UK-based Manchester Rusk Company Ltd (MRC) is responding to the growth of internet shopping by launching a new online shop for its Flava-it brand of marinades and coaters. Customers wanting to add flavours to meat and vegetables can now log on to <<1>">www.flava-it.co.uk]<1> to buy a selection of marinades such as Chinese Style, Barbeque, Hot & Spicy, Garden Mint and Tikka Masala and Peppersteak Coater. To help customers make the most of the marinades, recipe ideas such as Sizzling Barbecue Beef with a Smoky Tomato Relish, Chinese Chicken Pitta Pockets and Spicy Bean Salad with Hot & Spicy Potato Wedges, can be downloaded for free. The site also carries product news and information on stockists of the Flava-it range as well as details about the development of new products. MRC hopes that the new initiative increase brand awareness both at home and overseas, while also attracting interest from internet shoppers and retailers. MRC Marketing Manager Julie Nyunt said: "It is vital we keep abreast of modern purchasing habits. More and more consumers are using the internet to buy goods and have them delivered to their homes, so we want to respond to that growing trend." She added: "The online shop also gives us access to a wider customer base, potentially attracting more orders from overseas clients as well as from those within the UK. And of course it makes it a very convenient way for our customers to keep stocked up." <1>: http://www.flava-it.co.uk

The UK juice bar specialist Crussh has partnered with carbon management specialists Carbon Clear to eliminate its carbon footprint and help support two projects that not only benefit the environment but also local communities in India and Central America. Crussh is also finding ways to reduce the impact its packaging has on the environment; paper pulp from sustainable forests and environmentally friendly soya inks are now being used by Crussh for its promotional materials. It is also introducing a recycling scheme for all the Crussh juice bars and to encourage customers to recycle their rubbish, plus investigating a special new biodegradable cup made from cornstarch. "At Crussh, we've always been committed to our customer's health," said Crussh Managing Director Chris Fung. "Now we're able to help make our planet healthier too. These projects not only work to eliminate our carbon footprint but also help to fight poverty, advance education and improve health in developing countries." About the projects The first project Crussh is supporting is The International Small Group & Tree Planting Program (TIST) in Tamil, India. This project aims to combat the problems of deforestation and simultaneously provide education and health benefits to local farmers. Since 2002 the small groups funded by TIST have planted more than 500,000 trees in India. The second project is helping the brick-making industry in Nicaragua to reduce its carbon emissions by 25,000 tonnes over the next five years. Creating more efficient brick kilns will not only reduce CO2 levels but stop forests from shrinking and encourage local entrepreneurs.

EnWave Corporation announced that it has successfully applied its Radiant Energy Vacuum (REV) technology to dehydrate probiotics and enzymes used in the food and fine biochemical industries. The company has now conducted a range of internal and third party tests to determine the feasibility of using REV technology in dehydrating probiotics and enzymes. As with other REV applications, EnWave is seeking an alternative to the industry standard of freeze drying, which is time consuming, expensive and can require constant refrigeration of the end product during storage and shipment. If successful, commercial scale dehydration of probiotics and enzymes using REV would serve to reduce manufacturing and distribution costs while improving retention and shelf life of live material in the end product. EnWave Chairman and Co-CEO Dr Tim Durance stated: "EnWave has received encouraging results from our research in using REV to dehydrate probiotics and enzymes in small vials, and additional research will now be undertaken to refine the process and design equipment suitable for meeting commercial processing requirements in this industry." Enzymes Enzymes are proteins occurring in nature that help speed up biochemical processes. In the food industry, they are used in the production of everything from wine and cheese to corn syrup and baked goods. Enzymes allow food manufacturers to produce more of a particular product in a shorter amount of time, eliminate the need for harmful chemicals in the production process and in some cases reduce water as well as energy consumption. The $4.1 billion global enzyme market is forecast to grow 7.6% annually through 2011, according to The Freedonia Group Inc – a Cleveland based industrial market research firm. Probiotics Probiotics are `friendly' bacteria that reside in the intestinal tract and are commonly added to foods such as yogurt and other dairy products to promote good health. A growing number of studies suggest that these tiny, living organisms fight digestive disorders and boost the ability to ward off some infections. While they thrive in dairy products, probiotics are difficult to keep alive in a dry environment. As a result, food manufacturers are continuing to look for new technologies that will convert live, active probiotics to a dry format in order to introduce a wider range of probiotic fortified food products such as cereal bars, dry cereals and snack foods. According to BCC Research, the US market for probiotics reached $764 million in 2005 and is expected to increase at an average annual growth rate of 7.1% to $1.1 billion in 2010. Future goals EnWave's goal is to develop new REV technology capable of dehydrating probiotics and enzymes using a continuous bulk powder processing method. The initial proof of concept, expected later in 2008, will be used to determine the feasibility and commercial scalability of the technology. A successful bulk powder processing method for dehydrating food cultures will also compliment EnWave's current work in the pharmaceutical field where freeze dried bulk powder processing is widely used in pharmaceutical production including antibiotics and certain types of vaccines and antibodies.

