Bottled Water Reporter by IBWA

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

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IN THIS ISSUE What IBWA Is Why California's How IBWA Is Recycled Content Making Social Doing to Demonstrate Mandate Failed Media Connections Water's Role in a Healthy Diet

BOTTLED WATER REPORTER | NOV/DEC 2018

THE SHAPE OF THINGS TO COME How the "Internet of Things" Is Changing the Global Beverage Industry

Also Inside:

IBWA's Efforts to Build a Better Audit Program A PUBLICATION OF THE INTERNATIONAL BOTTLED WATER ASSOCIATION

VOL. 58 • NO. 6

COLUMNS GOVERNMENT RELATIONS

20 | Case Study: Recycled Content in California (Part I) Why California's recycled content mandate failed. COMMUNICATIONS

22 | Making Social Connections How working with members—our greatest social media influencers—helps IBWA at a grassroots level. TECHNICAL UPDATE

24 | Process to Develop 2020 Dietary Guidelines for Americans Continues How IBWA is working to ensure water's important role in a healthy diet continues to be emphasized in the Dietary Guidelines. VALUE OF IBWA MEMBERSHIP

28 | Camaraderie and Connections Scott Haden (Consolidated Container Company) discusses how his IBWA supplier membership has helped him network with industry decision makers.

TABLE OF CONTENTS 10 | The Shape of Things to Come More than any other factor, technology is having the greatest influence on product development and innovation in the bottled water industry. It is led by something that is literally all around us: the Internet of Things. This article introduces a few products from the U.K. that are taking advantage of this innovative technology—and they could influence the global market. By Bill Bruce

CHAIRMAN'S COMMENTARY................................2 PRESIDENT’S MESSAGE.......................................4 WATER NOTES.....................................................6 CPO QUIZ..........................................................26 ADVERTISERS....................................................27 CALENDAR........................................................27

CONNECT WITH IBWA

15 | Building a Better Audit Due to implementation of the Food Safety Modernization Act (FSMA) regulations, significant changes are planned for IBWA’s Tier 1 Audit Program for the first time in 16 years. For the past two years, IBWA has held many discussions about the future format of the audit program. Find out what's new. By Chris Torres

BOTTLED WATER REPORTER, Volume 58, Number 6. Published six times a year by The Goetz Printing Company, 7939 Angus Court, Springfield, VA, 22153, for the International Bottled Water Association, 1700 Diagonal Road, Suite 650, Alexandria, VA 22314-2973. Tel: 703.683.5213, Fax: 703.683.4074, www.bottledwater.org. Subscription rate for members is $25 per year, which is included in the dues. U.S. and Canadian subscription rate to nonmembers is $50 per year. International subscription rate is $100 per year. Single copies are $7. POSTMASTER: Send address changes to Bottled Water Reporter, 1700 Diagonal Road, Suite 650, Alexandria, VA 22314-2973.

IBWA

International Bottled Water Association

CHAIRMAN’S COMMENTARY SUCCESS: IT DOESN’T HAPPEN WITHOUT YOU

For IBWA to continue to serve our members and the public by championing bottled water and healthy hydration, we needed a plan. That’s why on September 20-21, 2018, IBWA’s Strategic Planning Committee and IBWA staff came together, with the assistance of an experienced association meeting facilitator, to review and revise the association’s strategic plan. Every three years, we assess the current situation facing both the bottled water industry and the association to identify what our mission should be, define our goals and objectives, and determine the best strategies and actions to help us achieve our goals. To make sure the Strategic Planning Committee included a good mix of representatives from small, medium, and large companies, we invited all Board members, Executive Committee members, and committee co-chairs to serve on it. We also wanted to ensure all members had a say on the issues the committee reviewed, so throughout the year—starting last February during our winter teleconference meetings—we asked all IBWA committees for their input. Last spring, we also asked all members to participate, anonymously, in a member survey in order to get your thoughts on what IBWA services and issues are most important to your company. The results from that survey helped guide our discussions during the Strategic Planning Committee’s September meeting. Areas of focus included the environmental circularity of our products; IBWA’s inspection program, education program, and strategic alliances; and continued support of representing all IBWA member companies—no matter what their size. I want to personally thank Tara Carraro, executive VP and chief corporate affairs officer at Nestlé Waters North America, for kicking off the meeting by sharing results from her company’s recent survey on consumer attitudes about water. We appreciate Nestlé sharing that data because it helped us define the current consumer landscape and enabled us to fine-tune our strategic discussions in a way that will benefit even our smallest members. Access to the results of this intensive survey is a great example of the tremendous value small bottlers receive as an IBWA member. Now that we have sketched out a strategic plan, the hard work begins: putting the plan into action. For that, we’ll need the support of all our members. We’re a small, but mighty, association! To effect great change, we need to come together—big, medium, and small members alike—and become great advocates not only of IBWA but also of the entire bottled water industry. Thanks for your continued support.

OFFICERS Chairman Lynn Wachtmann, Maumee Valley Bottlers, Inc.. Vice Chairman Robert Smith, Grand Springs Distribution Treasurer Brian Hess, Niagara Bottling LLC Immediate Past Chairwoman Shayron Barnes-Selby, DS Services of America, Inc.

BOARD OF DIRECTORS Shayron Barnes-Selby, DS Services of America, Inc. Joe Bell, Aqua Filter Fresh, Inc. Philippe Caradec, Danone Waters of America Tara Carraro, Nestlé Waters North America Andy Eaton, Eurofins Eaton Analytical Brian Hess, Niagara Bottling LLC Doug Hidding, Blackhawk Molding Co. Scott Hoover, Roaring Spring Bottling Dan Kelly, Polymer Solutions International Kari Mondt, Allied Purchasing Greg Nemec, Premium Waters, Inc. Dennis Rivard, Crystal Mountain Products, Inc. Bryan Shinn, WG America Company Robert Smith, Grand Springs Distribution Louis Vittorio, Jr., EarthRes Group, Inc. Lynn Wachtmann, Maumee Valley Bottlers, Inc. William Patrick Young, Absopure Water Co., Inc.

IBWA EXECUTIVE COMMITTEE Chairman Lynn Wachtmann, Maumee Valley Bottlers, Inc. Shayron Barnes-Selby, DS Services of America, Inc. Joe Bell, Aqua Filter Fresh, Inc. Philippe Caradec, Danone Waters of America Tara Carraro, Nestlé Waters North America C.R. Hall, Hall’s Culligan Brian Hess, Niagara Bottling LLC Henry R. Hidell, III, Hidell International Scott Hoover, Roaring Spring Bottling Dan Kelly, Polymer Solutions International Bryan Shinn, WG America Company William Patrick Young, Absopure Water Co., Inc.

COMMITTEE CHAIRS Communications Committee Julia Buchanan, Niagara Bottling, LLC Audrey Krupiak, WG America Company Education Committee Glen Davis, Absopure Water Co., Inc. Douglas R. Hupe, Aqua Filter Fresh Environmental Sustainability Committee Leslie Alstad, DS Services of America, Inc. Jeff Davis, Blackhawk Molding Co. Government Relations Committee Viola Johnson Jacobs, DS Services of America, Inc. Derieth Sutton, Niagara Bottling LLC. Membership Committee Marge Eggie, Polymer Solutions International Kelley Goshay, DS Services of America, Inc. State and Regional Associations Committee Joe Cimino, ChoiceH2O

Lynn Wachtmann IBWA Chairman

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Supplier and Convention Committee Joe Bell, Aqua Filter Fresh, Inc. Dan Kelly, Polymer Solutions International Technical Committee Andy Eaton, Eurofins Eaton Analytical Kevin Mathews, Nestlé Waters North America

ProStack ® &

P.O. Box 310 • Newtown Square, PA 19073 • (610) 325-7500 • www.prostack.com 2019Convention_HalfPage_PRINT.pdf

7/19/18

4:27 PM

SOLUTIONS APRIL 23-25, 2019 | LAS VEGAS, NEVADA USA EXPO APRIL 24-25

WQA.ORG/CONVENTION

2019 WQA CONVENTION & EXPOSITION

CMY

Date:

Mark Your Calendar

Tuesday, April 23 - Thursday, April 25, 2019

Location: Las Vegas Convention Center Las Vegas, Nevada

WATER TREATMENT SOLUTIONS YOU NEED.

