fiji water final
TRANSCRIPT
The Wonder Product of the Fiji Islands:
FIJI WaterReport by David Myers
April 30th, 2006
HIST 416“Pacific Dreams, Pacific Empires”
Professor Del Testa
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Bucknell UniversityIn today’s age of nutrition obsession health fanatics are driving down the demand
for sugar-loaded drinks and bottled water is quickly taking its place as a popular
commodity and beverage. According to the International Bottled Water Association
(IBWA), in 2005 the total bottled water volume reached an all time high of over 7.5
billion gallons, which is a 10.7 percent increase over 2004.1 Investors are flocking to this
market, but to distinguish oneself as a prominent company specializing in bottled water,
carving out a niche in the industry is critical. That is why FIJI Water, when entering the
game in 1995, realized that the answer would be found in an “Iconic Square Bottle,”
separating themselves from the rest of the pack.2 This distinctive square-shaped bottle
feels unordinary in the hand of the consumer, invigorating an instinctive imprint on the
consumer’s mind. FIJI Water’s success is largely derived from the impressionable shape
and label of the bottle, as well as its association with the island nation it borrows its name
from. With a unique back panel graphic of an energized waterfall and idyllic scenery set
behind a front panel graphic of tropical flowers, the product’s design is aimed to
transplant the consumer to the romantic, heavenly and tranquil Fiji Islands. The label
implies a sense of status and an association with what is natural, illustrated in the gold
borders and nature-inspired artwork, consequently appealing to a wide array of patrons
from the Hollywood elite to the granola-munching outdoorsmen.
FIJI Water is proudly imported from the Republic of the Fiji Islands, and the back
of the bottle is not shy in boasting this fact, as well as the fact that FIJI Water is
supposedly one of the most natural waters, as it is literally “untouched by man.” FIJI
1 PR Newswire US, “Bottled Water: More Than Just a Story About Sales Growth,” 13 April 2006. 2 Los Angeles Times, 5 October 2005.
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Water, a heavy weight contender in the bottled water industry, is classified as “artesian”
water. Artesian water, unlike spring or glacier water, is extracted from an artesian
aquifer, which is a chamber of water confined within impermeable rock walls of a
primordial volcanic crater; in this case it is nestled at the “edge of a primitive rainforest.”3
This water within the massive aquifer is said to be rich with mineral deposits of rainfall
from over 450 years ago, 200 years before the Industrial Revolution.4 As this water is
encapsulated within the rock, it does not have contact with the “outside world”; it is
brought directly from the source to the bottle having never touching the hands of man.
Much like the unspoiled environment of an isolated island, the water is free from
“environmental pollutants and other contamination” that plague alternative water
sources.5
In 1995, with an initial investment of $15 million, FIJI Water was established
under the name Natural Waters of Viti Limited and in the Republic of Fiji it still operates
under this name.6 The product concept is described as being the “brain-child” of
Canadian-born David Harrison Gilmour, who before bottling this artesian water earned a
fortune in gold mining, real estate and hospitality.7 It was his hotel investments that
brought him to the Fiji Islands when he founded the celebrated and picturesque Wakaya
Island Resort on Gilmour’s personal island. Gilmour established Natural Waters of Viti
3 FIJI Water, “What Is Artesian Water?” FIJI Water Online [home page on-line]; available from http://fijiwater.com/artesian_water.html; Internet; accessed 3 May 1999. 4 Matelita Ragogo, “Fiji Water Making Waves: Pristine Taste and Savvy Marketing Are Driving Fiji’s Biggest Export,” Pacific Magazine, July 2003. 5 FIJI Water, “What Is Artesian Water?”, http://fijiwater.com/artesian_water.html 6 Jim McMaster and Jan Nowak, “Natural Waters of Viti Limited—Pioneering a New Industry in the Fiji Islands,” Journal of the Australian and New Zealand Academy of Management 9, no. 2 (2003): 37.7 Besty McKay and Cynthia Cho, “Water Works: How Fiji Brand Got Hip to Sip,” Wall Street Journal, 16 August 2004, B1.
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Limited with the concept to bottle natural artesian water in Fiji and market it globally as a
“unique and exotic product”.8 The high-quality water that Gilmour sought was located
with the help of geologists from another one of Gilmour’s ventures, Barrick Gold
Company, as well as geologists provided by the Fijian Government,.