Experts and the bottled water industry are confident that technical and safety measures used to produce and process bottled water are effective in protecting from pharmaceutical contamination. A recent Associated Press article reports that trace amounts of pharmaceuticals have been found in some US municipal drinking water systems. The International Bottled Water Association (IBWA) would like to remind consumers that bottled water is not simply tap water in a bottle and that the safety and quality of bottled water produced in accordance with US Food and Drug Administration (FDA) standards do not pose a health risk due to pharmaceuticals or other substances. Bottled water is comprehensively regulated as a packaged food product by FDA. Bottled water companies use a multi-barrier approach to bottled water safety, which includes source protection, source monitoring, reverse osmosis, distillation, filtration and other purification techniques, ozonation or ultraviolet (UV) light. The combination of FDA and state regulations, along with a multi-barrier approach and other protective measures, means that consumers can remain confident in choosing bottled water. Stephen C Edberg PhD ABMM at the Yale University School of Medicine stated that consumers should be confident in bottled water as a safe beverage choice. Dr Edberg said: “The technical and safety measures used to produce and process bottled water are extremely effective in protecting the product from these and other substances that were reported in the article, should they be present in source water to begin with. This report raises no concern for the safety of bottled water.” Safety Consumers should also consider these additional measures, which help ensure the safety and quality of bottled water: – Bottled water is fully regulated as a packaged food product by the FDA and bound by administration's quality, safety, inspection and labeling requirements. – Bottled water is not simply tap water in a bottle. FDA and state governments recognize both groundwater and municipal water systems as legitimate and valid sources for bottled water production. There are specific labeling and other standards to help ensure that consumers are aware of the type of bottled water they choose. – Bottled water companies that use municipal source water treat and purify the water by employing processes such as reverse osmosis and distillation before it is bottled and delivered to consumers as a packaged food product. The product will be labeled as \`purified water' or alternatively \`reverse osmosis water' if it is treated by reverse osmosis or `distilled water' if it treated by distillationThese processes are effective in removing pharmaceuticals and other substances, if they are present in the source water to begin with. – If bottled water is sourced from a municipal water system and has not been further treated, FDA requires the label to state that it is from a municipal or community water system. – Bottled water products, such as mineral water, spring water or artesian water, come from well-protected, underground water sources that are not under the direct influence of surface water such as rivers or lakes, which are the source for many community water systems. – Bottled water products are required to comply at all times with FDA Standards of Quality. As with other food products, bottled water is subject to the food adulteration requirements of the Federal Food, Drug, and Cosmetic Act and is also subject recall and the full array of FDA enforcement actions, including warning letters, civil (seizure or injunction) and criminal penalties. – In addition to federal and state regulations, members of the IBWA are required to adhere to standards in the IBWA Bottled Water Code of Practice that, in several cases, are stricter than FDA and state bottled water regulations. The IBWA Bottled Water Code of Practice is enforced through a mandatory, annual, unannounced plant inspection by an independent, third party organization. * Measures* The following measures are employed by IBWA member bottlers to help ensure the safety of the bottled water brands they produce: * A multi-barrier approach* – Bottled water products are produced utilizing a multi-barrier approach, from source to finished product, that helps prevent possible harmful microorganisms or chemicals, such as pharmaceuticals, from contaminating the finished product as well as storage, production, and transportation equipment. Measures in a multi-barrier approach may include source protection, source monitoring, reverse osmosis, distillation, filtration, ozonation or UV light. Many of the steps in a multi-barrier system may be effective in safeguarding bottled water from microbiological, chemical, and other contamination. Piping in and out of plants, as well as storage silos and water tankers are also maintained through daily sanitation procedures. In addition, bottled water products are bottled in a controlled, sanitary environment to prevent contamination during the filling operation. HAACP controls – IBWA members are required to employ a HACCP (Hazard Analysis Critical Control Point) approach to quality assurance. This practice scrutinizes every step of the production process, from source to finished product, that are critically important to the safety of the product and puts in place systems to help ensure that all safety and quality control processes are functioning effectively. Identification of risk and severity of health effects and control measures for specific biological, chemical and physical agents are included. FDA considers HACCP a comprehensive method for assuring product safety. Sources and facilities are secure and monitored – Bottled water products from groundwater sources, such as spring water or artesian water, come from well-protected, underground water sources that are required by FDA regulations to be free of direct influence of surface water contamination. The water is collected at sites and bottled at facilities with security systems that may include controlled access to the plant and critical production areas, gating, motion sensors, electronic contact security alarms, and tamper-proof locks. Water intake systems are sanitary and sealed. For brands that utilize community water systems as their source, bottlers work in concert with community water authorities to ensure the security and safety of the system’s source and the community’s water and employ equivalent security measures at the bottling plant.