PRESIDENT’S MESSAGE GREAT EXPECTATIONS

Bottled water continues to be America’s favorite packaged beverage, outselling carbonated soft drinks by volume. With consumers' continued demand for bottled water, the industry is exploring new ways to meet—and exceed—their expectations. Enter the Internet of Things (IoT), a concept that could revolutionize how consumers order our products. The IoT refers to a set of devices and systems that interconnect with the internet. Most of us are probably familiar with how the IoT makes “smart refrigerators” work—with wi-fi enabled touchscreen tablets built into the appliance’s door. According to Bill Bruce, editor of Refreshment magazine (published by U.K.-based FoodBev Media), you can expect the IoT to greatly influence product development and innovation in the bottled water industry. In “The Shape of Things to Come” (p.10), Bruce introduces a few of his favorite, innovative products—and suggests that “the smartest manufacturers and operators [will be] poised to take best advantage” of this intriguing concept. But the best way to continue meeting your customers’ expectations is to produce the safest possible bottled water products. Now that the U.S. Food and Drug Administration's Food Safety Modernization Act (FSMA) regulations are fully in effect, IBWA is making changes to our Tier 1 audit program for the first time in 16 years. FSMA’s Preventive Controls for Human Food Rule (PC Rule), which requires food producers to have a written plan established to prevent or reduce potential hazards, was the catalyst for the audit program update—and IBWA’s sole purpose with this revision is to help members be compliant with FSMA. In “Building a Better Audit” (p.15), Bottled Water Reporter asked IBWA Vice President of Education, Science, and Technical Relations Bob Hirst to explain the challenges the Technical Committee faced in developing the updated audit program—and clarify who, if anyone, is exempt. This issue’s Government Relations column (p.20) takes a deep dive into understanding the problems with the mandate for recycled content that California attempted to pass in 2018. Our Communications Column (p.22) is a call to action: we propose that our members are our best social media influencers, and we invite all members—big, medium, and small—to take advantage of the educational social media toolkits IBWA creates for your use. Finally, in the Technical Update column (p.24), we review the work IBWA is doing to demonstrate the importance of water in a healthy diet in the to-be-published 2020 Dietary Guidelines for Americans, which is the foundation for federal nutrition programs and policies. As we close out 2018, I just want to take a moment to thank all IBWA members for the hard work you’ve done this year. The successes we’ve had would not have been possible without your dedication to this association. I’m very grateful, and I look forward to working with you in 2019!

IBWA

International Bottled Water Association BOTTLED WATER REPORTER is published for: International Bottled Water Association 1700 Diagonal Road, Suite 650 Alexandria, VA 22314-2973. Tel: 703.683.5213 Fax: 703.683.4074 www.bottledwater.org

IBWA STAFF President Joe Doss jdoss@bottledwater.org Vice President of Education, Science, and Technical Relations Robert R. Hirst bhirst@bottledwater.org Vice President of Communications Jill Culora jculora@bottledwater.org Vice President of Government Relations Cory Martin cmartin@bottledwater.org Director of Conventions, Trade Shows, and Meetings Michele Campbell mcampbell@bottledwater.org Director of Government Relations J.P. Toner jtoner@bottledwater.org Director of Science and Research Al Lear alear@bottledwater.org Director of Communications Sabrina E. Hicks shicks@bottledwater.org Manager of Member Services Cheryl Bass cbass@bottledwater.org Communications Coordinator Chris Torres ctorres@bottledwater.org Education and Technical Programs Coordinator Linda Alfakir lalfakir@bottledwater.org Executive Assistant Patrice Ward ibwainfo@bottledwater.org Bottled Water Reporter Layout and Design Rose McLeod rozmack@gmail.com Tel: 315.447.4385 Editor Sabrina E. Hicks shicks@bottledwater.org Advertising Sales Stephanie Schaefer stephanie@bottledwater.org

Joe Doss IBWA President 4

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SOCIAL M EDIA MESSAGING BOARD If you are looki ng

for new opport unities to conn ect with educate them about bottled w to share any of ater issues, feel the following on free [Post on Nov. 15]An empty #BottledWater your social med November and ia si te s during December—or bottle in a recycling bin is a Beautiful be inspired and Thing! Today, on America Recycles Day, write your own!

consumers and

DID YOU KNOW? More than 100 million U.S. adults are now living with diabetes or prediabetes, according to the CDC. This November, during #AmericanDiabetesMonth, we’d like to remind you that water is the perfect drink for people with diabetes. It does not contain carbohydrates or calories, and studies have shown that drinking water could help lower blood glucose levels. If you have diabetes, the American Diabetes Association offers this advice on what you can drink: “It’s important to stay hydrated and water is simply your best choice.” www.diabetes.org/food-and-fitness/food/what-can-i-eat/ making-healthy-food-choices/what-can-i-drink.html

National Campaigns November: American Diabetes Month, Movember, Stress Awareness Day (November 7), STEM Day (November 8), Veterans Day (November 11), America Recycles Day (November 15), Take a Hike Day (November 17), Thanksgiving (November 22) December: World AIDS Day (December 1), National Cookie Day (December 4), First Day of Winter (December 21), New Year's Eve (December 31)

[Post after Dec. 21]Eating snow is one way to increase your water intake this winter—but we don’t recommend it. Stick with safe, refreshing bottled water. And remember: When we heat our homes and offices, we also create dry winter air—make sure to sip water throughout the day to help ensure you don’t get dehydrated.

Looking for a new project to do on National STEM/STEAM Day? Try this: Water Bottle Fountain ~ States of matter ~ the air from the balloon pushes the water out through the straw! www.pinterest.com/pin/414964553162768863

[Tweet on Nov. 17]It’s #TakeAHikeDay! When out on the trails today, remember the hiker’s adage: Pack it in, Pack it out! Take #BottledWater with you to help keep hydrated along the trek—just remember to pack it out with you to the closest recycling bin when you are done! Find a trail near you. www.alltrails.com #PutItInTheBin

we encourage you to increase your personal recycling rate by making sure to take your empty plastic bottle—with cap on—and #PutItInTheBin today and every day! #BeRecycled

[Post during November]During #Movember, encourage the men in your life to focus on their physical and mental health. One small, easy step they can take is to replace sugary beverages with bottled water. Research shows that when men are adequately hydrated, they are less tired, less anxious, and can focus better on mental tasks. To learn more reasons why men should never neglect their water consumption, read “11 Reasons to Never Neglect Water.” www.mensjournal.com/food-drink/5-reasonsnever-neglect-water

Prevent cavities this sweet holiday season! Next Best Tip after brushing/ flossing? “Drink water or rinse mouth with water after eating.” www.pinterest.com/ pin/414964553151045877 It's easy to overindulge during the holidays. Help limit your calorie intake at parties by asking for sparkling water and lime. The Academy of Nutrition and Dietetics suggests this drink because it doesn't contain calories—and it looks festive! #HappyHolidays #DrinkMoreWater

#MOVEMBER MOTIVATION

The holidays can be stressful! Maybe start your #DrinkMoreWater Resolution early to help keep that stress in check! www.rd.com/health/conditions/drinkwater-reduce-stress

WATER NOTES

GOVERNMENT RELATIONS

From left: Derieth Sutton (Niagara Bottling), Rep. Lloyd Smucker (R-PA), Pete DePasquale (Nestlé Waters), and Viola Johnson Jacobs (DS Services).

IBWA Hosts Members for Fall Fly-In Visit With Congress in Washington, DC IBWA recently coordinated a Fall Fly-In event on Capitol Hill in Washington, DC, in which a few IBWA members met with members of Congress to discuss key issues impacting the bottled water industry. IBWA members Derieth Sutton (Niagara Bottling), Pete DePasquale (Nestlé Waters North America), and Viola Johnson Jacobs (DS Services of America) participated in the visits with IBWA staff on September 26. Among the subjects discussed were labeling reform, use of the term “healthy” on bottled water labels, and the benefits of increasing truck weight limits. IBWA members and staff met with the congressional offices of Representatives Al Lawson (D-FL), David Scott (D-GA), Eddie Bernice Johnson (D-TX), Vicente Gonzalez (D-TX), Al Green (D-TX), Ralph Abraham (R-LA), Gus Bilirakis (R-FL), Alma Adams (D-NC), Lloyd Smucker (RPA), Glenn Thompson (R-PA), Michael McCaul (R-TX) and Raul Ruiz (D-CA). During the visits, discussions were also held on HR 6022, the Accurate Labels Act, which is a bill that would ensure sound science is applied to existing and 6

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new state and local labeling requirements. IBWA shared concerns about a potential patchwork of state-by-state labeling laws that are not based on sound science, and the detrimental impact it would have on the bottled water industry. As IBWA is also working the U.S. Food and Drug Administration (FDA) on an effort to potentially label bottled water products with the term “healthy,” time was spent educating congressional members and their staff about the issue, and informing them on how they could get involved. While discussing truck weight limits, IBWA encouraged support for a 10-state voluntary pilot program that would increase truck weight maximum limits to 91,000 lbs, allow a sixth axle to trucks, and include a study on the impact of these changes to safety and the environment. The September 26 fly-in was the last official Capitol Hill event hosted by IBWA for 2018, but IBWA will continue to meet with congressional members to discuss these issues and others in support of establishing a political environment in which member businesses can thrive.

