Consumers cite “better quality than tap water” as the third most common reason for buying bottled water, according to a recent survey. Americans drank 39.3 gallons of bottled water per capita in 2016. Does questionable advertising for one brand in a corporate portfolio mean the advertising for other brands in the portfolio will also be questioned? This recall involves less than 150 bottles, which may contain a common food grade cleaning compound in a diluted form. This leaves private equity. Nestlé’s pronouncements about Poland Spring have been questioned and in one case confirmed. Financial Times Lex column comments that Pepsi and Coca-Cola will not be interested in these Nestlé water brands. © 2020 Clark Howard Inc. By using this website, you accept the terms of our Visitor Agreement and Privacy Policy, and understand your options regarding Ad Choices. Previously, in October 2019, according to The Wall Street Journal, Nestlé announced a “restructuring” of its water division in an attempt to focus less on “low-margin” water brands and more on high-end brands and functional water brands. This is not Nestlé’s first rodeo with damaged branded bottled water problems: Nestlé knows how long it takes to heal a damaged brand. While scientists are still uncertain about the long-term dangers of human exposure to microplastics, they could be linked to certain kinds of cancer, increases in ADHD and autism and even lower sperm count. An expected 44.3% growth trajectory during the next three years would put the market on tap to be a $28.8 billion business by 2021. None of the recent articles about Nestlé’s desire to sell its water brands have mentioned the Poland Spring’s current legal issues. According to The New York Times (1998), the brand grew from 3 million bottles in 1976 to 200 million bottles in 1979 and by 1998 represented 80% of all bottled U.S. water sales. Nestlé’s water webpage cites its commitment to sustainability, a claim that might seem out-of-sync with its Arrowhead actions. Bayer is now entangled in multiple Roundup lawsuits with associated costs, lost court cases and what seems to be a tunnel with no light at its end. It is possible that the Arrowhead labeling is also questionable. That makes it the #1 beverage in America, according to research from the Beverage Marketing Corporation. Along with Joan Kiddon, I have published four books on marketing, brand management and organization for brand-centricity. The gist of the lawsuit is that Nestlé’s advertising and claims for the Poland Spring brand-business are bogus: a “colossal fraud:” that, in fact, Poland Spring water does not have a drop of spring water. After an investigation, the Control Board stated that three-quarters of the water Nestlé was siphoning out of California was taken without legal right. Nestlé® Pure Life® is committed to delivering quality drinking water. (Benzene is a toxic chemical and industrial solvent. Brand-businesses must be open and truthful in order to engender trust. Perrier SA, Perrier Group, and Perrier Group NA initially said a worker contaminated a bottling machine by inadvertently cleaning the bottling machine with benzene. “I have a Contigo bottle that holds about a liter and a half. When it comes to Poland Spring Water, among some there is an undercurrent of concern that Nestlé’s truth is being tested. Get free money tips delivered to your inbox daily! The plaintiffs amended the class action suit as directed to cover 8 states not 9 states. The case for one state, Vermont, was thrown out because its definition of “spring water” is different from the FDA’s. You may opt-out by. Another reason Clark prefers filtered tap water over bottled water? In its report on Best Marketers of the Decade, AdWeek reported that “Larry Light, who turned around McDonald’s as CMO from 2002 to 2005 finished second to Steve Jobs.” In summarizing the top ten ideas of the decade, Ad Age selected “Brand Journalism,” “introduced by Larry Light as arguably the most realistic description of marketing today -- perhaps ever.” And, I was the first Chairman of the Coalition for Brand Equity - a group founded by advertisers, agencies, and media. I’m saving money every time I do that!”. Perrier never recovered. The rights to the Poland Spring’s Maine spring water were bought up by Perrier in 1980, and transferred to Nestlé when it bought out Perrier. All Rights Reserved, This is a BETA experience. Arrowhead is a storied brand: are Nestlé’s actions good for the brand-business, good for loyal customers and good for corporate citizenship? The plaintiffs believe $5 million in damages is necessary because Nestlé used "false and deceptive product labels" to overcharge consumers since the company first began bottling Poland Spring in 1993. “Not one drop of Poland Spring Water emanates from a water source that complies with the Food and Drug Administration definition of spring water,’” the lawsuit states. Nestlé has been fighting for Poland Spring for a very long time, 17 years and counting. However, the recall expanded to 160 million bottles globally after more contamination was discovered overseas. The SUNY study tested big-name bottled water brands like Aqua, Aquafina, Dasani, Evian, Nestle Pure Life and San Pellegrino. Low-end water brands compete with store brands and private label brands and have low margins. Two of the books are focused on the successful turnaround of failing brands. Remember Perrier? 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A whopping 93% of the samples contained microplastics. One-gallon containers of Nestlé Pure Life Purified Drinking Water – which were only sold in Shop-Rite stores in the five Northeast states of Connecticut, Delaware, New Jersey, New York and Pennsylvania – are being recalled. Nevertheless, Nestlé has continued to promote Poland Spring as spring water from Maine. In 2017, following a horrendous drought, the California Water Resources Control Board accused Nestlé of not having the rights to continue taking millions of gallons of water from the San Bernardino National Forest. Nestlé agreed to pay $10 million to a charity to end that false advertising lawsuit. Selling a brand-business that is mired in a lawsuit is very difficult. Nestlé Pure Life is committed to Healthy Family Hydration. The bottled water market is likely to expand further in the years to come. Nestlé resolved one Poland Spring false ad claim case: in 2003, Nestlé settled a lawsuit claiming Poland Spring water was not sourced from deep in the Maine woods. But that’s exactly what a new bombshell report found in several major bottled water brands. The company’s spokesperson would not comment on whether Perrier knew about the benzene in the French spring before the recall. The official court document stating the case runs 325 pages. There is one more issue that might make the sale of Nestlé’s mainstream water brand-businesses a difficult sell: an ongoing Poland Spring class action lawsuit. CEO of Arcature brand consultancy focused on growing brand value, EY & Citi On The Importance Of Resilience And Innovation, Impact 50: Investors Seeking Profit — And Pushing For Change, Michigan Economic Development Corporation BrandVoice. In 1990, Poland Spring had about $621 million in revenues, and approximately 70% of its sales were bottles sold at retail in stores.

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