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Water: an untapped revenue source
A lot of folks have begun to notice that burning oil to ship heavy gallons of spring water from all over the world to a country that has more drinkable, municipally supplied water than anywhere else on the globe is nonsensical.
Tons of petroleum are converted to plastic (most of which is not recycled) to hold spring water that is often not any healthier to drink (and sometimes less so) than tap water. Most importantly, over a billion people worldwide do not have access to reliable and clean drinking water. Water will very soon be a precious resource, more scare and more valuable than oil. That’s why shipping clean drinking water out of places without a municipal water supply to the US, which has plenty of water to go around, is capricious and just plain wrong.
Adding insult to injury, it’s come to light recently that Coke and Pepsi's bottled waters, Dasani and Aquafina, (some of the most popular on the market) do not even use spring water. Instead, Coke and Pepsi simply bottle the tap water in whatever municipality their plant is located. While it is more responsible to drink tap water than spring water, the fact that the soft drink giants have been spending millions on marketing to get people to turn off the tap and open their wallets for the same exact product is an egregious offense.
Dasani and Aquafina dominate the bottled water market and they do it with our water supply. However, the success of Aquafina and Dasnai point to a real opportunity. That's why once you get past seeing red about this, maybe like me, you’ll see green.
Philadelphia needs to either bottle and sell its own water or raise taxes on Coke and Pepsi to capture a much bigger share of their profit on the sale of our water.
As poverty grows in Philadelphia, it’s important we increase funding to after school programs, anti-violence initiatives, schools, rec centers, health centers, libraries and more. Raising wages/creating jobs or increasing taxes are the most direct ways to come up with extra funds. However, water is one of many ways that we can raise smaller amounts of revenue easily and painlessly.
The Philadelphia Water Department (PWD) started bottling tap water earlier this year and it gives away cases of the stuff, for free, to local non-profit groups. There was a detailed article about this in the City Paper, which you can read here.
Why not go head to head with Dasnai and Aquafina (we know our product will taste the same) and sell Philly Tap at every corner store, in every Wawa, 7-11, etc, through out the region?
While I worry that the cost of expanding this operation might be cumbersome, if the PWD did bottle and sell enough water to compete with Coke and Pepsi, we’d have the advantage of being able to drastically under price them. An http://www.stopcorporateabuse.org/cms/page1379.cfm “>Inquirer story on Pepsi and Coke’s misleading marketing of their water products quotes Joan Przybylowicz, from the PWD who says that:
a gallon of the city's tap water costs about one-half cent. By comparison, a half gallon of Dasani can be had for $1.59.
If PWD bottled and sold its own water, even if they sold the product for 50 cents a bottle, we’d still collect a ton of revenue we don’t currently have
There is plenty of demand after all.
According to the Philadelphia Coca-Cola Bottling Company website, our local plant is the fourth largest nationwide with over half a billion dollars in annual sales. Both Pepsi and Coke have reported that bottled water sales are among the fastest growing in their companies and may soon catch up or even overtake the sale of carbonated beverages. That means there are a lot of potential water consumers in Philadelphia.
The simpler way to profit off of water is to tax Pepsi and Coke at a higher rate for their water usage. I had some trouble figuring out the PWD’s business tax rate (hello Philadelphia, can we get some good city websites up or what?), but for consumers, it costs about $17 in taxes for 600 gallons of water. Philly Coke’s website says it serves about 5 million consumers a year. If one-third of these people buy one 20 oz. bottle of water a year, we’re talking at least 278,437 gallons of water sold annually.
I don’t really care how we make money off of water, but the point here is that in these cash strapped times, we are stupid if we don’t.
Our water supply is currently being exploited by Coke and Pepsi. As the largest municipality collecting and cleaning water for drinking in the region, Coke and Pepsi can’t really get the tap water they need for Dasani and Aquafina anywhere else but Philly (and shipping tap water from other places would likely cut too deeply into their bottom line). That means that whether we tax them more, or bottle our own water, Philadelphia is in a good place to be able to better take advantage of a natural resource.
I hope that presumptive Mayor Nutter and new and old members of Council realize this get to work as soon as possible raising new revenue from water.











a good sidebar
This didn't really fit into my post, but check out this quote from the President of our local Coca-Cola bottling company in a 1998 NY Times article in whch he describes one of the reasons for the increased popularity of bottled water:
Now in fairness, he is describing why Coke sales of Evian (which at least at that time they sold) were going so well, still, this is pretty funny stuf from the head of a company that now makes a major profit bottling and selling tap water.
The environmental costs in
The environmental costs in bringing some of these bottled waters to market is astounding. Bottled tap seems like a great local alternative - though - businesses used to just give customers a glass of water. Though I'd like to see a deposit on the bottle.
Would we label it "City Water" or "Schuylkill Cocktail"? Hmm...If you marketed both, people would argue over which tasted better.
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http://www.fastcompany.com/magazine/117/features-message-in-a-bottle.htm...
