the number of deliveries or using more efficient delivery routing.

Global warming potential (HOD).

Transportation and plant related emissions account for nearly 80 percent of the global warming potential in an HOD business (transportation is 50 percent, and plant emissions is 30 percent). Potential ways to reduce this figure include using energy-saving equipment and delivery vehicles (such as hybrid trucks).

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IBWAâ&#x20AC;&#x2122;s LCI tool can also provide hard data for industry stakeholders and bottled water customers to use when rebutting anti-bottled water claims.

6. Establishing Next Steps IBWA developed the LCI tool because the association wanted to help its members become more eco-aware, with the overall aim of helping to reduce the industryâ&#x20AC;&#x2122;s environmental footprint. he tool has the potential to greatly assist IBWA members with benchmarking data, impact assessments, and learning about LCAs. he tool can also provide hard data for industry stakeholders and bottled water customers to use when rebutting anti-bottled water claims. However,

IBWAâ&#x20AC;&#x2122;s toolkit does come with an important caveat: Before publicly sharing the results generated from your LCI, itâ&#x20AC;&#x2122;s highly recommended that outside independent veriďŹ cation be conducted by a reputable third party.

IBWA membersâ&#x20AC;&#x201D;as well as industry spokespeopleâ&#x20AC;&#x201D;should also comply with federal guidelines on making environmental claims. (For more information, read the Federal Trade Commissionâ&#x20AC;&#x2122;s â&#x20AC;&#x153;Guides for the Use of Environmental Marketing Claimsâ&#x20AC;?: http://www.ftc.gov/bcp/grnrule/ guides980427.htm.)

Jill Culora is a business journalist who regularly contributes to Bottled Water Reporter; jculora@bottledwater.org.

Tamika Sims, Ph.D., is IBWAâ&#x20AC;&#x2122;s director of science and research and staff liaison to the associationâ&#x20AC;&#x2122;s Environmental Sustainability Committee; tsims@bottledwater.org.

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World Class, Worldwide

E-WASTE

Don’t Throw Technology Away Nu}"zu"vxuvkxr "joyvuyk"ul" u{x"iusvgt Ùy"k3}gyzk4

By Shayron Barnes-Selby

We love our electronic devices. hey help us communicate, garner information, and entertain ourselves with speedy efficiency—but as soon as there’s a technology upgrade, we are quick to toss aside our beloved hi-tech gadget for the next great electronic device. So, what should we do with the old technology? he best advice: Don’t throw technology away.

E-waste—the discarded, surplus, obsolete, or broken, electronic devices you no longer need but can be reused or recycled into new product—is quickly becoming part of our business and

household lexicons. In fact, the U.S. Environmental Protection Agency (EPA) estimates that 65.7 million computers became obsolete in 2007 alone. We go through millions of units of cell phones, computers, and televisions each year—and the statistics show that the number of new products we buy—and the number of old products we discard— is steadily increasing.

To help with the end-of-life management of those products, the EPA developed partnerships with leading consumer electronics

manufacturers, retailers, and mobile service providers to foster and promote opportunities for consumers to donate or recycle their electronics. he EPA’s Plug-In to eCycling program promotes the safe recycling of electronics to manage toxic substances (such as mercury and lead). he program also conserves our natural resources by recovering materials from old and used electronics that can be used to make new products.

In 2009, the Plug-In To eCycling program challenged electronics retailers and television manufacturers to

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increase the collection and responsible recycling of used TVs as consumers replaced their analog TVs with digital ďŹ&#x201A;at-screens. he goal was to stimulate innovation and partnerships to increase TV recycling in 2009 and beyond. (For more info, visit www.epa.gov/epawaste/ partnerships/plugin/index.htm.) hus, manufacturers, retailers, and state and local governments have

realized the need to provide consumers with programs and opportunities to recycle their electronic devices. Today, some manufacturers of televisions and computers oďŹ&#x20AC;er â&#x20AC;&#x153;take back programsâ&#x20AC;? or support local electronic recycling events. In addition, some states have passed legislation to require electronics recyclingâ&#x20AC;&#x201D;and more states anticipate passing similar legislation.

