Recently, EU banned drink producers from claiming that water could prevent dehydration. It is now illegal for bottled water manufacturers to make such a claim; they face jail time if they are to defy the EU.
The oddity of this ruling aside, this could impact drink manufacturers greatly.
Without this simple, widely accepted point of parity to market, producers of bottled water must now find other ways to promote their product. They may have to rely on their established brand image, or other special points of differentiation. However, there is a fundamental problem with this: water is a commodity product that is, in all respect, more or less the same thing regardless of who produces it. Without being able to advertise it’s ability to prevent dehydration, the main reason for consumers to purchase water, they are left with very little to work with. If they cannot claim the most basic function of bottled water, what is there left to market?
Creativity is therefore crucial to overcoming this barrier. Existing companies may find it easier to build upon their existing brand image, but new entrants could find it difficult to establish themselves without this point of parity.