Fiji Water

FIJI Water LLC. Case Analysis

Synopsis

FIJI Water LLC. competes with a premium product in the international bottled water industry. The company extracts water from an artesian well in the mountains of the island nation of FIJI, treats and bottles it in premium packaging and ships it to markets around the world, with select focus to date on the United States, Canada, Australia and the United Kingdom. The product is marketed as distinct from other bottled waters because of FIJI’s isolated location in the South Pacific Ocean. Their value proposition is that their water is more pure than other bottled waters because FIJI’s rainfall is free of the pollution and contaminants found in the waters of continental industrialized countries and their water tastes better because the water has absorbed unique minerals as it has filtered naturally through volcanic rock. The company has successfully positioned and grown its brand as a premium, healthy and exclusive product. However, FIJI Water has faced numerous challenges in recent years.

FIJI Water has been criticized by environmental advocate groups for the carbon footprint generated in transporting water around the world. Environmentalists have challenged the bottled water industry in general and FIJI Water specifically for selling a product that they claim is not appreciably different than average municipal tap water. In an effort to protect their brand image and preserve market share, FIJI Water has responded to these criticisms with a carbon negative corporate initiative and an “every drop is green” marketing campaign. They have invested in more environmentally friendly operational processes and engage in carbon offset activities, such as forestation. Yet these initiatives have been further scrutinized by environmentalists as “greenwashing”, a term that refers to deceptive marketing and public relations campaigns that position a product or company as environmentally friendly when the opposite is often true....