Pepsi Confesses: Aquafina is Tap Water

When was the last time you bought bottled water? If you are like most health conscious Americans, it was in the last week. Stores all across the country have ramped up their supplies of bottled water as people have made the healthy choice of replenishing their bodies with water as opposed to Gatorade or a carbonated soda. With that increase in demand, companies like PepsiCo raised their prices and saw profits skyrocket as consumers continue to purchase bottled water. But with the recent announcement that Aquafina was derived from municipal water sources, PepsiCo may be looking for new revenue sources.

With a market reaching over $11 billion in 2006, bottled water is a viable source of revenues for companies like PepsiCo. With analysts believing that sales are set to increase consistently above ten percent for the next few years, things may change when consumers find out that there is little difference between the water they pay for and the variety that is free-flowing from their kitchen faucet.

Under mounting pressure from a corporate accountability group, PepsiCo, the parent company of Aquafina has announced a label change to properly reflect the source of the Aquafina bottled water. Currently the label says P.W.S. With a label like that, consumers hardly know that, that means the water came from a Public Water Source. Imagine that, the label says the water you are willing to pay two dollars for came from a municipal water agency, likely an underground aquifer. Organizations like the accountability group are pushing for reform amidst concerns about the methods used to extract municipal water and the environmental impact of the usage.

Corporate Accountability International has spearheaded a campaign against deceptive marketing practices by bottled water sellers who have been less than forthcoming with consumers about where their water comes from. With PepsiCo acquiescing, the group will focus its attention on The Coca-Cola Co and the Nestle Co. who are the second and third largest sellers of bottled water.

Dasani, the Coca-Cola owned water specifies that its water comes from local water supplies before it is filtered then distributed for sell. The group is pursuing pushing Coca-Cola to be more specific than that statement. Coca-Cola on the other hand believes that its current wording is specific and detailed enough to clarify exactly where it generates its water from.

Nestle on the other hand, has been printing new labels for its Pure Life brand of bottled water. According to executives the move had little to do with pressure from any external forces. The company made the decision based on the desire to specify whether the water came from a municipal source or ground water. With the labels in production, the new bottles should reach consumers reach by the end of the year. Pure Life is the only Nestle brand that uses public water sources.

Some cities have begun campaigning against the bottled water industry. Cities like San Francisco and New York City have launched community initiatives to shed light on the impact of bottled water and the benefits of municipal water. Ann Arbor, MI took the bold step of eliminating commercially available bottled water from city functions. Salt Lake City officials asked government leaders to eliminate bottled water.

The question that is left in the debate is what consumers will do in the face of finding out there is little tangible difference between tap water and the readily available variety at their local supermarket. Some believe that because of convenience, little change will be had. Others contend that consumers will make the switch to tap water. One can only imagine a person stopping on a hot summer day for a swig of tap water out of a drinking fountain in downtown Los Angeles as opposed to purchasing a bottle of ice cold Dasani.

The fallout of the label change will undoubtedly have an affect on the bottom line of companies like PepsiCo and Coca-Cola. With health and the environment such massive issues for people, consumers will make the necessary choices according to the conscious. At the same time, investors will have to make a similar choice. People read labels. Otherwise, PepsiCo would have tagged Aquafina as something other than P.W.S.