PETpla.net Insider 07+08 / 2019

BOTTLING / FILLING PET planet Insider Vol. 19 No. 07+08/19 www.petpla.net 16 Investment in state of the art technology is the key Filling at its best We met: Bernie Zarda, Sr Vice President Premium Waters, Inc. Premium Waters is a consortium of bottling plants in the North of the US. It has a long history in the bottled water business. The company was incorporated by the Chester- man Company in 1994. That same year, it was purchased the Kandiyohi Bottled Water Company, signalling the re- entry into the bottled water industry. In 1997, Premium pur- chased Chippewa Springs, a company that has been in the spring water business for more than a century. Tour Sponsors: In 1999 Bernie Zarda, Sr. VP, joined the company; at this time they have three plants in operation. “In 2004 we started making our own bottles and preforms. We aggressively go in self production until 2007. At this time we bought a lot of Sipa and Husky equip- ment. In 2012 we built this facility here in Missouri, and started buying Krones Ergo Bloc three times, as well as the Contiform BlowFill Blocks. We also bought an Athena injection machine. For injection we also have Sipa and a Husky HyCap as well.” The corporate offices are located in Minneapolis, MN and Kansas City, MO. Through the growing network of bottling plants and distribution centers, Premium serve customers throughout the United States. In spite of continued growth, Premium made a decision not to be a national pro- ducer, preferring to perform well in the regions they serve. All of the plants have state of the art blowing and filling equipment, most is not older than five to six years. “The injection equipment is a little bit older but still works fine”, Bernie added. In total they have 16 PET lines, in this facility in Missouri there are three PET lines. “This equipment puts us in a pretty good spot: especially the energy savings, the production speed as well as the much quicker change- over are significant advantages. Also controlling and processing are much better. The payback of the technology is very fast.” Premium fills around 4 billion bottles a year, only Niagara and Nestlé fills more. The range of bottle design in shape and size is amaz- ing. The bottles were produced out of virgin PET. Acquisitions complemented natural growth and allowed to scale the busi- ness. Geographic expansion followed acquisitions of plants. They fill spring and drinking water. Premium combined branded- and private-label production as part of its strategy. By producing 5-gallon, gal- lons and PET packages, the company provides a broader service for the customers. “We do a lot of gallons, in six plants. It also enabled Premium to reach more consumers with their offerings,” Bernie concluded. In addi- tion to innovation, cost reduction and competitive pricing are ways to keep products and services going strong in the marketplace. “Today our bottle weighs 8.47 g, there is still the possibility to light- weight it, but at the moment it is a best seller”, Bernie explained, and continued: “Resin and transportation are big costs here in the North US. It is hard to control. We see a lot of resin increase; this drives us to put some more weight out of the bottle. In the last two years we have an increase of 20% in resin costs.” Bernie sees still room for growth in the bottle water market. “We have to be aware of our responsibility as water fillers, in terms of handling the springs and recycling. We gain every year a percentage of consumers changing from tap water to bottled water. Do you remember a few years ago the situation in Flint?” (see PETplanet 04/16) Premium Waters is proud to be a member of the International Bottled Water Association (IBWA). The mem- bership means for them subject to strict standards of quality that ensure continually meeting the promises of reliability and satisfaction. www.premiumwaters.com Heike Fischer and Bernie Zarda in front of the Premium Waters plant in Missouri The Krones Equipment was bought in 2012.