Coolers in the home

The following content originally appeared in issue 63 of Cooler Plus, which you can subscribe to here.

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The phrase ‘home and office delivery’ is frequently used to describe the water cooler industry, but in Europe the ‘home’ part of the offering has proved more difficult than delivering to offices. Are things changing? Some of the objections to home delivery used to centre around people not being in to receive deliveries – and issues around payment. But, with so many people now ordering and paying for groceries online and expecting home delivery, perhaps it is time for the cooler industry to put some emphasis on residential rentals. Cooler Plus talked to a panel of industry suppliers to gain their views.

The cooler industry is often called the ‘Home and Office Delivery’ or HOD industry, but historically this was an Americanism and our experience in Europe is that the residential sector has been more difficult to penetrate. What percentage of coolers end up in people’s homes?

VM: Consumer attitudes towards coolers in the home are very different in Europe to those in the US and the Middle East. In the US, around 50% of all coolers are in homes. It’s difficult to pin point why the residential market has not taken off in Europe. Homes are smaller, access is more difficult and most coolers on the market are not designed for the home space.

MC: The household sector is becoming more and more interesting and strong. 5% of our coolers end up in people’s homes, and this percentage is increasing over time.

FD: The domestic water cooler market, which is still modest in size in Europe, prefers mains fed models. The key driver in choosing to purchase a water dispenser is the simplification of water management at home, eliminating the need to purchase, transport or store water bottles. Families are looking for a triple saving: on running costs, time and space. Cosmetal’s H2OMY now accounts for about 10% of total sales.

TL: The percentage of coolers in people’s homes is growing fast because people are demanding quality water services at home.

DS: From our experience 5% of our mains-fed coolers are installed in people’s homes, but this percentage will increase in the near future.

RB: Since its inception, Asset has believed that it was possible to have a
water dispenser in every home. For this reason, in Italy, the residential market was the first one to be tackled and has always been the main market for mains-fed coolers.

Access to consumers’ homes is notoriously more difficult than access to office premises, making water delivery and servicing more difficult. As a manufacturer, what have you been able to do to make this easier for the distributor?

MC: We manufacture mains-fed water coolers, so we get rid of these issues: no delivery, no heavy weight lifting, and no pollution deriving from transportation. No need for our distributors to stock and handle bottles. Our distributors make contracts that include periodical maintenance. They set an appointment, change the filter, the CO2 cylinder when necessary, and sanitise the cooler. We prepare kits for the distributors and organise technical courses at our premises, so that our technicians are always up to date and can discuss their experiences and their requirements. All of our distributors only work with certified technicians, and the consumers are very happy with the service.

DS: Thanks to the dry cooling technology, BluSoda is a real plug & play solution and consequently, maintenance is very easy.

VM: Ebac’s Slimcool & Myspring model’s dimensions are sleek and compact, therefore the boxed item can easily fit into any vehicle for transport. With regards to servicing, the main advantage of Ebac coolers is our patented Watertrail, giving 100% sanitisation every time – and replacing it can even be carried out easily by the consumer themselves. Watertrails can be posted out to the consumer and self-sanitised, helping to reduce the carbon footprint of sending out a technician with flushing chemicals, to all postcodes.

TL: Home access may be difficult in big cities, so we have worked on a technical solution that is efficient, reliable and easy to install, in order to reduce technical servicing to a minimum level. Moreover, we have worked on the sanitisation process to make it easy to be conducted by the end user – to ensure that water quality is always at its best.

RB: We offer a plug & play product with all the accessories included to minimise installation time. Our machines signal when the filter needs to be changed so that the end user can communicate in plenty of time with the service team. The common core of our machines also simplifies the life of the distributor since our spare parts are fully interchangeable.

FD: Access to consumers’ homes is more difficult due to ‘wrong products’ in some cases, and low product awareness in others, but demand for these kinds of products is experiencing a positive trend. At Cosmetal we have analysed the family’s needs in relation to water provision and developed models that match their product requirements in terms of design, functionality, performances and dimensions.

GT: Distributors are a key component of our business model and we listen carefully to all their feedback and ideas to make their job easier. At Zerica we have always made quality products both our distributors and end users can trust and rely on. Our coolers for domestic use not only require minimal maintenance, but are also designed to allow easy access for a technician.

In operational terms, usage rates vary more widely in a home setting, depending on the size of the family, etc. Have you had to take different technology factors into account when designing coolers for home use?

VM: Both of our Slimcool units have a burst rate of 10 cups and the Myspring of eight cups to account for the lower volume usage than that of the more commercial units. These units run off a peltier device rather than a standard compressor, which reduces noise and is more efficient in a lower usage environment for the consumer.

