progress report - International Bottled Water Association

Progress
Report
IBWA 2013 Board of Directors
IBWA Chairman
IBWA Vice Chairman
IBWA Treasurer
IBWA Immediate
Past Chairman
William Patrick Young
Absopure Water Co., Inc.
Plymouth, MI
Breck Speed
Mountain Valley
Spring Company, LLC
Hot Springs, AR
Dave Muscato
Nestlé Waters
North America
Stamford, CT
Philippe Caradec
Danone Waters of America
White Plains, NY
Joe Bell
Bell Sales, Inc.
Pittsburgh, PA
Doug Hidding
Blackhawk Molding Co.
Addison, IL
Greg Nemec
Premium Waters Inc.
Minneapolis, MN
Robert Smith
Grand Springs Distribution
Alton, VA
Page Beykpour
CG Roxane
San Francisco, CA
Dave Holdener
Nicolet Forest Bottling Co.
Mountain, WI
Dan Bush
IGO Direct Premium
Water Coolers
Phoenix, AZ
Scott Hoover
Roaring Spring Bottling
Roaring Spring, PA
Steve Raupe
Ozarka Water and
Coffee Service
Oklahoma City, OK
Jeffrey Vinyard
Crystal Springs
Bottled Water Co.
Albuquerque, NM
Chris Saxman
Shenandoah Valley
Water Co.
Staunton, VA
Lynn Wachtmann
Maumee Valley Bottlers, Inc.
Napoleon, OH
Marty Conte
Diamond Springs Water
Charlotte, NC
Dan Kelly
Polymer Solutions
International, Inc.
Medford, NJ
Tom Harrington
DS Waters
Atlanta, GA
Bryan Shinn
Shinn Spring
Water Company
Birdsboro, PA
IBWA 2013 Executive Committee
IBWA Chairman
IBWA Vice Chairman
IBWA Treasurer
William Patrick Young
Absopure Water Co., Inc.
Plymouth, MI
Breck Speed
Mountain Valley
Spring Company, LLC
Hot Springs, AR
Dave Muscato
Nestlé Waters
North America
Stamford, CT
Stewart Allen
DS Waters
Atlanta, GA
Marty Conte
Diamond Springs Water
Charlotte, NC
Scott Hoover
Roaring Spring Bottling
Roaring Spring, PA
Joe Bell
Bell Sales, Inc.
Pittsburgh, PA
Henry R. Hidell, III
Hidell International
Hingham, MA
Dan Kelly
Polymer Solutions
International, Inc.
Medford, NJ
International bottled water association
IBWA Immediate
Past Chairman
Philippe Caradec
Danone Waters of America
White Plains, NY
Chris Saxman
Shenandoah Valley
Water Co.
Staunton, VA
A Letter From the President
It has been another challenging and exciting year for the
bottled water industry, and there is a lot that we have to
be proud of and feel good about.
Despite the continued attacks by our critics and a sluggish economy, bottled water
sales and consumption continue to grow.
While those increases are not as large as
we experienced several years ago, they are
a clear and positive sign that the bottled
water industry is on the road to recovery.
The bottled water industry makes important contributions to the United States
economy. Bottled water companies employ
more than 145,000 Americans and generate
354,000 jobs in supplier and related businesses. In 2011, the bottled water industry
was responsible for as much as $109.8
billion in total economic activity. Bottled
water companies, their employees, and
other firms and employees that depend on
bottled water for their livelihoods provided
the federal government with more than
$6.2 billion in tax revenues. And, state and
local governments benefited from over $4.7
billion in business and personal taxes paid
by those firms and their employees.
Since the second quarter of 2011, the
number of positive bottled water stories
has outnumbered the negative stories.
That demonstrates how IBWA’s efforts to
provide the facts about bottled water to
the media, consumers, and government
officials are paying off.
The bottled water industry received a
significant amount of favorable media attention as a result of our member’s efforts
to provide clean, safe bottled water products
to the victims of Hurricane Sandy. IBWA
members worked around-the-clock to
supply bottled water to hurricane victims in
New Jersey, New York, and other affected
areas in the Mid-Atlantic and Northeast.
Without question, the most significant
federal regulatory development this year
for the bottled water industry was the
ongoing implementation of the Food
Safety Modernization Act (FSMA). To
help members prepare for FSMA, IBWA
has been providing implementation and
compliance guidance, hosting webinars,
and publishing regular articles in IBWA’s
weekly News Splash e-newsletter, bimonthly Bottled Water Reporter magazine,
and periodic special member bulletins.
We held FSMA education sessions
during our 2012 Annual Business
Conference in New Orleans, and more
will be held in 2013 at various locations
around the country.
IBWA has spent significant time in the
past year continuing to expand our outreach to federal and state legislators and
governors in order to educate them further
about the bottled water industry and to
gain their support. In the past year, IBWA
staff and members have participated in
more than 150 meetings with members of
Congress or their staffs.
It was another busy year for legislative
and regulatory activity at the state level.
IBWA monitored nearly 500 pieces of
legislation and more than 440 regulations
throughout the 50 states. Bisphenol-A
(BPA) remained a top issue, with over
90 pieces of legislation introduced in 30
states. IBWA continues to defend the
safety of BPA, and, with the help of our
food industry allies, we were successful in
defeating all of those proposals or amending
the bills so they did not negatively impact
the bottled water industry.
As part of our efforts to highlight our
industry’s environmental focus, IBWA is a
proud sponsor of Curbside Value Partnership (CVP), an organization dedicated to
increasing participation in curbside recycling programs nationwide. CVP provides
consumer recycling education, develops
on-the-ground recycling programs for underserved communities, and tracks collected
tonnage to help measure effectiveness.