Having had prior investments in the islands, Gilmour certainly was attracted to
Fiji for the many advantageous reasons for investing within the country. The Fiji labor
force, described as “adaptable, productive, industrially disciplined and English
speaking…with competitive wage rates,” is incredibly favorable to foreign investment.9
Due to the strong educational system within Fiji, 80% of the workforce has had at least a
secondary school education.10 The U.S. Department of State recognizes the efforts taken
by the Fijian Government to attract foreign investment and attributes much of this to the
need for new industries within Fiji due to the current decline in reliance of the previously
celebrated staple products: sugar and textiles.11 The Government of Fiji has established
several incentives encouraging economic development within Fiji, which Viti Limited
has profited from. The Reserve Bank of Fiji offers incentives to those investing in Fiji as
well as exporting products from Fiji. For instance pre-shipment or post-shipment
financing are offered to approved and eligible borrowers. Exporters who are ineligible
8 McMaster and Nowak, 37. 9 Fiji Islands Trade & Investment Bureau, “Good Reasons to Invest,” Fiji Islands Trade & Investment Bureau Online [home page on-line]; available from http://www.ftib.org.fj/invest-fiji-reasons.cfm; Internet; accessed 27 April 2006.10 U.S. Department of State, “Fiji 2006 Investment Climate,” U.S. Department of State Online [home page on-line]; available from http://www.state.gov/e/eb/ifd/2006/63533.htm; Internet; accessed 27 April 2006.11 Ibid.
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are those producing traditional exports, which comprise of “sugar, molasses, gold,
coconut oil, timber, garments, textiles, processed fish and tuna fish.”12
The staple of this product would certainly be its home in the Pacific Island nation
of Fiji. But the heart of the product, the water, would be far from the sandy beach resort
setting of the founders other investment in Fiji. The source of the water is high up in the
mountains on the northeast part of the largest island, Viti Levu, in the Fijian archipelago
that makes up 322 islands. The Yaqara Range of the Nakauvadra Mountains, which is
separated from the ocean by 1,500 km, hosts the “virgin ecosystem” that lends to the
pristine taste of the water.13 The first bottling plant was built here in 1996 at the location
of the artesian water source. Land in Fiji is split up amongst three categories: Native
Land, Crown Land, and Freehold Land. The Native Land consists of 83% of the land in
Fiji and the indigenous Fijians reserve the right to this land, which may not be sold;
Crown Lands are the 10% owned by the government and the remaining land, Freehold
Land, is open to private purchase.14 The land, which is Crown Land, is subleased from
the Yaqara Pastoral Company, a government-owned cattle ranch, but the traditional
landowners are split up amongst five Fijian villages within the Yaqara basin.15 At the
outset of acquiring the land Viti Limited paid $14,800 to Fiji’s Director of Lands, and
pays an annual rate of $6,000.16 The long-term lease of the 20-acres of Native Land that
12 Fiji Islands Trade & Investment Bureau, “Export Incentives,” Fiji Islands Trade & Investment Bureau Online [home page on-line]; available from http://www.ftib.org.fj/fiji-export-incentives.cfm; Internet; accessed 27 April 2006.13 Ibid.14 U.S. Department of State, “Fiji 2006 Investment Climate.” 15 Fiji Government Online. Press Releases. Government Ministers and French Ambassador Visit Yaqara. (Janurary 25, 2005) http://www.fiji.gov.fj/cgi-bin/cms/exec/view.cgi/48/4074. 16 Parliament of Fiji Islands, 9th Parliament, Meeting of the Senate. Daily Hansard, 9th March, 2005:Questions and Replies. (Suva, Fiji, 2005). http://www.parliament.gov.fj/hansard/viewhansard.aspx?hansardID=333&viewtype=full
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the plant sits on was highly endorsed by the Government of Fiji, which actively supports
international investment within Fiji.17 After the 99-year lease was signed, Gilmour
invested $48 million more of his own money “to get every detail right.”18 Natural Waters
of Viti Ltd. has 93 employees of which 84 come from the five villages and the plant only
employs one expatriate.19 The sole expatriate at Natural Waters of Viti Limited is
bottling plant general manager Ian Lincolne.
The name FIJI Water, which appears on the front of the bottles, is a sister
company of Natural Waters of Viti Limited and was established for marketing purposes
within the US market. FIJI Water is based in Denver, Colorado. FIJI Water employs 35
staff that manages the business aspect of the product—marketing and logistics.20 The
CEO of FIJI Water is Doug Carlson who has brought FIJI Water to the forefront of the
US bottled water market through “unique product positioning, innovative packaging,
premium product pricing, effective distribution, and image-creating publicity.”21 There
are no FIJI Water television commercials or other explicit advertising campaigns in major
cities, however FIJI Water has marketed its product in a less conventional, implied
fashion. As if the product were an actor, FIJI Water’s own agent works hard to find
placement for the identifiable bottle, landing it key rolls in movies and television shows,
costarring alongside some of the finest actors in Hollywood.22 FIJI Water has also
marketed its product while simultaneously humanizing its image through sponsoring
17 Ragogo, 2003. 18 McKay and Cho, 2. 19 McMaster and Nowak, 45. 20 Ibid, 42. 21 Ibid, 45. 22 CNN “Market Call” Transcript “David Haffenreffer Interviews Doug Carlson, CEO, FIJI Water, LLC,” 19 August 2004.