IDEXX Water Microbiology Protecting the quality and reputation of your bottled water

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Tests for key water-quality indicators: t 5PUBM DPMJGPSNT E. coli t &OUFSPDPDDJ t )1$ t Pseudomonas aeruginosa

Proven methods t .JMMJPOT PG UFTUT TPME JO PWFS DPVOUSJFT

idexx.com/bottledwateribwa Ă? *%&99 -BCPSBUPSJFT *OD "MM SJHIUT SFTFSWFE t t "MM Ă&#x2018; TM marks are owned by IDEXX Laboratories, Inc. PS JUT BGmMJBUFT JO UIF 6OJUFE 4UBUFT BOE PS PUIFS DPVOUSJFT 5IF *%&99 1SJWBDZ 1PMJDZ JT BWBJMBCMF BU JEFYY DPN

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Recycling Electronics: More Complicated Than You Might Think Consumers are well aware that materials such as polycarbonate plastic containers, aluminum cans, or newspapers can be recycled and made into other products. Recycling electronic componentsâ&#x20AC;&#x201D;such as a computerâ&#x20AC;&#x201D;is more complex.

By using a process called ďŹ re assay, unusable circuit boards are ground into a powder and separated into ďŹ berglass, metals, and precious metals. he small plastic components found inside computers are usually made from high density polyethylene (HDPE). he HDPE makes it easier to remove those small plastic parts that are ground and processed. Recyclers must be cautious and not mix other materials (such as metals or diďŹ&#x20AC;erent resins) with the ground HDPE plastic. he small metal parts, the clips, and the screws are sorted and separated into ferrous and nonferrous metals and sold as scrap.

Recycling a standard cathode ray tube (CRT) monitor introduces other concerns. A CRT contains approximately 40 percent of its weight in lead (about 4-8 pounds). If the monitor is just tossed into the trash and the lead is not properly extracted, the CRT becomes hazardous waste.

For proper recycling, the funnel of the CRT in the monitor is separated from the front panel glass. he tube is then crushed and the lead glass and metal are separated. he glass is screened and inspected for contaminants. he glass may be used in other applications and the metal is typically sold as scrap.

Handling E-waste at DS Waters While proper disposal of e-waste is the right thing to do, it also eliminates your companyâ&#x20AC;&#x2122;s liability related to improper disposal of hazardous materials. DS Waters started e-waste recycling on

EARTH911’S RECYCLING PREPARATION TIPS

All e-waste recycling is coordinated through our IT Department at support quarters in Atlanta. Having a central location that monitors our e-waste program ensures comprehensive tracking of returned technology items, regulatory compliance, and fee management.

t Is the recycler certified (such as an ISO 14001 environmental management certification), and does it follow a set of industryrecognized guidelines?

We encourage all of our associates to participate in this practice and have partnered with ViaTek Solutions, one of the top 20 U.S. electronic recyclers, to educate our IT team on e-waste management and the proper pickup/ disposal of all electronic equipment.

Currently, ViaTek is one of only four authorized and licensed e-Steward companies in the state of Georgia. An e-Steward company is one that adheres to the strict environmental and social standards established by the Basel Action Network (BAN), which is the watchdog for ethical recycling and certifies recyclers in the United States as e-Stewards. (See sidebar at right.)

Here’s how our relationship with ViaTek works: DS Waters’ associates gather all e-waste items together, and, once we have 30+ items, we place an order for pickup. When the items are collected, we get a receipt verifying the type of equipment and the quantity.

After the items arrive at the recycling center, their value is determined. Items that have a dollar value are “purchased” from DS Waters, and items that have a fee associated with the pickup are “charged” against our account. For example, we may pay for a CRT monitor that needs to be picked up or get a credit for a PC that—although still works—is too old/slow to use or support our network environment.

For DS Waters locations in remote areas, ViaTek charges pickup/shipping fees; thus, small items are sent express

E-WASTE

a small scale in August 2005, and, to date, we have retired more than 3,000 electronic items.

Once your company decides to participate in an e-waste program, it’s important to select a recycler operating under strict environmental controls and high worker-safety protections. Here are a few general questions to ask:

t Does the recycler actually recycle most of the e-waste materials collected? It is best if the company can recycle 90 percent or more of the materials. t Does the recycler have written procedures for removing and disposing of mercury lamps in electronic products? Many manufacturer and government-sponsored programs have extensive online information detailing the way in which recycling is handled.

Recently, the issue of exporting electronics overseas has become both an environmental and a health concern. The Basel Action Network (BAN), an organization focused on “confronting the global environmental injustice and economic inefficiency of toxic trade (toxic wastes, products and technologies) and its devastating impacts,” and the Electronics TakeBack Campaign have qualified a group of electronics recyclers known as e-Stewards that have met criteria for globally responsible recycling. A list of e-Stewards can be found at www.e-stewards.org.

In addition to choosing a recycler, it is also important to prepare your e-waste for recycling. For computer recycling, one important concern is to erase all data from the computer before sending it off for recycling.

In fact, many recycling firms will scrub the hard drive and certify that all data has been erased. Before sending your computer to a recycler, check to verify that this option is available.

