Issue 26 | Cooler Innovation by FoodBev Media Ltd

COOLER innovation

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Thinking inside the box

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Kieran McKenna, Aqueduct

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SPECIAL REPORT

Mains-fed manufacturing

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Bottling and storage

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A look at today’s hot topics.

Cooler views Mike Hurst continues his look at the check items on the EBWA Distributor Audit.

EBWA matters News from European Bottled Watercooler Association.

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Rack & roll cooler innovation explores behind the scenes of the cooler’s 5-gallon bottled water industry.

EPDWA matters News from the European Point of use Drinking Water Association.

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Marketplace cooler innovation products and services guide.

Light at the end Welcoming the latest arrival to the cooler community.

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Eastern promise Eastern Europe regional update.

www.foodbev.com/cooler Issue 26 - April · May 2010

CONTENTS 3

The editor’s view

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Hello and welcome

e’ve had a mixed bag of a month in the land of water coolers. With the recent Zenith report predicting growth for the industry and WQA’s high-spirited, forward-thinking Aquatech trade show and conference, there’s evidently a lot to smile about. But of course we also received devastating news concerning the collapse of PowWow Water and the hundreds of employees and thousands of customers literally left dry. It could be the recession taking a one-off bite, or as Kieran McKenna talks about in our cover story it could be indicative of how older business models are becoming obsolete. Kieran has a whole new bag in box system to share with us, and the industry; but as we discover in our market

Young ambition Enthusiastic, hardworking and free - now that’s a dream employee; and at cooler innovation we had the pleasure of welcoming one on board in the form of 14-year-old Emily Cowls, who chose to carry out a day of her work experience fortnight with us. Emily did a great job, researching and contributing a feature on water footprinting for our Media Filter page and giving us a writeup on her time with the European Vending Association.

COOLER innovation

profile of East Europe, those older business models are still alive and thriving. It’s evident the water cooler industry’s global progress is staggered - good in terms of keeping afloat as an industry and maintaining momentum, but also interesting in terms of consumer mind-set and

Aquatech’s reward A personal best, says cooler innovation’s Joanna Shilton. It was great to see so many familiar faces at WQA Aquatech USA this year and it’s always great to catch up with existing clients and new readers! Attending shows for me is all about learning what’s going on not only in the industry but also with all of you - face to face - and finding out how you feel about the future of the water cooler industry. Familiar faces in Orlando included all at Norit Filtrix (a Platinum Sponsor), PHSI, last month’s cover stars MTN,

product supply and demand. While mains-fed is but a whisper in many catch-up countries, its voice in the West is getting louder. In this issue we take a look at how mains-fed manufacturing is securing its position. And with hot competition and subsequent challenges to thought and design processes, Fairey Industrial Ceramics on the Doulton Stand and also AquaCure, represented on the Chester Paul Company stand. Clover and Coway were both there with Asian and US support, and other cooler innovation regulars, including Pro Products, Natural Choice and Crystal Mountain. It was pleasing to finally meet the faces from Thermo Concepts

Rachel Delahaye

with emerging eco- and cost-effective technologies, it can only mean one thing: the cooler industry is just wetting its lips. and SIP Technologies and all who support cooler innovation. I hope we have strengthened all those relationships and I look forward to working out how we can provide you with what you want and need from us over the coming months and years. Read the review of the WQA Aquatech on page 58.

cooler innovation

Jo with Frank van Heusden

would like to apologise for an error in issue 24 where a Crystal Mountain water cooler was given an Ebac caption.

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www.foodbev.com/cooler Issue 26 - April · May 2010

EDITORIAL 5

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International cooler industry news

Business PowWow Water mothballed

ffice water cooler company PowWow Water was taken into administration on March 25 by Deloitte.

Cash flow problems were said to be the cause of PowWow’s demise, and rather than operating it as a going concern the decision was taken to close the firm, effective immediately. PowWow Water, whose headquarters are in Oxfordshire, broke the news to its staff as they turned up for work. Administrator John Reid

told the Oxford Mail: “The company has been suffering severe cash flow problems. We intend to mothball the business while seeking a purchaser for the business and assets. Unfortunately the majority of the staff will be made redundant while we consider the options for the business.” In response to the news Phillipa Clow from the

BWCA made this comment on the Foodbev website: “While many operators view the situation as a great opportunity to win customers, our view is that this unfortunate failure only further damages the long-term prospects and market stability of our industry . . . This sudden change in the market has only confirmed the need for companies to offer a comprehensive and full product range of both POU and bottled water coolers.”

PowWow has nine distribution centres across the UK and two production sites, with around 50,000 customers and a total of 360 staff. PowWow was Watsons’ rebranding of its UK and then European cooler operation nearly a decade ago - and was sold to Nestlé Waters in 2003. Lomond Hills then took over the business last January. At the time of writing there has been talk of a buyer for the business.

Water cooler market should return to growth enith International’s 2010 UK bottled water market report shows that overall volume sales grew by 1.4% in 2009 to 2,090 million litres. Retail sizes of less than 10 litres, which accounted for 85% of the total, achieved 4.7% growth. In contrast, the bottled cooler market declined by 12.5% as mains-fed water coolers continued to win new business in offices across the country. “There are five key dynamics in the UK bottled water market at the moment and they are not all pointing in the same direction,” commented Zenith chairman Richard Hall. “We have always believed that the benefits of convenient healthy hydration create an

underlying momentum towards long term growth. “Against that, concerns have been raised about environmental impact, but these are progressively being answered. The economic downturn has been another adverse factor in the past two years, putting greater emphasis on value for money. “The weather is also an important variable being very poor in both 2007 and 2008, but somewhat more favourable in 2009.

Finally, the water cooler segment has changed dramatically, from rapid growth in bottles to even higher consumption from mains-fed, but which no longer counts in our packaged volume calculations,” he concluded.

consumption, compared with 22% in 2003.

Findings of the Zenith report include:

• The top five retail brands by volume are Evian, Highland Spring, Volvic, Buxton and Aqua-Pura.

• Still water was responsible for 87% of 2009 volume and sparkling water 13%. Natural mineral water took a 61% share, spring water 27%, purified water 2% and other waters 10%. • Locally produced waters accounted for 78% and imported waters 22%. Bottled water coolers have fallen to 15% of

• Packaged retail volumes are 9% higher than five years ago. • The most popular retail pack size is 50cl, followed by 2 litre and 1.5 litre.

• Of the top 10 retail brands, five are English, two Scottish, one Welsh and two French. Zenith’s forecasts anticipate continuing moderate overall growth, taking sales up a further 12% to 2,340 million litres by 2014.

8 NEWS

www.foodbev.com/cooler Issue 26 - April · May 2010

Source: Zenith International

Business

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Mains-fed boosts UK water cooler market

n 2009 the cooler market fell by 2%, and while it’s disappointing there is some comfort in the fact that the rate of decline is slowing. Leading food and drink consultancy Zenith International’s 2010 UK water cooler market report shows that there were a total of 682,000 coolers installed at the end of 2009. Considering the challenging economic climate and the absence of a long hot summer in 2009, this is positive news for the industry. Zenith Director Mark Groves said: “The concerted efforts of operators to maintain high levels of customer service, to promote the

hydration benefits of water and to increase their focus on profitability benefited the industry in 2009.” The increase in mains-fed purchase is also marked as a significance in the slowing of rate of decline. Its share of the cooler market is now 42%; five years ago it was just 18%. The balance of UK water cooler dynamics continues to shift in favour of mains-fed and with that in mind, most bottled water cooler companies are now offering both bottled and mains-fed units.

Brita’s bite

he Canadian arm of filter company Brita has spent $2 million on a batch of 60-second prime time ads.

The campaign takes a direct hit at the bottled water market, depicting a world overrun with plastic bottles and accompanied with the statement: the Earth needs Brita. With melancholic music and moving images, like a pet puppy trying to

cross a carpet of waste, the campaign is an emotional one. “When you want people to make a change, sometimes you have to let the emotion do the talking,” said Andrew Simon, of the creative agency DDB Canada, which produced the campaign.

A cool takeover for Waterlogic

aterlogic Norway is has announced the completion of its Asset Purchase Agreement for the acquisition of rival water dispenser operator, Cool Chili AS, Norway. Cool Chili, located in Oslo, has been selling mainsfed water coolers in the Norwegian market since 2002 and is the fourth largest operator in the region, according to a report by Zenith International. Matthew Lee, Managing Director of Waterlogic Norge AS, said: “The Cool Chili business model of rental, service and coffee complements our current Oslo business and is part of Waterlogic’s

overall Scandinavian expansion plan to grow organically and through acquisitions of this nature.” The acquisition of Cool Chili significantly increases Waterlogic’s market share in Norway and confirms Waterlogic as the overall market leader in the Norwegian water cooler market. Waterlogic Norway is a subsidiary of Waterlogic International, global manufacturer of mains-fed water dispensing systems.

International Paper joins the AVA

nternational Paper Foodservice Europe has said that it intends to target the vending market by joining The Automatic Vending Association (AVA). “We share the AVA’s mission of improving the quality of vending and of making sure customers can have confidence when dealing with a member company,” said Mike Gardner, International Paper’s Sales and Marketing Director. AVA Chief Executive Jonathan Hilder said: “It’s really pleasing that a company as substantial as IP has decided that its ambitions in the UK vending marketplace are best served by joining the AVA.”

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www.foodbev.com/cooler Issue 26 - April · May 2010

NEWS 9

Business

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Nestlé Pure Life partners Keep America Beautiful

he USA’s leading bottled water brand Nestlé Pure Life has announced a four-year partnership with the Great American Cleanup campaign, and its position as the campaign’s official bottled water. Nestlé Waters North America Vice President of Marketing, Rick Tanner said: “Nestlé Pure Life bottled water has a long tradition of striving to keep families and their communities healthy. “Not only is water one of the healthiest beverage choices, but every Nestlé Pure Life bottle is recyclable, and we continue to innovate and reduce the amount of plastic in our bottles.

“We are proud to support Keep America Beautiful as part of our shared mission in creating healthier communities.” Nestlé Pure Life will be the official supporters of Keep America Beautiful’s (KAB) biggest publicity and community event until 2013 and the partnership will focus on increasing recycling rates nationwide through an awards scheme. The top

Heckmann bets on water

ichard Heckmann and investors of his business, Heckmann Corp are betting water will be buoying revenues in 2010. In 2008 Heckmann bought water-bottling firm China Water and Drinks Inc but hit trouble with recorded losses of $395.4 million in 2009 because of a costly goodwill impairment charge it took on its purchase of the company. Recently, however, Richard Heckmann announced China Water fourth-quarter profit of $436,000, with 65% of the revenue coming from order from The Coca-Cola Company. This year he expects to ship 500 million bottles, including his own brand of flavoured drinks.

H2O Innovation and 3M extend agreement to Canada

ollowing the recent agreement that 3M would represent H2O Innovation in the US oil & gas and automotive markets, a second agreement has been made, extending sales representation to Canada’s oil & gas and automotive assembly markets. “In addition to extending the geographical reach of the initial sales representation agreement, this second agreement demonstrates 3M Purification's commitment to making its partnership with H2O Innovation a successful business initiative

for both parties,” said Frederic Dugre, President and CEO of H2O Innovation. Rick Orser, Business Manager, 3M Purification said: “Whether it's the use, potential re-use or treatment of water, this market

25 KAB affiliates collecting the most PET bottles per capita during the cleanup events will receive a total of $25,000 from the big water brand. Throughout the campaign it’s estimated three million volunteers will join in with community improvement events, from recycling to communal area maintenance and clean-up projects. “Keep America Beautiful is thrilled to partner with Nestlé Pure Life bottled water,” said Matthew McKenna, President and CEO of Keep America Beautiful.

“Together, we can engage individuals nationwide to take greater responsibility for improving their community's environment.”

Waterlogic buys Newtech Aps Denmark

ontinuing Waterlogic’s Northern Europe expansion plans, Waterlogic Denmark has announced the completion of its Asset Purchase Agreement for the acquisition of rival water dispenser operator and distributor Newtech Aps. Newtech Aps has been selling mains-fed coolers in Denmark since 1997 and is reported to be the country’s second largest operator. Managing Director of Waterlogic Denmark AS, Matthew Lee, said: “The

Newtech business of rental, service and distribution compliments our own business and acquisitions of this nature are part of our overall Scandinavian expansion plan.” This acquisition comes just weeks after Waterlogic Norge’s purchase of rival cooler company Cool Chili and will significantly increase the market presence of Waterlogic in Denmark, confirming its clear leading position in the Danish mains-fed water cooler market.

continues to grow in terms of importance to our endusers making it a significant strategic space for 3M.

highly differentiated, high value products aligns H2O Innovation well with 3M Canada.

“Our common focus on opportunities, shared culture of innovation and combined commitment to providing

"We look forward to leveraging our shared expertise with this business relationship.”

10 NEWS

www.foodbev.com/cooler Issue 26 - April · May 2010

Business

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Frost & Sullivan awards HaloSource

Primo Water Corp floats again

lean water technology company HaloSource has won Frost & Sullivan's 2010 Technology Innovation Award and 2010 Hot Investment Opportunity Award for its HaloPure Drinking Water Disinfection Technology.

Chief Executive Officer (HaloSource), John Kaestle said: “We are delighted to have been recognised with these awards. We are constantly developing our technology so we can build a business offering cleaner, clearer and safer water solutions. Frost & Sullivan's endorsement will support the development of partnerships and help broaden our geographic reach in international markets.”

Part of Primo's successes have come from a business model built around consumers exchanging an empty Primo bottle for a full one at displays at retail stores, and Primo Water reuses or recycles the empty bottles it collects.

The Award for Technology Innovation in the North American residential water treatment market was awarded for a non-electric drinking water disinfection technology, HaloPure BR. The technology is designed to kill bacteria and viruses present in mains-fed drinking water, using a contact biocide technology that attacks and kills viable or harmful microbes in seconds. Requiring no piped water or electricity, HaloPure BR

can be applied to a variety of applications providing primary disinfection, safe storage and control of biofilm. “With more than 85% of the under-developed world's diseases linked to contaminated drinking water, the HaloPure technology is ideally suited to meet stringent water treatment needs,” said Frost & Sullivan Research Analyst Shilpa Tiku. “Another key advantage of HaloSource's robust technology is that it can be incorporated into virtually any . . . (mains-fed) device. The fact that more than a million units using HaloPure are now in service across India and HaloSource has active partners in China, Brazil and Europe is a testimony to its superior performance and high return on investment. It has built multiple new applications for its technology and recurring revenue streams from the replacement business.”

Freshwater expands UV distribution

reshwater Technologies has announced it is to expand its Ultra Violet (UV) drinking water applications to six Latin American countries where it has established local partnerships. Freshwater, through its distributors, has been able to identify certain areas, both residential and commercial, that are ideally suited to the affordability of the Viqua UV product

line. Viqua produces the Sterilight brand of UV drinking water disinfection systems, affordable enough for individual homeowners and smaller commercial installation, alongside a broad range of water products such as water softeners, media filters and filter housings and filter cartridges, parts and accessories.

illy Prim, CEO of Primo Water Corp has announced his plans to pursue a $60 million initial Public Offering for the company on the Nasdaq stock market.

However, the company has not had a profitable year since it was founded in 2004. It has high-profile competition for 3- and 5-gallon water dispensers and packaged sales of individual bottles. But Primo has expressed confidence that it will gain

sales and market share because of its strong distribution channels, including Costco, Kmart, Kroger, Target and WalMart. Primo also believes when people become aware of its green credentials – in 2008 it began using biodegradable water bottles – sales will increase. “Gaining market share will be challenging, given that consumers continue to cut back on their spending, and there tends to be less brand loyalty in bottled water than other beverage categories,” said Managing Director of Beverage Marketing Corp, Gary Hemphill. “However, there is increasing consumer concern regarding the environment and plastic water bottles. Having a biodegradable bottle is a benefit that will resonate with some consumers.”

BPA leaches into headlines once again

three-year study carried out by the US Environmental Protection Agency (EPA) has revelealed that BPA - feared to disrupt the body’s endocrine sex hormones - did not affect laboratory rats even when they were fed doses several thousand times higher than the maximum exposure experienced by humans. “The results [of the study] are unequivocal and robust

and are based on a valid and rational scientific foundation,” said Professor Richard Sharpe, of the Medical Research Council's Centre for Reproductive Biology in Edinburgh. But far from putting the matter to bed, the study has been described as “flawed” by some scientists who remain convinced that the chemical is dangerous, even in low dosage.

