• Scope and Methodology
• Scope of Study
• Study Methodology
• Bottled Water Definition
• Pure Bottled Water: Primary Types
• Purified Bottled Water
• Three Product Categories
• Two Niche Product Segments
• Flavored Water
• Enhanced Water
• Government Regulation
• The Federal Level
• The State Level
• Industry Regulation
• FDA Establishes Standards of Identity
• The Market
• $6.7 Billion in 2003
• Table 1-1: U.S. Retail Sales of Bottled Water, by Category and Total, 1998-2003
• Food Stores Lead in Retail Bottled Water Sales
• Figure 1-1: Share of Bottled Water Sales by Channel
• Discounters and C-Stores
• Bottled Water at $2.9 Billion in FDM Outlets
• Table 1-2: IRI-Tracked Retail Sales of Bottled Water, By Category and Total, 1998-2003
• Tremendous Success Driven by PET
• Volume/Gallon Sales
• Bulk Trumps PET in Gallonage
• Multipacks Major Sellers
• Enhanced Waters Booming
• Per Capita Consumption
• Water to Surpass Coffee, Beer, Milk
• Bottled Water vs. Tap Water
• Convenience
• Active Lifestyles, Exercise/Fitness, Health/Wellness
• Aging Baby Boomers
• Market Still Not Mature
• Price Wars
• Supply Limitations?
• Projection: Over $12 Billion by 2008
• Figure 1-2: Market Projection of All Bottled Water, 2004-2008
• The Marketers
• At the Top: Four Now Three
• Secondary, Tertiary Marketers
• Enhanced Water Leaders
• Nestle Dominates Bottled Water Sales
• Table 1-3: Marketer Share of Retail Bottled Water Sales, 1998-2002
• Emerging Three-Way Competition in 2003
• PET Shares: Nestle, PepsiCo, and Coke/Danone
• PET Brand Shares
• Bulk/Jug Share
• Mineral/Sparkling Share
• Advertising Expenditures
• New Product Trends
• Flavored Waters
• Enhanced Waters
• Calcium and Oxygen Waters
• Ultrapristine Waters
• PET Packaging Pervasive
• Distribution/Retail
• Distribution Key to Success
• From Intermediary to Direct Distribution
• Greater Visibility at Retail
• Supermarkets
• Discount Stores
• Convenience Stores
• Natural Food Stores
• The Consumer
• Number of Users
• Skew to Women
• Skew to Non-Whites
• West Best Region
• Strong Composite Consumer Profile

Chapter 2: The Products

• Scope of Study
• The Retail Bottled Water Market
• Extra-Retail Channels Largely Excluded
• Artificially Carbonated Products Not Included
• Purification, Modification Products Excluded
• Definitions/Classifications
• Defining Bottled Water by What It Is Not
• Not Another Beverage Type
• A Positive Definition
• Two General Classes: Pure and Purified
• Five Pure Types
• Spring Water
• Well Water and Artesian Well Water
• Mineral Water
• Sparkling Water
• Purified Water Types Based on Processing Technique
• Reverse Osmosis
• Ozonation
• Micron Filtration
• UV Treatment
• Distillation
• Beyond Pure/Purified: Other Classification Schemes
• Three Product Categories: Convenience/PET, Bulk/Jug, and Mineral/Sparkling
• Two Niche Product Segments
• Flavored Water
• Enhanced Water
• Enhanced Water Ingredients
• Nutraceutical Types
• Flavors and Sweeteners in Enhanced Water
• Enhanced Waters Blur External, Internal Boundaries
• Packaging
• Overview
• Packaging Materials
• Bottle Shapes, Texture, Colors
• Sizes 32
• Multipacks
• Regulation
• Two Governmental Levels
• The Federal Level: FDA and EPA
• The FDA’s Direct Role
• Bottled Water as a Food
• Mandating Testing
• The EPA’s Indirect Role
• FDA, EPA, and Stricter Labeling Rules
• The States Tasked with Enforcement
• Some States Stricter Than Others
• The Industry Regulates Itself
• IBWA Model Code
• Nutritional Labeling and Education Act
• FDA Establishes Standards of Identity
• FDA Definitions: Mostly Fastballs, Some Curveballs
• Knuckleball Municipal Descriptors

