Iceland review - 2014, Qupperneq 62

60 ICELAND REVIEW
Drunk straight from the tap, generally
characterized by an alkaline pH and free
from chlorine and other chemicals, it’s a rare
commodity in a world where the bottled
water industry—worth USD 11.8 billion
(EUR 8.5 billion, ISK 1,400 billion) in 2012
in the U.S. alone—is growing rapidly. And
not just in North America; sales in Asia and
South America are also taking off.
Icelandic bottled water companies—there
are currently four, three of which focus on
exports—have been able to break into the
market with the offer of some of the purest
water in the world. Two of these are bever-
age companies—Vífilfell with Pure Icelandic
and Ölgerðin with Iceland Spring—and
two focus exclusively on water: Icelandic
entrepreneur Jón Ólafsson’s Icelandic Water
Holdings with Icelandic Glacial and Iceland
Glacier Wonders with Sno, headed by
Canadian Nathalie Anne Stotter. (Icelandic
Water Holdings recently placed an injunc-
tion on the company preventing the latter
from using the trademark Iceland Glacier.
The company, which is yet to announce a
new name, has had its share of bad press. In
2011, it was declared bankrupt, lost its water
lease, and later, former CEO Otto Spork
(Stotter’s father) was fined for securities
fraud).
While Vífilfell focuses on domestic sales—
mostly to tourists and to companies which
purchase bottled water for conferences—the
other companies focus on markets abroad.
Icelandic Glacial, for example, sells to North
America, Europe, the Middle East and Asia
is needed elsewhere. The question is: is it
economically feasible to transport it in large
vessels abroad? If it isn’t now, it will be in a
few years. There is an increasing demand.”
Þorsteinn says the company will be able to
deliver water into South England water com-
panies’ distribution systems for about USD 2
(ISK 233, EUR 1.45) per ton, significantly
less than currently available prices.
The potential for water exports from
Iceland has created hype before. In 2007, the
total value of exports of Icelandic water was
just over ISK 350 million [USD 3 million,
EUR 2 million] but that increased to ISK
605 million [USD 5.2 million, EUR 3.8 mil-
lion] in the first nine months of 2008. Some
of these projects, as mentioned earlier, ended
in bankruptcy, casting doubt on the viability
of the industry but since then, it’s taken off
again, with little concern raised over export-
ing the resource. The domestic market for
bottled water has also grown considerably,
thanks to the rapidly expanding tourist and
cruise industries.
cHANgINg PErcEPTIONS
Cold water is cheap in Iceland and apart
from big users like fish factories, for the
common user—with the exception of
Vestmannaeyjar—the price is calculated
solely on the size of the home, not by
usage. According to Reykjavík Energy pub-
lic utility company, the current annual water
bill for a 100m2 home in Iceland is ISK
26,000 (USD 220, EUR 160) compared
(with an emphasis on China) where its water
is used in a Christian Dior makeup line.
Responding to environmental concerns, the
company was the first bottled water com-
pany in the world to be certified carbon
neutral. The company formerly known as
Icelandic Glacier Wonders sells water in bulk
mainly for wine and pharmaceutical produc-
tion, according to a company spokesperson
with whom Iceland Review spoke. According
to the company’s website, the company also
delivers water for personal use, such as for
showers or spas, in bulk overseas “directly to
home estate, condo, hotel, villa, yacht or any
location you choose.”
Reykjavík-based Aqua Omnis ehf. also
plans to ship water abroad in oil transpor-
tation vessels carrying up to 500,000 tons.
The market is growing; by 2025, 1.8 bil-
lion people are expected to be living with
severe water scarcity, including in Europe.
Managing Director Þorsteinn Guðnason says
that the water running from Iceland’s high-
lands would otherwise flow into the ocean.
“Only a fraction of the water in Iceland is
currently being used. The rest flows into the
ocean anyway, and always has.” Some see this
underexploitation of the resource as a waste.
“In some places, the water utilities divert far
more spring water down the mountains than
can be used and the excess water is therefore
let to run into the ocean. Some would say
this is a waste,” points out Davíð Egilsson, a
hydrogeologist at the Icelandic Met Office.
According to Þorsteinn, the water should
be shipped to drier areas abroad. “The water
REsOURCEs
“Only a fraction of the water in Iceland is currently
being used. The rest flows into the ocean.”