12 NEWS

www.foodbev.com/cooler Issue 26 - April · May 2010

Innovations

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The Editor’s pick of the latest products

Aqua Cure’s green clean

he official launch of Aqua Cure’s cleaning product line, Aqua Dosa, suitable for coolers, UV and RO sanitising, took place at the recent WQA Aquatech trade fair in Orlando, Florida. The products are being made available in the US through the Cooler Division of the Chester Paul Company, Linis Pure Water Systems, headed up by Scott Bailey, formerly head of PHSI sales and marketing in the US.

ollowing interest in their pre-production model, the hot & cold version of Ebac’s FMax mains-fed water cooler has gone into production. The model has two filters, each specific to the hot and cold water dispense. “Ordinary hot & cold coolers use one filter, typically containing polyphosphate, to treat both the hot and cold water,” said an Ebac

Because Aqua Dosa breaks down into water and oxygen without leaving toxic byproducts the range has also been given a Green Apple environmental award.

spokesperson. “This reduces the build-up of calcium in the hot tank, but since the cold water is also treated an unpleasant scum can be left on the surface of the cold water.” Chairman of Ebac, John Elliott, said: “The FMax mains-fed Direct Dispense system features two separate filters for hot and cold water allowing the use of the ideal filter for each application. The cold filter is the same 0.5micron carbon block filter used in the cook & cold cooler whereas the hot filter contains Ion-exchange material, which prevents scale from entering the hot tank. The Ion-exchange material totally eliminates scale and ensures the hot tank requires no regular maintenance.

Brita looking brighter

Ebac launch Hot & Cold FMax

rita has launched a striking new collection of water jugs in spring green, sunflower yellow, vibrant fuchsia and tangerine orange. It’s a bright move away from Brita’s usual black and white jugs, but the company is hoping the palette will appeal to magazines for photoshoots and to families wanting a splash of colour in their kitchen themes.

“Creating a maintenance-free hot & cold cooler is another ground-breaking achievement from Ebac. Building on the innovative features of the cook & cold unit, the Hot & Cold FMax uses revolutionary technology to offer maximum hygiene and superior performance.”

14 PRODUCT NEWS

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Asset Italia’s on the nozzle

ith water dispensers there often remains a small amount trapped within the nozzle after each delivery, which is then in contact with the environment. To solve this problem Asset Italia has invented O3 TECH - Ozone Nozzle Sanification. The technology promotes complete drain-off of each water supply of both the electromagnetic valves and the circuit that connects them to the point of delivery; the last part of the circuit supply is sanitised using Ozone, which is produced within the dispenser itself. In case the dispenser stands unused for some time a series of periodic cleaning is still carried out, reducing the bacterial load developed in the nozzle. Asset’s other related, hygiene-conscious invention involves the insertion of Anti Bacteria Cooled Valves directly in

the head of the carbonator. The low temperature inside the head of the gas generator/producer is transferred by thermal conduction to the electromagnetic valves; the low temperature considerably reduces the possibility of bacterial load proliferation within the circuit and significantly reduces the water content inside the hydraulic circuit of the dispenser. The polymer mixture used by Asset to print both the head of the gas generator/producer and the electromagnetic valve block contains a bacterial load destroyer (bacteriostatic) - produced by BASF - to optimise and improve performance.

www.foodbev.com/cooler Issue 26 - April · May 2010

PRODUCT NEWS 15

Innovations

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Locking water filter

pecialty Media has launched a locking water filter. The US-patented and EU patent-pending product permits only authorised personnel to remove the filter cartridge after installation, to protect against tampering and malicious contamination. The locking technology can be incorporated into virtually any filter system while maintaining current certifications.

Cosmetal to launch new Jet

osmetal’s Jet water cooler will be available in a new version: Jet Super Hot. Jet super hot has an increased heating capacity that dispenses 17 litres per hour and 1.8 litres in one go of hot water at 97˚C. The cooler, designed for those who beside chilled water wish to prepare hot drinks, is available in counter top and under counter versions, freeing up valuable area above the counter. Cosmetal say that the Jet Super Hot is constructed from the finest materials available and features modern technology and can be supplied in combination with a range of ergonomically designed taps.

16 product news

www.foodbev.com/cooler Issue 26 - April · May 2010

Innovations

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3M launches new range of mains-fed filters

esigned as a more ecological and cost-effective choice for operators of cold water dispensing machines, 3M has put to market new AP2-G filters that use 53% less plastic than the original AP2 range, due to smaller cartridge dimensions. 3M’s technology enables a smaller carbon block matching the flow rate and capacity of the current AP2 filters, achieving the same micron ratings to remove unwanted components from the water, with an added option of a scale inhibitor. The AP2-G can also be recycled by separation into its components to promote recycling of plastic filter housings. The filters retain the Sanitary Quick Change (SQC) fitting, allowing for installation in a matter of seconds without having to shut off the water supply.

Katie Gibbs, Marketing Executive of 3M’s Purification Division, said: “Mains-fed water coolers incorporating efficient, high quality filtration represent the most environmentally responsible way to refreshing, clean drinking water in premises such as offices, factories, waiting areas and entertainment venues. “3M’s new AP2-G filter makes an even more convincing case by simultaneously reducing costs for operators and helping businesses to become carbon neutral.”

EO Water’s intelligent taps

ntelligent Taps for hand washing are the latest addition to the ROX range.

Water flow is accurately timed and the water is illuminated. The tap sensor is triggered by hands being placed underneath it, immediately dispensing a 15 second stream of alkaline (cleaning) water, illuminated by a blue light, followed by a 15 second stream of acidic (sanitising) water, illuminated by a red light.

The ROX range transforms ordinary, softened, tap water into alkaline water and acidic water. The water is completely safe - even if ingested - yet is claimed to be far more potent than most chemical-based cleaners and sanitisers. It is also reported to be 100% environmentally friendly and cost effective.

Seychelle portable filters carry near-perfect technology

he new Proprietary Water Filters by Seychelle Water Filtration Products boast on-hand drinkable filtered water.

Carl Palmer, President and CEO of Seychelle Water Filtration Products, said:

to travel through and causes contaminants to adhere to the filter.”

“Our Proprietary Portable Filtration System with Ionic Adsorption Micron Filtration (IAMF) is not a carbon filter as other companies are using, but is made out of powder activated coconut and other proprietary medias that result in a torturous path for the source water

Seychelle’s IAMF takes out up to 99.99% of the contaminants (as defined by the EPA) in tap water or any other water source other than salt water, leaving in trace minerals salt, calcium, magnesium, potassium and phosphorus. The filter has been tested extensively by independent Government

laboratories in the US and throughout the world to strict EPA/ANSI protocols and NSF Standards 42 and 53. Mr Palmer said: “Since 70% of the water people consume is away from home, the filter is designed for portable application and as a result, is convenient to take anywhere away from home in recyclable bottles. The Seychelle bottles are . . . BPA-free and protect the environment by ‘going green’, unlike single use

bottled water (PET) that use millions of barrels of oil to produce and transport.” There are three versions of the filter: fast flow for use with tap water and as a bottled water replacement; standard for use with other fresh water sources such as rivers, streams, ponds and creeks; and advanced for use in extreme conditions such as disaster relief in Haiti and Chile, and in third world countries where drinking water might not be disinfected.

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PRODUCT NEWS 17

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Aquaovo launches luxury model

Kleena Coola’s new products

ollowing the success of Ovopur and Ovobar, Aquaovo has launched a limited edition collection of its high-end ceramic home filters. The Caviar Legato, Caviar Marcato and Caviar Staccato carry the same components and technology as the original models but a higher price tag for their slick designs, aimed at the luxury homewares market. The company the brainchild of Canadian inventor/designer Manuel Desrochers - has also launched the Therm-O, a double-walled glass Right: Thermo - an eco, thermal double-paned glass vessel Above: The Caviar Marcato

thermos. The 500mlcapacity container has a BPA-free glass body, removable stainless steel tea strainer and a watertight twist cap.

cale away: Kleena Coola has added to its catalogue of cooler innovations a Scale Inhibitor. The line is placed before the filter, reducing the need of a scale-reducing filter, with the aim to save money at each filter exchange. Peeling safety conscious: Kleena Coola is also now supplying warning stickers for coolers. The Hot Water alerts come in easy-peel rolls of 500.

Drop-Top catch

he Drop-Top is a newlypatented container closure with an internal multi-cavity design that stores combinations of liquids, powders, gases, granules or tablets. All can be stored separately and safely from air and liquid until right before consumption or use. The Drop-Top is available with a single or double chamber, which ensures the contents in each chamber remain separate from each other and the contents of the main container until activation, through twisting the device. © cooler innovation 2010. Reproduced with the kind permission of FoodBev Media - www.foodbev.com For details about syndication and licensing please contact the marketing team on 01225 327890.

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Events

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EBWA Committee Meetings, Board and Annual General Meeting 2010 When: 27-28 April Where: Marriot Hotel, Parkring 12a, 1010 Vienna Info: www.ebwa.org; www.viennamarriot.com Who should participate in the meetings? Committee Meetings: chairmen and representatives of each committee and subcommittees.

All EBWA Members in good standing may attend meetings as ‘observers’. Please see previous issue of cooler innovation for agenda, or contact EBWA directly.

National Associations Meeting: All chairmen of national associations or their officially appointed representatives. If unable to attend please send an official representative (EBWA to be informed by email) or fill out the Proxy Form.

Board Meeting & AGM: chairmen of NAs; chairmen of the committees; representatives of Supplier Committee; co-opted board members. If unable to attend please send your official representative (EBWA to be informed by email) or fill out the Proxy Form.

www.foodbev.com/cooler Issue 26 - April · May 2010

EVENTs 19

Events

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16th European Bottled Water Association (EBWA) Show When: 25-27 October Where: Prague Info: Full programme details to follow

This is the third tabletop event in EBWA’s programme, which involves a more informal industry show in the year between major trade fairs.

Prague has been chosen in order to attract the widest possible attendance. Situated in the heart of Europe, it is easily reached from all major cities, including the emerging markets of East Europe. Two days of trade fair will run alongside comprehensive conference sessions, as well as the EBWA Chairman’s Reception and Cocktail Party.

The event will be organised at the Intercontinental Hotel, located on the banks of the Vltava River, an easy walk from Old Town, Charles Bridge, the Jewish Quarter and Prague Castle.

This will be the only trade fair this year.

ACE10 - Annual Conference and Exposition by the American Water Works Association When: 20–24 June Where: Chicago, Illinois, US Info: www.awwa.org/ace10 ACE10 is a one-stop shop for targeted training in the water industry, with workshops and exhibitions

of available technology. With more than 100 professional sessions and presentations, water resource sustainability, system sustainability, workforce sustainability and economic sustainability is on the agenda. It’s a chance to learn, consolidate knowledge and network, with trade shows featuring more than 500 providers of technology and services.

Membranes in Drinking and Industrial Water Treatment (MDIW) 2010 When: 27-30 June Where: NTNU, Trondheim, Norway Info: www.mdiw2010.no Initiated by Prof Jan Schippers, Head of the Membrane Committee of IWSA, and hosted by EDS, IWA, AWWA and JWA together with local organisations, MDIW 2010 is the continuation of meetings to address the

most recent developments in membrane technology. MDIW 2010 Trondheim aims to follow and promote the tradition set by the series of events marked by 1995 - Paris, Vivendi; 1997 - L’Aquila, EDS;

1998 - Amsterdam, IWSA; 2000 - Paris, Ondeo; 2002 - Mulheim, IWW; 2004 - L’Aquila, EDS; 2007 - Harrogate, Cranfield; and 2008 - Toulouse, INSA. Themes covered in the conference series include the treatment of groundwater, river, lake, brackish and seawater sources as well as filter backwash water, industrial

and domestic wastewaters with membrane processes. Processes covered have included reverse osmosis, nanofiltration, ultrafiltration, microfiltration, electrodialysis, hybrid membrane processes and combinations of membrane technologies to produce ultrapure water and to achieve zero liquid discharge.

See page 58 for a review of the WQA Aquatech show © cooler innovation 2010. Reproduced with the kind permission of FoodBev Media - www.foodbev.com For details about syndication and licensing please contact the marketing team on 01225 327890.

20 EVENts

www.foodbev.com/cooler Issue 26 - April · May 2010

Greener cleaner filters

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Innovations in mains-fed water coolers - delivering clean water and a clearer conscience

ains-fed water coolers are gaining popularity as an environmentally-responsible source of clean, great tasting, quality drinking water. By avoiding water bottling, transportation and disposal challenges, the mains-fed alternative provides businesses with the opportunity to enhance environmental performance and can help with efforts to become carbon neutral. Effective filtering of mains-fed water, at the point of use, is a crucial part of the sector’s success. Reducing elements such as chlorine removes potential unpleasant flavours, which can enhance the customer’s experience of the drinking water. Moreover, cooler providers and customers can enjoy the benefits and protection of filtration. These include the ability of systems to offer reduction of micro-organisms such as cryptosporidium and giardia cysts, as well as other potentially harmful chemicals such as lead and volatile organic compounds. Modern carbon filter technology is extremely effective in removing unwanted components such as these, to ensure a continuous supply of refreshing water free of the environmental concerns surrounding bottled-water coolers.

Filter innovation In the past, the need to have a trained fitter replace the filter regularly on a six-monthly basis as currently recommended by the European Point Of Use Drinking Water Association (EPDWA) - has helped create a perception that mains-fed coolers have a higher cost of ownership. This has changed with the arrival of cartridge-type filters using diversified technology company 3M’s innovative Sanitary Quick-Change (SQC) head, which requires only a quarter turn to remove or replace the filter. With no tools required and no need to turn off the mains water supply, 3M AP2 filters with SQC have successfully turned a 10-minute procedure demanding training into a task that can be accomplished easily in under two minutes. These units allow cooler

businesses to reduce staff training needs while increasing flexibility and productivity. Recently there has been some interest to determine if filter change-out can be extended from six months to 12 months. This would obviously significantly reduce the number of filters used, and the number discarded, thereby allowing businesses to further trim their costs and their carbon footprint. There are very good technical grounds for the existing six month change. These were derived after extensive research and effort in particular due to the potential growth of bacteria in cooler systems. Although there have been significant advances in filtration technology such as today’s silver (Ag)-enhanced carbon filters providing bacterial growth controls, changing filters on a regular basis provides a cleaner, fresher system. Because of the benefits achievable, work is ongoing into testing methods to determine suitability of systems for 12-months’ use and to investigate technologies to achieve and maintain water quality. 3M is committed to determine suitable technologies and practices for the future. This includes working on challenges to extending the service interval, including researching solutions, to enable cost-effective and reliable prevention of contamination throughout an extended service life for tomorrow’s mains-fed filters. At the same time as working with customers and industry bodies such as the EPDWA to determine suitable technologies and practices for the future, 3M is also working in the present

to deliver a continuous stream of environmentally-beneficial enhancements to its existing products. Perhaps one of the easiest aspects to improve is packaging; 3M’s AP2 family for mains-fed coolers have successfully reduced materials consumption.

Improving environmental performance Further advances to reduce environmental impact are about to be realised, with the arrival of a new generation of miniature cartridge filters. An example is the AP2-G evolution of the popular AP2 filter, which uses 3M’s carbon block technology. This matches the performance of the standardsize carbon filter block but has significantly smaller dimensions. This patented technology utilises a powdered, engineered media, combined with a unique binding matrix. The advanced media results in faster adsorption rates as well as enabling more efficient utilisation of the filter media. The smaller carbon filters match their predecessors in terms of taste and odour removal, as well as filtration performance, while still offering cyst reduction in accordance with National Sanitation Foundation (NSF) protocols. They are also available with an optional scale inhibitor, which can offer some protection for cooler components. The filtration performance is achieved using carbon-based technology. Unlike resin filters - which can be more expensive, carbon filters do not remove minerals from the water, which contribute to the overall flavour and drinking experience. Reducing mineral content for hot water applications has positive benefits, but can prove unbeneficial for cold water.

Smaller filter sizes The improvement in filter performance per cubic centimetre, achievable with 3M’s advanced

carbon technologies, allows the size of the filter’s outer housing to be reduced, taking advantage of the reduction in filter-block dimensions. This results in a significant reduction in the quantity of plastics used in the AP2-G mouldings, which not only reduces consumption of materials but also reduces the amount of energy required to produce each unit. Moreover, the filters are designed for recycling after use, thereby helping to improve the industry’s green credentials. The changes discussed represent valuable progress but some things will stay the same for the foreseeable future. The new filters retain the convenient SQC fitting of the earlier AP2 type, which allows coolers to accept the more environmentally-friendly units directly with no need for changes to any internal components. Filter change-out at end of life is also equally straightforward, preserving low service costs for owners and operators. As a further benefit of filter miniaturisation, replacement units require less storage space. The filter also occupies less space inside the cooler, which allows for easier service access. Ultimately, the arrival of smaller and more environmentally friendly filters will result in new generations of more compact and stylish water coolers, encouraging even greater adoption and opening valuable new opportunities in the fast-growing mains-fed sector. For more information about the new AP2-G range of filters, please contact 3M on 0845 602 5237 or visit www.3M.co.uk/filtration.

www.foodbev.com/cooler Issue 26 - April · May 2010

ADVERTORIAL 23

Drinking water

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Tree of life

enevolence is branching out as a cheap and efficient water purification procedure published in Current Protocals is being made free to download as part of access programmes under John Wiley & Sons’ Corporate Citizenship Initiative. The process, which uses seeds from the Moringa oleifera tree and can produce a 90-99.99% bacterial reduction in untreated water, is anticipated to help drastically in reducing the incidence of waterborne disease in the developing world.