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charity events, living up to its reputation as a company concerned with larger social
issues instead of just financial interests.23
FIJI Water can attribute much of its success to the country that hosts its water
source. By linking itself to the Pacific, Viti Limited was able to effectively make the
‘Pacific Leap’, and the achievements made by the U.S. FIJI Water LLC have allowed for
this leap to be sustained, creating a gratifying, practical bridge that simultaneously
benefits the two countries. Mr. Gilmour has described the product as Fiji’s “little square
ambassadors”.24 By giving the consumer the realization of the beauty of artesian water,
FIJI Water appeals to those concerned with organic, health-oriented, environmentally
sound products. In the fall of 2005 FIJI Water showcased a new design for its water
bottles. A Los Angeles Times article unveiling the “new look for iconic square bottle,”
claimed that “the enhancements to the bottle will emphasize FIJI Water’s unique artesian
source”.25 In fact, the choice to remove the trademark waterfall imagery from the inside
back panel was because the company did not wish to mislead the consumers by implying
that the water had come from an above-ground source that would take away from the
purity associated with the artesian source.26 The new imagery, which contains ground-
plants, is meant to convey the untapped, below-surface feature of this artesian water.
There are four versions of the outside back panel, all of which attempt to inform the
consumer of the distinct qualities of the artesian water FIJI Water prides itself in bottling
23 McKay and Cho, 224 U.S. Department of State, “2004 Ace Award Presentation to Fiji Water,” U.S. Department of State Online [home page on-line]; available from http://www.state.gov/secretary/former/powell/37731.htm; Internet; accessed 19 April 2006.25 “FIJI Water Unveils New Look for Iconic Square Bottle; Innovative Use of Back Panel and New Graphics Showcase Water’s Purity and Fijian Origin,” Los Angeles Times, 5 October, 2005, B1.26 Ibid.
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as well as the exclusivity of its origin. These labels are titled: “What ecosystem is your
water from?”; “Untouched by man. Until you drink it”; “What is artesian water?” and
“Bottled in Fiji. Shipped to you”.27 The novel label has won several awards and is highly
praised within the international label industry.28
FIJI Water has not only been blessed with the product’s gift of being able to sell
itself, allowing the title and design to be at the core of the advertising campaign. The
company is also fortunate in that bottling water is a fairly simple process involving
limited machinery. The procedure of bottling this water is fairly straightforward; the
water is extracted from the ‘bore-hole’ and brought through a pipe to the factory. Once
the water is brought into the factory through pipes the three different sizes of bottles—
0.5, 1.0 and 1.5 liters—are filled directly from the pipes with the water. The water is
easy to extract, the layer of rock around the water pressurizes the water so that
mechanical pumps are not necessary.29 Unlike many other bottled water manufacturers
there is no filtration process involved at the production plant of Natural Waters of Viti
Limited in Yaqara as the artesian source allows “Mother Nature” to takeover this
process.30 It is said that engineers designing water treatment plants for municipal water
systems have begun to attempt to imitate the natural filtration process of FIJI Water’s
artesian aquifer, with the water filtering through layers of basalt, sandstone and silica.31
27 Ibid. 28 The Jenkins Group, “Our Company Awards,” The Jenkins Group Online [home page on-line]; available from http://www.jenkinsgroup.co.nz/our_company_awards.html; Internet; accessed 30 April 2006. 29 Fine Waters, “Water Labeling Classifications: Artesian Water,” Fine Waters Online [home page on-line]; available from http://www.finewaters.com/FAQ/Water_Labeling_Classifications.asp#answer1; Internet; accessed 30 April 2006. 30 McMaster & Nowak, 3731 Fine Waters, “FIJI Water,” Fine Waters Online [home page on-line]; available from http://www.finewaters.com/Bottled_Water/Fiji/Index.asp; Internet; accessed 30 April
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While the bottles are produced in-house, the caps, PET resin, and labels all are imported.
The PET resin as well as the bottle caps are imported from Australia, while the labels are
supplied by a New Zealand company: Jenkins Labels.32 PET is a type of plastic,
commonly preferred over PVC when molding bottles in the bottled water industry; this is
due to its lightweight, transparency and malleable properties; it is environmentally a
better choice as it can easily be recycled.33 The bottles are ready for transportation after
they have been packed in cartons that are also produced in Fiji by Golden
Manufacturers.34 The only available information found on Golden Manufacturers is in an
article from Fiji Times that states the Centre for Development of Enterprise (CDE), which
has been very influential to Fiji’s private sector, has provided this company with
substantial aid.35
Instrumental to the production and manufacturing success of Viti Limited is a
Canadian company, Husky Injection Molding Systems Ltd, with manufacturing sites in
the United States, Canada, Luxembourg and China. Husky is “the world’s largest brand
name supplier of injection molding equipment and services to the plastics industry.”36
The help of a factory-planning group within Husky allowed Viti Limited was able to
2006.32 PETplanet Insider, “Bottled in Fiji Designed in Canada,” PETplanet Insider Online [home page on-line]; available from http://hbmedia.net/petplanet/petplanet/insider/2002/09/articles/bottlemaking1.shtml; Internet; accessed 29 April 2006.33 WWF, “Bottled Water: Understanding a Social Phenomenon,” WWF Online [home page on-line]; available from http://assets.panda.org/downloads/bottled_water.pdf; Internet; accessed 28 April 2006. 34 Jim McMaster and Jan Nowak, “Natural Waters of Viti Limited—Pioneering a New Industry in the Fiji Islands,” Journal of the Australian and New Zealand Academy of Management 9, no. 2 (2003): 38. 35 Fiji Times, “Private Sector Benefits from CDE,” 28 March 2006. 36 Husky Injection Molding Systems Ltd., “About Husky,” Husky Online [home page on-line]; available from http://www.husky.ca/abouthusky/index.html; Internet; accessed 29 April 2006.
