Watercooler Industry Round Up – September 2007

Ebac Business Development Managed David Boddy speaks out on the latest trends in the Watercooler industry.

How would you describe the state of the bottled water cooler market at the moment?
David Boddy, Business Development Manager, Ebac (DB):"Statistics show that the market is slowing in terms of unit sales. That’s not to say that there isn't a market for coolers – many people are switching to plumbed in units instead. The POU market has grown by 23% this year as more people are recognising the health and environmental benefits of having a mains connected supply. There is no delivery, storage or manual handling of heavy bottles, the number of delivery lorries on the roads is reduced and injuries caused by lifting the heavy bottles are eradicated. With new cooler designs and smaller bottle sizes, the small office and domestic markets could be very lucrative."

What benefits do bottled coolers offer?
DB: "Bottled coolers are extremely convenient as they can be sited virtually anywhere. This means that they can be positioned in the centre of an office, or in areas of high user concentration. This increases convenience for the end user and maximises water consumption. POU coolers are a lot more restrictive and are rarely situated in the ideal end user location. Bottled coolers do not require installation, which is easier for the distributor and eliminates disruption for the end user."

"Drinking more water can dramatically improve concentration and therefore enhance output from the workforce. In this respect, both bottled and POU coolers are a sensible investment for any business. However, many end users now choose to only drink bottled water as they dislike the taste of tap water. POU coolers are seen by staff as the 'cheaper option' – that is if they can be seen at all and not sited in some distant kitchen or canteen. Investing in bottled water coolers is a clear indication of an employer who demands the best of and for their workforce."

"And of course the distributor benefits from the increased revenue of bottled water sales."

Do you think bottled cooler companies should also offer POU options?
DB: "As a manufacturer of both types of coolers we have to say, yes. Clearly many of our distributor businesses are geared to delivering bottled water, so providing POU coolers could disrupt their business model. On the other hand, diversifying the fleet range by adding POU options maximises distribution opportunities and opens doors which would otherwise remain firmly closed. “POU is ideal for public institutions like schools and hospitals where cost is an overriding factor. However, cost control is an important aspect of any business, so demand for POU is unlikely to subside. The environmental impact of delivering bottles is also likely to be an increasing factor as businesses look to address their carbon footprints. Simply ignoring these fundamental economic issues is undoubtedly a risk. Ultimately however, individual companies need to make decisions based on their own attributes and the competitive environment in their target market. Whichever route they choose, Ebac can meet all of their needs with a tailored range of products and financial solutions."

What is your newest bottled cooler?
DB: "The FMax. It represents a leap forward in water cooler technology with a number of advances which set it aside from all other products on the market today."

What are its main features and benefits?
DB: "Three dispense levers tempt the end user with cold, ambient and hot water options. Offering greater choice widens the appeal and drives increased water consumption throughout the year, not just in the hot summer months. Also, the higher burst rate results in more water being dispensed faster, again increasing the potential to sell more."

"The FMax incorporates Ebac's patented Cassette WaterTrail technology, which replaces all parts that come into contact with water, offering 100% effective sanitisation. This can be changed on customers’ premises in seconds, resulting in more sanitisations in the same amount of time, so it's both time and money saving."

"With a worldwide focus on reducing carbon footprints, we have come up with the awardwinning vacuum insulated hot tank, which reduces energy consumption by over 30 times and therefore reduces the end user's energy bill – these are great selling points for distributors."

Which feature are distributors and customers asking for at the moment?
DB: "The biggest factor affecting a lot of foreign markets and coolers is sanitisation. For years the market has been flooded with cheap coolers which are poor quality and difficult to sanitise properly. This, coupled with unreal expectations about the number of sanitisations that a cooler service person can perform each day, has resulted in some companies being unable to adhere to the EBWA policy of three monthly sanitisations for coolers. So people need straightforward simple sanitisation methods that aren't costly or time consuming.

"Ebac believes that the only 100% effective method of sanitisation is renewal. With Ebac's patented WaterTrail, every part of the cooler that comes into contact with drinking water is completely replaced and the old one disposed of. Not ones to rest on our laurels, the WaterTrail™ is now in the third generation – the Cassette WaterTrail™. This is now so simple to change that it takes less than 30 seconds and can be replaced on customers' premises, meaning time and money savings for distributors."

How would you describe the look of your newest cooler?
DB: "The FMax combines market leading features and performance with solid, timeless good looks. Form definitely follows function. There are no details or adornments that do not enhance the function or user experience. Sound ergonomics influence the position of the dispense levers and the duplex nozzle, which itself is designed to ensure that the user cannot touch and contaminate the water supply. Details often overlooked on other coolers, such as the handle and wheels, allow the product to be sited and relocated with ease. Plastic often gets a bad press but for Ebac, ABS is the material of choice, due to its superlative surface quality, colourfastness and lustre. Oh and as well as looking good, it is extremely tough and doesn’t rust"

"At Ebac we understand that aesthetics are also extremely important, as an attractive looking product is likely to be more appealing to the end user and therefore drive increased consumption. We appreciate that every business is unique, corporate identity is king and that not everyone wants a black cooler. The FMax is available in 16 colour combinations with removable side panels that can simply be lifted off and swapped for a different colour, to refresh the appearance, or act as a replacement in the unlikely event that they become damaged. Also, if a customer has very specific requirements, we can even create bespoke panels to suit."

