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Swiss Migros's Plan to Export Bottled Water to the US Draws Critics

Source: FLEXNEWS
09/07/2008

9 July 2008 – Local media report that Migros, Switzerland's largest retailer, plans to export its Aproz mineral water to the US and even further away, causing an outcry amongst Swiss politicians.

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One Swiss MP even called for a nationwide debate, dubbing the idea “stupid”. Oil prices have skyrocketed, prompting another Swiss MP to appeal for a ban on the sale of bottled water, which is much less environmentally friendly than tap water owing to its manufacture and transportation.

Michel Charbonnet, Aproz CEO, stressed that his company wasn’t targeting large export volumes. Some 28 billion litres of bottled water are sold in the US each year, but Aproz will be happy to export only “a few million bottles” to the country. The Swiss market for bottled water has become more competitive, with imported water accounting for a 40% share of a market which is currently led by Aproz.

Water will be transported by train to Basel, by boat to Rotterdam and from there by container ship to the US. Transport costs will amount to about ten Swiss centimes ($0.10) per bottle and will be absorbed by prices higher than those of standard bottled water as Aproz positions itself as a premium brand.

Aproz may consider exporting its products further afield, to China for example. Transport costs to the Asian giant have become “negligible”, according to Mr Charbonnet, as container ships often leave empty for China.




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