Source: www.Earth911.com

saver to Atlanta or stored with other electronic items gathered from nearby front line locations until we have accumulated enough e-waste items to comprise at least one pallet for shipping to the recycler. By shipping full pallets, we can offset the pickup/shipping fees.

A real benefit of the e-waste program for DS Waters is better visibility of the asset management related to the disposal of technology equipment. Far too many times technology equipment is just tossed out, which leaves the asset recorded on the company’s books—and we become “asset heavy.” he detailed tracking required by electronic recycling programs identifies the e-waste down

to the equipment’s serial number, so all electronics are properly disposed of and can be removed from the company’s list of assets.

When to Pursue an E-waste Program Companies should rely on their technology professionals to determine the proper recycle time for e-waste.

Sure, everyone wants the latest, greatest, fastest computer or device, but companies need to work with their IT personnel and understand what the real difference is between the current equipment and that new device. Any employee can easily be drawn to the flashing neon sign over the new system DEC 2010/JAN 2011

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A real benefit of the e-waste program for DS Waters is better visibility of the asset management related to the disposal of technology equipment. boasting how fast or cool it may be, when the current system is just as fast.

For example, an employee using a computer to read emails, review average size spreadsheets, type documents, or surf the Internet will not see any major difference between a dual core processer and a quad core processer. New software and a little more RAM would avoid the system replacement. Companies need to be aware that sometimes an ineffective device may just need a tweak—and not be entirely replaced by the next generation electronic.

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But don’t wait too long to gather e-waste that needs to be recycled.

If the e-waste is efficiently gathered while it’s still in working order, those devices have value and possible actual use. Electronics that have become obsolete due to an inability to handle an increased workload may still be perfectly good for someone with a smaller workload demand. A smaller organization or even a third-world country could actually put those electronics to use in a less demanding work environment.

Shayron Barnes-Selby is vice president public affairs at DS Waters and serves IBWA as IBWA PAC treasurer and co-chair of the Government Relations Committee.

IBWA would like to thank all of its members for their continued support of the bottled water industry.

We greatly appreciate those who volunteer their time, expense and expertise for committee work, board leadership and other valuable participation in IBWA activities and programs. Many of you also volunteer your time to mentor others in the industry and serve as a shining example of the camaraderie our industry has and the powerful results that occur when people take time to help others.

Without you, IBWA could not continue to protect the interests of our industry.

Key Democrat Win Republican Win Independent Win No Election

2010 U.S. Governor Races

2010 MIDTERM ELECTIONS:

A REPUBLICAN AFFAIR

By Sarah Lashford, former IBWA Director of Government Relations

A GOP tidal wave swept over the nation on November 2, 2010, after voters cast their ballots for the midterm U.S. elections. At the federal level, Congress will have significant personnel changes in both the House of Representatives and the Senate.

Republicans gained control of the House by a significant margin, the largest gain by any major party since 1948. he House will now hold 240 Republicans, and 189 Democrats with six races too close to call as this goes to print. Although the Senate remains in the Democrats’ control, it does so with a significantly less margin. In 2011, the Senate will consist of 53 Democrats and 47 Republicans.

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At the state level, the change in the political landscape was even more dramatic. Republicans dominated the race for governorships, claiming 29.

(Democrats hold 20 governorships and one is held by an Independent.) he change in power is a drastic change from the near balance before the elections (where Democrats held 26 governorships and Republicans had 24).

In the state capitals, Republicans now control 55 state chambers, while Democrats control 40 with three houses evenly divided (Oregon’s House and Senate and Alaska’s Senate).

In 26 states, Republicans now hold majorities in both legislative chambers,

which is up from 15 the previous year. And in 19 states, a chamber flipped from Democratic control to Republican majority. Such significant changes across the country signal a more pro-business agenda at both the state and federal levels.

How You Can Help With new legislators headed to Washington, D.C., and the state capitols, IBWA members have a tremendous opportunity for outreach.

As it currently stands, at least 69 new members of Congress are headed to Capitol Hill in January 2011. Changes in D.C.—coupled with new governors and legislators in

GOVERNMENT RELATIONS the states—present IBWA with the tremendous opportunity to educate new legislators about the bottled water industry and our legislative issues and concerns.

More than ever, it’s important for members to reach out to their elected officials—whether at the federal or state level—to build and solidify relationships. Your involvement will help to ensure that this new group of legislators learns the facts about the bottled water industry—from the bottled water industry.

To accomplish that outreach, it takes a commitment to become involved. IBWA urges you to make

to keep government in service, to the charitable donations and support you supply to your communities and your continued environmental efforts, those positive messages need to be shared with your local politicians.