Successful programs have been launched in
IBWA President and CEO Joseph K. Doss
Atlanta, Georgia; Greenville, North Carolina; and Baton Rouge, Louisiana.
In Concord, Massachusetts, bottled water
adversaries were successful in narrowly
passing a first-in-the-nation law banning
the sale of single-serve bottled water packaged in plastic within the town. The new
law goes into effect on January 1, 2013,
and IBWA is working with members and
stakeholders inside and outside of Concord to determine the best possible courses
of legal and/or political action to overturn
this ban and restore freedom of choice to
the citizens of Concord.
The 2012 IBWA Annual Progress Report
summarizes IBWA’s accomplishments
in maintaining a favorable business and
public affairs climate for the bottled water
industry, and to protect and advance the
interests of all IBWA members. Our
success is a result of a true team effort by
IBWA members, staff, and consultants.
Their hard work and dedication has enabled IBWA to make great strides and will
help ensure the continued success of the
bottled water industry.
2012 IBWA PROGRESS REPORT | 1
Although the sluggish U.S. economy continues and
attacks from bottled water critics seem endless, the
bottled water industry has a lot to feel good about.
Bottled water sales and consumption continue to grow–despite the best efforts of our critics and
a U.S. economy that’s seen better days. While those increases are not as large as we experienced
several years ago, according to Beverage Marketing Corporation (BMC), they signal “noteworthy
revitalization” that is expected to persist going forward as economic conditions grow increasingly
favorable and the characteristics that made bottled water the second-largest beverage category by
volume reassert themselves.
2 | International bottled water association
Sales and Economics
The key to IBWA’s
continued legislative
success is the active
involvement of
IBWA members. It’s
important for IBWA
members to continue
meeting with their
elected officials,
conducting plant tours
for those officials,
testifying before
legislative committees,
and participating in
election campaigns to
keep our momentum
in 2013.
communicate the facts about bottled
water to consumers, legislators, and the
media. Following is a review of IBWA’s
2012 efforts.
In addition to encouraging growth in
bottled water sales and consumption,
research conducted for IBWA shows
the continued importance of the
bottled water industry to the U.S.
economy. Bottled water companies in
the United States employ more than
145,000 Americans and generate an
additional 354,000 jobs in supplier and
related industries. Not only does the
manufacture and sale of bottled water
create good jobs in the United States,
but the industry also contributes to the
economy as a whole. In 2011, the bottled
water industry was responsible for as
much as $109.8 billion in total U.S.
economic activity. In addition, bottled
water companies, their employees, and
other firms and employees that depend
on bottled water for their livelihoods,
provided the federal government with
more than $6.2 billion in tax revenues.
And state and local governments
benefited from more than $4.7 billion in
business and personal taxes paid by those
firms and their employees.
Food Safety
The most significant federal regulatory
development in 2012 was the ongoing
implementation of the Food Safety
Modernization Act (FSMA). The new
law contains four main areas of focus:
• Mandatory inspections of all U.S.
food facilities, based on risk: high-risk
facilities at least once every three years,
and low-risk facilities at least once
every five years.
• The U.S. Food and Drug Administration (FDA) now has mandatory recall
authority for those incidents that
involve serious adverse health consequences or death (Class I Recall).
• Each registered facility will be required to conduct a hazard analysis of
reasonably foreseeable hazards and put
into place preventive controls designed
to significantly minimize or prevent
those hazards.
• Each registered facility will be required to document its hazard analysis
and preventive controls system, including corrective actions and product/environmental testing, and to make those
records available to FDA upon request.
To ensure that quality bottled water
products continue to be available on the
market, IBWA members and staff have
worked diligently to defend the industry
against any attacks and proactively
U.S. BOTTLED WATER MARKET
Volume and Producer Revenues
2009 – 2011
Year
Millions of
Gallons
Annual
% Change
Millions of
Dollars
Annual
% Change
2009
8,453.1
-2.5%
$10,601.3
-5.2%
2010
8,750.6
3.5%
$10,683.8
0.8%
2011
9,107.3
4.1%
$11,083.8
3.7%
Source: Beverage Marketing Corporation
Copyright © 2012 by Beverage Marketing Corporation
2012 IBWA PROGRESS REPORT | 3
Proposed FSMA
regulations will
likely be published in
January 2013. IBWA is
prepared to respond
quickly when that
happens.
Different provisions of the new law have
varying effective dates. While it should
have taken about 18-24 months to be
fully implemented, there have been significant delays in releasing the proposed
regulations for public review and comment. But FDA continues to report that
it will not enforce the law until the final
regulations have been issued and companies have had time to implement them.
The proposed regulations—including
those for preventive controls and foreign
supplier verification—will likely be published in January 2013, and IBWA and
the food industry coalition are prepared
to respond quickly when that happens.
IBWA staff, members, and consultants
worked closely with the food industry
coalition to support FSMA, and we will
continue to work together to guide FDA
as it puts the new law into motion.
As part of that effort, IBWA participated
in many FDA public meetings and
submitted written comments on several
aspects of proposed and pending
regulations and guidance. IBWA has
also regularly provided implementation
and compliance guidance to IBWA
members, including hosting webinars,
publishing articles in IBWA’s News Splash
e-newsletter and Bottled Water Reporter
magazine, and distributing periodic special
member bulletins. In addition, FSMA
educational sessions were held during the
2012 IBWA Annual Business Conference
in New Orleans, and more are planned
in 2013 at various locations around the
country in conjunction with IBWA’s plant
tour program and the state and regional
bottled water association meetings.
