Creating a value-added product from a ‘value-less’ side-stream.
The primary ingredient in Organic Water’s beverages is distilled water from the production of juice concentrate. By taking advantage of a ‘value-less’ byproduct, the company has found a way to make a refreshing new kind of beverage. With a hint of fruit flavour but no added sugar, Organic Water is both hydrating and healthy. Below we describe how Tetra Pak and Organic Water used the Demand Spaces segmentation model to refine the product concept and create a whole new genre of packaged water.
What a waste!
Says CEO and co-founder of Organic Water, Piotr Lyczko, “Consider the fact that a small juice company generates about 480 tonnes wastewater every day from making concentrates. That’s about 20 truck loads. This water can’t be discharged into the sea or a river, because it has been distilled and contains no minerals, so juice companies have to pay a disposal fee. In a water-scarce world, this makes no sense!”
Where it all began
One evening, Piotr and his two friends and co-founders, Andrzej Plak and Krzysztof Latka, sat down together to consider how this ‘left-over’ water could be transformed into something of value to consumers. “That’s where the idea for Organic Water was born,” he explains, “but it was only the beginning.” Over the next few months, the three entrepreneurs explored how the water could be processed to remove contaminants, how minerals could be added back into it, and finally, how the product range should be packaged and marketed towards a specific consumer group.
They resolved the first three questions quite easily. A Tetra Pak solution could be used to process the raw water, and a powder containing 80 trace minerals from the Atlantic Ocean could be used to re-mineralise it. The choice of package was also straightforward for Piotr since, “Carton is a natural material which subliminally strengthens the message of our sustainable product.”
Creating a saleable concept
Then came the tricky question of how and to whom the company should market its Organic Water. To help resolve this, Tetra Pak organised a workshop in Lund, Sweden during the spring of 2024.
Using the Demand Spaces model and analytical tool, Marketing Services Expert, Omar ElMasri created a profile of Organic Water’s ideal target consumer. Says Piotr, “Omar and the team presented us with a number of different parameters to choose from in order to define our ideal consumer. They then used our answers to create a very accurate consumer profile. We were really impressed!” The whole group then discussed the key messages, the ideal package, the ideal product, and the exact needs these target consumers were looking to fulfil. Out of that, they were able to develop a clear communication platform.
When organic water is not organic
One particular challenge Organic Water faced was how to profile products made from non-organic fruit juice production. Obviously, these couldn’t be called ‘organic’. Piotr explains the difference: “Organic Water is always based on organically grown fruits, which are widely available in the case of e.g. apples. However, distilled water from the production of juice from e.g. organic strawberries is almost impossible to find. That’s because the raw ingredients are so expensive, producers prefer to sell the strawberries fresh than turn them into concentrate.” The company accepted that some beverages would therefore have to be made from non-organic fruits.
Differentiating the two product lines
How could Organic Water position its non-organic products and differentiate them from the original range? Here, Tetra Pak’s analytical capabilities came into play again. Omar and the team proposed that Organic Water should create a second product line, to be called Botanic water. “Sustainability would be a common selling point for both,” he explains. “The main difference is that Botanic Water would have a consistent taste, while the taste of Organic water could vary. Transforming this into an advantage, Organic Water could be communicated even more boldly: “We’re so organic we can’t even control the taste!” Or, as Piotr puts it, “It’s a living product.”
What’s next for Organic Water?
Having defined the two product concepts, the team is now planning to run production trials at Tetra Pak’s Lund Product Development Centre. And, all being well, they will begin commercial production in time for the next harvest.
Working with Tetra Pak
Piotr and his colleagues are delighted to be collaborating with Tetra Pak: “It feels great to have such a big company on this journey with us. From the very first time we approached Marek Broecker and his colleagues at Tetra Pak, Poland, they showed an interest in exploring how to communicate the unique value of our products, focusing on people who care about sustainability. Not only is it a privilege to work with such skilled professionals, but their steadfast support gives us confidence that we’re going in the right direction.” This feeling was confirmed at the Gulfood trade fair when visitors queued up to talk to representatives from Organic Water, and again at Anuga FoodTec when one visitor asked if they’d be interested in exporting their technology to Canada.
Working with Demand Spaces
The Demand Spaces segmentation tool makes it possible for Tetra Pak’s Marketing Services experts to deep dive into questions about target groups and product positioning with customers, in a much more granular way than ever before. According to Omar, it’s ideal for small to medium-sized customers who don’t always have the necessary resources to do such analyses by themselves. He concludes, “Using Demand Spaces, we can really help customers like Organic Water with their business and product development process, providing them with valuable consumer data and analysis.”