Like it or not, you can’t ignore the power of the green marketplace these days.

Water bottle manufacturer SIGG Switzerland just found out the hard way that use of a toxic ingredient in its production process will hurt sales as the greenies promptly turned against the company and its products.

The problem centers on bisphenol A (BPA), a chemical used to harden plastics. The chemical’s been linked to developmental problems in fetuses and young children.

And, as it turns out, before August 2008, BPA was an ingredient in SIGG’s very popular aluminum water bottles. SIGG admitted the presence of trace amounts last month. This revelation by SIGG came well after it had assured its business partner and global outdoor apparel retailer, Patagonia, that SIGG bottles don’t contain BPA.

Bottom line: Patagonia promptly severed its marketing and retail partnership with SIGG. Patagonia’s announcement canceling its relationship with SIGG is here.

The SIGG admission that BPA is in its bottle’s liner  is here.

One of those hurt in this debacle is The Jane Goodall Institute. SIGG had promised to donate $5 to the Institute for every SIGG water bottle purchased.

The ire of the environmental and outdoors community is growing on the blogosphere. Postings on Salon.com and the Huffington Post site are typical of the comments from customers who feel betrayed by SIGG.

Meanwhile, the plastics industry has launched a PR blitz to defend use of BPA in consumer products.

As reported in the Milwaukee Journal Sentinel, the plastics industry is mounting a campaign to defend use of the chemical to hopefully avoid serious regulatory action by the Food and Drug Administration. For the Sentinel story, click here.

Tags: bottled water, BPA, Patagonia, SIGG