Fake Meat: Beef's Bottled Water

Abstract

It should not be a surprise that AWWA discourages bottled water as an everyday beverage. In fact, during their orientation, new employees are told that we opt for tap water and that bottle-filling stations in our headquarters building are available, so AWWA staff can fill their reusable water bottles at the tap—and they do. The friction between tap water and bottled water is familiar and one with a long history. The introduction of bottled water and its convenience by big, for-profit manufacturers was disruptive to those providing tap water and, as we all know, tap water providers do not have the large advertising budgets to level the playing field. None of this is new. But today there is a new attitude toward bottled water, and it's not positive. The fact that bottled water is orders of magnitude more expensive than tap water may no longer be the most powerful argument in favor of tap water. For some time now, purchasers have been concerned about the massive negative impact that discarding plastic water bottles has on the environment, both on land and in the water. The environmental argument is positive for tap water. The trend that reusable water bottles are in vogue, serving as a symbol that says “I care about the environment,” is also a plus. Supporting this trend is the fact that reusable water bottles have greatly improved the ability to keep water cold (or hot, for beverages such as coffee or tea). All of this poses an interesting theory that advocating tap water over bottled water is not to save money but to protect the environment. While environmental concern over bottled water is not new, it certainly is gaining momentum. What may have been overlooked in the past is that the millennials—who are soon to be the largest demographic—are entering their prime purchasing years and they care about a sustainable and environmentally friendly world. This may be the game changer for numerous “green” efforts. Consumer preference battles, such as tap water versus bottled water, are not confined to the water sector. Recently, the introduction of “fake meat” has created quite a buzz. Fake meat is a plant-based product that generally looks and tastes like meat. You may have heard of the Incredible Burger or Beyond Meat products. As bottled water has been disruptive to tap water, so is fake meat to the beef industry. In response to fake meat's emergence and disruption, the beef industry is fighting back. One tactic is to protect the name brand of “meat” by working to block use of the word to describe plant-based products. And while I understand that, I am not sure the word meat in the label is influencing purchasers. For many, plant-based “meat” products provide a tasty alternative to the traditional veggie burger as well as to beef burgers. However, like bottled water, plant-based burgers are currently more expensive than similar beef products. Also, there is disagreement over which is healthier. As this conflict unfolds, we'll be watching to see whether the most convincing reasoning in favor of plant-based “meat” products is that they're more environmentally friendly than beef. According to Impossible Foods’ website, its burger requires 75% less water and 95% less land and generates 87% lower greenhouse gas emissions than a beef burger. But is that enough to motivate purchasers who are traditional meat eaters? Only time will tell. This column is not really about water and meat, as intriguing as both topics might be. Rather, it expresses my thoughts about how innovative market disruption affects traditional and established sectors such as tap water and the beef industry. Market innovations also focus on purchasers’ preferences because these are what ultimately allow disruption to be successful. Further, this column points to the need to gauge how purchasers’ preferences can change and how these shifts drive innovation and markets. Of the market changes that all companies must address, it seems logical that adjusting to the environmental and sustainable preferences of the millennial generation will be important because they will shape markets as boomers fade away. My bet is millennials will select a sustainable environment over lower price. If that is true, it should be a benefit for tap water and not so much for bottled water. By extension, this generational focus could be an advantage for plant-based meats over beef. Even if it turns out that environmental and sustainable preferences do not carry the day for tap water, you can rest assured that AWWA will continue to frown on the use of bottled water as a regular beverage. For those who have the luxury to drink safe tap water, there should be no other choice.