In 2011, IBWA hopes that you will take advantage of this unique opportunity to educate an onslaught of new legislators—and build and maintain relationships with them. For the continued health and vitality of the bottled water industry, it’s critical that you become involved. IBWA is here to assist you in developing those relationships, but you have to make the first step to commit to defending

MORE THAN EVER, IT’S IMPORTANT FOR MEMBERS TO REACH OUT TO THEIR NEWLY ELECTED OFFICIALS—WHETHER AT THE FEDERAL OR STATE LEVEL—TO BUILD AND SOLIDIFY RELATIONSHIPS. that commitment today and to get your peers to do the same. Whether you arrange a plant tour, meet directly with your elected officials, or write a congratulatory letter and send your legislator information about your company located in their district, these efforts will pay dividends to you in future public policy debates and will help you build a stronger business today.

Let Legislators Hear Your Story he bottled water industry has a great story to tell elected officials. From the jobs you provide for constituents in their districts and the taxes you pay

our industry and your business by participating in activities that will build long-lasting relationships with your elected officials.

IBWA staff will continue to work closely with the Government Relations Committee and other members to reach out to the new legislators as they arrive in Washington, D.C., and in the states. Your support and participation is paramount to the success of that outreach. For additional information on how to get involved in IBWA’s outreach efforts at the state and federal levels, please contact Dan Felton, IBWA’s vice president of government relations: 703.647.4618 or dfelton@ bottledwater.org.

WHY A PAC? IBWA formed the International Bottled Water Association Political Action Committee (IBWA PAC) to raise campaign contributions for candidates for Congress. The PAC provides IBWA and its members a powerful tool to help build vital bottled water industry relationships and educate legislators about its interest in issues such as food safety, BPA, taxes, water infrastructure, FDA funding, and others.

Who Can Participate?

Under federal law, IBWA may regularly solicit contributions only from its own restricted class, non-corporate IBWA members (i.e., individuals, proprietorships, and partnerships), and the restricted class of IBWA corporate members who have given IBWA an Authorization to Solicit.

IBWA member companies may grant only one trade association the authority to solicit PAC contributions each year. Under the law, the amounts that may be contributed to and by the IBWA PAC are limited, and steps must be taken to ensure that employee contributions to the IBWA PAC are strictly voluntary and without coercion.

Cash contributions over $100 cannot be accepted, and contributions to the IBWA PAC are not deductible for federal income tax purposes.

For More Information Dan Felton Assistant Treasurer IBWA Political Action Committee 1700 Diagonal Road, Suite 650 Alexandria, VA 22314 703.647.4618 dfelton@bottledwater.org

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“unsustainable” claims are intended to paint bottled water companies with a broad, negative brush. It’s as if bottled water critics believe that just uttering the word “unsustainable” is enough to dismiss one of the oldest continuously operating industries in America.

Of course, our critics are wrong.

Below, we take a closer look at various false claims about bottled water’s “unsustainability” and provide rebuttals that undermine our critics’ flippant condemnation of a safe, healthy, convenient food product.

The Criticisms

BOTTLED WATER IS VERY SUSTAINABLE

By Tom Lauria, IBWA Vice President of Communications A baffling, never-quite-explained criticism of bottled water is that it is “unsustainable.” While this accusation by bottled water critics is rarely fully illustrated, the term unsustainable infers that bottled water companies 26

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are removing water from aquifers at a rate that cannot be replenished, that supplies of oil by-products (from which plastic is derived) are being depleted by bottled water producers, and shipping costs are excessive. hose

A Google search of “bottled water” and “unsustainable” for 2010 revealed a range of criticism: t “But the United Nations. . . emphasized that bottled water was not sustainable.” (New York Times) t “here are indeed good reasons to see global marketing of spring water as environmentally unsustainable.”

(Vassar College blog) t “Most people who know about environmental issues know that bottled water is unsustainable on many levels. Changing the way the bottle is made is not a sustainable answer to bottled water.”

(EcoLocalizer.com) t “he amount of oil it takes to haul bottled water from wells to bottling facilities to distribution centers to stores is unsustainable.” (Earth Week) t “Purchasing bottled water is decidedly unnecessary and unsustainable. he environmental cost would remain large even if every bottle were diligently recycled.”

(Down to Earth blog)

The Rebuttals Let’s start with the water itself. A Drinking Water Research Foundation (DWRF) study found that bottled water amounts to only 2/100 of one percent of all groundwater water

COMMUNICATIONS withdrawals. Within the Earth’s hydrologic cycle, groundwater is subject to a recharge rate from melting snow and rain. With care and good stewardship, groundwater can and will refresh all future generations with nature’s finest resource.

