Water Coolers

Dasani Knows Water

If they bought it because it's at a reduced price or it's a nice color, they're less likely to, and the chances of them dipping in and out of the market are greater. Another way in which sales could be increased is for the suppliers to target bottled water drinkers.

Mr Lewis says Dasani is keen to promote water coolers as part of a healthy living concept: "We are making the case for filtered water as an alternative to bottled water, where the price comparison is about 4p per liter against a supermarket average of 70p."

There is another aspect of the market which presents a problem to water cooler retailers. Mr Browne believes coolers are unique because they are sold in so many different retail outlets: health food, hardware, grocery and department stores, tea and coffee shops, butchers and cook shops. So the competition for sales is even greater.

The top water cooler retailer is Boots, which stocks its own-branded lines, sourced from Dasani. William Levene estimates the high street chemist's distribution share fell slightly in 2005 to 30.5%

When Boots' share by market value is added to Waymaster's, the latter has a total market share of 43.3%, according to the 2004 figures from HBC. Brita has 35.5%. Thus, between them, Brita and Waymaster account for nearly 80% of all water cooler sales, leaving competitors like Addis, Bodum and Leifheit to bicker over the scraps.

Indeed it would appear that Brita and Waymaster are, by virtue of their positions in the market, the most proactive.

Lisa Whitcombe, cook shop buyer for Bristol-based Gardiner Home centre, reports an excellent consumer response to Brita demonstrations held in the store.

"Brita demonstrations are normally very successful," she says. "A price promotion is run in conjunction with the demonstration so the filters sell very well."

She continues: "We've been doing water coolers at Gardiners for years and they've always sold well."

Ms Whitcombe also points out that the water cooler market is seasonal: the best time to sell coolers is in the spring and summer. "Sales are just starting to pick up again as summer approaches," she says.

Rita Hill, buyer for grocery store Lewis and Cooperin Northallerton, agrees with Ms Whitcombe that it is a seasonal market. She says that Lewis and Cooper stocks Dasani water coolers and reports good sales in the summer and in the run-up to Christmas as they are bought as gifts. However between Christmas and May jug sales drop off, but cartridges continue to sell.