Sunbeam, Recovery loading up $$ to take on Brita in water filtration

Brandweek, Jan 19, 1998 by Sean Mehegan

The $350 million water filtration products category has long seemed the personal playground of Brita, the Clorox-owned subsidiary that has forged an estimated 75% market share by virtue of a simple and successful strategy: Promise consumers better-tasting water and give retailers fat margins in the form of those refillable charcoal filters that must be replaced every month or two.

But some believe Brita's days of dominance are numbered. At last week's International Housewares Show in Chicago, perhaps a dozen manufacturers either unveiled new water filtration products or built on existing lines. Some of the players, including Rubbermaid and Sunbeam, have formidable resources at hand. Their aim, not surprisingly, is to attack niches not currently served by Brita and to use their own marketing muscle to neutralize Brita's long-time status as the No. 1 spender in the category.

"No. 1 is always going to be under attack," said Brian Barton, brand manager at Rubbermaid. "When you have 80% of the market share there's only way to go and that's south."

At the core of the battle lies the question of just how unsafe the nation's drinking supply is. The U.S. Environmental Protection Agency recently declared that about 10% of the sediment underlying U.S. surface waters is "sufficiently contaminated" with toxic pollutants to pose a health threat to humans and wildlife. Later this year, Congress will begin requiring municipal water authorities to disclose contaminant levels that exceed federal regulations.

All of that means good news for water purifier makers. But it could also mean confusion to consumers, who for years have grown accustomed to Brita's simple message that water should just "taste better." The newer systems hitting the market address not just taste, but health and safety.

No. 2 water filter maker Recovery Engineering, known for its Pur brand, will spend $40 million this year in advertising and promotion--some $10 million more than Brita--to support its line of faucet-mount and pitcher filters. The spend includes a $15 million outlay for Pur Plus, a new pitcher system that's touted as the most technologically-advanced to date. Whereas Brita's system only removes lead and chlorine, the Pur filter also removes contaminants such as cryptosporidium and giardia, both of which can be harmful and sometimes fatal to humans.

Sunbeam, famous for blenders and toasters, will weigh into the category with Fresh Source, a product that removes microbiological cysts as well as chlorine and lead. Sunbeam will back the product with an estimated $10 million advertising outlay, set to begin next month.

Brita claims not to be worried. "The way we see the market, this business is geared more towards taste," said a Brita rep. "Consumers are interested in taste. Bacteria is way down the list."

In a $30 million ad campaign unveiled earlier this month, Brita does not even mention harmful impurities. A TV spot dubbed "There Was a Time" features shots of rushing streams set against a backdrop of mountains and a dark, brooding sky. "There was a time when it was perfect," the voiceover says. "You can have this taste . . . again." Young & Rubicam, S.F., handles.

Brita, however, may be more concerned than it is letting on. The company, buffeted by new product intros that have knocked down prices across the category, was forced to offer consumers an unusual 2-for-1 deal on its pitcher last fall. Also, rumors swirled around the housewares show that Brita will shortly roll out a faucet-mount system that removes cryptosporidium and giardia.

"Brita people were constantly hanging around our booth, examining our system," said Mark Vanderberg, strategic marketing manager at No. 3 manufacturer Teledyne, which unveiled a next-generation faucet-mount product at the show.

If the report proves to be accurate, it would undercut Brita's claim that only taste matters, and might cannibalize sales of its pitcher product. A rep would not comment on the rumor.

Recovery Engineering's Pur ad campaign, meanwhile, almost certainly raises the bar for Brita. The effort will begin this week with an infomercial running on national cable television through June. Recovery will follow that with a schedule of 30-second spots on cable and spot network TV. The ads, via Campbell Mithun Esty, Minneapolis, will pointedly demarcate the differences between Pur and current pitchers.

"This is a very demonstrable improvement," said Brian Sullivan, president and ceo of Recovery Engineering, Minneapolis. "If you ask consumers if they want more contaminants taken out or less, they'll say more. People will pay more for a higher-performing product."

Brita is also getting hit from the low-end. Rubbermaid's entry, first introduced last year, uses similar technology as Brita while attacking it on price/ performance. Rubbermaid's filter can cleanse 800 8-oz. glasses of water versus 560 for Brita at the same price, according to Barton. The company recently repackaged its pitcher product and will also unveil a portable 1 6-oz. bottle this spring with a carbon filter built into the cap.