Although the first FSMA regulations
have not yet been issued, FDA has already
shown clear signs of conducting more
intense and focused inspections. Because
FDA has significantly changed some of
4 | International bottled water association
its policies on records review and taking photographs in the plant, IBWA has
revised its Inspection Toolkit document
to help IBWA members prepare their facilities for the new, more aggressive FDA
inspections. IBWA has also presented
seminars to help educate members about
those changes.
FDA can now charge bottled water
companies, and other food manufacturers
and distributors, substantial fees if FDA
needs to re-inspect a plant after it fails an
inspection. That includes a $220 per hour
charge for FDA personnel, plus hotel and
travel expenses. IBWA estimates the total
re-inspection fees could cost members
as much as $20,000. Similar fees can be
levied against companies that have FDA
mandatory recalls.
In 2012, IBWA provided seminars on
FSMA, hazard analysis and critical control
points (HACCP), and other pertinent
topics to help protect IBWA members from
being assessed large financial penalties for
noncompliance. Moreover, IBWA’s mandatory annual audit program will help members be better prepared for FDA inspections.
Emergency Relief Efforts
The bottled water industry recently
received a lot of favorable media attention as a result of IBWA member efforts
to provide needed supplies of clean, safe
bottled water products to the victims of
Super Storm Sandy. Working in coordination with the Federal Emergency Management Agency (FEMA); state, county,
and municipal emergency management
agencies; and emergency relief partners
(including the American Red Cross and
AmeriCares), IBWA members worked
around-the-clock to supply bottled water
to hurricane victims in New Jersey, New
York, and other affected areas in the MidAtlantic and Northeast.
The bottled water industry has always
been at the forefront of relief efforts during
natural disasters and other catastrophic
events. In 2012, IBWA continued to educate legislators, the media, and consumers
about the fact that the industry cannot exist
only for disaster response. The bottled water
industry’s ability to provide crucial drinking
water to disaster victims is contingent on
having a viable commercial market, which
provides companies with the capital and
resources to respond quickly when needed.
Bisphenol-A
Bisphenol-A (BPA) continues to be
a very important issue for the bottled
water industry.
Federal Activity
While no new federal legislation was introduced in 2012 to prohibit the use of BPA in
food and drink containers, it was still a busy
year for BPA on the regulatory side.
FDA. Last March, FDA rejected a citizen petition from the Natural Resources
Defense Council (NRDC) that sought
to ban BPA from all food and drink
packaging, including plastic bottles and
canned food. FDA denied the petition
because there was insufficient information to support a ban, and the agency
expressly criticized the scientific data
NRDC submitted.
The bottled water
industry’s ability
to provide crucial
drinking water to
disaster victims is
contingent on having
a viable commercial
market.
On a related note, last March
Congressman Edward Markey (DMA) filed three citizen’s petitions with
FDA to ban BPA in infant formula and
toddler food packaging, small reusable
food and beverage containers, and
canned food and beverage packaging.
In July 2012, FDA announced it
had agreed to consider the petition
regarding infant formula packaging, but
it rejected the other two petitions.
IBWA members worked around-the-clock to supply
bottled water to victims of Hurricane Sandy.
2012 IBWA PROGRESS REPORT | 5
“After more than 5,000
studies of [BPA] over
several decades, none
of which has ever
shown any human
harm from BPA in
normal consumer
use, it’s easy to make
a case that continued
research on BPA is
a waste of time and
increasingly scarce
research funding. Yet
the almost evangelical
fervor with which
some scientists and
activists attack this
compound continues
to generate more junk
science, more bad
reporting and more
unwarranted fear
among consumers.”
– Henry Miller, MD,
Forbes magazine
Last July, FDA also announced it was
amending its food additive regulations, in response to a petition filed in
October 2011 by the American Chemistry Council (ACC), to no longer
provide for the use of polycarbonate
(PC) resins in baby bottles and sippy
cups. FDA made its ruling based on
abandonment—not safety. The Food,
Drug, and Cosmetic Act provides for
amending or revoking a food additive
regulation based on safety; however,
an amendment or revocation based on
abandonment is not based on safety.
It is based on the fact that regulatory
authorization is no longer necessary
for the use of that food additive. When
ACC filed its petition, it noted that the
goal of the BPA revision was to clarify
for consumers that BPA is no longer
used to manufacture baby bottles and
sippy cups and will not be used in those
products in the future.
While FDA research on BPA is ongoing,
the agency has not set a date for making a
final determination on its safety.
Health Canada. A report released September 2012 from Health Canada relayed
some good news about BPA: “based on
the overall weight of evidence, the findings of the previous [Health Canada] assessment remain unchanged and Health
Canada’s Food Directorate continues to
conclude that current dietary exposure
to BPA through food packaging uses is
not expected to pose a health risk to the
general population, including newborns
and young children.”
Health Canada’s conclusions were based
on food and beverage exposure studies
conducted between 2008 and 2010,
and one of those reports was specific
to bottled water. That report concluded
an adult would have to consume
6 | International bottled water association
approximately 1,000 liters of bottled
water from polycarbonate containers
in one day to approach the Total Daily
Intake level for BPA set by Health
Canada’s Food Directorate.
In an October 10, 2012, Forbes magazine
article, Henry Miller, MD, summed up
the current BPA situation very well: “After more than 5,000 studies of the chemical over several decades, none of which
has ever shown any human harm from
BPA in normal consumer use, it’s easy to
make a case that continued research on
BPA is a waste of time and increasingly
scarce research funding. Yet the almost
evangelical fervor with which some scientists and activists attack this compound
continues to generate more junk science,
more bad reporting and more unwarranted fear among consumers.”
