Can Red and Blue Make Green?
Sarah Theodore
Editor
Environmental sustainability is the hot topic of the day and beverage companies are leading the pack in announcing their green efforts. Last month, Beverage Industry Managing Editor Elizabeth Fuhrman reported on a speech made by American Beverage Association President Susan Neely, who said environmental concerns were set to become an issue that could be as large as the obesity crises for beverage companies. Neely pointed out that beverage brands are prominently displayed on every package that isn’t properly disposed of, putting those companies at the forefront of the issue. But the latest round of news shows the industry is taking steps much farther than simple litter reduction.
According to Peter Capozucca, author of a new study
conducted by Deloitte Consulting for the Grocery Manufacturers Association,
sustainability is “unlike any business issue consumer businesses have
encountered in the past. The industry’s large environmental footprint
and unique dependencies on agricultural inputs, water and packaging make
sustainability a critical strategic issue that consumer packaged goods
companies must address proactively.”
The survey found that 85 percent of U.S. consumer
businesses have sustainability initiatives, and despite the prevailing
wisdom, the efforts are self-inspired, rather than Wal-Mart-led. The retail
giant’s packaging-reduction initiatives and regulatory standards
score high on the reasons many companies are taking action, but 60 percent
say internal priorities are the key.
Coca-Cola and PepsiCo both recently announced major
environmental initiatives. Coca-Cola earlier this month pledged to reduce
water use, both in its own and franchise bottler plants; recycle water used
in the manufacturing process; and replenish water in communities. The
announcement was part of the company’s partnership with the World
Wildlife Fund, and includes $20 million to protect the world’s seven
most important freshwater river basins.
For its part, PepsiCo was named the 2007 Energy Star
Partner of the Year by the Environmental Protection Agency and the
Department of Energy, due to its energy management efforts and reduction in
greenhouse gas emissions. The company also joined the United States Climate
Action Partnership, which has called on the federal government to enact
legislation that will result in significant reductions in greenhouse gas
emissions.
The beverage industry truly seems to have learned its
lesson from the obesity experience. It has been accused of not
understanding the enormity of the obesity issue and how much blame it would
shoulder for the problem. This time, it is getting out ahead of the issue
and letting the public know just how much it is doing before it can become
an environmental scapegoat.
Sneak Peek
JULY
Cover Story — New Belgium Brewing
Special Report — State of the Industry
Beverage R&D — Certified products
Packaging — Inspection equipment
Bonus — Beverage Product Guide
AUGUST
Cover Story — Kraft Foods
Special Report — Ethnic marketing
Beverage R&D — Fortifications trends
Packaging — Labeling equipment
Logistics — Material handling forklifts