Meet the water self-suppliers

Brewer and pub retailer Greene King was the first company to make the plunge into the world of self-supply. But it isn’t the only company to have taken this route. Utility Week rounds up some of the other companies benefiting from providing their own water retail services.

Self-supply is a term often misunderstood. It doesn’t mean companies have to provide their own water. Instead, it means they can cut out the middle-man of the retailer and interact directly with wholesalers.

Since the water retail market opened in April 2017, a select few larger business customers have chosen this route. All of these have entered into partnership agreements with consultancy Waterscan.

The advantages of self-supply are plentiful, although it must be noted that this option is not for everyone. Companies which opt for this path pay wholesale prices, and they don’t have to pay the retail margin added by suppliers in the open water market. They also become a market participant, which includes membership of the market operator MOSL with voting rights, and this gives them the ability to directly influence the market.

In its latest annual sustainability report, Greene King revealed it has reduced its water footprint by more than 140,000m3 since April 2017. Daily, the business has saved 384.32m3 – the equivalent of 676,313 pints.

Every month, more businesses apply to self-supply. Utility Week takes a look at who they are and why they’ve done it.

Greene King

Greene King is a beer manufacturer, and operates public houses and bars, alongside other commercial properties. It has 1,757 locations in England and, before receiving its licence, received most of its bills in paper format.

It was the first business to apply for a self-supply licence in January 2017, before the market even opened, and was granted this licence in March that year.

The company said the licence will enable it to “build on efficiency works already undertaken, whilst driving cost and consumption control in the next phase of its water management strategy”.

Whitbread

Whitbread is the UK’s largest hotel, restaurant and coffee shop operator – which owns chains such as Costa Coffee, Premier Inn and Beefeater. The group has 1,081 supply points in England, and was granted its licence in August 2017.

It said the licence would “enable it to build on efficiency works already undertaken, whilst driving cost and consumption control in the next phase of its water management strategy”. In addition, the company said it hopes that being an active participant in the market will “drive further innovation” and provide a direct customer voice in discussions with the market operator.

Marston’s

Brewery and pub retailer Marston’s, which operates more than 1,600 pubs, bars and lodges, received its licence in November 2017.

Marston’s head of group facilities Andy Kershaw said, at the time its licence was granted: “This is a great opportunity for Marston’s, enabling us to drive efficiency and cost whilst working towards reducing consumption through our managed sites and breweries. It also gives us the platform to trial innovation and become an active partner in the market.”

Coca Cola European Partners

Coca Cola European Partners is a manufacturer of soft drinks and producer of mineral waters and other bottled waters. Among the products made by the firm in Great Britain are Coca Cola, Fanta, Sprite, Schweppes and Capri Sun.

The company received its licence in March 2018 and, in its application, the company said having a self-supply licence will give it a chance to “take more control” over its own water use, as well as allowing it to deal directly with the suppliers, and “build on the success” of its water programme.

Blackpool Council

Blackpool Council was granted its licence in June 2018. The licence will allow it to manage its own retail services for more than 120 sites across the borough.

The move is estimated to achieve cost savings of up to £194,000 over three years.  In the first year, anticipated savings are expected to be in the region of £50,000, with the potential for further savings through additional cost and consumption efficiency projects.

Stonegate

Stonegate operates more than 690 pubs and bars across the UK, within a wide variety of formats, from community and high-street pubs, through branded bars, to country inns and late-night venues.

The company applied to self-supply in June 2018. At the time this article was published, it had not yet received its licence.

Heineken

Beer and cider company Heineken – the name behind brands such as Strongbow, Bulmers, Foster’s and Kronenbourg 1664 – has breweries, cider plants and offices in Edinburgh, Tadcaster, Manchester, London, Hereford and Ledbury.

The company says water is integral to its business, in both growing hops, barley and apples and the production of its beer. It has a strong focus on sourcing sustainability through its strategy, “Brewing a Better World”, using sustainable farming, protecting water resources and reducing CO2 emissions.

Heineken applied for its licence in July 2018, and is waiting for this to be granted.

Berendsen

Laundry firm Berendsen is the most recent company to have applied for its licence, in July 2018, for all 32 of its sites. The licence has not yet been granted.

The company said, in its application, that it believes having a self-supply licence will enable it to take more control over its own water use, deal directly with the suppliers and build on the success of its water programme.