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manufacture the plastic plant in Yaqare without harming the “virgin ecosystem”.
Because of the environment, and the need for continued purity, it was no easy task to
build such a plant: “The challenge was building a water-bottling plant with in-house
bottle production, in an environmentally sensitive area atop an aquifer.”37 The
remoteness of the location meant that a diesel power generator would need to be installed
since there was no power grid; Husky also did this. Gilmour, a proponent of
environmental protection within the corporate world, did everything from: “sound-
proofing to using renewable energy sources” in the construction of the plant.38
Another innovative feature of the factory, also designed by Husky, is the ability
for the factory to expand without limiting production. Ian Lincolne applauded Husky in
their design concept that has “allowed us [Fiji Water] to seamlessly integrate additional
production capabilities without disrupting current operations.”39 And Viti Limited
certainly took advantage of this capability. In 1999 the 17,000 sq. ft. facility expanded an
extra 90,000 sq. ft and this enormous endeavor required over 90% of the materials and
equipment necessary to be imported from four continents.40 This is evidence of FIJI
Water’s almost immediate power to penetrate the global bottled water industry and create
rapid demand.
On December 2nd, 2004 Roll International Corporation, a privately held company
based in Los Angeles, announced that it acquired FIJI Water. Within Roll, FIJI Water
37 Bill Bregar, “Husky Factory Planning Unit Seeks Customers Worldwide,” Bolton, Ontario, 17 November 2003, 13. 38 Heather Todd, “On An Island Paradise, Fiji Water Sets a Standard of Social Responsibility,” Beverage World, 15 January 2005, 10. 39 Husky Injection Molding Systems Ltd., “2002 Annual Report,” Husky Online [home page on-line]; available from http://cache.husky.ca/pdf/2002_annual_reportv2_en.pdf; Internet; accessed 29 April 2006.40 PETplanet Insider, “Bottled in Fiji Designed in Canada.”
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would continue its operation with its existing management team. Roll International is a
very prominent company, with some of its holdings being Paramount Farms, POM
Wonderful, Teleflora, Martha Stewart Living, Hallmark, AgraQuest, and 1-800-
FLOWERS.COM. The “centerpiece” of Roll International was once The Franklin Mint a
large collectibles firm, which was acquired by Roll’s current CEO Stewart Resnick and
his wife, Lynda, in 1985. At the time that Roll bought FIJI Water it was the second
largest selling imported water brand in the United States.41
While FIJI Water, Viti Limited’s sister company, has not heavily focused its
efforts on advertisement, distribution strategy has been key to the success of this
company. Distribution, not advertisement, is what has been paramount to FIJI Water’s
rapidly increasing revenues.42 One strategy FIJI Water has implemented, although not
terribly ingenious, is maximizing shelf-space. In regards to this, in a 2000 interview, Mr.
Carlson noted that, “when you have more space, you create perception in the minds of the
consumers that your brand of water is a solid brand”.43 When the cartons of water are
loaded onto boats in the outdated ports of Suva and Lautoka on Viti Levu, they are either
destined to one of three major U.S. distribution centers: Los Angeles, New Jersey and
Miami. Shipments to Canada arrive in Vancouver and are mainly distributed within that
region of Canada. For the water that is sold within Fiji, Viti Limited uses Coca-Cola
Amatil, located in Suva, to distribute cartons of FIJI Water.44 Coca-Cola Amatil “is the
principal Coca-Cola licensee in Australia,” producing and distributing carbonated and
41 Hoover’s, Inc. “Roll International Corporation,” Hoover’s Online Report Builder [home page on-line]; available from http://premium.hoovers.com/subscribe/co/factsheet.xhtml?ID=40398; Internet; accessed 3 March 2006. 42 Ibid, 43. 43 P. Yavala, “Fiji Water Travels,” Fiji Times Weekend, 18 November 2000, Business 5. 44 Ibid, 43.