Looking at the groundwater segment of the industry, activists ignore the historical foundation of bottled water.

With some viable groundwater sources sustaining continuous and viable commercial output dating back to

of any packaged beverage. Clearly, the lightweighting of the plastic PET bottles is lessening the load on landfills.

In 2010, a Life Cycle Inventory (LCI) study was conducted by Franklin Associates for IBWA to measure the bottled water industry’s environmental impact. he LCI report noted that the total weight of materials used for bottled water containers in 2007 was 1.64 million tons. After recycling rates are calculated, the net amount of bottled water materials disposed of

ONE HAS TO WONDER WHY BOTTLED WATER CRITICS ARE CHARGING AFTER ONE OF THE MOST DEMONSTRABLY SUSTAINABLE SOURCES OF HYDRATION AND REFRESHMENT IN OUR COUNTRY’S HISTORY. 1872 and earlier, one has to wonder why bottled water critics are charging after one of the most demonstrably sustainable sources of hydration and refreshment in our country’s history.

Bottled water’s solid waste impact is another source of activist criticism.

As the U.S. Environmental Protection Agency (EPA) points out, bottled water containers make up only 1/3 of one percent of the U.S. waste stream. he bottled water industry is working diligently to decrease that small percentage even further. During the past eight years, the weight and density of plastic bottles has been decreased by more than 32 percent, with future plastic lightweighting likely. Single-serve bottles are increasingly being made with recycled PET, giving bottled water one of the smallest environmental footprints

through more extensive advocacy of recycling programs nationwide by the bottled water industry.

Looking at energy consumption, according to the IBWA LCI, the process and transportation energy use for the bottled water industry was 0.07 percent of total U.S. primary energy consumption in 2007. hat is less than 1/10th of one percent.

Another important way to measure bottled water’s environmental impact is to look at greenhouse gas (or CO2) emissions. he LCI study conducted for IBWA found that the small pack and HOD bottled water industries combined emit 6.8 million tons of CO2 per year, which is equivalent to only 0.08 percent of total United States emissions.

With all the facts at hand, we can see that every aspect of bottled water production and distribution can and will satisfy the needs of thirsty consumers indefinitely.

In fact, let’s say it loud and clear: Bottled water is very sustainable.

in landfills was just 1.08 million tons.

At 1.08 million tons, bottled water container discards account for just 0.64 percent of the 169 million tons of total U.S. municipal solid waste discards in 2007.

In bale studies conducted annually by the National Association for PET Container Recycling (NAPCOR), empty bottled water containers were shown to be the single-most recycled item in single stream curbside recycling programs, at 30.9 percent in 2008.

Just one year before, the bottled water container recycling rate was 23.4 percent. hat’s a remarkable 32 percent improvement in a single year.

While the recycling rates are still too low, it illustrates that on-going progress is being made to reduce the environmental impact of bottled water

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PET RECYCLING RATE INCREASES FOR SIXTH YEAR

By Tamika Sims, IBWA Director of Research

According to the PET Resin Association (PETRA), polyethylene terephthalate (PET) “is the world’s packaging choice for many foods and beverages because it is hygienic, lightweight, shatterproof, and retains freshness.” PET packaging is also clear, strong, safe, sustainable, versatile, and convenient—which makes it a favorite packaging material with the food and beverage industry and consumers.

Since 1977, PET bottles have been recyclable. Today, the material is the most-recycled plastic in the United States, according to the National Association for PET Container Resources (NAPCOR) and PETRA. 28

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In their 2009 report “Postconsumer PET Retainer Recycling Activity,” NAPCOR and the Association of Postconsumer Plastic Recyclers (APR) announced that the 2009 gross recycling rate for all PET bottles reached 28 percent—one percent higher than 2008’s rate. (More recently, NAPCOR published two new studies for IBWA—“2009 Post Consumer PET Bottle Bale Composition Analysis” and “2009 Report on PET Water Bottle Recycling”—and, according to data from those studies, the national recycling rate for PET plastic bottled water containers reached 31 percent for 2009.)

he organizations got to the 28 percent calculation by dividing the number of U.S. bottles collected and sold for recycling (1, 444 million pounds) by the number of U.S. bottles available for recycling (5,149 million pounds). When compared to recycling rates from 10 years ago, the increased PET recycling rate for 2009 shows a 4 percent increase.

