Govt suspends bottled water contract amid supplier compliance concerns

The Government Logistics Department (GLD) announced on Saturday that it has terminated its contract with bottled water supplier Xin Ding Xin Trade Company, citing a loss of confidence in the company’s ability to meet its obligations. 

Effective immediately, the suspension affects deliveries to government offices across Hong Kong Island and select outlying islands. 

Authorities have also referred the matter to the police for further investigation while evaluating whether to permanently terminate the agreement.

To maintain an uninterrupted water supply, the GLD has appointed AS Watson Group (Hong Kong) Ltd. as a temporary replacement, with its "COOL" brand bottled water expected to begin distribution next week.

Contract cut short after just two months

The GLD initially awarded three-year bottled water supply contracts in June to three vendors—AS Watson Group for Kowloon, supplying its COOL distilled water brand; Professional Trade International for the New Territories under the Happy Xishi label; and Xin Ding Xin Trade Co., Limited for Hong Kong Island and outlying islands, supplying the XinLe brand water. 

However, following a review of Xin Ding Xin’s operational records, the department determined that the supplier could not reliably fulfill its contractual commitments and invoked provisions to halt the partnership.

Stringent quality controls remain in place

The GLD emphasized its rigorous oversight of drinking water safety, requiring suppliers to submit independent laboratory test reports every two months to verify compliance with technical standards.

Additionally, the department conducts random sampling throughout the contract period to ensure quality. Recent tests confirmed that all supplied water, including Xin Ding Xin’s products, met safety requirements, though operational concerns prompted the suspension.