State Activity
BPA remained a top issue in many
states, with more than 90 pieces of legislation introduced in 30 states. IBWA,
with the help of food industry allies, was
successful in either defeating proposals
or amending bills so they did not negatively impact the bottled water industry.
Although most of the legislation focused
on products intended for use by children,
there were a few bills that were poorly
written or attempted to cover a broad
array of products that might apply to
bottled water.
IBWA continues to work with industry
allies such as the ACC, the Grocery
Manufacturers Association (GMA),
and state retail and food associations to
monitor and address the BPA issue as it
surfaces in the states. The recent federal
action by FDA to uphold the safety of
BPA will make it even more likely that
BPA critics will increase their state efforts to ban BPA.
Bottled Water Labeling
and Quality Legislation
In previous years, Senator Frank Lautenberg (D-NJ) introduced burdensome and
unnecessary federal legislation that would
require bottled water manufacturers to prepare reports disclosing certain substances in
their products, to provide company contact
information on the label, and to transfer
regulatory authority over bottled water
from FDA to the Environmental Protection Agency (EPA) if certain deadlines
were not met. Although Sen. Lautenberg
did not introduce similar legislation in
2012, bottled water critics continue to press
him and other federal and state legislators
to enact similar onerous legislation.
IBWA has always supported a consumer’s
right to obtain clear, accurate, and timely
information about the safety and quality
of bottled water products. In June 2011,
IBWA’s Board of Directors decided to
support federal legislation that would
require bottled water producers to provide
product quality and other information to
consumers, upon request. However, such
legislation must preempt any state or local
requirements that are not identical to the
federal law and must maintain FDA oversight and jurisdiction of bottled water.
effort to move him closer to the industry’s
position on several key issues. Because it’s
always the details of such legislation that
may impact members, IBWA intends to
continue working closely with the entire
membership to address any related concerns and questions they may have.
FTC Green Guides
In October 2012, the Federal Trade
Commission (FTC) released the final
revisions to its “Green Guides” document,
which provides guidance to companies on
how to avoid making misleading environmental claims. The new Green Guides
caution against making general environmental claims and provide guidance
on what is required if a company makes
claims such as “degradable,” “compostable,” and “recyclable.”
Under IBWA’s proposal, the product label
would act as the “gateway” to provide
consumers with the ability to contact
bottled water producers and obtain
additional information. That would be accomplished by including a phone number,
email address, website address, or other
contact information on the product label.
IBWA staff, members, and consultants
worked diligently in 2012 to develop draft
legislation and secure support for our position with several key members of Congress.
IBWA also continues its productive dialogue with Sen. Lautenberg’s office, in an
2012 IBWA PROGRESS REPORT | 7
The final Green Guides do not, however, provide guidance on claims such as
“sustainable,” “organic,” and “natural.” Nor
do they discuss how lifecycle information
can be communicated in advertising or how
lifecycle analyses should be conducted—
two very important issues.
IBWA submitted comments on the
draft Green Guides document that
focused on environmental claims such
as “recyclable,” “recycled content,” “freeof,” and “renewable materials.” If your
company is making any of those claims,
please be sure to review the new Green
Guides document.
In another FTC development, last May
an Interagency Working Group (IWG)
represented by four federal agencies—FTC,
FDA, Centers for Disease Control and
Prevention (CDC), and U.S. Department
of Agriculture (USDA)–—released for
public comment voluntary guidelines to be
used by companies when marketing food to
children. IBWA had submitted comments
to the FTC requesting that it recommend
bottled water as a unique packaged food
product that both contributes to healthful
diets and lacks nutrients that have a negative impact on children’s health or weight.
Subsequent to submitting comments,
IBWA continued to work with a broad
industry coalition to coordinate opposition
efforts to the proposed guidelines, including
appeals to Congress and Administration
to scrap the current proposal and start over.
And that’s exactly what happened.
Recycling
During 2012, recycling, bottle deposit
programs, and extended producer responsibility (EPR) continued to be discussed
in almost every state legislature. Efforts
Curbside Value Partnership
IBWA is proud to be a sponsor of the Curbside Value
Partnership (CVP), an organization dedicated to
increasing participation in curbside recycling programs
nationwide. It is the only national program that engages
all recycling stakeholders (government, private
industry, haulers, and materials recovery facilities) to
identify solutions to improve curbside recycling programs. CVP’s goal is to launch education
programs to increase participation in community curbside recycling programs.
For example, CVP recently worked with the City of Atlanta to help deliver 96-gallon recycling
carts to 65,000 city residents in an effort to increase recycling participation. IBWA looks
forward to working with CVP to educate consumers about the importance of recycling and
getting more bottled water containers into the recycling stream.
8 | International bottled water association
to pass new bottle deposit laws or expand
existing programs to include bottled
water were introduced in several states,
including Florida, Louisiana, Maryland,
Massachusetts, Minnesota, Oklahoma,
and Vermont. IBWA worked closely with
members and in-state allies to defeat all
of those proposals. While similar national
efforts are expected in 2013, there may
also be attempts to enact bottle deposit
laws at the local level.
As discussions in the states begin to
move in a broader direction regarding
recycling, IBWA is fully engaged when
those proposals are considered. Staff
continues to explore ways to promote
the IBWA Material Recovery Program
(MRP), which IBWA’s Board of Directors
adopted in 2010. IBWA’s program calls for
all consumer product companies to work
together with state and local governments
to improve recycling education and
collection efforts for all packaged goods.