MC: Our home coolers are equipped with advanced technology, adapted to their specific use. If the system offers hot water, for example, children will not be able to dispense it without supervision. The anti-flooding device protects from the risk of leakage on furniture. The litre-counting system signals when the filter is close to exhaustion and needs to be replaced, so we make sure the family always drinks pure, fresh water. Home coolers are also more elegant and their dimensions fit kitchens of all kinds. The size of the family is taken into account when it comes to CO2 cylinder/ filter cartridge, and our distributors make sure each family chooses the perfect, customised solution.

GT: We constantly work to improve all aspects of our machines down to the individual component level. Whether it be noise levels, size, throughput, ease of use or producing smart products that don’t require any special maintenance, coolers are in our DNA and in 85 years of business one thing has not changed: no consideration is too minor
in the pursuit of perfection.

A cooler has to ‘look at home’ in the residential market and take up as little space as possible. Has this presented new design challenges?

TL: Yes it has been a real challenge to design a range with a look and size dedicated to home needs. That’s why, with the table-top model, we worked on a solution as compact as possible in order to be integrated in all kitchens: our very compact Waterstation table-top units can be installed everywhere.

For the under-sink model, we designed our products in order to be able to install them in 95% of kitchen cabinets. With our modular system of filtration rack and different types of faucets, we offer different installation modes to suit to each situation.

VM: We have taken into account sleek design and colour options for these units to ensure that the consumer can really tailor these units to their surroundings. The Slimcool and Slimcool filter feature colour-changeable side panels that are even more desirable in climates where offices and homes regularly change colour schemes.

MC: We have a long experience in customised solutions, therefore we are quite flexible when it comes to dimensions. Our main challenge is beauty. We want our coolers to be an ornament, an embellishment for houses. We had famous designers work on our products, as we strongly believe in combining optimum performance with a great look.

FD: Yes, it did. Delivering compact dimensions without sacrificing performance has been a challenging task for our R&D. However, the result has been very satisfactory. We can claim that H2OMY is the smallest and best performing water cooler product of its kind.

RB: The design has always been a key factor in the domestic market and for this reason we developed different solutions for table top dispensers. The colours are also important and thus we decided to offer a wide range of choices to fit all modern kitchens. We created a dispenser with compact dimensions with the possibility to have all accessories, such as filters and CO2 bottles, integrated in the machine in order to use as little space as possible.

GT: At Zerica, we listen carefully to our customers. We innovate continuously and relish any design challenge. Our U40 model under-sink cooler is still the smallest in the world at just 34.5 x 19.5 x 29cm and our Futura model cooler, which has won several design awards for its appearance, is Still the smallest and most versatile mains-fed machine on the market. Zerica’s products are entirely designed and manufactured in Italy and look good in any home. By the way, watch this space as we are about to unveil a stunning new product for this sector!

Home coolers seem to have a higher acceptance rate in some countries than in others. Why do you think that is?

MC: There are different reasons and factors. In certain countries people are not crazy about sparkling water, for example. In others, they drink tap water as is, without filters. To me it has a lot to do with water culture. It is very important to make everyone understand that pollution can and must be reduced. Mains-fed water coolers protect the environment and are a responsible choice for our generation and for future generations as well. Some countries have a greener mentality, and it is our duty to spread such mentality and change the world for the better.

DS: People’s habits are different in each country. From our experience, the domestic water cooler sector is very well developed in Italy and Scandinavia. Of course sooner or later, people who are getting used to drinking water from a water cooler in their office, will decide to install a system also at home.

FD: Domestic consumers seem to prefer mains-fed water dispensers to bottled water coolers, but the quality of the water is an issue in some countries. In other markets, distributors are focused on the office segment and don’t look for new and different opportunities.

GT: Historical reasons to do with price, availability and reliability of a clean water supply together with cultural differences make each country’s attitude and approach to home coolers different. Hopefully, Zerica’s design and manufacturing excellence will help to improve acceptance rates worldwide, starting in the 43 countries we already sell in!

TL: Some countries are more mature and this would be for different reasons but I think the true challenge is education of the market and the key is the offering. Everybody in the industry agrees that those solutions are mode practical, greener, smarter, etc. . . we need to spread the message to the end-user’s and education will be the key to develop the solution on a broader basis.

For many homes, under-sink systems make more sense than traditional water coolers. Have you taken this development into account and how do you see the market for under-sink systems developing over the next couple of years?

DS: As many kitchens are very small, more often the under-sink system is the solution. That’s why we introduced BluSoda Box into the market. The same compact size and performance as BluSoda countertop is also offered in the undercounter version, which can be housed discreetly and practically inside either a kitchen cupboard or office cabinet.

A smart, space-saving solution where only the delivery point is visible, leaving you the freedom to choose the most suitable supply water tap to suit their environment. Blupura will soon present a ‘Smart Tap’ that will revolutionise the residential market.

GT: We have been producing under-sink systems for years and absolutely believe in this market, which we envisage will grow. As technology in the kitchen advances and items such as capsule coffee machines and advanced ovens become the norm, we expect under-sink water systems will be installed as standard.

