BANKING STANDARDS COMMISSION MEMBER ADDRESSES SMEs AT UK WATER CONFERNCE.


An industry that prides itself on auditing and standards of excellence today (14 March) heard about an industry whose standards have been called into question.

The British Water Cooler Association (BWCA) welcomed Rt. Hon. Pat McFadden, Member of Parliament for Wolverhampton, as the keynote speaker talking about his experiences as a member of the Parliamentary Commission for Banking Standards.

The British Water Cooler (BWCA) Association annual conference was held at Chesford Grange in Kenilworth. Aptly themed 'Power of the Past; Force for the Future', the title of the conference could apply to banks as much as to the water cooler industry. Speaking about the banking sector Pat McFadden said: "For too long the industry has been able to operate with an implicit taxpayer guarantee that Governments will step in if things go wrong. This allowed banks to gamble with other people's money and have no skin in the game."

He pointed out that banks are 'expert at getting round new rules' and 'gaming the system', saying that was why the first report of the Banking Commission recommended not just ring-fencing to protect tax-layers but 'electrification of the ring fence'. He said that Government needed to go further to put this 'electrification power' in place.

He described the effect of the current banking issue, the remit of the Commission in reviewing banking standards and culture; the economic challenges facing SME businesses; and how he believes the banking system is affecting the SME sector.
"Every company here has a relationship with a bank that is vital to the running of your business," said Mr McFadden. "That relationship is vital if we are to see the jobs and the growth that the UK needs to pull us out of recession. And we all know that in recent years this has not been easy".

"We are still living with the consequences of the financial crisis... So it just not enough to say that because the (banking) industry is big, important and contributes a lot to taxes it can never be touched or changed. Banking must operate to clear rules. Taxpayers must be protected against the dangers of its collapse. And the economy as a whole must be helped out of the credit drought that has resulted from the crisis".

He went on to argue that banks must be made safe against future risk and that this means them holding more capital than before. "Holding more capital is important as a buffer against risks," said Mr McFadden.

Mr McFadden held a role as Political Secretary to Prime Minister Tony Blair and was elected as Labour Member of Parliament for Wolverhampton South East in 2005. He is a Member of the Treasury Select Committee as well as being a Member of the Parliamentary Commission for Banking Standards, which is due to report in May.

About BWCA
BWCA Members undergo rigorous training to ensure they are up to date with the latest regulations and hygiene issues. When it comes to supplying water, like any foodstuff, guarantees of safety are essential for compliance. BWCA Members are under an obligation to adhere to strict Codes of Practice and best conduct. BWCA members are audited for compliance annually by 3rd party inspection organisations. The Association represents providers of both bottled water coolers and mains-fed systems (POU – Point of Use - coolers)

The total water cooler market was worth £109 million in 2012, according to research released at the conference by Zenith International, released at the conference.
www.bwca.org.uk

Angel Springs has completed the acquisition of the entire water cooler base of Aqua Express. This is Angel Springs fifth acquisition in the last 18 months.

Established in 2003, Aqua Express is an independently-owned water cooler supplier with over 2,000 bottled and mains-fed coolers across Scotland.

This acquisition is a good strategic fit with Angel Springs' existing distribution centre in East Kilbride.

Commenting on the acquisition, John Dundon, Angel Springs MD said: "The acquisition of Aqua Express is another example of our ambition to grow our business and lead the consolidation of the fragmented water cooler market in the UK. This deal complements our existing operations and provides a platform to further expand our customer service focussed model."

The total water cooler market was worth GBP109 million in 2012 and, whilst it is set to decline this year and next, is set to return to growth by 2015, new data shows. The annual conference of the British Water Cooler Association (BWCA) also heard that the POU (point of use or main fed coolers) market is, for the first time, accounting for slightly over half the market compared with bottled water coolers, according to research by Zenith International.

Iva Hatzold, a research analyst from Zenith International, who was one of the speakers at the BWCA conference held on 14 March 2013, presented her company's finding from data gathered in 2012. She also revealed that, the overall cooler market had declined from GBP115million in 2011 and that a steady but slight decline would continue with a value of GBP106million being predicted for the current year. However, by the year 2015, Zenith believes that there will be a year-on-year increase over the previous year of 0.6% bringing it back up to GBP106 million.

The UK leads Western Europe in terms of the number of installed water cooler units with 21% of Bottled Water units (BWC) and 30% of main fed (POU) coolers. The market for bottled cooler units had dropped from 2008 to 2011 but the decline is beginning to plateau, according to the findings.

