Proud Source Water announced this week a regional distribution agreement with PepsiCo Beverages North America (PBNA), placing the sustainably-packaged alkaline water brand on blue trucks servicing food service providers, stadiums and retailers in the Western region of the country.
Based in Idaho, Proud Source produces a line of locally-sourced alkaline spring water packaged in recyclable aluminum bottles. Available in still and sparkling varieties, Proud Source Water contains no added minerals and has a natural pH of 8.5. The company is one of several on the market, alongside PATH, Open Water and Ever & Ever, to turn to aluminum bottles as a means of creating environmentally friendly water brands.
Last year, Proud Source closed a $6 million financing round led by AF Ventures. The company said at the time it intended to use the funding to expand its presence on the West Coast.
“Our new distribution partnership with PepsiCo will provide more consumers throughout the West widespread access to sustainable spring water in all channels,” Proud Source Water president CJ Pennington told BevNET in an email. “With PepsiCo’s strong DSD network, it will enable stronger market execution for the brand through merchandising, delivery frequency and account service.”
The partnership comes as PepsiCo continues its focus on sustainability, including incentives to reduce 35% of new plastic used in its beverage packaging and increase recycled plastic content by 25% across its portfolio by 2025. As of 2019, the company reported it had reduced fresh plastic use by 1% and increased recycled plastic use by 4%. PepsiCo also aims for 100% of its packaging to be recyclable, compostable or biodegradable by 2025 and has achieved 88% thus far.
Available in over 15,000 stores nationwide, Proud Source is available in retailers including Whole Foods, Sprouts, Raley’s, Publix, Albertsons, Kroger, HEB, Extra Mile and Rite-Aid, in addition to numerous natural co-ops.
In 2019, the San Francisco International Airport banned all sales of plastic water bottles in a move that proved a benefit for aluminum packaged water brands (it still allows plastic for flavored beverages). Brands such as PATH have also seized the opportunity to partner with high-end resorts, restaurants and other on-premise accounts seeking to reduce their carbon footprint by selling sustainably packaged products.
Some retailers are also taking a stand: New Seasons this month announced it was dropping all single-use plastic water bottles from its stores. Others, such as Giant Eagle and Kroger have set their own goals, with the former committing to remove all single-use plastic by 2025. A recent report by Trivium Packaging found that 67% of consumers say they consider recyclable packaging an important quality in the products they buy. Among younger consumers, under 44 years old, 83% said they’re willing to pay a premium for sustainably packaged products.
Sustainably packaged water brands have also become targets for investments as consumers increasingly reject single-use plastic. Today, PATH announced it had received investment from TrofÍ Holdings, a firm funding mission-driven, sustainable food and beverage brands. TrofÍ founding partner Alexandra Peterson Cart joined the brand as an advisor stating in a press release that “The realities of our single-use habits globally are coming to a head, therefore we need scalable and sustainable business solutions like PATH that solve for growing eco-conscious consumer demand.” Terms of the deal were not disclosed.
Last year, canned water brand Liquid Death raised $32 million across two financing rounds. The company has made sustainability a key part of its platform and has adopted “Death to Plastic” as a marketing slogan with tongue-in-cheek campaigns such as “Keep the Underworld Beautiful” and launched a morbid “Cutie Polluties” plush toy line calling attention to environmental issues.
According to Pennington, the PepsiCo partnership will be a key driver in growing brand awareness and helping it remain competitive on shelf. As the category sees an influx of aluminum-packaged brands, he noted that Proud Source benefits from resealability and a quality taste profile.
“Consumers are becoming more educated about the impact of single-use plastic on the environment. Achieving circularity is our ultimate goal,” Pennington said. “Aluminum is a true enabler of the circular economy as an infinitely recyclable material with high scrap value and effective recycling infrastructure.”