From left: Derieth Sutton (Niagara Bottling), Rep. Alma Adams (D-NC), and Viola Johnson Jacobs (DS Services).

Viola Johnson Jacobs (DS Services) and Rep. David Scott (D-GA).

WATER NOTES

EDUCATION

DWRF Presents 2018 Kristin Safran College Scholarship to Jules Guyard Jules Guyard’s goal is to be a neurosurgeon one day. But until that day comes, he spends much of his spare time giving back to his community of Weed, California, through several volunteering efforts. He once helped with fire relief for two weeks after a devastating fire burned through a portion of the town and volunteered with a food donation organization once a week for two years. He’s also known to help the elderly in his neighborhood whenever needed. Jules’ academic achievements are just as impressive. With a 4.3 grade point average, he was valedictorian of his graduating class from Weed High School. Jules, who is the son of Sebastien and Valerie Guyard of IBWA bottler CG Roxane, was also a member of the school’s soccer and snowboard teams and was active in the school’s student government. Currently, Jules is a Jules Guyard neurobiology major at UC Berkeley. His achievements have not gone unnoticed, as Jules is the recipient of the Drinking Water Research Foundation’s (DWRF) 2018 Kristin Safran College Scholarship. During the judging process, the Kristin Safran College Scholarship Selection Committee blindly reviewed applications from children or grandchildren of IBWA members. Judges did not know the names of the children, parents, or the company the parents worked for when reviewing the applications. Members of the committee include DWRF trustees Jack West, Stew Allen, and Kristin’s widower, Russ Safran. The Kristin Safran College Scholarship Fund was created by DWRF in February 2010, in honor of former IBWA Board of Directors member Kristin Safran (ARK Specialty Services), who passed away in 2009. The scholarship was established to help high school seniors pursue their college studies. For more information about DWRF, visit www.thefactsaboutwater.org.

TARIFFS

IBWA Urges the USTR to Provide Tariff Exemptions for Bottled Water Coolers and Filters IBWA submitted comments to the U.S. Trade Representative (USTR) on October 9, 2018, urging the administration to allow exemptions for bottled water coolers and filters from China that are currently facing 25 percent import tariffs. IBWA stated that it would be extremely difficult to procure these products from countries other than China and also argued that tariffs would have a negative financial impact on the industry, particularly for many small- and mid-sized bottled water companies. In total, these tariffs may increase costs to the industry by $306.9 million each year. The USTR announced tariffs on several imports from China earlier this year, including bottled water coolers, filters, and other products and machinery important to bottled water companies. When this occurred, IBWA submitted comments to the USTR urging the administration to remove the bottled water products from the list of potential items facing tariffs, citing potential financial harm to the industry as a key reason. Unfortunately, the products remained on the list, and tariffs were imposed on July 6. If you have any questions on this issue or would like a copy of the comments IBWA submitted to USTR, please contact IBWA Vice President of Government Relations Cory Martin: cmartin@bottledwater.org.

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PFNA AND 1,2,3-TCP

Monitoring and Testing Requirements for Emerging Contaminants Finalized in New Jersey The New Jersey Department of Environmental Protection (DEP) amended its Safe Drinking Water Act (SDWA) rules in September to include the adoption of a maximum contaminant level (MCL) of 13 parts per trillion (ppt) for perfluorononanoic acid (PFNA). It also set an MCL of 30 ppt for 1,2,3-trichloropropane, also known as 1,2,3-TCP. The standards are based on recommendations from the New Jersey Drinking Water Quality Institute (DWQI), an advisory panel comprised of a variety of water-quality experts that reviewed health studies and other data to support the levels. Testing for the new standards will begin March 3, 2019. Listed below are the changes to expect for PFNA and 1,2,3-TCP:

PFNA: This new rule adds the DWQI-recommended MCL for PFNA of 0.013 μg/L to the SDWA regulations, in addition to monitoring and treatment requirements for public community and non-transient non-community (NTNC) water systems starting in 2019. Additional details are below. 1,2,3-TCP: This new rule adds the DWQI-recommended MCL of 0.030 μg/l to the SDWA regulations and requires monitoring and treatment, as necessary, at both public community and NTNC water systems starting in 2019. The DEP is phasing in the SDWA monitoring requirements for 1,2,3-TCP and PFNA as follows: • First-quarter of 2019: All community water systems using a groundwater source(s) serving a population 10,000 or less and NTNC water systems

STATE RELATIONS

Recycled Content Mandate Legislation Defeated in California

Legislation in California that would have set a mandate for the use of recycled PET plastic in beverage containers was defeated in late August in the California Assembly. The bill would have established a 20 percent recycled content mandate for PET plastic beverage containers. 8

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The legislation also called for monthly reporting of data on the recycled content percentage for individual containers, imposed daily fines, as well as a penalty of perjury for violations of the law, and only allowed for the California Department of Resources Recycling and Recovery (CalRecycle) to review the

will be required to begin quarterly monitoring at all points-of-entry to the distribution system. • First-quarter of 2020: All community water systems using a surface water source(s) and all community water systems serving a population greater than 10,000 will begin quarterly monitoring at all points-of entry to the distribution system. Bottlers will be required to test for the contaminants annually at the time they renew their permits in New Jersey. Currently, the federal government does not have formal drinking water standards for either chemical. For more information on this matter, contact IBWA Vice President of Education, Science, and Technical Relations Bob Hirst: bhirst@bottledwater.org.

mandate after one year and only allow for the mandated percentage to increase. IBWA was joined in opposition to the legislation by the California Bottled Water Association, American Beverage Association, California Chamber of Commerce, American Chemistry Council, California Food Producers, Grocery Manufacturers Association, and other key industry groups. With the defeat of the bill, there is now an opportunity for further discussions and planning for a future recycled content mandate. IBWA has expressed interest for several months in having open and realistic conversations with groups who have been advocating for a recycled content mandate. For more information about the recycled content mandate issue, read this issue's Government Relations column on page 20. You can also contact IBWA Director of Government Relations J.P. Toner: jtoner@bottledwater.org.

ENVIRONMENTAL SUSTAINABILITY

IBWA Tours Water, Potable Reuse, and Desalination Treatment Facilities in California A group of IBWA members and staff participated in a one-day tour on October 2 of state-of-the-art water, wastewater, and potable reuse treatment facilities in the Orange County and Carlsbad areas of California. The tour consisted of visits to the Orange County Sanitation District (OCSD) Wastewater Treatment Facility, the Orange County Water District Ground Water Replenishment System (GWRS), and the Claude “Bud” Lewis Desalination Plant in Carlsbad. At the OCSD, tour participants learned the importance of wastewater treatment in protecting public health and the environment. OCSD representatives explained the wastewater treatment process, which included a video overview and a bus tour of the facility.

The tour then visited the GWRS, which is the world’s largest water purification system for indirect potable reuse. It takes highly treated wastewater from the OCSD that would have previously been discharged into the Pacific Ocean and purifies it using a three-step advanced treatment process consisting of microfiltration, reverse osmosis, and ultraviolet light with hydrogen peroxide. This process produces high-quality water that meets or exceeds all state and federal drinking water standards. Following a presentation by OCSD representatives, the group toured the treatment facility and on-site laboratory. The Claude “Bud” Lewis Desalination Plant in Carlsbad was the final stop of the tour. The plant has the capability to

deliver more than 50 million gallons of fresh, desalinated drinking water per day, which is enough to serve approximately 400,000 people in San Diego County. Commercial operations at the plant began in late 2015, providing the region with a reliable and locally controlled water source. IBWA would like to thank all attendees who participated in this event, as well as the Orange County Sanitation District, Orange County Water District, and the Claude “Bud” Lewis Desalination Plant for hosting everyone. IBWA also thanks tour sponsor Stephanie Roske (Consolidated Container Company), who helped provide lunch and beverages, and Arman Melkonian (Downtown Wholesalers, Inc.), who assisted with a networking dinner that followed the tour. A special thank you from IBWA goes to Environmental Sustainability Committee member Phyllis Rokus, for helping IBWA organize the successful educational event. NOV/DEC 2018

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COVER STORY

THE SHAPE OF THINGS TO COME Refreshment magazine's editor discusses the "Internet of Things" and introduces products found in the U.K. that could influence the global market By Bill Bruce

More than any other factor, technology is having the greatest influence on product development and innovation in the bottled water and water cooler industry worldwide, and it is led by something that is literally all around us. The Internet of Things (IoT) is a concept where smart technology enables everything to become connected. Often also termed “Industry 4.0” or “the fourth industrial age,” IoT is fast becoming the most important development for any business looking to enhance the consumer’s experience while simultaneously gaining invaluable real-time information.

