Coke looks to tap free water machine into a cash stream
NEW YORK — Can a machine that dispenses water for free also turn into a cash stream for Coca-Cola?
The world's largest soda maker is testing a fountain that lets people fill reusable water bottles with free, filtered water — but also offers the option of paying to add bubbles and fruity flavors. It's an example of how the maker of Fanta, Sprite and Powerade is searching for new ways to make money as Americans cut back on traditional sodas.
For now, Coca-Cola is testing just one “Dasani Purefill” machine on the campus of Georgia Tech, across the street from its headquarters in Atlanta. It says it plans to expand the test on a rolling basis this fall to 20 machines on campuses in 15 states, though it did not specify locations.
The concept: You can have filtered water for free, or swipe a credit card to add bubbles or flavor for 5 cents an ounce, plus a 15-cent transaction fee. So filling a 20-ounce bottle with bubbles and flavor would cost $1.15.
You can't get sweeteners and other ingredients.
The idea hitches a trend that has no sales potential for Coke — reusable water bottles — to one that does — sparkling, flavored water such as La Croix. If it catches on, it would help Coca-Cola squeeze money out of an increasingly popular habit that could otherwise hurt its business.
Reusable water bottles and fountains designed to refill them have surged in popularity as people grow more concerned about plastic pollution. Sink and faucet maker Elkay makes popular varieties of the refill fountains, but is not involved in Coke's machine.
Arti Lyde, director of global drinking water at Elkay, said the refill fountains became popular first on college campuses, and have spread to office buildings, airports and gyms.
Coca-Cola began testing the Dasani Purefill machine about a year ago. A Georgia Tech representative says the school isn't receiving any proceeds from the machine since it is a test.
According to Coca-Cola, people opt to pay for bubbles and flavor about 10 to 20 percent of the time. The company wouldn't give revenue figures or other financial details about the machine.
It says the expanded test this fall will look at how much and how often people are willing to pay for bubbles and flavor. An app will also let people submit payments and track how much water they're drinking. Kim Drucker, director of innovation at Coca-Cola North America, noted that the test consists of just one machine, but says the company sees much broader potential.
“We were excited to see how much engagement there was,” Drucker said.
