The winner of ECMA Carton of the Year 2007 is Aug. Heinrigs Druck + Verpackung, a German company with 175 years of experience of manufacturing folded boxes. The company focuses on confectionery, cosmetics and pharmaceuticals packaging. The prize was awarded for a chocolate package manufactured for CCC Confiserie Coppeneur et Compagnon. The material used for the carton is Stora Enso Tamwhite board. "The carton is designed to surprise the person who opens it. Two ends of the box slide apart and reveal the chocolates. The opened carton turns into a small display table giving an impression of a Japanese tea ceremony. Initially, we had just a small prototype of the function, and the final, sophisticated design was developed in close cooperation between Coppeneur and us," says Aug. Heinrigs General Manager Hans-Günther Heinrigs. "The market for premium chocolates has been very good in the past two years, which has helped us establish Coppeneur as a leading chocolate brand for gourmets. We work in close cooperation with specialist retailers, who are very important partners for us. They must be fully convinced and enthusiastic about our chocolates as, ultimately, they sell the products to consumers," says Georg Bernardini, one of the company owners. Coppeneur chocolates are sold by specialist stores for confectionery, wine, tea and pastry and they can also be found in major department stores throughout Germany. The Collection Coppeneur was relaunched on the market last year with the new package, and this year the range is being expanded with the launch of a new liqueur chocolate assortment. "Thanks to the new package design, we can quickly change the content in production. This functionality is perfectly combined with the impressive display of the chocolates," says Bernardini. Taint and odour neutrality was the primary quality requirement for the board material, together with a smooth surface for elaborate printing and the stiffness needed for the table function. The Tamwhite folding boxboard offered the right combination of board properties to support the desired product image: Purity, smoothness and elegance.

Their easy location and ability to provide high quality, good tasting water, while saving on fridge space, continue to make bottled water coolers an appealing proposition. Bottled cooler manufacturers round up the latest trends in functional and aesthetic design by sharing their newest products and developments with cooler innovation Deputy Editor Medina Bailey. How would you describe the state of the bottled water cooler market at the moment? Ebac Business Development Manager David Boddy (DB): “Statistics show that the market is slowing in terms of unit sales. That’s not to say that there isn’t a market for coolers – many people are switching to plumbed in units instead. The POU market has grown by 23% this year as more people are recognising the health and environmental benefits of having a mains connected supply. There is no delivery, storage or manual handling of heavy bottles, the number of delivery lorries on the roads is reduced and injuries caused by lifting the heavy bottles are eradicated. With new cooler designs and smaller bottle sizes, the small office and domestic markets could be very lucrative.” Zerica Commercial and Marketing Area Director Antonio Zerilli (AZ): “It’s a well established market that is split into two parts: the first one sees customers looking for the lowest possible price and the second one sees them searching for construction quality and hygiene law conformity.” Cosmetal Marketing Federica Diotallevi (FD): “It depends on the market. In some Western European countries the market is mature and its growth rate is slowing, but in Eastern Europe it is still growing and bringing about new and interesting opportunities.” Oasis Senior Sales and Marketing Manager Willie McCaskill (WM): “Overall, business is very healthy. However, some more mature markets have slowed down considerably, especially the UK. The poor weather and increase in POU have contributed to this.” Electrotemp President Andrei Yui (AY): “The market is still expanding in Europe and remains constant in the US. People are very conscious of water quality and therefore prefer to drink either bottled or filtered water. For convenience, many are still buying coolers to chill their water. Our line of coolers is becoming more and more popular in the HOD market as it provides something different from those available at retail stores.” What benefits do bottled coolers offer? *DB*: “Bottled coolers are extremely convenient as they can be sited virtually anywhere. This means that they can be positioned in the centre of an office, or in areas of high user concentration. This increases convenience for the end user and maximises water consumption. POU coolers are a lot more restrictive and are rarely situated in the ideal end user location. Bottled coolers do not require installation, which is easier for the distributor and eliminates disruption for the end user. “Drinking more water can dramatically improve concentration and therefore enhance output from the workforce. In this respect, both bottled and POU coolers are a sensible investment for any business. However, many end users now choose to only drink bottled water as they dislike the taste of tap water. POU coolers are seen by staff as the ‘cheaper option’ – that is if they can be seen at all and not sited in some distant kitchen or canteen. Investing in bottled water coolers is a clear indication of an employer who demands the best of and for their workforce. “And of course the distributor benefits from the increased revenue of bottled water sales.” AZ: “Essentially, easy installation because you don’t need a mains water connection, just an electrical plug.” WM: “The flexibility of movement is a major advantage for bottled coolers.” AY: “They provide a chilling mechanism for high quality water, precious fridge space isn’t used up and you can save money by buying bulk sized water bottles.” Do you think bottled cooler companies should also offer POU options? DB: “As a manufacturer of both types of coolers we have to say, yes. Clearly many of our distributor businesses are geared to delivering bottled water, so providing POU coolers could disrupt their business model. On the other hand, diversifying the fleet range by adding POU options maximises distribution opportunities and opens doors which would otherwise remain firmly closed. “POU is ideal for public institutions like schools and hospitals where cost is an overriding factor. However, cost control is an important aspect of any business, so demand for POU is unlikely to subside. The environmental impact of delivering bottles is also likely to be an increasing factor as businesses look to address their carbon footprints. Simply ignoring these fundamental economic issues is undoubtedly a risk. Ultimately however, individual companies need to make decisions based on their own attributes and the competitive environment in their target market. Whichever route they choose, Ebac can meet all of their needs with a tailored range of products and financial solutions.” AZ: “At Zerica we monitor market changes very closely and believe that POU is the future of this sector for various reasons. That is why we offer our customers POU units and inform them about their advantages.” FD: “It could be an opportunity, but POU tends to cannibalise the bottled cooler market.” WM: “Yes, nowadays most major accounts want a mixture of bottled and POU, so if companies don’t have both ranges in their product offering, they will lose business.” AY: “We know many companies that offer one or the other, or both. I’ve seen profitable businesses using any of these models.” What is your newest bottled cooler? DB: “The FMax. It represents a leap forward in water cooler technology with a number of advances which set it aside from all other products on the market today.” AZ: “We have a completely new series with three high quality units. Refresh Baby is an extremely compact table cooler, Refresh B is a professional unit that meets the legal requirements of HACCP for dispensing cold water in hot climates, and Acqua Break has an elegant, modern design and dispenses hot water up to 95°C.” FD: “The Avant HWG, which offers hot, cold and sparkling water from one machine.” WM: “We are currently completing the design of our new bottled cooler range, which will use the RR Cooling System, and environmentally beneficial Sanitisation Procedure, which eliminates landfill site wastage.” AY: “Our Vail Elite and Colorado Springs (CS) Elite self sterilising coolers.” What are its main features and benefits? DB: “Three dispense levers tempt the end user with cold, ambient and hot water options. Offering greater choice widens the appeal and drives increased water consumption throughout the year, not just in the hot summer months. Also, the higher burst rate results in more water being dispensed faster, again increasing the potential to sell more. “The FMax incorporates Ebac’s patented Cassette WaterTrail technology, which replaces all parts that come into contact with water, offering 100% effective sanitisation. This can be changed on customers’ premises in seconds, resulting in more sanitisations in the same amount of time, so it’s both time and money saving. “With a worldwide focus on reducing carbon footprints, we have come up with the awardwinning vacuum insulated hot tank, which reduces energy consumption by over 30 times and therefore reduces the end user’s energy bill – these are great selling points for distributors.” AZ: “The Refresh Baby and Refresh B models are fully constructed in stainless steel, including their tanks, which are angle-free for easy, hygienic cleaning. Their water refrigeration circuits have been designed to avoid water stagnation or bad odours, while all of the components in contact with liquids are EEC certified. The units are suitable for cooling and dispensing any liquid type, including fruit juice, milk and wine. “Complete with a stainless steel cabinet and acrylonitrile butadiene styrene (ABS) plastic insert, the Acqua Break has an electronic regulator for dispensing water at hot and cold temperatures. Each model comes with a five year quality guarantee and we have even heard reports that our bottled units are still in perfect working order after 25 years!” FD: “Avant water coolers are characterised by: SST (self sanitising technology), which inhibits bacterial proliferation inside the cooler and guarantees maximum safety levels for users, no matter what the usage environment. Patented UV system – used in the UV model, this is cutting edge, anti-bacterial technology that protects the dispensing area against contamination from external sources. Safety - maintenance and cleaning operations can be carried out extremely easily and quickly thanks to the removable covering, which gives easy access to the inside of the unit. “These features ensure that the cooler offers savings in terms of time and money, as there is no need to sanitise it frequently. Furthermore, it merges traditional bottle coolers, which usually have only two options, in one machine as the Avant HWG offers hot, cold and sparkling water.” WM: “ We will be announcing more details at its launch, but we will include some very interesting new features as Oasis has continued to do for almost a century now.” AY: “Record quantities of very cold water and steaming hot water, a fast water flow, a completely automatic sterilising system, and a five year guarantee for the cold controls and compressor starter.” *Which feature are distributors and customers asking for at the moment? * DB: “The biggest factor affecting a lot of foreign markets and coolers is sanitisation. For years the market has been flooded with cheap coolers which are poor quality and difficult to sanitise properly. This, coupled with unreal expectations about the number of sanitisations that a cooler service person can perform each day, has resulted in some companies being unable to adhere to the EBWA policy of three monthly sanitisations for coolers. So people need straightforward simple sanitisation methods that aren’t costly or time consuming. “Ebac believes that the only 100% effective method of sanitisation is renewal. With Ebac’s patented WaterTrail, every part of the cooler that comes into contact with drinking water is completely replaced and the old one disposed of. Not ones to rest on our laurels, the WaterTrail is now in the third generation – the Cassette WaterTrail. This is now so simple to change that it takes less than 30 seconds and can be replaced on customers’ premises, meaning time and money savings for distributors.” AZ: “Some distributors and customers just want low prices, so the cost factor overrides any other features. Others are attracted to quality and the safety, hygiene and calibre of the water dispensed. It is this type of customer that will use our machines for the cooling and dispensing of other beverages, such as fruit juice. This is not possible with lower cost machines as they are not covered by the necessary certifications.” FD: “Customers are asking for ease of use, reliability and cleanliness. Distributors are asking for easy to sanitise, reliable and competitive products. Price is also an important aspect.” WM: “The two key areas are ease of sanitisation and environmental friendliness. With the Oasis range we feel that we are unique in our ability to achieve this.” AY: “Many people complain about the small amounts of cold and hot water standard coolers produce. They’re looking for reliable coolers with high volumes of both cold and hot water, as well as inexpensive ways of sterilising and servicing them. These are features that our coolers provide.” How would you describe the look of your newest cooler? DB: “The FMax combines market leading features and performance with solid, timeless good looks. Form definitely follows function. There are no details or adornments that do not enhance the function or user experience. Sound ergonomics influence the position of the dispense levers and the duplex nozzle, which itself is designed to ensure that the user cannot touch and contaminate the water supply. Details often overlooked on other coolers, such as the handle and wheels, allow the product to be sited and relocated with ease. Plastic often gets a bad press but for Ebac, ABS is the material of