Coca Cola

“Today’s food system is unfair, ineffective and operates beyond ecological limits,” Mark Lee says, via email.

“Unfair in that some 925 million are malnourished…

“Ineffective in that there are enough calories out there to feed everyone, but we fail to do so (and if we fail to do so for 7 billion, how will we cope with 9-10 by mid-century?)…

“Beyond ecological limits in too many ways too count – freshwater use, soil degradation, climate impacts, you name it.”

Mark is not an environmental activist. He’s the executive director of SustainAbility, a think tank and strategy consultancy that has worked with such food industry clients as Chiquita, Coca-Cola Kellogg’s, Mars and McDonald’s, Nestle, Starbucks and Unilever. He approached me because Sustainability recently released a report called Appetite for Change, about the food industry and how to fix it.

I’ve been writing a lot about food lately because it interests me, because food and agriculture matter a great deal if you care about climate or global poverty or health, and because there’s so much debate about what the path forward should be. Organics? Farmers markets? Genetically engineered crops? Vegetarianism? Local? [click to continue…]

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Little things matter.

Like squeeze packs.

I’ve surely tossed away hundreds, maybe thousands, of the little silvery plastic packs of ketchup, Gu and Power Bar gels, but I’d never thought much about the environmental impact of squeeze packs.

Then I was introduced to Justin Gold, the founder and CEO of Justin’s Nut Butter, a small but fast-growing company that sells gourmet, organic peanut, almond and hazelnut butters in 1.15 ounce on-the-go squeeze packs that retail for $0.69 to $0.99. These packs were great for business at the Boulder, Colorado-based company, which now gets about 80% of its revenues from single servings. But squeeze packs are a blight, albeit a small one, on the environment because they are made out of several layers of different materials that are welded together and can’t be recycled or composted.

Most small-company CEOs  would have shrugged their shoulders at this problem and moved on. Not Justin. [click to continue…]

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Seth Goldman, the president and Tea-e-0 of Honest Tea, made it official today:. The Coca-Cola Co. will exercise its option to buy all of Honest Tea, the Bethesda, Md., maker of organic, healthy beverages.

Coke bought 40% of the firm for a reported $43 million in 2008, a controversial move at the time for the upstart company that positioned itself as a challenger to the conventional way of doing business in the beverage industry.

Seth broke the news in a letter to his shareholders last night, in a blog post this morning and in an interview today with me at the State of Green Business Forum 2011 in Washington, arguing that his mission to “democratize organics” will be supported by Coke..

In an unusual twist to the deal–one that amounts to a vote of confidence in Seth’s leadership–Coca-Cola will allow him to repurchase most of his own equity stake in the company. His name will remain on the bottle, along with that of his co-founder, Yale prof Barry Nalebuff, and the company will continue to operate out of its offices in downtown Bethesda, a short bike ride away from Seth’s home. [Disclosure: I've known Seth for years and we attend synagogue together.]

“This is absolutely still my baby,” he said. [click to continue…]

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The Power of One: Coca-Cola

December 9, 2010

“The Power of One” is a series of stories about people who have helped their companies become more sustainable. (See earlier stories on UL Environment, eBay, and Union Pacific.) They can’t do it alone, of course. But by coming up with a good idea, enlisting the help of others and making persuasive arguments, one person can change a company and, sometimes, more. Today’s story — the last in the series, at least for now — is about a manager at Coca-Cola who knows what it feels  like to have the weight of the world on his shoulders.

Meet Bryan Jacob. Back in 1990, when he made the cover of Weightlifting USA, he was a 21-year-old  student at Georgia Tech, hoping to represent the United States in Olympic Games. He did so, twice–in Barcelona in 1992, when he finished 18th in the Featherweight division and in Atlanta in 1996, when he finished 8th in the  Bantamweight  competition. He was the top U.S. performer in his weight class both times. He’s still fit–with a firm handshake.

It’s a good thing that Bryan is accustomed to heavy lifting  because his current job, as energy and climate protection manager for Coca-Cola, is a big one: He leads Coke’s global effort to reduce the greenhouse gases that are emitted from the 10 million–yes, 10 million!–vending machines and coolers that are part of Coke’s global bottling system. The company and its bottling partners have begun to replace coolers that use the  most common refrigerants, hydrofluorocarbons (HFCs), which are also called   fluorinated gases (F-gases), with so-called natural refrigerants such as CO2, propane or isobutane.

Last year, the company and its bottling partners said they expected

that 100 percent of their new vending machines and coolers will be HFC-free by 2015. We’re hopeful our aggregate demand will encourage supply as a means of accelerating the transition to HFC-free refrigeration equipment. This announcement is a direct result of work with Greenpeace that began in 2000.