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non-carbonated beverages in Australia as well as New Zealand, Papua New Guinea, Fiji,
South Korea and Indonesia.45
FIJI Water can be found in a number of retail, grocery, convenience, and specialty
stores as well as restaurants and other venues throughout the United States and in
particular international markets, including Australia, Canada, Mexico, the United
Kingdom and the Caribbean. The water is also available for home delivery within the
United States through its website at http://www.fijiwater.com/, with a popular “perks”
club for frequent customers.46
In July 2002, Fiji’s main exports earned F$1,007 milion, of which F$24.7 million
came from exporting Fijian mineral water.47 Since its first appearance on the US and
Canadian market, consumption of FIJI Water has skyrocketed, with the square bottles
popping up in stores and venues across the continental U.S. In October of 2004 Colin
Powell presented FIJI Water with the Secretary of State’s 2004 Award for Corporate
Excellence. The following month one of the largest freighters ever to land in Fiji arrived
with new equipment to meet the rapidly rising demand of FIJI Water. This new 88-ton
machine was expected to boost the production of FIJI Water by nearly 100 percent
allowing the factory to produce 12 bottles per second.48
45 Coca-Cola Amatil, “About CCA,” Coca-Cola Amatil Online [home page on-line]; available from http://www.ccamatil.com/about_cca.asp; Internet; accessed 28 April 2006. 46 FIJI Water, “Home Delivery” FIJI Water Online [home page on-line]; available from https://www.fijiwater.net/catalog/jsp/buyer_registration.jsp?supplier_id=247&destination_url=../products/index.jsp?_fnet_catalog_id=81%26_section_id=261 ; Internet; accessed 4 April 2006.47 Robert Keith-Reid, “Fiji Water Creating Waves in the United States,” Pacific Magazine, July 2002.48 “’Huge Demand’ Sees Fiji Water Bottler Boost Output,” Fiji Times, 25 November 2004.
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What is important is whether or not Viti Limited and FIJI Water are taking in the
concerns and wellbeing of those whose land they are leasing and whether or not native
tradition and custom is being respected. In a 2002 interview with Ratu Lalabalavu, the
Minister for Lands and Mineral Resources of the Republic of the Fiji Islands, claimed,
“Fijians do not see land as a commodity or something that can be traded. It is part of their
being, it is an important part of their life and is part of their heritage. It is a part of their
family.”49 Because of this FIJI Water and Viti Limited have given the locals the respect
they deserve and has offered financial and social incentives to the local villagers.
However, as Ratu Lalabalavu explained, the native Fijian’s deep seeded cultural
connection to the land has also proved troublesome for the company. In the wake of the
2000 coup, some local villagers, presumably those not employed by Viti Limited or
directly benefiting from the company, attempted to takeover the plant. This takeover was
not justified legally, but to an “innate relationship with the land that transcends any
alienation of the land consequent upon vesting it in the Native Land Trust Board.”50
British Colonial Officials asserting the native Fijians natural right to the land, and
subsequently denying foreigners, particularly the Indo-Fijians, of the entitlement to the
land, set up The Native Lands Commission and Native Lands Trust Board when Fiji was
first colonized. The fickle land issues have forced Viti Limited and other foreign
investors to be careful with how the approach issues regarding the land.
Viti Limited taken great strides to hire locally, provide environmental safety and
preservation, along with respect local custom through many meetings with local chiefs,
49 World Investment News, “Interview with Hon. Ratu Naiqama Tawake Lalabalavu” WINNE Online [home page on-line]; available from http://www.winne.com/topinterviews/naiqama.htm; Internet; accessed 2 April 2006. 50 Sally Engle Merry and Donald Brenneis, eds., Law and Empire in the Pacific Fiji and Hawaii (Santa Fe, NM: Oxford, 2003).
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but Viti Limited and FIJI Water have also poured money back into the community
through establishing schools and achieving other humanitarian goals. In 2005 Natural
Waters of Viti Limited donated “essential assistance” through its quadrilateral bottles to a
Fijian hospital facing water shortages.51 The respective companies, adhering to Fijian
custom, have respected the heritage and importance of family in Fijian culture.
Viti Limited has not only worked with the local villagers, but has also carefully
complied with the national government, has been a motivator in Fijian policy making,
and inspired a gold rush like atmosphere in the craze to strike it rich in the mineral water
industry, with other companies like Aqua Fiji investing in Fijian bottled water. In the
same 2002 interview, the Fijian Minister for Lands and Mineral Resources spoke of
economic goals: “There is a need for us to develop our economic base so there is a need
for us to explore other possible areas that have the potential to take off economically and
these are areas that we are looking at: underground water business and mining. We have
to shift away from the sugar.”52 The success of mineral water sales, particularly those of
Viti Limited, have allowed for the Republic of Fiji to gain revenue in markets previously
unknown to the small island nation. Breaking away from the stereotypical colonial
export products of sugar and coconuts, mineral water brings modernity and shows
development in Fiji’s export industry. FIJI Water has become a feisty and successful
company within the international bottled water industry. According to an October, 2005
press release, Fiji Water “is the fastest-growing super-premium bottled water” and has
received premier ratings amongst bottled water taste tests conducted by the likes of
Cook’s Illustrated Buying Magazine, Men’s Health Magazine, and Boca Raton
51 Fiji Times, “Hospital Thanks Water Supplier,” 9 April 2005. 52 Ibid
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Magazine.53 However, The Boston Globe did a taste test along with a lab analysis of
several bottled waters, and while FIJI Water was favorable in the taste test, receiving two
thumbs up, the lab results did not get the same praise. A test was conducted to check
whether conditions were present within the waters that would lead to bacteria growth.
