Summary:
- The company Boxed Water is Better, known for selling water in cartons, has agreed to modify certain environmental claims on its packaging following a decision by the independent nonprofit BBB National Programs’ National Advertising Division. The case was initiated by the International Bottled Water Association.
- NAD recommended that BWIB clarify or discontinue claims related to renewable materials and sustainable sourcing, while allowing claims about the recyclability and general sustainability of the cartons to remain.
- Boxed Water is Better CEO Daryn Kuipers expressed satisfaction with the NAD ruling, stating that most of the company’s claims are supported by science and substantiated reliably.
Insight:
Despite PET bottles dominating the non-carbonated water market, with over 80% revenue share last year, there is a growing trend towards metal- and fiber-based containers. In addition to Boxed Water is Better, other notable brands selling water in cartons include Just Water and Flow Beverage.
Established in 2009, Boxed Water is Better has focused its marketing on offering an eco-friendly alternative to single-use plastic water bottles. The company has backed up its environmental claims with a life cycle assessment, demonstrating the sustainability of its cartons compared to plastic bottles or aluminum cans.
NAD’s investigation into the company’s advertising practices found that the life cycle assessment supported certain environmental impact claims, such as “Boxed Water is better than aluminum.” However, NAD recommended clarifications to some statements to ensure accurate comparisons.
In a case initiated by the International Bottled Water Association, NAD reviewed over 50 claims made by BWIB. The association, which includes bottlers and packaging suppliers like Plastipak, welcomed the voluntary modifications made by BWIB but has requested an appeal for certain decisions.
NAD approved several claims made by BWIB, including the recyclability of cartons and the number of trees planted by the company. General environmental benefit and sustainability claims were also deemed acceptable, though NAD suggested better clarification for the “Sustainably sourced” statement.
However, NAD recommended changes to claims related to renewable materials and biodegradability of the cartons. BWIB’s messaging regarding the composition of cartons and their environmental impact needed modifications to avoid consumer confusion.
The International Bottled Water Association appreciated NAD’s determinations but appealed some decisions. The association requested further review by the National Advertising Review Board for certain challenges.
Legal experts from Kelley Drye analyzed the Boxed Water is Better case, particularly focusing on the use of mass balance accounting to support environmental claims. They highlighted the importance of substantiating comparative statements and the distinction between puffery and claims requiring substantiation.
As the industry awaits NARB’s decision on the appeal, companies are reminded to ensure their green claims are properly qualified and substantiated to avoid scrutiny and potential legal challenges.
In February, Boxed Water was acquired by Nyrad LLC, a group of private investors.