Aquafina labels to spell out source - tap water

By Martinne Geller

NEW YORK (Reuters) - PepsiCo Inc. will spell out that its Aquafina bottled water is made with tap water, a concession to the growing environmental and political opposition to the bottled water industry.

According to Corporate Accountability International, a U.S. watchdog group, the world's No. 2 beverage company will include the words "Public Water Source" on Aquafina labels.

"If this helps clarify the fact that the water originates from public sources, then it's a reasonable thing to do," said Michelle Naughton, a Pepsi-Cola North America spokeswoman.

Pepsi Chief Executive Indra Nooyi told Reuters earlier this week the company was considering such a move.

Pepsi's Aquafina and Coca-Cola Co's Dasani are both made from purified water sourced from public reservoirs, as opposed to Danone's Evian or Nestle's Poland Spring, so-called "spring waters," shipped from specific locations the companies say have notably clean water.

Coca-Cola Co. told Reuters it will start posting online information about the quality control testing it performs on Dasani by the end of summer or early fall.

"Concerns about the bottled-water industry, and increasing corporate control of water, are growing across the country," said Gigi Kellett, director of the "Think Outside the Bottle" campaign, which aims to encourage people to drink tap water.

San Francisco's mayor banned city employees from using city funds to buy bottled water when tap water is available. Ann Arbor, Michigan passed a resolution banning commercially bottled water at city events and Salt Lake City, Utah asked department heads to eliminate bottled water.