Icelandic Water Holdings Taps Additional Spring Site to Meet Growing Demand for Award Winning Icelandic Glacial

April 09, 2008

Icelandic Glacial, announces that it has successfully tapped the exceptionally pure and legendary Ölfus spring from a new site at the Hlíðarendi escarpment, located in southwest Iceland. The establishment of the Hlíðarendi capture structure, together with the opening of the new bottling facility this summer, ensures that Icelandic Water Holdings will be able to satisfy growing demand by delivering even more impeccably pure Icelandic water to consumers and retailers worldwide in an environmentally sustainable manner.

Demand for the first-ever bottled water with a CarbonNeutral® certification for both its product and operations has increased dramatically since Icelandic Water Holdings signed a master distribution agreement with beverage giant Anheuser-Busch in July of last year. With the new state of the art, naturally powered bottling facility set to be operational in September, the tapping of this additional spring site is positioned perfectly to meet the current and future demand for Icelandic Glacial without straining the unlimited resource of the exceptionally pure water flowing from the spring.

The capture structure taps natural outflows from a geological fault that has diverted some of the Ölfus spring flows to Hlíðarendi, where it is bottled using geothermal and hydroelectric energy. Accessing the Ölfus spring from the new site in Hlíðarendi will dramatically increase Icelandic Water Holdings’ output, capturing more water at a faster and more efficient rate, without negatively affecting the environment and the balance of the spring. Flows from the spring are naturally replenished by snow meltwater and rainfall on the mountain catchment areas, meeting Icelandic Water Holdings requirements for a sustainable source.

“As an Icelandic company, we pride ourselves on setting a high environmental example,” said Jon Olafsson, Icelandic Glacial chairman and co-founder. “By tapping the naturally replenished spring at Hlíðarendi we are able to source our water in close proximity to our new facility, increasing efficiency and production while staying true to our environmental commitment.”

The establishment of the capture structure has been even more successful than expected with measured flows in excess of 40 liters per second, which, if constant would equate to more than 1000 million liters a year, according to the water industry consultants from Zenith International who have been entrusted to oversee all elements of the project including managing the building, source and bottling line installation.

“We are in the process of confirming the exact water flow as some decline is to be expected during the drier summer months," commented Duncan Finlayson, operations consulting director of Zenith International. "From current indications, we feel confident that even on pessimistic assumptions the flow will allow around 450 million liters a year to be bottled, if not more. For the global bottled water market, this is a large spring. It will significantly enhance output for Icelandic Water Holdings and help satisfy demand from Icelandic Glacial customers worldwide.”

Iceland is a country known for its use of geothermal and hydroelectric power, making it a world leader in regard to ‘green’ living. This national commitment to the environment has played an integral part in Iceland being listed as “The Best Country to Live In” according to the Human Development Index (HDI), published annually by the United Nations. Icelandic Water Holdings reinforces Iceland’s leading position by powering its facility solely by these natural energy sources — producing Icelandic Glacial in an environmentally friendly manner unmatched by other bottled water brands.

The pioneering environmental efforts of Icelandic Water Holdings has spurred positive change within the industry as other brands move to incorporate their own ‘green’ initiatives in order to help the environment and make a difference.

“We are delighted that our environmental efforts have resonated with other industry members and that an environmental shift is taking place,” comments Olafsson. “The more companies that embrace environmental practices the better — we are proof that you can increase efficiency and production without sacrificing the environment.”