There are fewer surprises these days than there used to be, given the modern habit of trailing some of the budget proposals in advance. Also, many of the announcements are long-term announcements, which won’t take effect straight away, and which will therefore give business more time to prepare. We listened in vain for the announcement of a reduction in the rate of VAT charged on fruit juice and smoothies. A glass of fruit juice can count towards the five-a-day target for fruit and vegetables in the diet, but also carries VAT at 17.5%. The government is therefore encouraging and discouraging fruit juice consumption at the same time. We had hoped that the government’s tax policy and its health policy would be brought into line. Sadly, not this year. The increasing cost of energy Turning to environmental measures, there was a range of proposals that will have an impact on our industry as a whole. Most notably, the power companies will have to pay for their permits under the Emissions Trading Scheme, rather than being given them for free as is the case at present. This will increase the cost of energy. But this is also one of those proposals that will start in years to come – in 2012, in fact – but for which we need to start preparing now. The other eye-catching things in the budget, such as charges for plastic bags in supermarkets and an increase in fuel duty, are part of the overall drive to increase the cost of resource use with the aim of helping the environment. The soft drinks industry is already working to reduce its environmental footprint – plastic bottles are 30% lighter than they were 15 years ago, for example – so we will respond to these new challenges as we have the previous challenges. Becoming more resource- and energy-efficient is second nature to the soft drinks industry. Finally, there's the increase in duty on alcohol. The chancellor wants to make it less affordable, as a reaction against binge drinking. We hope that the government will also welcome the social role that soft drinks play as a refreshing and responsible alternative to alcohol. A growing range of adult-oriented soft drinks provides a credible option in pubs and clubs, as the industry strives to meet the demands of its consumers. Whatever the ups and downs in the economy, and the chancellor is certainly forecasting those in the years to come, the soft drinks industry will remain on hand to refresh the nation, providing choice that consumers want and the drinks that they like.

The winners have been revealed for the 2008 dairy innovation awards, hosted at the Grande Bretagne Hotel in Athens, Greece. Tara Dairies of Israel and ingredients company LycoRed took the top Cream Award in the dairy innovation awards 2008, with YOU – a range of fortified dairy products targeting women 30-40 years old. With categories for dairy drinks, desserts, cheese and children's products, along with categories for health, packaging, school milk and marketing initiatives, the awards attracted more than 90 entries from 21 countries. The awards were organised by Zenith International Publishing through its dairy innovation magazine. Other winners The** Best New Dairy Drink** prize was awarded to naturally gorgeous from the UK for its dairy and fruit drink containing an appetite suppressant. The Best New Dairy Dessert category was won by Canadian dairy company Saputo, with Le Coeur du Nectar – a soft, unripe cow and goat milk cheese with a fruit blend topping. Fayrefield Foods of the UK took the Best New Cheese title with its Spoilt Cow mature Cheddar cheese, featuring the RSPCA's Freedom Food scheme logo, while Little Dish Custard Desserts, also from the UK, won the Best New Children's Product category. As well as taking the top award, Tara Dairies won the Best New Health Initiative category, while the Best Packaging Initiative went to Italy's dipileg pot with incorporated spoon, designed for yogurt, fromage frais and dairy desserts. A new category was the Best Newcomer Brand or Business, and was won by US-based WheyUp (entered by Edge PR). The company represents a breakthrough in the sports drink market: WheyUp is the first drink of its kind to combine whey protein isolate with a sugar-free, non-carbonated energy drink. The Best School Milk Initiative came from the Danish Dairy Board with a 160-page handbook, produced in cooperation with school leaders, teachers, psychologists and parents' organisations, and distributed to parents through schools. UK agency Weiden and Kennedy won the Best Marketing Campaign category with Good Food Deserves Lurpak, a campaign designed to grow the Arla Foods brand in a declining category. "Our second awards attracted a wide range of entries from around the world," said dairy innovation editor, Geoff Platt. "These entries came from dairy companies and organisations both large and small, but all illustrated the high level of innovation, the high quality of the work and the diversity of activity that's going on in this exciting industry. "These awards also recognise the dedication and enthusiasm of people working in this industry – some working in very difficult and challenging circumstances." Click here for the <1>. Click here to view our <2>. Click here to go to our <3> in the FoodBev interactive section. Contact ZIP Syndication if you want to use any stories, pictures or graphics or any other material you have seen relating to the dairy innovation awards 2008. <1>: http://dairy.foodbev.com/dairyawards2008/ <2>: http://www.flickr.com/gp/24670467@N03/3j4PF7 <3>: http://av.foodbev.com/absolutevc/default.aspx?c=17

