Issue 3 - June, 2021
- Brian Emmerton, RD
Water Water Everywhere!
It is no surprise, but water is still the most popular non-alcoholic beverage in the world and is North America’s most requested drink. So how does something so abundantly available out of every tap become one of the top revenue opportunities for us? The water industry continues to grow, and while proponents of single plastic and other interest groups touting environmental concerns have triggered more attention to the category, sales of this clear gold continue to increase.
Water is the best way to become hydrated and ensure the body has sufficient fluids to keep the body functioning. Google searches for hydration have doubled since 2015 and there are even apps available to remind you when to drink water. Drinking more water is really about hydration as part of the wellness trend.
Do you know what triggers people in work locations to purchase a beverage? It may surprise you, but basic hunger or thirst is not the top reason. According to Foodservice Monitor, customers are selecting food and beverages at work are for the following top 4 reasons:
- Mental Upliftment: This does not always mean a caffeine beverage; it could also be quick nutrition (e.g. fruit juice) or a break that is providing an uplift (such as a water break).
- Basic Thirst/Hunger: Customers will reach for standby’s like bottled water.
- Craveable Rewards: This is where other water-based beverages come into play such as sparkling water including flavoured sparkling beverages (like Bubly) that help to balance out the craving and nutrition interests.
- Comfort (Familiarity): Selling the brands people love to keep bringing them back for more.
Has our love for water started to deteriorate? Not at all! Bottled water continues to be a top seller in workplace locations, sports arenas, and colleges and universities; all because it meets a variety of top needs, plus provides nutrition, hydration, convenience, and portability. The water category continues to expand, watch for these two up and coming trends and ensure that your beverage offering reflects this growing channel:
- Sparkling Water: While the overall carbonated soft drink category continues to decline, carbonated and sparking water’s growth continues on an upward trend. Why the popularity? Sparkling water responds to many customer needs; a mental uplift, balanced nutrition, craveable rewards, and comfort. Additionally, many health claims are also pushing the fact that carbonatation allows fizzy bubbles to fill your stomach and trick your brain into thinking you are full. However, it should be noted that the biggest overall benefit continues to be a solution for hydration.
- Alkaline Water: Believe it or not the premium price (and higher revenue opportunity) cannot be ignored with this growing trend. Alkaline water has a higher pH than regular drinking water (it is also referred to as ionized water). Alkaline water is promoted to improve energy and balance the body’s pH levels. Some argue it can neutralize acidity in your blood stream, aid in bone health, and some studies have also touted benefits to prevent diseases such as cancer and heart disease; however, there is very little credible evidence to support these claims. Despite that, sales continue to climb!
In conclusion it is all about product exposure; water needs to be always accessible to ensure your operations is able to maximize revenue. We recommend that you ensure your water options are font and center in each of your machines and display areas. And in micro markets or self-serve areas room temperature still water is still an opportunity to encourage add on purchases for later consumption; maximize your space by having a basket of water bottles close to your check out.
About the Author:
Brian Emmerton is a Registered Dietitian and the Vice President and General Manager of Complete Purchasing Services Inc, a leading supply chain solutions provider for non-commercial clients and hospitality organizations across Canada. Brian has been working in foodservice and consumer affairs for over 30 years to help clients source food and nutrition options that deliver experiences that enrich and nourish lives. Learn more about how Complete Purchasing Services can help your organization by visiting eCPS.ca.
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