CBE 555 Presentation Joel Thomas September 25, 2007

What’s on Tap? Market Trends Market Growth & Comparative Markets Financial Analysis Myths dispelled Reason (given) to believe Safety Quality Purity Environmental Impact Figi case study Source problems Disturbance of Delicate Ecosystems Ethics Conclusions

Market Trends

Financial Typical PriceStandardized Price W.W. Bottled Water Consumption yearly Tap Water$1.52/HCF*$ /L89 billion L/yr$32 million Bottled Water $1.00/Liter$1.00/L89 billion L/yr$89 billion *HCF = Hundred Cubic Feet Difference$88.97 billion Factor2800x more

Why do people drink bottled water? Alternative to other beverages Trendy Luxurious Worries about tap water “Bottled water is purer.” “Bottled water is just safer.” Differently regulated (see regulation slide) Hype, myth, and propaganda Perception of difference “Bottled water tastes better.” Placebo effect Caters to different “tastes” (preferences) Bottled water is better than tap water 3 out of 4 cases, it is tap water

Pristine Waters? BrandSource AquafinaPepsi bottling plants DasaniCocaCola bottling plants Yosemite WatersLos Angeles, CA Alaskan FallsWorthington, OH EverestCorpus Christi Texas* *Listed on the bottle Source: Corpus Christi Municipal Water Supply

Healthier? Myth: BW is healthier than tap water Truth: BW not regulated to check for parasites and certain other microbes. See regulations slide (next) Myth: Water bottles leak carcinogens into water if you reuse bottles. Truth: Bottled Water (BW) does have an expiration date. Extended exposure to heat and light leeches plasticizers and terephthalates into water. However, infinite shelf life when stored under optimum conditions Enough to kill?

Safer? - Regulation of water Tap water – EPA Regulated Purity requirements – more limitations than FDA Bottled water – FDA Regulated Standards of identity – Must ensure truth in advertising = declare your source Final product must be at least as pure as source % Total Dissolved Solids (TDS) in mineral water Sparkling water may have no more CO 2 dissolved than source May remove and replace up to limit Limits on Chemical, Microbial, and Radiological Contamination But… No test for Parasites, E. Coli, Cryptosporidium, Giardia No test for Asbestos No test for Organics such as Benzenes

Limitations of FDA Regulation Loophole: regulates only BW for interstate commerce Reliance on state regulation “The FDA relies on state and local government agencies to approve water sources for safety and sanitary quality” 1 in 5 do not regulate Unequal protection Devotion of half of time of one FDA inspector for every 100 EPA water quality inspectors Low priority for inspection under General Food Safety Program Reliance on voluntary declaration of violations

Environmental Impact Solid Waste Effective recycling rate = 34.1 % Recycling problems FDA regulations food surfaces materials = one time use Saturation of market for recycled PET Total waste mass 998 million tons/yr Water Resources Impact Next Slide Carbon Impact Figi case study Poly(Ethylene Terephthalate)

Water Resource Impact Water resources Privatization of water Water rights Ethical issue Especially in third world and water-poor countries Source Depletion Damage to delicate ecosystems Coastal land drilling – salt water intrusion damages soil quality Spring water – can drain streams and riverbeds miles away Question of water rights Ground water – common source of well water Sale of natural resource Ethical issue – is it theirs to sell? Is “purified air” next?

Carbon Impact Figi Case Study: One bottle of Figi Water CO 2 emissions Production in China – 93g (3x mass PET) Transport to Figi – 4g Transport of filled bottles to US – 153g Total Impact: 250g CO 2 /bottle Energy cost of PET production, filling and transportation is equivalent to filling each bottle ¼ full of oil.

Conclusions Million Dollar Industry Charging exorbitant prices Marketing and hype Questionable ethics in acquisition Using existing technology and equipment Often already paid for with tax dollars Generating culture of distrust, disposability and waste

Sources (FDA/CFSAN website) National Resources Defense Council International Bottled Water Association