OK, they do filter it, but its source is now labeled as "P.W.S." (Public Water Source). PepsiCo Inc. has come clean about its best-selling bottled water, it announced on Friday it would change the Aquafina label to make it clear that the water comes from the same source as tap water.
"A group called Corporate Accountability International has been pressuring bottled water sellers to curb what it calls misleading marketing practices. The group has criticized PepsiCo over its blue Aquafina label with a mountain logo as perpetuating the misconception that the water comes from spring sources. Wholesale sales of bottled water grew to $11 billion in 2006, according to the Beverage Marketing Corp., and the industry is expected to maintain growth rates of about 10 percent. The fastest growing segment of the industry is sales of bottles of less than 1.5 liters, which includes the individual serving sizes sold in many convenience and grocery stores.
The decisions by Nestle and PepsiCo come as criticism grows over environmental concerns about the industry's use of local water sources as well as consumption of resin and energy to package and ship the bottles."
Implications - Ultimately, companies must take caution with their branding as to ensure no one consumer is mislead.
Rebranding Springwater as Tap Water
Pepsi to Rebrand Aquafina Without The Mountains
Trend Themes
1. Transparent Labeling - The rebranding of Aquafina to disclose its tap water source highlights the trend of transparent labeling in the beverage industry.
2. Consumer Advocacy - The pressure from Corporate Accountability International represents the growing trend of consumer advocacy groups challenging misleading marketing practices in various industries.
3. Sustainable Packaging - The criticism over the environmental impact of bottled water industry highlights the need for disruptive innovation in sustainable packaging solutions.
Industry Implications
1. Beverage - The rebranding of Aquafina showcases a potential disruptive innovation opportunity in the beverage industry to meet consumer demand for transparent labeling.
2. Consumer Goods - The pressure from consumer advocacy groups highlights the need for disruptive innovation in the consumer goods industry to ensure accurate and transparent branding.
3. Packaging - The criticism over the environmental impact of bottled water industry presents a disruptive innovation opportunity in the packaging industry to develop sustainable alternatives.