Tesco announced major news this morning by claiming they plan to sell bottled water for half the price of Irish tap water that is being offered by the shambolic Irish Water Company. The current price for tap water stands at €2.44 per 1,000 litres used. If Tesco go ahead with what they promise, they will be offering bottled water at €1.22 per 1,000 litres.
The news comes on the back of a dismal performance by Tesco in the market this year. The company has been haemorrhaging profits in 2014 and Ireland is the worst performing country in which they operate.
The company’s chairman, Sir Richard Broadbent, has officially signalled his plans to quit the firm, which said its before-tax profits were down nearly 92% in the six months to August. Tesco, once the unstoppable leader in the UK and Irish grocery market, made only £112 million (€142 million) for the period as its sales dropped 4.4% across the board.
This new initiative to undercut the controversial water charges in the Republic of Ireland is a bold but potentially profitable one. The taxation of tap water has been controversial since its implementation this month and Tesco are showing that they are willing to engage with the public’s needs.
Among the plans to sell the water at low prices, they will also sell items to make bottle water more usable for everyday use. One of the items at the forefront of the campaign will be a shower nozzle that will connect to the top of a 5 litre bottle of Tesco Value Water. The company says that this will make their water more ‘convenient’ than the current tap system.
The new water range is expected to hit the Tesco shelves next month.