Glacier: recession-resistant water
Published:07-April-2009
By Datamonitor staff writer
US drinking water retailer Glacier has reported an increase in revenues for 2008, bucking the trends of both the recession and the backlash against bottled water. The encouraging results demonstrate that price is not the sole motivator of consumer purchases during the gloomy economic climate, and companies must cater for a number of consumer needs.
Glacier Water has announced record revenues for 2008, up 4.8% compared to the previous year.
Glacier Water has reported an increase in revenues to $94.7 million for 2008. This year-on-year increase of 4.8% was accompanied by a reduction in the net loss applicable to the company's shareholders, which stood at $4.2 million, compared to $4.9 million for 2007.
Glacier primarily sells bottled water through 17,000 vending machines located throughout North America. Some machines are housed in retail stores, while some remain accessible to the public at any time. Convenience is still a key consumer trend and having machines that are available to consumers 24 hours a day maintains some appeal.
In recent times, the bottled water category has suffered in the public eye after many years of strong sustained growth. A backlash spearheaded by pressure groups has highlighted the cost of the bottled water industry to the environment through packaging and a large carbon footprint. Glacier has addressed some of these issues by offering a vending machine that allows consumers to use their own reusable containers.
Bottled water was also expected to lose sales in the face of the current global recession. With disposable income constricted, many consumers have chosen to drink water from a tap, rather than spend substantially more on bottled water. The encouraging results posted by Glacier show that growth is still possible in a struggling sector.
The future of bottled water is far from certain, with many influences on the market. However, Glacier's impressive figures are good news for the industry and demonstrate that sales can be maintained during tough economic conditions. This also indicates that the recession is not the only consideration for consumers, and a much broader range of factors are still influencing purchasing behavior.
