CORPORATE PROFILES: BOTTLED WATER Nestlé/ Nestlé Waters/ Nestlé Waters North America Nestlé was founded in 1866 in Switzerland by Henri Nestlé, a pharmacist, who developed a food for babies unable to breastfeed. The company grew through acquisitions. During World War II Nestlé focused on developing markets in Latin America and selling Nescafe to troops. On its website, Nestlé notes: “The first half of the 1990s proved to be favorable for Nestlé: trade barriers crumbled and world markets developed into more or less integrated trading areas.” www.Nestlé .com Today Nestlé. is the world’s largest food and beverage corporation with annual sales over $70 billion. Nestlé entered the bottled water market by buying Perrier in 1992 which had become very successful in the U.S. “In April 2002, the [Perrier] Group changed its name to Nestlé Waters, a token of Nestlé's decisive commitment to the bottled water market, which now represents 9% of its sales. Today, Nestlé Waters is established in 130 countries and markets 77 different brands produced in 33 countries.” Nestlé’s 109 factory sites around the globe will increase significantly if their prediction that “Sustained growth patterns forecast a doubling of the bottled water market by 2012” proves accurate. Nestlé Waters of North America is located in Greenwich CT. www.Nestlé .com & www.Nestlé -waters.com/en Brands— Perrier—Bouillens spring, bought by French doctor in late 19th century, was sold to an Englishman, then in 1947 sold back to a Frenchman where it thrived.. www.Nestlé .com Vittel: Société Générale des Eaux Minérales de Vittel was formed in 1882 to bottle mineral water from a spring in the Vosges Mountains of eastern France. By June 1898 had sold its first million bottles. In 1992 Nestlé acquired a controlling interest in the company. Today Vittel is one of the world's top ten best-selling brands. www.Nestlé.com Nestlé Pure Life Introduced in 1998, this is treated/remineralized water developed for emerging countries and since 2002 sold in the U.S. competing directly with Pepsi’s Aquafina and CocaCola’s Dasani (see below). www.Nestlé .com Other of Nestlé’s 77 bottled water brands include: Bottled in U.S. Arrowhead (CA) , Calistoga, Deer Park (PA & FL) , Ice Mountain (MI), Ozarka (TX), Poland Spring (ME), and Zephyrhills (FL). Nestlé’ also owns Crystal Geyser with locations in Mt. Shasta CA, Olancha Peak CA, Benton TN, Salem SC and Moultonborough NH, although the Crystal Springs website gives no indication of this. Nestlé has also bought Cobb Mountain Springs just north of Napa Valley CA, a small independent that went bankrupt. This list is not definitive of Nestlé brands since the company is aggressively prospecting for new sites and purchasing existing sites.

Nestlé and plastic: In 1969, a year after “Vittel revolutionized the industry when it launched the first PVC bottle in May 1968,” Nestlé acquired a 30% stake in the company. Nestlé then introduced bottles using the all-new plastic PET bottles in 1992. www.Nestlé .com Danone Waters of North America/Danone Group Danone’s history is intertwined with the history of “no-deposit, no-return” bottles. The company was formed in 1966 when two French glass companies merged “to cope with changing market trends toward ‘no-deposit, no-return’ bottles”. Through mergers, including with Nabisco’s European biscuit division, Danone became the third largest European food corporation by 1986. Today it operates in 120 countries and is best known in the U.S. for Dannon yogurt. www.danone.com Danone entered the bottled water market by buying Evian in 1969. The Danone Group claims to be the international leader in bottled water sales by volume. www.danone.com In 2002 Dannon hooked up with CocaCola to form CocaCola Danone Waters. Coca-Cola now manages the marketing, sales and distribution for the Danone’s water brands in the U.S. and Canada. Inside the Bottle p 21 (Also see Coca-Cola below) In 2002, Danone Waters of North America formed a joint venture with Coca Cola forming CCDA Waters LLC in which Danone had a 49% share. The CokeDanone deal in 2002 catapulted Coke into second place in overall bottled water sales in North America. In April 2005 Coke bought out the Danone share and now has full ownership of Dannon, Sparklets and Alhambra brands. (phone call to Coca Cola headquarters 9/1/05) Under the agreement, Groupe Danone will contribute the assets of its retail bottled spring and source water business in the United States, including five production facilities, a license for the use of the Dannon and Sparkletts brands as well as ownership of several value brands. In addition to a cash payment for a 51 percent equity interest in the partnership, Atlanta-based Coca-Cola (NYSE: KO) will provide marketing, distribution and management. The partnership's assets will include Danone Waters of North America's production facilities in Mount Shasta and Anaheim, Calif.; Grand Prairie, Texas; High Springs, Fla.; and Milesburg, Pa. Atlanta Business Journal 6-17-02 Major bottled water brands: Evian: French mineral water. Source first discovered in 1789. Now sold in 125 countries. In US being distributed by Coca-Cola. Volvic: Water from the Auvergne in France.