NOV/DEC 2018

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From “Rota-based” to “Demand-based” Routing Ireland-based tech startup Flowdaq has developed technology that actively counts bottle changes on bottled water coolers and reports the information back to the distributor’s route planning and management systems via IoT networks.

Early testing and prototype development proved the technical concept, and advances in IoT connectivity options and coverage made the running cost, and hence the business case, more and more compelling. “The concept has received strong validation from all levels of the bottled water cooler industry, particularly from those at the coalface of day-to-day distribution management,” says Ennis. “Feedback confirms the potential direct cost savings of avoiding unnecessary delivery attempts, but further, it sheds light on the hidden costs of delivery errors—lost bottle sales due to customers running short, customer churn rates driven primarily by delivery speed and reliability issues, staff morale suffering due to wasted delivery efforts, and, of course, the environmental impact of distribution inefficiencies.” Industry buy-in being such an important ingredient in the success of the project, Flowdaq partnered with some major industry players throughout the development process. Water cooler manufacturer Oasis has collaborated with the hardware development and productization path, and industry route management developer Activewhere collaborated on the software integration process. In this way, even through ongoing field trials, Flowdaq has been able to demonstrate to potential clients how the system can retrofit and integrate with current systems.

Flowdaq feeds real-time bottle usage data from any bottled watercooler at any location directly to your distribution planning system. “Flowdaq has its origin in a simple observation made by a logistics manager: a delivery operative arriving at a customer site with a trolley load of water that was not required due to a quiet period with reduced staff numbers. What a waste of effort and resources,” says co-founder Cathal Ennis. Distribution managers throughout the home and office delivery (HOD) industry are all too aware of the scenario described. It happens as a result of rota-based delivery systems, where actual usage is never known until the delivery driver arrives at the cooler to replace the empty bottles. Flowdaq launched a research and development process to design a technical solution that would provide the “missing piece of information” (how many bottles are needed) at a price point that would make widespread adoption and implementation a no-brainer, with running cost being covered by the system enabled sale of even one or two additional bottles through the cooler each year. 12

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“The benefits that the Flowdaq system will provide for distributors all stem from knowing exactly how many bottles are needed at every cooler location every day,” explains Ennis. “Knowing this simple piece of information will be transformative—it will flip routing systems from ‘rota based’ to ‘demand based’ and enable a host of more efficient routing practices, such as generating dynamic routes based on truck loads within a specific area or knowing to add additional calls to a route list that will deliver anything less than a full load. “The end user will benefit from the resulting reliability of the delivery service. The customer will not need to place orders for water, and, in the case of large accounts, facility managers will have excellent insight into usage patterns throughout the account on a per location, and even a per cooler, basis. Large nationwide accounts will, for example, be able to specify SLA [service level agreement] terms built around minimum stock levels rather than around required delivery frequencies, which can be quite onerous and inefficient.” IoT is a buzz word. Everyone recognizes that the technology will be disruptive and transformative, but it can be difficult to imagine the direct impact on any given industry.

U.K. HIGHLIGHTS The bottled water cooler industry has a history of embracing innovations that are driven by necessity and forsaking those founded on frivolity. “New and cool” is not enough— what does it do for the product and service offering? For the customer experience? For the bottom line? “Flowdaq harnesses the power of IoT technology to deliver benefits for the bottled water cooler industry exactly where they are needed,” says Ennis.

Water Delivery at the Touch of a Button UK-based Hydrate.Direct offers bottled water delivery literally “at the touch of as button.” Co-founder Herbie King says, “I think the integration of any new technology into a business has to come about because of a specific need. This is what we found with Hydrate.Direct. We saw that customers buying bottled water for their water dispensers are often stuck on prescribed delivery routes from their supplier. We thought, Why not provide these customers with a way to get their water on demand?”

With Hydrate.Direct’s smart button, one press—and water is delivered the next day. In an age of greater consumer control, Hydrate.Direct’s smart button provides exactly that: customers press their button and receive their water the next day. The customer’s life is made easier. There is no need to phone, email, complete forms online, or wait for a water delivery when it suits the supplier. “The smart button helps solve a specific need, and I think this is why it has been so successful,” says King. “However, Hydrate.Direct is not just about a small piece of tech. It is about taking our industry into the cloud and changing the fundamental business model. I’ll give two examples to whet your appetite: 1) Hydrate.Direct has no delivery staff; 2) Payment is taken on order—no credit terms. Eradicating a debtors ledger is a fairly big change in the HOD delivery model.”

"We’re in the 21st century and beverage companies can develop better products and engage directly with their customers using IoT technology." One of the main challenges the company faced was being one of the first companies to use this technology in the United Kingdom. “As with any early adopter of a new technology, we were learning the lessons first,” says King. “This meant waiting for production of buttons that had a certificate for the UK and Europe. We also integrated our service in with the security of Amazon Cloud Computing and technology—so our buttons are tested and secured by the world’s largest cloud provider. This is an important message to deliver to our customers as we are integrating with their digital network. “We also integrated the button with our e-commerce platform. This is something that hadn’t been done with any similar platform in the UK before. We were lucky that we didn’t have any major hurdles to stop us from our launch date of June 2017, and we have a great team with lots of technical know-how, who were able to identify and address any potential issues early on.” Hydrate.Direct provides several key benefits to distributors—and one is the technology doesn’t require a huge investment in expensive hardware. “We know about smart machines, and the intelligent water coolers that reorder water automatically,” says King. “However, these are expensive—both from a distributor, and customer perspective. The smart button by comparison solves the same problem but at a marginal cost. The button is retrofit—it can easily be fitted to new water coolers and existing water coolers in the field. If it goes wrong, then you simply have to send out another button and not replace the whole water cooler. “Another benefit is perhaps the most obvious: once the customer is using your branded button for their repeat orders, they will stick to only ordering your product. The button therefore acts as a powerful marketing tool—creating the sort of ‘lifetime customer’ that we might previously have spent large marketing budgets trying to obtain.” NOV/DEC 2018

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Connected Hydration Cap Israel-based Water.IO’s Connected Hydration Cap recently won the “Best New Cap or Closure” category in Zenith Global’s Global Bottled Water Awards. Co-founder and chief technology officer Nimrod Kaplan says, “Water.IO provides smart solutions to help prevent dehydration, but we’re much more than that. As innovators, we’ve helped move the beverage and food industry into the Internet of Things and the big-data arena.

drink, when, where and how this is related to other factors such as weather, sport activity, geography, age,” says Kaplan. Water.IO developed an advanced, patented sensors technology that can fit into any standard bottle cap, and it is available in different sizes and formats. It also developed an application and API [application program interface] on the smartphone that can be personalized with the beverage company brand. Through this, beverage companies benefit from a direct engagement with their customers. Through a web-based analytics dashboard, beverage companies can get real-time data about their customer’s behaviors and needs. This data is exclusive, and Water. IO is actually the first to add IoT into food and beverage packaging in such a model.

With Water.IO, the Internet of Things helps people remember to drink water.

“I’m sure you’ve heard it before, but it bears repeating, ‘Water is life.’ It’s a basic need of every living being on earth. For humans like us, it optimizes our health and powers our body. Unfortunately, in today’s hectic world, people rarely get the amount of water that they need on a daily basis. Even athletes sometimes forget to drink water. Dehydration is prevalent in our culture today.” The idea behind Water.IO is very simple. It helps people to remember to drink, through their disposable water bottles. The bottles remind them when they need to hydrate. The innovative smart cap technology sensors can be used by any cap or closure manufacturer, as well as any bottles. This enables the bottle to measure how much liquid is in the bottle; the alert is delivered via blinking lights when the customer needs to drink more, based on his or her personal profile. Any standard disposable bottle can be converted into a smart bottle, and the caps move from bottle to bottle with the consumer. At the same time, this smart cap also sends information to the customer’s smartphone—and through this feature, the technology offers beverage companies priceless data. “For the first time, beverages companies can acquire realtime analytics about who their customers are, how they

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“Let’s face it,” says Kaplan, “drink brands today are doing pretty much what they did a hundred years ago: they put a liquid in a bottle, put a cap on top of the bottle, and ship to the point of sale. From that point on they are blind when it comes to their customers. They don’t know who bought the drink; how he or she consumed it; when, where, and how this is related to his or her age; or sport activity. They don’t know if the bottle has been refilled. “The beverages industry has relied on focus groups, researchers, and similar ways to try and understand all this information, but this only gives a small picture of their customer profiles. It’s not real-time data, and it’s only a sampling of the data. Water.IO is about to change all of that. Drink brands will be getting raw, accurate data for the first time, in real time. This powerful knowledge will help drink brands to understand and create accurate profiles of their customers. We’re in the 21st century and beverage companies can develop better products and engage directly with their customers using this technology. Of course, this means enhancing customer loyalty, which will ultimately lead to more sales.”

