Thursday, June 27, 2013

WATER POWER: The Old Standby Oulasts Pop to Reclaim the Title of America's Favorite Beverage (continued)

Although companies such as Coca-Cola Co. and PepsiCo Inc. would rather have people buy bottled waters, they're even more invested in getting people to drink more pop again.

That's because pop and other drinks that the companies make, such as sports drinks and juices, are more profitable  than bottled water.  With bottled water, people tend to buy whatever is cheapest.  That's a habit that forces companies to keep prices relatively low, which eats into profits.

It's why companies are investing so heavily in developing nations such as China and India, where the appetite for pop continues to grow.

In the meantime, the chairman and former CEO of Nestle Waters North America, Kim Jeffery, is waiting for bottled water's moment on the spotlight.  Nestle, a Swiss company, has nearly half the share of the bottled water market.

At a beverage industry conference late last year, Jeffery noted that bottled water is "the elephant in the room."

And given the growing warnings over drinking too many calories, Jeffery said he's confident that water will continue to grow in popularity.

"For thousands of years, water was the beverage of choice for human beings," he said.  "Now we're reverting back to that."

Source: Omaha World Herald and The Associated Press