Chapter 3: The Market

• Market Size, Growth, and Composition
• Retail Bottled Water Market at $6.7 Billion in 2003
• Table 3-1: U.S. Retail Sales of Bottled Water, by Category and Total, 1998-2003
• Figure 3-1: U.S. Retail Sales of Bottled Water by Total 1998-2003
• Growth by Product Category
• A Spectacular Performance by Bottled Water: Some Testimony
• Some Reasons for Recent Stellar Growth
• Food Stores Lead in Retail Bottled Water Sales
• Figure 3-2: Share of Bottled Water Sales by Channel
• Discounters and C-Stores
• Other Retail Outlets
• From Soft Approximations to Hard Data
• Bottled Water at $2.9 Billion in Retail Outlets
• Table 3-2: IRI-Tracked Retail Sales of Bottled Water, By Category and Total, 1998-2003
• Strongly Up in 2003
• Tremendous Success Driven by PET
• Bulk/Jug and Mineral/Sparkling Lackluster
• Bulk/Jug Remains Important
• Mineral/Sparkling Tied to Economy
• PET Eclipses B/J and M/S
• Table 3-3: Retail Share of U.S. Bottled Water Market by Category, 1998-2002
• Figure 3-3: Share of Bottled Water Sales by Category, 1998
• Figure 3-4: Share of Bottled Water Sales by Category, 2002
• M/S Caveat Regarding the Discount Sector
• Volume/Gallon Sales
• Table 3-4: Change in Volume Sales of Bottled Water, by Category, 2001-2002
• Figure 3-5: Change in Volume Sales of Bottled Water, by Category, 2001-2002
• Bulk Trumps PET in Gallonage
• Unit Sales Favor PET
• Table 3-5: Change in Unit Sales of Bottled Water, by Category, 2001-2002
• Figure 3-6: Change in Unit Sales of Bottled Water, by Category, 2001-2002
• Price Averages by Product Category
• Table 3-6: Average Price Per Gallon of Bottled Water, by Category, 2001-2002
• Bottled Water Gallons Double, PET Cases Quadruple
• Multipacks Major Sellers
• Flavored Waters Ascending
• Enhanced Waters Booming
• Seasonality: Summer is Hot
• Table 3-7: IRI-Tracked Sales and % Share of Retail Bottled Water Sales, by Quarter, 2002
• Figure 3-7: IRI-Tracked Sales and % Share of Retail Bottled Water Sales, by Quarter, 2002
• Regionality
• Factors in Future Growth
• Overview: Future Looks Bright
• Establishing Context: The Beverage Universe
• Bottled Water Per Cap Leaps
• Figure 3-8: U.S. Per Capita Bottled Water Consumption, 2000-2002
• Other Beverages Lackluster by Comparison
• Despite Water’s Gains, Soft Drinks Still Rule
• Water to Surpass Coffee, Beer, Milk
• The Trend to Noncarbonated Drinks
• Soft Drinks the Big Victim of the Trend
• Will Other Noncarbs Arise to Challenge Water?
• Overview: Alternative Beverages
• From Where Will Bottled Water Get Its Future Share?
• Its Prime Rival: Tap Water
• Tap Water’s Bad Name
• Widespread Skepticism Toward Tap
• Figure 3-9: U.S. Consumption of Water Based on Source
• But Is Bottled Water Really Safer?
• The Answer: Yes, But...
• IBWA vs. NRDC
• Literary and Aesthetic Critics
• Bottled Water Winning the Perceptual Battle over Tap
• No Real Obstacles, So It’s Up, Up, and Away
• Positive Factors: Convenience in Its Four Aspects
• Portability
• Ubiquity
• Reliability
• Flexibility
• Active Lifestyles
• Active by Default: On the Run
• Active by Choice: Exercise
• Bottled Water Best Beverage for Active Lifestyles
• Water, Diet, and the Health/Wellness Trend
• Healthy Choices and Social Life
• Exercise, Health, and the Baby Boom
• Water Sales Rage as Boomers Age
• Echo Boomers Follow Parents’ Lead
• Kids and the Obesity Epidemic
• A Strong Market Poised to Grow Stronger
• Pulling in Men and Ethnics
• Market Stimulated by New and Enhanced Products
• Convenience, Health Trump Economy
• Top-Gun Marketing Also Stimulates Demand
• Negative Events Perversely Positive for Bottled Water
• Global Warming Good for Bottled Water
• Potential Negative Factors: Ironic Outcomes of Success
• Price Wars
• Greater Consumer Awareness a Double-Edged Sword
• Case in Point: California
• Then There's Maine
• What if Demand Outstrips Supply?
• Market Projections
• Over $12 Billion by 2008
• Table 3-8: Projected Growth of Convenience/Pet Bottled Water, 2004-2008
• Table 3-9: Projected Growth of Bulk/Jug Bottled Water, 2004-2008
• Table 3-10: Projected Growth of Mineral/Sparkling Bottled Water, 2004-2008
• Table 3-11: Projected Growth of All Bottled Water, 2004-2008
• Figure 3-10: Market Projection of Convenience/Pet Bottled Water, 2004-2008
• Figure 3-11: Market Projection of Bulk/Jug Bottled Water, 2004-2008
• Figure 3-12: Market Projection of Mineral/Sparkling Water, 2004-2008
• Figure 3-13: Market Projection of All Bottled Water, 2004-2008
• Projections by Category