Brave New World As the cost of smart technologies falls, more and more cooler, coffee, and vending machine manufacturers are adding features to enhance the consumers experience and provide essential real-time, back-office data for operators. Fully interactive touch-screens and “intelligent” apps are changing the look and feel of machines and improving their form and function. The Internet of Things has opened the doors to a smarter future for the bottled water industry—and the smartest manufacturers and operators are poised to take best advantage. Bill Bruce is a freelance writer and editor of FoodBev Media's Refreshment magazine.

BUILDING A BETTER AUDIT

For the past two years, IBWA has held many discussions about the future format of its Tier 1 Audit Program. Find out what’s new. By Chris Torres

› NOV/DEC 2018

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Due to implementation of the Food Safety Modernization Act (FSMA) regulations, significant changes are planned for IBWA’s Tier 1 audit program for the first time in 16 years. It’s happening due to FSMA’s Preventive Controls for Human Food Rule (PC Rule), which requires food producers to have a written plan established to prevent or reduce potential hazards in five areas: process, allergens, sanitation, supply chain controls, and a recall plan. Recently, IBWA’s Technical Committee reached a consensus on the updated format for the association’s audit program. The new format involves a 16-page checklist, developed by IBWA, which lists questions that a U.S. Food and Drug Administration (FDA) or state inspector might ask a bottler during an audit. 16

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A requirement of FSMA’s PC Rule is that every food facility must have one or more persons with the technical knowledge of the food being made and processes in use to evaluate risk and identify the means to control them. To help member bottlers be compliant, IBWA has continued to hold Preventive Controls Qualified Individual (PCQI) workshops in the weeks and months leading up to the deadline. IBWA is also updating its publications, such as the Bottled Water Code of Practice, Plant Technical Reference Manual, and Audit Handbook, to accommodate the PC Rule requirements for food safety plans and good manufacturing practices (GMPs). This is the third and final year of the PC Rule’s implementation period. FDA required all “very small” companies, which they defined as food processors with less than $1 million in revenues, to be in compliance by September 2018.

For IBWA’s current Tier 1 audit program, its contract was supposed to expire in 2017, but it was extended to this year and will expire December 31. Another extension is being considered for 2019, as the issue of very small company exemptions, discussed later in this article, is being debated with regard to its impact on the IBWA annual audit formats. In the September/October issue of Bottled Water Reporter (bit.ly/BeyondFSMA), IBWA Vice President of Education, Science, and Technical Relations Bob Hirst discussed the challenges the Technical Committee faced in finalizing an update for the program format, which ultimately included multiple options. Bottled Water Reporter sat down with Hirst to discuss everything from the early days of the audit program, to

BWR: What’s the purpose of the IBWA audit program? Hirst: The purpose of the audit program has always been to provide bottler members of IBWA the means of preparing themselves for regulatory inspections. The program parallels the federal inspections and, in a few cases, some state requirements. But it’s always been primarily focused on FDA's GMPs and regulations—for general foods and also specifically for bottled water—so it’s mainly a voluntary way or consultative means of helping bottlers prepare for regulatory audits.

BWR: What’s done under the current program? Hirst: Currently, members are audited once per year. We have a contract with three audit companies, and member bottlers select their audit company at the beginning of every year, and we pass that information along to the audit companies. They schedule an audit with a two-day advance notice and do the audit. If there are any deficiencies noted during the audit, members are asked to respond directly to the audit company with corrective actions that will be taken and then the audit company judges whether or not the corrective actions are sufficient.

BWR: How has the audit program evolved over the years? Hirst: It’s definitely evolved. The audit was a very basic program to begin with, but because the regulations have evolved, the program has pretty much evolved with the regulations. Back in the 1980s, it was a fairly short, basic audit. When I came here in the late-1990s, it was

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what’s ahead with the updated version, and how the new audit program will impact IBWA bottler members.

IBWA: AHEAD OF THE CURVE The U.S. Food Safety Modernization Act (FSMA) was signed into law in 2011, and years of rule-making by the Food and Drug Administration (FDA) have followed since then. FSMA focuses on preventing food safety issues rather than reacting to them. But even before FSMA, IBWA and the bottled water industry have been forward-thinking on production safety issues. IBWA adopted the Hazard Analysis and Critical Control Points (HACCP) management system, a systematic preventive approach to food safety, in 2002 as a way to prevent food safety hazards from occurring. But many in the food industry didn’t react in this manner until FSMA rules were published. According to IBWA Vice President of Education, Science, and Technical Relations Bob Hirst, IBWA members with established HACCP and environmental controls can expand those measures to include FSMA’s Hazard Analysis Risk-Based Preventive Control (HARPC) requirements. Under that plan, bottlers with a HACCP plan in place will save time, money, and other resources, according to Hirst. Now that IBWA has decided on the format for the updated Tier 1 program, requests for proposals for audit companies to conduct the new audits will be distributed. Additional articles about the audit, which will educate IBWA members even further, will appear in future editions of Bottled Water Reporter and the IBWA News Splash e-newsletter. Members should also be on the lookout for live and online seminars in the future.

up to date pretty much with the newer GMP regulations FDA had in place. Of course, right now we’re going through another transition because the Food Safety Modernization Act has beefed up the GMPs and also added quite a few new things to the audit.

BWR: How do IBWA’s requirements compare to what’s asked for by FDA?

THE IBWA AUDIT PROGRAM IS DESIGNED TO HELP MEMBERS COMPLY WITH FDA RULES.

Hirst: We try to mimic, as closely as possible, what FDA would be asking for in an audit. What I did in preparation for the new audit program, for example, was I went through the Preventive Controls Rule, which is the primary NOV/DEC 2018

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IS MY VERY SMALL BOTTLER BUSINESS EXEMPT FROM FSMA? PROBABLY NOT When the U.S. Food and Drug Administration (FDA) published the Current Good Manufacturing Practice, Hazard Analysis, and Risk-Based Preventive Controls for Human Food as a final rule (PC Rule) on September 17, 2015, it included a three-year phase-in for the effective date that was dependent on company size: • All companies other than small and very small businesses: September 19, 2016 • Small businesses (under 500 employees): September 18, 2017 • Very small businesses: September 17, 2018 A “very small business” (including any subsidiaries and affiliates) must average less than $1,000,000, adjusted for inflation, per year, during the three-year period preceding the applicable calendar year in sales of human food plus the market value of human food manufactured, processed, packed, or held without sale (e.g., held for a fee); or be a business with average annual sales of <$500,000 and at least half the sales to consumers or local retailers or restaurants (within the same state or within 275 miles). FDA recently issued a guidance document stating that very small businesses are exempt from certain provisions in the Food Safety and Modernization Act (FSMA) hazard analysis and riskbased preventive controls regulations and are instead subject to modified requirements. These modified requirements include the submission of a form attesting to the facility’s status as a qualified facility, and that it is controlling potential hazards associated with its food or complying with applicable non-federal food safety laws and regulations. Some small IBWA member companies have mistakenly thought that they are completely exempt from the FDA PC Rule. However, that is not the case. Very small businesses are subject to modified requirements under the Preventive Controls Rule as so-called “qualified facilities”—but such facilities are NOT exempt from the revised Current Good Manufacturing Practices (CGMPs), hazard analysis, and preventive controls portion of the final rule. In fact, the only significant difference in the requirements for very small companies is that they are exempt from having a written food safety plan. They must, however, comply with almost all other provisions in the FDA regulations. Of course, facilities may voluntarily comply with the entire final rule. IBWA has drafted a white paper to explain this issue fully to members. If interested in obtaining a copy of the white paper, please email IBWA Vice President of Education, Science, and Technical Relations Bob Hirst: bhirst@bottledwater.org.

rule that we’re auditing against here, and pulled out everything that I felt an FDA inspector or a state inspector could ask to see during their audit. I compiled that into a checklist, and the checklist right now stands at about 16 pages long. That’s basically how the revision evolved. 18

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BWR: Regarding this latest planned update, why does the PC Rule require changes to IBWA’s audit program? Hirst: The Preventive Controls Rule, in addition to updating good manufacturing practices, added a number of

requirements. One is the requirement of a food safety plan. Another is a requirement for written hazard analysis and also beefed-up record-keeping requirements, and the types of records the bottler has to maintain and make available when FDA requests them on site.