“Moringa oleifera is a vegetable tree which is grown in Africa, Central and South America, the Indian subcontinent, and South East Asia. It could be considered

According to Science Daily online: “Moringa tree seeds, when crushed into powder, can be used as a water soluble extract in suspension, resulting in an effective natural clarification agent for highly turbid and untreated pathogenic surface water. As well as improving drinkability, this

technique reduces water turbidity (cloudiness) making the result aesthetically as well as microbiologically more acceptable for human consumption.” “Given that the cultivation and use of the Moringa tree can bring benefits in the shape of nutrition and income as well as of far purer water, there is the possibility that thousands of 21st century families could find themselves liberated from what should now be universally seen as 19th century causes of death and disease,” says Lea. “This is particularly mindboggling when you think it might all come down to one incredibly useful tree.”

Michael Lea, a researcher at Clearinghouse, a Canadian organisation committed to

low cost water treatment technologies for developing countries, considers the Moringa oleifera tree could play a huge part in the future of clean water provision in poor areas.

to be one of the world’s most useful trees,” said Lea. “Not only is it drought resistant, it also yields cooking and lighting oil, soil fertilizer, as well as highly nutritious food in the form of its pods, leaves, seeds and flowers. Perhaps most importantly, its seeds can be used to purify drinking water at virtually no cost.”

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EPA’s cup half full

he Environmental Protection Agency (EPA) has announced plans to overhaul drinking water regulations.

The new regulations are aimed at policing the hundreds of as yet, potentially harmful, unregulated chemicals in drinking water. “There are a range of chemicals that have become more prevalent in our products, our water, and our bodies in the last 50 years,” said EPA Administrator Lisa Jackson, who described the move as “a new vision for providing clean, safe drinking water.” While pollutants such as lead, copper and arsenic are examined on an

individual basis, collective investigation of other contaminant groups will mean new rules will be able to be applied to a whole range of chemicals at once. “This is a dramatic change in how we think about regulations,” said Cynthia C Dougherty, Director of the EPA's office of ground water and drinking water. “We’ll be able to move much faster and issue stronger rules.” The new rules are in development, with the help of experts and industry members.

Help is on tap

ubs and restaurants all over the UK are serving up tap water. But as members of the Tap Into WaterAid campaign, they’re asking customers for a charitable donation. The money raised will go towards WaterAid safe drinking water and sanitation projects, helping the world’s poorest communities. Editor of The Publican, Caroline Nodder said: “Most pubs

www.foodbev.com/cooler Issue 26 - April · May 2010

already offer free tap water but we are keen to show through the great things pubs do to help communities, such as raising huge sums for charity - despite the best efforts of government to make life tougher.”

NEWS 25

Drinking water

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Green Cross promotes Smart Water

reen Cross International (GCI) has announced the launch of the Smart Water for Green Schools project, together with hair product company Pureology Serious Colour Care. Through the construction and implementation of rainwater harvesting systems and ecological latrines, GCI will provide a reliable supply of water, hygiene and sanitation facilities, as well as environmental education to school children, teachers, and parents living in transboundary river basins around the globe. Green Cross says the exchange of experiences between schools of several countries along a river basin is a powerful tool for peace promotion and cross-cultural exchanges, especially in regions of tension over natural resources. By encouraging exchanges between schools in the same river basins, the partnership aims to promote smart water systems and water

conservation at local, national and international levels. The first schools started the pilot phase in February 2010 in Ghana and over the next 24 months the project seeks to expand to 40 schools in four river basins. “Selected pilot beneficiary schools and communities are faced with waterborne diseases such as malaria, bilharzia and diarrhea due to the lack of clean water. These diseases pose a serious threat to child enrolment in schools and their ability to receive basic education. Smart Water for Green Schools will go a long way in helping address the water situation in schools and communities in Ghana and around the world where GCI is present,” said Mubarick Masawudu, President and CEO of Green Cross Ghana.

Good news says WHO

ccording to a report from the World Health Organisation (WHO) the latest figures suggest 87% (5.9 billion people) are now using “safe drinking water sources.” The WHO/UNICEF Joint Monitoring Programme (JMP) report, Progress on Sanitation and Drinking Water 2010 Update, showed

the world is set to meet and possibly exceed the drinking water target set out in the Millennium Development Goals (MDGs).

Dr Maria Neira, Director for the Department of Public Health and Environment at WHO, said: “We all recognise the vital importance of water and sanitation to human health and wellbeing and their role as an engine

of development. The question now lies in how to accelerate progress towards achieving the MDG targets and most importantly how to leap a step further to ultimately achieve the vision of universal access.”

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Australia’s water crisis

btaining high quality water for Australia’s cities, towns and remote communities is under serious threat for the first time in 60 years, experts say. The country will need to splash out on urban water infrastructure over the coming years to deal with the ongoing affects of drought, at an estimated cost of A$30 million. But the challenge will be to accommodate short term political cycles without compromising the long term project.

& Veatch Vice President and Managing Director of South Asia Pacific said: “We need to spot signposts of change as early as possible and give policy makers and politicians expert guidance so that they can react quickly with an understanding of both short term and long term consequences. We must build flexibility into systems.”

The issue was raised at the global engineering company Black & Veatch media forum in Brisbane in March, where Eamonn Kelly, Black

Peter Binney, Vice President and Director of Sustainable Water Planning, said: “In Australia and the United States we are wrestling

with the larger issue of sustainable infrastructure and how it is funded, permitted and delivered. “Achieving changes in water demand patterns in a community requires education, an appeal to civic mindedness and pricing. Because water is often undervalued, it’s important to reflect full cost pricing in real dollars to help the public understand its true value,” he said. “The challenge is to ensure the public understands that it’s not just about cost and price but about value.” Tom Mollenkopf, Chief Executive of the Australian

Water Association said Australian governments are jeopardising future drinking water supplies by refusing to consider recycled drinking water as a solution. “Governments must be more innovative in their thinking but importantly, they must be prepared to take on difficult conversations that will deliver long term benefits to our growing population. Governments should be examining other alternatives now and that includes adding purified water to our drinking water supply,” he said.

www.foodbev.com/cooler Issue 26 - April · May 2010

NEWS 27

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Dry spells disaster in China China is suffering its worst drought in 100 years, leaving the provinces of Guizhou, Yunnan, and Sichuan, as well as the Guangxi region and the city of Chongqing, chronically short of drinking water.

Rainfall has been 60% below average since

September, which, in conjunction with the drought, has caused rivers to dry up, with a detrimental effect on farming and 17 million people short of drinking water. Emergency water supplies are being distributed in the droughtstricken areas.

Dried-up rice paddy field in Guangxi Province, Southern China

Drinks on them

he Coca-Cola Company and the US Agency for International Development (USAID) have announced they will invest $12.7 million to provide clean water in sub-Saharan Africa. The joint investment will go through their global partnership, the Water and Development Alliance (WADA) to support eight new threeyear programmes in Angola, Burundi, Ghana, Malawi, Mozambique, Senegal, South Africa and Tanzania.

WADA was established in 2005 and the investment takes the total money committed by USAID and Coca-Cola to over $28 million since 2005, to support 32 projects in nearly two dozen countries.

For the latest industry news, views and opinions, visit www.foodbev.com/cooler 28 NEWS

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Salt water solution

n the coastal town of Al Khaluf, Oman’s minister for water turned on a desalination plant that will provide the area with 100 cubic metres of fresh, clean water every day. The plant was sold by Modern Water, a British company that claims places such as Oman will become increasingly reliant on desalination as the world’s water resources are depleted. Modern Water’s patented ‘manipulated osmosis’ technology uses a chemical reaction to separate the salt from the water, which it says uses up to 30% less energy. Modern Water’s Chief Executive Neil McDougall, who founded and sold

Mid Kent Water before buying the desalination technology said: “It was the most exciting invention I had ever seen.” “The world’s population tripled in the 20th century while water consumption grew sixfold. Depleted water resources have implications for global security, health and life expectancy,” he said. “The earth’s surface is made up of 70% water. However, 97.5% of that is salt water, so we need to work out how to make it drinkable.”

Microsoft bottles out

icrosoft is sustaining its reputation as an environmentally-aware business by providing chilled mains-fed drinking water to staff and visitors in its Netherlands offices. While bottled drinks aren’t banned, the provision of biodegradable cups, dishwasherproof water bottles and Waterlogic mains-fed coolers, supplied by Watercompany, means the environmental impact of the offices’ operations will be considerably lessened. It has been noted that since the installation of coolers the consumption of bottled drinks has

www.foodbev.com/cooler Issue 26 - April · May 2010

halved, and the facilities team at Microsoft have also commented on the significant savings in cost and storage space. Watercompany donates 10% of the cooler rental or purchase price and 5% of maintenance costs over the contract period to the charity Earth Water. It is then forwarded to water related projects of the United Nations World Food Program.

NEWS 29

Associations

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IBWA’s zero Zero tolerance

YouTube video wars continue . . .

he International Bottled Water Association (IBWA) has filed a lawsuit against at-home water filtration company Zero Water for claims it has made about bottled water.

A press release released by IBWA said the suit was because of Zero Water’s repeated engagement “in false, misleading and unsubstantiated advertising designed to confuse consumers about its products and about how they compare to bottled water products.”

In it bottled water industry executives from Sparkletts, Nestlé Waters North America, Absopure Water and Eastman Chemical are quizzed on their concern for the environment and what their companies are doing to specifically meet their social responsibility. The probing questions come from a young teen passionate about her planet, and the answers she receives from the company representatives unveil a wide range of corporate initiatives, including conversion to hybrid trucks, lightweighting of plastic bottles, building LEED-certified bottling facilities, extensive efforts to recycle on a large scale, and adoption of new technologies that make producing PET plastics more energy efficient.

BWA’s consumer website www.bottledwatermatters.com has launched a new video about the bottled water industry’s corporate social responsibility on environmental issues.

Zero Water claimed it can “remove 100% of detectable dissolved solids” and stated that water without total dissolved solids (TDS) makes for “a healthier, cleaner, tastier water.”

to produce adverse physical health effects. In fact, the World Health Organisation has reported that certain concentrations of TDS may even have beneficial health effects.”

However, IBWA states in its lawsuit that TDS cannot determine water quality and the Association’s President Joe Doss commented: “Total Dissolved Solids mainly affect the taste of water and have not been shown

The press release also said Zero Water filters cannot remove all water impurities, as implied. It also said that Zero Water’s ads falsely refer to the Food and Drug Administration’s definition of purified water.

“In conversational discussions, IBWA members explain their companies’ environmental initiatives in a way that we all can understand how the bottled water industry is making a difference,” said Tom Lauria, IBWA Vice President of Communications. “In fact, many US companies are doing a number of the same things. Here, the important, diverse and simultaneous environmental initiatives being conducted by IBWA members, seen as a total package, are intended to achieve significant and measureable results.”

Appointments Pentair makes new appointments

entair Foodservice has announced the appointments of Eddie Garmon as Vice President of Business Development for Global Accounts and Asia Pacific Region, and Darcy Simonis as Director of North American Foodservice Sales.

Eddie Garmon and Darcy Simonis

Eddie Garmon will oversee Pentair’s Foodservice and Hospitality businesses in the Asia Pacific region, including China, India, Australia and New Zealand. He will also continue to direct the top 25 global account activities as well as the US strategic account management team. Darcy Simonis will lead the Business Development Sales team in the US. Simonis has a proven record of growth and distribution management with over 10 years of experience in the foodservice industry.

AWWA names David Lafrance Executive Director The American Water Works Association (AWWA), the authoritative resource on safe water, has named David B LaFrance as its new Executive Director. LaFrance, 46, has served as Director of Finance for Denver Water for the past 12 years and is a respected industry leader in the areas of utility economics and water rates. He served as Chairman of AWWA’s Audit Committee from 2005-08 and its Rates and Charges Subcommittee from 1993-2002.

30 NEWS

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Appointments Adriana du Croo, ADEAC’s new Chairman in Spain The Asociación de Distribuidores, Envasadores y Proveedores de Agua en Cooler - the Spanish national organisation defending the interests of the water cooler industry - has appointed a new board, elected at the General Assembly, held recently in Madrid. The new board is chaired by Adriana du Croo, Finance Manager of Eden Springs. The new ADEAC Board includes the following individuals and companies: Adriana du Croo (Eden Springs), Jordi Morera (Canaletas), Lluis Parera

Adriana du Croo

(Aquadirect Blue Planet), Josep Lluis Ninou (Aigua del Montseny), Josep Maria Castellarnau (Greif), Sergio Pérez (Viva Aqua Service), Jordi Oliver Rodés (Laboratorio Dr. Oliver Rodés) and Natalia Caprari (Acquajet).

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Zenith appoints new Water Resources Manager Peter Keane has been appointed Water Resources Manager by leading food and drink consultancy Zenith International. He joins the Water & Environment team of technical and hydrogeology experts. Peter has more than 10 years’ experience designing and developing water supply boreholes for food and drink producers. He also advises national regulators on legislation and guidance for the bottled water industry. With

Peter Keane

wide-ranging experience covering the UK, Ireland, Europe and the Arabian Gulf, Peter will be responsible for advising clients on all aspects of water resource management.

www.foodbev.com/cooler Issue 26 - April · May 2010

NEWS 31

The mains attraction

Sponsored by

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Sponsor profile: Clover

lover marked its 20th anniversary in February, 2008. David Ilmook Moon, President of the enduring Korean water cooler company tells us a little bit about its humble beginnings and bold future. Clover has been dedicated to the development of water dispensers ever since it started business in 1988. Around the time it began manufacturing water dispensers the bottled water market was limited to American military posts or the upscale town of Seoul. President Moon still remembers when he first built his factory in Uiwang city, a suburban area south of Seoul. “I forecast that this market undoubtedly would expand as people put more importance on quality of life,” he said. At the end of the 1980s, there were few competitors in the market and their quality level wasn’t very good. He wanted to release high-quality products that he assumed would be the most critical point in healthrelated business. When the first Clover cooler (B2CH) was released, the public’s reaction was astonishing. Indeed, the quality of the finished product was flawless. At the start of the 1990s, Clover B2CH profoundly accelerated and elevated the Korean bottled water market’s expectation. Beginning with a big hit machine, B5CH, while the Korean economy was badly affected in the late 1990s, Clover expanded its customer base from China to US, Japan and Western Europe with a series of new products.

Then Clover noticed the market trends of the drinking water industry expanding to mains-fed cooler business at a phenomenal speed, which motivated the whole organisation to spur to regain another momentum to the growth in 2010. Clover has since re-identified itself as Total Cooler Maker, expanding its product range to mains-fed coolers. “Our short-term goal is to increase our revenue up to $50 million by 2013,” said Mr Moon. In September 2009, Clover launched ‘Aquverse’, an innovative cooler with affordable ranges of filter combination. The Aquverse P15 cooler is equipped with a patented cooling system, CFDD, adapting a new concept of hygiene reinforcement. “Aquverse P15’s KSF is non-preserved water,” Mr Moon said. “While conventional coolers inevitably have a problem caused by airborne bacteria, P15 has overcome this issue with our patented system.”

Long-term success built on partnerships would be a good way to explain Clover’s business acumen. Indeed, Clover has a number of clients with whom it has had more than a decade’s partnership. In addition, while Clover puts great effort into launching new products, it has been concentrating on and introducing core technologies that are subsequently patent-pending or patented. For the past 22 years in doing business with more than 50 countries, Clover has always strived to meet its clients’ expectations, from various specifications to custom processes. Thanks to its efforts and experiences, Clover is now undergoing a number of projects with global corporate by OEM, ODM basis.

departments. For the last 10 years, Clover has been annually donating a fixed sum to Anyang Engineering High school and Daerim College of Engineering to award scholarships to students under financial stress. Nowadays, Clover’s manufacturing facilities are in full capacity for the coming summer peak season orders. Among them, mainsfed coolers comprise almost a third. Clover expects, after new coolers including D16 are launched this April, it will achieve its annual sales target while advancing by one or two years the $50 million goal.