Members of the IBWA Environmental
Sustainability and Government Relations
Committees undertook the task of
reviewing and updating the MRP
document in 2012. As the EPR concept
expanded significantly in the United States
last year, IBWA’s MRP can assist states
in developing comprehensive solutions to
help manage solid waste.
Packaging and
Sustainability
With so many advances in plastic
containers, such as plant bottles and
biodegradable additives, and with the
use of recycled PET (rPET) on the rise,
packaging concerns have become more
complex. The IBWA Packaging Subcommittee prepared an advisory document for IBWA members addressing
the various issues, including recyclability of packaging, biodegradable additives, and rPET. The final document is
available in the Members Only section
of the IBWA website.
In 2009, Franklin Associates completed
a life cycle inventory of home and office
delivery (HOD) and small package
containers for IBWA. That report confirmed bottled water companies have
a very small environmental footprint.
To continue promoting and supporting
member sustainability efforts, IBWA
completed the production of a Sustainability Goals document in 2012. As
the bottled water industry strives to
be a model of environmental stewardship and social responsibility, IBWA’s
document sets forth specific goals to
incorporate the ideals of sustainability into every facet of bottled water
production and distribution. The focus
points of the document include energy
conservation, water conservation/stewardship, sustainable packaging efforts,
waste management, and sustainable
education. The final document is available in the Members Only section of
the IBWA website.
In 2012, IBWA
published its
Sustainability
Goals document,
which members
can use to help
set specific goals
that incorporate
the ideals of
sustainability into
every facet of bottled
water production
and distribution.
Following industry efforts to monitor its
use of natural resources and stay focused
on positive environmental impacts,
IBWA began development of a Water
Use Ratio Study. That study, much like
IBWA’s life cycle inventory, will examine
small pack and HOD bottled water and
will report on the industry’s water use and
provide benchmarks for water sustainability. The study will be completed in
the first half of 2013 and distributed to
IBWA members.
In 2012, IBWA once again retained
BMC to conduct a gram weight study,
which previously found that between
2000 and 2008 the bottled water industry
had reduced the weight of half liter containers to an average of 12.74 grams. That
was a 32.6 percent decrease in weight,
2012 IBWA PROGRESS REPORT | 9
Join the
IBWA PAC
IBWA members should have
already received a request for
Authorization to Solicit from
the IBWA Political Action
Committee (IBWA PAC). Under
Federal Elections Commission
laws, companies are only
allowed to authorize one trade
association per year to solicit
a company and its employees
for PAC contributions. Allowing
the IBWA PAC to be that
association will help us build
vital relationships and support
the campaigns of qualified
candidates who will represent
the congressional districts
where you operate.
Your written authorization
is the first step in helping
us achieve that goal.
Providing IBWA with a signed
authorization form in no way
requires members to make
a contribution to the IBWA
PAC. It simply allows IBWA to
provide you more information
about the PAC that you would
otherwise not receive.
If you would like to know more
about the IBWA PAC, please
contact Dan Felton, IBWA PAC
Assistant Treasurer: dfelton@
bottledwater.org.
which resulted in a savings of 1.3 billion
pounds of PET resin.
As IBWA awaits the results of BMC’s
updated study, BMC is also preparing for
IBWA a report on the increased use of
rPET. That report, like the gram weight
study, will show how the bottled water
industry has notably increased its sustainability efforts not only by using less PET
but also by making noteworthy strides in
giving PET a second life.
EPA ENERGY STAR
IBWA has been working closely with
the EPA on its voluntary ENERGY
STAR program, which establishes
energy efficiency standards for bottled
water coolers. Last September, the
agency released a final water cooler test
method and the first draft of a new water
cooler specification, which water cooler
manufacturers must comply with in
order to have their products certified as
ENERGY STAR compliant. The final
test method, which IBWA commented
on when it was in draft form, will reside
within the new water cooler specification
whenever it is finalized.
IBWA strongly encouraged the EPA to
work with industry to study the proposed
test method further to ensure it is reasonable before officially implementing it.
During October 2012, IBWA worked
closely with its water cooler members
to address several concerns with EPA’s
newly proposed specification which,
if implemented, could have serious
negative effects on the U.S. bottled
water cooler industry.
IBWA has been collecting comments and
data from members and submitting that
feedback to the EPA. Last November,
IBWA members met with ENERGY
STAR representatives while in New
10 | International bottled water association
Orleans for the 2012 IBWA Annual
Business Meeting and are cautiously
optimistic that the EPA will seriously
consider IBWA’s current concerns before
advancing the new specification and
related test method.
IBWA Political
Action Committee
The IBWA Political Action Committee
(PAC) is an important tool that allows
the bottled water industry to participate
in and support the election of candidates
for Congress. The PAC’s primary focus
is to support candidates for Congress at
events in their districts; only rarely are
those funds used to attend fundraisers in
Washington, DC.
IBWA members should have received
an Authorization to Solicit form from
the IBWA PAC. Member support of
the IBWA PAC will help IBWA build
vital relationships and contribute to the
campaigns of qualified candidates that
will represent the congressional districts
where IBWA members live and do
business. Written authorization is the
first step for members to helping IBWA
achieve that goal. Providing IBWA with
a signed authorization form in no way
requires members to make a contribution
to the IBWA PAC. It simply allows
IBWA to provide you more information
about the PAC that you would otherwise
not receive.
During the 2011/2012 election cycle, the
IBWA PAC Board set an ambitious goal
of raising $50,000—a goal that IBWA
members exceeded thanks to contributions
brought in from a PAC fundraiser held in
New Orleans as part of the 2012 IBWA
Annual Business Meeting. The IBWA
PAC Board has distributed $17,500 to 31
congressional candidates in 2012, and 29
of those candidates won their elections.