choice, due to its superlative surface quality, colourfastness and lustre. Oh and as well as looking good, it is extremely tough and doesn’t rust. “At Ebac we understand that aesthetics are also extremely important, as an attractive looking product is likely to be more appealing to the end user and therefore drive increased consumption. We appreciate that every business is unique, corporate identity is king and that not everyone wants a black cooler. The FMax is available in 16 colour combinations with removable side panels that can simply be lifted off and swapped for a different colour, to refresh the appearance, or act as a replacement in the unlikely event that they become damaged. Also, if a customer has very specific requirements, we can even create bespoke panels to suit.” AZ: “The new series of bottled coolers satisfies various aesthetic requirements. With Acqua Break, we’ve introduced a modern, slimline design with strong features and personality thanks to the stainless steel and polished black insert. Stainless steel also plays a major part in the designs of the Refresh B and Baby. The former has a practical and robust outer casing, while the latter can be totally personalised with digital prints to achieve a certain look or be used as a tool for advertising.” FD: “The Avant has an innovative look. It is slim, ergonomic and compliant with different environments.” WM: “The cooler will be very modern looking and, as always from Oasis, robust.” AY: “The Vail is tall and slender with an attractive appearance. It has a sleek, modern look, but also uses classic and elegant lines, ensuring that it will never go out of style.” Which kind of location would it suit? DB: “The FMax has a higher burst rate and larger cold water reservoir than other bottled coolers and is also supremely reliable and robust. As such it is ideally suited to locations where there are a lot of users and where water consumption is high. The FMax is perfect for all medium and large size offices and indeed any location where a POU cooler is not the users’ overriding priority. “With its ‘cut above’ good looks and stunning choice of colour options, the FMax looks great anywhere. The sleek black and silver combination is great for modern offices, while cream works well in more traditional surroundings. Adding brightly coloured red, blue or green side panels creates high impact, draws more attention to the cooler and can increase consumption, especially in places like gyms or sports centres. “The FMax is a truly versatile cooler that can be used in many different locations and since it features a handle and wheels, if you don’t like where it is, you can just move it!” AZ: “The new series can suit any location type. Acqua Break is ideal for contemporary settings, Refresh B is suitable for office spaces where hot water is required as it has a sturdy construction, as well as where cold water is needed as it works in hot climates, and Refresh Baby is so compact that it can be placed anywhere.” FD: “Offices, schools, factories, waiting roo, shops and public spaces.” WM: “Both domestic and commercial.” AY: “The Vail cooler has an upmarket look that would complement any modern kitchen or office layout. The CS has an elegant contoured design that also makes it suitable for kitchens and offices. However, its flexible and durable blowmoulded body also make it ideal for areas where rough handling might occur, such as factories and construction sites.” Do you think a cooler should stand out in a room or blend into the background? DB: “Bottled water coolers should be sited where they are the most easily accessible by the majority of the users. To drive water consumption, the cooler needs to be seen and not blend into the background. This is not to say that every office should have a bright red cooler, but that the use of colour can help achieve the desired impact. Combining traditional black or cream with contrasting colours, as on the FMax, is a perfect example. “With POU coolers there isn’t always the choice of positioning – they have to be placed where there is access to the mains water supply, therefore they may be hidden away in a separate kitchen or canteen, which isn’t as easily accessible. The FMax is a truly versatile cooler that can be situated anywhere. “Many customers have asked us about customisation, so we have created coolers for companies and brands such as the Coca-Cola group, Vodafone and Powwow, to suit their corporate branding. We’ve even gone as far as to put a miniature TV screen onto coolers for a customer.” AZ: “Again, there are plenty of installation possibilities that can be tailored to the customer’s needs. The new series can meet various design requirements to create the right ambience.” FD: “They need a wall behind them to hide the back and plug them in, but this is common to all coolers.” WM: “A cooler should be a catalyst to encourage people to drink more water, so we believe that it should be iconic.” AY: “We’ve designed our coolers so that they blend in with the room. They effectively meld in with the rest of the appliances in a kitchen. People appreciate the simple, but classic lines of our coolers for this very reason.” Are cooler colours and shapes influenced by trends in décor, furniture and even fashion? DB: “It is fair to say that designers take their inspiration from all sorts of areas, although it seems unlikely that our designers at Ebac are influenced by the latest clothing fashions. Our coolers are designed to perform and there are no details or adornments that do not enhance the function or user experience.” AZ: “In a way, yes, but cooler trends don’t change as quickly as fashion clothing trends!” FD: “No, but manufacturers influence each other. When a manufacturer comes out with a popular, successful cooler, others tend to copy it.” WM: “Yes, however care must be taken so that as fashions change, the cooler design will adapt and not look dated.” AY: “Yes, definitely. What was fashionable 30 years ago is not today. However, there are some looks that stay classic, such as men’s suits. Our coolers are designed to complement modern kitchens, but maintain a longterm look, so that their appearance will have the maximum lifespan possible. They’ll still look good 20 years from now.” What kind of designs do you think will be popular in the future? DB: “The change from bulky boxes to sleek designs with clean, crisp lines that are modern and ‘friendly’ looking is likely to continue.” AZ: “Stainless steel designs with different coloured ABS plastic inserts for the home and office.” FD: “Square-shaped models in silver and black colours.” WM: “In time, as we featured a couple of years ago, the use of LCD technology and increased consumer interactivity will become more apparent.” AY: “What’s fashionable fluctuates wildly, so I am unable to predict trends like this. Our focus is on developing coolers that will look good no matter what’s in fashion.” Which factors do you have to consider when deciding which materials to use? DB: “Coolers come under a lot of strain from the heavy bottles on top and continual usage so it’s important that the materials used to make them are hardwearing and robust. Distributors don’t want the cost and inconvenience of fixing or replacing broken coolers, so they must be able to withstand heavy usage throughout the life of the cooler. Our coolers are made from ABS polymer, so they are sturdy and safeguard against rust if spillages around the cooler occur. “We are certain of the longevity and durability of our coolers, so we are prepared to provide a substantial warranty should anything occur.” AZ: “We select materials according to their properties and how they will work with the finished product.” FD: “Hygiene, robustness, resilience and cleanability.” WM: “Cost is important, as is flexibility in manufacturing. However, the quality and integrity of the materials used for all parts is vital, especially the ones that come into contact with water.” AY: “All plastics in contact with water must be food grade and not transfer plastic flavours to the water. The steel needs to be very high grade in order for the cold and hot tanks to be properly formed and the external materials must be durable, so that the shell matches the 25 year lifespan of the cooler’s internal components.” Do you carry out market research among your customers? DB: “At Ebac we take on board customer feedback from any source about any aspect of the company – not just our coolers. It could come from a customer who’s called our contact centre about a domestic cooler or a distributor about the finance packages we offer. We will always listen and investigate any suggestions. “We understand our customers as well as we understand ourselves. We know from listening to them what they want and this enables us to continually produce ground breaking products that deliver benefits to the distributor as well as the end user. “It was in reaction to customer feedback that we adapted our SlimCool domestic cooler from a bottled water cooler to one that can filter ordinary tap water, making it more convenient and economical for the user. AZ: “Yes, absolutely. Retaining a constant dialogue between the company and our customers is a must for Zerica. It enables our development department to progress in the same direction as our customers’ requests.” FD: “Of course, customers are the most important source for developing successful products.” AY: “For sure, we listen closely to our customers. And they not only tell us what they want as distributors, but also reveal to us what their customers are looking for. And we design coolers to match their needs.” How do you market your coolers? Do you focus on technical features or the way they look? DB: “The philosophy at Ebac is to produce innovative products that provide clear benefits and add value to both the product and to our customers’ businesses. In our marketing communications we tend to focus on these aspects, as they set us aside from our competitors. No one else boasts 100% sanitisation from complete replacement of all water contact parts. No one else boasts a hot tank that is 30 times more energy efficient and saves the end user money. “At Ebac we focus intently on getting the aesthetic design of our coolers just right, but tend not to shout about it in our marketing as we prefer to let our customers decide. With the FMax selling at a rate of one every four minutes, we think they quite like it.” AZ: “The Zerica series was created by paying a lot of attention to technical aspects, in order to ensure that our customers receive the best manufacturing features and high performance levels, so these elements are focused on.” WM: “We usually focus more on technical issues, as they are important to most distributors.” AY: “Looks are a major factor in the final purchasing decision, but the unique features of our coolers are the key factors involved in our sales success.” Which is your best selling cooler? Why do you think it is so popular? DB: “Since its launch in late 2000, the EMax has been our best selling cooler with unit sales in excess of half a million, making it Europe’s biggest selling water cooler. The EMax is supremely reliable and features WaterTrail technology, making it very low maintenance and keeping lifetime ownership costs to a minimum. “In recent months we have experienced phenomenal success with the FMax – it’s been an instant hit with distributors and end users alike and increased our customer base by a massive 20%. Why is it so popular? Because in the words of our current, highly successful advertising campaign, it is ‘Probably The Best Watercooler In The World.’” AZ: “The Refresh Baby because it answers a lot of requests from the international marketplace: * compact and easy to place anywhere * stainless steel construction * suitable for beverages, as well as water * constructed without any fittings or plastic parts that come into contact with liquids * can be 100% personalised * has a five year guarantee.” FD: “The Avant, because it tops the market in terms of hygiene, technology, design and ergonomics.” WM: “The Oasis RR Platform is the most successful cooler ever produced globally due to its reliability and ease of sanitisation.” AY: “Both our Vail and CS coolers are best sellers. Because our products are unconventional they give our distributors a powerful advantage over their competitors, as they are able to sell coolers with proprietary features that are unavailable elsewhere. As a result they constantly outsell other brands. It’s like selling iPods when your competition is still selling cassette players.” Are you developing any new bottled coolers at the moment? DB: “Ebac’s technical and design team are focused not only on developing the next generation of coolers, but on the continual improvement of our existing product range to ensure that Ebac remains at the forefront of the cooler market.” AY: “Yes, we’re working on several projects. You’ll have to wait until we’re ready to launch them to find out more...” What does the future hold for the bottled cooler industry? DB: “Current cooler technology is heavily influenced by the enormous 19 litre bottles, millions of which are in use worldwide. Coolers must be designed with this in mind – taking account of their size and weight, so change is limited until these do.” Ebac Technical Director Phillip Walton: “I think the future of coolers will be geared towards simpler sanitisation to enable companies in countries who don’t sanitise coolers in line with the EBWA policy of three-monthly sanitisations to catch up with those who currently do. If these companies were to use Ebac coolers with our patented WaterTrail technology, there would be no question as to the effectiveness of their sanitisation methods, and ease of changing means the three monthly policy is highly attainable.” WM: “The industry is still very young and needs to develop, not only in the design of coolers, but also with regards to the collective promotion of their benefits – in a domestic sense, as well as in a commercial environment. It must also concentrate on unique designs and added value features.” AY: “As pollution continues to compound its effects on the environment and people become more and more sensitised to this issue, the water business will continue to prosper. Everything indicates that this industry will continue to grow in both importance and sales volume terms.”