Yes, that’s right–Coke’s key partner on its journey to natural refrigeration is Greenpeace, which is better known for civil disobedience than corporate partnerships. “The Greenpeace relationship went from very confrontational to one of the most collaborative we have,” Bryan says.

Bryan, in fact, says he’s learned that NGO partners can deliver a lot of value when you are trying to ,spark change in a sprawling company like Coca-Cola. He’s worked with Greenpeace, WWF, the World Resources Institute and even Dr. Rajendra K. Pauchari, the sometimes-controversial chairman of the Intergovernmental Panel on Climate Change. Bryan once brought “Pachy,” as he’s called, to speak with a convention of Coke bottlers in Boca Raton.

Like politics, the environmental movement can create strange bedfellows.

I emailed Amy Larkin, who leads business partnerships for Greenpeace, to ask about her work with Bryan and Coca-Cola. She replied:

Bryan Jacob is the kind of colleague everyone wishes they had.  He is determined, indefatigable and inventive.  Bryan is also open to new ideas — even big crazy ideas that will require a huge amount of work to make real.  Maybe those are his favorite ideas…….not sure.

Greenpeace has worked with Bryan for many years on HFC-free refrigeration and some of our meetings were rather difficult.  Bryan’s entire demeanor and way of working always encourage constructive engagement and he is a central ingredient in our successful outcome with Coca-Cola.

As it happens, Bryan is not one of those environmentalists who grew up green. He figured that he’d one day build dams, bridges, highways and airports, as he worked towards a degree in civil engineering. (“Most of the time, I’m civil,” he jokes, “but when I get agitated I can get hostile.”) Instead, he took a job during college with an environmental consulting firm, got excited about the field and then found his way to Coca-Cola. [click to continue…]

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A food revolution?

May 21, 2010

OgAAAOMz3dH0-HafZx1TctR2lFMwnVnyn6UpdLUHNQ_8SAcyDMFhCebvsjC51YuU8w8gRAXu46wPNy5WHetI_9W0XewA15jOjFRxqljFWwNaFDgYenGcIpUAl50UHave you noticed? A food revolution has begun—with the goal of making our food and agriculture systems better for us, better for the environment, maybe even better for workers and democracy.

So, at least, says Marion Nestle, the author, activist, NYU professor and corporate critic, who gave a rousing closing speech at Cooking for Solutions, a mind-stretching, belly-expanding conference and foodfest organized by the Monterey Bay Aquarium.

The revolution will be inspired, in part, from the top—symbolized by the White House organic garden, First Lady Michelle Obama’s anti-obesity campaign and some encouraging legislation, including a requirement in the health-care law that fast food restaurants put calorie labeling on menus.

“I can’t remember every having a First Family that was interested in the issues that I’m interested in,” said Nestle, a veteran of the food wars and author of six books, including a new volume about pet food.

More important, the energy for a food revolution is being generated by diverse, decentralized grass roots (pun intended). Signs include the robust growth of organic food, albeit from a small base; the slow food movement; the rapidly increasing number of farmers markets across America; strong interest in local agriculture; Jamie Oliver’s broadcast TV prime time anti-obesity crusade; other celebrity chefs who tout “green” practices; the battle to reform school lunch programs; the campaign against bottled water; the animal welfare movement; and the obsession with food issues in so much of the media, ranging from Michael Pollan’s bestsellers to indie movies like Food Inc. to the  legions of food bloggers, many of whom came to Monterey.

When you look at it that way, there’s a lot going on. [click to continue…]

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A tipping point on BPA?

April 27, 2010

Muir-Glen-Coupons-259x300So is BPA–the controversial, much-debated chemical that, right now, is almost surely lurking somewhere inside a can in your kitchen cabinet–dangerous? Or is it safe?

Scientists can’t come to agreement. Nor can regulators. Nor, unsurprisingly, can corporate America.

Fact is, it’s a daunting job for companies to figure out how to deal with BPA, as recent events at General Mills and The Coca-Cola Co. show. General Mills inched away from the chemical, by agreeing to keep it out of its Muir Glen brand of organic tomatoes. By contrast, Coca-Cola opposed a shareholder resolution asking the company to report on its plans to deal with BPA. The resolution got 22 percent of the vote at Coke’s annual meeting last week.

While the science of BPA remains clouded, there’s growing evidence that consumers aren’t willing to wait around for a decisive verdict from the lab. So smart companies at the very least should explore alternatives.

As Rich Liroff of the Investor Environmental Health Network wrote recently in a guest post here:

smart companies will change the way they communicate about BPA and as well as search for alternatives to better align themselves with consumer concerns. Some companies could gain reputational benefits and free media attention from supporting proposed legislation restricting use of BPA.