Despite accounting for half the volume of cooler installations, bottled water punches above its weight in terms of value. In 2012 bottled water revenue stood at GBP77 million compared with just GBP32 million for POU. Despite an overall market increase, POU is expected to account for only GBP29 million in 2015 compared with GBP77milion for bottled water.

BWCA Chairman, John Dundon, said: "It is hugely exciting for us as an industry to have access to findings about the value of this market. This is the first time that we've had an accurate insight into both the number of coolers installed and the relative value of each of the two sectors of the British water cooler market from such a reputable organisation as Zenith International".

Ms Hatzold cited external market influences, primarily poor British summer weather, as a key influencer. Currently 329,000 BWCs are in place serving some 264 million litres of water across the UK in the year 2012; 334,000 POU units are installed, up by 4% over the previous year.

The BWC market, the data appears to show, is subject to consolidation by the top five companies who now account for 56% of the market - up from just 45% in 2008. The POU sector also shows similar patterns with the top 5 companies holding 62% of the overall business, up slightly from the 58% held by the top 5 players just 4 years ago.

The office sector is by far the biggest segment of the market with nearly two thirds (62%) of the overall market; institutions come 2nd with 21% of the share. The segments with room for growth are HoReCa (currently 7%), domestic (3%) and retail (1%).

Zenith predicts a slowing of the decrease in the market for bottled water but a slowing growth rate of the mains fed market over the next 5 years, anticipating growth of over 3% in that segment over the current year and in 2014.

Revenues are under pressure although, predicted Ms Hatzold, BWC prices are moving upwards but revenues for POU's are declining whilst BWC revenues are expected to return to growth from next year.

The data was revealed at the annual conference and trade show of the BWCA, whose theme was 'Power of the Past; Force for the Future'. It took place in Kenilworth. Warwickshire.

The Water Delivery Company has become a Full Member of the British Water Cooler Association. The firm has passed the Association's rigorous Distributor Audit.

Owned privately and managed by Operations Director, Dan Oakley and Finance Director, Rob Innes, the south-west London-based firm was established in 2003. The company employs 40 people at its warehouse in south Wimbledon

The Water Delivery Company offers hydration solutions to business and domestic customers within London. The core business is the supply of bottled water coolers for rent or purchase, with Fillongley Spring Water as the bottled water supplier. However the company also delivers small pack water as well as a range of mains-fed water solutions.

The management team believes that the BWCA membership will give the business a valuable additional marketing tool as many customers are keen to have the guarantees that come with BWCA safety and hygiene accreditation.

Rob Laughton, the company owner, said; 'After ten years supplying water coolers to thousands of London customers, we made the decision to test our standards against the leading industry association. Our BWCA membership will give further peace of mind to our existing and new water cooler customers who know that, because they are dealing with an accredited BWCA Member, we adhere to strict water cooler sanitisation and hygiene standards.'

General Manager of BWCA Phillipa Atkinson-Clow said: 'The BWCA is delighted to welcome The Water Delivery Company as a full member. They have embraced the importance of training and reaching the high standards required by the BWCA audit and we look forward to their participation in the Association.'

Blupura has joined BWCA, the second new member company to join the Association this month.

Blupura, whose head office is in Italy, was founded in January 2008 by Luca Costantini and Gianni Grottini, who together have over 40 years of experience in the water cooler sector.

The company manufactures and distributes mains-fed coolers to international markets in the UK. Luca Constantini says: "We offer a new style of water cooler. Blupura's technology is innovative and eco-friendly, using natural fluoride-free compressors, incorporating Italian design and stylish materials such as aluminium and glass".

Blupura's first range was the Fontemagna: floor standing, table top and under counter coolers, for the hospitality market with innovative design, touch screen commands and high performance of 150 litres per hour. Its range has now extended to office, domestic and outdoor markets through its WAVE and CITY products.

With 16 full time staff, several consultants and an outsourced labour force for the peak seasons, Blupura recorded a turnover of nearly €2 million in 2012 and predicts 30% growth in 2013.

Gianni Grottini added: "Blupura joined BWCA because we believe there is potential for networking and because the Association can facilitate the exchange of information between industry members. This membership will help us to raise our brand profile and access the British market. We believe that this cooperation with our British industry colleagues will reinforce our already solid reputation in the industry".

Wednesday 2 October 2013

15 - 17 October 2013