Hirst: The transition is going to be easy for some, and perhaps a little difficult for others. I was here when IBWA implemented HACCP [the systematic preventive approach to food safety, Hazard Analysis and Critical Control Points]. At that time, there were no regulations, so we basically had to start from the ground up. We haven’t had to do that this time. I should note that the amount of time it took to bring people up to speed on HACCP was about three years. I’ve been on the road since 2011-2012 discussing FSMA rules with IBWA’s bottler members. We’ve also had a number of educational opportunities about FSMA for bottlers and suppliers. And, we’ve had PCQI workshops—which guides bottlers through the steps of establishing, in writing, a food safety plan, and the corresponding and correlating functions, such as recall plans and other things. There’s going to be an adjustment period. The IBWA Audit Program is not an enforcement program. This is a program designed to help members comply with FDA rules. We try to help member bottlers find their deficiencies, if any, and correct them before FDA comes in and finds them. There’s going to be an adjustment period for a lot of bottlers, but we’re going to work with them to get them up to speed. Again, IBWA is not a regulatory agency. There are no penalties. We’re just here to help.

BWR: How beneficial will these changes be for bottlers? Hirst: I really believe the changes will be very beneficial because it is to your advantage to go through the audit program. Once you have completed the IBWA audit, you can get through an FDA inspection relatively easily. Being an IBWA member and having this available to you should be a great benefit.

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BWR: What will this transition be like for bottlers?

IF FDA HAS TO COME BACK TO YOUR PLANT AND PERFORM ANOTHER INSPECTION, WE ESTIMATE THAT, FOR AN AVERAGE-SIZE BOTTLED WATER PLANT, THAT COULD COST $20,000 OR MORE. BWR: When will the new Tier 1 program go into effect? Hirst: The current plan is that it will go into effect January 1, 2019. We’ve already had a one-year delay, and, over the past two years, there was a lot of discussion about what format the program should take. We hope to have a final decision in November 2018.

BWR: Does this update have any impact on the Tier 2 program?

on average, for an average-size bottled water plant that it could cost $20,000 or more for FDA to come back to perform another inspection. FDA may do a one to three day audit the first time. But if they find serious deficiencies, they’ll come back with more than one inspector, which could be as many as three or five inspectors, and they might be staying for a week. Bottlers are liable for payment of each inspector, at about $200 per hour for up to five days, so it gets quite expensive fast.

Hirst: No. The Tier 2 program will continue to be developed by Safe Quality Food (SQF) and British Retail Consortium (BRC)-aligned companies. They have expanded their own audits based on the PC Rule, so they’ll continue down the road they’re on.

BWR: What happens if a bottler is noncompliant with the PC Rule? Hirst: From an FDA perspective or a state inspection perspective, they’re subject to fines or penalties, or whatever action the agency feels necessary to take. That can be anything from just a notation up to a fine, product recall, or some other penalty, if the agency feels the deficiency is serious enough to affect product safety or quality.

BWR: What are the costs if FDA has to come back for another inspection? Hirst: This is something we’ve been looking at for years. We estimated,

Chris Torres is IBWA’s communications coordinator. Contact him at ctorres@ bottledwater.org. IBWA Vice President of Education, Science, and Technical Relations Bob Hirst contributed to this article. Contact him at bhirst@bottledwater.org. NOV/DEC 2018

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Case Study: Recycled Content in California (Part I) By J.P. Toner, IBWA Director of Government Relations

Everyone knew this was coming. It was no secret that California would seek a mandate on recycled content for plastic beverage containers. Still, there were lots of questions to be answered and a slew of interested parties offering up contrasting opinions and ideas.

The Set Up When Assembly Bill 2530 was inacted in 2016, manufacturers of beverages 20

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sold in plastic containers subject to the California Redemption Value (CRV) were required to report the amount of virgin and post-consumer plastic being used in their containers to the California Department of Resources Recycling and Recovery (CalRecycle) as of March 2018. All parties involved understood this to be a precursor to a potential recycled content mandate. But questions

remained: At what percentage would the standard be set? Who would set it? And when would the mandate go into effect? Early on, IBWA made it clear that the bottled water industry was receptive to the concept of recycled content for plastic containersâ&#x20AC;&#x201D;but, for the legislation, the devil was in the details. Today, IBWA continues to work with members to get a better understanding

GOVERNMENT RELATIONS

of just how much recycled PET (rPET) is being used by water bottlers. Even with this support, there are still many hurdles to making rPET a standard in a given state.

A Vague Proposal To meet a given deadline for action, the California Senate passed Senate Bill 168 in January of 2017, and, while it included new language that addressed the need to set a mandate for plastic recycled content, the details were sparse. The two sections where the bill failed were identifying what entity would set the mandate and noting at what percentage it would be set. It was thought that the reporting required by AB 2530 would help to determine a number. But reports filed by California manufacturers did little to clear up this matter. If anything, it made matters worse because there was no uniformity in the reporting, and it was evident early on that many manufacturers either were not using rPET or were unsure about what percentage they had in their beverage containers. A revised version of SB 168 lumped all beverage containers into the mix—plastic, glass, aluminum— and simply requested CalRecycle to establish standards by 2023. But as the bill languished in committee with no significant action, proponents of the bill worked behind the scenes to get something done in 2018. They knew a bill that gave sole authority to CalRecycle to set, monitor, and enforce the mandate was not legislation that many lawmakers would sign on to. Skepticism of CalRecycle’s ability to handle a program such as this was high within the halls of the state house.

WHEN LEGISLATION IS INTRODUCED THAT SETS UP A RECYCLING PROGRAM FOR FAILURE, IBWA INTERVENES. Evolution of a Bad Bill Between May and August of 2018, SB 168 was amended several times. New provisions included studying the state’s existing deposit program and comparing it to product stewardship and extended producer responsibility efforts. Later, that was revised to examining other existing bottled deposit programs to see if California’s program could adopt any changes. In addition, language was added regarding penalties for failure to comply with the mandate—even before one was set. Then, materials that were part of the original bill began to peel off. Glass, which already has a recycled content mandate of 35 percent, and aluminum were removed from the standard. Plastic become more specified: the legislation would not cover all plastic, just PET. But the major sticking point—setting the mandate for plastic—was still unresolved. Now, it seemed a bill that had some basic support in its original form was slowly acquiring numerous opponents. Even with the removal of the glass and aluminum industries, it was clear a solid alliance was forming against the latest version of SB 168.

amendments extreme penalties were added that made the bill unacceptable. Those penalties included a 20 percent recycled content mandate by 2020, reporting based per container not an aggregate, daily financial penalties, and no opportunity for CalRecycle to lower the standard even after reviewing the mandate after one year. Thus, IBWA and our allies circled the wagons. We reached out to members, asking them to educate lawmakers about the potential disastrous impact the legislation would have on the bottled water industry in California. The bill was setting up a system destined for failure, and IBWA members and staff wanted to support a proposal that would be successful. During the last two weeks before the Assembly recessed, numerous components came into play that would seal the fate of the bill—and highlight IBWA’s efforts on California issues. In the next edition of Bottled Water Reporter, we’ll explore the actions and campaign that became the downfall of SB 168.

From Bad to Worse With a rapidly approaching deadline to get a bill voted out of the Assembly, proponents of SB 168 made a final push that sealed its fate. Although IBWA had already opposed the bill, during final NOV/DEC 2018

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Making Social Connections Why IBWA members are our best social media influencers and how By Sabrina E. Hicks, IBWA Director of Communications you can get involved No one knows the value of our association—and wants to promote bottled water and healthy hydration—quite like IBWA members. That’s why we often turn to you to help us post bottled water facts and good news 22

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stories on social media. We know that our members—with their thousands of combined followers—can be our best social media influencers. We just need every member with a social media platform to get involved. While

the reach of social media is wide, ultimately, it’s about real engagement. When we work with you, we can make contact with and educate consumers, legislators, and decision makers on a grassroots level.

