Monday, August 26, 2013

CarTalk and Bottled Water

Nightline's highly anticipated informative and entertaining automotive show was back and there was nothing out of bounds! We even had a chat about energy drinks.

Bottled water is one of those sleeper issues in the UAE. The issue is not bottled water itself but the price and the fact that a hotel can charge 22 Dhs for a bottle of water that can be bought at the grocery store for 90 Fils! Why?
Here are the notes we used to talk about the issue.
About 22 billion liters of water are consumed outside theircountry of origin.In the USA about 3% of bottled water is imported, a quantitygrowing at 20% per year.

Global about 160 Billion Liters a year, Growing at 10% per annumAmericans spent an estimated $11 billion last year drinking 31.4 billionliters of bottled water.That means the average American consumed almost 106 liters of Dasani,Aquafina, Evian and hundreds of other brands --more than any othercommercial beverage except soda.More than milk.More than coffee.More than beer.Average Price of $1.80 per liter (premium imports up to $6 per liter).Three times the cost of gasolinePerhaps 1,000 times the cost of tap water?Each year, about 2 million tons of PET bottles end up in landfills in theUnited States.

In 2006 the big fourmultinational bottledwater companies
spent $37.34 billionon advertising and marketing.


Fiji Water
Filtered through untouched virgin tropical volcanic rainforest, 3,000miles from the nearest city.1200 jobs for

But manufacture andtransport of one liter of
Fijiwater to the USA uses 81gof fossil fuels, 720g of water, and emits 153g of green
house gasses

Great stats

Dubai: Food outlets and restaurants in the UAE are charging exorbitant amounts for bottled water as the government price caps are applicable only to groceries and supermarkets.
While the cost of a small bottle of water costs 90 fils in supermarkets, the price in restaurants can be from Dh8 to Dh22, a Gulf News survey found. The big difference was also found in the prices of soft drinks – a Dh1 drink in a supermarket was Dh20 in high-end restaurants in Dubai.
Abdul Aziz Bin Hathboor, Director of Consumer Protection at the Department of Economic Development (DED) in Dubai said the Ministry of Economy’s price cap is not applicable to cafeterias and restaurants. He said supermarkets and groceries are penalised for overcharging or violating the ministry-approved price list.
“Cafeterias and restaurants are service providers and the consumer has the choice to accept the prices specified in their menus, which the consumer should check before placing an order” Bin Hathboor said.
But Dr Hashim Al Nuaimi, Director of Consumer Protection Department at the Ministry of Economy, said the huge difference in prices should not be allowed and the Supreme Committee for Consumer Protection would intervene if complaints are raised.
The price variation in dining establishments is, however, linked to several factors, said Dr Al Nuaimi. Depending on the location, rent, and the year at which the prices were issued and approved, prices tend to vary, he added.
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He added that the Supreme Committee for Consumer Protection reviews all submitted proposals. Dr Al Nuaimi also said that specific factors play a role in the price range of products, which include the location of the restaurant and its rent.
A small variation in prices of the same or similar products, such as water, can also be seen in the market as the year in which prices were fixed for each restaurant vary, added Dr Al Nuaimi.
Year-round campaign
In efforts to control price increases of food and drink, the ministry has launched a year-round campaign to monitor prices. Mohammad Ahmad Bin Abdul Aziz Al Shehi, Undersecretary, Ministry of Economy, pointed out that a special team is working in cooperation with Dubai Municipality and development departments to launch regular campaigns to regulate prices. The campaigns also aim to guarantee consumer rights.
The Commercial Compliance and Consumer Protection sector in the Department of Economic Development has established guidelines to resolve consumer complaints.
Consumers can submit their complaints by calling Ahlan Dubai on 600 54 5555.
Price check
Prices for a bottle of water
500ml: Prices range from 90 fils to Dh22
Supermarkets: Prices range between 75 fils to Dh1
Fast-food joints: Prices range from Dh1 to Dh4
Restaurants and cafes: Prices range from Dh5 to Dh20
Hotels: Prices range from Dh15 to Dh18
1.5 litre: Prices range from Dh1.50 to Dh35
Supermarkets: Prices range from Dh1.50 to Dh2
Fast-food joints: (Small bottles only)
Restaurants and cafes: Prices range from Dh12 to Dh15
Hotels: Prices range from Dh25 to Dh35

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