RB: We know that under-counter units could be the best solution in many houses, due to the small dimensions of the kitchens. If used with a tap that can manage sanitary and microfiltered water, the space will not be a real issue. Under-sink systems currently have the highest growth rate in the segment.

With some refrigerator manufacturers offering built-in water dispensers and the purchase of small-pack bottled water increasing in many markets, is it time to for distributors to change consumer perception and make the cooler as desirable as a capsule coffee machine?

DS: Yes, it is. One day, in every kitchen, next to the coffee machine there will be the water dispenser. Most fridges already feature a water dispenser, but the water quality is absolutely not acceptable.

We cannot forget that drinking coffee is a culture, consequently also the drinking of quality water needs to became a culture, and this is the hardest challenge for distributors. Educating people to drink tap water and to save the environment is the first step to create interest. Very soon the demand for water coolers will match that of coffee machines. They are complementary products and this explains why there is so much interest in the water cooler industry from coffee companies.

VM: We believe it is vital to improve the drinking water experience from a cooler. Hygiene, ergonomics, style and interaction between the cooler and the consumer are all areas Ebac focuses on when designing a cooler. We recently set up a market research test where we placed an F-Max alongside a competitor cooler and just filmed what happened. Over 80% of the people who used one of the coolers chose the F-Max. This demonstrated to us that customers want choice and would be prepared to pay for a better cooler that offers a better drinking water experience.

MC: We offer built-in water systems, kitchen equipment, which represent a very good solution for kitchens. We want our coolers to look desirable, hence our work on design. Some of our coolers resemble coffee machines, as the household sector seems to be very interested in this kind of look.  We are actively promoting the new, more attractive image of our coolers, through specific marketing.

GT: Absolutely yes! One day we hope to see a water cooler in every household and certainly as a standard part of the kitchen in every new build home.

To the increasing number of sustainability–conscious customers, water coolers offer a much more ecological alternative to bottled water. Whether you need counter-top or under-sink, with or without sparkling water and even with hot water, Zerica has a solution for any requirement.

FD: Consumer perception is already changing and the white goods industry is looking at these kind of products – therefore it is likely that they will follow the same development path of capsule coffee machines. 

What are distributors asking you for in terms of technology and design when requesting coolers suitable for the residential market?

FD: Distributors look for reliable, high performing and compact products. In addition to these characteristics, table top models need to catch people’s eyes bringing a touch of style to the area in which they are installed.

TL: Our distributors ask for nice-looking coolers able to seduce families, that are compact and easy to use.

VM: Ebac invests a lot of resource in researching markets. We want to understand what customers will value, and just as important what they don’t value. This enables us to design better products, products that customers want to buy rather products we have to sell. Its an important distinction and its a constant journey. New technology plays a key role in this process. We see our role as leading the market in new innovations, new technologies and giving our customers better products and marketing advantages over their competitors.

MC: Distributors request dry cooling over an ice bank, which is the best solution for the residential market. In general, distributors ask for small dimensions, competitive prices, a nice look, easy installation and maintenance, high quality and compliance with the strictest regulations on safety and hygiene. It is a demanding market, and we are happy to meet all requirements because we care for families and users.

DS: They mostly ask for easy installation and easy maintenance. Our BluSoda units have both of these features. Dry cooling technology allows a distributor to connect and disconnect the unit in less than 10 minutes. A maintenance engineer has to take off only five screws to have full access to the inside of the system. Isn’t it easy?

RB: Ease of use, nice design and reliability; these are the key elements that all distributors ask for. We offer many options that go from hot water to sanitisation with ozone, allowing the distributor to always meet end user requirements.

GT: Some things never change. Our distributors have been asking for well designed, reliable, high performance machines made from quality materials since 1930! For the residential market, unit size and near silent operation are key.

Where do you see the importance of home coolers in the future?

FD: The domestic market offers great opportunities, in Europe there are over 200,000 families and therefore potential users. In some countries the market has just started to develop, in others it is yet to be discovered.

RB: We see a very big space for growth all over Europe, but we are also monitoring the situation in overseas markets where there is a rising interest in our solutions.

VM: Whilst the domestic market in Europe has not developed, Ebac operates in a global marketplace. We are currently working on a number of projects outside of Europe where home coolers are an important part of the offering to consumers. So we see home coolers playing an ever increasing part of our coolers range and our cooler development strategy.

TL: This will be a significantly growing market in the coming years, though there are still many rivers to cross to establish a strong residential market. That’s why we are looking for distributors throughout Europe to build a long term relationship and provide them with all the relevant technical background to develop a profitable business within the residential sector.

DS: The domestic sector is the widest opportunity in our industry. People are getting used to water coolers by using them in their offices or in public spaces. Some of them are also used to buying water from outdoor water vending fountains and bringing fresh water home. Sooner or later they’ll get tired of refilling their bottles outside and would like to have a small system installed in their kitchen.