COMMUNICATIONS Why Social Media? You may wonder if investing time on your company’s social media platforms is worth it. Well, it is—according to the latest statistics from the Pew Research Center, a nonpartisan fact tank that has been surveying Americans about their use of social media since 2012. Pew’s “Social Media Use in 2018” survey of Americans 18 years of age or older (bit. ly/PewSocialMedia2018) shows that “roughly two-thirds of U.S. adults (68 percent) now report that they are Facebook users, and roughly three-quarters of those users access Facebook on a daily basis.” Imagine—Facebook algorithms notwithstanding—you have the opportunity to connect with your customers and online community on a daily basis. Facebook remains the social media platform that is used by “a majority of Americans across a wide range of demographics”—the only exception being adults ages 65 and older. Americans ages 18-24, are likely to use other platforms in addition to Facebook, such as Snapchat (78 percent), Instagram (71 percent), and Twitter (45 percent). In fact, it is common for Americans to use more than one social media platform. Instagram has proven to be the platform experiencing the most growth among all Americans: its usage increased by seven percentage points over 2016 numbers, with 35 percent of U.S. adults now using the platform. And if you are a younger American, ages 18-24, 81 percent of you are visiting Instagram on a daily basis—with 55 percent reporting they visit the site several times a day. We know your customers on are social media, but are you? Keeping an active social media life for your company isn’t easy, but it is rewarding. Engaging with consumers on your social media platform of choice is a great way to increase your brand recognition and loyalty. There is no better way to interact with your customers on a personal level, demonstrating that you are more than just an organization

ARE YOU TAKING ADVANTAGE OF IBWA’S SOCIAL MEDIA TOOLKITS? pitching bottled water—you are also a company made up of people from the local community who care about them and their hydration needs.

IBWA Is Here to Help Keeping a social media page loaded with interesting content is no easy task—no matter what your company size. While some recent studies suggest that you should post on your social media platforms at least daily (bit.ly/ HowOften2Post), a more realistic goal for most companies would be three times a week. Yet, even that can seem overwhelming—but, with IBWA’s help and resources—it doesn’t have to be. To tap into the wealth of influence IBWA members’ social media accounts have, we started small—creating monthly “social media toolkits” that all members can use. These monthly toolkits keep it simple—offering focused, timely posts and graphics that members can elect to share on their various social media platforms. Members sign up to receive the toolkits directly via email (and they are also included in IBWA’s Splash e-newsletter) and then choose whether to simply cut and paste the graphics and posts as provided, tweak the posts and use the images, or just be inspired by the toolkit and create something new for their newsfeeds. (If you are not receiving IBWA’s social media toolkit via email, let us know by emailing shicks@bottledwater.org.) In addition to our monthly toolkits, IBWA often creates campaigns for social media that run for weeks at a time in order to educate the public on a specific topic. Recently, IBWA’s Put It In The Bin campaign focused on encouraging consumers to see

their recyclables as valuable items for the rPET market. We asked them to remember to always put recyclables in the recycling bin—even if that means holding on to them to recycle later if a bin is not handy. This particular campaign ran for nine weeks and provided inspirational graphics (examples at left) and educational posts that members were encouraged to share on Instagram, Twitter, and Facebook. (To see Put It In The Bin collateral, visit putitinthebin.org and click on “Toolkits.”) Initial feedback from this campaign has been great. IBWA's Put It In The Bin posts have reached almost 1 million people on our Bottled Water Matters Instagram and Facebook accounts. Imagine the reach and educational opportunities if every single IBWA member with a social media presence also posted Put It In The Bin materials!

Power of Storytelling IBWA has had a lot of success embracing members as our digital partners. We are grateful for the members who have helped us promote bottled water’s “good news” story on social media. Yet, there’s this little voice inside letting us know we can always do more. If your company hasn’t yet started to share IBWA’s social media materials online, think of the advantages: grab-and-go content, education for your followers, possible increased SEO rankings, and, perhaps most importantly, a way to humanize your brand. If you aren’t currently using IBWA’s social media collateral, contact us to get involved today. NOV/DEC 2018

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Process to Develop 2020 Dietary Guidelines for Americans Continues IBWA working to heighten water’s profile By Al Lear, IBWA Director of Science and Research

The Dietary Guidelines for Americans (DGAs) is the foundation for federal nutrition programs and policies, providing food-based recommendations to help prevent diet-related chronic diseases and promote overall health. According to the National Nutrition Monitoring and Related Research Act of 1990, the DGAs are mandated to reflect the preponderance of scientific evidence and are published jointly by U.S. Departments of Agriculture (USDA) and Health and Human Services (HHS) every five years. The 2020 edition of the DGAs will take a life stage approach, expanding to include pregnant women and children 24

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from birth to 24 months, as mandated by the 2014 Farm Bill. The process to develop the 2020 Dietary Guidelines is underway and includes the following four stages: • Stage 1: Topic and Question Identification • Stage 2: Advisory Committee Selection • Stage 3: Advisory Committee Review of the Scientific Evidence • Stage 4: USDA/HHS Develop the Dietary Guidelines.

Water: A Beverage for Life Topic and Question Identification began on February 28, 2018, with the USDA/HHS requesting comments

on the proposed topics and supporting questions. IBWA submitted comments that supported the USDA/HHS’s inclusion of water as part of complementary beverages for infants and toddlers from birth to 24 months and beverages in the remaining topics for each of the life stages from 2 years to 64 years of age. We also requested that the specific hydration needs of adults ages 65 and older be considered because of the increased importance of hydration for older adults due to the prevalence of chronic diseases, the use of multiple medicines, and a decreased sense of thirst. The comment period for Stage 1 closed on March 30, 2018.

TECHNICAL UPDATE On September 6, 2018, the USDA/ HHS published the final topics and questions that the 2020 Dietary Guidelines Advisory Committee (DGAC), once assembled, will consider. The topics/questions were culled from the 12,000 public comments the agencies received from more than 6,000 submissions and were prioritized based on the following criteria: relevance to creating the DGAs, importance to public health, potential federal impact on food and nutrition programs, and avoiding duplication of federal efforts. The final topics/questions are available on the DGAs webpage in two formats: (1) List A is organized by life stage (bit.ly/DGACquestions_lifestage). (2) List B provides the same topics/questions but is reorganized to reduce redundancy and better reflect how the DGAC would likely proceed with its scientific review (bit.ly/DGACquestions_topic). The topics for review by the DGAC include the following seven categories: (1) current dietary intake and nutrients of public health concern, (2) dietary patterns, (3) beverages, (4) added sugars, (5) types of dietary fats, (6) seafood, and (7) frequency of eating. Obviously, USDA/HHS has included water under the category of “Beverages.” Other beverages included in that category include cow’s milk, milk alternatives, 100% fruit juice, sugar-sweetened beverages, beverages with high-intensity sweeteners (also known as artificial sweeteners), and caffeinated beverages. Alcohol will also be considered, “for adults, including women who are lactating and older adults.” The specific questions related to the topic of beverages are listed in the sidebar above.

Committee Work On September 6, the USDA/HHS also announced a call for nominations for the DGAC. Working in conjunction with our Healthy Hydration Task Force, IBWA identified candidates for

DGAC TO CONSIDER THESE “BEVERAGES” QUESTIONS • What is the relationship between beverage consumption during relevant stages of life and: 1) achieving nutrient and food group recommendations 2) growth, size, body composition, and risk of overweight and obesity 3) for alcohol only, risk of certain types of cancer, risk of cardiovascular disease, neurocognitive health, and all-cause mortality? • What is the relationship between beverage consumption during pregnancy and 1) achieving nutrient and food group recommendations; 2) gestational weight gain; and 3) birth weight standardized for gestational age and sex? • What is the relationship between beverage consumption during lactation and 1) achieving nutrient and food group recommendations; 2) human milk composition and quantity; 3) post-partum weight loss; and 4) for alcohol only, infant developmental milestones, including neurocognitive development? Source: bit.ly/DGACquestions_topic

the DGAC and submitted nominee names by the October 6, 2018 deadline. The candidate review process is rigorous, with USDA/HHS considering the following factors for all nominees: • Educational background – advanced degree in nutrition- or health-related field, including registered dietitians, nutrition scientists, physicians, and those with public health degrees. • Professional experience – at least 10 years of experience as an academic, researcher, practitioner, or other health professional in a field related to one or more of the topics to be examined; consideration of leadership experience and participation on previous committees or panels. • Demonstrated scientific expertise – expertise related to one or more of the topics to be examined by the DGAC as demonstrated by number and quality of peer-reviewed publications and presentations. • Obligations under the Federal Advisory Committee Act – ensuring the DGAC is balanced fairly in points of view and types of expertise.