NAPCOR and APR obtained data for their report through surveys conducted by HDR Inc. and Moore Recycling Associates, combined with data generated internally by NAPCOR, PETRA, and IBWA. Reports for previous years, including 2009, and

TECHNICAL UPDATE additional information on PET bottle recycling can be found at www.napcor. com or www.bottledwater.org.

Data Breakdown he data in “Postconsumer PET Retainer Recycling Activity” shows that, of the 1.444 billion pounds of post-consumer PET bottles collected for recycling and sold in the United States in 2009, more than 50 percent were purchased by export markets, 44 percent of the bottles were purchased

by U.S reclaimers, and the remainder was the PET component of mixed bales exported. his is the sixth year in a row that the post-consumer PET bottle recycling rate has increased. hat increase can be attributed to multiple factors, including the following: t a decrease in the number of U.S bottles available for recycling t a 16.3 million pounds increase in California collections t more than 46 new collection programs, six major program expansions, and 52 program expansions / conversions to singlestream recycling affecting more than 3.7 million households (according to Resource Recycling magazine) t additional new commercial recovery efforts.

rPET Market he demand for recycled PET (rPET) for food grade packaging applications also increased significantly in 2009. he NAPCOR/APR report highlighted that the use of rPET in food, beverage, and non-food PET containers increased 37 percent in 2009 from 2008. he report goes on to say that the “strong interest in PET seems likely to contribute to future industry growth as pressure continues for environmentally sound packaging, the economy recovers, and consumer spending increases.”

he amount of rPET produced

by U.S. reclaimers from U.S. bottles in 2009 was 477 million pounds, which is unchanged from 2008. From exported U.S. bottles, the production of 601 million pounds of clean flake equivalent was expected. Together, those values total 1,078 million pounds of clean flake from U.S. bottles

creation of more container recycling collection opportunities occurred— residential and away-from-home.

In 2009, reclamation capacity also increased due to numerous new PET plant establishments and expansions (even with various plant closures).

Overall, NAPCOR/APR report that the year ended with a net increase

PET PACKAGING IS CLEAR, STRONG, SAFE, SUSTAINABLE, VERSATILE, AND CONVENIENT—WHICH MAKES IT A FAVORITE PACKAGING MATERIAL WITH THE FOOD AND BEVERAGE INDUSTRY AND CONSUMERS. (not including bottles imported into the United States). hus, the PET utilization rate for 2009 is 20.9 percent: NAPCOR and APR explain that rate as “the sum of clean flake produced by U.S. reclaimers, plus the equivalent amount of clean flake expected to be produced from exported bottles, taken as portion of total U.S. bottles available for recycling (5, 149 million pounds).”

NAPCOR and APR also noted an average 44 percent content increase of rPET in food and beverage bottles, and a 22 percent content increase overall in rPET use in packaging applications. hat increase offsets a decrease in the use of rPET for the strapping and carpet industries.

Market Outlook PET lightweighting and reduced sales created negative market growth in 2008, which continued into 2009.

However, businesses embracing sustainable practices and the public’s environmental concern restored recycling awareness. As a result, the

of more than 200 million pounds in reclamation capacity.

While the U.S. economy negatively impacted particular reclaimers (e.g., strapping and carpet industries), those losses were compensated for by the packaging sector’s demand for rPET. NAPCOR/APR note that the lack of available rPET drove additional investments in both reclamation and conversion technologies by companies that did not secure stable sources of rPET supply; this trend will likely continue through 2010.

PET’s Future Effect PET’s ability to be recycled into food containers, beverage packaging, personal care products, carpet, clothing, construction materials, industrial strapping, and various other products ensures the popularity of this plastic.

Because consumers continue to increase their recycling of PET bottles, we can expect their recycling habits to increase, continued use of PET products, and growth in available rPET. DEC 2010/JAN 2011

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CPO QUIZ

IBWA

certified plant operators (CPOs) are encouraged to complete the following quiz for ½ IBWA continuing education unit (CEU). The questions are derived from material presented in this issue of the Bottled Water Reporter, the IBWA Plant Technical Reference Manual, and the IBWA Bottled Water Code of Practice. Submit this quiz to Dimeko Shaw, IBWA Education and Technical Program Coordinator, 1700 Diagonal Road, Suite 650, Alexandria, VA 22134. Look for additional quizzes in future issues and earn additional IBWA CEUs!

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Check your selection for each question

1|

_____ of PET bottles were collected for recycling in 2009.

O O O O

2|

Which of the following is a common method used to control taste and odor from organics, microorganisms, or chlorine in source waters?

O O O O

3|

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Ground water Mineral water Natural water Purified water

It has been shown that an adult with a normal diet consisting of ______kg of commercial/processed foods and beverages consumes 0.0015 milligram BPA per kg body weight and day.

