Economic Value versus Environmental Harm

Genevieve Amofah Bediako (MPH)Walden University

PUBH 6165-4- Environmental HealthInstructor: Stephen Arnold

Summer Quarter (2011)

The Dilemma Of Bottled Water Consumption

TABLE OF CONTENT Title and Aim of presentation Table of Content Abstract Research Methodology Introduction -About bottled water -More about water -Safety in the bottle -Earliest packaging types used -New face of bottled water(PET Packaging) Bottled water an Economic commodity -Economic commodity continued Divisions of the bottled water industry Top ten countries of bottled water consumption 2007 Global bottled water Market US bottled water Market Environmental concerns Plastic waste- A menace of bottled water consumption. -Continuation on plastic waste Bottle Deposit law- California Beverage Container

Recycling and Litter Reduction Act (AB 2020) Picture- Beautiful State of California

Environmental Air Pollution Tracing carbon footprints in bottled water

production Nestle water North America carbon emission

breakdown 2010 Nestlé's action plan to reduce CO2 footprint. Success of Nestles Waters Action Plan Contamination and Depletion of Ground Water

Sources. Regulation and regulatory bodies The Food AND Drugs Agency (FDA) regulations

on bottle water. Standards: The Safety in Bottled Water Standards: Quality Assurance process used by

Nestle waters Intervention models to address environmental

impact of bottled water.

Proposed Environmental Stewardship Measures.

Conclusion References

ABSTRACT

The emergence of bottled water is seen as a blessing in disguise: hailed as an economic gem at some point and attacked for being an environmental foe.Amidst these mixed reactions, one fact remains uncontested: that the bottled water industry is an invaluable sector of the global economy today. Successive progress and expanding market of the bottled water industry supports the fact that bottled water is a needed economic commodity. According to Beverage Marketing Corporation, worldwide consumption reached 41 billion gallons in 2004, an increase of 57% in five years; an even higher consumption of 53 billion gallons in 2009 representing a compound annual growth of 5.5%. In 2015, the global bottled water market is forecast at a volume of 182,782 million liters, an increase of 19.9% since 2010, representing an estimated global market value of $126,284.8 million, an increase of 27.1% since 2010. Environmentalists condemn bottled water as wasteful and deemed an “Eco-sin‟. This presentation will give an insight into this issue, discuss legitimate arguments of environmental impact of the bottled water industry; consumer views and bottling water companies will be analyzed. Potential interventions for addressing these issues are further discussed.

Bottled Water: Global Industry Guide 2011. Source: http://www.datamonitor.com/store/Product/bottled_water_global_industry_guide_2011?

Ideally, this presentation would have immensely benefited from direct objective views of consumers and distributors. Due to resource and time constraints, we relied on extensive online researches, literature reviews of experts and stakeholders of the bottled water industry. Harnessing available information, data from the International bottled water Association (IBWA), the Food and Drug Agency (FDA), Nestle waters North America and a host of valuable sources will be discussed.

Research Methodology

Introduction

-Commercialization of bottled water started in Europe in the 1700s -The early 1900s led to a global exportation of bottled water-The Americas begun bottled water production in the 1900s-Earliest brands include:Evian, San Pellegrino,Perrier,Vittel, Spas.

It began with European SpasEVOLUTION OF BOTTLED WATER

Bottled Water. Source:http://water.columbia.edu/?id=learn_more&navid=bottled_water

About Bottled WaterWater is classified as "bottled water" when it

meets all applicable federal and state standards, is sealed in a sanitary container and is sold for human consumption- International

Bottled water Association (IBWA)

The united states code of federal regulations- 21 CFR 165.110 ,

defines bottled water as drinking water with no additives, except for optional antimicrobial agents or fluoride.

Types: Mineral Water, Aquifer/Spring Water Distilled /Purified Water, Artesian Water,

Sparkling Water

Reference: What is bottled water. http://www.bottledwater.org/content/what-bottled-water; Posnick, L.M. Henry, K. February/March 2002 Ask the Regulators -- Bottled Water Regulation and the FDA. Source: http://www.fda.gov/Food/FoodSafety/Product-

HouseholdsWorkersTravellersAthletesEmergency Aids/Victims

Sources of Bottled water: Underground water &Public water systems

Why consumers choose bottled water:

The international bottled water association (IBWA) describes bottled water as a choice of beverage suitable for hydration, refreshment, safety, taste and convenience.