Last week Danone suggested merging Wahaha's other businesses, but this week Wahaha rejected the plan. Talks that had been part of the now one month extended negotiations may have now come to their end. Dow Jones Newswire reported (4 March) on Danone's plans to suggest a merger between the joint-venture and the rival companies run by Wahaha Founder and Chairman Zong Qinghou. Ownership of the Wahaha trademark and Danone's allegations that Zong was illegally selling products that were identical to those sold by the joint-venture, is central to the dispute between the two beverage giants. However, Wahaha has rejected the new merger proposal because it claims Danone wants to ensure at least 50 billion yuan ($6.9 billion) in market value if its shares in the new company are lower than 40%. Zong responded by saying that "those proposals and conditions are groundless, and we cannot possibly accept them." A peaceful resolution to the ongoing dispute now seems to be in jeopardy. In a report published by China Daily Zong added that he had no idea whether talks would continue.

*The UK bottled water industry was rocked by an unprecedented wave of adverse media attention in mid-February 2008. This focused its largely misinformed judgments on the quality, cost and environmental impact of bottled water. Even Britain’s Environment Minister, Phil Woolas, joined in the scathing attacks by describing bottled water as daft because tap water is so good. * Fortunately, the disproportionate and misguided criticism was challenged on many occasions by several respected guardians of the bottled water industry. water innovation (issue 47) collates the views of such experts to address the validity of five notorious claims made about bottled water. 1. Bottled water doesn’t taste any better than tap water Evidence to support or oppose such a claim is relatively subjective, but the jury is still out on how well municipal waters perform against bottled water brands. The assertion that tap water is better than bottled water came to the boil following a blind taste test at the end of 2007. A judging panel comprised of a respected wine correspondent, two top restaurant sommeliers and three beverage critics from Decanter magazine sampled 23 bottled water brands along with tap water from Thames Water, the UK’s largest municipal water supplier. The tap water was rated third, beaten only by Waiwera Infinity’s eponymous premium bottled water brand from New Zealand and Vittel from Nestlé Waters. However, if the best trained palates in food and drink couldn’t tell top bottled waters apart from plain tap water, is there any justification to cry wolf? The reality is that many consumers choose bottled water in preference to tap water. This choice may be based on taste or the reassurance that, in the cases of natural mineral water and spring water, the water has not been chemically treated. Furthermore, the discrepancy lies with impurities - such as iron, lead and limescale - or additives including chlorine that can make tap water taste less pleasant. Bearing in mind the ageing infrastructure of water pipes in the UK and the possible contamination between source and delivery, one can understand why water utility customers generally rate tap water below bottled water. High lead content in tap water is a particular concern as many pipes containing lead are privately owned, so regulations and standards are sometimes difficult to achieve. One high profile client, the Department of the Environment, Food and Rural Affairs (Defra), has reportedly gone to the trouble of fitting special hydrotaps, each costing over €1,500 ($1,860) on all eight floors of its London headquarters because civil servants dislike the smell and taste of tap water. A spokesperson for Zip, the hydrotaps’ maker, was not surprised that Defra had chosen to use the company’s products. He said: “People just don’t like the smell or taste of tap water. It’s the chlorine they use.” Meanwhile, a closer investigation of the Decanter blind water tasting event has revealed that water was taken directly from a resident’s tap from Kensington with good quality pipes. Although not reflective of tap water across London, the sample was at least sourced further downstream than the treatment plant. However, a spokesperson for Decanter magazine told water innovation that the tap water sample was slightly chilled and that a different verdict may have been delivered if all the waters had been drunk at a higher temperature. * 2. Buying bottled water is a waste of money * The most expensive brand tested in the Decanter water challenge was priced at €65 ($100) a litre and came in at 18th place. When Thames Water costs £0.06 per litre, tap water is thousands of times cheaper than the most expensive bottled brands and also apparently better tasting than many of them. So is it any wonder that the media suggest that bottled water consumers are overcharged for the products they receive? Yet, while the average Briton uses 150 litres of mains water daily, only two to five litres is used for drinking. The rest is used for cooking, cleaning, washing and toilet flushing. Therefore, when comparing prices, it is worth noting that mains water has multiple uses. Bottled water on the other hand is only used for the provision of pure drinking water. It is also important to consider that the price paid for tap water is set by a Government agency, has benefited from taxpayer subsidies for many years and is not liable to VAT. It may not include the true commercial cost of water provision or fair inclusion of externalities such as environmental impacts. Conversely, the price paid for bottled water is set by the end retailer of the product - not the water producer - and is subject to 17.5% VAT in the UK. Needless to say, the British Government is being lobbied to positively discriminate in favour of healthy drinks, such as bottled water, by putting them on the same zero VAT rating as food generally. A counter argument in the bottled versus tap water pricing debate surrounds the issue of leakage. The UK water utilities leak more water in less than a day than the UK’s total annual consumption of bottled water (2.27 billion litres). The UK water utilities have argued that improving leakages would be uneconomical. Yet, in