Chapter 4: The Marketers

• Number of Marketers
• Size of Marketers
• Marketers by Type
• Marketer/Brand Structure
• Marketer/Category Structure
• At the Top: Nestle, Coke, Danone, PepsiCo
• Nestle Waters North America
• Coca-Cola and Danone Waters
• PepsiCo
• Suntory and C.G. Roxane
• Tertiary Marketers
• Significant Regionals
• Significant Import Brands
• Enhanced Water Leaders
• Table 4-1: Selected Minor Bottled Water Marketers and Their Brands
• Marketer and Brand Shares
• Explanatory Note
• Overall Marketer Share: Nestle on Top
• PepsiCo Shoots up to No. 2 in 2002
• Table 4-2: Marketer Share of Retail Bottled Water Sales, 1998-2002
• Figure 4-1: Marketer Share of Retail Bottled Water Sales, 1998
• No. 3 Danone Sinks Like a Stone
• Figure 4-2: Marketer Share of Retail Bottled Water Sales, 2002
• Coke: Out of Nowhere to No. 4
• Emerging Three-Way Competition
• Coke/Danone Catapults over PepsiCo
• Nestle Under Pressure
• All Other Marketers Suffer, But Stabilize
• Private Labels Decline But Remain Potent
• Marketer Shares: PET
• Table 4-3: Marketer Shares of Retail PET Water Sales, 1998-2002
• Figure 4-3: Marketer Shares of Retail PET Water Sales, 2002
• Brand Shares: Aquafina and Dasani Lead
• Table 4-4: Brand Shares of Retail PET Water Sales, 1998-2002
• Other PET Brands
• Marketer Shares: Bulk/Jug
• Table 4-5: Marketer Shares of Jug/Bulk Water Sales, 1998-2002
• Brand Shares: Bulk/Jug
• Table 4-6: Brand Shares of Retail Jug/Bulk Water Sales, 1998-2002
• Figure 4-4: Brand Shares of Retail Bulk/Jug Water Sales, 2002
• Marketer Shares: Mineral/Sparkling
• Table 4-7: Marketer Shares of Mineral Water Sales, 1998-2002
• Brand Shares: Mineral/Sparkling
• Table 4-8: Marketer Shares of Mineral Water Sales, 1998-2002
• Figure 4-5: Brand Shares of Retail Mineral Water Sales, 2002
• Enhanced Water Share
• Figure 4-6: Growth of Enhanced Water Segment
• The Competitive Situation
• Before: Lazy Competition Between Regionals and Imports
• After: Bottled Water Throttles into Hypercompetition
• The Consolidation Dynamic
• Transformations and the Top Three
• Nestle: Strengths and Weaknesses
• Coke/Danone: Strengths and Weaknesses
• PepsiCo: Strengths and Weaknesses
• Coke Fires First Salvo in Price Wars
• PepsiCo Ignores Coke’s Challenge
• Coke’s Low-Ball Dannon Strategy Successful
• Portentous Overtones: Coke Cannibalizing Dasani
• Nestle and Roxane Match Coke’s Price Cuts
• Price War Critics
• Price Wars Threaten Brand Equity
• National Branding Key to Bottled Water Success
• National Branding Achieves Three Competitive Goals
• From Regional/Import to National Brand Structure?
• Obstacles in the Way: Price Wars, Enduring Regionality
• Nationals Sell No Bulk/Jug
• The “Cognitive Dissonance Trap”
• Overcoming Obstacles through Ad/Promo Efforts
• Extending into Multipacks
• Segmenting into Enhanced Water
• Competition and the Smaller Marketer
• Offering Enhanced and Premium Waters
• QAI: A New Premium Tool
• Other Smaller Marketer Strategies: Regional Perseverance
• Offering Flavors
• Orienting to Private Label
• Combo Strategies
• All Small and Large Marketers Vulnerable to Consolidation
• Competitive Profile: Nestle Waters North America
• Nestle Waters Is Actually Perrier Group
• Perrier Builds American Bottled Water Empire
• Nestle Acquires Perrier
• PGA Changes Name to Nestle Waters
• Nestle Way on Top of Bottled Water
• Tentative Steps into Enhanced
• Recent Competitive Moves
• Nestle’s Regional Strengths
• Ramping up Production to Stay on Top
• Who Owns What Water Where?
• Nestle Faces Water Rights Battles
• Resistance in Michigan
• Dust-Up in SoCal
• Class Action Lawsuit over Poland Spring Labeling
• Potential Black Eye for the Industry
• Competitive Profile: Coca-Cola Co. and Coke/Danone
• Coke Intros Dasani in 1999
• A Feather in Coke’s Cap
• Dasani
• Danone’s Fall from Grace
• Evian and Dannon Plummet
• Coke acquires Danone Waters in a “Hedged Merger”
• First Evian
• Then Dannon and Other Danone Brands
• Coke/Danone Partnership Provisions
• Advantages Accruing to Coke
• Advantages for Danone
• Disadvantages of the Deal
• Slashing Dannon, Cannibalizing Dasani
• Supporting Dasani
• Testing Dasani Nutriwater
• Coke Gaining a Global Water Presence
• Competitive Profile: PepsiCo
• A Leader in Soft Drinks and Other Beverages
• PepsiCo Creates National Market with Aquafina
• Innovator in Sourcing and Naming
• Other Components of PepsiCo’s Model
• Aquafina Straight to the Top
• Two New Enhanced Waters
• Aquafina Essentials
• Propel Fitness Water
• Positioned as a Sports Drink
• Competitive Profile: Suntory Water Group
• Home/Office Leader
• Regional Brand Network
• 2002: Realigning to Retail
• H/O Biz on the Block
• H/O Merger with Danone
• Sizing Up the Suntory/Danone Merger
• Competitive Profile: Energy Brands
• Tops in Natural Food Stores
• Pioneering Enhanced Brand: Glaceau
• Glaceau Vitaminwater
• Tea Vitaminwaters
• Glaceau Flavors
• New Investor in Energy Brands
• Competitive Profile: Dr. Pepper/7 Up
• Deja Blue: New Major Brand?
• Tested Regionally, Rolling Out National
• A National Brand for Indy Distributors
• Consumer Advertising Expenditures
• Ad Spending Quadruples
• PepsiCo and Coke Expenditures
• Nestle Expenditures
• Other Ad Spending
• New Product Trends
• Overview
• Flavored Waters
• Enhanced Waters
• Complex Enhanced
• Simple Enhanced
• Calcium and Magnesium
• Unique Ingredients
• Diet Waters
• Oxygen Waters
• Healthy-By-Nature Waters
• Superior-Source Waters
• Charity and Promotional Waters
• Native American Waters
• Licensed Waters
• Children’s Waters
• Pet Waters
• Packaging Trends: PET
• Boxes/Pouches
• Carriers
• Sport Caps
• The Fridge Pack
• Novelty Packaging
• Table 4-9: Selected New Bottled Water Product Introductions: 2002-2003

