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How Leading Hotels and Restaurants Are Transforming Water Service

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At Singapore’s prestigious three-Michelin-starred Restaurant Zen, guests may request well-known brands of bottled water, such as Evian or San Pellegrino, only to find they are only offered water from the Swedish brand Nordaq. Executive Chef Martin Öfner explained that the establishment charges nearly $500 per person for its dining experience, yet eschews traditional bottled water in favor of this sustainable option, which is integrated into their food and drink offerings.

Zen is not alone in its choice; over 140 Michelin-starred restaurants are currently serving Nordaq water, as shared by the company’s CEO, Johanna Mattsson, in a conversation with CNBC Travel. Distinctively, Nordaq water is purified and bottled on-site using local tap water, and is also available at more than 700 high-end hotels, casinos, and cruise ships, according to Mattsson.

The motivation behind Nordaq’s operations is to significantly cut down the reliance on single-use water bottles in the hospitality sector. This includes not only inexpensive plastic bottles commonly found in hotel rooms but also glass-bottled mineral waters from Europe that are transported vast distances before reaching the table. Mattsson expressed a strong sentiment regarding this practice: “Transportation of water over water doesn’t make sense,” highlighting the company’s commitment to sustainability.

Nordaq’s bottles are designed without plastic labeling to facilitate easy cleaning and reuse, equipped with wide openings that allow them to be washed in standard dishwashers. Additionally, the bottles are securely sealed and date-stamped each time they are refilled, ensuring quality and safety.

At the Mandarin Oriental Singapore, the hotel has adopted Nordaq’s sustainable water solution throughout its facilities, having introduced this system in 2023. Hotel Manager Cindy Kong provided an insight into their bottling process, stating that the facility can produce up to 500 bottles of purified water per hour and generally processes between 1,000 and 2,000 bottles daily.

Nordaq is part of a growing trend among premium sustainable water companies. For instance, Castalie is featured in over 700 hotels across France, while Purezza has established its presence in more than 5,000 venues across 13 countries. Additionally, ITC Hotels in India has introduced its own “zero-mile” water brand called SunyaAqua, aimed specifically at curtailing single-use plastic bottles in its 140 establishments.

Among other companies in this sector is Be WTR, which caters primarily to the hospitality industry. Their approach, as explained by CEO Mike Hecker, focuses on limiting transportation distances for water bottling, aiming to keep it within a 10-kilometer radius of consumption to minimize carbon emissions. While their primary operations are based in the UAE, Be WTR has expanded into 12 countries, including recent entries into Canada and China, supported by a recent Series C funding round of $44 million.

Be WTR’s products are found in a variety of hotels, including the long-established Le Bristol Paris and the newly inaugurated Standard Singapore. Hecker mentioned that Be WTR has secured a global agreement with Accor, positioning itself as a preferred partner for Accor’s luxury hotel brands, which include renowned names like Raffles, Pullman, and Sofitel.

Less waste, higher profit

Firms providing no- or low-transport filtered water assert that their services can save clients from disposing of millions of plastic bottles each year, in addition to offering a compelling financial incentive. Hecker shared that Be WTR’s installation at the Westin Dubai Mina Seyahi resulted in saving over a million imported bottles annually, showcasing significant environmental and economic benefits for their clients.

Nordaq’s impact is marked by their reported savings of approximately 5.7 billion plastic bottles from being utilized, a number derived from their operational data. Though Hecker refrained from disclosing the pricing of Be WTR’s bottles, he indicated that they are competitively priced in comparison to European glass-bottled mineral waters.

In terms of cost, Mattsson noted that producing each bottle of Nordaq water ranges from 11 cents to 21 cents, with the selling price being significantly higher. For example, The Providore Singapore offers still and sparkling Nordaq water at $2 per person, while certain luxury hotels may charge quadruple that price for a single bottle. Purezza, meanwhile, estimates its production cost per bottle at around 30 cents, or about one-fifth of traditional bottled water costs, and suggests that they can command the same retail price, creating a substantial profit margin for vendors.

Source
www.cnbc.com

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