certain parts of the UK, notably the South East, the pressures on water resources are acute. To address acute water shortages in certain parts of the UK, significant capital investment would be required that would ultimately have to be borne by the mains water customer. Thus, if the major environmental impact of leakage were to be fully addressed, this would significantly impact mains water pricing. Free market forces are admittedly not perfect but it could be argued that they more accurately reflects the true cost of drinking water in developed economies. The focus of criticism seems to be the premium price tags of luxury branded waters sold through horeca channels. However, more affordable brands are widely available at retail stores and cheaper discount brands of bottled water sold through wholesalers are often overlooked completely when bottled water is attacked as a needless luxury. More importantly, bottled water does not compete with tap water by virtue of its product formulation. Tap water must contain an active disinfectant at the point of dispense while natural bottled waters must be micro-biologically safe to drink at source. In terms of its packaging, distribution channels and product characteristics, bottled water competes with other bottled drinks. Rather than casting unfounded assertions on bottled water, it would be better if the media devoted more attention to the positive aspects of hydration and health. With 60% of the UK population predicted to be obese by 2050, it is counter-productive to discourage bottled water consumption. As communities attempt to tackle childhood obesity and curtail the dramatic rise of binge drinking and yob culture, those who describe bottled water as 'morally unacceptable' clearly hold a blinkered view. You can’t take a tap out with you, so more consumers are swapping sweetened, high calorie beverages for bottled water, which can be consumed in adequate quantities to rehydrate the body without adding calories to the diet. Consumers love the portability of bottled water and the guaranteed purity it offers. These are the main reasons for its success. * 3. Producing bottled water is a waste of water* About one billion people lack clean water for drinking and 2.6 billion lack sanitation, according to UN estimates. Water experts predict that the situation will worsen in many parts of the world in the coming decades due to several factors including urbanisation and population growth, increasing food production, changing consumption patterns, industrialisation, pollution and climate change. The water usage footprint of 1 litre of bottled water is understood to be around 3 litres, compared to 140 litres for a 12.5cl cup of coffee or 190 litres for a 20cl glass of apple juice. While there has been no in-depth study to measure the embedded water footprint of bottled water, its water utilisation is the lowest of all beverages, since there are no agricultural water inputs and limited water processing inputs. The bottled water industry has also made giant strides in the improvement of production technologies in bottling plants. For example, Nestlé Waters UK reduced water consumption for its flagship brand Buxton by 17% in 2006, while increasing production by 11%. In 2007, the company made a €13 million ($20 million) investment in a highly efficient production line, which resulted in further reductions in water used during production. This is merely one national example of good conservation being implemented. There are countless other initiatives across the world which we have featured in previous issues, such as the recent UN accord signed by Nestlé and Coca-Cola to manage water use at manufacturing plants more efficiently. Under the UN programme, called the CEO Water Mandate, the company executives pledged to take immediate action to address the emerging global water crisis. Together they launched a project designed to help companies better manage water use in their direct operations and throughout their supply chains. There is huge potential for the private sector to make a real, positive and lasting difference in protecting and preserving fresh water resources by making progress in six areas: direct operations, supply chain and watershed management, collective action, public policy, community engagement and transparency. As mentioned earlier, a single day’s mains water leakages are greater than the total UK bottled water consumption in a full year. Undoubtedly, it’s a shame that drinking water is used for gardening or to flush the toilet. Worse, water is drawn from a tap for a short while before consumption to avoid less pleasant water which has been left standing in lead pipes. The water utilities provide an excellent product and a good service with a historically under funded infrastructure. Yet the issue of water conservation is broader than attacking a provider of water or pointing the finger of blame for environmental woes at different industries. All of the business community will need to partner with governments, policy makers and public action groups to address water shortages and sanitation. Ultimately, everyone will need to work together and play their part in supporting water efficiency practices to protect a water legacy for current and future generations. 