Clover has not only looked for innovation in technologies, but keeps innovating itself in management and social responsiblility activities. At the start of 2010, Clover adapted SaaS web-based groupware by which the organisation has facilitated its communication between

Clover’s innovative cooler, Aquverse, instantly filters cold water without conventional storage © cooler innovation 2010. Reproduced with the kind permission of FoodBev Media - www.foodbev.com For details about syndication and licensing please contact the marketing team on 01225 327890.

34 SPECIAL REPORT

www.foodbev.com/cooler Issue 26 - April · May 2010

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The panel

Asset Italia Andrea Simonelli (AS), General Manager

Blupura Luca Costantini (LC), Managing Director

Canaletas Pas Ausin (PA), Export Manager

Clover Hunt J Lee (HJL), Sales Manager

Cosmetal Federica Diotallevi (FD), Marketing

Ebac John Elliott (JE), Chairman

Mistral - Thomas Liccioni (TL), Business Development Director

Oasis Pete Benua (PB), Managing Director

Tana Water UK Nick Heane (NH), Managing Director

Vivreau Stephen Charles (SC), Managing Director

Waterlogic Marco Fuso (MF), Marketing Manager

Zerica - Antonio Zerilli (AZ), Commercial & Marketing Manager

Dieau-Edafim Anouk Averous (AA), Marketing Manager

Within the past five years the mains-fed cooler has doubled its share of the water cooler market. We asked our expert panel to talk shop and tell us if the future looks just as good.

漏 cooler innovation 2010. Reproduced with the kind permission of FoodBev Media - www.foodbev.com For details about syndication and licensing please contact the marketing team on 01225 327890.

www.foodbev.com/cooler Issue 26 - April 路 May 2010

SPECIAL REPORT 35

The mains attraction It was a slow year for many, the water cooler market included. But according to a report by Zenith International the drop-off was minimal; and it’s the continued growth in the mains-fed sector that has been the buoyancy aid. “It was a difficult year in all the markets,” said PB. “But mains-fed coolers provided an opportunity for traditional distributors to expand their product offerings.” Many factors have raised the profile and sales of mainsfed, which in turn has given bottled water companies flexible enough to expand their catalogue a two-pronged attack on the recession. “Clover’s bottled-water product lines were adversely affected,” said HJL. “However, since Clover re-identified itself as TotalCooler Maker in the beginning of 2008, revenue portion for mains-fed coolers quadrupled.”

“For Zerica it was a good year,” said AZ. “We improved our existing market and created a new one. Overall we saw more fear for the recession than the recession itself.”

actually need so much mineral water or consider it a more luxury product,” said PA. “Therefore they believe with water from the main and with a reliable and quality filter, it will be enough.”

“Of course businesses are cutting back but the advantage of being in our business is that unless a client has decided to simply offer tap water to their staff and in their hospitality areas, then a decision to go with a mainsfed water system like ours will invariably save them a significant amount of money,” said SC.

“We believe 2009, which was a year of slow growth, was just a recessionary ‘blip’. The prognosis for the mainsfed market remains strong,” said MF.

Whether you’re geared, financed or privately funded, if the trade starts ebbing it can give any industry as a whole the shakes. But the mains-fed option, many think, has stopped cooler buyers from bailing out altogether. Could it be, as AS suggested, “a young, innovative and dynamic market, able to avoid the economical crisis”?

According to Zenith the balance of UK water cooler dynamics continues to shift in favour of mains-fed; its share has more than doubled from 18% five years ago to 42% in December 2009. Zerica’s premium cooler

“Many offices are looking at cutting costs so this may have increased the demand for mains-fed coolers as a cheaper alternative to their bottled water deliveries,” said JE. “There are cases where clients want more economical solutions and therefore they think they do not

Hunt J Lee Clover

The market

“Endless price competition . . . could be a big threat.”

What could stop the flow? Keeping the cooler industry’s head above water and ticking environmental boxes, it seems mains-fed can do no wrong. However, wherever there’s success there’s competition, inside and out. “My primary concern is that distributor ‘price-slashers’ will emerge in more mature markets, opening the door for uncertified mains-fed equipment and shoddy service,” said PB. It’s a trouble that’s afflicted the bottled water cooler sector - but with plumbing issues, can it possibly affect mains-fed the same way? “Some bottled water markets in the world were driven by price competition and, as a result, it is not as attractive a market as before. Unfortunately, mains-fed business is similar to it in many aspects,” said HJL. “I would say chicken games

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like endless price competition among filter manufacturing companies could be a big threat.” If it’s not the potential rot from within, then it’s the external pressure. “As it’s seen today, a number of trends in the HOD market were partially driven by environmental consciousness,” said HJL. “Bag In Box (BIB) is a good alternative, and I believe the HOD market will share its considerable portion with the BIB market. As a result, BIB dispensers are going to be a big competitor against the mains-fed market.” And with the clouds of environmental and financial pressure always threatening to rain on any manufacturing process, is there the possibility of mains-fed units being deemed superfluous? “I suppose the main threat is if people just decide to drink tap water,” said NH. “But as the BBC example demonstrated, staff will resort to buying bottled water if they don’t feel adequate provision has been made for them to drink palatable, chilled water at work. The Guardian lambasted the BBC for spending thousands on bottled water after its own Panorama programme highlighted the environmental impact (of it). However, BBC staff argued in their defense they would be forced to fill their cups from toilet taps if they didn’t buy bottled water. That’s a clear case for installing a mainsfed cooler on every floor of Broadcasting House in my view.” Indeed, we could all look at it from a different perspective, as does FD. “I see many interesting opportunities rather threats,” she said.

36 SPECIAL REPORT

www.foodbev.com/cooler Issue 26 - April · May 2010

The mains attraction

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Shop front and factory floor With a niche market such as mains-fed water coolers, knowing what the customer wants is as important as knowing the product. “They want compactness, hygiene, easy installation, reliability, quietness, elegance, power and good quality of the water,” said AS. And, of course, what they get for their money - it’s hardwired into any purchaser’s brain. But what are the dangers of the sell-cheap lure for mains-fed buyers?

Price comparison “Cheap products are often projected and manufactured with a disposable intent that justifies a low price but does not offer any guarantee on hygiene or quality,” said FD. “Initially, one might think price is everything,” said MF. “In fact profit is everything, and there is an important difference. Firstly, a mains-fed

cooler, like any product that is designed to work in-situ for a number of years, must be of excellent quality. It needs to be robust enough to stand up to the rigours of daily usage, and also be built of quality components so failures when installed are minimised.”

PB. “If there is a water leak in a bottled cooler the potential amount of water spilled is 19 litres; the potential amount of water with a mains-fed unit is far greater…”

“Security in the form of flood prevention is a high priority,” said JE. “Although a Waterblock is an effective security “Customers buying a system it still has water cooler for the the vulnerability of first time usually look allowing slow leaks at for high performance, a rate of 1/2 litre per good looking design minute which could and a reasonable leave as much as price. However, Ebac’s FMax 2,000 litres of water they should pay if a leak is left undetected attention to some invisible over a weekend. The FMax characteristics which may be mains-fed cooler can be underestimated at first sight: used with our StopMax flood hygiene and reliability.” prevention system which features a solenoid valve to Reliability shut off water at the mains when no water is being “It is vital that a cooler does dispensed from the cooler.” what it claims to do,” said

HJL agreed: “For us, product reliability is the core issue of a customer choice. Most players in the mains-fed cooler business need to have reliable and simple products that save costs and let them earn better reputation as time goes by. The capacity for hot & cold water, next to flexible filtration system that can be chosen by a distributor and a customer, may be the next.”

Life, style and efficiency Finance, application and logistics are the simple motives for a purchase. But in the water cooler industry there are different types of customer - from the individual to the distributor, from the home kitchen to the office. “It’s important for a first purchase to know the type of environment, the location of the office and the number of people who will

The mains reason

here’s rarely success without passion, knowledge and the thirst for more. So what it is about mains-fed manufacturing that makes our panel tick? LC: The market is young and with a lot of possibilities. It’s exciting to be a pioneer . . . AA: It raises knowhow of all actors on the market because of the higher requirements of customers. For Dieau-Edafim it’s an amazing challenge. PA: Because of water’s importance in developed society and its being a nearly mature market, the consumer is requiring more

and more advance features and attractive designs. SC: It’s a competitive marketplace and I’m a competitive person but the outcome for Vivreau’s clients is better products and better service. PB: The mains-fed market enables us to work with European design firms in putting together all of our industry knowledge into new packages with smart design features.

NH: Although we were the first to introduce mainsfed coolers to the UK, the market is still in its infancy. There’s a huge opportunity in the business sector, not to mention the SoHo and domestic sectors. MF: It is a growth industry; that’s what makes it exciting. HJL: I love it in that it gives me more privacy, thanks to the decrease in water delivery visits! TL: For us there is only one market with two different technologies. The mainsfed will probably allow the market size to grow in terms

of units installed. JE: Increased consumer demand will maintain the need for innovation in design and manufacturing of mains-fed coolers. AS: The luxury of always having to hand water, coffee, fruit juice and hot drinks in a very small space...at home! FD: It is still a young market with many opportunities. AZ: We have a very positive view. Better water quality, environment-friendly, no monthly extra costs are the keys for the success.

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“We have to make a difference between what moves a distributor and what moves a customer,” said AZ. “Distributors who go with our mains-fed coolers are doing so because they prefer to have strong units and not deal with heavy bottles and all required maintenance. Customers prefer to have a mains-fed cooler so they can forget about the work involved with bottled units.” Whatever makes life easier is key, especially, said TL “for the distributor, who will be more concerned by how to service the cooler and

its reliability.” But he adds, for the everyday customer “design and functions” is the optimum purchasing influence. “Mains-fed water coolers projected with the inventive support of designers reflect the trends of electric and electronic appliances, in colors and shapes,” said FD, who sees aesthetics as a strong purchasing influence. “These companies set the trends and then there are the followers.”

Back to basics “In short, the customer’s true and fundamental needs are what shape a successful mains-fed dispenser,” said

MF. “The myth that the customer wants cheap is a complete fallacy. The customer wants lowest total acquisition cost - and there is a big difference. Firstly, any mains-fed solution will achieve huge total

acquisition cost savings over bottled water. So to save a few dollars off the purchase price of a machine is neither here or there. These cost savings can be totally written off by poor quality parts that need replacing after

Winner takes all?

Source: Research & Markets

drink at rush hours,” said AA.

According to a recent report by Plimsoll Industry Analysis, one in four UK mains-fed companies could change ownership. But the harsh economic climate, while forcing some to bail out of the water cooler business will also set to consolidate the market as cash-rich competitors mop up. David Pattison, author of the new Plimsoll Industry Analysis - Mains Fed Water Coolers, explained: “With many directors eyeing the exit doors and highly leveraged buyouts consigned to history for the time being it really is a buyer’s market out there for cash-rich companies.”

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SPECIAL REPORT 39

The mains attraction a few months. We should not forget the customer’s true needs - great-tasting water, purified and healthy,

convenient and always on tap, cold, ambient, sparkling, hot or extra hot, and something that is dependable and will work happily in the background while the end-user gets on with their day job.”

Q&A: the future on tap While we try to get to grips with the past year and the pressures it presented, what can we expect the next year to bring?

PA: I am optimistic about the mains-fed market in the next year, the tendency to replace mineral bottle water coolers will still continue and the awareness of the importance of water in relation with health will contribute to strengthening the market. TL: The mains-fed market will continue to grow and the market will mature. HJL: In 2011, drinking water filters will be commoditised through retail channels, exploding the market in size, and along with that cooler

That’s the here and now. But a concern that always seemed somewhat futuristic is suddenly upon us. “There’s Cost, Quality and Service,” said SC: “But increasingly, and this bodes well for the future of the planet, there is a fourth consideration Sustainability.” “Consumers are increasingly more conscious of the effect of their purchasing decisions on the environment and I would expect this to continue,” said JE. “There has been some negative publicity around the

Waterlogic

FD: Next year should confirm the trend of growth due to both new installations and substitutions of bottled water coolers.

The conscientious dollar

makers will be required to come up with easymaintenance coolers. LC: Both public and private sectors are increasingly keen to try greener solutions. Water from a mains-fed cooler is a cheap, convenient, efficient, safe alternative to bottled water. Internally, companies needed to become more cost– effective and efficient. AA: We are confident the market will grow, in France maybe more than in other European countries. AS: Environmental pressures encourage people to use mains-fed and no more plastic bottles. It will have a larger and larger request in the future. It will be a very positive year.

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environmental impact of delivering bottled water which has allowed mainsfed coolers to be marketed as a more environmentally friendly solution.” “The mains-fed market may have slowed in the office sector, but the new situation in the global economy, together with a bigger ‘green’ consciousness, is opening new opportunities in other sectors like catering, domestic and public,” said LC. “A young and flexible company like Blupura should be able to adapt better adapt to this new reality.”

Q&A: Where does customer feedback take you? PB: We built our business by listening to customers and incorporating their ideas into our products. One example is that our customers are looking for any way we can help them to help the environment by reducing their carbon footprint. This has led to the introduction of the green filter and our ISO 14001 environmental rating. TL: This is very important for our product improvement. And our synergy (research and development, manufacture and sales are located at the same place) allows us the important ability to react in term of modifications and improvements. AA: Yes, it’s very important to improve technical aspect

and to design new models for new applications. It’s very important to build a strong relationship. AZ: Zerica was born as a good manufacturer, not as a seller. Manufacturers are more interested in customers’ requirements, and a good seller can sell everything but only if in first case customers are guaranteed satisfaction. JE: We maintain close relationships with all of our customers and listen to their comments. It is our belief that the customer is our future and if they benefit, we benefit. AS: This is of a primary importance for us in order to understand the market’s needs.

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Designs on the future

ustainability: it was mentioned as a customer influence, but how much of it is eco-rhetoric and how much it is shaping the design and future of the mains-fed cooler? “Mains-fed water coolers are considered eco-friendly products and, as all the ‘green’ products, it suffered less in 2009,” said FD. “And it’s the product to shape the drinking water market in the long run. However there are some environmental issues, such as the refrigerant gas which may produce some changes in the industry.” “This, together with the natural cost advantages over the “total acquisition cost”

of bottled water (not just the water, but the cost of storing bottles, administration, health and safety, security etc) is the fundamental

“When there are new demands there are new drives for technology.”

selling proposition of the mains-fed market,” said MF. “Energy efficiency is also becoming more important for the end user, especially due to the ever changing economic climate,” said JE. “Producing energy-efficient coolers will continue to be a key feature in the future.” “The campaign led by Sustain and former environment Minister Phil Woolas had a big impact on raising public awareness of the impact of bottled water on marine life and carbon footprints,” said NH. “With the Carbon Reduction Commitment

deadlines falling in April and September of this year, the largest businesses in the UK are focused on reducing their carbon emissions, so I can only see mains-fed increasing its share of the water cooler market as a result.” “There’s no doubt there’s a correlation between heightened concern about global warming and enquiries about our drinking water systems,” said SC. “Back in 2008 we saw enquiries peak in response to the Panorama report that demonstrated the damage transportation and packaging

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SPECIAL REPORT 41

The mains attraction associated with pre-bottled waters were doing to the planet. Since then we’ve had the Copenhagen Summit. The truth is that global warming is going to loom increasingly large in our lives. Companies wanting to do their bit will definitely consider more sustainable ways of providing drinking water as a means of improving their overall environmental performance, because making the switch is so straight forward, painless and cost-effective.” When there are new demands there are new drives for technology. It’s something that mains-fed could sit back on - after all, it’s filtered tap, not bottle - but where energy

is saved, money is saved, and customers’ respect is won. “The green economy, the alternative energies, water distribution are the present and the future of the global economy,” said LC. “Since the beginning Blupura had this in mind. We were the first manufacturers to offer natural refrigerant gases and every cooler is designed using as much recycled material as possible.” “Environmental pushes our market to raise our technical and professional know how,” said AA. “It’s a big advantage since we emphasise about environmental protection when selling our products. They use the main natural

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resource - natural water - and this reduces carbon consumption by avoiding water delivery. Additionally we push our environmental policy by setting a formal recycling of our wastes (filters, gas, spare parts) and sales of ‘green accessories’ like cups produced with vegetable raw material.” “This will force the manufacturers to advance and improve materials so they contain fewer contaminants, are more easily recyclable, consume less energy and - a key point the refrigerant gases they use are less polluting,” said PA. “Recyclability is now a reality on the European markets;

Oasis Odyssey mains-fed cooler with electronic controls

for example, Canaletas has been recycling its coolers for more than ten years, and as our coolers are made in stainless steel, this is a great advantage.”