The recommended maximum is 500 colony-forming units per milliliter; FIJI Water had
an estimated 1,800 colony-forming units.54 While these alarming levels do not
necessarily indicate a health risk, there is possibility that it denotes a sanitation problem
at the plant in Yaqara.55 It can be speculated that the Fijian Government, developing
better plant sanitation regulations and legislation relevant to the emerging bottled water
industry in Fiji, can lower these high amounts of colony-forming units through
inspections and guidelines. However this could also be the fault of third parties involved
in the process. In a 2005 brief in the Pacific Magazine, it was reported that container
loads of FIJI Water were declared unfit for consumption and take to a waste recycling
plant. Natural Waters of Viti Limited recognized this problem in a routine test, but was
unable to offer further information because the “matter is subject to potential litigation
involving one of its overseas suppliers.56 This illustrates the difficulty of production
when various aspects of the product are being pooled from a variety of countries.
53 “FIJI Water Unveils New Look for Iconic Square Bottle; Innovative Use of Back Panel and New Graphics Showcase Water’s Purity and Fijian Origin,” Los Angeles Times, 5 October, 2005, B1.54 Bruce Mohl, “Water Wars,” Knight Ridder Tribune Business News, 18 September 2005, 1. 55 Ibid56 Pacific Magazine, “Fiji Water Consignment Fails Quality Test,” Pacific Magazine Online [home page on-line]; available from http://www.pacificmagazine.net/pina/pinadefault2.php?urlpinaid=15361; Internet; accessed 17 April 2006.
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After the success of Natural Waters of Viti Limited everyone hopped on the
bottled-water-bandwagon in Fiji, it “was like a gold rush,” explained Fiji’s Minister for
Lands and Mineral Resources, Hon. Ratu Naiqama Tawake Lalabalvu.57 However, the
success of Viti Limited was not shared by most of its predecessors. As Hon. Ratu
Lalabalvu explained, “this is a fairly new development for us here in Fiji and we are still
drawing up legislation, and guidelines.” The feasibility of such a project was not
recognized by many trying to make it rich in bottled water and similar sectors.58 The
Minister also said that the concept of water quality and extraction of water is new to Fiji
and the government will have to develop this area in the future. However, in 2005, due to
the success of FIJI Water and an expected 10 million cases of water to be exported that
year, the Fijian Government helped to protect FIJI Water’s prime resource by creating an
80 km buffer zone around the artesian aquifer.59 The protection of this artesian aquifer
promises stability and protection against possible environmental encroachments.
The average wage per hour for the factory workers at Viti Limited is $3.35 (May
2002), which is quite good and considered “attractive” for Fiji’s workforce.60 According
to the US Department of State’s 2005 Country Reports on Human Rights Practices,
produced by the Bureau of Democracy Human Rights and Labor, there is no national
minimum wage in Fiji.61 The International Labor Organization said that the government,
57 World Investment News, “Interview with Hon. Ratu Naiqama Tawake Lalabalavu,” WINNE Online [home page on-line]; available from http://www.winne.com/topinterviews/naiqama.htm; Internet; accessed 17 April 2006. 58 Ibid. 59 Global News Wire, “Government Moves to Protect Multi-Million-Dollar Water Entity,” 10 February 2005. 60 McMaster & Nowak, 4561 U.S. Department of State, “Country Reports on Human Rights Practices 2005: Fiji,” U.S. Department of State Online [home page on-line]; available from http://www.state.gov/g/drl/rls/hrrpt/2005/61608.htm; Internet; accessed 17 April 2006.
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in accordance with the Wages Councils Act, has the ability to establish wages councils if
there is no collective bargaining mechanism within a particular sector or industry’s
workforce.62 These wages councils can suggest a fixed rage and propose this to the
Minister of Labor who may deem this proposal as an Order at which point it enters a 30-
day objection period, where all objections must be heard by the Minister. Currently there
is no wages council for the bottled water industry, or anything remotely similar, however
there is a wages council for the garment industry. The garment industry, on of Fiji’s
larger industries, as of 2002 had an average hourly wage of $1.26.63 The $3.35 is
especially attractive considering the fact that Yaqara is remote, in a rural location, thus
bringing wealth and aid to the economy in a location that would otherwise not see such
improvement in its typical subsistence economy.
