Tapping into a valuable mineral

The source for Tipperary Natural Mineral Water is about 300 feet down in a narrow fault about 10 feet wide which extends for …

The source for Tipperary Natural Mineral Water is about 300 feet down in a narrow fault about 10 feet wide which extends for miles under the landscape near the village of Borrisoleigh - good hurling and fine water country near Thurles.

The water is surfaced in a small building at its plant in Pallas. There are not many keys to the chamber. "It's a bit like Fort Knox," says managing director Pat Cooney. Access is limited to ensure protection of this Irish liquid gold.

Quality is paramount. From the point it surfaces and at every stage of its bottling into distinctive blue containers, the water is monitored. The official sell-by date for Irish water is 18 months but Tipperary insist their water is "good for ever" because of its low bacteria levels.

The water comes through sandstone in the earth, "an excellent natural filter" but bar a wide mesh filter to remove minute quantities of silt or rock, it is completely untreated. "It's a simple operation," says quality control manager Majella Hart,"You can't do anything with it. That is the beauty of it. Basically, it's untouched."

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Ensuring it remains untouched requires exacting standards. Certification by national and international agencies including independent testing is vital for its marketing, particularly abroad.

The bore hole was first drilled in 1979 because the village had no supply but the natural mineral water found with the help of a diviner meant it became an international rather than local supply. Its presence in the ground dates from prior to 1952 confirmed by absence of tritium, a by-product of the hydrogen bomb era. Absence of nitrates from agricultural sources is also significant.

The water goes into standard bottles made of recyclable polymer material, or variations such as sports cap bottles; the idea being ease of opening/closing during activity. A growing amount goes into large drums that stand in workplaces. Described as coolers, they are purpose-built dispensers serviced by the company.

"Bag in the box" water is another successful innovation. This French system involves putting 10 litres of water into a bag which is sold in a box under the "Crystal Springs" brand. They are also finding their way into Irish homes, not to mention the coolers. People want consistency when making tea or to replace tap water because of doubts over its quality, Mr Cooney says.

The industry has quickly come a long way from nothing because water available to consumers is not as good as it was, he says. Additional factors such as people encountering mineral water abroad and a fashion element fuelled its emergence since the mid 1980s. A carbonated water boom was due to it being an alternative to alcohol and sweet soft drinks, and an accompaniment to food and wine. A move to still water consumption reflects a maturing market.

He knows his comments are likely to have every county and city manager on his back yet points to a growing "history of pollution in water sources" and huge sales in iffy water areas. "I don't believe there's a town in Ireland supplied from a river that has not had a problem in recent years."

Is Tipperary not shamelessly exploiting quality question marks over tap water? His reply is emphatic: "If water coming out of taps was as good as Tipperary Water, we wouldn't have a market." There is an undeniable perception, he adds, that tap water is often not good. "I think we have to be pessimistic about that changing. People are becoming more health conscious anyway. `Drink clean, clear, pure water' is the message. I don't object to that."

The presence of coolers in kitchens is confirmation of this quality/health viewpoint, particularly as he admits Tipperary is not an inexpensive form of water. "People are voting with their money because bottled water is not cheap."

Nonetheless, he insists profit margins are not high in comparison to other items in the grocery/drinks trade. It's higher in the licensed/restaurant trade - a sector in which Tipperary claim to be brand leaders - but there is a service factor there.

The significant competition for Tipperary, an indigenous Irish company and part of the Gleeson Group employing 400 people, is all multinational, and headed by Ballygowan, whose stated share of the home market he disputes. Tipperary's share is 28 per cent and growing, he insists.

His company exports about 10 per cent of £6 million worth of annual product. That is soon to rise dramatically with orders from the US and Middle East - an initial £100,000 order will be in Saudi Arabia presently.