Regional brands in U.S.-- DS Waters of America DS Waters of America was created in 2003 as a joint venture with Suntory, the Japanese giant trading company. Danone has announced plans to sell its 50% stake. (Note: the corporate juggling is very difficult to track. Sparkletts was listed as part of this deal. It is now owned by Coca-Cola - see below.) Sierra Springs Founded in 1950 in Sacramento. Now marketed from Texas to Wyoming. Difficult to find sources. One source is near Mt. Palomar in southern CA. Kentwood Springs From “deep artesian spring in the woods of Kentwood LA.” Sold in LA, MS, AL. Hinkley Springs. Started in Chicago 1888. Sold throughout the Midwest. Belmont Springs Source is spring on hill above Belmont MA. Sold in New England. Crystal Springs Source “can be found in the Chattahoochee National Forest, within the quiet woodlands west of Ocala, Florida, and from deep in the earth near Lancaster, Pennsylvania.” DS Waters may also own Crystal Springs brand drawn from the foothills of the Santa Cruz Mountains in CA www.crystalspringswater.net Also produced from Albuquerque municipal water (not confirmed) www.water.com/brands.asp (Not all water sources were identified.) AquaPenn: More plastic, less water In 1999 Dannone Group purchased AquaPenn , one of the largest U.S. independent bottlers, just after the company “introduced the first lightweight 8-oz. PET... spring water bottle that is designed specifically to fill a single-serving niche.” www.nacsonline.com Brands include Castle Rock, Pure American, AquaPenn and Great American. Sports Cap Recall Danone promotes its innovative sport cap; however its website calls consumers’ attention to the sport cap recall by the U.S. Consumer Product Safety Commission as a safety hazard to children. www.cpsc.gov/cpscpub/prerel/prhtml03/03185.html PEPSI/Aquafina Begun by a pharmacist in the early 1900s in North Carolina, today Pepsi ranks as the fourth largest food and beverage company in the world, having merged with Frito-Lay in the late 1960s, bought out Tropicana in 1998 and merged with Quaker Oats in 2001. In 1994, Pepsi got into bottled water with the launching of Aquafina in Wichita KS which was marketed in southern and western states over the next three years and then expanded into the Midwest. “By that time, close to 75 per cent of the Pepsi bottling system was producing and selling Aquafina.” (Inside the Bottle) “Aquafina was America’s best-selling national brand of bottled water based on 2003 sales volume.” www.aquafina.com

Pepsi says it has 33 Aquafina purification sites in US and Canada; however government sources only list 11 of 19 in the U.S. These are in Austin TX, Ayer MA, Cheverly MD, Cicero NY, Columbia SC, Detroit MI, Johnstown PA, Knoxville TN, Lantham NY, Mesquite TX, and Twinsburg OH. (Inside the Bottle) Note that these bottles do not say spring water. That’s right, they are filled with municipal water for which Pepsi pays very little and you pay a lot for water in their bottles. Pepsi uses uses a 7-step treatment process trademarked as “HydRO-7.” This consists of pre-filtration to remove particles from the water (what your municipal system does) followed by a polishing filter to remove particles missed by pre-filtration, followed by high-intensity light to protect against “naturally occurring organic substances,” followed by reverse osmosis to get rid of 98% of Total Dissolved Solids, followed by charcoal filtration to isolate trace elements affecting taste, followed by another polishing filter, and finally ozonation to keep away “unwanted particles.” www.aquafina.com The question is how much of this is necessary? What is already done by your municipal system? What could you do at much less cost with a good home filter? And what gets into the water from the plastic bottle (See “What You Should Know About Plastic Water Bottles,” Sierra Club Water Privatization Task Force) Aquafina can claim to be regulated by EPA as well as FDA since it uses tap water regulated by EPA which does not regulate spring water. However, Pepsi does have at least one spring water label -- Dowser Spring Water in Clayton NY Pepsi has historically used a system of separately owned bottlers around the country. However, this is now changing. Pepsi Bottling Ventures was formed with the Japanese multinational corporation Suntory International which has a 65% investment. (See also Danone) Through this joint venture, Pepsi has consolidated five PepsiCo owned bottlers to create one of the largest Pepsi bottlers in the U.S. which distributes Aquafina as well as Starbucks Frappucinno. www.hoovers.com/pepsi-bottling-ventures/--ID__60877--/free-co-factsheet.xhtml See Polaris Institute’s Corporate Profile PepsiCo, p.12, for list of schools in US which have signed exclusivity contracts to sell Pepsi products.

