water sustainability in india, cola cola
TRANSCRIPT
WATER SUSTAINABILITY IN INDIA
COMPANY PROFILE:COCA COLA● Largest beverage company in the world.
● Operates 57 Bottling Plants in India
● Coca-Cola India (CCI) is a wholly owned subsidiary of the Coca-Cola Company (TCCC).
● Brands include Diet Coke, Fanta, Sprite, Coca-Cola Zero, Vitaminwater, Powerade, Minute Maid, etc.
PROBLEM● Coca-Cola has been accused of depleting fragile water supplies and
polluting local water sources in Kerala, India. ● Water levels have been critical for more than a decade because of the
firm (the company uses 3 liters of water to make 1 liter of coke).
● Such excessive water extraction directly threatens farmers (70% of India’s population) that rely on water for their agricultural livelihoods.
● Coca-Cola India was held liable for US$ 48 million for the damage it did in Kerala.
PROBLEM DEFINITION CONT’D● The plant in Kerala was ordered to close
● Second time a Coca Cola plant was shut down in the region in 10 years
● Despite the company claiming that it has a “special interest” in water conservation and advertising that it has sustainable water practices - Coca Cola has (and continues to) fall short
STAKEHOLDER CONCERNS
❖ Consumers-Worries about product contamination.
❖ Local Farmers-Groundwater contaminated, drained dry
❖ General public-Suffers without available, clean water to drink
❖ NGOs: Removal of TCCC from India➢ Indiaresource.org
❖ News media-Watchdogs for corruption and pollution (ie:”fertilizer scandal”)
❖ Politicians- Government Initiatives for Public Safety
❖ The Coca-Cola Company (TCCC)-Profit, Brand Image
● Coca-Cola appears to be taking the responsibility substantially.
● Company has already opened 209 community projects in 61 countries.
● Company has partnered with organization.
STRATEGY
STRATEGYCoca-Cola doing well:
● Improving Water Efficiency
○ Water Stewardship
● Mitigating Water Risk○ Bottling Plants
● Replenishing Water○ Water Balance
STRATEGYWhat Coca Cola could do better:
● Improve stakeholder engagement in Kerala.
● Coca Cola should avoid operating in water stressed areas.
● Coca Cola replenishes aquifers hundreds of miles away from the original source.
● Coca Cola should take agriculture into account when calculating water footprint.
● Remember that India is a growing customer base!
Even though with these strategies there are various shortcomings.
Coca Cola’s needs to reconsider its strategy by having a more accurate measure of its water footprint:
• When measuring its water footprint, Coca Cola does not take into account the amount of water used to grow the cane sugar for its products.
• In addition, there are a variety of ingredients in the newer product line.(http://indiaresource.org/news/2015/1025.html)
• Most of the Projects undertaken by coke, are far away from the center of operations.
The problem with our strategy.
Local replenishment is not always possible. A place with water scarcity, might not have provisions for different projects, especially when it is in India, where land is scarce and density of population is quite high.
UNRESOLVED ISSUES