Membrane device configurations To be effective, membrane polymers must be packaged into aconfiguration commonly called a “device”, “module” or “element”. Themost common element configurations are: • Plate and Frame • Capillary Fibre • Tubular • Spiral Wound Plate and frame This element incorporates sheet membrane stretched over a frame toseparate the layers and facilitate collection of the permeate, which isdirected to a centre tube. Capillary (hollow fibre) These elements are similar to the tubular element in design, butsmaller in diameter. They are usually unsupported membrane polymersrequiring rigid support on each end, provided by an epoxy “potting” ofa bundle of the fibres inside a cylinder. Feed flow is either down theinterior of the fibre or around the outside of the fibre. Tubular Manufactured from ceramic, carbon, stainless steel or a number ofthermoplastics, these tubes have inside diameters ranging from aquarter of an inch up to approximately 1 inch (6 to 25mm). The membraneis typically coated on the inside of the tube and the feed solutionflows through the interior (lumen) from one end to the other, with thepermeate passing through the wall to be collected on the outside of thetube. Spiral wound This element is constructed from an envelope of sheet membrane woundaround a permeate tube that is perforated to allow collection of thepermeate. Water is purified by passing through one layer of themembrane and flowing into the permeate tube. It is by far the mostcommon configuration in water purification applications. From the perspective of cost and convenience, it is beneficial to packas much membrane area into as small a volume as possible. This is knownas “packing density”. The greater the packing density, the greater themembrane area enclosed in a certain sized device, and generally thelower the cost of the membrane element. The downside of the highpacking density membrane elements is their greater propensity forfouling. The table above summarises this data. Element configuration Packing Density* Fouling Resistance* Tubular low high Capillary Fibre medium high Spiral Wound low moderate Plate and Frame low high * *** Membrane area per unit volume element * Tolerance to suspended solids *Process Suspended solids, micro-organisms and dissolved organic contaminantsare effectively removed by the “sieving” process; that is, contaminantstoo large to pass through the membrane pores remain in what becomes theconcentrate stream. For dissolved inorganic (ionic) contaminant removal, the membranetechnologies of nanofiltration and reverse osmosis must be employed,and since the pores of the membranes, although smaller than for themicrofiltration and ultrafiltration membranes, are not small enough tophysically sieve out these contaminants, a different mechanism applieshere. There is lack of agreement among the experts as to the exact mechanismof this rejection; however, it is known that multivalent salts arerejected to a higher degree than monovalent salts. This characteristicis exploited with nanofiltration membranes which exhibit overall lowersalts rejection than reverse osmosis membranes, but remove multivalentsalts to a much higher degree than monovalent salts. These membranesare also known as “softening” membranes because of their ability toremove the divalent hardness ions of calcium and magnesium, with littleeffect on monovalent ions such as sodium. The “thin film composite” reverse osmosis polymers that are now on themarket have such high salts rejection characteristics, that bothmonovalent and multivalent salts are rejected to almost the same degree. “Flux“ is a fundamental characteristic of all membranes, defined as thepermeate rate through a given area of membrane at a specifictemperature and pressure. “Recovery” is defined as that percentage ofthe feed flow rate that passes through the membrane and becomespermeate. Osmotic pressure For the process of nanofiltration and reverse osmosis (and to a lesserextent, ultrafiltration), which deal with dissolved materials, aproperty of the solution known as “osmotic pressure” usually becomesthe limiting factor in recovery calculations. Osmotic pressure is acharacteristic of all ionic solutions, and is loosely defined as theresistance of the solvent portion of the solution to passage throughthe membrane. Osmotic pressure is a function of both the particularsolute, as well as its concentration. A specific test is almost alwaysrequired to accurately determine osmotic pressure. As recovery is increased (typically through the use of a flowrestrictor or concentrate valve), with the resulting decrease inconcentrate flow, the concentration of solute in the concentrate streamincreases, resulting in increased osmotic pressure. Fouling The vast majority of membrane element device and system failures occuras the result of membrane fouling. This fouling is usually the resultof one or more of the following mechanisms: • Suspended solids in the feed stream resulting from improper feed water filtration. • Precipitation of insoluble salts or oxides resulting from concentration effects within the membrane device. • Biofilm resulting from microbiological activity. These mechanisms cause the membrane surface to become coated withfouling materials that build up in layers. As the layer thicknessincreases, the flow rate across the membrane surface and immediatelyadjacent to it decreases, thereby encouraging more settling ofsuspended solids and increasing the fouling layer thickness – leadingto a vicious circle. With nanofiltration and reverse osmosis membranes, which reject ioniccontaminants, fouling usually creates a phenomenon known as“concentration polarisation”. The fouling layers inhibit the freemovement of the feed stream away from the membrane surface, and assalts are rejected from the membrane, their concentration at thesurface is higher than in the bulk solution (that portion above thefouling layer). Since ionic rejection is always a percentage of the salts’concentration at the surface of the membrane, the permeate qualitydecreases as a result of concentration polarisation. This phenomenonmay actually indicate the presence of foulants before a reduction inpermeate rate is detected. The increased salts’ concentration at themembrane surface also promotes precipitation of the salts whosesolubility limit is exceeded as a result of this phenomenon. * Recovery* The advantage of operating systems at high recoveries is that thevolume of concentrate is small and the flow rate of the feed pump issmaller. The potential disadvantages are numerous: • Higher concentration of contaminants can result in precipitation and greater propensity for fouling. • In nanofiltration and reverse osmosis applications, the concentratedsalts will result in higher osmotic pressure, requiring a higherpressure pump and a more pressure resistant system. • As higher recoveries reduce the quantity of concentrate to bedischarged, the higher concentration of this concentrate stream canitself present discharge problems. In an ideal RO/NF system, all of the ionic contaminants to be removedare separated by the membrane and exit in the concentrate stream. Butin reality, no membrane is perfect in that it rejects 100% of thesolute on the feed side; this solute leakage is known as “passage”.Expressed as “percent passage”, the actual quantity of solute whichpasses through the membrane is a function of the concentration ofsolute on the feed side. With reverse osmosis and nanofiltration, the concentration of salts onthe feed side is increased, and therefore, the actual quantity of saltspassing through the membrane also increases. Many applications demand that, in addition to a minimum concentratevolume, the permeate quality be high enough for reuse. The “catch 22”predicament of permeate quality decreasing as recovery is increased canimpose design limitations. Additionally, the increased osmotic pressureresulting as recovery is increased also imposes a design limit.Generally, pumping pressures in excess of 1000psi (68 bar) areimpractical for most applications. Conclusion The design of an effective, economical residential drinking watersystem requires understanding of water chemistry, comprehension of theappropriate treatment technologies and the ability to assemble theminto the optimum total treatment configuration. Hopefully, this articlehas provided some insights into these.

Located in a thriving industrial zone close to the Italian city of Palermo, Zerica has been in business for over 75 years. cooler innovation Deputy Editor Medina Bailey soaked up some Sicilian sun to find out more about the family water cooler firm. The heat of the late morning sun turns the temperature gauge up a notch. As we leave the bustle of Palermo airport to drive to Zerica’s headquarters in Termini Imerese, the sparkling Tyrrhenian sea looks cool and inviting as it tempts the locals, holidaying north Italians and tourists who have flocked to the soft, golden sands to take a reviving dip. The mountains on the horizon dotted with fragrant pine trees and choral cicadas stand tall and proud, giving the landscape a jagged, dramatic outline. My host tells me that Palermo is a tourist’s gem laced with churches, cathedrals and mosques that are as rich in historical significance as they are in lavish decoration, as well as eclectic architecture that hints at the influential centuries of rule under the Arabs, Normans and Spaniards, to name but a few. There’s so much to try - from the deliciously fresh seafood, to refreshing lemon sorbet and bright green pistachio cake, not to mention the delightfully intense limoncello liqueur that goes to the head quicker than the midday sun. But trips to the beach, the mountains and Palermo’s vibrant old town are reserved for another day. We pull up to Zerica’s base, which is situated away from the distractions of the city in an industrial district, alongside other companies such as Fiat. Established back in 1931 when Marco Zerilli started manufacturing water cooling units, the bottled and POU cooler firm has remained in the family ever since. Three generations on and Marco’s grandchildren, Marco and Antonio, are at the helm with the aim of continuing the Zerilli family’s entrepreneurial and manufacturing traditions. * Interview* I am barely through the front door when I’m greeted by a reception committee assembled from Zerica’s sales and marketing team, who are on hand to provide an immensely warm and hospitable welcome. After a brief history of the area, it becomes clear that the company has firmly connected roots in Palermo and is fiercely proud of its heritage and way that it has naturally evolved over the years. “Our main philosophy is to produce products that really stand out in terms of quality, trustworthiness and performance,” explained Research and Development Area Director Marco. “To be able to do this, you need solid foundations, which we feel we have built up stone by stone. For us, our achievement comes in the individual steps that we take to produce results, because without taking these steps, we wouldn’t have been able to stay in the market for so long.” Many significant steps have been taken over the years, including in 1980 the name change from Zerilli to Zerica, which combines Marco and Antonio’s parents’ names and signifies the importance of the family working together. Antonio later revealed that the people of Palermo still refer to the company and its products as Zerilli, which is testimony to its long term prominence in the area. Change was also afoot 18 months ago when the firm decided to start producing coolers under the Zerica brand name, instead of solely manufacturing models for other companies. “This is enabling us to expand as we have a two pronged approach,” said Commercial and Marketing Area Director Antonio. “We still manufacture products for our customers as we used to, but now we also manufacture new units that carry our brand name, which we export to 27 countries all over the world.” Altering the commercial side of the business to promote the Zerica name and image provokes passion within the team, as does the revelation that every cooler component, apart from the faucets, compressors and condensers, are produced in house by 30 employees in the 10,000 m² factory area. “This means that we can carry out testing on new products for up to a year before market launch, which guarantees their quality, and can also track every cooler back to the exact individual who assembled it,” continued Antonio. This traceability that covers all of the potential 22,000 units produced every year aims to reassure customers about the quality of the final product that they receive, but for Zerica this element of trust has to work both ways. Before signing on the dotted line, the company has to be certain that its distributors are experienced within the cooler industry and not just out to make a quick buck. “Each unit is a business card,” explained Antonio, “so our distributors have to know what they are doing, otherwise Zerica’s image and brand name could be at stake.” Exporting the brand to countries further afield is no easy undertaking, but the company’s flagship technology, which renders Zerica coolers ideal for hotter climates, such as Tunisia, Egypt, Saudi Arabia, the Ivory Coast, Gabon and Kenya, has helped. Its High Performance Direct Chill (HPDC) system with a 1/5 plus HP compressor offers a three minute waiting time for chilled water when the cooler is first switched on. The cooling efficiency mechanism is installed in Zerica branded coolers, while the traditional Direct Chill System, which was first developed in 1980, is sold to other manufacturers. The technology is an example of how the company works to make improvements to existing products, as well as design new components from scratch. Whether it be to bring costs down, make energy savings, slim down machines into more compact versions or make filter replenishment as easy as printer cartridge replacement, changes are implemented to increase functionality and ensure that products will stand the test of time. According to Marco, when you consider that some Zerica units have been performing for over 25 years, the extra costs that might be incurred are a small price to pay in return for quality. “When you look at how the products have been made and what they offer, our prices are not that high. For example, if you take our units for the pub and bar industry - it’s like when you get married - these coolers will last forever.” He claims that not using third party companies and producing components in house, down to the external metal casing being manufactured with a 400 tonne hydraulic press, contributes to keeping costs lower anyway. Although in the past customers have wanted to part with as little cash as possible, the Zerica team believes that clients are now, first and foremost, demanding quality. “These are our ideal customers - the ones who have requirements,” continued Marco. “This is why we are not planning to expand our 22,000 a year output quantity, but will instead focus on quality.” Providing solutions to requests from countries with hot climates or individual companies that require customisation has led to the belief that no sectors or geographical locations should be out of Zerica’s reach. “Next, we’ll be looking to tap into areas as diverse as the US, India, Africa and Russia. After all, everyone drinks water,” said Antonio. This desire to achieve steady growth, as opposed to riding the peaks and troughs, still enables the company to move with the times. It is confident that POU will become the system of choice on Italian