4. Bottled water production contributes toward global warming Latest estimates place the bottled water industry’s carbon footprint at around 200,000 tonnes of carbon, some 0.1% of total UK carbon emissions. Danone Waters UK & Ireland uses a combination of rail, sea, and road transport to move products from the sources where they are bottled in France to UK customers’ warehouses. The company reports it uses the maximum possible amount of electric rail routes in France, which offer highly efficient large scale loads for goods transportation. Since 2005, Danone has increased the proportion of miles its products travel by train from 59% to 70% of the total distance. Meanwhile, more than 90% of the bottled water produced by Nestlé Waters globally is consumed in the country of origin. Nestlé Waters’ UK international brands use rail and shipping as their primary mode of transport. This has been a major component of significant reductions in the carbon footprints of Evian and Volvic. On a worldwide basis, Danone has achieved a 30% reduction in the average weight of its PET bottles over the last 15 years. In the last three years alone, the average weight of Evian and Volvic bottles reduced by 11%. In addition to ongoing projects to reduce the weight of packaging materials, Evian and Volvic will progressively introduce recycled PET into the manufacture its bottles during 2008. Approximately 75% of bottled water consumed in the UK is produced in the UK. Most imports are from West Europe, mainly France, Ireland, Italy and Belgium. Exotic long distance imports such as Fiji are negligible. Thus, despite common misconceptions to the contrary, bottled water often travels much smaller distances than most other food and drink products. Natural Waters of Viti, the company which manufactures Fiji Water, said its water only comes by ship which was scheduled to make voyages with or without the company’s bottled water on board. The company has committed to reducing actual carbon emissions 25% by 2010 and is offsetting 120% this year. It is important to note that PET bottles are 100% recyclable. Unfortunately, the UK has one of the lowest consumer recycling rates in Europe. Government landfill waste reduction targets tend to be defined by weight, which means that heavier materials (glass, for example) provide more attractive areas of focus for the waste management industry. Soft drinks manufacturers are currently exploring opportunities to work with local authorities on initiatives to improve PET recovery and recycling. Lightweighting has been occurring since PET bottles were produced in the beverage market and companies continue to roll out lighter bottles year on year. A reduction of 10% of bottle weight for the whole range of PET bottles in the UK would achieve a reduction of PET usage of 20,000 tonnes and a reduction in CO2 production of 7,200 tonnes, according to Nextek. Recent press debate over the environmental impact of bottled water versus tap has ignored the embedded carbon footprint associated with the vast scale of the water collection, purification and distribution of public water supplies, plus the collection, treatment and recycling of sewage necessary to maintain supplies. The renewal of much of the UK’s water utility distribution pipes with MD PVC plastic pipes is in itself creating a carbon footprint associated with the unavoidable use of petro-carbon based products. The repair of leaks creates its own ‘repair miles’ and its own carbon footprint from the use of vans, generators, floodlights, drills, diggers, road repair materials etc. The carbon footprint of water leaked from the public supply is said to be almost 450,000 tonnes of carbon each year. This is over twice that of the bottled water industry. 5. Bottled water doesn’t play a beneficial role in society This is a fairly easy myth to debunk. It is a matter of record that, in national emergencies, the UK bottled water industry provides an essential back-up to the water utilities’ emergency supply arrangements. Last summer, Britain experienced its wettest summer in living memory. Emergency workers fought to hold back overflowing rivers as the worst floods in 60 years engulfed towns and villages, mainly in central England. At the height of the flooding, hundreds of thousands were left without drinking water and bottled water was relied upon as an inherently safe and portable solution. The benefits of bottled water are not limited to applications when there are disasters such as floods. Besides providing a living for around 20,000 people in the UK, there’s plenty of evidence to suggest bottled water manufacturers have a strong social conscience. Some critics are particularly concerned about water being imported to Britain because of the potential damage to supplies in other countries. However, even bottled water producers that face intense scrutiny have a compelling sustainability story to tell. Fiji Water has been working with the Pacific Water for Life Foundation to fund water projects in over 100 local communities each year. Many of the typhoid cases that happen in Fiji occurred after severe flooding took place following a cyclone. Safe drinking water is just one part of the equation. Developing proper sanitation and infrastructure is critically important as well. Fiji Water provides thousands of cases of water a year to local villages in Fiji who have been hit by cyclones or flash flooding to provide immediate access to clean, safe water. The company responded to the suggestion that exporting water somehow reduces access to this recious resource by reiterating that the export revenue from Fiji Water is paying for the expansion of water access at a pace that Fiji’s government could never achieved. If Fiji Water didn’t bottle the water, the underground flow would simply run into the ocean and fewer people in Fiji would benefit from access. Companies active in the UK bottled water market - notably Danone and Nestlé - are committed to measuring, improving and reporting on corporate responsibility. Additionally, the bottled water industry is at the forefront of offering positive ethical actions as an integral part of its business. For example, there is the Volvic 1 litre for 10 litre initiative by Danone Waters UK & Ireland, which provides mechanised wells in across Africa; Highland Spring’s fundraising partnership with Breast Cancer Care; and initiatives from British bottled water companies Frank Water, Global Ethics (with its charity brand One) and Waterbrands (Thirsty Planet) to fund clean water projects in India and Africa from profits.

