Sat, May 04, 2002 page17

• Sales of bottled water surging

  PANIC BUYING In recent days, consumers have flooded convenience and hypermart stores to stock up on supplies, fearing stricter water-rationing controls may be put in place in the weeks ahead

  • By Annabel Lue / STAFF REPORTER
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  Sales of bottled water have shot up like a geyser in recent days as consumers -- fearing stricter water-rationing measures in the days ahead -- stock up supplies.

  "This week our bottled-water sales surged more than 500 percent compared to last week, to NT$1.2 million," Sarah Wu (吳明君), marketing manager at UK-based Tesco Stores (特易購), said yesterday.

  But keeping up with demand has been no simple task.

  

  A panic-stricken shopper stocks up on bottled water yesterday at a Taipei-area convenience store. Retailers are reporting increased sales of bottled water, with consumers fearing government-imposed water rationing may lead to decreased supplies.

  PHOTO: CHIANG YING-YING, TAIPEI TIMES

  "Starting this week, we have had to put more than 10,000 bottles on shelves daily to meet customer demand," said Lily Lee (李莉莉), public relations manager at Carrefour Corp Taiwan (家樂福). "That's up from about 800 in March. ... The 500ml bottles are the most popular choice."

  Carrefour's stores in Taoyuan, Hsinchu and Miaoli have reported the biggest jump in sales, Lee said.

  Consumers are choosing size over brand name, with big and cheap bottles among the best-sellers, the spokeswoman said.

  She estimated that demand will continue to remain high until nationwide drought conditions improve.

  "On Wednesday, the labor day holiday, our 500ml bottled water was sold out," Lee said. "We expect more people will come to buy water during the weekend."

  To meet the market's demand, domestic mineral water companies plan to step up production.

  "We've decided to open more production lines and extend working hours," said Lee Jung-che (李榮哲), a deputy manger at Uni-President Enterprises Corp (統一企業).

  Uni-President produces and distributes two domestic brands of bottled water: President Mineral Water (統一麥飯石水) and H2O Water (統一純水).

  "We believe our bottled-water production should be fine through June," he added.

  But if rain doesn't come in the near future, profits for producers of bottled water may dry up.

  "If the drought extends for another month, we may be forced to suspend production or [bottlers will have to] go deeper underground," Lee said.

  But while fears of strict water restrictions have boosted sales for some producers, distributors of fancier brands have yet to benefit.

  "Sales of our mineral water haven't had significant growth recently," said Shirley Chen (陳佚茜), a senior executive at Tait Marketing & Distribution Co Ltd (德記洋行), the local agent for French-made Evian Natural Water.

  Chen noted that Evian is positioned as premium mineral water brand and has a higher price tag. "Most consumers can't afford or decide not to choose [Evian] to stockpile," Chen said.

  Chen also said that no shortage of bottled water is likely, and there's no need to increase orders.

  Meanwhile, a government official yesterday asked consumers not to panic.

  "Most consumers are over-reacting ? the situation is not as serious as they think," said Cheng Yu (鄭優), vice chairman of the Fair Trade Commission.

  Cheng said the nation's bottled-water market is healthy and the government would be on guard for price gouging.

  Even if the government decides to purchase water from other abroad, Cheng said, prices should remain under control.
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