Presidential/Vice
Presidential Debates
IBWA was proud to be a national sponsor of the 2012 presidential and vice
presidential debates, which took place in
various locations throughout the United
States last October. This was the second
time IBWA sponsored the debates, as
the association also participated in the
2008 debate season. IBWA supports the
important role civic engagement plays in
our electoral process, and the debates help
people become better informed about the
many important issues facing our nation as
they consider who to vote for in elections.
The national exposure IBWA received as
a sponsor is certainly beneficial to the association and the bottled water industry.
The Commission on Presidential
Debates (CPD), which organizes the
debates, is a nonprofit corporation
funded through private donations
from individuals, corporations, and
foundations. IBWA’s donation to the
CPD was one of time and talent rather
than cash. Dan Felton, IBWA vice
president of government relations, has
a long-standing relationship with the
CPD and assisted the organization with
debate attendee needs related to ticketing,
seating, and security. In addition, a
few IBWA members donated bottled
water to assist the host schools with the
extraordinary support needs placed on
them during their debate week.
As the 2012 elections
did not significantly
change the government
relations landscape,
IBWA expects to see
more of the same at
both the federal and
state level in 2013.
As the 2012 elections did not significantly change the government relations
landscape, IBWA expects to see more of
the same at both the federal and state level.
Taxes, Groundwater,
Labeling and Restrictions
Several important issues were considered
in state legislatures in 2012, and IBWA
2012 IBWA PROGRESS REPORT | 11
IBWA monitored
nearly 500 pieces of
legislation and more
than 440 regulations
throughout the 50
states of America.
was actively involved with all of them,
including the following:
Tax proposals. Bottled water continues
to be a target for states looking to raise
needed funds by taxing various products.
The proposals included sales taxes, excise
taxes, and container taxes. IBWA will continue to work with in-state and national
allies to oppose all bottled water taxes.
Groundwater. The bottled water industry is
a visible target even though it accounts for
only 0.02 percent of all U.S. groundwater
withdrawals. IBWA supports comprehensive
groundwater management policies that are
based upon sound science and treat all users
equally, and opposes any proposals that don’t
meet those requirements.
Efforts to restrict the sale or purchase
of bottled water. Proposals to restrict
the sale and/or purchase of bottled water
were considered in the 2012 state and local legislative and regulatory arenas. Nowhere was that more visible than in Concord, Massachusetts, where bottled water
adversaries were successful in narrowly
passing a first-in-the-nation law restricting the sale of single-serve bottled water
packaged in plastic within the town. The
new law goes into effect on January 1,
2013, but from IBWA’s perspective the
battle is far from over. IBWA continues
to work with members and stakeholders
inside and outside of Concord to determine the best possible options to fight
the ban and restore freedom of choice to
the citizens of Concord.
Labeling proposals. Each year, several
state bills are introduced to require special
labeling for bottled water products, and
2012 was not exception. Those bills
include language for disclosing certain
ingredients and providing warnings or
other unnecessary statements. IBWA
12 | International bottled water association
opposes any labeling proposal that is different from federal law. IBWA’s position
is the bottled water industry must have
national uniformity of labeling. A patchwork quilt of differing state labeling laws
would confuse consumers and interfere
with interstate commerce.
Advocacy and Policy
Outreach Efforts
IBWA spent significant time in 2012
continuing to expand outreach efforts to
federal and state legislators and governors
to educate them further about the bottled
water industry and to gain their support.
Capitol Hill visits. In 2012, IBWA staff
and members participated in more than
150 meetings with members of Congress
or their staffs. As part of that effort, during IBWA’s June board and committee
meetings, 45 individuals from 23 IBWA
member companies participated in more
than 60 visits to Capitol Hill. That effort
significantly enhanced IBWA’s goal to educate members of Congress about the issues
important to the bottled water industry.
Legislative contacts. IBWA continued
to discuss industry issues with governors
at various meetings held by the National Governors Association (NGA),
the Democratic Governors Association
(DGA), and the Republican Governors
Association (RGA). During the past
year, IBWA worked closely with several
groups of state and local lawmakers,
including the National Conference of
State Legislatures (NCSL), the Council
of State Governments (CSG), the State
Government Affairs Council (SGAC),
and the National League of Cities (NLC).
At NCSL’s yearly Legislative Summit in
Chicago, hundreds of visitors stopped by
IBWA’s Bottled Water Matters booth to
talk about bottled water issues and grab
a bottle of water. As an NLC Corporate
Partner, IBWA maintained a strong
presence on the NLC website and also
participated in its annual Congress of
Cities with an exhibit booth offering
industry information and bottled water.
IBWA will continue to look for new and
inventive ways to work with important
groups like these to ensure the industry
is well represented.
Drinking Water
Contaminants and
Standards
IBWA continues to monitor the California Office of Health Hazard Assessment
for new Proposition 65 listings and public
health goals for drinking water. Fortunately, there was not a significant amount
of activity in 2012 due to state budget
issues. However, of continued interest to
IBWA are proposals to establish public
health goals for hexavalent chromium and
perchlorate. IBWA continues to monitor
the EPA for new contaminant regulations,
as it will later on likely also apply to bottled water. The EPA is currently mandated
by Congress to regulate contaminants
such as perchlorate and hexavalent chromium, and IBWA continues to watch the
EPA’s actions very closely.