The IEHN supported the Coca-Cola resolution on BPA.

Some background for readers who haven’t followed the debate:  Bisphenol A is a chemical that’s widely used in products ranging from plastic water bottles to eyeglass lenses. As I wrote (How Wal-Mart Became The New FDA)  back in 2008:

BPA is everywhere, used to make polycarbonate, a rigid, clear plastic for bottles, bike helmets, DVDs and car headlights. It’s also an ingredient in epoxy resins, which coat the inside of food and drink cans. About 93% of Americans tested by the Centers for Disease Control had the chemical in their urine.

Since then, the debate over BPA has only intensified. Canada and Denmark have banned the [click to continue…]

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COP15: Cokenhagen

December 15, 2009

coke_polar_bear1.top

That’s Muhtar Kent, the CEO of Coca-Cola, on the right. On the left is a polar bear. They got together about six weeks ago in Churchill, Manitoba, the polar bear capital of the world, where Kent traveled for a couple of reasons–to run with the Olympic torch as it made its way across the remotest parts of north Canada and to see first-hand the impact of climate change. No roads lead to Churchill, which is a port on Hudson Bay–you have to get there by plane or train. Another fun fact about Churchill–the newspaper there, the Hudson Bay Post, comes out once or a month, or less, depending on the news.

Anyway, I caught up with Muhtar Kent over the weekend in Copenhagen, where he was one of the very few Fortune 500 CEOs to show up in an effort to influence the climate negotiations unfolding here. Give him credit for that. (The only other CEO of a big U.S. company that I ran into here was Jim Rogers from Duke Energy.) Kent has spoken in favor of a global climate treaty and, more importantly, since becoming CEO of Coca-Cola last year, he has strongly supported the company’s sustainability initiatives–around climate, packaging and especially water.

My story about Muhtar Kent was posted today on Cnnmoney.com. Here’s how it begins:

Polar bears have been featured in Coca-Cola’s holiday advertising for nearly a century. Last month, Muhtar Kent, the company’s CEO, traveled to the Arctic to see the furry creatures up close.

It must have been cold up there, I remarked.

“Not cold enough,” replied Kent, who has emerged as a prominent corporate advocate for a global treaty to curb climate change.

“There were a lot of hungry polar bears waiting for the ice,” he said. “They were coming out of hibernation, they’d been on land for months, and they can’t feed unless they are on ice. The ice was late in forming, and we saw that with our own eyes.”

Kent sat down with Fortune in Copenhagen, where he spent the weekend. He was one of a handful of Fortune 500 CEOs to come to Denmark to throw his support behind a global agreement to regulate carbon emissions.

“It is absolutely imperative that our commitment to a low-carbon future be fully understood,” Kent said. “We’re here to lend a Coca-Cola voice to the public and political debate on getting to a fair framework, an inclusive framework, an effective framework so that we can achieve climate protection.”

We go on to talk about Coca-Cola’s sustainability work, which has a wide scope and is not cheap. The company has spent more than $50 million just researching climate-friendly refrigeration. You can read the rest of the story here.

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Helsingoer_Kronborg_CastleAs humans, we’re wired to focus on the now. I want a new gadget now. I want a slab of pie now. I’m busy now, so I don’t have time for politics. The consequences—consumer debt, a sagging waistline, a Congress beholden to special interests–all arrive later.

You can think about global warming as a now-and-later problem. Governments need to take unpopular actions now to deal with a problem that will do most of its damage later. Businesses need to look beyond the next quarter to the next quarter century.

This evening in Elsinore, Denmark, top executives from such companies as Coca-Cola, Duke Energy, Goldman Sachs and Google took the long view in a fitting venue: Kronborg Castle, a 15th century castle best known as the setting for Shakespeare’s Hamlet. Sitting in a magnificent castle that’s been preserved for six centuries makes you wonder what impact the goings-on on Copenhagen this week will have on the world in 60 or even 600 years.

In that context, it seems prudent to invest now to insure against a climate catastrophe, no matter how distant–even if the short-term result is  a slight drag on short-term economic growth

As Tracy Wolstencroft, global head of environmental markets for Goldman Sachs, put it: “The economy is a wholly owed subsidiary of the environment, not the other way around.” That is, if we ruin the environment, there’s no economy left. [click to continue…]

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The looming “water gap”

November 23, 2009

There’s good and bad news from a sweeping new report on the world’s water scarcity out today from McKinsey & Co., commissioned by such water-dependent companies as Coca-Cola, Nestle, SAB Miller and Syngenta, along with the World Bank/International Finance Corp.

1798824344_d4951982bbThe bad: Global demand for water already exceeds supply—about 1.1 billion people don’t have access to clean water—and the so-called water gap is increasing at an accelerating rate.

