Vitamin Water

3433 WordsNov 5, 200814 Pages
History and Introduction In the early 1990’s, when Manhattan was hit by water contamination, Bikoff set out to buy bottled water and found that except for the brand name, there was very little difference between the different brands of bottled water sold. Bikoff was looking for additional nutritional value rather than plain water. Finding none, he started conducting an in-depth study about different companies making bottled water. He found that he could use vapor distillation to create an alternative to bottled water. Bottled water was generally procured from springs and contained some dissolved minerals, which could be removed using vapor distillation. Bikoff then came up with the idea of starting a company that could offer a…show more content…
As of 2005, the company was selling around two million bottles per day, with VitaminWater accounting for 75 percent of total sales. Furthermore, in 2006 PepsiCo Inc. announced that it had agreed to change the packaging label, and cap of its SoBe Life Water, after the settlement with Energy Brands Inc, maker of Glacéau’s range of enhanced water products. In April 2006, Energy Brands Inc. had filed a lawsuit against Pepsi, alleging that SoBe Life Water’s packaging label, and cap were similar to those if Glacéau’s VitaminWater and that Pepsi intended to confuse the consumers with its new packaging. Pepsi had resorted to trade dress infringement and dilution and its label and bottle resembled that of VitaminWater. It was also alleged that Pepsi had launched SoBe Life Water after it failed to acquire Energy Brand in early 2006. The lawsuit and its subsequent settlement indicated the growing insecurity of the soft drinks majors, which were facing threat from companies promoting healthy alternatives to soft drinks. Energy Brands, the parent company of Glacéau, was one such company, which advocated healthy living through low-calorie, low-sugar drinks, and non-carbonated water with additional nutritional supplements. Glacéau’s line of enhanced water products comprised VitaminWater, Smartwater, and Fruitwater. Energy Brands was credited with created a new category of drinks popularly known as “enhanced water products.” Inventory
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