shores, but believes that it is likely to take time for the genre to become established as bottled water is inexpensive and seems to be retaining its popularity, despite government attempts to push tap water. “It is only a question of time,” said Marco. “POU is the better solution due to its reliability and environmental friendliness, but it will take a while for the mains connected culture to become the norm. We are pushing for change in this area - like a child, it’s going to grow.” As the visit comes to an end and the late afternoon sun still blazes hot outside, Zerica has left an overall impression of a relaxed, but dedicated company, with a unique sense of company culture and family oriented ethos. The tight knit team talks about the long term as though it is ready to embrace the future and constantly work to improve itself as well as its product range. “In Italy,” said Antonio, “we say that you give your family name to two things - your child when it is born and the things that you love.” In Zerica’s case, this saying couldn’t ring more true. **Good sport **Zerica’s sense of team spirit extends beyond the working week. It not only supports a local Sicilian football side, but also sponsors Team Amadeus X One’s Milanese motor cycle rider, Paolo Tessari, who sports the cooler company’s green logo on his bike and livery. **Product range **Water fountains * Refresh P - This top seller with HPDC comes complete with a 30 year anti-corrosion guarantee for its copper piping, has a cold water supply of 60 litres per hour and can operate at temperatures of up to 43°C. Refresh Pensile - The most compact water fountain available can be wall mounted at any height to ensure easy cleaning of the surrounding area and unlimited flexibility when installing in different environments, such as schools and hospitals. It offers a cold water capacity of 30 litres per hour. For the home * Premium Top - A strong performer since its unveiling at Avex and The Cooler Show earlier this year, this counter top unit is only 24cm wide, making it small enough for the most compact of kitchens. It dispenses chilled, ambient and sparkling water with a cold and carbonated capacity of up to 18 litres per hour. A multi-functional digital control panel gives the option to fill a glass or jug, adjusts the temperature and provides filter information, while an easy access front panel facilitates easy CO2 gas cylinder and filter replacement, with no technical assistance required. Refresh U - Zerica’s smallest under sink chiller, the U40 option, measures just 34.5x17.5x29cm, yet has a cold water capacity of 14 to 30 litres per hour. The best seller comes with standard connectors for quick installation to the mains water supply, a thermostat to regulate the chilled water between 5 and 13°C and an HPDC system with certain models to reduce refrigeration times and cut energy bills. For the bar and pub * G Plus 20 - This 30 litres per hour best seller for sparkling water has an accumulator tank and an ice chamber in stainless steel with extractable refrigeration coil and carbonator for easy maintenance and hygiene. Suitable for installing over or under counter, the machine can be placed away from the mains supply point as the water is re-circulated internally. It offers two separate access points for qualified technicians and non-specialists so that the unit can be opened in under a minute, if necessary. For the office * Premium - With a cold water capacity of 60 litres per hour, this free standing model has a slim, ergonomic design and small footprint. The HPDC system ensures that chilled water will be available to users only five minutes after the unit has been switched on. It has specific indicator fault lights to signify if there are any problems with mechanisms, such as the power supply and refrigeration circuit, as well as a dual monitoring and anti-leakage protection system. Bottled * Refresh B / Refresh Baby - This hygienic cooler is available in a standard and compact version. It has a highly polished stainless steel refrigeration chamber to minimise calcium deposits and provide maximum heat exchange efficiency and durability. Operating at external temperatures of up to 43°C, it can be used for various liquids, such as fruit juice and wine, and is available in different colour or customised promotion options. Its piping is curve and siphon-free to prevent water stagnation or bacterial build-up. Acqua Break - Dispensing cold, ambient and hot water up to 95°C, this robust cooler houses a polished stainless steel piping and refrigeration chamber for easy maintenance. Its integrated cup holder and LED control panel ensure that it is easy to use, as does its conveniently placed water dispensing nozzle with safety cut out feature to prevent accidental hot water dispensing. Cooler features and benefits Drink Quality * Only certified food contact materials are used for all components that come into contact with liquid. * This eliminates the possibility of contamination and allows for straightforward cleaning and maintenance. 2 to 5 years warranty All units are covered by the warranty, with the number of years dependent on the model type. A 30 year anti-corrosion guarantee is also offered for the copper pipes used within the HPDC systems. High Performance Direct Chill A three minute waiting time is required for chilled water after the cooler has been plugged in. It increases hygiene levels as stagnation and contamination risks are reduced and brings about energy savings of up to 70%. Sahara Clima A high power refrigeration system. Enables cooler to operate at external temperatures of up to 43°C. Easy Access Designed for easy inspection and maintenance. Provides ample space to allow for checking electrical components and installing water purification filters. Turbo Clean Exclusive technology that improves the heat exchange mechanism and hygiene levels in coolers with refrigeration tanks. It works by liquid entering the chamber via specially oriented entry points, creating a vortex around the walls. This increases the efficiency of the heat exchange and eliminates the possibility of stagnation.

Leaving the hazy sunshine and urban fog of the surrounding London streets behind them, visitors to AVEX and The Cooler Show in April had three early morning conferences to choose from, each focusing on a specific market sector. Water coolers - bottled Zenith International Research Manager Stuart Foxon presented an overview of the European cooler market. 2006 was a respectable year, characterised by a booming point of use (POU) sector that is driving growth, with the leading countries being the UK, France, Italy, Spain and Germany. The figures showed that a north/south split was evident as Italy, Spain, Portugal and Greece made good gains, while northern European countries struggled. Last year’s hot weather was good news, particularly for POU as it continued to take market share, proving that water provision is still in demand. But while hydration in the workplace is a key driver for growth, other opportunities such as domestic coolers have displayed limited movement. Leading firms have continued to buy up smaller operations – for example, Eden Springs acquired 15 companies in 2006 and 2007 in the UK, Denmark, Switzerland, the Netherlands and Germany. POU is restricting bottled growth, so the industry has to decide how it will respond to that challenge. “Combined bottled water and POU operators are best placed to meet the future needs of customers,” said Foxon. Angel Springs Managing Director John Dundon said that, although bottled coolers are declining year on year, they still bring in good profitability, while POU only operations yield limited organic growth. He argued that the industry now has the opportunity to present itself as a total service provider that gives the customer freedom of choice by selling two products – bottled and POU. “Companies should consult with their customers as often as possible to meet their demands and give them the option to switch from bottled to POU. By offering two products without a biased approach, customers will feel that their needs are being best served by one cooler company. “Although the bottled market has suffered as a result of POU, companies have lost customers through their own service failings and not because of their competitors. They now need to reconnect with market growth by investing in sales and marketing, ensuring that high levels of service are maintained. The future rests with the companies that offer two products - the total service provider.” During the question and answer session, Foxon and Dundon agreed that the environmental challenge must be tackled. Foxon believed that reducing carbon footprints is a major selling point for companies, while Dundon said it is the question that is most asked by his customers. Nestlé Waters Powwow Sales and Marketing Director Martin Thorpe began by saying that the UK cooler market is a much harder place to trade than it was three years ago. Companies have taken their eyes off organic growth, which has resulted in a slow down after the acquisitions frenzy of recent years. He pointed out that stealing competitors’ shares instead of targeting new users isn’t sustainable in the long term. He believed that the emergence of POU is a fantastic opportunity that must be embraced by the industry, citing service, differentiation and innovation as key drivers. Although companies invest time and money in listening to their customers and reacting to them when problems arise, they rarely ask what customers want. What’s more, they are not experienced enough to elicit what is on their minds and ascertain what they need. When it comes to sanitisation, companies should present robust scientific research that will set the guidelines, instead of hoping that the status quo will continue or waiting for someone else to impose standards. The same could be said for the environmental issue, which requires companies to understand carbon emissions and engage with their customers using the appropriate language and media: “Good market research should be translated into strong product offerings, enabling companies to take responsibility for their own futures.” Ebac Business Development Manager Dan Kempin examined the emergence of the home cooler. The company had incorporated its WaterTrail technology into its Eddy and SlimCool models, which gives users an easy way of maintaining and servicing their coolers without using chemicals. Custom made panels have also been introduced so that the coolers will blend into any décor, along with a compact design and an in-built Brita Maxtra filter. The firm is continuing to innovate by developing a POU machine that will fit into the home and by conducting trials with the UK supermarket Asda to provide coolers in store. In the question and answer session, Thorpe said that the culture of having a cooler in the home has to be established before the market will take off. Kempin agreed that it is a slow burner and not just a case of bolting on an additional service. “Cooler companies have to think about it differently,” he said. Eden Springs Commercial Director Graeme Carruthers said that customer satisfaction is vital to growth. He believes that companies shouldn’t make excuses if they make mistakes, as there is no excuse for disappointing customers. He pointed out that the presentations had found good common ground, so companies should work together to promote best practice. This could mean saying no to certain clients if service levels are not being met. “Customers want satisfaction through value for money and flexibility, so companies should respond with marketing that is fit for purpose,” he said. Injecting some audience participation into his presentation, Water For Work & Home Managing Director Ben McGannan’s water quiz proved how we take water for granted and how little is actually known about its impact on health or the unique properties that it possesses. He said that many myths are prevalent in the media, which create confusion and cloud the issue. As research exists about the effects of dehydration and the benefits of consuming 2 to 3 litres of water a day, awareness should be increased using concrete evidence. This is the main priority of Water for Work & Home. * Water coolers - point of use* The European POU market’s potential was the subject of Zenith International Research & Development Director Gary Roethenbaugh’s presentation. He described the speed of growth of POU across Europe as “breathtaking”, with companies making cost savings as well as increasing the convenience of their water provision. Up 22% on 2005, he said that the 2006 figures reveal that the market is going from strength to strength. Almost 90,000 POU units were added in 2006 at the expense of bottled coolers and POU has more than doubled its overall share from 2001 to 2006, making it a force to be reckoned with. However, eastern Europe has displayed a slower POU take up as bottled coolers continue to dominate. Germany and Spain have shown similar growth to the UK, where bottled has taken a downward turn. Giving POU a unique selling point, carbonation has made strong gains in Austria, Germany and Switzerland. Rental was a prevailing trend in 2006, with its 56% share showing that it is increasingly the preferred medium. A range of factors are currently affecting the industry including cashflow and margin pressures, a decline in POU rental prices, the need for increasing customer choice and the call to focus on new sites such as small businesses and homes. The latter two factors, combined with innovation and targeting public sector accounts, will lead to plenty of opportunities within the industry. Tapping into health and wellbeing and showing the benefits of POU as a low carbon footprint option are likely to define the industry’s future, which has a potentially strong outlook. PHS Group Head of Marketing Stuart Price talked about how facilities managers are responsible for one third of the market’s buying power. He described them as “multitaskers” who have little time to spare and therefore require simple solutions and contracts, wanting a guarantee that water won’t run out. There are increasingly more opportunities for offering both water coolers and vending machines in the same locations, such as corridors or meeting rooms, and these should be pursued. As they don’t want any elements of risk, facilities managers are setting trends by favouring POU over bottled coolers. Putting aside details such as taste or whether the water has come from a spring, they just ask themselves the question: will this option make my life easier? James Anderton, President of the European Point-of-use Drinking Water Association (EPDWA), highlighted the positive and negative aspects of the cooler industry. He said that the benefits of water should be emphasised by companies as they are providing the public with a source of health. Initiatives such as Unison’s water@work scheme are certainly beneficial to the industry. However, bad levels of service and companies “throwing mud” at others should be stamped out: “We can’t move away from the fact that POU has advantages over bottled. It is important that these elements are used to promote hydration and educate consumers, but without inflammatory comments being made. It shouldn’t be about POU or bottled coolers, it should be about water. Companies are all in the same industry, so it makes sense to work together. ”He spoke of the benefits of working together through industry partnerships and creating a common language for establishing practical guidelines that will enable companies to gain customer confidence. In order for these to work, he said that they must be suitable, measurable and meet certain objectives, as well as testable and auditable. Companies should work with the government, instead of waiting until guidelines are already down on paper. Head of Consumer Strategy at Water UK Nick Ellins said that tap water should be promoted as a way of making a difference to the health and quality of life of every group in society. Most people go through life in a constant state of mild dehydration, which can lead to headaches, irritability, lack of concentration, poor oral health and infections. Despite this, public places such as schools, hospitals and care homes remain drinking water deserts compared to the consumption of other fluids. Cooler companies should be grasping the opportunity to improve this situation with both hands by acting as professional water specialists for these areas. Instead of focusing on filtration and the technical aspects of their products and services, they should be communicating directly with end users and encouraging them to drink water. “The cooler industry has an essential and pressing role to play in supporting public health,” he said. “Is it a coincidence that you’re here? Could you be selling iPods or digital cameras? Is there a reason you’re here? Yes, it’s because you care about what you do, which means you have something in common with Water UK.