Price hikes
The high mark up on bottled water products has been a long-standing story in the international media and July saw Dubai and Abu Dhabi in the spotlight when The National revealed that many restaurateurs are vastly inflating the price of local bottled water beyond the local supermarket price.

The retail price of these products is regulated by the Ministry of Economy, prompting fears over the legality of what has become a very common practice.

According to data released by The National, the outlets inflating the price by more than 2000% include Indego by Vineet at Grosvenor House Dubai Marina (2140%), The Yacht Club at InterContinental Al Bateen (2300%) and Rhodes Mezzanine at Grosvenor House Dubai Marina (2460%).

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“Many of the UAE’s restaurant diners are exposed to water brands that are also available via retail outlets and are very aware of the stark price difference that can reach,” explains Fine Waters’ Ghaly.

“Following complaints, the municipality responsible for pricing has launched a campaign highlighting these issues and is working towards mitigating such contrasts via pricing and strategy development through government intervention and penalisation.

“It seems this is what might guide the trend in the five-star segment of the market in the near future.”

Education
The emergence of water sommeliers is still in its infancy in the Middle East and the region is arguably lagging behind other markets in this respect.

Despite the fact that water menus are popping up in outlets across the region, there are concerns that insufficient experience runs deep into the market from F&B procurement down to the end consumer.

For the water market to fully flourish, manufacturers and suppliers need to take responsibility and support the F&B industry with effective education programmes.

Being able to match a water to a dish is likely to become an essential skill for chefs, managers and waiters over the coming years and this presents an ideal opportunity for suppliers to establish meaningful partnerships with the region’s F&B operators.

Nestle Waters Italy — the company behind San Pellegrino and Acqua Panna — has reported strong growth from across the region with Saudi Arabia and Qatar performing above expectation. As part of its successful strategy, the company has devised a sommelier education scheme for F&B managers in the region.

“In cooperation with a former president of the Association de la Sommellerie International, we’ve developed the Water Codex: a trilogy of books dedicated to the F&B community,” says Nestle Waters Italy business development manager, Middle East, Luciano Novena. “This teaches the rules for water tasting and the proper way to match water, food and other beverages.”

Whilst some companies are investing in water sommelier education, this is not supported throughout the industry. Without more effective pan-regional education, the strong growth forecasts for the Middle East’s bottled water market mean nothing. Suppliers and F&B operators need to work more closely together to unlock the market’s full potential by 2015.

In truth, the strategy for success in the region’s bottled water market is still undecided — but fostering consumer understanding is likely essential. So, who will dive in first?