Coca-Cola/Dasani

Predating Pepsi by about 20 years, Coca-Cola was founded in Atlanta, Georgia in 1886, also by a pharmacist. Within a decade it was being distributed throughout the U.S. Coca-Cola is the only one of the top four which has not diversified into non-beverage products. “Coke sells nearly 400 beverage brands in close to 200 countries” with revenues in 2003 of $21 billion. (Inside the Bottle,

p. 20) Despite this focus, Coca-Cola was a late comer to the U.S. bottled water scene. Coke, like Pepsi, makes its money by selling its syrup to bottlers and had to figure out how to profit just from selling water. Its first forays into the U.S. market were unsuccessful efforts at marketing spring water—first Belmont Springs in the early 1980s, sold to Suntory in 1989, and then Mendota Springs in the 1990s. Meanwhile Pepsi’s Aquafina was taking off. By 1999, Coke also turned to municipal water marketed under the Dasani label, realizing it could profit from selling a mineral package to the bottlers. By 2002, the Dasani brand was second only to Aquafina in U.S. sales. (Inside the Bottle, p. 20-21). In 2002, Coke formed a joint venture with Danone Waters of North America forming CCDA Waters LLC in which Coke had a 51% share. The Coke-Danone deal in 2002 catapulted Coke into second place in overall bottled water sales in North America. In April 2005 Coke bought out the Danone share and now has full ownership of Dannon, Sparklets and Alhambra brands. It has a distribution agreement with Danone for the Evian brand. (phone call to Coca Cola headquarters 9/1/05) Dannon Natural Spring: Bottled in the U.S. and Canada since 1996. Full list of sources unavailable but includes Mt. Shasta CA. Sparkletts: Marketed in Los Angeles as “pure, refreshing water” not spring water. Alhambra First sold as distilled water in 1902. Available in Passadena CA. No listing of specific source. Coke produced its first bottled water in 1970 in Austria with BonAqua, now sold throughout Europe; however, when it rolled out its Dasani bottled water in the United Kingdom, in March 2004, the entire batch of 500,000 bottles was found to contain levels of bromate - a substance linked with an increased cancer risk - in excess of UK legal standards. Coke first withdrew its bottles and then retreated from the British market altogether. To add to Coke’s woes, the British Foods Standards Agency launched an investigation into the labeling claim that Dasani is "pure, still water" given that the water is drawn from municipal mains at CocaCola's factory in Sidcup, Kent. George Wright, The Guardian, March 19, 2004 www.guardian.co.uk/uk_news/story/0,3604,1173707,00.html Nor has Coca Cola been well received in India. Protests against the company for the taking of groundwater creating severe water shortages and polluting water and soil around its bottling plants have been going on for more than 10 years in the southern state of Kerala some of which are featured in the documentary Thirst. The bottling plant in Plachimada has been shut down now for over sixteen months because the local village council (panchayat) has refused to renew Coca-Cola's license to operate. When the High Court instructed the council to

issue the license, the state government of Kerala, took Coca-Cola to court over its abuse of groundwater. http://www.indiaresource.org/news/2005/1086.html Crystal Geyser Roxanne Not one of the four big corporations but definitely a player, Crystal Geyser Roxane is a San Francisco-based privately held bottler. Company bottles at the site of its springs which are located in California on the slopes of Mt. Shasta and Olancha Peak near Mt. McKinley, in Salem SC (location not given), in Benton TN in the Cherokee National Forest, and in Moultonville NH. www.crystalgeyserasw.com/sources/ In 2003, the Manchester NH-based Union Leader did a story because Crystal Geyser Roxanne was buying Castle Springs, the local Moultonville NH company. There is very little information on Crystal Geyser Roxanne so here is what the Union Leader NH June 8, 2003 had to say: “Until New Hampshire, we found the springs (amid protected forests) and then built a plant around it,” he said, adding, “We bottle at the source. We make our bottles at the plants and bottle the water right there. The company began bottling its ‘Alpine Spring Water’ in 1990, drawing from a spring at Olancha Peak near 14,500-foot Mount Whitney. It has since opened plants at Benton, Tenn., in the Cherokee National Forest, and at a forest-protected spring below 14,162-foot Mount Shasta in California, the plant that exports some of its water to Japan. “The small guys Allen described Crystal Geyser Roxane as a company of fewer than 300 employees — “the last small guys still playing nationally” — in a market dominated by giants like Nestlé , Pepsi and Coca Cola. “Crystal Geyser is certified to sell in Europe, but does not currently distribute its water there. In Japan, it has what Allen described as a “working relationship” with the Otsuka Pharmaceutical Co., a corporation with ties in China, Thailand, Korea, Egypt, Germany, Sweden and other countries” Bottled Water Statistics The Top 10 Bottle Water Brands in the US by wholesale dollar sales and market share. 1. Aquafina (PepsiCo) $936 million 11.3 % 2. Dasani (Coca-Cola) $834 million 10 % 3. Poland Spring (Nestlé Waters) $649 million 7.8% 4. Arrowhead (Nestlé Waters) $546 million 6.6% 5. Deer Park (Nestlé Waters) $356 million 4.3% 6. Crystal Geyser (CGWC) $335 million 4% 7. Ozarka (Nestlé Waters) $236 million 2.8%

8. ZephyrHills (Nestlé Waters) $215 million 2.5% 9. Ice Mountain (Nestlé Waters) $208 million 1.7% 10. Evian (Coca-Cola/Danone) $145 million 1.7% (Source Beverage Marketing Corporation.) http://www.mindadvertising.com/sectors/sector_softdrinks.htm

For detailed information on the bottled water industry from an activist perspective, Inside the Bottle, An Expose of the Bottled Water Industry, Tony Clarke, Polaris Institute, 2005 Also see www.insidethebottle.org