“ He said that the organisation welcomes the work that associations such as the EPDWA are doing in terms of presenting clear codes of conduct and believes that the whole industry should aspire to promote the health benefits of water. Greencare Managing Director Adam Warren started by saying that although the environment is currently a buzzword, it has been a concern of Greencare’s since the mid 90s. He emphasised the importance of companies working with organisations such as Greenpeace and Friends of the Earth to reduce their environmental impact, then outlined some steps that can be taken to reduce carbon footprints. “Some of the initiatives are quite obvious. For example, using disposable plastic filters is preposterous. Just make them reusable – it’s not rocket science. The problem with recycling is that it doesn’t always happen and even with bottles constructed from corn starch you need land use for them to compost, so it’s better to reuse items,” he said. “Going carbon neutral is just the starting point. Companies need to narrow their supply chains and think outside the box.” Vending “Today we no longer have to apologise for vending,” said Charles Trace Chairman of the Automatic Vending Association, who began by painting a positive picture of the industry. He said that it had shed its low quality reputation, thanks to the advent of increased consumer choice through vending machines that provide anything from Fairtrade produce to leisure accessories and frozen foods. “Vending companies should see themselves as 24/7 retailers, not vending operators,” he said. He also stated that the industry has a responsibility to take global issues, such as the environment, seriously and respond by thinking outside the box and delivering greener solutions that will meet consumer demands. European Vending Association President Augusto Garulli gave an overview of the European market, in which there are 3.2 to 3.5 million machines, with a turnover of €26 billion. He highlighted trends that are affecting the industry, such as the rise of the busy, pressed-for-time consumer who favours organic, Fairtrade goods and for whom vending should be presented as an experience. The industry is also facing challenges, such as responding to the needs of end consumers, meeting legislative requirements and preventing fraud. Marketing is needed to boost vending’s reputation by giving it a reliable image. Bringing a US vending perspective, Richard Geerdes, the President and CEO of the US National Automatic Merchandising Association believes that the solution to the obesity issue is not to ban products, but instead to present a range of healthier “Balanced For Life” items that increase consumer choice. The industry needs a set of nutritional standards to work with, as currently there is not a clear answer to the question: what is a healthy product? Education is also needed among consumers as, even if healthier products are offered, they don’t seem to be selling. “Vending used to be seen as the villain in the obesity debate, but now we have deflected this and moved to a more rational discussion by showing that we are doing our bit,” he said. “We now need to look in the mirror and find the right ambience with the right product selection.” Director of the Health Education Trust Joe Harvey also tackled the subject of obesity, by saying that schools are a good way of influencing children when they are young to equip them with food and nutritional skills, which they seem to be lacking. Although there have been frustrating delays when it comes to the School Food Trust and the Department for Education and Skills implementing clear guidelines, Harvey said that the vending industry should see the healthy eating issue as an opportunity to present itself in a more favourable light. Forum For The Future Director Sally Uren talked about the non-campaign, non-governmental organisation that is made up of over 50 companies including Tetra Pak, Tesco and Waitrose, as well as governmental bodies. She said that, as the global population is predicted to surge by 2050, issues such as climate change and rising social costs will become even more pressing: “If we continue to live using resources at the current rate, we will need two more planets as we are not living within the limits of one. There is a broad consensus that there is only a 10 to 15 year window to do something about it, so we must act now. ”Over the past 18 months, there has been an unprecedented scale of activity as businesses have realised that consumers are starting to ask questions about sustainability. Marks & Spencer, for example is cutting its carbon emissions by 80% in five years, while Sainbury is reducing them by 50% over the same period. Various initiatives include cutting down food miles, paying to offset carbon footprints, recycling used good and investing in Fairtrade, energy efficient products. Consumers are likely to edit out “bad” choices in the future and become more ethically minded, so companies must respond now. Some firms, such as innocent, Walkers and Boots are also displaying how much carbon was emitted to produce their goods, so there is a requirement for consistent pack information that consumers will fully understand.

Membrane technologies The pressure driven membrane separation technologies of microfiltration (MF), ultrafiltration (UF), nanofiltration (NF) and reverse osmosis (RO), as a group, provide the greatest range of contaminant removal. As a result, these technologies are often the lynchpins for potable water production systems. In particular, membrane technologies possess certain properties that make them unique when compared to other solid or liquid separation operations. These include: * Continuous process, resulting in automatic and uninterrupted operation * Low energy use involving neither phase nor temperature changes * Modular design – no significant size limitations * Minimal moving parts with low maintenance requirements * No effect on form or chemistry of contaminants * Discreet membrane barrier to ensure physical separation of contaminants * No chemical addition requirements Simply put, these technologies are continuous filters. The type of contaminant removed is a function of membrane polymer selection and its pore size. Although they all provide separation of contaminants from the solvent (usually water), each performs a specific function and has advantages and disadvantages when compared to the others in a particular application. The development in filtration technology known as “crossflow” or “tangential flow” filtration allows for continuous processing of liquid streams. In this process, the bulk solution flows over and parallel to the filter surface. Because the system is pressurised, water is forced through the filter medium and becomes “permeate”. The remaining water exits the membrane device as “concentrate” and carries out the contaminants rejected by the membrane. Turbulent flow of the bulk solution across the surface minimises the accumulation of particulate matter on the filter surface and facilitates continuous operation of the system. Microfiltration Generally, microfiltration involves the removal of particulate or suspended materials ranging in size from approximately 0.01 to 1 microns (100 to 10,000 angstroms). Ultrafiltration Ultrafiltration is used to separate dissolved, non-ionic materials typically smaller than 0.01 micron (100 angstroms). The removal characteristics of UF membranes can be described in terms of “molecular weight cutoff” (MWCO), the maximum molecular weight of compounds that will pass through the membrane pores. MWCO terminology is expressed in Daltons. Basically, ultrafiltration is used to remove dissolved organic contaminants, while suspended solids are removed by microfiltration. Nanofiltration This is an intermediate process between ultrafiltration and reverse osmosis. The molecular weight cut-off (MWCO) properties of nanofiltration membranes are in the range of 400 to 800 Daltons (<10 angstroms). Ionic rejections vary widely depending upon the valence of the salts; multivalent salts such as magnesium sulfate (MgSO4) are rejected as much as 99%, while monovalent salts such as sodium chloride (NaCl) may have rejections as low as 20%. This process will remove almost all dissolved organic (non-ionic) solids with molecular weights above approximately 100 Daltons, as well as a high percentage of ionic materials. **Reverse osmosis **Membranes are not perfect; they will typically remove 95 to 99% of the ionic contaminants.

Sustainability and the environment The furore surrounding global warming and climate change has reached an unprecedented high as businesses increasingly come under fire for the effects that their manufacturing activities are having on the environment. cooler innovation explores what can be done to tackle the problem and unveils some of the innovative products and services that are making a move in the right direction. Michael Barnett of the British Water Cooler Association (BWCA) kicks off the discussion by outlining the issues that are facing the planet as a whole, as well as looking more specifically at the role the cooler industry must play in helping to offset its own carbon footprint. Global cooling - The challenge ahead “Climate change and its specific effect, known as global warming, is said to potentially be the biggest environmental threat facing the universe and mankind today. “Extensive media coverage, environmental groups and regulatory lobbyists have added fuel to the global warming debate, and in the process have driven it to the very top of the public agenda, forcing governments and politicians to embrace it for reasons of political and social correctness. “Major corporations have not been immune to this debate and have in fact been among the first to incorporate environmental policies and strategies into their future plans. It is said that as many as 80% of the FT Global 500 companies. (the world’s largest companies) acknowledge the importance of the global warming debate and identify it as a business risk. In excess of 35% are already said to be taking appropriate action. The water cooler industry is therefore not alone in facing the challenge ahead. Nevertheless, it may have to go it alone in seeking some solutions, which are most appropriate and unique to the industry. “To date, the issues tackled by the Industry have related mainly due to regulatory, quality and safety issues and have evolved relatively slowly, allowing time for the Industry to adapt to the challenges in a manner which will reduce their commercial impact. The environmental challenge before the industry now, however, is one which has not arrived totally unexpectedly. It has been on the horizon for a few years, but its ascent to the top of the public agenda over the past 12 months has been nothing short of meteoric. “Global warming has provoked fierce scientific debate. Not that anyone in the scientific community ever questions, or disputes, that the universe has entered a period of global warming, with the consequences of rising sea levels, drier hotter weather and increasing holes in the ozone layer. These facts, we are advised, are indisputable and accepted by both sides of the scientific community. What is hotly disputed, however, is the root cause of climate change and global warming. “The real question being debated is whether global warming is manmade or a natural phenomenon – the latest one of several cycles of warming and cooling, eg ice ages, which the universe has been through in its 20 billion years of evolution since the Big Bang? The facts “Whichever is the right answer, the inescapable conclusions are that: - Global warming is occurring - Mankind can contribute to its reduction “Environmental groups and government agencies worldwide regularly inform the public about how one can individually contribute to reducing global warming and combat the threat to the universe by doing the following: Use energy efficient light bulbs and turn off electrical appliances properly Drive fewer miles and convert to electric or battery powered vehicles Cut down on short haul flights and taking holidays in far off destinations Buy more seasonal and locally produced food Recycle household waste The terminology “To quantify and analyse the impact of global warming, new terminology has evolved and requires a brief introduction. Ecological footprint An estimate of the land and sea (earth) area that the human population needs in order to provide all the energy, water, food and materials to fully support itself for a period of ONE year. Bio-capacity An estimate of the total energy, water, food and materials that the earth can provide to support the human populations of the world for a period of ONE year. It is said that mankind’s current ecological footprint exceeds the earth’s bio-capacity by over 25%. In other words, mankind’s activities on earth are unsustainable in the long term. Sustainability Is an activity which meets mankind’s present needs without compromising the ability of coming generations to meet their own future needs. “The inability of mankind to balance his present needs with the ability of the earth to provide them on a sustainable basis is not a new phenomenon. Scientific sources have charted these needs against the earth’s capacity to provide them since the early 1960s and it is estimated that sustainability ceased in approximately 1988. “It is further forecast that mankind’s current rate of activity will increase by over 100% over the next 25 years, as industrialised nations such as China evolve into fully fledged consumer societies. “Mankind’s demands on the earth’s resources are varied, each with its own adverse impact and sustainability value. To measure and quantify these demands and their impact and effect in an ecological context, footprint analysis is of growing importance. “Mankind’s ecological footprint is a composite of many contributing factors each with its own footprint. Popular with the media has been the carbon footprint. Carbon footprint A measure of the impact of mankind’s activities on the environment in terms of the amount of greenhouse gas