Food and Drink International - Winter 2016 Volume 2 - 129

Primo Water
or dispensers. But because Primo Water is involved in each
segment, the company can afford to take lower margins.
The goal of the dispenser business, Sheehan says, is not
so much to generate profit but to encourage adoption and
get Primo water into more homes. The company's pricing reflects that goal. A basic manual water pump costs as little as
$9.99 while countertop dispensers are under $40. Even the
most feature-rich full-sized dispensers with built-in drip coffee makers sell for less than $300. "We want to make it easy
for consumers to commit to water by offering dispensers that
fit every budget and d├ęcor," Sheehan says.
Having a wide range of price points allows for a low barrier of entry into the world of bottled water, but then allows
consumers to upgrade incrementally over time. A person who
starts with a hand pump might eventually realize they want a
dispenser capable of heating and chilling water. "We allow
our customer to graduate over time with us," Sheehan says.
Design is equally important to price in penetrating the potential market. As more families try to add healthy elements
they want those devices to look good. Primo's water dispensers are made from high-quality materials like black and stainless steel look that would slide right into any modern kitchen.

Expanding Footprint
The company is in the process of closing on a deal to purchase Glacier Water Services, a competing provider of refill
water kiosks. Once the estimated $263 million acquisition
closes, likely later this year, Primo Water will nearly double its
number of retail locations to 46,000. Many of the new Glacier
self-service refill water machines will be located outside of retailers, allowing the company to reach even more customers.
Because the two companies share an industry and know
each other as competitors, Sheehan believes that Primo Water will be successful integrating Glacier's business. "We feel
confident we will integrate smoothly," he adds.
Only about 5 percent of American households have water
dispensers today, which leads to a big opportunity, but Sheehan believes that number will rise as more consumers turn
to bottled water. "It's really important for folks around the
country - not just in Flint - to have access to great water,"
he says. "We think even after this acquisition, there is a lot of
room to grow in retail."
Plasscon is a proud supplier of high quality plastic containers to Primo Water.
From order to delivery and beyond, we are in constant communication with
Primo Water in order to meet any level of expectations. Our capabilities,
experience, and relationship-building over the years have been key in
working with Primo Water. We will continue to be there for Primo Water,
providing them with real time information from order to shipment to delivery.
We stand behind our products and support our customers. Our warehouse
locations in California and Texas give Primo Water the assurance that we will
respond to any need in a timely manner.

food & drink international * winter 2016 volume 2 * www.fooddrink-magazine.com

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http://www.plassconusa.com http://www.fooddrink-magazine.com

Table of Contents for the Digital Edition of Food and Drink International - Winter 2016 Volume 2

Contents
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Food and Drink International - Winter 2016 Volume 2 - Cover3
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