Bottled Water Matters
Advocacy Program
As the online consumer and issue advocacy destination for IBWA, the Bottled
Water Matters (BWM) website—
www.BottledWaterMatters.com—is an
important linchpin in IBWA’s communications and education strategy. In
2012, IBWA refreshed the design of the
Bottled Water Matters’ homepage to
provide a clean, contemporary, engaging, and social media-oriented space
for IBWA’s primary advocacy and issue
messaging. As IBWA’s target audience is
college students and social media-savvy
consumers, prominent Twitter, Facebook,
and YouTube integration was critical.
IBWA will continue to refine the BWM
website with the goal of developing a
comprehensive one-stop-shop of facts,
stories, tools, and connections that will
help visitors quickly access accurate information about bottled water.
During IBWA’s 2012 June Board and
Committee Meetings in Washington, DC,
45 IBWA members participated in 60-plus
visits with members of Congress and their
staffs to educate them about the bottled
water industry and our issues.
2012 IBWA PROGRESS REPORT | 13
As the BWM program remains an integral part of IBWA’s government relations
efforts, IBWA actively maintains and uses
a database of consumers, IBWA members,
and bottled water industry employees who
contact their legislators on important bottled water issues. In 2012, those supporters
of bottled water have engaged in grassroots
lobbying efforts by writing letters to local
officials, state legislators, and members of
Congress on legislative matters.
To learn how you and
your customers can lend
your names and support to
Bottled Water Matters, visit
www.BottledWaterMatters.com. Social Media Strategy
Without question, social media is one
of, if not the, most influential forces in
today’s information-laden world. To
better reach and educate an increasingly
diverse, online, and highly connected
audience—which includes regulators,
legislators, the media, and consumers—
IBWA continues to develop and expand
its social media presence. Ongoing social
media expansion allows IBWA to better
address industry critics in a more direct,
engaged, and conversational manner. The
ability to engage with supporters, critics,
and consumers in real time is vital and
can directly impact the perception of the
bottled water industry and products.
IBWA’s two Facebook pages
(Bottled Water Matters and Hydration.
Health.Happiness.) have nearly 7,300
fans and our three Twitter accounts
(@bottledH2Obabe, @bottledwaterorg,
@LuvBottledWater) collectively have
more than 2,800 followers. To reach current
and future customers, IBWA has produced
24 videos and posted them on the Bottled
Water Matters YouTube channel. Covering
important topics by using humorous and
educational approaches, the IBWA videos
have garnered more than 192,128 views.
Statements and
Responses
Last year, the topic of “bottled water”
received a lot of attention in traditional
broadcast and print media outlets. As
the “go-to” source for comprehensive
information about bottled water, IBWA
was quoted in various articles from leading
news outlets such as The New York Times,
Washington Post, Chicago Tribune, The Daily,
USA Today, and both major wire services:
Associated Press and Reuters. IBWA
participated in several call-in shows and
debated bottled water critics on the radio.
In 2012, IBWA posted hundreds of
comments and formal responses to online
news articles and blog posts directly impacting industry stories on such subjects
as health, the environment, recycling,
regulatory oversight, container safety, and
water quality. In addition, IBWA staff
sends formal letters-to-the-editor, issues
press releases, and prepares detailed
position statements on several key issues.
14 | International bottled water association
Bottled water sales and consumption
continue to grow despite the efforts to
put the industry out of business. Recent
data from Vocus, a media tracking service,
clearly shows that since the second
quarter of 2011, the number of positive
bottled water stories have outnumbered
the negative bottled water stories. Thus,
IBWA’s communications and other
related efforts are paying off.
Results from a 2012 readership survey
show that IBWA’s Bottled Water
Reporter bimonthly magazine is a
valued benefit of IBWA membership:
College Bottled
Water Restrictions
Although a challenging economy has
continued to negatively impact the
financial resources of bottled water
businesses, membership recruitment and
retention efforts in 2012 resulted in an
overall retention rate of 93 percent and a
94 percent retention for the three major
member types (bottler, supplier, and
distributor). More than 718 companies
have joined or rejoined IBWA.
In 2012, IBWA developed a plan of
action to achieve the maximum results
given the current financial climate. The
recruitment and retention plan included
increasing communication efforts with
members and nonmembers on the value of
IBWA membership and the importance
of the association’s work on behalf of the
bottled water industry. The efforts included
consider Bottled Water
Reporter “must reading.”
consider Bottled Water
Reporter relevant to their jobs.
In 2012, the issue of restricting the sale
of or banning bottled water on college
campuses gained a lot of press and activist attention. As part of IBWA’s vigorous
industry defense, IBWA promoted “Student Activism 101,” our YouTube video
that countered activists’ incorrect claims
and suggested ways students and others
can promote freedom of choice. As students
are the current and future consumers of
bottled water, it’s important for IBWA
to be actively engaged on this issue.
Membership
86%
96%
69%
58%
71%
67%
note their job function/title as
management executive or higher.
state they have visited an advertiser’s website.
note they are responsible for
researching/evaluating products
for their companies.
are responsible for recommending
specific products.
conducting two membership recruitment
drives, attending regional trade shows, and
conducting two membership recruitment
telephone campaigns; members of IBWA’s
Membership Committee participated in
those outreach efforts.
In 2013, IBWA will focus its efforts on promoting the benefits of IBWA membership
to prospective supplier member companies.
A new video targeting potential supplier
members was developed in 2012 and will
be instrumental in our recruitment efforts. IBWA will also focus on expanding
member benefits to increase the value of
membership and include new supplier
members in the IBWA New Member
Mentorship Program.