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Latest models

Asset Italia

Blupura

Latest model: Elite

Latest model: Fontemagna Light Fizz

Location: Homes Features: Dispensing at room temperature cold and sparkling water with auto dosing system, touch screen and display Design influence: Elegance

Location: Large communities like schools, hospitals, canteens Features: Ice bank for high performances (150 lt/h) and electromechanical pushbuttons for heavy usage Design influence: Modern and smooth

Canaletas

Clover

Latest model: M9ID

Latest model: Aquverser P15

Location: Suitable anywhere but specially focused where CO2 water is required Features: Easy to handle for after sales service, competitively priced Design influence: Elegant, attractive and user-friendly

Features: Non-preserved fresh water, easy maintenance Design influence: Minimalism, problemsolving

Cosmetal

Ebac

Latest model: H2OMY

Latest model: FMax POU Hot & Cold

Location: Homes

Location: Any

Features: Sparkling and cold water always available from the tap Design influence: Small and discreet

Features: Direct Dispense, Ion-Exchange Medium, low running cost and StopMax flood prevention

漏 cooler innovation 2010. Reproduced with the kind permission of FoodBev Media - www.foodbev.com For details about syndication and licensing please contact the marketing team on 01225 327890.

www.foodbev.com/cooler Issue 26 - April 路 May 2010

SPECIAL REPORT 43

The mains attraction Mistral

Oasis

Latest model: Evopure

Latest model: KaliX co2oler carbonator

Location: Offices

Location: Offices; where carbonated water is appreciated as an extra to hot & cold

Features: Filter replacement control with indicator light. Security drip tray with indicator light that puts the cooler out of order in case of overfill. Sanitisation programme included

Features: Carbonated water, produces 20 litres of cold water per hour and 7.2 litres of hot water per hour Design influence: Modern aesthetics and functionality, using Europeanbased design firms

Tana

Vivreau

Latest model: T5 incorporating 11Watt UV lamp and recessed dispenser head

Latest model: V20

Location: Hospitals and care homes, schools and areas of infection control and high volume Features: 11Watt UV lamp to kill pathogens, high grade carbon block filter < 0.5 micron, ‘sleep’ function to power down during inactivity

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Location: Staff vend areas Features: Chilled, sparkling and boiling water from one tap

Design influence: Smooth lines for easy cleaning, hygiene efficiency

Waterlogic

Zerica

Latest model: Waterlogic 4

Latest model: Refresh P

Location: The workplace - typically offices, but also hospitals because of the high purity

Location: Airport, hotels, airport, schools, hospitals

Features: Simple icon display indicating function, leak detection, thermal overload cut-out, designed to purify cold, ambient and sparkling to class A levels

Features: A system with exclusive Zerica HPDC (High Performances Direct Chill) system that can chill water in just three minutes from power on

Design influence: “Form and Function” - top German design agency i-Pdd designed it

Design influence: Strong, easy to use © cooler innovation 2010. Reproduced with the kind permission of FoodBev Media - www.foodbev.com For details about syndication and licensing please contact the marketing team on 01225 327890.

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Box clever

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- Purity by Design was incorporated. We talked to Kieran about coolers in the market and Aqueduct - Purity by Design, the product Kieran sees heralding a new era for drinking water dispensing.

Troubled waters What are your perceived problems with current business models?

Kieran McKenna

anada-born, Kieran McKenna grew up and studied in Ireland, achieving an Honours Degree in Microbiology from NUI Galway. His first job was in Food Production - but in 1991, with 4,000 Irish pounds and a friend called Brian Cooney, he went into the water business. “I had an idea that bottle coolers were too expensive and that if you made a bracket, fitted a filter and attached it to the mains water supply you could really compete in the Home Office Delivery (HOD) market, which was in its infancy in Ireland at the time.”

In December 2003, Kieran and Brian sold the business to PHS Waterlogic, with a great deal more experience and expertise and over 10,000 units under contract in Ireland, in addition to 3,500 coffee machines, filters and boilers. They also had a loyal staff community of just over 40.

“I realised the time for me to sell AWS was now, leaving it in safe hands and a market leader in worldwide mains-fed per capita penetration, and well on course to become the first company in Europe where a truly mains-fed company had become bigger than the established HOD Companies. I believe this was achieved two years ago and AWS now has over 20,000 units placed in the Irish market (pop. 5.5 million).”

Kieran first found a supplier in the UK and then in the US, placing 80 units in the first year. All Water Systems Ltd (AWS) was a small operation with a big ambition. “Brian and I swapped between ‘suit and tie’ and ‘overall and bucket’, as the person who sold the unit could not be seen to be the one servicing it!”

“Selling AWS was actually quite a hard decision for me,” said Kieran. “It was like giving up the baby and even though the reward was there in cash terms, emotionally I found it hard.” So hard, Kieran adds, he almost decided not to sell. However the time had come to move on and Kieran left AWS in June 2004.

While reading an article on improvements in the elimination of ‘taint’ from Bag in Box (BIB) packaging it struck Kieran that, for the first time, BIB could move out of the traditional milk, fruit juice and wine industries (where over a billion units are sold annually) and into delivered water. In 2006 Aqueduct

Mains-fed has fundamentally changed the market dynamics and balance sheet of the HOD business . . . And the true extent of this is now only being felt. The initial reaction of the established HOD players was not positive to mains-fed in the least - banned from trade shows, denigrated by sales people, seen as a minor annoyance. However by 2006 all had changed - epitomised by the change of BWCA’s ‘B’ from ‘Bottled’ to ‘British’. Clearly if the high volume users moved to mains-fed then a fundamental seminal shift will have happened to the HOD business model. How can one justify the huge investment in water plants (with limited distribution reach due to the returnable nature of the empty bottle) and even greater investment in coolers if one is stuck with a huge number of small deliveries? There is no chance of any economies of scale either in plant reach or delivery logistics. Actually the reverse is true - the more small customers you get the harder it is to administer and the bigger the central overhead becomes. Add to this the cost of administering 13 week sanitisation cycles

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in a vain attempt to keep coolers clean. The end result is that the return on investment is just not there. I believe this is one of the reasons why Nestlé sold PowWow; it’s unfortunate that such a large company has been brought to its knees, but I don’t think it will be the last. The fundamentals that brought down PowWow apply to all in the HOD business as it is currently structured. I think there is now, due to mains-fed and the low cost to entry (meaning a huge number of smaller water players are eating at margins) a crisis in the HOD industry. Return on Investment models cannot work when based on limited geographical reach from one water plant and increasingly smaller ‘drop sizes’. The HOD market must get profitability back into each delivery and extend the reach of a single water plant. Do you see environmental pressures as a threat to the water industry in general?

environment; they want fewer trucks on the road; they want packaging sizes they can actually lift; and they do not want storage issues for full and empty bottles. We should realise that even though our industry has not given consumers a lot of the above they still stayed with us, and my advice is that we should reward them by offering truly innovative improvements that are not just gimmicks. Just as the ‘90s brought us a seismic change to the ‘heavy use’ end of the market, BIB will over the next decade change the significant number of customers who are in the low use end. What is more, it could actually increase market penetration into new areas such as the exciting, but hitherto elusive, domestic market.

The Bag In Box concept What convinced you to consider BIB dispensing?

Has the consumer changed?

My analysis of the market was that the early ‘90s were the years of the first real new ‘threat’ to the established HOD business model - this threat being mains-fed. I was from the early days convinced it would represent 50% of the installed cooler base in time. However the other (lower volume use) 50% would be increasingly difficult to penetrate. If one accepted this fact then it was only a matter of time before the HOD players moved into BIB as no water company could let 50% of their base ‘walk’ and still survive.

Consumers want hygiene; they want you to be able to tell them that what they’re drinking is as good as it can be; they want to protect the

To me it was blindingly obvious; in every bulk liquid business BIB had overcome well-established bulk delivery methods, and the catering use

Absolutely. The pressures of the Green Lobby will continually grind away at the water industry until it starts to embrace new, less damaging packaging technologies. I see ‘lightweighting’ of PET bottles as being but the first defensive step, but I think different concepts and technologies will come to the fore and I do believe BIB will be one of a number of greener alternatives that consumers will move towards.

of BIB is now well engrained. You cannot beat the logistical efficiencies and geographic reach that a true ‘one-way’ delivery system offers. The impact in bulk milk, fruit juice, wine, oil, and even liquid eggs has been immense, proving it can meet hygiene standards. Only the ‘taint’ issue hampered its movement into water where actually it is the ideal packaging. Pick a HOD problem - hygiene, delivery size, logistic reach, manual handling, truck size, Bisphenol-A, Green lobby, increased staff costs, greater road congestion; you name it BIB beats the current system. And you can store boxes easily!

Mains-fed has fundamentally changed the market dynamics What is more, as a microbiologist I have been inherently unhappy about the hygiene (or in many cases lack of hygiene) associated with both bottle and mainsfed systems. Frankly, I do not have to look much further than the independent cooler testing carried out in the Scottish ‘Fountain Report’ (March, 2009). We are not talking harmless TVC counts here - this is not wild scaremongering; we are actually talking upwards of 40% of bottle coolers and 16% of mains-fed coolers being contaminated by (mainly) human-induced pathogenic bacteria! I just do not know a food industry

that would spend so much effort trying to justify its position, rather than taking time out to sit back and ask why. How does BIB water appeal as a business model? Any industry that relies on the physical delivery of their liquid product in a bulk form - but not in huge quantities - is ideally suited to BIB. The key issue here is ‘drop size’ and ‘geographic reach’ from a single plant, the very issues that are killing the profitability of the current HOD business model. And I do believe these issues would have been central to many of the bigger companies selling off their interests, first in the US and latterly in the UK. Mains-fed has had a huge effect on the HOD industry, virtually removing the ‘D for delivery’ component. It has killed off the hugely profitable large volume sites and what is left are companies in the medium (slowly being eaten by mains-fed) and low volume (virtually immune to mains-fed approaches due to cost and inconvenience of plumbing). The level of investment in a HOD plant, which can only cover a radius of a few hundred miles, and the huge labour cost involved if someone is only delivering a couple of bottles a time is slowly strangling the profitability of the current business model. Something has to change. Customers still want the ease and convenience of delivered water - but companies need to find a way of doing this at a decent profit that reflects their massive investment in plant, vehicles and labour.

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COVER STORY 47

Box clever The creation of Aqueduct Purity by Design What were your initial hurdles? The main issue has always been finance - and there is a book in me somewhere as to the trials and tribulations of that angle! I was nearly there three times and each time, for one reason or another, the financing did not go through. For instance, in late 2008, when I was about to close on the finance, Lehman Brothers fell, duly evaporating my financing. The financial black hole of January/February 2009 was a dark time. It seemed after so much work (we were now at the stage of working prototypes and had lined up a huge refrigeration manufacturer in the Far East) all the ready cash from the sale of AWS would be burned through for nothing . . . However, perseverance paid off and crucial investment came in April 2009 and it has been foot to the floor since

Aqueduct counter top cooler

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then. Apart from the money, my investor (a €2 billion company with manufacturing facilities worldwide) has also brought a huge weight of personal, technical and quality resources to the party - resources that will reflect well in the ultimate cost and quality of our offering. How has the Aqueduct been received so far? The reception to our working prototypes has been great, and what is coming is so much better than the ‘rustic’ models we previewed at the Copenhagen Food Fair with our first national partner who really saw the potential for this product, the Danish Bottling Company - and in particular their General Manager Brian Thorstrup Nybo. We have been working together to iron out any kinks in the system and are now literally weeks away from our launch. Interest is now rising fast. We have a co-packaging agreement in the UK with the respected Harrogate Spring Water; Paul Martin and his team there have been great and eager in getting their teeth into the project with us and we launched in the UK this April. We are in discussions in Germany, Ireland, France and other locations, and have global interest literally from Japan to Paraguay! A very serious group is looking at four strategically located water plants in the US, and a well financed launch into the US market will follow.

We have also worked extensively with two of the world’s leading multi-billion dollar BIB Companies RAPAK and Smurfit Kappa - and our continued cooperation means we can roll out BIB water plants on a global basis.

Bag in Box appeals to two differing mindsets Who will take up the BIB water concept? BIB appeals to two differing mindsets in two differing ways. I will start with the easy one: mainsfed companies, vending companies, office supply companies, catering, facility management, security, B&B supply, etc - basically anyone who is not HOD but provides a regular service to an office. These companies have an immediate opportunity to offer their customers what is effectively a ‘leaner, greener, cleaner’ technology, and in so doing avail of three new income streams: cooler, water and cup. What is more, as their staff are already going there (or, in the case of mains-fed companies, Aqueduct or one of our regional partners will arrange delivery) the biggest cost is already covered. The more interesting proposition is in regard to HOD Companies; I truly believe those who embrace

BIB will thrive and those that do not will have an increasingly torrid time as issues such as hygiene, storage, manual handling and carbon footprint are brought to the fore. And the funny thing is, I truly believe that BIB is good news for the HOD industry as it can drive profitability back into each delivery, not to mention allowing a single well-located water plant to serve a huge geographic area. How will the operation work? There will be regional warehouses off a central hub. Each city has a warehouse and the ‘mother ship’ avails of huge economies of scale to supply (via third party trucking, meaning no return journeys) 26 tonnes of water to each hub on each delivery. The regional hubs then utilise physically smaller vans (same axle weight requirement but actually less space requirement - easier on fuel, easier to park) to deliver the boxes to their customers. This is now the key point: given we can store four boxes within the coolers and we have designed a neat storage and recycling centre, another 12 boxes can be stored neatly out of sight. The boxes keep sunlight out (no green bottles) and are disposed of in recycling waste. In London recycling is so efficient that in one week a box will be back out as usable board. What is more, with Aqueduct - Purity by Design coolers there is no requirement for 13 week sanitisation, so return journeys to the customer come only when they call you, and then it’s for a profitable sized delivery. It is

48 COVER STORY

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also ideally suited for delivery to less densely populated cooler roots. What’s the immediate value of using the Aqueduct product? Hygiene, ease of use, beauty, ease of service, increased storage, a Green message: these are the features key to my design processes. I think it is a combination of a focus on quality, be it from the microbiological safetyfirst viewpoint or the demand for high quality components, LG Compressors, brushed finger print-resistant stainless steel, to the expert advice I have on hand, the choice of a high quality manufacturer and most importantly a dedicated group of world class designers (they work for companies such as Logitec). All have combined to produce products that I am proud to be associated with.

Aqueduct onwards and upwards Who is Aqueduct currently being ordered from? That information would be commercially sensitive. But I can tell you we have significant orders, and others pending the trial of test pallets we are flying in at our own cost (allowing potential customers to test the units themselves before committing to any volume). This offer is still open and I believe shows our belief that once reseller companies get their hands on these coolers they will want more. What’s the future plan for Aqueduct? Our aim is to find strong local brands who would like

to join with us and promote their water with our cooler - a co-brand approach; a bit like ‘Intel Inside’ we are ‘Aqueduct Outside’. Our slogan ‘Aqueduct - Purity by Design’ is a message that our high quality coolers will not contaminate your high quality water brand. We would like to speak with serious water players who wish to be associated with us in various markets, as we do not intend shipping water around the Globe for obvious environmental and logistical reasons. There is really no hard and fast rule. Each country or region will be assessed on the merits of the proposal. Essentially it comes down to Aqueduct supplying the cooler and water, or the cooler and packaging (we can provide packaging at extremely competitive pricing to our partners).

have hired a great branding company in the UK, Blue Marlin - well known for doing such a great job on the Isklar water brand - to co-ordinate and look after our working with other water brands in a structured manner.

If you are reading this and are interested in becoming one of our key partners in a region - or if you just want to sell on the pre-packed water and coolers - then please do email me at kieran.mckenna@aqueduct.ie

Where do you see the Aqueduct in five years’ time?

We have a special launch offer (time limited to end June 2010) that Aqueduct will fly in at our own cost one test pallet of six coolers (two automatic, two manual freestanding, two counter top) to anywhere in the globe . . . the customer paying the pallet cooler price and Aqueduct picking up the (not insignificant) transport costs.

Global, and with a full range of coolers - hot & cold, cold and ambient, etc; I would like Aqueduct to be recognised as the market leader with a great and reliable product that consumers are proud to use.

In the UK, Aqueduct itself will provide water to a growing list of resellers via our agreement with Harrogate Spring Water, but if someone wants our coolers and bespoke packaging in their own line we will be delighted to help them. Where’s the added value? I truly believe that it has been this contamination of the integrity of their water product that has kept many of the leading ‘small bottle’ water brands out of the HOD market. BIB offers these companies a way to get their brand into the office space, with each cooler being enjoyed by a multitude of staff, with all the implied home branding spinoffs. Branding and being ‘on message’ is obviously all important. To this end we

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COVER STORY 49

Rack and roll

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It’s a sector that may not steal the limelight, but without bottling and storage the cooler industry has no foundation. cooler innovation talked to those who know the processes and pressures of making, filling and keeping bottles.