Sanitary and Healthy (No additives) Portability and Convenience Aesthetic Quality ( Taste & color)

More about Bottled Water:

Consumers of bottled water

Reference: What is bottled water. Retrieved from http://www.bottledwater.org/content/what-bottled-water

Routine sample testing is one of the many checks performed in bottled waterproduction to ensure its safety The promise of water purity in bottled

water is the success drive of the industry

Safety in the bottle

Earliest Packing Types Used

New face of bottled water(PET- Packaging)

CLICK FOR SOURCE

A commodity has economic value when people are willing topay for it.- People pay 1-$3 a gallon for bottled water (Lenzer, 1997)

Economic Value:Revenue generation (National GDP, Taxes)

- 200 billion bottles of water are consumed globally with an estimated 50 billion consumed in the U. S per annum.

- Americans spend $11 billion on bottled water every year

Retrieved from http://www.bottledwater.org/news/ibwa-rebuttal-corporate-accountability-Lenzer, R. (1997): “A monster beverage event”. Forbes Magazine, October 20, 1997.

Bottled Water: An Economic Commodity

Employment Creation 163, 000 job avenues-18,040 jobs in bottled water wholesale in every U.S state; over 89,050 employees in the retail sector

Over 530,000 supplier and ancillary jobs-256,000 jobs with supplier firms

Philanthropy and Social Contributions-Nestlé Waters North America's Good Neighbor Policy-Nestle sponsors of the ING New York City Marathon-Nestle partners with Canada’s Public Spaces Program

Economic value of bottled water-Continued

Reference: http://www.guerrillaeconomics.biz/bottledwatermatters/Methodololgy.pdfNestlé Waters North America Water and Financial Donations. http://npd.nestle-watersnasponsor.com/

Click for source

The Beverage Marketing Corporation defines the bottled water market segment as:

Retail PET

Retail bulk

Home and office delivery

Vending, domestic sparkling water

Imported bottled water brands

Divisions of the bottled water industry

Reference: "Smaller categories still saw growth as the U.S. liquid refreshment beverage market shrank by 2.0% in 2008”. Beverage Marketing Corporation reports“.(2009) . Retrieved from http://www.beveragemarketing.com/?section=news&newsID=111

Top 10 countries of bottled water consumption in 2007.

Data source: Beverage Marketing Corporation, 2008, in: International Bottled Water Association (IBWA)

Criticisms of the bottle water industry include:

Plastic waste and littering

The problem of carbon footprint

Depletion of public water sources

Environmental wear from ground water extraction

Environmental Concerns

Plastic Waste: A menace of bottled water consumption

Rich Pedroncelli/AP file. Source: http://www.msnbc.msn.com/id/5279230/ns/us_news-environment/t/plastic-bottles-pile-mountains-waste/

60 Million plastic bottles are disposed daily in the U.S making up 90 percent of plastic waste that end up in landfills. (UCS, 2007)

Landfilled bottles may take 400 to 1,000 years to degrade (Arnold and Larsen, 2006; Owen, 2006)

Non biodegradable plastic bottles end up as litters on streets, parks, urban cities creating sanitation problems.

An estimated 10 percent of plastic waste end up in the Ocean Plastic contaminating the ocean and killing aquatic life.

Over a million seabirds, and more than 100 thousand marine mammals, die every year from ingesting plastic debris. (UN Environmental Program)

MARPOL Annex V - The International Convention for the Prevention of Pollution from Ships prohibits disposal of plastics from vessels.

Continuation on Plastic Waste

References: Pacific ocean plastic waste dump. Source: http://ecology.com/ecology-today/2008/08/14/pacific-plastic-waste-dump/Oceans-coral reefs. (2011) Source: http://www.thinkglobalgreen.org/coralreefs.html

Bottle Deposit Law-California Beverage Container Recycling and Litter Reduction Act (AB 2020)

Click for Source

Recycling- a viable solution to plastic waste and an avenue of job creation.-recycling, re-use, and composting is estimated to create six to ten times as many jobs as waste incineration and landfills. (Clean Air Council)

Recycling saves 3 to 5 times the energy generated by waste-to-energy plants, even without counting the wasted energy in the burned materials. (Clean Air Council)

California Beverage Container Recycling and Litter Reduction Act (AB 2020) – The act , enacted in 1986 and implemented in 1987 aims at increasingrecycling and reducing litter.-To ensure this objective, the bill charges deposit fees of 10¢: 24oz. and greater) and (5¢: under 24oz)-Other fees include handling fees, processing payment fees, unredeemed deposits .-The act covers alcoholic and non alcoholic beverages; bottled water is categorized under the latter.Success: Since implementation of the deposit program, California's beverage container recycling rates have increased significantly, from an overall 52% in 1988 to 82% in 2010

Environmental impact:

Massive amounts of greenhouse gases are produced from the manufacturing of plastic bottles (PET)-Manufacturing 2 million tons of water bottles, releases more than 800,000 metric tons of greenhouse gases into the atmosphere, contributing to global climate change.