The good: Cost-effective, sustainable solutions are available to close the gap, particularly if governments and business focus on reducing demand rather than trying to generate additional supply.

The challenge: Getting beyond the nostrum that water is a “human right” so that water, which is obviously a scarce resource, can be priced in a way that drives conservation.

One more thing to know: Water issues are at least as complex as energy, and all water problems are local, so generalizing about water, while inevitable, is invariably misleading.

As Martin Stuchtey of McKinsey put it: “We are not saying there is one way to close the water gap, and we fully acknowledge the complexity of the water arena.”

The 185-page report, published by the 2030 Water Resources Group, was released this morning at a [click to continue…]

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Roughly 75% of plastic soda and water bottles end up in landfills, by some estimates. What a waste. We could argue about whether to blame lazy consumers, governments that fail to promote recycling, or the beverage industry. We could debate whether bottle bills will solve the problem. (They won’t, by themselves.) We could try to persuade people to give up bottled water. (They won’t.) Or we could look for market-based solutions, and see if they have the potential to scale.

That’s what the The Coca-Cola Co. is doing. This week, Coke stages a grand opening for the world’s largest bottle-to-bottle recycling plant in Spartanburg, S.C. (The plant’s been running at less than full capacity for months.) The facility is a $60 million joint venture of Coke and the United Resource Recovery Corp. (URRC), which calls itself the world leader in transforming waste bottles into new ones. URRC has a patented process for recyling food and beverage containers made of polyethylene terephthalate, or PET.

The plant will have the capacity, when fully operational, to produce 100 million pounds of recycled PET plastic chips—enough to produce 2 billion 20-ounce bottles of Coke or Dasani or whatever.

It’s a small step toward the goal of sustainable consumption—the idea the we can buy and consume stuff in a ways that don’t degrade the environment or create waste. Coke has said that it ultimately wants to recycle or reuse all of its plastic bottles and cans.

I spoke earlier today with Scott Vitters, the director of sustainable packaging for Coke. Scott is passionate about the environment, albeit in a geeky way, and he’s proud of the plant, which has been in the works for years.

“It’s an important milestone for us,” he said.

The best thing about the plant is that it is intended to make money for Coke and URRC. That means that the project can be duplicated elsewhere.

Here’s how it will work, as explained by Scott: A separate recycling company, led by Coca-Cola Enteprises, the world’s biggest Coke bottler (don’t ask me to explain the interconnected Coke system), will recover PET from a geographic area stretching from the northeast to Florida. The used PET bottles will come from its own manufacturing system, from government recycling centers and from high-profile venues like NASCAR events, college football stadiums and the House of Representatives. As the “official recycler” at the Democratic national convention in Denver, Coca Cola Recycling even collected waste from the arena known as the Pepsi Center. “All that material went back into our bottles—gleefully,” Scott says.

Another source for feedstock is a Coke-backed startup called RecycleBank, which rewards consumers who recycle more and throw away less. VC firm Kleiner Perkins is also an investor in Recycle Bank.

Getting enough feedstock into the plant is crucial to its success. “That traditionally has been a major hurdle to recycling,” Scott said.

The plant will produce a plastic chip, which will be sold to yet another Coke-backed company. Most of the chips will be refashioned into plastic bottles. Coke also makes T-shirts, tote bags, fleeces and other stuff from recycled PET, mostly as a way to encourage consumers to recycle and burnish its own image.

How will the new plant make money? “Explaining the economics around recycling is always an adventure,” Scott said. “You have to keep in mind different things. One is the evolution of the technology. This is about the fourth generation of recycling technology, and earlier generations were costly and environmentally ineffective. Second is the question of feedstocks, and how much they cost. Third is the cost of virgin PET. Today, that’s dropping.”

In other words, it’s hard to know today whether the investment will pay off. “The driver for this program was environmental,” Scott said. “It’s not going to make anyone wildly wealthy. But we’re looking to turn a profit, long term.”

That’s good news, for obvious reasons. If the Spartanburg plant makes money, more will be built. Right now, there’s a need for a similar plant in the Midwest. Plastic bottles that are recycled near the west coast wind up in China, of all places, since it’s cheap to send them over there on container ships that have delivered Chinese imports to west coast ports.

None of this is truly sustainable. Not even close. Think of the trucks, powered by gasoline, moving all of those bottles around. I didn’t think to ask Scott how the plant is is powered, but chances are it’s operated by electricity made by burning coal.

But Coca-Cola, to its credit, is doing its part to solve a big and needless waste problem. Now we need governments to do more to promote curbside recycling–maybe with “pay as you throw” programs, that charge wasteful people more money. And, of course, we need consumers to think twice before throwing a bottle in the trash or, worse, by the side of the road.

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