Soft drink maker AG Barr is to expand into the burgeoning market for functional beverages and waters with the acquisition of the Vitsmart and Vitaminsmart labels from brand management company charteredbrands. Vitsmart was reformulated and repositioned and gained UK listings with Tesco and Sainsbury’s. The acquisition of the brands, which include both a vitamin enriched water and a range of fruit based drinks, will allow the group to further diversify into the market for nutritious and healthier beverage alternatives. Such a move by the UK based soft drink maker, which produces the Irn Bru and Strathmore mineral water brands, highlights the growing potential of the functional beverages market to manufacturers amidst a backlash against the traditional carbonated beverage. Group Chief Executive Roger White said that adding Vitsmart and Vitaminsmart to its product portfolio would give the group an instant footing in the UK functional market. “The brands will allow us a credible early entry into this rapidly growing sector with great brands and products which have existing retail distribution and consumers. We plan to accelerate the development of our activity in this sector and believe this acquisition gives us a strong foundation,” he said. Charteredbrands saw the future trend toward functional waters in 2006. Vitsmart was formulated and positioned in 2007 and gained national listings with Tesco and Sainsbury’s. The drink contained 50% of the recommended daily allowance (RDA) of vitamins in its 50cl bottle. Charteredbrands CEO Gervase Cottam commented: “We are delighted with the successful sale of Vitsmart. Since Coca-Cola bought the vitamin water producer glacéau for $4.2 billion we could see that the market will accelerate rapidly in 2008.” In a second deal, completed at the end of 2007, charteredbrands also sold its share in Isklar, the Norwegian glacial mineral water, to its two business partners in this brand, Jova Holdings, the Norwegian shipping and logistics company and the food and retail Omani company Sabco. charteredbrands Brands Director Angela Pirrie provides the lowdown on Vitsmart * Quick turnaround “The product was originally developed as a medicinal product before we took control. We changed consumer positioning, reformulated the product (removed sucralose) refined packaging and addressed all aspects of marketing – effectively turning the brand around ready for sale a year later.” *Consumer insight * “Functional water is still a relatively new category. It’s still poorly defined but the market has moved forward within the past year with consumers gaining more understanding about functional foods as a whole. “We did our own research to find out where the optimum positioning would be in terms of functional drinks. We identified progress could be made by developing a water drink with added vitamins rather a vitamin drink that happens to be a water. We positioned Vitsmart positioned as a simple entry level choice in the spectrum of functional drinks.” * Taste test * “A good taste is very important. There are lots of functional waters which arrive in the market with a poor taste and consumers won’t go back. So taste and refreshment are key.” * Vitamin dosage* Our research found consumers wanted a clear benefit from a single functional ingredient with clear communication on what that dosage is – you could have 100% Recommended Daily Allowance (RDA) of vitamins but consumers told us they were concerned about overdosing if they drank more than one of our products. * Back to basics approach* “The original drink we inherited had botanical ingredients and different flavours, aimed at different mood states and consumption occasions which offered far too many choices for consumers. “They want to choose by flavour but get the same benefits. So we simplified the proposition down to three great tasting flavours and one big benefit which is 50% RDA of vitamins. "Lots of competitors at the far end of functional drinks are moving into the market trying to tap into one part of your day – as a pick me up or revitalisation and confusing this proposition with flavour and complicated ingredients.”