The manufacture of one kilogram of PET releases 40 grams of hydrocarbons, 25 grams of sulfur oxides, 18 grams of carbon monoxide, 20 grams of nitrogen oxides, and 2.3 kilograms of carbon dioxide into the air. :

Environmental Air Pollution

Too Many Plastics- It’s a waste. Retrieved fromhttp://www.dec.ny.gov/docs/materials_minerals_pdf/waterbottles.pdfLife - Cycle study. Bottled Water (2004) World watch InstituteSohttp://www.worldwatch.org/brain/media/pdf/pubs/mag/EP172C.pdfurce

Beautiful State of California

The bottled water industry produces carbon gases on several levels:

An estimated total of 32 million to 54 million barrels of oil is required to generate the energy to produce bottled water ; combustion of this amount of oil expends unimaginable units of CO2

The burning fuel in the production of the PET bottles for packaging water emits CO2 into the atmosphere.

Transportation of material for production and distribution of bottled water involves fuel combustion and release of carbon footprint.

Bottles that end up in landfills and environment , when incinerated, produces toxic fumes and releases CO2.

Tracing Carbon Footprint in Bottled Water Production

IBWA REBUTTAL TO CORPORATE ACCOUNTABILITY INTERNATIONAL’S FLAWED REPORT: “TAPPING CONGRESS TO GET OFF THE BOTTLESource: http://www.bottledwater.org/news/ibwa-rebuttal-corporate-accountability-international-sflawed-report-tapping-congress-get-bottle

Transporta-tion & Fuel

19%Consumer Use and Disposal

9%

Supplier manufactor-

ing Processes6%

Energy Use16%

Pet plastic Bottles30%

Non-Pet Plastic Bot-

tles19%

Based on total emissions of 2,128,326 tons C02e

Modified Chart: 2009 Nestlé Waters North America GHG Inventory, Clear Carbon by Deloitte Consulting

Nestlé Waters North America Carbon Emissions Breakdown- 2010

Nestlé's action plan to reduce CO2 footprint

On-Site Bottle Production

Eco-Shape Bottle

Direct Shipping

Regional Distribution

Carrier Equipment

Retrieved from: http://www.nestle-watersna.com/MeasuringOurFootprint.htm

Success of Nestlé's Waters Action Plan: “Over the period of 2006-2009, our emissions decreased 3% despite an increase in our business. On a normalized

basis (adjusted for growth), our emissions actually decreased 12%”

http://www.nestle-watersna.com/MeasuringOurFootprint.htm

Ground water is largely used in bottled water; groundwater can be considered as a non-renewable‟ resource (Foster &Loucks, 2006)

Aquifers and other ground water overexploitation by the bottled water industry strain and depletes ground water resources.

-Bottled water industries may pump up to more than 500 gallons of water per minute from every well. (Howard, 2003)-The Pacific Institute (2007) estimates that one liter of bottled water sold represents three liters of water used.

Water bottling process involves the use of chemicals and effluents for bottle washing, released without treatment , it can contaminated groundwater, creating a water crisis for communities.

Contamination and Depletion of Ground Water Sources

Click for source

The bottled water industry in Europe became regulated mid nineteenth century. Bottled water is regulated under The Food Safety Act (1990) by the European Food

Standards Agency; The Environment Agency issues and monitors abstraction licensing in Europe.

Regulation of bottled water in the United States begun in 1938 under the Federal Food, Drug, and Cosmetic Act; bottled water is classified as packaged food.

The United States Food and Drug Agency (FDA) is the main regulatory body ensuring the safety standards of bottled water.

Other active regulatory bodies include: State and local government agencies, The International Bottled Water Association (IBWA), The bottled water web, The National Sanitation Fund (NSF), The National Resources Defense Council (NRDC)

Regulations and Regulatory Bodies.