Making bottles What is your most popular bottle making machine and what can it do?

The machines we sell most in the Siapi range are for large capacity containers, in particular EA2M, EA1S and the new EA2S. The first is a two cavity machine that produces bottles with a capacity up to 12 litres; the second is a single cavity machine for bottles up to 30 litres; and finally, EA2S is a two cavity machine that produces containers up to 30 litres with productivity levels twice those of the previous machine. What are your customers asking for?

New customised applications increasingly focus on ecosustainability. This is why our R&D department, in which we have recently invested a great deal of economic and human resources, accompanies the customer step by step when developing custom-made projects. We start with our customer’s

requirements, study project feasibility and identify the best solution using in-house prototypes, laboratory analyses and tests in order to create a solution that can be produced on a large scale. What are the emerging trends?

More than 50% of the machines Siapi sold in 2009 were for large formats in PET, which is a niche the company has been developing for 10 years now. In particular, the design and materials used for packaging have involved many companies in the food and beverage sector, who are always urging for more research for new eco-sustainable solutions. The use of PET, for example, makes it possible to reduce the weight and quantity of material used in comparison to polycarbonate, HDPE, glass and tinplate. Reducing the final weight of the containers reduces the emission of CO2 during road transport.

with Nicola Scaramuzza, Commercial Director of Siapi Is eco-enthusiasm an operational threat?

Our company sees this new tendency as a great growth opportunity. For many years now, our blow molding machines have been energy efficient and we are specialised in converting various materials to PET, which has given us great satisfaction in terms of market response. What challenges do you face in the bottle making industry?

The goal is to continue growth while protecting the environment. As a result, energy saving blow molding machines have been created, production plants are paying attention to recycling and the emission of CO2, and new types of lighter containers have been developed. What’s in the pipeline?

Within a few weeks will we launch a new machine on the international market: the EA3S, a three cavity two-

Key bottling and storage facts from the BWCA At the heart of the BWCA is the “attainment of the highest standards of quality, safety and hygiene” - naturally, with bottled water coolers the story begins with bottling and storage of the product of which we are rightly so proud.

Hygiene • Is your bottling plant registered as a food premises? • Personal hygiene: it is essential all personnel working within the bottling plant have a clear understanding of their responsibility when dealing with food products.

• Assess high risk areas: it is a legal requirement to have a fully operational HACCP plan covering all aspects of production, storage and transport. • Plant hygiene: do you have a cleaning schedule for every part of the building, including staff facilities and transport?

stage linear blow molding machine for 5 gallon bottles that reaches productivity levels that have until now been unimaginable.

• Pest control: it is vital to have an up-to-date pest control contract in place with a qualified contractor, and immediate action taken and documented should there be an ‘incident’.

Bottles • Bottle washing: keep returned bottles away from dust and out of the sunlight while they are waiting to be refilled.

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Filling bottles

with Bruce Kucera, Vice President of Norland International feature a cap hopper, cap elevator and automatic cap sorter for precise cap placement. What drives the design behind bottling equipment?

What is your most popular bottling machine?

Although Norland International is widely known as a ‘complete’ bottled water plant supplier, our most popular large bottle models are our Triton 160 and Triton 450, both designed as fully automated 12 and 19 litre production systems. What are their primary functions?

In general, the objective is to automatically wash, rinse, sanitise, fill and cap 12 litre and/or 19 litre bottles. A proprietary feature of the Triton line is that both capacities can be loaded into the system - at the same time. In addition, there can

• Pre-wash inspection: essential to detect tampering. Most bottlers rely on ‘sniffing’. BWCA has specific ‘sniffing’ guidelines. • Bottle disinfection: speak to the experts to ensure you are using the most effective product; cutting corners at this stage could be a costly mistake. • Labelling: does it fulfill legal criteria? If in doubt speak to

be substantial differences between the heights of one particular size of bottle that is, there can often be as much as 20mm difference in height of 19 litre bottles - and with the Triton line operators don’t have to hand sort prior to loading, a process that reduces efficiency and throughput. How does it work?

Operation of the Triton system is under programmable logic controller (PLC) control with many built-in, self correcting features for ease of operation. The wash, sanitise and rinse times are completely adjustable from the front panel as are the chemical feed pumps to ensure proper concentrations of tank solutions. Both systems

your Trading Standards Office who will be able to guide you.

Storage • Full bottles should not be stored close to windows, roof lights etc, where direct sunlight may fall on them, unless protected. Similarly, they should not be stored close to artificial lights. It is best to have a designated,

We have developed cost saving systems because we were not satisfied with the other equipment available in the market. All of our equipment has been designed with the owner/operator in mind. The components and systems are heavy duty, reliable and designed to have as few moving parts as possible so troubleshooting and maintenance can be handled by entry level technical personnel. What challenges do you face in the bottling industry?

The biggest challenge we face is competitive manufacturers from developing countries. What may appear to be a cheap price at the beginning can end up costing the bottler his or her entire business because of machine downtime, lack of

clearly defined and labelled area away from other storage. • Outside storage of bottled water isn’t ideal and really should only occur within 24 hours of delivery or production. It is best that bottled products be covered with black plastic or otherwise protected against sunlight if left outside for more than six hours in daylight.

available replacement parts or a substandard finished product. Also, over the past decade, the industry has become consolidated. As such, our core market of start-up or medium sized businesses has become smaller, driving us to develop new approaches to the industry. What can you offer smaller business?

We’re working with innovative environmentally friendly products like OxoBiodegradable PET and plant based PLA packaging materials. This allows our customers to produce marketable products that don’t have to compete with rock bottom priced, store shelf brands. We also manufacture a unique, easyto-operate blow molding system for operators to produce their own bottles, on site. This greatly reduces the cost of shipping pre-blown bottles, allowing operators to reduce inventories and save warehouse space - making a bottler more competitive.

• Bottled water should be transported to the customer’s premises in suitable and clean vehicles. Once there, they should be stored inside in a cool, dry place and away from direct sunlight.

The BWCA runs a specific Plant Operators Course covering all aspects of bottling.

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FOCUS 51

Rack and roll

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Bottling plant

with Mark Beerts, General Manager of Sip-Well constant improvements and fine tuning to maintenance, disinfection, de-scaling, programming, washing/ rinsing and product dosing. We are also preparing and finalising a very important project that is not just an evolution but world news . . .

What process does an empty bottle go through before it’s ready to go?

Chemical and microbiological analysis on sample bottles, on new bottles, and on returned bottles; visual quality inspection by an operator; primary CCD/ digital cap inspection to validate the cap was not removed outside the Sip-Well bottling line; and secondary CCD/digital cap inspection to validate the cap was not pierced. Then there are 13 wash steps including a caustic soda, acid, disinfection and a last rinse with ozonated water. The bottles are filled under laminar flow protection and capped with a sealed non-spill cap printed with production batch and reference data. The bottles are then stacked in the warehouse under a first

Quick fire facts: How many people work in the bottling plant?

Six people in two shifts How many bottles do you fill per hour?

1150 48 hour quarantine before final release, based on lab results. How do you ensure high hygiene standards?

Water is filled according to Good Manufacturing Practices (GMP) and HACCP/NSF regulations. We have frequent training of co-workers and examinations, sampling and analysing on a daily basis by the internal lab - the results are double checked and backed by four external labs for taste and flavour, chemical analysis and microbiological analysis. We have repeated validation of washing procedures and products, in-line measurement of dosing stations, recalibration of measurements and analysis, random controls on a weekly basis by external labs and audits by external accredited institutions: NSF (Global), SGS Fresenius (Germany), FAVV (Belgium), RIC (Belgium) and CBS (Netherlands). What do you do to ensure efficiency across the board?

We exchange knowledge with international colleagues within the industry in order to identify or validate best practices; we follow up the process with key performance indicators: quality - using the microbiological and chemical indexes; productivity - bottles per hour and bottles per man hour; use of chemicals for cleaning and disinfection; and follow up of losses - water pumped versus water filled.

What is the quality rejection rate?

0.03% Where does your water come from?

Four wells near our water caption, protected by more than 60m of clay and limestone.

What challenges to the bottling industry do you foresee?

Margin and value destruction by uninspirational parties that either lack vision or who believe that low cost, low quality operations are a path to growth. High labour cost is a constant challenge. What’s new at Sip-Well?

We are planning a new water filtration plant in order to replace the current threeyear-old installation to facilitate our explosive growth in 10 litre bottling. There are

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Rack and roll

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How it all stacks up The panel Sigma Home Products Marketing Manager Jian Tong (JT)

OP Sales and Marketing Manager Laurent Alozy (LA)

Prostack Managing Director of International Sales Craig Scott (CS)

Stackable materials

be avoided. We design our products with a complete top deck, which can be used with or without a plastic pallet for easy stacking up to heights of 20 layers. The ProStack individual layers have a leg N pocket self-locate design which allows forklift operators to place one rack on top of another without having to locate on the small corner posts, and without the need of a spotter for assistance, even on uneven floors with inexperienced drivers.

JT: Material can be steel wire, or steel tube, or plasticinjected or blown. That is up to the market demand and acceptable cost of product and shipping. LA: Today we are using two kinds of materials depending on what is ‘done’ by the rack. For the OP 4+4 Classic, used in production, warehousing and distribution, we use high quality recycled PP. This compound is fully adapted to build strong and durable products at the right weight and price. For the brand new bottle shelf, The U, we need to use a material that will give durability but also nice look and touch, which is why we have chosen a regular PP with additives.

Prostack

Packing the ecological punch CS: In our sustainability efforts, we use virgin and recycled resins depending on the customer’s requirements. HDPE is readily recycled at curbside collection programmes - we use them in new ProStack products. PP can be recycled through some curbside programmes and are used in new ProStack pallets.

Shape and design

LA: Plastic racks brought into HOD business are better protection both for bottles and workers compared to old metal racks; on top of that, OP 4+4 racks’ modularity is the key to achieving highest productivity from bottling plant to warehouses and from warehouses to customers’ offices.

JT: Not everyone, but some do consider the angle. We have a Japanese client that wants all bottles vertically stacked as they do not want to take any risk of bottle cap leakage. There is no best solution, but ‘preferable’ solutions, depending on different clients. LA: To optimise storage and save space and money you will need a rack that can be stacked with as many layers as possible to increase the number of bottles stored by square metre.

Rack factors CS: Safety is a concern when there are stacks of racks in storage areas. A collapsed stack, caused by an accidental impact from a forklift or route truck, is something to

Logistic requirements LA: A racking system should allow you to load as many bottles as possible considering truck volume and legal truckload, to avoid empty spaces that would increase your delivery cost per bottle ratio; in addition, a modular system such as OP 4+4 saves time loading and unloading. CS: At most bottlers, bottle bounce during transit is the number one reason for bottle damage. A design like ProStack’s that surrounds the bottle will limit the bottle’s upward, downward, and side to side movement

Glossary HDPE: High-Density Polyethylene PET: Polyethylene Terephthalate PP: Polypropylene PLA: Polylactic Acid

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during transit or storage. The ProStack design has reduced bottle damage by 75%; at most HOD bottlers this equates to an annual saving over $120,000/€82,000 per million bottles filled. The open top style of metal racks does not offer such protection and allows the bottles to experience a bounce-velocity ratio of 11 times that of the velocity of the vehicle.

Office management LA: Bottle storage in offices has now become a strategic topic: to have profitable delivery routes, you need to deliver as many bottles as possible to your customer; if you do not store them

properly, you will give a hand to mains-fed specialists and all your efforts will be lost. To get rid of that, you need a modular and flexible system to adapt your storage to your Sigma customers and to your routes. If you need to store three bottles, use five ‘U’; if you need to store four bottles, just use six ‘U’.

New demands JT: Using plastics and modularised design to save shipping cost.

our plastic racks are lighter than metal racks helping to reduce fuel consumption. This is also why we began recycling material in 2006.

Future’s challenges? LA: To reduce overall costs and to improve products so they are more durable, and protecting the bottles during their hard life. The environmental issue is definitely considered today:

CS: In today’s economic climate, most bottlers are looking at ways to reduce costs while increasing their customers’ and employees’ satisfaction. According to a recent industry study in the US, the majority of a HOD operations costs are in i) transportation, ii) plant operations, and iii) container and packaging. The use of a modular system within an HOD bottler/distributor will reduce costs and improve efficiencies in all three areas.

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FOCUS 55

Eastern promise

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Eastern Europe is a mixed bag of long-established areas and neighbouring newcomers. cooler innovation looks at the issues affecting an industry that, in some countries, is still finding its feet.

Bottled coolers If the bottled cooler was suffering in more mature markets, then youthful East Europe was no exception. The difference: while in Western Europe the industry is threatened not only by the economy but divided over the huge market share in mains-fed dispensers, in the East the bottle’s still talking. “In the Ukraine the market for HOD in 5-gallon containers has potential for development,” says Galyna Chernopyska, Marketing Manager of JSC Nova.

Nova

“Currently, this service is used by 62% of companies and only 5-7% of households, according to a survey of the Ukrainian HOD market in 2009, Ipsos Ukraine. “People who do not use the HOD service usually buy water in smaller volume or use water filters, and households also use water from pump rooms. So a high percentage of potential service customers (28% corporate, 45% household) who haven’t yet recognised the need for a HOD service means there is still a widely untapped population. According to surveys, 6% of households and 14% of companies are looking to use the 5-gallon HOD service in the near future.” Nova is the only national HOD operator in the Ukraine, which illustrates the growth potential. Meanwhile, more established Russia and Poland remain by far the largest bottled water cooler markets in the region,

both in terms of units and volume. “My impression of the Russian cooler industry was one of vitality, reminding me of the golden days of the BWCA in the mid 1990s. There is certainly a thirst for knowledge there!” says sometime visitor and advisor to the region, Watermark’s Mike Hurst. Russia retains market leadership, with 40% of units and 33% of volume. However, as the earlyadopting markets begin to mature, Mike Hurst says faster growing markets such as Serbia and Romania are eroding the share of the leading countries. “I act as consultant and trainer to the Baltic Water Cooler Association. It is no secret the economy of these states has been more severely hit by the recent economic depression and consequently the industry is not as bullish as it was a couple of years ago. However, legislative difficulties for coolers in EU new-entrant countries have been resolved and there is no reason why the industry should not progress once more when the economic situation improves. At the moment it is holding its own. A vital and active Ukrainian cooler industry (they have their own EBWA-linked Association) should see the cooler market continue to expand.” “Nova forecast for 2010 is market expansion by 5%, which will make 212.5 million litres,” says Galyna

According to the latest report from leading drinks consultancy Zenith International more than 125,000 new bottled water coolers, dispensers and pumps were installed across East Europe in 2008, bringing the total to 1.65 million, an 8% increase on 2007. But 2009 brought a global downturn, and East Europe was no exception.

Chernopyska. “Such a modest market expansion is forecast because of the economic situation, the influence of recent political events and the yet non-established culture of bottled water consumption. However, it is expected that the situation will stabilise and the promotion of healthy lifestyles - good nutrition and self-care - will promote the development and market growth of the HOD service.”

Mains-fed Unlike Western Europe, mains-fed coolers have yet to make significant inroads in the East. Nevertheless, their availability is

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“There is certainly a thirst for knowledge”

“In 2009 we noticed some decrease in bottle cooler sales while mains-fed showed a stable growth,” says Tatiana Shakhray, Oasis salesperson for East Europe, Russia and CIS. “Bottle coolers are still our primary product range, but we foresee the continuance of growth of mains-fed sales. This process is more evident in highly populated areas with heavy traffic and lack of mineral water sources and rather slow in the countries with lots of mineral water sources and good logistics conditions. “Many bottlers have introduced mains-fed to their product portfolios, demonstrating that demand for mains-fed is growing

“The current industry is bottle focussed,” says Mike Hurst, “but I did encounter some interest in mains-fed when at the December 2010 Moscow meeting of the BWPU. I warned them to get ready for mains-fed coolers and implement standards before the mains-fed companies organised themselves.”

among consumers, and water manufacturers will retain their customers by offering them a wide range of bottle coolers as well as mains-fed and drinking fountains. Since competition between bottled and mains-fed products is growing it has become even more important for water bottlers to meet and exceed their customers’ expectations in cooler sanitisation and hygiene.” Mains-fed is a cat among the pigeons, and how Eastern Europe really feels about it is not clear-cut. The sentiment appears to differ between countries, and even internally. “Mains-fed does not seem to have the bright future in Russia that some think because of consumer perception of the quality of some Russian tap water,” says Mike Hurst; in Poland he noticed quite the opposite. “The mainsfed industry is growing fast - not surprising with mains-fed coolers being made there. The industry is getting itself organised. Major filter manufacturers were present at a recent meeting to discuss the setting up of a Polish mainsfed association. With bottled cooler interests resisting mains-fed within the Polish Cooler Association it seems likely that a similar situation to the UK may occur, with two separate cooler associations rather than the better Dutch example with one association for both mains-fed and bottled coolers.” And in some countries, like the Ukraine, mains-fed still seems to have a role as a fall-back or add-on as

increasing in some more established bottled cooler markets such as Poland, and much like Western Europe mains-fed is expected to become a key challenge for operators in the future.

opposed to a main player in the cooler industry. “Mains-fed installations are offered mainly to the corporate customers in need of greater volumes of water and they are considered as an ‘alternative’ option to the bottled water and filters,” says Galyna Chernopyska. “Mains-fed distribution in Ukraine is at present insignificant, but companies appear to be increasingly offering such installations.”