O O O O

30

APR IBWA PETRA NAPCOR

_________ is defined as water from a subsurface saturated zone that is under a pressure equal or greater that atmospheric pressure?

O O O O

5|

Aeration Activated carbon Both aeration and activated carbon None of the above

Which of the following organizations represents the PET recycling business?

O O O O

4|

Less than 1 million pounds More than 1 billion pounds Forty-four percent Thirty-one percent

1 kg 2 kg 3 kg 4 kg

WWW.BOTTLEDWATER.ORG

6|

In the IBWA Bottled Water Code of Practice (also referred to as the “Model Code”), the IBWA SOQ for Chlordane is ______ ppm.

O O O O

7|

0.04 ppm 0.002 ppm 0.2 ppm 0.004 ppm

Bisphenol-A is removed through the human body through urine and is not accumulated in the body.

O O

8|

True False

According to FDA’s CGMP regulations, representative samples of product water must be analyzed _________ by an approved laboratory.

O O O O

9|

Annually Monthly Weekly Daily

The Hazard Analysis and Critical Control Point (HACCP) system consists of how many principles?

O O O O

5 principles 6 principles 7 principles 8 principles

10|

Recycled PET (rPET) can be used to make _____.

O O O O

Carpets Beverage containers Clothing All of the above

NEW MEMBERS AFFILIATE PROGRAM MASHBURN ENTERPRISES, LLC 4045 Sheridan Avenue #223 Miami Beach, FL 33140 Telephone: 859.230.1771 Primary Representative: Jamal Mashburn THE VILLAGE WELL 7600 Roosevelt Road Forest Park, IL 60130 Telephone: 708.697.5335 Fax: 708.697.5339 Primary Representative: Benjamin Daniel

INTERNATIONAL BOTTLER PACIFIC WATER COMPANY PO Box 3440, Afolau, Mulifanua Apia, Samoa Telephone: 011.685.46300 Fax: 1.011.685.46488 Primary Representative: Salome Bale

BOTTLER MOUNTAIN BROOK WATER 100 Avenue C Kentwood, LA 70444 Telephone: 985.229.2490 Fax: 985.229.2492 Website: www.mountainbrookwater.com Primary Representative: Jason Chambers

CALENDAR 2010 ROCKY MOUNTAIN WATER COMPANY 462 West 3600 South Salt Lake City, UT 84124 Telephone: 801.263.8888 Fax: 801.263.9374 Website: www.rockymtnwater.com Primary Representative: Clay Groesbeck

IBWA Regional Plant Tour Diamond Springs Water Company Charlotte, North Carolina Calendar 2011

CALENDAR 2011

DISTRIBUTOR WATERS-DORSEY DESIGNS 21545 Clear Creek Road, Suite 2 Bristol, VAv24202 Telephone: 276.669.6062 Website: www.www.watersdorseydesigns.com Primary Representative: Gary Waters

SUPPLIER BARNUM MECHANICAL, INC. 9244 Old State HWY, Ste. 113 New Castle, CA 95658 Telephone: 916.652.7223 Fax: 916.652.5147 Website: www.barnummech.com Primary Representative: Tom Barnum VELOCITY EQUIPMENT, LLC/ VELOCITY H2O SOLUTIONS DIVISION PO Box 7035 New Castle, PA 16107 Telephone: 800.521.1368 Fax: 724.658.5720 Website: www.velocityh2o.com Primary Representative: Nicki Remley

ADVERTISERS COMPANY

DECEMBER 10, 2010

JANUARY 31FEBRUARY 3, 2011 IBWA Winter Board of Directors and Committee Meetings Scottsdale Hilton Resort and Villas Scottsdale, Arizona "FEBRUARY 23-26, 2011 Joint SEBWA & MABWA Convention and Trade Show Renaissance Pere Marquette New Orleans, Louisiana

APRIL 2, 2011 NEBWA Spring Conference Mystic Hilton Mystic, Connecticut "APRIL 28-30, 2011 SABWA Annual Meeting and Golf Tournament Wyndham Virginia Crossings Hotel & Conference Center Glen Allen, Virginia

MAY 11-14, 2011 WEBSITE

PAGE

Allied Purchasing . . . . . . . . . . . . . . . . www.alliedpurchasing.com . . . . . . . . . . . 14 Blackhawk Molding Co., Inc . . . . . . . www.blackhawkmolding.com . . . . . .IFC, 14 Clover Company Limited . . . . . . . . . . www.clovercooler.com. . . . . . . . . . . . . . IBC Edge Analytical . . . . . . . . . . . . . . . . . www.edgeanalytical.com . . . . . . . . . . . . . . 3 IDEXX . . . . . . . . . . . . . . . . . . . . . . . . www.idexx.com . . . . . . . . . . . . . . . . . . . . 20

