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Reuters reports that a price war is brewing in the $9 billion US bottled water business, which could turn a profitable niche market into a commodity. Experts believe that price drops that have been taking place for several years are expected to increase this year, with major players such as PepsiCo (Aquafina), Coca-Cola (Dasani) and market leader Nestle (Perrier, Poland Spring and Deer Park) believing they can weather a price war.

Concerns about increased price competition have been fueled by speculation that Nestle may cut prices of its U.S. bottled waters by as much as eight percent.
KC's View:
This is interesting because it reflects the US food business's obsession with price, which seems to reduce everything to a commodity. It's a shame…because differential advantages seem to fall by the wayside.