Factories within Fiji are heavily regulated and the wellbeing of the factory
workers is pivotal to the success of Fiji’s praised labor force. In the Fiji Factories Act it
states that if the Minister of Labor is informed of poor conditions within factories that do
not meet the guidelines laid out in the Act then he will send inspectors to the given
factory. The powers of the inspectors are almost limitless and is allowed to “make such
examination and inquiry as may be necessary to ascertain whether the provisions of this
Act are complied with, so far as respects a factory and any persons employed in a
factory.”64 The Act, coupled with the Employment Ordinance, “an act to provide for the
62 International Labor Organization, “Minimum Wages: Fiji,” [home page on-line]; available from http://www.ilo.org/travaildatabase/servlet/minimumwages?pageClass=org.ilo.legislation.work.web.ReferencePage&LinkId=1529; Internet; accessed 19 April 2006. 63 McMaster & Nowak, 4664 International Labor Organization, “Fiji Factories Act, Act No. 56 of 1971,” ILO Online [home page on-line]; available from http://www.ilo.org/dyn/natlex/docs/WEBTEXT/16905/64820/E71FJI01.htm; Internet; accessed 19 April 2006.
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control of conditions of employment,” extensively protects the workers in Fijian factories
with globally accepted standards of labor.65 Natural Waters of Viti Limited’s plant is
surely under these same jurisdictions and given these governmental protections, as well
as the high hourly wage, it is presumed that the plant is a very alluring for employees.
One of the major problems for Natural Waters of Viti Limited is poor government
transportation routes and other rocky infrastructures within Fiji, much of this due to
Yaqara being distanced from major towns. The government-run public access road,
Kings Highway, leading to the plant is virtually untraceable in Fiji’s season of torrential
rain.66 Viti Limited is also confronted by a faulty supply of electricity, an insufficient
port, and inadequate telecommunication services, typical in a developing nation.67 The
government is attempting to reach solutions to such problems, but these issues will not be
solved immediately and FIJI Water will inevitably be placed on “Fiji Time,” commonly
known as “Island Time,” awaiting improvements.
While there is little to be concerned about with FIJI Water and Natural Waters of
Viti Limited’s practices in the present, the future leads to trepidation. Since Fiji has just
begun to recognize environmental concerns stemming from development, its systems
have not yet worked out the kinks, leaving potential room for error when attempting to
solve environmental issues. Having not developed sufficient regulatory processes,
environmental and health issues could arise in the near future as research and control
progress. However, the future could also prove beneficial to FIJI Water. According to a
65 United Nations Economic and Social Commission for Asia and the Pacific, “Fiji Employment Ordinance,” UNESCAP Online [home page on-line]; available from http://www.unescap.org/esid/psis/population/database/poplaws/law_fiji/fiji_006_1.htm; Internet; accessed 19 April 2006. 66 Ibid, 38. 67 Ibid, 38.
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2003 report on drinkable water supplies conducted by the World Wide Fund for Nature
(WWF), “the average supply of water worldwide per person is expected
to drop by a third” as the demand significantly grows.68 Much of this is
“due to higher pollution levels and habitat degradation,” but fortunately
for FIJI Water, the source of extraction is concealed and thus impermeable to pollution
and wastewater. This could put FIJI Water in a position of heightened dominancy within
the worldwide bottled water industry, as several popular bottled water companies, such as
Alhambra, acquire their water from springs and other unprotected sources.69
While a company similar to Viti Limited would have many environmental concerns
in a developing country like Fiji, or alternatively could abuse the surrounding
environment, Viti Limited is fortunate in that the Republic of Fiji is committed to
sustainable development and protection of the environment. In fact, Fiji leads the Pacific
Islands in concern for sustainable human development. In May of 1994 fourteen other
Pacifc Island Governments signed the Suva Declaration on Sustainable Human
Development for the Pacific, which was drafted by Fijian Government Officials. This
declaration provides “essential requirements for achieving sustainable human
development,” while committing such development to concern for the environment.70
While it calls for improvement of access to lands and provide opportunities to rural and
subsistence sectors, it pleads for this to be done in an environmentally conscious manner.
68 WWF, “Water Facts and Figures,” WWF Online [home page on-line]; available from http://assets.panda.org/downloads/worldwaterforumwaterfacts.pdf; Internet; accessed 28 April 2006.69 Bottled Water Web, “Bottlers Profile: Alhambra,” Bottled Water Web [home page on-line]; available from http://www.bottledwaterweb.com/bottlersdetail.do?k=2; Internet; accessed 27 April 2006. 70 Parliament of Fiji, Human Development Department. Sustainable Development Vol 3. No. 1 prepared by Malakai Tadulala (Suva, Fiji, 1998).
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Fiji has begun to take the necessary steps to ensure protection of the natural, attractive
environment of Fiji while simultaneously developing the country. Legislation in the
Sustainable Development Bill of 1998 improved the existing environmental and resource
management legislation by “consolidating, integrating and updating” the various pieces.71
Fiji is entrenched in a long history of racial tension between the native Fijians and
the Indo-Fijians, brought from India in the 19th Century as contract laborers during British
colonial rule. In 2005 native Fijians comprised 54% of the population of Fiji, while Indo-
Fijians made up 37% of the population.72 The native Fijians have held the majority of
power throughout Fiji’s history post-independence. Much of this power is derived from
their entitlement to the Native Lands and other customary laws present in the nation’s
politics developing from the era of Indirect Rule. The U.S. Department of State declare,
“ethnic Fijians' traditional beliefs, cultural values, and self-identity are
intimately linked to the land,” illustrating the perplexing land dilemma
within Fiji.73 While it is unclear whether or not Indo-Fijians live within
the Yaqara region, there can be speculation that only native Fijians
receive jobs at the Viti Limited plants since they are essentially entitled
to the land and thus somehow bargained to limit Indo-Fijians from
working in the factory; this could lead to concern within Viti Limited’s
labor practices. If Viti Limited wants to support Fiji in achieving
economic modernity then it will have to speak out against racial
discrimination within Fiji.