produced. It is measured in units of carbon dioxide (CO2). Greenhouse gases: are component gases of the atmosphere, most of which occur naturally, while others result from manmade industrial activities, eg water vapour, methane, nitrous oxide, ozone and CO2. Greenhouse effect: an occurrence whereby solar heat is trapped within the earth’s atmosphere as a result of the presence of greenhouse gasses, causing the temperature of the earth to rise. “The greenhouse effect (at least at levels which occur naturally) is generally considered to be good, since it keeps the earth at a habitable temperature for humans. However, it is said that by clearing forests and burning fossil fuels such as coal, gas and oil excessively, humans have dramatically increased the amount of CO2 in the earth’s atmosphere, causing temperatures to rise too high and thereby bringing about global warming. The water cooler industry “How does the water cooler industry contribute to the increase of greenhouse gasses and thereby global warming? “The key is the industry’s carbon footprint, which with respect to water coolers (both bottled and POU) comprises of the: Manufacture and shipping of water coolers and related products worldwide. Extraction, bottling and delivery of bottled water (bottled water coolers). Extraction, processing and distribution of municipal water (POU coolers). Electrical energy consumed by water coolers in refrigerating, or heating the water. Recycling of materials such as water coolers, bottles and filters at the end of their life. “Each of these will contribute to the industry’s carbon footprint and will result in emissions of CO2 gas into the atmosphere. These emissions are measured in tons of CO2 for the industry as a whole, or in grams of CO2 per litre of water dispensed from the water cooler. “What measures can the water cooler industry take to reduce its carbon footprint and its adverse impact on the environment through bringing about global warming? “Firstly, what is needed is to determine the industry’s current carbon footprint? While an average value can be approximated worldwide, it will most probably vary from one continent to another and country to country, due mainly to the logistics of distribution. A national, carbon footprint value is probably the most significant value at this time. “Having established a baseline level for the industry’s current carbon footprint, there are several courses of action which may be employed. These may be implemented simultaneously to achieve the fastest impact on CO2 emissions, or consecutively, resulting in a slower impact. The decision of which course to follow will be largely influenced by both economic, as well as operational, considerations. The following are steps in the process to reduce the industry’s CO2 emissions, both directly and indirectly: Carbon offset: - a method to balance, or indirectly reduce, the carbon footprint through the purchase of carbon credits. Carbon credit: - a currency which is tradable on the international market with a monetary value equivalent to ONE tonne of CO2. “There is much controversy about ethical carbon credits, however, they are normally linked to emissions reduction projects such as energy efficiency, green power, renewable power technology and forestation, where the outcome of the investment in carbon credits has a visible and measurable reduction in greenhouse gasses. The credits are available through carbon offset providers. “The optimal state is one where the industry’s greenhouse gas emissions are balanced by an equal offset and the adverse environmental impact is reduced to zero. It is also referred to as being carbon neutral. Carbon neutral: - a state whereby using a carbon offset programme, carbon credits are purchased to a value balancing CO2 emissions. BWCA “The BWCA recognises its role in pioneering the UK industry‘s obligations in reducing global warming. This recognition is not new. It was as long ago as 2004 that the BWCA introduced the Environmental Recycling Charge (ERC) in response to EU Directive of 2003 on WEEE, and mandated members to financially provide for the recycling of water coolers at the end of their useful life. “Polycarbonate 19 litre water bottles used by the bottled water cooler industry are multiple-use containers, which bear deposits to ensure their return to the distributor. These have a life of some 50 to 70 round trips over approximately five years, in marked contrast to one-time use PET bottles used by soft drinks suppliers. “The BWCA Environment Committee is currently analysing the UK industry’s carbon footprint for both bottled and plumbed-in water coolers. While it may appear that the bottled water cooler has a larger footprint due to the requirement to deliver bottled water, it is apparent from early desk research that the electrical consumption of both bottled water and POU water coolers in refrigerating the water plays an extremely significant role in energy consumption terms, bringing about an almost balance of the two footprints. “The BWCA has drafted the following environmental statement:“ The BWCA has identified climate change and the water cooler industry’s carbon footprint as a priority agenda item for its members. The association, through its membership, is committed to: a) Reducing the industry’s carbon footprint. b) Investing in and implementing alternative low carbon technologies for the industry. c) Funding a carbon offset programme to neutralise the industry’s carbon footprint. The BWCA recognises its pivotal role in directing industry resources to reduce members’ carbon emissions in an effort to reduce global warming. It works with stakeholders, corporate advisors and government agencies to attain socially responsible, environmentally sustainable, energy efficient carbon footprint reducing policies and strategies for its members. The above comments were made by Michael Barnett, of the Hydropure Group, and Chairman of the BWCA Annual General Meeting on 25 April 2007 Environmental ethos If the cooler industry wants to cut down its contribution to global warming in the long term, developing new products that reduce waste, use less energy and are reusable, could be an effective way of achieving its goal. As well as the products that it offers, components, spare parts and consumables provider Abbeychart has given its entire company policy a green overhaul. Sourcing goods from companies who share the same ethos, the firm carries out environmental audits to ensure that its suppliers are also aiming to make their business operations carbon neutral. The products themselves will only be taken on board if they have been manufactured in an energy efficient way or will help to reduce power consumption. Examples within the company’s portfolio of environmentally friendly products include the biodegradable Bioguard cleaning range (left), and the recyclable sanitary quick change EcoAquaFlow water filter that offsets the carbon impact of conventional plastic or polypropylene head and cartridge systems, which are difficult and expensive to recycle. It has also developed an energy saving vending light for backlit display panels. The low voltage LED lights are an improvement on using fluorescent tubes as they offer 80% less power consumption, with a seven times longer lifespan. “Vending machines operate 24/7 and are being used in ever-increasing number, satisfying consumers’ vending needs at work, at school, and during leisure time. Accordingly, improving the energy efficiency of vending machines is of the highest importance,” said Sales and Marketing Director Steve Slark. “We believe the reduced environmental impact of Abbeychart’s LED display panel will be highly attractive to manufacturers, operators and consumers alike.” Further initiatives include promoting the use of unbleached or oxygenated coffee filter papers, as opposed to papers that are bleached white using environmentally harmful chemicals; reducing the waste generated by its own business premises by 30%; and implementing a tree planting programme around its newly built warehouse. Another company that believes its ethos could influence its customers and help support their environmental policies is PHS Waterlogic. The water cooler and dispenser company has praised the recent move by the UK government’s Food Standards Agency, Department for the Environment, Food and Rural Affairs, and Department of Transport to use filtered tap water in its offices, claiming that it will cut the energy required to manufacture plastic bottles, reduce the carbon emissions produced by bottle transportation and prevent plastic waste generation. Calling for central, local and regional government offices to make the switch, the firm believes that its machines offer greener water access as they feature a sleep mode, which saves on electricity when they are not in use, as well as compressors that use eco-friendly gas. PHS also has a recycling programme in place for reusing returned units’ spare parts and supports the Save A Cup scheme by actively helping its customers to participate. For some cooler companies, helping the environment has been central to their raison d’être since their inception. After launching its first environmentally friendly water dispensing system 17 years ago, Vivreau has continued to design solutions that assist companies with reducing their environmental impact. Managing Director Stephen Charles, believes that companies who neglect their environmental responsibilities and focus solely on commercial gains will have to step out of their comfort zone if they want to continue to compete. “Any business operating in today’s competitive marketplce needs to be aware of the green issues,” he said. “Our clients are becoming more open about their corporate social responsibility and not being able to respond with a like minded approach would be a major drawback. Many companies, especially the larger blue chips, now have an environmental policy, which includes an assessment of suppliers’ green credentials.” Vivreau’s original Table Water Bottling System, which is now used in the board rooms of around 40% of the UK’s top 100 companies, dispenses filtered, mains-fed water into reusable glass bottles to reduce packaging waste, as well as the “water miles” totted up by transporting bottled water. It incorporates LinkLine technology that enables an entire building to source its water from one central unit that uses one filter. This is preferable to installing individual systems that use more energy and require separate filters. All of its systems, including the latest VR3000 (left) and VR4000 models, are also fitted with power saving options as standard to reduce their electricity consumption, and are returned to Vivreau’s premises after use, where most components, such as the cooling, carbonation and boiling mechanisms, are refurbished and reused. Holding the view that being carbon neutral doesn’t go far enough in tackling the problem, Stephen said that the company will continue to implement new initiatives until it becomes carbon positive. He is optimistic that environmentally friendly dispensing systems will become commonplace in the future, saying: “In 10 years time they will be the norm, not the exception as they are now.” Vivreau’s original Table Water Bottling System, which is now used in the board rooms of around 40% of the UK’s top 100 companies, dispenses filtered, mains-fed water into reusable glass bottles to reduce packaging waste, as well as the “water miles” totted up by transporting bottled water. It incorporates LinkLine technology that enables an entire building to source its water from one central unit that uses one filter. This is preferable to installing individual systems that use more energy and require separate filters. All of its systems, including the latest VR3000 and VR4000 models, are also fitted with power saving options as standard to reduce their electricity consumption, and are returned to Vivreau’s premises after use, where most components, such as the cooling, carbonation and boiling mechanisms, are refurbished and reused. Holding the view that being carbon neutral doesn’t go far enough in tackling the problem, Stephen said that the company will continue to implement new initiatives until it becomes carbon positive. He is optimistic that environmentally friendly dispensing systems will become commonplace in the future, saying: “In 10 years time they will be the norm, not the exception as they are now.” Ebac hot on reducing energy consumption Recognising that energy efficiency is an important concern among its customers, Ebac has addressed the large power consumption discrepancy between cook & cold and hot & cold coolers by developing a new product. Under Energy Star guidelines, acceptable levels for cook & cold models are 0.16kW hours per day, but for hot & cold the figure rises to 1.2kW hours per day, which is almost a 10 fold increase. Caused by the refrigeration function having to work harder to compensate for the heat given off, the difference in energy consumption for hot water coolers also brings about an additional electricity cost of around £50 each year. Based on the Thermos flask concept that keeps hot beverages warm, Ebac’s insulated hot tank aims to reduce the energy consumption needed by 30 times and in turn increase the efficiency of refrigeration systems. Constructed from robust stainless steel with an Incaloy element, it features a vacuum insulated jacket with two layers, as well as a bottom entry supply tube and cool well portion to minimise heat transfer. Electronic proportional control maintains a constant delivery temperature, while its plug in/plug out operation facilitates simple maintenance when required. Offering a typical daily stand-by power consumption of 0.03kW hours and running costs of £0.03, the hot tank comes as standard in Ebac’s FMax and EasyLoader coolers, and can be fitted in the remainder of its existing models. * Fully biodegradable plastic from Metabolix* Metabolix and ADM are joining forces to produce a range of natural, biobased plastics that are sustainable and biodegradable. Mirel is a line of plastics developed from renewable resources such as corn sugar that biodegrade back to nature in a wide range of environments including soil, compost, rivers and oceans. Oil based plastics are made using almost 10% of total US oil consumption – about two million barrels a day. They contribute to greenhouse gas emissions and negatively affect the global ecosystem, as they do not biodegrade. “Today marks an important step in providing consumers with products made of plastics that don’t harm the environment,” explained Metabolix President and CEO, Jim Barber. “We are now commercialising biobased, renewable alternatives to petroleum based plastics that will reduce our reliance on oil and the impact petroleum use has on climate change.” Mirel plastics can be used for various packaging processes including injection moulding, cast film and sheet, blown film and thermoforming. Metabolix is now working with over 40 prospective customers on more than 60 applications for the material. The company said that although cooler bottles have not been produced yet, they are a real and definite solution for the future. The two companies will be marketing Mirel through their Telles joint venture which is currently constructing its first commercial scale plant in Iowa, US. Expected to begin operations in 2008, the facility will output Mirel at an annual rate of 110 million pounds.

Dairy Innovation Editor Geoff Platt takes a look at a select group of dairy organisations, their history and their work.

