Flowing concern

The type of water served in restaurants is just as important as everything else served, and sustainability is still a hot topic. So what are the best options? John Porter reports.

For a product that is, on the face of it, the least interesting beverage an operator can serve, a humble glass of H2O certainly inspires more than its fair share of passion.

Last summer, the small Australian town of Bundanoon became the first community in the world to ban bottled water. Based on concerns about the environmental impact of production and transportation, residents of the New South Wales town voted to ban the bottle and install free public drinking fountains instead.

In the UK, the Office for National Statistics (ONS) said in March that a small bottle of mineral water would replace a can of carbonated drink in the basket of typical consumer goods used to measure inflation.

While that decision reflects the growth of the bottled water market, with Mintel reporting that sales almost doubled from 1997 to 2007 to reach 2.5 billion litres, there is evidence that the ONS is lagging somewhat behind consumer trends.

Mintel figures also show that volume sales of bottled water fell by 11% between 2006 and 2008 as consumers tightened their belts.

Jonny Forsyth, senior drinks analyst at Mintel, says: "Consumer confidence is inextricably linked with bottled water consumption. When the decline in confidence began in the latter half of 2007, bottled water became one of the easiest products for cautious consumers to sacrifice."

The decline is also recorded by Britvic in its most recent soft drinks report. In 2009, bottled water sales were down 6% by value to £67m in the on premise sector, covering pubs and clubs, and 10% by volume. In the HORECA sector, both still and sparkling water saw value decline by 10% last year.

In the face of these environmental and economic challenges, the bottled water industry has rallied to make its case. The Natural Hydration Council (NHC) was formed in 2008 by three leading UK bottled water companies – Danone Waters, Highland Spring and Nestlé Waters UK, to promote the environmental, health and other sustainable benefits of natural bottled water.

For example, Highland Spring's organic catchment area has been maintained as a conservation area for more than two decades and has been awarded organic status by the Soil Association.

Bottled water companies have also made considerable progress in reducing the amount of plastic used in their bottles and increasing the amount of recycled PET.

Paul Martin, managing director of Harrogate Spring Water, believes the PR push by the NHC was overdue. "There has been some complacency, but I think as an industry we're starting to make our case better."

While acknowledging that "the eating out market has seen a decline, and that has undoubtedly contributes to an overall decline in sales of bottled water", he says the Harrogate brand has seen growth in pubs and restaurants.

A recent change of name from Harrogate Spa to Harrogate Spring reflects a stronger consumer understanding of spring water as a category and the brand also benefits from increased interest in provenance.

"The fact that we're a Yorkshire water is important," says Martin. "It's increasingly a consideration – I saw a tender document from a major hotel chain recently that specified British sourced water only."

The business sources 98% of its packaging from within 70 miles of the factory and, like other suppliers, has substantially reduced the amount of packaging used.

While Martin insists that he has never had a problem with pubs and restaurants offering tap water, he thinks there should be consumer choice, and he makes the point that some of the environmental concerns are misplaced.

"In the on trade, water is very much a discretionary purchase. All the evidence is that consumers are making the choice to drink water rather than another product, often fizzy carbonates or tea and coffee, so it's not a straight choice between drinking bottled or tap water."

In addition, profit is a dirty word, he says, but there's also profit to think of – "if you're only serving tap water, that's a revenue stream that you're missing," he explains.

Some operators definitely put their principles before profits. Tony Leonard, who took over The Snowdrop pub in Lewes, East Sussex, last year says: "I think it is ridiculous and unnecessary to transport water around the country or around the world.

"Initially, we didn't sell any bottled water but we had some customers asking for sparkling so we've started selling that. But we don't have any bottled still water. We keep a free jug of ice water on the bar, and people can help themselves."

At The Butlers Arms in Solihull, West Midlands, licensee Chris Giles has made a feature of tap water. With a large curved tap displayed at one end of the bar, the water it dispenses is chilled by the same equipment that cools the draught beer, and filtered.

"The tap has been installed at the end of the bar closest to the restaurant area – it's a matter of convenience, but we also thought that if we were going to install it, it might as well look good too," says Giles. "The tap cost £50, and the filters cost £30-£40 to replace, which needs to be done about once every three to four months. Jugs and glasses of ice cold water are offered to all customers dining."

At the opposite extreme, concession caterer Couture makes a virtue of its own label bottled water. With the business operating bars and restaurants at sites including art centres, museums, cinemas and theatres, Couture water is available in still and lightly sparkling versions, and every bottle sold includes a donation to a charity which funds clean water schemes overseas.

For managing director Marc Ward, it's tap water that's the problem. "I grew up in a hard water area and suffered from kidney stones. I don't drink tap water and think consumers should have the option of bottled water. Even with filtered tap water, I believe you can taste the chlorine that's added.

"We selected a Shropshire spring water, we wanted it to be British and it has a very natural taste – some spring water can have a muddy flavour and some mineral water can be bitter," argues Ward.

"Water is a heavy product to transport and there's not much that can be done about that. But the packaging can be recycled, and with our brand there's a contribution to a third world charity. It's about consumer choice."

Aiming to offer choice prompted Welsh producer Ty Nant Spring Water to add a third brand, Seren, to its existing Ty Nant and Tau waters last year. The company has Soil Association accreditation for the land from which its water is drawn, and it is about to begin a 200 acre native woodland replanting scheme.

David Relph, general manager sales and marketing, says: "For foodservice customers we tick several boxes. We have been constantly striving to be as green as possible for years; we are a UK business; we have a strong ethical policy supporting charities such as the Pink Ribbon Foundation; we offer a range of products through our Seren, Ty Nant and Tau brands including some PET bottled product, so we appeal to all foodservice sectors; and our environmental policy is second to none."

Another brand that offers consumers a chance to make a difference is One Water from the charity The One Foundation. All its profits fund sustainable roundabout powered PlayPump water systems aimed at improving children's lives in Africa, and to date the foundation has raised more than £3.6m and funded 536 of these water systems.

With consumers ever more interested in provenance, Hatterrall Ridge Premium Spring Water has just been launched into the foodservice sector.

The century old brand has its roots in a natural spring on a farm in the village of Longtown in the foothills of the Black Mountain on the Herefordshire/Welsh border.

Sales and marketing manager Melanie Watkins says: "Consumers are no longer just looking for great tasting food but they want local food and drink to be on the menu, as they realize the importance of supporting British producers and the green credentials that go hand in hand with them."

Despite the overall decline in water sales, British waters are doing well. Jo Jacobius, director of trade body British Bottled Water Producers, says: "Early indications are that 2009 figures will show a growth of at least 5% by UK produced waters.

"The significant innovations come largely from the sector's efforts towards greater sustainability as well as the natural green benefits of British waters – reduced food miles, known provenance and the fact that these companies act as stewards of the land, so ensuring that the water sources produce naturally wholesome water.

"Consumers are getting the message that British brands constantly strive towards greater sustainability of their way of working."

However, no one has an answer to the most important question of all. If it takes hundreds of years to filter mineral water through a mountain, why do they put a sell by date on the bottle?

Words - John Porter