Coca-Cola's Water Sustainability Initiatives

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Case Details:

Case Code : BECG090
Case Length : 23 Pages
Period : 2004-2008
Pub Date : 2009
Teaching Note :Not Available
Organization : The Coca-Cola Company
Industry : FMCG
Countries : Global

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Introduction Contd...

Around 40 percent of the water was consumed in making beverages and the remaining 60 percent was used in the supply chain and in the production of ingredients like sugar and corn.⁵

In 2005, Coca-Cola entered into an alliance with USAID to address global water management problems.

These initiatives were funded by Coca-Cola and the Water and Development Alliance⁶ (WADA).

Coca-Cola in association with USAID and WADA addressed critical water issues across the world.

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However, the beverage company was criticized for depleting groundwater that was an important resource to the local communities in developing countries.

Coca-Cola was also criticized for distributing what was alleged to be improperly treated sludge containing toxic carcinogens and heavy metals like cadmium and lead, as fertilizer to farmers in India.

On June 5, 2007, Coca-Cola and the World Wildlife Fund⁷ (WWF) launched a global project that focused on water conservation.

Coca-Cola aimed to return to the environment all the water that it consumed in beverage production and become water neutral by 2010.

This it proposed to do by focusing on three core areas - reduction, recycling, and replenishment...

Excerpts >>

5] Ling Woo Liu/Shanghai, "Is Coca-Cola Serious about Conserving Water?"www.indiaresource.org, June 12, 2008.
6] In November 2005, the WADA was founded by Coca-Cola and USAID in conjunction with the Global Environment and Technology Foundation. WADA supports initiatives like protection of watersheds, improved sanitation and water supply, and encourages local communities to use water productively.
7] On September 11, 1961, the World Wildlife Fund was established for the protection of nature. The WWF is also responsible for sustaining natural resources, promoting efficient utilization of resources, and provides approaches to curb the level of pollution (Source: www.worldwildlife.org).

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