"The label on a bottle of Fiji Water says "from the islands of Fiji." Journey to the source of that water, and you realize just how extraordinary that promise is. From New York, for instance, it is an 18-hour plane ride west and south (via Los Angeles) almost to Australia, and then a four-hour drive along Fiji's two-lane King's Highway.
Every bottle of Fiji Water goes on its own version of this trip, in reverse, although by truck and ship. In fact, since the plastic for the bottles is shipped to Fiji first, the bottles' journey is even longer. Half the wholesale cost of Fiji Water is transportation--which is to say, it costs as much to ship Fiji Water across the oceans and truck it to warehouses in the United States than it does to extract the water and bottle it.
That is not the only environmental cost embedded in each bottle of Fiji Water. The Fiji Water plant is a state-of-the-art facility that runs 24 hours a day. That means it requires an uninterrupted supply of electricity--something the local utility structure cannot support. So the factory supplies its own electricity, with three big generators running on diesel fuel. The water may come from "one of the last pristine ecosystems on earth," as some of the labels say, but out back of the bottling plant is a less pristine ecosystem veiled with a diesel haze."
But Aquafina is gooooood
Seriously, who didn't know that Aquafina and Dasani were just tap water? I feel like it basically even says it on the bottles.
Anyway, Aquafina is goooooood. I'm a ashamed to admit it, but it's true. I'm convinced that they put something in it. All other bottled water is like, whatever, but somehow Aquafina is different. I don't get it.
But sure, let's cash in. Though I remember a time in the 90s when every University in Kansas had it's own bottled watter (we used to joke that some freshmen was filling them up in the dorm tap) and I think it made money for a little while,
then it just stopped.
It's tough to compete with the big guys marketing, y'know?
BR
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The Russellian Incorporated Innovations Corporation
Lefty Homilies
brainwashed
damn you are easy brady.
but for sure, marketing and selling water would be hard for the city to do. Coke and Pepsi are tops for a reason. That's sort of my pointr about price though: 50 cents would be hard for them to compete with. Plus, if you get everyone to acknowledge that Aquafina, Dasnai and tap are all pretty much the same in terms of taste and health benefits, then you got Philly pride working to sell Philly Tap. If I am thirst and could pay to quenched AND help the city out by putting pure profit into city coffers for good programs, how cool would that be?
It's a good point
Dude, there's Philly pride?
Seriously, though, it's not a bad point. If Philadelphia Water bottled Tapwater and put it in the 7-11s, I'd definitely buy it. I remember when the activists did the taste tests of different waters on campus. When the spokesperson for the bottled water industry commented on it, he basically pegged the reason that I buy bottled water spot on, and I have a feeling it's the same for a lot of people. It's not that I actually think it's safer or better.
I buy bottle water when I'm out doing my thing (either around town or on the road) and I want something to drink and I didn't plan ahead well enough to bring water and I don't want a bunch of calories.
Normally, I buy the least expensive bottled water (or Aquafina if I can't resist... I detest Dasani. ANYTHING but Dasani.) and take that.... because as the good little metrosexual that I am, I gotta watch the calories.
that's the logical reason to buy the odd bottle of bottled water, and I think the industry is well aware of it.
So, yes, if Philadelphia managed to rock the others on price (if that's possible... it might not be possible to beat that price with distribution and etc, especially since they've got that system in place), it could be a real local coup.
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The Russellian Incorporated Innovations Corporation
Lefty Homilies
exactly!
this is when i get most excited about organizing and ostensibly the power of government.
lots of essentially good people--like us--know there is something off about bottled water. But we get thirsty.
If the City steps in with Philly Tap in bottles, all over the place, we can feel like we're doing our part--in a really simple way--for the environment and we still get to hydrate. And the city makes money.
Plus, Kathy's point above is great, if we could do something with deposit bottles or some recycled plastic--or just more plastic recycling cans around town--it would be very...complete.
Marketing green
I think pitching this as an environmentally friendly alternative to buying bottled water is a great idea. The combination of making it cheaper than Coke or Pepsi and also including a green component will be attractive to a lot of people. I can think of two organizations, Philly Car Share and Philly Freecycle, that already capitalize on the growing demand for affordable green products.
If Philadelphia actually starting doing this, it could be a great springboard to figure other ways of raising revenue that do not involve raising taxes.
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Check out my blog!
Sigh...
Anyway, Aquafina is goooooood. I'm a ashamed to admit it, but it's true. I'm convinced that they put something in it. All other bottled water is like, whatever, but somehow Aquafina is different. I don't get it.
Simple: cognitive dissonance. You just paid extra for precisely the same stuff you could have gotten for virtually nothing out of a tap. You can't change the fact that you did this, so you change your opinion of the product- "mmmm... so much better than tap water..."
Psych 101,
-Z
I don't think so
I know it's crazy, but I've had them all and don't even really notice them but somehow AF is different. I continue to maintain that there's a secret ingredient in there that they aren't telling the FDA abouut.
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The Russellian Incorporated Innovations Corporation
Lefty Homilies
I think they use bathroom
I think they use bathroom water - the others all take it from the kitchen tap............