Retrieved from: http://www.fda.gov/Food/FoodSafety/Product-SpecificInformation/BottledWaterCarbonatedSoftDrinks/ucm077079.htm.Bottled water information (2011) Article retrieved from http://www.bottledwaterinformation.co.uk/default.asp?section=5

FDA regulates bottled water based on the provisions in Title 21 of the Code of Federal Regulations (21 CFR), including standard of identity regulations (21 CFR § 165.110[a]) that define different types of bottled water, such as spring water and mineral water, and standard of quality regulations (21 CFR §165.110[b]) which establishes allowable levels for contaminants (chemical, physical, microbial and radiological) in bottled water.

The Current Good Manufacturing Practice (CGMP) are regulations guiding the processing and bottling water with detailed standard of quality. (21 CFR part 129).

Labeling regulations (21 CFR part 101) and CGMP regulations (21 CFR part 110) for foods in general also apply to bottled water.

Posnick, L.M., Kim, H. (2002) Ask the Regulators- Bottled Water Regulation and the FDA. Retrieved from: http://www.fda.gov/Food/FoodSafety/Product-SpecificInformation/BottledWaterCarbonatedSoftDrinks/ucm077079.htm

The Food and Drug Agency (FDA) Regulations on Bottled Water

The IBWA set safety standards to ensure purity and highest quality of bottled water. These standards are implemented through measures such as:

Using a multi –barrier approach from source to finished product (source protection, source monitoring, reverse osmosis, distillation, filtration, piping in and out of plants, storage silos, ultraviolet (UV) light.

Hazard Analysis Critical Control Point (HACCP) for quality assurance. (Risk identification, control measures for specific biological, chemical and physical agents)

Monitoring sources and facilities for safety and security conditions. (protecting water sources from contamination, depletion, etc.)

Reference: IBWA Position Statement: Measures Used to Produce and Process Bottled Water are Effective in Protecting from Pharmaceutical Contamination (2008) Source:http://www.prweb.com/releases/IBWA/bottled_water/prweb765014.htm

Standards: The Safety in Bottled Water

Standards: Quality Assurance Process used by Nestle

• Source selection and monitoring• Source water receiving and monitoring• Water storage and monitoring• Micro filtering• Ozone Disinfection• Bottling Control• Packaging Control• Line Sanitation Practices• Plant Quality Control• Corporate Quality Assurance

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Public Health Intervention Model:Awareness creation on harmful environmental impact of bottled water- plastic waste, CO2 emission and air pollution.

Providing adequate facilities, resources for disposal and recycling plastic bottles.

Promoting local production and consumption of bottled water.

Using Eco friendly packaging for bottling water.

Invest in Public water in infrastructure

Intervention models to address the environmental impact of bottled water

Proposed Environmental Stewardship Measures

Advocate for stringent regulations and programs of recycling like the bottle deposit bill in all US states.

By virtue of its environmental impact, bottled industries should be accountable to the Environmental Protection Agency (EPA) to ensure a more effective regulation and management of plastic waste and depletion of water resources.

Establish quotas, incentive, penalties for reducing carbon footprint for bottled water companies.

Implement stringent management and water monitoring Laws.-Example: Directive 2003/40/EC ; The Directive 2009/54/EC

European Directive 2009/54/EC (2009). Retrieved from http://eur-lex.europa.eu /LexUriServ/LexUriServ.do?uri

Amidst the heat of anti bottle water global campaign, the future of bottled water industry remains promising: At an estimated global market value of 126,284.8 million in 2015, the industry’s predicted growth is pegged at 27.1 percent from 2010 (Datamonitor Report- Global Industry Guide 2011)Conversely, the voice of anti- bottled water groups has had its impact: the emergence of new innovations in effort to cut down on harmful environmental impact of the bottled water industry. These include products like refillable water bottles, dispenser filters, vending machine dispensers, biodegradable PET bottles and other light weight eco friendly bottle packaging, among others.