NWBWA Annual Convention and Trade Show Red Lion Hotel Seattle, Washington "JUNE 13-16, 2011 IBWA June Board of Directors and Committee Meetings Park Hyatt Washington, DC

Nevada Computer . . . . . . . . . . . . . . . www.nevadacomputer.com . . . . . . . . . . . 22 Polymer Solutions International . . . . . www.prostack.com . . . . . . . . . . . . . . . . . . 5 Sigma Home Products Co Ltd. . . . . . www.sigmahomeproducts.com . . . . . . . . 22 Tomlinson Industries . . . . . . . . . . . . . www.tomlinsonind.com . . . . . . . . . . . . . . 18

"SEPTEMBER 26-30, 2011 2011 IBWA Convention and Tabletop Trade Show Hotel TBD Las Vegas, Nevada

Water Quality Association . . . . . . . . . www.wqa.org . . . . . . . . . . . . . . . . . . . . . 13

DEC 2010/JAN 2011

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¥GR[K"UL"OH]G"SKSHKXYNOV KEN CALLAWAY AND PHEBE ROBERTSON CALLAWAY BLUE SPRING WATER HAMILTON, GEORGIA “Our company’s story is really about the source, which has been in our family for more than 80 years,” says Ken Callaway.

ALL ABOUT KEN Ken got his first job at the age of 12, as a newspaper delivery boy in Columbus, Georgia.

Despite his relationship to cousin Ely Callaway, founder of Callaway Golf, Ken plays only three times a year and will not disclose his handicap.

Ken is a passionate water-skier and belongs to an “old men’s ski club.” Wearing a dry suite, he skis year-round in the Chattahoochee River and Georgia lakes.

Callaway’s grandparents purchased the source and the surrounding land around 1930, turning much of the contiguous real estate into the world-famous Callaway Gardens attraction. he elder Callaways were ahead of their time, focusing on conservation and man’s relationship to nature. hey always knew they had something special with the deep blue water, which was confirmed by independent testing sponsored by President Franklin D. Roosevelt, who sought out Georgia springs as a possible cure for his polio. he Callaway water is filtered through Hollis quartzite into water so pure that it has only 31 total dissolved solids (TDS) right out of the ground. he bottled water company was founded in 2001 by Ken’s father, Cason Callaway, Jr., who continued the family’s commitment to conservation by becoming the first bottler in the world to use biodegradable packaging. Ken left his career in specialty chemicals in 2006 to join the company.

“I found that the biggest challenge of adapting to the bottled water industry was in appreciating the challenges of compliance and hygiene, issues related to the nature of producing a food-grade product,” he says. Fortunately, the Callaways found IBWA. “he value of our IBWA membership has been in getting to know people who can be helpful to our business: vendors, customers, even competitors,” says Callaway.

Callaway also cites the value of IBWA’s educational offerings on compliance and technical issues; his sister, Phebe Robertson, is Callaway Blue’s chief compliance officer and a Certified Plant Operator. “IBWA certification brings us instant credibility with prospective customers,” Ken says.

Although Callaway Blue’s customers have not expressed a lot of concern over bisphenol-A (BPA), Callaway turns to IBWA for assistance with public relations efforts. He sees strength in numbers for combating some of the industry’s public-image challenges: “I personally believe that the negative press bottled water has received can best be addressed by the industry’s universal adoption of biodegradable packaging and encouraging recycling,” he says.

A decade after its founding, Callaway Blue now has 20 employees and bottles about 5 million gallons per year. “Phebe and I are the fourth generation here,” says Ken. “We do hope to maintain Callaway Blue as a family business through the next generation and are working on strategies to preserve it.”

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Quick Facts about Bottled Water 32.6: The percentage, in average gram weight, that the standard 16.9 ounce “single serve” bottled water container dropped by from 2000 to 2008. The average bottle weighs 12.7 grams.

1.3 BILLION: The pounds of plastic resin that have been saved by the bottled water industry through container light-weighting.

169 MILLION: Amount, in tons, of the total U.S. Municipal Solid Waste stream in 2007.

0.33: Percentage of the total U.S. waste stream that is made up of water bottles.

0.08: Percentage of the total United States greenhouse gas emissions that can be attributed to small pack and “water cooler”-sized bottles.

31.0: Percentage of plastic water bottles recycled in 2009 – the highest percentage for any plastic beverage container.

16.6: Percentage of plastic water bottles recycled in 2004.

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