2012 IBWA PROGRESS REPORT | 15
The co-location Convention
In 2012, IBWA partnered with the
of the IBWA and National Automatic Merchandising
NAMA conferences Association (NAMA) to hold two of
meant that the 1,000 their conferences over the same dates in
New Orleans. The 2012 IBWA Anattendees were nual Business Conference was held
able to take part in on November 12-16, and the 2012
CoffeeTea&Water show was
expanded educational NAMA
held November 13-15. The conferences,
and networking which had 1,000 combined attendees,
opportunities. were held at the newly renovated and
reopened Hyatt Regency Hotel. Approximately 130 companies exhibited at
the joint Vendor Showcase, which offered attendees the opportunity to learn
about the latest and greatest industryrelevant products and services.
Because many bottled water companies,
particularly those in the HOD
business, also offer coffee and tea to
their customers, the co-location of
the IBWA and NAMA conferences
enabled attendees and exhibitors
to achieve a greater return on their
investment by providing expanded
educational programming, exposure to a
broader range of products and services,
and increased networking opportunities.
IBWA supplier members and bottlers
were able to meet face-to-face as they
cycled through 5-minute speed meetings.
The IBWA registration fees were completely restructured—and lowered—for
2012, as a result of IBWA’s co-location
with NAMA, and included access to most
NAMA events (all education sessions and
two general sessions with keynote addresses). The conferences kicked off with a
joint Welcome Reception, which provided
an excellent networking opportunity.
Education Program
During the General Session of IBWA’s 2012 Annual Business Meeting, IBWA Chairman
William Patrick Young (left) presented Immediate Past Chairman Philippe Caradec a token
of the membership’s appreciation for his work on behalf of the bottled water industry.
16 | International bottled water association
During the 2012 IBWA Annual Business
Conference in New Orleans, IBWA
presented, along with NAMA, more
than 33 education sessions and 15
continuing education credits (CEU),
which IBWA members could use
toward keeping their certified plant
operator (CPO) status current. IBWA’s
education program offered two tracks:
technical and business operations.
Technical offerings covered topics such
as FSMA, emerging contaminants,
BPA, microtesting, and water cooler
maintenance. For attendees interested
in learning opportunities that focused
more on business operations, IBWA
presented courses on extended producer
responsibility (EPR), analyzing bottled
water sales trends, and how social media
can help your business.
IBWA’s education program also provided
valuable information to members on a
variety of topics through articles, newsletters, and live and Web-based seminars
in 2012. Of course, the central topic
was FSMA and related topics, such as
HACCP and preparing facilities for an
FDA inspection. Sessions were presented
during every state/regional bottled water
association in the United States—and to
a few outside groups, such as the New
York State Department of Health.
IBWA Strategic Plan
Last June, the IBWA Board approved a
revised strategic plan to help guide the
association during the next several years.
The plan was prepared based on input
from a member survey, and the work of
the IBWA Planning Committee, which
consisted of members of the board, executive committee, and committees. The
new strategic plan contains the following
revised IBWA mission statement:
“To serve the members and the public, by
championing bottled water as an important
choice for healthy hydration and lifestyle,
and promoting an environmentally
responsible and sustainable industry.”
The plan establishes three key platforms:
• IBWA will aggressively and proactively
educate key audiences about the health
and wellness benefits of bottled water.
• IBWA will aggressively and proactively
improve perceptions of the bottled water industry’s environmental leadership.
• IBWA will aggressively and proactively
sustain and grow the bottled water
industry in the United States by representing and serving IBWA members.
IBWA began implementing the new plan
in 2012 and will make sure that the 2013
Annual Business Plan and Key Performance
The 2012 IBWA Annual Business Conference
wasn’t all business—attendees enjoyed
some free time with their peers at such
events as the Drinking Water Research
Foundation’s Casino Night fundraiser and
the joint Welcome Reception with NAMA.
Indicators are aligned with the direction
provided in the strategic plan.
2013 and Beyond
While 2012 was a busy and productive year
for the bottled water industry, IBWA members, staff, and consultants work hard every
day to create a favorable business and public
affairs climate for the industry and to protect
and advance the interests of all IBWA members. IBWA members—bottlers, suppliers,
and distributors—make those achievements
happen. Their hard work on committees,
efforts to contact elected officials and regulators, and constant commitment to excellence
has enabled IBWA to make great strides.
In addition, the commitment of the IBWA
officers, executive committee, and board of
directors help guide the association toward
successful ends.
In the “Lobbying 101” education session,
“Felix” (aka IBWA’s Dan Felton) shows
attendees how not to handle a meeting
with your legislator.
While IBWA accomplished a great deal
in 2012, there is still plenty more for the
association to do. The future of IBWA
and the many opportunities available
to the bottled water industry make for
exciting times ahead; however, there are
many challenges still looming on the
horizon. IBWA members can rest assured
that IBWA will continue to fight hard to
defend bottled water businesses.
2012 IBWA PROGRESS REPORT | 17
IBWA Mission Statement
“To serve the members and the public, by championing
bottled water as an important choice for healthy
hydration and lifestyle, and promoting an environmentally
responsible and sustainable industry.”
The International Bottled Water Association (IBWA) is the authoritative
source of information about all types for bottled waters. Founded in 1958,
IBWA’s membership includes U.S. and international bottlers, distributors,
and suppliers. IBWA is committed to working with the U.S. Food and Drug
Administration (FDA), which regulates bottled water products. To achieve
its goals and best represent its members and the bottled water industry,
IBWA utilizes a system of committees to establish objectives and execute
successful programs. IBWA committees include Communications, Education,
Environmental Sustainability, Government Relations, Membership, State
and Regional Associations, Supplier and Convention, and Technical.
IBWA | 1700 Diagonal Road | Suite 650 | Alexandria, VA 22314 | 703.683.5213 | Fax: 703.683.4074 | www.bottledwater.org