Conclusion

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ReferencesBottled Water: Global Industry Guide 2011. Retrieved July 20, 2011 from http://www.datamonitor.com/store/Bottled Water. Retrieved July 20, 2011 from http://water.columbia.edu/?id=learn_more&navid=bottled_waterBottle Water. World Watch; Mar/Apr2004, Vol. 17 Issue 2, preceding p1, 1p, 3 Color Photographs. Retrieved July 20, 2011 from http://web.ebscohost.com.ezp.waldenulibrary.org/ehost/Bottle Deposit Law-California Beverage Container Recycling and Litter Reduction Act (AB 2020) -1987. Source: http://www.bottlebill.org/legislation/usa/california.htmDunham, J. and Associates, Inc.(2009)The International Bottled Water Association Economic Impact. Retrieved July 20, 2011 from http://www.guerrillaeconomics.biz/bottledwatermatters/Methodololgy.pdfFitzgerald, Ed. (2008) Pacific Ocean Plastic Waste Dump. Retrieved July 20, 2011 fromhttp://ecology.com/ecology-today/2008/08/14/pacific-plastic-waste-dumpGlobal Bottled Water Market to Reach $65.9 Billion by 2012. (2010) Retrieved July 20, 2011 from http://www.borealwater.com/boreal_water_news/2010/06/global-bottled-water-market-to.php?var=newsGlobal bottled water market. Leading countries consumption and compound annual growth rate (CAGR) 2004-2009. Retrieved July 20, 2011. Data source: Beverage Marketing Corporation

IBWA’s rebuttal to corporate accountability international’s flawed report: “tapping congress to get off the bottle” Retrieved July 20, 2011 from http://www.bottledwater.org/news/ibwa-rebuttal-corporate-accountability-international-sflawed-report-tapping-congress-get-bottleLife - Cycle study. Bottled Water (2004) World watch Institute. Retrieved July 20, 2011 fromhttp://www.worldwatch.org/brain/media/pdf/pubs/mag/EP172C.pdfMarketing Corporation, 2008, in: International Bottled Water Association (IBWA) Moeller, D. W. (2005). Environmental health (3rd ed.). Boston: Harvard University Press. Chapters 7: Drinking Water.Nestlé Waters North America Water and Financial Donations. Retrieved July 20, 2011 from http://npd.nestle-watersnasponsor.com/Measuring our Footprint-Nestle Waters North America. (2010 Report) Retrieved July 20, 2011 from http://nestlewatersnorthamerica.com/MeasuringOurFootprint.htmNew York State Department of Environmental Conservation. “Too many bottles-it’s a waste”. Retrieved July, 20, 2011 from www.health.state.ny.us/environmental/water/drinking/bulk_bottle/bottled_faqs.htmNOAA International Efforts to Reduce Marine Debris and Build Capacity. Retrieved July 20, 2011 from http://marinedebris.noaa.gov/about/international.html#marpol

References

Pacific ocean plastic waste dump. Source: http://ecology.com/ecology-today/2008/08/14/pacific-plastic-waste-dump/Oceans-coral reefs. (2011) Retrieved July 20, 2011 from http://www.thinkglobalgreen.org/coralreefs.htmlPosnick, L.M. Henry, K. (2002 )Ask the Regulators -- Bottled Water Regulation and the FDA. Retrieved July 20, 2011 from http://www.fda.gov/Food/FoodSafety/Product-Rich Pedroncelli/AP file(2005) Plastic bottles pile up as mountains of waste .Americans' thirst for portable water is behind drop in recycling rate”. Retrieved July 20, 2011 from http://www.msnbc.msn.com/id/5279230/ns/us_news-environment/t/plastic-bottles-pile-mountains-waste Top 10 Countries of bottled water consumption. Retrieved July 20, 2011 from Beverage Marketing Corporation, 2008, in: International Bottled Water Association (IBWA) US bottled water Market. Volume and Producer Revenues. 2001-2009. Retrieved July 20, 2011 from Beverage Marketing Corporation, 2008, in: International Bottled Water Association.What is bottled water. Retrieved July 20, 2011 from http://www.bottledwater.org/content/what-bottled-water

References

Supplemental References:Arnold, E. and Larsen, J. (2006). Bottled water: pouring resources down the drain. Earth Policy Institute. Retrieved from http://www.earth-policy.org/Updates/2006/Update51.htm Carbon Trust. (2008). Carbon Foot printing takes major step forward with 7 new companies committing to carbon count their products. Published February 4th, 2008. Retrieved July 20, 2011, from http://www.carbontrust.co.uk/News/presscentre/2008/seven-new-companies-carbon-count.htm Faris, J. and Hart, K., Seas of Debris: A Summary of the Third International Conference on Marine Debris, N.C. Sea Grant College Program and NOAA, 1994, 54p. Retrieved July 20, 2011 from http://nsgl.gso.uri.edu/cgi-bin/zgateThe story of bottled water. Retrieved from http://storyofstuff.org/bottledwater/Produced by The Story of Stuff Project CA, USA

References

THE ENDYour questions, comments and contributions are highly welcome. email: genevieve.amofahbediako@waldenu.eduPs: Enjoy with a slide show!

Thank You