Hannah Oakman investigates why every business in the cooler industry needs a strong public relations strategy. The first impression many people have of PR is one of extremes, either political spin doctors or the absolutely fabulous, champagne drinking of Patsy and Edina from British TV comedy Absolutely Fabulous. In fact, PR is pretty simple. If your company is successful, people will want to tell others about it and this is the kind of word of mouth advertising which helps your business grow. Put simply, public relations is about reputation. It is the result of what you do . . . what you say . . . and what others say about you, either to your face or, quite often, behind your back It is also a planned and long term effort to communicate with those people who are important to your business, such as existing and potential customers, local authorities, associations, governments and employees. PR is made up of a number of different methods. Most people immediately think of media relations or writing press releases but there are several other methods which may not immediately spring to mind. Firstly, you can aim to position yourself as an industry expert. Once you start to become known as an expert on a subject, journalists will start to interview you for story background. Being mentioned or quoted in a major industry article can be a great boost for you and your business. You could also look at local or national sponsorships of events and charities. Showing an outside interest, other than your core business focus, can make your business seem more appealing and lends itself to stories and media interest. It is important to chose an activity which reflects the personality of your company’s brand - ie sports suggests an active lifestyle while arts sponsorships may imply a more cultured focus. Offering something different, particularly an environmental or sustainable stance, or perhaps a unique attitude to staff training or customer service, will also help you to stand out from the crowd. * Media relations - a guide* As Editor of this magazine I receive a lot of press releases. Some are great but some are not. The main problem most of the time is identifying the story quickly. If I am struggling to find the story after 15 seconds I am tempted to give up and this is the case with most media, especially busy newspaper desks which receive hundreds of press releases a day. So how can you make your press release stand out in the pile? The following should be useful as a starting point. • A good press release answers the five Ws (who, what, where, when, why) providing the reader with all the information they need to retell the story. • Start strong - your headline and first paragraph should tell the story. The rest of the press release should provide the detail. This means you capture the reader’s attention straight away. • Pick an angle. It often helps to make your press release timely. For example, if you have just acquired another company or launched a new product, how might this tie in with recent developments in the industry or legislation? • Your press release should include comment from a relevant spokesperson. Rather than just expressing pleasure at the launch of a product, try and say something meaningful such as why you are pleased and how it will have a beneficial effect in real terms. • Avoid exclamation marks, capital letters and other alarming punctuation. Remember the exclamation point is your enemy and is the easiest way to destroy your credibility when writing. • Your press release should end with a short paragraph, otherwise known as a boilerplate, which describes your company, products, services and a short history. You should also always include a relevant contact person - telephone number and email address for a journalist to get in touch. • The phrase “a picture tells a thousand words” is often true. While we may not have glamorous travel images or fashion shots in this industry, a clear, high resolution photo from your company of your key spokesperson or new product will really help your chances of coverage. • And finally . . . it’s all about deadlines. You might have the best story in the world, but if you miss the deadline it won’t appear. When looking at different types of media this varies. If you are working on a story with a local, weekly paper, they will have the same deadline day every week so it is worth ringing to check. Magazines, meanwhile, tend to work at least two months ahead of the distribution date.

As more traditional vending companies begin to offer water coolers to customers, does this activity present as many opportunities as threats to the water cooler industry? In this special report, cooler innovation invited opinion on the key vending issues for the future. As a member of the water cooler industry, or simply an interested observer, it is becoming clear that in today’s market place, the distinction between service company offerings is becoming more than a little blurred. So with more vending companies now offering water coolers, and some activity in the opposite direction, whereby a handful of cooler companies are beginning to realise the vending opportunity, where does this leave the larger cooler industry and how does it respond? One key issue is standards. With more player moving into the cooler industry, the entire industry needs to maintain vital aspects of customer service and hygiene standards, to avoid any future issues. The single portion service of bottled water vending is obviously a very different prospect to water coolers but there seems to be a general consensus within the cooler industry that it must be proactive rather than reactive in order to protect its market share. When looking at the key issues in the vending industry today, it is easy to see why it is growing. The workplace remains the key vending location and the convenience offered by vending is vital to the up-coming generation of young consumers. The focus is also shifting towards healthier products - and as readers of this magazine will no doubt agree, water is as healthy as you can get. While traditional vended products such as coffee and cigarettes are not proving as lucrative as in the past, innovation in the areas of healthy products and new brands will be the key to future growth. View from the cooler industry Blue Direct, run by Managing Director James Anderton, (recently appointed President of the European Point-of-use Drinking Water Association), offers a small amount of vending services including vended drinks and snacks. Vending has always been a peripheral part of the business due to the specialist equipment variants and man power commitment needed. When questioned how he perceived the vending industry to differ from the water cooler sector, James replied that vending companies were usually focused on higher value machines with the bulk of revenue driven through ongoing ingredient sales with leased equipment. “The total deal value and profitability for vending companies is higher than water and therefore has a lower overall cost of sale. The water cooler aspect for the vending companies is often seen as very peripheral as the margins are low and it adds little on-going revenue stream,” James continued. “In theory, service should be more efficient as vending companies are often going to customer sites daily. However, the investment in direct training for water coolers has so far been low - looking at the number of vending companies that are members of the EPDWA - therefore current service levels and quality of service must be questionable.” So does bottled water vending have any advantages over traditional bottled water cooler or point of use cooler provision? “Bottled water vending is only practical in sites requiring payment for product and some public areas,” James added. “It is unlikely to be adopted as the only option in offices where water is currently available free of charge. It has been offered in these environments with limited success where the supply of water is either erratic or where there is a snack or can machine on site.” A new focus One of the UK’s major players, Eden Springs UK is already considering the issues raised by the vending industry. As Commercial Director Graeme Caruthers explained: “We are very aware that other sectors, such as vending, are looking at the bottled water cooler and point of use market. At the end of the day, every single company is looking for revenue growth and sustained profitability. They will look for synergies in other markets where they can use their skills. “I’m sure the vending industry must be visiting its customers and seeing water coolers available - and questioning why they don’t try to get a piece of that business themselves,” he continued. “We see ourselves as a hydration solutions company - which includes bottle fed coolers, point of use, small pack, and as an extension to that, vending. We are not vending experts but it could be up for discussion,” Graeme added. He reported that Eden Springs UK had spoken to vending companies previously to see if it could use referral systems whereby Eden could refer clients to them and vice versa. “Ultimately, if we see vending companies taking share from the point of use market, it will sharpen our focus because we will all be vying for the same customers.” Michael Barnett, Managing Director of Hydropure and the British Water Cooler Association Chairman commented: “Bottled water vending does have some advantages over traditional bottled water cooler or point of use provision in some locations such as gyms and some institutions and where provision of water can not be free, such as airports and railway stations. Hydropure recently tested plumbed in, coin operated water coolers for dispensing water with and without flavourings. The company found that normal water cooler usage or free-vend was, as expected, the most popular by far. For the paid-vend system, water consumption decreased noticeably and flavoured paid-vend had very low usage and was perceived as having novelty value only. Vending as partners Moshe Gazit of Waterlogic, which sponsored the European Vending Association Brussels conference “Healthy eating: vending solutions” earlier in 2006, meanwhile commented that while the company only provided POU services, it worked very closely with vending and office coffee service businesses. “We have many clients offering vending products and have designed some of our products to accommodate this, such as POU fed machines and special units. This is a growing and important aspect of our business through our dealer network. “We see the vending industry as our partners in the market, and our intentions are to continue building synergies with the vending industry”, Moshe added. On the matter of service, he believed service to be crucial in both industries. “Client satisfaction is the key,” he added. “The vending industry differs primarily as they charge per drink. The combination of vended drinks and water is crucial and most vending companies would view bottled water as competition.” Does bottled water vending have any advantages over traditional bottled water cooler or point of use cooler provision? “We think vending is a very diverse industry with water provision selected according to the clients needs. Bottled water vending is more appropriate only in areas where free cup dispensing is being avoided (i.e. airports) and the vending company wants to make profit on selling small bottles.” Does Moshe think there are greater financial gains to be had in vending that watercoolers? “No. Efficiently run POU businesses can certainly earn very handsome returns. Vending is a very competitive business and adding POU to a vending company will inevitably increase their margins. We have dealers in the vending industry who have notified us that the POU part of their business is by far the most profitable. There are also far less technical issues if a quality POU dispenser is installed than a standard vending machine,” he revealed. Via its contract with the University of Birmingham in the UK, Quench Water Systems has worked to install the Brita Rehydration Zone, which dispenses chilled water using a microchip monitored filter, as well as traditional vending machines for snacks. “As members of the water cooler industry, it is important to remember that small pack water is extremely popular and we have to meet this demand too,” commented Managing Director Fred Cairns Palmer. “However, with vending it is important to consider your capital expenditure carefully. You have to be in it for the longer term than say, an average point of use contract, where you will probably regain your money more quickly. “Vending also has its own range of technical issues to consider, which differ from water coolers. “Machines such as bean to cup coffee machines can mean daily upkeep for your business so you have to be able to respond to this challenge. A German perspective For the last four years in Germany, vending companies have begun operating in the water cooler sector. Soenke Rocho, Managing Director at revos, a major German water cooler company explained that there are some big players in vending, including companies such as Asb Beuck, which have around 2,000 coolers in their portfolio. Asb Beuck is still primarily a vending company, which is very strong and the surrounding area. The company has joined as a member of the German Bottled Watercooler Association, showing its commitment to the sector. “A lot of other vending companies in Germany offer water coolers as well but it’s a small part of their business and standards can vary. I would estimate that between them they only hold a maximum 5% share of the market. “So this is not really a threat to the water cooler industry in its own right as it is not their main focus,” Soenke continued. “But the varying standards in hygiene they offer could be a potential problem to the entire industry, in the event of a crisis.” Vending companies with a cooler interest are, Soenke added, mainly focusing onpoint of use. “They are much more involved in this than bottled water coolers. A lot of their customers want to be able to offer free water to employees and clients and for them, the POU machine already fits in with their existing coffee and drinks vending machines. “Vending is a different industry to the water delivery business, and most vending companies also don’t have the storage and delivery logistics to handle five gallon bottles.” Although it does not operate in vending directly, revos is a member of BDV, the German vending association, because of its sales partners, the only water cooler company in Germany to belong to the association. * Fit to serve* As part of the trend, several manufacturers working in the vending industry have moved into producing products for the water cooler industry. French manufacturer Fisapac, which has been active as a supplier in both the water cooler and vending fields, has recently launched a series of new water cooler and cartridge machines. The company now offers a new version of its Georgia free standing and table top, which offer flavoured drinks as well as tea, coffee and water. In addition, Fisapac has launched the Diviniris, billed as a “water cooler vending” machine. The Diviniris model automatically recognises each product cartridge as soon as they are placed into the machine and can then process this data to show cartridge expiry dates, allowed usage time of the product once opened, the preset number of cups for each cartridge (to prevent refilling) and traceability of every product. Fisapac hope these sales statistics will help distributors keep track of consumption rates for each cooler out in the field. The system also offers various payment methods: the basic version includes a card payment system, but a coin system can also be added and they can both work as a cashless system. Vending specialist Bravilor Bonamat, based in the Netherlands, has a range of vending products including the FreshGround, which can grind beans as well as serving a range of coffees. In a move to offer customers more, the company recently launched the Chiller, a filtered point of use drinking water cooler machine now on offer. As the company explained, the chiller has proved appealing to existing customers of its coffee systems because they are already familiar with the company’s brands and products. “With the new Chiller machine, we are providing a solution for the latest trend for healthy hydration and boosted water consumption,” commented Marketing Communication Specialist Miranda Korten. Serve yourself According to the history books, vending began back in 215 BC when the Greek mathematician Hero invented a holy water dispenser for the Egyptian Temples. What is vending? Put simply, vending is automatic retailing. It covers the sale of products and services through a machine operated by introducing coins, banknotes, payment cards, tokens or other means of cashless payment. Although subject to much criticism lately, particularly in the schools sector where new legislation has seen much vending banned in schools across Europe, the US and Australasia, vending is only a means of distribution rather than a product in itself - a self service shop. An increasing desire for on-demand catering has led to the number of machines expanding even in locations with other catering facilities, such as hotels and hospitals. As with any industry, there are a lot of technical issues affecting vending such as cashless technology, Bluetooth, coinage (Euros, counterfeiting and fraud issues) and EU legislation such as the WEEE & RoHS legislation. Why vending? There are a number of advantages to vending as opposed to traditional food and drink service. These include: • Convenience: vended goods are available 24 hours a day and machines can be sited exactly where needed. • Hygiene: with vending, as with water coolers you receive a clean cup every time and avoid washing up. • Recycling: the Save a Cup scheme in the UK provides a ready way to recycle used vending cups into durable items for the office. • Variety: vending machines offer a whole range of different products. Drinks vending machines can offer not just black and white coffee and tea but can also make the drink weak or strong according to taste. Fresh brew, cappuccino and chocolate drinks are also available. According to the Automatic Vending Association in the UK, there are around 511,000 refreshment vending machines in use in the UK. Consumers spend an annual £1.5 billion on vended products, with eight million cups of coffee and two million cups of tea vended every day. In total, vending uses 1.5 billion litres of water a year. As a plus point for the vending industry, the association also reports research figures showing that the average size business with 50 staff could be spending more than £85,000 of its annual wages bill in time spent by employees making their own tea or coffee. Meanwhile in the US, vending is a $30 billion-a-year industry, employing 700,000 people who work at an estimated 13,500 companies. Around 100 million Americans will use one of seven million vending machines each day. While 16.3% of all vending machines are located in schools and colleges, most vending machines are found in manufacturing settings.