Which kind of location would it suit?
DB: "The FMax has a higher burst rate and larger cold water reservoir than other bottled coolers and is also supremely reliable and robust. As such it is ideally suited to locations where there are a lot of users and where water consumption is high. The FMax is perfect for all medium and large size offices and indeed any location where a POU cooler is not the users' overriding priority.

"With its 'cut above' good looks and stunning choice of colour options, the FMax looks great anywhere. The sleek black and silver combination is great for modern offices, while cream works well in more traditional surroundings. Adding brightly coloured red, blue or green side panels creates high impact, draws more attention to the cooler and can increase consumption, especially in places like gyms or sports centres."

"The FMax is a truly versatile cooler that can be used in many different locations and since it features a handle and wheels, if you don't like where it is, you can just move it!"

Do you think a cooler should stand out in a room or blend into the background?
DB: "Bottled water coolers should be sited where they are the most easily accessible by the majority of the users. To drive water consumption, the cooler needs to be seen and not blend into the background. This is not to say that every office should have a bright red cooler, but that the use of colour can help achieve the desired impact. Combining traditional black or cream with contrasting colours, as on the FMax, is a perfect example."

"With POU coolers there isn’t always the choice of positioning – they have to be placed where there is access to the mains water supply, therefore they may be hidden away in a separate kitchen or canteen, which isn’t as easily accessible. The FMax is a truly versatile cooler that can be situated anywhere."

"Many customers have asked us about customisation, so we have created coolers for companies and brands such as the Coca-Cola group, Vodafone and Powwow, to suit their corporate branding. We’ve even gone as far as to put a miniature TV screen onto coolers for a customer."

Are cooler colours and shapes influenced by trends in décor, furniture and even fashion?
DB: "It is fair to say that designers take their inspiration from all sorts of areas, although it seems unlikely that our designers at Ebac are influenced by the latest clothing fashions. Our coolers are designed to perform and there are no details or adornments that do not enhance the function or user experience."

What kind of designs do you think will be popular in the future?
DB: "The change from bulky boxes to sleek designs with clean, crisp lines that are modern and 'friendly' looking is likely to continue."

"Coolers come under a lot of strain from the heavy bottles on top and continual usage so it's important that the materials used to make them are hardwearing and robust. Distributors don't want the cost and inconvenience of fixing or replacing broken coolers, so they must be able to withstand heavy usage throughout the life of the cooler. Our coolers are made from ABS polymer, so they are sturdy and safeguard against rust if spillages around the cooler occur."

"We are certain of the longevity and durability of our coolers, so we are prepared to provide a substantial warranty should anything occur."

Do you carry out market research among your customers?
DB: "At Ebac we take on board customer feedback from any source about any aspect of the company – not just our coolers. It could come from a customer who’s called our contact centre about a domestic cooler or a distributor about the finance packages we offer. We will always listen and investigate any suggestions."

"We understand our customers as well as we understand ourselves. We know from listening to them what they want and this enables us to continually produce ground breaking products that deliver benefits to the distributor as well as the end user. "

"It was in reaction to customer feedback that we adapted our SlimCool domestic cooler from a bottled water cooler to one that can filter ordinary tap water, making it more convenient and economical for the user. "

How do you market your coolers? Do you focus on technical features or the way they look?
DB: "The philosophy at Ebac is to produce innovative products that provide clear benefits and add value to both the product and to our customers' businesses. In our marketing communications we tend to focus on these aspects, as they set us aside from our competitors. No one else boasts 100% sanitisation from complete replacement of all water contact parts. No one else boasts a hot tank that is 30 times more energy efficient and saves the end user money."

"At Ebac we focus intently on getting the aesthetic design of our coolers just right, but tend not to shout about it in our marketing as we prefer to let our customers decide. With the FMax selling at a rate of one every four minutes, we think they quite like it."

Which is your best selling cooler? Why do you think it is so popular?
DB: "Since its launch in late 2000, the EMax has been our best selling cooler with unit sales in excess of half a million, making it Europe's biggest selling water cooler. The EMax is supremely reliable and features WaterTrail technology, making it very low maintenance and keeping lifetime ownership costs to a minimum."

"In recent months we have experienced phenomenal success with the FMax – it's been an instant hit with distributors and end users alike and increased our customer base by a massive 20%. Why is it so popular? Because in the words of our current, highly successful advertising campaign, it is 'Probably The Best Watercooler In The World.'"

Are you developing any new bottled coolers at the moment?
DB: "Ebac's technical and design team are focused not only on developing the next generation of coolers, but on the continual improvement of our existing product range to ensure that Ebac remains at the forefront of the cooler market."

What does the future hold for the bottled cooler industry?
DB: "Current cooler technology is heavily influenced by the enormous 19 litre bottles, millions of which are in use worldwide. Coolers must be designed with this in mind – taking account of their size and weight, so change is limited until these do."

Phillip Walton, Technical Director, Ebac: "I think the future of coolers will be geared towards simpler sanitisation to enable companies in countries who don’t sanitise coolers in line with the EBWA policy of three-monthly sanitisations to catch up with those who currently do. If these companies were to use Ebac coolers with our patented WaterTrail technology, there would be no question as to the effectiveness of their sanitisation methods, and ease of changing means the three monthly policy is highly attainable."

Back to Top