Chapter 5: Distribution/Retail

• Distribution
• Key to Success
• Traditional Distribution
• Intermediary Distribution
• Direct Distribution
• Indys Squeezed
• At the Retail Level
• Bottled Water’s Greater Visibility
• PET Multipacks Proliferate
• Margins
• Evolving Category Management
• Brief Retail Profiles: Supermarkets
• Discount Stores
• Convenience Stores
• Natural Food Stores
• Drugstores
• Vending Machines

Chapter 6: The Consumer

• The Simmons Survey System
• The Consumer: Overview
• Number of Users
• Number of Users: By Sex
• Percentage of Users: By Race
• Figure 6-1: Percentage of Bottled Water Users by Race
• Number and Percentage of Users: By Region
• Figure 6-2: Percentage of Bottled Water Users by Region
• Skew to West, Then Northeast-Midwest Least
• Consumer Miscellanea
• Consumer Profiles
• A Strong Composite Profile
• Brand Profiles by Demographic Factor
• Brand Profiles: By Age
• By Sex
• By Race
• By Region
• By Education
• By Employment Status
• By Household Income
• By Marital Status
• By Household Size
• By Age of Children
• Table 6-1: Consumer Profile of Bottled Water Users, By Brand and Characteristic

Chapter 7: Trends and Opportunities

• Focusing Branding Efforts
• Enhanced Water and Documentation
• Targeting White Males
• Avoiding Price Wars
• Honest Labeling
• Bulk/Jug Branding

Appendix: Addresses of Selected Marketers