The European Point-of-use Drinking Water Association is seeking government clarification on the Waste Electrical and Electronic Equipment (WEEE) directive, following predicted costs of up to £30 per water cooler. In this issue, the EPDWA's President James Anderton explains its case. The WEEE legislation (Waste of Electronic and Electrical Equipment) will come into full effect on 1 July 2007 and for the water cooler industry, like many others, the situation is becoming serious. The EPDWA has added its voice to the Department of Trade and Industry (DTI) consultative process, which ended on 17 October, to ensure that the interests of the water cooler industry are defended. Depending on the way the WEEE legislation is implemented, it is estimated that it will cost the industry between £20 and £30 per cooler for recycling - for an estimated 100,000 coolers per year, this will mean a total cost to the industry of up to £3 million per year. These are substantial sums which no one in the industry can be expected to absorb, and inevitably the end user will have to pay. Most distributors are already building up a “war chest” by charging an environmental surcharge on their invoices. If you represent one of the few companies which is not doing so, the EPDWA would urge you to consider it very seriously - experience suggests that the great majority of end users readily accept the need for recycling and any related cost. What are these costs? The cost of WEEE can be split into three distinct elements: 1. freight 2. recycling 3. administration of the process Based on the following assumption, it is possible to calculate the total cost of WEEE for goods shipped directly from the distributor to the recycler. • 75 miles distance from the recycler to the distributor or “producer”. • 100,000 units to be recycled per year. • WEEE collection and disposal by Environmental Services: £11.50 per unit per pallet of 12, plus a Hazardous Goods charge of £25.00 per shipment - £13.60 per cooler. • Administration cost: based on the assumption that two additional heads at £40K would be required for every 5,000 units, the cost per cooler is £8.00. The cost per cooler therefore comes to £21.60. The cost to the industry for 100,000 coolers is £2.1 million - and the environmental cost of WEEE is 750,000 WEEE transport miles. If, for an unknown reason, WEEE needs to be returned by the distributor to the “producer” (the UK manufacturer or importer) who then has to pass the goods on to the recycler, the cost escalates significantly as follows: • WEEE collection and disposal doubles, because of double handling, to £27.20 per cooler. • The administration costs again double to £16.00 per cooler. The total cost per cooler therefore comes to £33.20. The total cost to the industry for 100,000 coolers comes to £3.32 million - and the environmental cost of WEEE doubles to 1.5 million WEEE transport miles. WEEE is currently considered Hazardous Goods. This means that it has to be accompanied by a Hazardous Goods Notice with the name of the driver and the vehicle registration number. This means new coolers can be shipped by normal transport, but WEEE can no longer be shipped normally. This is a strange anomaly, especially in view of the fact that all coolers must be RoHS (Restriction of Hazardous Goods) compliant. Few of this industry’s transport companies would be able to cope with this – but of course everything is possible at a price! WEEE represents a massive challenge to the industry, not only in cost but also in administration. Every cooler needs to be traceable and registered with the authorities, although it is not clear yet with whom. There is a suggestion to have a “bond” set up when the cooler is first placed, to cover the cost of future recycling. This will involve more administration. Then imagine you will need to take away and recycle around 20% of your coolers per annum – assuming an average cooler life span of five years. The EPDWA has arranged to meet with the British Water Cooler Association to agree on a common industry position to be put forward to the DTI. We are, of course, not the only industry to lobby the DTI – but we will do our best to represent you.

UK cooler company Water for Work is investing heavily in boosting the hydration message to customers both in the office and at home. Following a busy summer period, cooler innovation Editor Hannah Oakman took a trip to the company’s Kent headquarters to find out more from founder and Director Ben McGannan. Water for Work, which is in the process of changing its name to Water for Work and Home to reflect the dual approach of the business today, is what you would describe as a pretty large cooler company. In fact, with around 9,500 coolers out in the field, it is the UK’s largest independent company. With just over 100 employees, the modern day business is now firmly focused on its core mission to be drinking water specialists, servicing customers with whichever hydration solution they are looking for. Rather than a home and office delivery company, Water for Work actually began as family engineering business, George S Clayton, making plant machinery and lines for the bottled water industry. The company worked extensively with Perrier UK, then Buxton Mineral Water, and when Buxton launched its water cooler business in 1990, George S Clayton manufactured its purpose built plant. At the time, the idea of starting up a cooler business was still rather a niche one, but with hindsight, things were set to change rapidly in the UK water cooler landscape. Unlike his father, Ben McGannon, while involved in the engineering and supplier side of the business, was not an engineer by trade and realised the company might need a new focus in the future. A water cooler industry colleague and friend, Alan Cornford, had started a company called Water at Work, based in London and a fortuitous meeting between Ben, Alan and his wife Pauline, sparked the idea of setting up in the cooler industry. With Water at Work’s help with a business plan, and following a six month period spent persuading the family that going into water coolers was a good idea, the company Water for Work was founded. The company has been based in Marden, Kent ever since. starting out of the engineering office, sitting on the phone making calls for trials with the noise of banging and machinery in the background. Ben admits this was not ideal, but a start. The company then relocated to small premises and began to focus on the new Water for Work business, which has gradually grown to its current size. Ben’s wife Liz also worked for the business for over 12 years before taking a step out to concentrate on other ventures. The Marden depot is the company’s main servicing location, but with customers in London as an increasing focus, due to potential for growth, there are plans to open a second depot in Hadlow in 2008, closer to one of the company’s water sources. Two further depots in Melton Mowbray and Brandon, Suffolk, cover the rest of the deliveries. On this particular rainy October morning, the Water for Work plant is still managing to looking cheerful, thanks to an almost complete make over to brighten up the offices and reflect the hydration theme for employees and visitors to the plant. While Ben admits that the company has kept a somewhat low profile over the last few years, they now feel ready to open up the business a little more to visitors and spread the news about what direction it is headed in. The bright blue walls are soon to be decorated with artwork from a local college, commissioned to design canvases which reflect the healthy hydration message. Although Water for Work is a large company, there is a friendly, informal buzz in the air, part of what Ben tells me is the key to the business and its success - its people. Regular pub quiz nights, staff training, even white water rafting trips, keep employees on their toes and involved in the communication process. Ben recognises that the business has moved a long way from its beginnings in the 1990s. He explained more about the journey to the present and what the next phase involves. cooler innovation interview Which areas of the water cooler business do you mainly focus on? “Our main focus is still bottled water coolers. We do offer point of use, and it is an area we obviously have to take more seriously as the industry has grown. One of the shifts we have made as a business recently is to be more driven by giving choice to customers. We’ve moved from a simple 19 litre, cold cooler, cups or cones offering to responding to customer’s needs in terms of water, coolers and other choices. We also now deliver small pack glass bottled water, sports bottles and other items to people in their homes and offices.” You already offer a range of coolers - but are you always looking for the next breakthrough model? “Yes, definitely. Long term, I think the residential market is going to need something more. Ebac have done some good work here with the Slimcool. I think this area will still need more research as there is always room to improve the domestic offering, although we realise this is a big investment for manufacturers too. “We are planning a research project this November specifically to look at how people drink water in the home. We want to understand people’s usage better. If you put them in an environment with a fridge tap, water cooler, bottle of water and a filter, which age and gender will chose which product? Hopefully, this information will be useful in the future.” Do you think people are more open now to the idea of a water cooler in the home due to their proliferation in the workplace, certainly in the UK? “I think there is still catching up to do between how nice a water cooler can look and what the majority of them do look like. The traditional white box water cooler serves its purpose but it doesn’t look great. I think the general public still need educating about the great looking coolers we can now offer.” “When we started out, we had to educate people in the workplace about what exactly a water cooler is - and now we are having to do the same in the residential sector.” “The water cooler is also still something people take for granted. If you ask someone with a water cooler who their supplier is, they wouldn’t have a clue. It’s only when the cooler is empty or has a problem, that people find out who their supplier is!” How important is the home side of your business? “Water for Home is still very much a project. We believe there is massive potential out there and we are trying to get our offering right. Each year we do some new research into this. We have tried hosting stands in shopping centres and direct mail campaigns to attract the residential customer. “We now have around 2,500 domestic customers and we see it as a totally different marketplace in terms of how we operate. We offer both 12 litre and 19 litre bottles - surprisingly the 19 litre bottle has proved more popular. “The feedback we have from people with a cooler in the home is fantastic. They tell us their children are drinking lots of water and it is so convenient. But making residential customers realise they would like a cooler in the first place is the tough bit. “We estimate there are around 100,000 customers drinking from our water coolers in the workplace, so cross selling to these people in the home is a vital part of growing the residential side.” Do you offer any other products in the home? “We did have a link with English Wines which was quite successful but when we looked at our key hydration message, this was a bit at odds with it! We do deliver the small pack water, sports bottles and apple juice to customers.” Will this residential sector be profitable enough? “The potential is massive. We don’t see it as a rental market, it’s more about how efficiently you can distribute. It’s also not such a price sensitive market. The historical price cutting which goes on in the office sector does not really apply. I think you need a minimum of 10,000 residential customers to make it really profitable.” As the hydration message and importance of water becomes more mainstream, will this will help the home delivery side? “We took a long look at our business last year and conducted a complete review regarding this. The hydration issue is still an area which we feel is not taken seriously enough. People pay lip service to hydration but are not really that passionate about it. This in an area where we have even commissioned scientific research to prove the benefits of hydration. We really want to know what we are talking about and building our fact base. There is a huge amount of information about water and cancer, heart disease, benefits for the elderly and children and so on.” Are you favouring bottled water in your focus on healthy hydration? “Not at all. We would never knock tap water. At the end of the day, people need to be hydrated full stop. The message is more important than where the water comes from.” Do you work at all in the hospital and schools sector? “We do a lot of work with schools and hospitals here in Kent, with both bottled coolers and point of use. We also have several research projects underway looking at the tangible benefits of hydrating children in the classroom. As a major player in the UK market, how do you compete? “We have always focused heavily on customer service. We must not let our customers down. If they see our messages about healthy hydration and then we don’t deliver water on time, this is deadly for the business.” “Good service really pays off - around 70% of our new business is recommendations or additions from existing customers. “One of the best things about our company is the people. We have route drivers who have been here since the very beginning and a lot of key people who have been here for over ten years. I would say we are all quite passionate about the business.” Do you think the UK cooler market is in a healthy position now? “I would like to think there is a less of a focus on slashing prices to win business in today’s market. There will be companies who have done this and are not making money as a consequence. “The frustrating thing is that to give good service costs money - and companies need to make a profit. We try to invest a lot of money back into the business to improve service, but when we are competing with silly pricing, it is difficult. Are you involved in any other businesses today? “We do have a series of joint ventures - Edgars Cool Water, just outside Brighton, Office Watercoolers South West and Waterline London, based in North London - which came more out of friendships and desire to help others in the industry, than financial gains. We chose to set up joint ventures rather than have franchises because it’s all about the people; each business is run by people who are passionate about what they are doing.”