Have you ever wondered about the source of your favorite bottled water? It might surprise you to know that corporations like PepsiCo sell tap water under brand names such as Aquafina.
This blog article will shed light on the business strategies behind bottling and selling tap water, including profits, costs, and consumer controversies.
Keep reading if you’re curious about what’s really in your bottle of water!
The Business Model of Bottling Tap Water by Pepsi
Profits from Aquafina water brand
PepsiCo, a multinational giant, is banking huge profits from its bottled water brand – Aquafina. Municipal tap water turned into an ultra-purified commodity contributes a significant part to their revenues.
Over the last year alone, both Pepsi and Coke raked in over $1 billion solely from their respective bottled tap water brands. A key player in the global market, Aquafina has established itself as one of Pepsi’s multi-billion dollar brands with strong dominance.
With sales booming worldwide and surpassing soda sales massively, these figures lend credence to how lucrative this segment has become for companies like PepsiCo.
Bottling municipal water
Pepsi, along with other major beverage companies like Coke and Nestle, has a profitable business model of bottling municipal tap water and selling it as bottled water.
This practice is highly lucrative for these companies, even though the cost of purchasing tap water is significantly lower than what consumers pay for bottled water.
By packaging and marketing municipal water as a convenient and refreshing beverage option, Pepsi is able to tap into the growing demand for bottled water products in the market.
Consumer Concerns and Controversies
Consumers express concerns about financial hardships and water shutoffs, feeling like they are paying twice for bottled water and perceiving that vulnerable populations are being targeted.
Financial hardships and water shutoffs
Many individuals facing financial hardships are being subjected to water shutoffs, leaving them without access to clean and safe drinking water.
This creates a desperate situation where vulnerable populations may turn to purchasing bottled water as their only source of hydration.
Unfortunately, this means they are forced to pay twice for an essential resource that should be accessible and affordable for all.
As Pepsi and other beverage companies continue to profit from selling bottled tap water, these controversies surrounding financial hardships and water shutoffs persist.
Pepsi’s Investment in Bottled Water
Pepsi has made a significant investment in bottled water, launching premium brands like LIFEWTR and focusing on expanding its portfolio of bottled and canned water products to counter the decline in soda sales.
Launch of premium water brand LIFEWTR
PepsiCo made a strategic move in the beverage industry with the launch of their premium water brand, LIFEWTR. This new addition to their portfolio aims to tap into the growing market for enhanced waters and cater to health-conscious consumers.
With electrolytes added for hydration, LIFEWTR is sold in bottles and offers a refreshing alternative to carbonated beverages. It’s part of Pepsi’s broader effort to adapt to changing consumer preferences and offset declining soda sales.
The introduction of LIFEWTR demonstrates Pepsi’s commitment to staying relevant and capturing market share in the bottled water industry.
In conclusion, Pepsi is indeed in the business of selling bottled water. Their brand Aquafina, which bottles municipal tap water, has proven to be highly profitable.
With their investment in premium brands like LIFEWTR and the launch of bubly, PepsiCo continues to expand its portfolio in the growing bottled water market.