Requirements regarding a balanced membership – including, to the extent possible, individuals who are minorities, women, persons with disabilities, and representatives from different geographic areas and institutions. The USDA/HHS plans to finalize the 2020 DGAC by the end of 2018 or early 2019. The committee will then begin its review of evidence regarding the topics and questions until early in 2020, meeting approximately five times for public meetings. By the spring of 2020, the DGAC is expected to publish a scientific report for public comment. That would be followed by development of the 2020 Dietary Guidelines for Americans by USDA/HHS. IBWA will continue to participate in the multi-year 2020 DGAs process and, in addition to submission of nominations for the DGAC, will provide input to the DGAC as it works through its review of the topics and questions. For additional information on the process of creating the DGAs, visit the 2020 Dietary Guidelines for Americans webpage: www.dietaryguidelines.gov. •

NOV/DEC 2018

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CPO QUIZ

IBWA

certified plant operators (CPOs) are encouraged to complete the following quiz for ½ IBWA continuing education unit (CEU). The questions are derived from material presented in this issue of the Bottled Water Reporter, the IBWA Plant Technical Reference Manual, and the IBWA Bottled Water Code of Practice. Submit this quiz to Linda Alfakir (lalfakir@bottledwater.org / Fax: 703.683.4074, IBWA Education and Technical Program Coordinator, 1700 Diagonal Road, Suite 650, Alexandria, VA 22134. Look for additional quizzes in future issues and earn additional IBWA CEUs! Name______________________________________________________

Company_ _________________________________________________

Address____________________________________________________

City_______________________________________________________

State/Province_ _____________________________________________

ZIP/Postal Code_ ___________________________________________

Check your selection for each question

The IBWA Bottled Water Code of Practice is the basis for the annual inspection program.

OO True OO False

The Dietary Guidelines Advisory Council will consider the relationship between beverage consumption during relevant stages of life and ___ (select the choice that does NOT apply):

OO achieving nutrient and food group recommendations OO growth, size, body composition, and risk of overweight and obesity OO proper daily consumption rates for adults OO for alcohol only, risk of certain types of cancer, risk of cardiovascular disease, neurocognitive health, and all-cause mortality

_____ is bottled water from a well tapping a confined aquifer in which the water level stands at some height above the top of the aquifer and may be collected with the assistance of external force to enhance the natural underground pressure.

OO OO OO OO

Ground water Purified water Artesian well water Mineral water

Which of the following does NOT apply to the production of spring water?

OO OO OO OO

GAC filtration Deionization UV disinfection Ozonation

According to the Code of Practice, water intended for bottling shall not be stored, transported, processed, or bottled through equipment or lines used for milk, other dairy products, non-beverage foods, or any non-food product.

OO True OO False 26

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The Code of Practice requires that microbiological contaminants (e.g., total coliform) be analyzed _____ from a representative sample from a batch or segment of a continuous production for each type of bottled water produced by the plant.

OO OO OO OO

Weekly Monthly Annually Daily

If the TDS content of mineral water is below 500 ppm, or if it is greater than 1,500 ppm, the statement “low mineral content” or the statement “high mineral content,” respectively, shall appear on the principal display panel following the statement of identity.

OO True OO False

All bottled waters bottled by IBWA members must also include on the label a telephone number of the bottler, distributor, or brand owner as a means of contact for consumers who wish to obtain additional product information.

OO True OO False

A bottled water defense/security plan is a requirement of the IBWA Code of Practice:

OO True OO False

10|

The process to develop the 2020 Dietary Guidelines is underway and includes the following four stages, EXCEPT:

OO Topic and Question Identification OO Advisory Committee Selection OO Advisory Committee Review of the Scientific Evidence OO USDA/USEPA Develop the Dietary Guidelines

CALENDAR 2018

ADVERTISERS Blackhawk Molding Co.. . . www.blackhawkmolding.com.. . . Inside Front Cover Polymer Solutions Int'l. . . . . www.prostack.com . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Sigma . . . . . . . . . . . . . . . . . www.sigmahomeproducts.com. . . . . . . . . . . . . . . . 27 Steelhead Inc. . . . . . . . . . . www.steelheadinc.com. . . . . . Outside Back Cover WQA . . . . . . . . . . . . . . . . . www.wqa.org/convention. . . . . . . . . . . . . . . . . . . 3 Support your industry while getting ahead of the competition! Place an ad in IBWA's Bottled Water Reporter magazine. IBWA’s award-winning, bimonthly magazine, Bottled Water Reporter, is the only trade magazine in the United States that exclusively targets the bottled water industry. IBWA has proudly been offering digital editions of its magazine online since 2009. Issues are mailed directly to IBWA members and nonmember subscribers six times a year. Bonus distributions occur during the IBWA Annual Business Conference and Trade Show and the IBWA June Board of Directors and Committee Meetings. Review past issues at www.bottledwater.org/newsroom/bottled-water-reporter. Contact Stephanie: 817.719.6197 / stephanie@bottledwater.org.

SCD-9 One push, one cup only

NOVEMBER 12-15

IBWA Annual Business Conference and Trade Show Hyatt Regency New Orleans, LA CALENDAR 2019

MARCH 6-8

Central States Bottled Water Association Convention and Trade Show River City Casino and Hotel St. Louis, MO

MARCH 25-27

California Bottled Water Association Annual Convention San Diego, CA

JUNE 3-6

IBWA June Board of Directors and Committee Meetings Hilton Old Town Alexandria, VA

NOVEMBER 18-21

2019 IBWA Annual Business Conference and Trade Show Marriott Anaheim, CA

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VALUE OF IBWA MEMBERSHIP SCOTT HADEN LARGE FORMAT WATER BUSINESS LEADER CONSOLIDATED CONTAINER COMPANY ATLANTA | GA Working for Consolidated Container Company (CCC), a plastic packaging solutions provider, and being a member of IBWA have both been a fulfilling experience for Scott Haden. From his years in the bottled water industry, he’s learned that, compared to other industries, bottled water is very unique.

ALL ABOUT SCOTT Scott says it’s likely he’s the only person you’ll meet from his hometown: Bozeman, Montana. In addition to spending time with his three children, Scott enjoys running, playing golf, and reading. Scott previously worked at CCC from 2004-2008 and rejoined the company in October 2016.

“When you look at what the bottled water industry does, it really is a group of companies that have a mission to grow and maintain the quality and safety of bottled water,” he says. “It’s really interesting to watch our customers work together to make sure that the bottled water industry grows and delivers safe products. It’s a very dynamic business.” As the large format business leader at CCC, Scott regularly observes the shared desire among bottled water companies to protect and further grow the industry— a camaraderie he says is rare to find. Scott’s role at CCC involves managing the company’s large format business, as well as integrating CCC’s recent acquisition of assets from PolyCycle Solutions, LLC. CCC serves national, regional, and local customers across North America as a leading supplier of rigid plastic packaging solutions. “We focus on driving value creation through our customers in the segments that we serve,” says Scott. “And it’s our goal to make sure that we are providing value to those customers and end use segments, and to society as a whole. That’s really what CCC is all about. For large format water, we have the widest, broadest network of products and services across the country, and we can support just about every type of bottle in every geographic location in Canada and the United States.” Scott has had previous experience working with 5- and 3-gallon polycarbonate bottled water containers. His job experiences and being involved with IBWA have helped him establish a solid career. “IBWA is a great forum for networking,” he says. He credits his IBWA membership with helping him develop relationships with bottler decision makers across the country. For bottlers and suppliers currently not members of IBWA, Scott says he would suggest that they attend events such as IBWA’s Annual Business Conference and Trade Show, where he’s also created new relationships. In June, he attended an IBWA event in Washington, DC, where he was able to connect with suppliers and others in the bottled water industry. “Just being able to reach out about different issues and see if other people are experiencing the same things has been really helpful,” he explains. “Everyone has been more than accommodating. [IBWA] fosters a culture of cooperation and working together.”

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SAVE the DATE

Plan Now to Join Us for the 2019 IBWA Annual Business Conference and Trade Show

Dates: November 18-21 Place: Anaheim, CA Hotel: Marriott

AD 4 DEC

OR ES OF W

One Operator Bottling Systems: 150 – 350 bph 5 Gallon Systems

Water Treatment: RO, Mineral Injection, Ozone

Check with us for pre-owned options

Full Plants: Turnkey Solutions for Every Size

High Speed Bottling Systems: 450 – 3000 bph 5 Gallon Systems

VATION s SO NO

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All bottling processes are not equal. Steelhead stands alone with our commitment ommitme ent ients. to innovation, efficiency and bottom line profitability for our clients.

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