Cadbury Schweppes of the UK has finally chosen May as the month in which it will split its global confectionery business and its American beverage operations. Assuming the management’s plan is approved by stockholders at the annual meeting on 11 April, shares in the confectionery business – to be renamed Cadbury plc – will be listed on the London Stock Exchange on 2 May. Shares in the Dr Pepper Snapple Group (DPSG) – formerly known as Cadbury Schweppes Americas Beverages (CSAB) – will be listed on the New York Stock Exchange on 7 May. Cadbury first announced it would separate the two businesses in March last year. The company said both operations would be more successful as independent companies. However, market observers speculated that the move had also been prompted by so-called `activist investor' Nelson Peltz, whose Trian company owns about 4.5% of Cadbury Schweppes. Peltz is known for pressuring managements to pay back more to shareholders. Cadbury’s original hope was to sell off CSAB to a private equity group. But that plan had to be abandoned when the global credit crunch made it difficult if not impossible for would-be buyers to raise the necessary finance. In October, the group’s management said it would instead establish the confectionery and soft drinks operations as two independent businesses, with existing shareholders being issued stock in both companies. Cadbury has secured $3.8 billion in loans from five major banks – JP Morgan Chase, Bank of America, Goldman Sachs Credit Partners, Morgan Stanley and UBS – to fund the demerger, and ensure that DPSG is financially viable as an independent entity.

Water resources in the Middle East are under increasing pressure. Population growth in the region is predicted to be around 2% a year. This rate suggests that, by 2025 at current levels of consumption, the region will need four times as much water as is available from natural sources. Water scarcity has an impact on many aspects of the economy of the region, from the necessity of relying on imported food to the development of industries that use less water. The reliance on importing food from outside the region has reduced pressures on water resources by exporting the need for water. For example, to produce a tonne of grain requires around 1,000 tonnes of water. So importing a tonne of grain saves this water locally. Ironically, this may have slowed the development of water efficient technologies in the region. As pressures on world food production increase, this policy of exporting water demand may become less viable. *So what can be done? * As pressures increase, sustainable water resource development will become more important and more sought after by governments. Sustainability in this sense means using only what is available, reducing the demand and reusing water is different ways, such as in grey water systems or through water recovery from wastewater treatment. Saudi Arabia, for example, has recently changed the law to allow the use of treated effluent to irrigate crops for human consumption. In UAE, city municipalities are using treated effluent for municipal irrigation and are changing from spray irrigation to trickle irrigation, which is proven to increase soil water availability while reducing evaporation. Pressure on resources Will this increase in pressure on resources have an impact on the bottled water industry? Groundwater from sustainable supplies will be required if the industry is to continue using natural sources. Water sourced from areas where there is sufficient recharge can be considered sustainable, and some of the volume required to feed the market is likely to be recharged. Where there is very low rainfall, such as in much of Saudi Arabia, water abstraction is likely to exceed recharge rates and is therefore unsustainable. The other main source of water is from desalinated seawater; while sustainable with respect to water, desalination requires significant energy and therefore cost. Despite this, desalination is considered the shining hope of the region’s requirements for potable water. This, in turn, will move the pressure from water to energy. Whatever is done, it is clear that the growing pressures on water supply are only going to increase. Both practical and technical solutions will be key in managing resources, both now and in the near future. * Ric Horobin biography* Dr Ric Horobin, Zenith International Water & Environment Director, has degrees in geophysics and hydrogeology, devoting his working life to environmental issues. His specialised team manages projects all over the world focusing on hydrogeology, hydrochemistry, microbiology and groundwater engineering.

With no sign of the public’s taste for cider abating, expect to see premium ciders the drink of choice to accompany barbecues this summer, says Merrydown Managing Director Chris Carr. “There’s huge synergy between barbecues and cider – both are growing year on year and the season for enjoying them is getting longer. Cider is no longer considered a drink solely for summer. Sales are strong all year round,” says Carr. “A good quality premium cider, made with the juice of eating apples, is not only refreshing in hot weather but also stands up well to the robust flavours of barbecue food.” The stylish, 1 litre glass bottles of Merrydown’s 7.5% Vintage Dry are designed for table top use while Merrydown Gold, a 5% ABV cider, is suited for drinking straight from the 500 ml bottle on al fresco occasions. Merrydown Vintage 440 ml cans complete the `family'. But it is the liquid inside that sets Merrydown apart, says Carr. “Our new marketing message is `Made with Love' – and it’s completely true. Merrydown Vintage is made by expert brewers to the same Sussex recipe perfected more than 60 years ago. We care passionately about the taste and quality of our ciders. We use the juice of real eating apples and Champagne yeast in the brewing process and there are no artificial colourings or sweeteners.” A summer marketing campaign will pitch Merrydown ciders as the perfect partners to food. The theme will be extended through Merrydown’s consumer friendly website and national press activity.