Added value

of the game. “The market leaders offer additional products, usually consisting of equipment for heating, cooling and dispensing of water, as well as tea, coffee and cream,” she says. “According to surveys, the percentage of customers ordering additional products is above 80%. The sanitary maintenance of coolers is not a compulsory service, but big companies usually offer free cleaning of coolers and equipment reparation.”

What can you get for your money - where are the extras? That’s what purchasers look for and, says Galyna Chernopyska, that’s what’s keeping the market leaders in Ukraine ahead

Looking to the future, Zenith forecasts that there will be just over two million bottled water coolers, dispensers and pumps across East Europe by 2013, with electronic coolers accounting for over 70%.

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MARKET PROFILE 57

WQA Aquatech USA 2010 9-12 March, 2010, Orange County Convention Centre, Orlando, Florida

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pbeat and wellattended, the success of this year’s WQA Aquatech USA Water Opportunity Show could be a harbinger of good things to come in the water cooler industry. cooler innovation’s Joanna Shilton reports.

Agenda overview On Tuesday 9 March the Orange County Convention centre was a hive of activity, with exhibitors setting up and education sessions getting under way. The sunny Wednesday morning began with the much anticipated State of the Industry session presented by Peter Censky, WQA Executive Director. This wasn’t a discussion just about how recession has affected the industry, but how products - and therefore the market - are changing; there is light at the end of the tunnel, he said. Peter talked about ‘Five Big Trends’ that have affected the current state of the industry: Consolidation (of business), Personal Environmentalism (greener homes), Green (energy saving technology), Consumer (awareness and expectations) and Credibility (certification).

The WQA wants all its members to have fully certified and trained staff, to comply with laws and to integrate into local communities; Peter urged members to “get to know your mayor” and advised that as customers are getting smarter so it is imperative the consumer has peace of mind, with the knowledge there are qualified technicians and not just ‘cowboys’ servicing machines and looking after their water needs. Business should not just be about sales, he said, but also about offering a full service. WQA has an international concern, and along with joint organiser

RAI Amsterdam hopes all its members not only survive the recession but also the recovery: “survivors of the recession - will you survive the recovery?” The trade show officially kicked off on 10 March after the impressively presented Opening General Session, introduced to a packed audience by Paddy Young, Domain Manager for Aquatech Global Events, who then handed over to Vincent Kent, WQA 2009/2010 President. There was a definite sense of competitors coming together to share ideas and success stories in an attempt to strengthen the industry as a whole. The old adage ‘what happens in California . . .’ still stands strong, but the order of the day was the power of WQA membership, which in turn can increase business with the supply of new leads, supporting both dealers and manufacturers. Tim Miles gave a very entertaining ‘Wizard of

Ads’ presentation and educated the audience on ‘The Pendulum - marketing in 2010 and beyond’, with a look at the driving forces that made Western society what it is today. Generations go in cycles, Tim said, and with the help of a multimedia presentation he introduced the notion of Civic and Idealist generations (Strauss and Howe - Generations, 1991) in American and Western society, that act as a swinging pendulum to affect and change confidence and decisions of the general public. Tim talked about the importance of interconnectivity and gave advice on how to confidently communicate with business consumers.

Technologies and the future A packed schedule of events with lots of technical and educational conference sessions made for an interesting mix both on and off the floor. The general

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feeling was one of positivity and looking to the future. The US market has a lot of growth still to come, and like its European cousin is embracing the mains-fed industry alongside continued growth within the bottled market. Something that seemed new to me were the mains-fed machines that provide both water and ice in one unit - Coway and Follet both had examples on show, and the chewable ice had to be tasted to be believed! AquaStage presentations were numerous throughout the trade show, and there was definitely a focus on

education and training in the industry with additional hands-on Product Training and User Group sessions. The New Product Showcase was popular, and with the increase in popularity of mains-fed machines, filters were notably, and naturally, represented as a driving product innovation force. Filtration company Norit Filtrix was present, celebrating the WQA certification of their ultrafiltration WaterPurifiers and subassemblies to both the US EPA Standard for Microbiolgical Water Purifiers and NSF P231, with a brief presentation and refreshments.

Event buzz Even though the square footage of the show may have been smaller than last year’s, it felt as if there were more exhibitors and in turn more visitors than in 2009. After a difficult year everyone is looking to the future with increased optimism and the knowledge that there is business out there. The torrential rain on Thursday and Friday was unseasonal for Florida but meant visitors spent even more quality time talking business, and the networking events gave a chance for exhibitors to mingle and motivate each other. The

water cooler industry is a sociable lot, and Orlando was no exception to the rule.

About WQA The WQA provides guidance to all its members with the sharing of wisdom. Its role is to support and inform members, as well as defend and educate not only the water industry but also related organisations. WQA represents its members well, with a not-for-profit, certified website that all members are linked to and can therefore gain new business by association with. www.wqa.org

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EVENT REVIEW 59

Business debate

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Rentals vs Sales One product with two business models, both of which have their challenges. We speak with two company directors who, despite operating on both sides of commercial approach, play devil’s advocate as we look at the pros and cons of rentals and sales.

Buy into sales to pay the rent

ow can the rental business keep its cooler in the face of cheaper units? Embrace it, of course, writes Robert Laughton, Managing Director of the The Water Delivery Company.

UK water cooler companies that simply look to protect their rental income streams will struggle and ultimately fail in the future. The industry needs to adapt to a changing environment and look to build long term service relationships, with

both purchase and rental customers, that ensure long term protected revenue streams.

The industry needs to adapt to a changing environment Customers don’t purchase water coolers simply because they are cheaper to buy. Many choose to use capital budgets for equipment such as water coolers, and therefore rental options are simply not applicable. This is especially true of the customers who use our specialist website www.drinkingwaterfountains. co.uk. Drinking water fountains are often installed in buildings during a kit-out and therefore fall into capital budgets. So whichever way you look at it, rental water cooler businesses need to provide purchase options for customers, and given the way there are increasing options online for purchasing, these rental companies need to provide competitive pricing. When I first came into the industry seven years ago

The water cooler business in the UK is definitely showing signs of maturity. “Customers have options between bottle-less and bottled water coolers, drinking water fountains are growing in popularity and companies are increasingly having to deal with customers who are significantly more educated regarding pricing and service options by comparing water cooler companies online.

rental companies would often only be offering limited purchase options and these were priced at extreme mark-ups - and I can almost guarantee that these were offered to persuade people rental was the cheaper option. With transparency of pricing online this simply does not stack up. The water cooler industry must adapt itself to normal retail margins as there will be significant amount of ‘box shops’ that will compete at these levels. More importantly they will also survive as businesses with these margins. If water cooler companies look to building long term service relationships with both rental and purchase

customers they are also able to build a business with long term revenue streams. As long as margins are right we can build businesses with trained engineers and wellpaid staff that can support the customers’ water cooler experience. So adapt to the perceived ‘threat’ of water coolers for sale, and then structure the pricing and service options within your business carefully. For these reasons and many, many more the water cooler industry needs to nurture innovation and weave the ability to adapt into the very fabric of its being. There are water cooler companies in the UK that have already embraced this.

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Why we shouldn’t sell out

Being able to charge good rental fees requires the sales price of your cooler to be kept high. Why rent a cooler for £120 a year when it can be bought for £50? But if it costs £495 and can be rented for £120 then it looks like a great deal. Customers will stay with a company if they have no real reason to leave. To reduce

your ‘quits’ you must be doing everything else right; concentrating on sales alone does not work. I see too many companies digging holes in the sand: the more sand (sales) they remove the more the sand (quits) falls back in. Some company churn rates are enormous and once in that cycle it’s very difficult to break free.

What can go wrong? Here’s an example: a customer can run out of water; s/he calls the supplier and is met with an automated telephone system; when they finally get through they are told they may have to wait two weeks until their next scheduled delivery date. It’s more common than you think.

Charge as much as your service and the machine is worth Within the water cooler industry it’s very easy not to see the bottles for the coolers. Our customers however rarely think on their

Good behaviour • Answer the phone when the customer calls • Deliver when you say you will • Drivers should be smart and polite • Vans should be clean and modern • Invoices should be clear and accurate • Deliveries should suit your customer more than it suits you • Charge a fair price but not a cheap one • Train your sanitisation engineers well. They spend the most time with your customers . . . train them to get feedback about service and customer satisfaction levels, and deal with any issues quickly

Once a cooler has been paid for, every month thereafter that it is out in the field it’s making a small profit which, when multiplied over the customer base, can add up to a very tidy sum. And of course, the great thing is that next month the money notes grow on the same tree and you get to pick them all over again - and the tree grows the same leaves every month. I have some customers who have been with me over 10 years.

I could fill a whole page with ‘customers’ reasons to leave’. If a customer doesn’t have a reason to leave he does not have any need to entertain the salesperson who comes on the phone to offer them a FREE cooler for life, a box of chocolates and £50 worth of Marks & Spencer’s vouchers . . . they don’t need the hassle. When you have great service, friendly and motivated drivers, and a back office that actually answers the phone, rentals can be achieved (and good ones at that). Some larger accounts will stipulate they will not pay a rental. At that point an informed decision needs to be made as to whether the profit from the water will make it all worthwhile; far too many companies make a big mistake here and do not get the calculations right.

way to work “I wonder if I am getting a good deal with my water cooler company?” or “I wonder if it’s natural mineral water or from a reverse osmosis process?” I understand that this may come as a bit of a shock to a few people in the industry but in the normal workplace no one gives a second hand plastic cup about a water cooler unless something goes wrong.

n the face of increased price competition in the purchase market, rental might look like the harder option. But it’s worth fighting for, writes Ron Hounsell, Managing Director of Cameron Water.

They see the cooler numbers and, if they are making a £1 a bottle profit, fail to see for every £100 of cooler they need to sell a hundred bottles before they even start to make a profit! If the account is large it’s a lot of cash to swallow up just to get turnover (not profit); laying out large sums on coolers will seriously affect your cash flow, and having bad cash flow is like your business having a heart attack; it’s a quick death with sometimes very little warning. If you sell a cooler, then sell the maintenance package and offer them great service to keep the consumable part of their business. If something goes wrong with their cooler they will, 99 times out of a 100, come to you for the replacement if they don’t have a reason to leave. Rentals or sales: either way there is money to be made. The key for me is to make sure whichever you do, charge as much as your service and the machine is worth. Give your customers no reason to leave and the chances are, they won’t.

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BUSINESS VIEW 61

Watershorts

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News from the wider water industry

Brazil’s boys in bottles

ith a water bottle half full as favourites for the coming Fifa World Cup in South Africa, the Brazilian national team has revealed its kit has more that one goal.

Kit suppliers Nike manufactures the fabric using discarded bottles from landfill sites in Japan and Taiwan, and in producing the new range of shirts prevented 13 million bottles from disposal.

Yes, it is instantly recognisable as the Brazil strip, but it is also environmentally friendly, being made from recycled plastic bottles spun into a polyester yarn.

Brazil will be one of nine nations wearing shirts made with the fabric, along with Holland, Portugal, United

States, South Korea, Australia, New Zealand, Serbia and Slovenia. Dan Frolec, Middle East Business Director for

Nike, said: “We believe this design will allow for the best performance and also sustainability.”

Water's miraculous upshot

Ice River Springs internal

In a paper in the journal Optics Express, professor Chunlei Guo and his assistant Anatoliy Vorobyev demonstrated that by carving intricate patterns in silicon with high powered laser bursts, liquid can climb to the top of a silicon chip as easily as if sucked through a straw. Nanometer-scale structures in silicon increase the attraction water molecules feel towards its surface, according to Guo, and the attraction is so great that it overcomes the strong

bond between water molecules. Rather than sticking to each other the molecules ‘climb over’ each other to be the next molecule to touch the silicon. The result is upward water movement at 3.5cm per second. Although Guo's discovery has not yet been incorporated into a prototype, he thinks that silicon that can pump its own coolant has the potential to contribute greatly to the design of future cooling systems in computers.

anadian water bottler Ice River Springs of Shelburne, Ontario is building a PET recycling plant, making them the first bottled water company in North America to self-manufacture its own resin. Ice River Springs President Jamie Gott said: “We’re confident that our recycling plant will be a benefit to all, encouraging more recycling in North America. Our goal is to eliminate our dependency upon foreign virgin PET resin by self-manufacturing recycled resin from baled post-consumer plastic purchased from Municipal Recycling Centres.” Ice River Springs is using the teaming of sorting and

efying gravity and belief, researchers at the University of Rochester's Institute of Optics have encouraged liquid to flow vertically without any devices or unusual methods, apart from the actual surface it scales.

cleaning systems from Amut and Starlinger, which has proven to be a successful partnership in PET recycling in France.

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Watershorts

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Plastic fantastic

Winning the cup

arch 20 saw the much anticipated launch of Plastiki - a catamaran created with more than 12,500 reclaimed plastic bottles and recycled PET products.

The idea behind the remarkable vessel and its travels is to highlight the effects of global warming, sea level rise, ocean acidification and marine pollution, and Plastiki will be making stop-offs at sites of ecological importance. The craft features many renewable energy systems, including solar panels, wind and trailing propeller turbines and bicycle generators, and is the

tarbucks has joined the Betacup campaign by sponsoring the competition that challenges designers to come up with a recyclable coffee cup.

brainchild of David de Rothschild. De Rothschild is a direct descendent of the famous banking empire, but instead chose a career as an explorer and environmentalist. The Plastiki carries up a crew of up to six at a time, which will chop and change throughout the expedition as it welcomes on board artists, adventurers, scientists and filmmakers. The expedition is being documented through several channels including a website, Facebook and Twitter pages.

Starbucks hopes that the outcome will mean that by 2015 100% of its coffee will be served in ecological receptacles, and is pledging $20,000 in cash prizes for the most innovative ideas. A statement from Jim Hanna, Starbucks’ Director of Environmental Impact, said: “Given the complexity of the disposable cup waste issue, we need a broad range of stakeholders to

become involved in finding solutions. In addition to working with local municipal governments, materials suppliers and cup manufacturers to improve recycling infrastructures, we believe in harnessing the creativity of environmentally conscious individuals to identify new alternatives. We’re looking forward to seeing how people respond to the challenge.”

Boxing bottles A square Coke bottle designed by Andrew Kim has been sparking interest about more ecologically sound packaging. Square bottles both stack and collapse more easily, promoting more practical logistics. However, the shape apparently falls short on creating the correct pressure for carbonated drinks. But the design debate is an interesting one and is set to continue.

The craft set sail from San Francisco for its destination Sydney, Australia, across the Pacific Ocean.

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www.foodbev.com/cooler Issue 26 - April · May 2010

NEWS 63

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Hot topics in today’s broadcasting While businesses come under green fire, Emily Cowls looks at the next step in environmental responsibility. Carbon footprinting has changed the way many businesses are run. Now it looks like water footprinting is set to do the same. A water footprint consists of the total amount of fresh water that is used both directly and indirectly to run and support the business. And there are three types of water footprinting: green, blue and grey. Green is water that has evaporated due to crop growth originating from rainfall; this is most relevant to agricultural products. Blue consists of water due to irrigation or groundwater, not rainfall. Grey water is the amount of water needed to dilute pollutants so the quality of

the ambient water agrees with the levels set by the water quality standards. The two main pioneers of water footprinting are SABMiller and the World Wildlife Fund (WWF). As one of the world’s largest brewers SABMiller compiled a case study on its own water management, revealing most of the water usage was taken during the agricultural process, where instead of crops relying on rainfall they were instead irrigated. In the Czech Republic the water footprint of their brewing process was 224% higher than that of the business’s water usage in South Africa. To determine what to do next SABMiller held workshops in each country and developed

individual localised action plans to reduce the water footprint of that area. It also set up varying workshops around the globe to develop corporate responsibility criteria around water. Whilst the findings of this report bring to light the heavy reliance of companies on fresh water they also highlight the need for regulation of fresh water use. There are still important issues that need to be dealt with before it becomes common practice within industry, including gauging the connection between geographical location and the relevant ecologically acceptable water usage levels. To become useful this will need to be standardised; at the moment

Emily Cowls the acceptable levels are left to the discretion of the individual companies. Corporate water footprinting may one day become as big as carbon footprinting but at the moment there are too many challenges surrounding water something that will only grow in the next decade. This means that companies must be prepared to step out of their own comfort zone to ensure the long term use of this vital resource.