You can't call it "Philly Tap"
Water is about price and convenience, but also marketing. Philadelphia just isn't known for great tap water. And the associations people make with the city aren't (ahem) the best.
So how about:
"Wissahickon Falls";
"Mayfair Springs";
"Franklin Fountain";
This is what I would do -- get with Yuengling as a bottling partner and sell "Yuengling Water." That way, just like with "lager," when people ask for a "worter," you'll know exactly what they mean.
--Tim
honest marketing
I don't know... honest marketing sometimes really hits the spot. Just like I think people are getting tired of suburbs named "Deer Leap Mt" I think maybe people are looking at bottled water labels and saying... "C'mon." Starbucks abandoned the nature theme with "Ethos" and CVS just calls its bottled water "CVS Water."
I think "Philly Tap" might kind of nail people. I don't think giving it a nature name will do it any better.
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The Russellian Incorporated Innovations Corporation
Lefty Homilies
it's already called philly tap
this is not theoretical. the product already exists:
however this is funny
This is a really good idea.
This is a really good idea. The first time I saw Philly Tap, for some park think my mom was doing in GTown, I thought it was a joke. But, really, why not?
I think the biggest obstacle for something like this is first and foremost getting it into stores. Distributors probably have deals with the big companies to push their products.
But, if we can attempt to sell Philly clothing, why not this?
Bottled water is always bad
Hm, I'm surprised I'm alone here, but if the impetus of this idea is to be more environmentally friendly, then the push should be to stop buying bottled watter, period.
Yea, the pollution saved by shipping the bottles less distance is nice, but think of the pollution one could really save by not producing all of those bottles to begin with. Any marketing campaign should be similar to that of cities like New York; one to get people to start drinking tap.
In San Francisco, Mayor Newsom ordered that no city money is to be spent on buying bottles of water. Bottled water, whether from NYC tap or Philly tap, is still bad for the environment, even if it is (arguably) good for our city pride.
yea, you're not alone
you are not alone Charlie, but that is a bigger order to fill. I mean what exactly is the distinction between drinking soda which is also sold in plastic bottles and water? Really, we should not be making or using plastic at all. But we do, and that feels harder to change. Kathy mentions the ideas of deposit bottles above. The other easy option with water is giving away those nalgeen bottles and filling up from the tap, but the reality is that people forget to bring things (like keys, phones, sunglasses, umbrellas, etc.) all the time and some people are always going to want to be able to buy water on the go. I guess my point is, if that's the case, let's not let people buy Fiji water or spend more money on tap water (that Coke/pepsi) than they have to.
As a point of clarification, what is the status of the SF order by Newsome? has been challenged in court? Is it legal? What are the responses?
true
Drastically changing the way people fundamentally live is a much bigger order (albeit absolutely necessary). Frankly, I can't get my roommates to turn off a light or throw a beer bottle in the recycling bin instead of the garbage can.
But to your point,
There is one big difference. Water comes out of our sink, while soda does not. Therefore it is possible to get people who consume a lot of bottle water to bring around a nalgeen bottle with them which would mostly satisfy their desire for water on the go, but yet be very environmentally friendly. That scenario doesn't hold true for sodas. Does that make sense?
Clearly I'm not saying that people should never ever buy a bottle of water when they're out. I do.. sometimes....rarely, but I do (also my farts don't smell). But I believe that any marketing campaign should be aimed at reducing the consumption of bottle water, not trying to make Philly some extra bucks.
As far as SF is concerned, I'm not aware of any lawsuits, or any grounds that people could or would bring them. Gavin is in charge of the city agencies, and therefore can tell them what they are and are not allowed to buy.
ok, but...
Mayor Nutter can do the same thing, and it sounds like he should (ban the purchase of plastic water bottles in city offices) but that does not affect the sale of bottled water in the free market (at Wawa for instance). Therefore, it doesn't make sense to to me not to investigate the revenue potential.
Besides which, like I said above, a huge part of the popularity of bottled water is convenience (cuz people forget their nalgeen), so rather than just ignore that fact, what are eco-friendly convenience alternatives? Glass bottles? Plastic bottle deposits? what?
Lead Pipes
The other thing is, yes, we have tap water available. But who trusts that if they are at some random place, they are not getting lead pipe tap water? (Like at a lot of schools, at least until recently.) But, if we got it from a city bottling plant, I think people would feel a little safer about it.
I really think this is a good idea.
How to drink Philadelphia water
1. You should always let it run for a minute before using. This has to do with how the pipes in most houses are joined (lead solder). This assures you do not get lead.
2. Leave it out overnight. This allows the chlorine that is used to purify it to evaporate. It will taste much better
Cl in water
A fellow Liberal Drinker is a longtime employee of the Philadelphia Water department. He notes that today's Philadelphia water tastes much better than it did 20-30 years ago, largely b/c the water sources- primarily the Schuykill + Delaware rivers- are so much cleaner. This means that less chlorine is needed to disinfect the water. That being said, I'd still suggest leaving water out overnight to allow what chlorine there is to evaporate before adding it to a fishtank. But, as my friend says, it's either chlorine or cholera- take your pick.
It's not a tough choice,
-Z