71 Ibid. 72 Fiji Islands Bureau of Statistics, “Population and Demography,” Fiji Islands Bureau of Statistics [home page on-line]; available from http://www.statsfiji.gov.fj/Social/popn_summary.htm; Internet; accessed 27 April 2006.73 U.S. Department of State, “Country Reports on Human Rights Practices 2005: Fiji”
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Fiji’s two largest exports are sugar and garments, both sharing an unpredictable,
perhaps unfavorable, future.74 The impending fold of the sugar industry would be the
result of the European Union phasing out “preferential price agreement,” along with poor
administration acting as somewhat of a lesson for future exports, particularly bottled
water that desperately needs to form better regulations in the developing industry.75 The
cheap labor, abundance of laborers, and sufficient infrastructure has taken many of the
jobs in the garment industry out of smaller countries like Fiji and into China. Because of
a potential loss of reliance on these two exports, Fiji will need to quickly increase
contemporary, faithful exports stemming from supportive, reliable industries with
companies resembling those of Viti Limited.
Natural Waters of Viti Limited has been exemplary in establishing new industry
and growth within the Republic of the Fiji Islands. In 2004 FIJI Water won the Secretary
of State’s Award for Corporate Excellence, which is given to American companies to
prove that they “can do best while doing good in the global marketplace.”76 The award
recognized the company’s ability to create a “sustainable, new industry” within Fiji, one
that dealt with a very precious commodity.77 In his acceptance speech, chairman and
founder of FIJI Water, David Gilmour, exclaimed, “it is in the heart and soul of Fijian
people that has led to FIJI Water’s success.” Not only does he reaffirm the linkage of this
product to Fiji, and the utmost importance of the water hailing from Fiji, but he also takes
74 U.S. Department of State, “Bureau of East Asian and Pacific Affairs: Fiji,” U.S. Department of State Online [home page on-line]; available from http://www.state.gov/r/pa/ei/bgn/1834.htm; Internet; accessed 27 April 2006.75 Ibid. 76 U.S. Department of State, “2004 Ace Award Presentation to Fiji Water,” U.S. Department of State Online [home page on-line]; available from http://www.state.gov/secretary/former/powell/37731.htm; Internet; accessed 19 April 2006.77 Ibid.
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pride in the fact that his products’ success is acclaimed by the native Fijians who work
for the company. In this case Natural Waters of Viti Limited has not only acted as a
model for future businesses throughout Fiji, but it was chosen for this award because it
can act as a model across the globe. As David Lyon, US Ambassador to Fiji said, “it is
our hope that companies in Fiji and around the world will take not of, and strive to
emulate, Natural Waters’ ability to make money while also contributing in so many ways
to the people of the Yaqara region and to Fiji as a whole.”78
It is incredibly difficult for island nations to enter the global economy and reap the
same benefits as a larger country with a greater diversity of resources, yet Fiji has learned
from witnessing FIJI Water’s success how developing natural resources and marketing
them globally can bring change. It has lead others within the business sector of Pacific
Islands Nations to realize that products that are marketed as a “quality” good will sell
better. In a Pacific Magazine interview with Misa Telefoni Retzlaff, Samoan Minister of
Finance, Retzlaff said “for our products in the Australian/New Zealand market, we’ve
had a hard time competing with countries like Phillippines and Thailand on price. So
we’ve decided we’ll just compete on quality…I mean it’s a bit like FIJI Water. If there’s
ever been an example of successful marketing, it’s that. You can buy it on Rodeo Drive
in Los Angeles because it’s perceived now as the water of all waters.”79 FIJI Water and
Viti Limited LLC have brought their South Pacific wonder product literally out of a hole
in the ground to mainstream American consumer culture, and the Republic of The Fiji
Islands has attempted to emerge onto the world-stage as well, hopefully reaping the same
78 Ibid. 79 Samisoni Pareti, “Misa Telefoni Big on Bridging Wealth Gap: He’s a Big Supporter of the Disadvantaged,” Pacific Magazine, July 2003.
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success as the water bottled in Yaqara. FIJI Water has certainly aided the country of Fiji
in this process not only financially, but they have also acted as an important model for
future businesses in Fiji. FIJI Water/Viti Limited not only serve as an inspiring
representation of foreign investors working to improve developed nations, but also as a
model company within our own country.
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