Water on your iPhone

What it takes . . .

The App Bakery has released a version 1.0 of Water Buddy for iPhone and iPod Touch users. Water Buddy lets the user track their water usage. This helps them to keep it under control and can also help them save money.

10 litres of water to produce 1 sheet of A4 paper 30 litres of water to produce a cup of tea 50 litres of water to produce 1 orange 70 litres of water to produce 1 apple 75 litres of water to produce 250ml of beer 140 litres of water to produce 1 cup of coffee 168 litres of water to produce a glass (175ml) of wine 200 litres of water to produce a can of cola 3,900 litres of water to produce 1kg of chicken 5,000 litres of water to produce 1kg of cheese 5,500 litres to produce 1kg of beef

Similarly Siemens Water Technologies has developed a personal water footprint calculator for the social networking site Facebook that allows the user to estimate their annual water usage and share it with their friends in order to raise awareness about the importance of water conservation.

Tick: Water Saving Week is 12-18 June, 2010 Click: www.waterfootprint.org Check: Download a personal water assessor from www.watersavingweek.org.uk

148,000 litres to manufacture a new car from WaterSavingWeek.org.uk

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EXPERT OPINION 65

Your innovation partner cooler innovation 6 issues a year bottled water mains-fed coolers emerging technologies water innovation 6 issues a year packaged water still and sparkling ďŹ&#x201A;avoured and functional

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Part 4 - Audit Answers Watermark Consultancy’s Mike Hurst continues his look at the check items on the EBWA Distributor Audit, giving the reasons for their inclusion. Why do we need customer complaints records? All cooler companies have concerned customers, often because they do not understand the products. And occasionally there will be a justified complaint. Keeping a complaints system (even a simple notebook) ensures your staff deal properly with complaints and accept responsibility for ensuring they are satisfactorily resolved. In the common case of a complaint being received and then passed on and subsequently lost and forgotten about the customer assumes the cooler company does not care - with an obvious outcome . . . Not only is the customer lost but they may also complain to the authorities, who then pay you an unwelcome visit. A complaints system enables you log what issue your customers have and check that issues are resolved properly without customer frustration. We have to get our water from a EBWA-approved supplier. Why, we get a good deal from a local bottler? Not actually ‘Approved by EBWA’ but audited successfully by your National Association (NA). The key to any bottled water business is the quality and safety of the source used for bottling and the way in which it is bottled, including bottle washing. I know from experience that water sources that have been good for years can suddenly hit problems caused by extreme weather or a deterioration of source protection. The EBWA standard is the basis of the Audit, used by your NA. It is designed to ensure bottlers have the necessary quality systems, testing and maintenance in place to ensure water quality does not deteriorate or, in the worst case scenario, spot any trouble before the water

is released for sale. If you are happy with your bottler persuade them to join your NA. You may be getting a good deal but if something goes wrong with your bottler you are likely to lose your business - history tells us so. Not many bottled water companies survive a product recall. Why must bottles carry a batch number/date code? So you can identify any problem batches in the case of, say, taste complaints where bottles are held or returned - or, much worse, you find yourself in a product recall situation. Sometimes only one batch may be affected. You need to identify it. Make sure the bottles you receive are date coded (the ink may wash off if the bottles are handled carelessly or the inkjet can run dry).

Not many bottled water companies survive a product recall We wish to use outside contractors to sanitise our coolers. Must they be EBWA or National Association members? Not necessarily but you will need to ensure that they keep to EBWA standards in their working practices and their staff have the required training. You will need to prove this to the auditor. If the contractor fouls up it is your business that will suffer. NAs promote their members’ interests and would wish to guarantee the customers and governments that their members work to high standards. Use of nonconforming contractors could

ultimately destroy trust in the cooler industry in your country. Surely delivery notes are all we need to be able to trace our products? That depends on how good your delivery notes are. If there should be a problem with a batch of product you will need to be able to identify every recipient of water from that batch and stop them drinking it. If you cannot do this you will have to get water back from every single one of your customers and probably notify the press. It is in your interest to have a good traceability system. Why does EBWA want to know if our coolers are CE marked and if we conform to the WEEE Directive? Because your NA (not EBWA) needs to be able to reassure the public that the equipment you supply conforms to National Legislation on electrical safety and that you are fulfilling your responsibilities in recycling of waste electronic and electrical equipment. Why the need for a bayonet system air filter? This has been enshrined in EBWA standards since the beginning. Coolers effectively began in Europe in the UK. The government there were of the opinion then that coolers should be sanitised every day as they were deemed to be refillable containers - the most convenient designation around. On being informed of the sealed reservoir bayonet loading system recently available in the US the government department responsible agreed two important things that have had a major impact on our industry: i) coolers can go three months without emptying and cleaning,

Mike Hurst and ii) cooler water is regarded as a form of bottled water and should consequently be judged at bottling and not when dispensed from the cooler tap. How do I know? I was involved in the discussions! To remind you: the system EBWA requires for bottle coolers ensures that: • bottles can be loaded without spillage and anybody touching the water • all replacement air that enters the bottle as it is emptied has to pass through a filter that will remove airborne dust and micro-organisms. Please explain why we need to prove why our coolers, caps bottles etc are made of food grade materials. Aren’t they alike? Unfortunately there are some bottles, coolers, caps and cups around that are made of doubtful plastics. These can contaminate the water. Use of certificated materials means we can be pretty sure that water is not contaminated from these sources. Be very wary of unknown and even unlabelled items. A responsible supplier will be able to provide you with the correct certification. That concludes this look at the rationale of the new EBWA distributor standards. Be aware that some countries like the UK have been running such audits for many years without difficulty and that the standards are proven and reasonable.

www.foodbev.com/cooler Issue 26 - April · May 2010

EXPERT OPINION 67

COOLER innovation

The next issue of cooler innovation - dripping with interesting reads

Are they being served? Whether theyâ&#x20AC;&#x2122;re mass catering, cutting costs or greening a bottle-heavy business, many of our most hard-working coolers are found in the Horeca sector. Designs for life Coolers in the home need to look good, feel good and make the drinking of pure, chilled water uncomplicated, unencumbered and, most importantly, indispensible. Any which way An unstructured delivery system loses time and money. With good route optimisation it should all be easy driving. Plus: News, business, water issues, association updates, business insights, product launches and innovations, and more. If you have any contributions, comments or suggestions for the next issue, please contact the editor: rd@foodbev.com

EBWA matters EBWA’s appeal By Managing Director, Gustav Felix

To all Members, and in particular to the Members from Central and East European Countries: With impending Committee and Board Meetings in Vienna, EBWA Management is inviting suppliers, distributors and bottlers not yet involved in the Committee work to join in and bring their knowledge and experience to one or more of the following Committees: • Education & Audit • Standard & Technical • International Supplier & Trade Fair • Environmental • Point of Use (mains-fed) All these Committees and their chairpeople have done and continue to do a great job to the benefit of the entire industry. To keep up with global challenges and move from strength to strength we can use further support. EBWA Management will be pleased to welcome new Committee members in Vienna.

Association Française de l’Industrie des Fontaines à Eau (AFIFAE) AFIFAE has elected a new board:

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German Watercooler Association (GBWA / GWCA) AGM “Water cooler industry is pleased with the results in 2009 and sees it as a good year!” The Annual General Meeting of the German Watercooler Association, which includes the former German Bottled Watercooler Association, took place on March 24, 2010 in Düsseldorf and considered the past year as a promising one for the industry in Germany. GWCA estimates an average of 149,000 sales of bottled water coolers in 2009 (147,500 in 2008). In the area of mains-fed GWCA estimates 75,000 coolers in 2009 (60,000 in 2008). Water coolers seem to be in demand at the moment, which could be as a result

of press releases and magazines related to health, fitness, vitality; and water coolers are regarded as a perfect tool to fight obesity. The AGM fully supports the Association’s initiative to make sure all schools and kindergartens in Germany benefit from hydration via water coolers. GWCA is pleased with the support received from the Children Commission at the government level, confirming the necessity of providing all schools with water coolers, free of charge for the students.

The GWCA AGM elected the new Board: Chairman: Gustav F Felix, of Interconsult, Düsseldorf

President: Nicolas Milesi, Managing Director of Chateaud’eau

Vice-Chairman: Sönke Rocho, Managing Director of Revos water coolers

Vice-President: Valérie Hirch Labouré, Managing Director of Nestlé Water France

Treasurer: Gabriele Kummerfeldt, Managing Director of ABO Filtertechnik

Secretary: Alain Auger, Managing Director of Dieau-Edafim

Communications: Jürgen Linde, Managing Director of Aquavital

Treasurer: Thomas Liccioni, Managing Director of Mistral

Additional Board Member: Veit Seemann, Managing Director Eden Springs

For 2010, the new Board will focus its energy on the following items: • Continue to promote best practices vis-à-vis hygiene and quality, ensuring by the end of the year each member joins Nestlé Water Direct France and Chateaud’eau as being validated by APAVE or Bureau Veritas as operating consistently with AFIFAE quality best practices. • Enhance communication actions by lobbying to public authorities and through PR to the media to promote the better hydration at work message, using the French regulation stating obligation of free access to fresh and qualitative (spring or filtered) water at work.

The AGM also accepted the final changes in the by-Laws meaning the next Board Meeting will be held under the name of GWCA. GWCA represents the interests of the entire water cooler industry in Germany emplacing a high level of consumer protection and safety.

• Agree with Public Authorities on timing of bottle label change from ‘Eau de Boisson’ to ‘Spring Water’. • Build a common communication kit with regards to environmental issues, specifically on how we contribute to offer low carbon footprint solutions to companies.

www.foodbev.com/cooler Issue 26 - April · May 2010

EBWA 69

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EPDWA’s thriving membership Despite the recession EPDWA continues to grow. Membership now stands at 145. New members in 2010 are: Aquaporte (Ballygowan) (Ireland); Green Mann Spring

(Isle of Man); Ological Bv (Netherlands); PHSI Europe Bvba (Belgium); RO H2O (UK). EPDWA now has four auditors in order to cope with the rising numbers of distributors

and bottlers requiring audits. Successful auditees are being awarded their EPDWAaccredited logos effective for one year following the date of audit compliance.

The audit committee is reviewing the current audit standards based on audit experience. The new standards will come into effect next spring.

EPDWA training EPDWA in Europe; a day with programme gains pace the European Vending Association The demand for EPDWA the most economic option By Emily Cowls As part of my work experience shadowing my grandfather, Mike Hurst (of Watermark Consultancy) I was asked if I would like to join him on a trip to the European Vending Association (EVA) in Brussels, so naturally I said yes. I have been asked by the editor to write an article about my thoughts on the day; so here goes . . . My first experience of international business air travel ended with only the slightest bump on landing at Brussels. A hectic taxi ride left us at the EVA offices an hour late, thanks to the British Airways strike. I first spent some time learning how the EVA worked and was then invited to sit in on the last half of the Hygiene and Food Law Committee meeting with Mike. It was quite an experience, finding myself sitting in the same room as leading hygiene consultants and representatives from major companies such as Sara Lee, Mars and The Coca-Cola Company. I was impressed by the EVA and the way it represents 63 vending companies and 20 different national

associations from around Europe - which is why the EPDWA joined them. The objectives of the EVA are: “To promote the interests of the European vending industry with any given party that may affect it so as to optimise the business, administrative and legislative environment in which it operates.” Activities covered by the EVA include the manufacture of vending machines, coolers, components and accessories, the supply of ingredients and the filling, cleaning and maintenance of machines. While I sat with the Hygiene and Food Law Committee, the topics they discussed varied, including: viable alternatives to HFC refrigerants, antimony in PET, Bisphenol-A, nickel release from metal components, bacteriological issues, carbon and water footprints, hygienic design of vending machines and balanced eating and drinking in schools. The journey home was relatively seamless (although we did have to run for the plane) and I arrived home mid-evening from a day, tiring but strangely invigorating.

training continues to grow. In the first quarter of 2010, 20 installers have passed the EPDWA-WRc-NSF installation course in South Wales and six overseas (Isle of Man) staff have passed the installation theory course. Courses for April and May are well booked. 111 cooler care and installation staff have received EPDWA Hygiene Awareness Training this quarter. The majority were trained at their company’s premises or venues arranged by the company. This is, of course,

if numbers are sufficient as EPDWA charges per course and not per trainee on such occasions. For companies who have low numbers requiring hygiene training, the EPDWA arranges courses at central venues open to all members. On March 23 the first of these courses was run at Newbury Racecourse. From 10 companies, 21 attended and all were successful (listed below). More courses are planned for the North (Manchester) and Scotland (Edinburgh) in April/May.

Name

Company

Harley Coram Jason Johnson Nick Barnes

Premier Watercoolers Premier Watercoolers Glug Glug Glug

Steve Beard Paul Taplin

Glug Glug Glug Glug Glug Glug

Thomas Taylor Simon Button Andy Kirk Darren Nixon Nick Burch Dave Maginn James Rugg Kelvin Reid David Reeve Dennis Kirby Gavin Burrows Adrian Franklin Allan Dennison Richard Fitzpatrick Gary Hall Emily Cowls

Glug Glug Glug Aquaid South Coast Aquaid South Coast Aquaid South Coast Aquaid Bucks Aquaid Bucks Aquaid Bucks Aquaid Central London Blue Direct Crown Water and Coffee Horizon Drinks Horizon Drinks Aquaid Essex Aquaid Essex Aquaid Essex Watermark

70 EPDWA

www.foodbev.com/cooler Issue 26 - April · May 2010

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Pressure Coolers Ltd POU’s, Fountains, Chillers Discount prices and install service TELEPHONE:

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Sanitising

Water filters and fittings

Onnic International Ltd.

designs and manufactures universal ozone generator kits for coolers, both Bottled Water and POU units.

12 St Tristan Close Locks Heath Southampton, SO31 6XR United Kingdom Tel: +44 (0)1489 578087 Fax: +44 (0)1489 578180 E-mail: sales@onnic.co.uk

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Truck bodies

Hesse Europe Ltd Wilczy Stok 19, 30-237 Kraków, Poland Tel: +48 (0)12 425 13 64 Fax: +48 (0)12 425 12 62 E-mail: wiktorl@kki.pl Website: www.grouphesse.com

DataBase Workshop Ltd Tel: +44 (0) 1827 52233 Fax: +44 (0) 1827 52234 E-mail: info@dbworkshop.com Website: www.dbworkshop.com

Water filters

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Aqua Cure House Hall Street, Southport PR9 0SE United Kingdom Tel: +44 (0)1704 516916 Fax: +44 (0)1704 544916 E-mail: sales@aquacure.plc.uk Website: www.aquacure.co.uk

For the latest industry news, views and opinions, visit www.foodbev.com/ cooler www.foodbev.com/cooler Issue 26 - April · May 2010

CARBONIT Filtertechnik GmbH Industriestr. 2 D-29410 Salzwedel (Germany) Tel : +49 39035 955 0 Fax : +49 39035 955 242 E-mail: info@carbonit.com Website: www.carbonit.com

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MARKETPLACE 73

Light at the end

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The lighter side of the industry

Welcoming the latest member of the cooler community

Hannah with Phoebe (nearly three) and one-day-old Sam

cooler innovation readers will be delighted to hear that long-term editor Hannah

Oakman has a new addition to her home. No, it’s not a super stylish table-top water cooler.

cooler innovation ADVERTISER INDEX Page

3M AA First Circon Activewhere Allpure AquaCure Aquis Asset Azure Blackhawk Blupura CEM Clover Cosmetal Crystal Mountain Fairey Ceramics FoodBev.com Kleena Coola

22 76 25 68 41 31 2 39 59 16 37 32 53 29 15 66 68

Page

Krystal Kritis Lamaplast Microfilter OP Sarl Polymer Solutions Sam Jin Sigma SIP Tech Subscriptions Tana Thermo Concepts Total P&P Trefle Watercoolers Direct Wongbong Zerica

66 28 21 27, 55 75 24 66 6 64 11 42 71 19 13 45 4

Baby Sam was born on February 23, weighing in at 7lb 14oz. Hannah, apart from the

odd bout of sleep deprivation, is doing well and Sam’s sister Phoebe is over the moon.

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74 FINAL WORD