Executive Summary
As global carbon emissions continue to rise and natural resources become scarcer, industries
are under increasing pressure to commit to more sustainable manufacturing processes, with the
soft drinks industry being no exception. In the face of rising criticism regarding issues such as
competition for water resources, water pollution and packaging disposal, some industry
members have embarked on a number of initiatives to reduce their environmental footprint in
the soft drinks value chain. However, there remains much scope within the industry for it to
achieve greater environmental performance.
The soft drinks industry is an important player in the food and beverage industry, although
health and nutritional concerns have led to diminishing demand in recent years in more
developed economies. Many low- or no-sugar options are now surpassing traditional soft drinks
as market leaders in many cases, along with a rise in energy drink consumption. This trend is
likely to continue, as is the growing demand for new, natural plant-based sweeteners. Soft
drinks companies are also diversifying into a wide range of beverage and food products, hence
their global reach and impact on various supply chains is immense. Correspondingly, their
impact on natural environments also leaves much room for greening the value chain.
Furthermore, multinational companies also have the ability to positively influence their
respective governments to commit to resource efficiency and climate change mitigation targets.
Globally, the sector is dominated by large multinational corporations such as the Coca-Cola
Company, PepsiCo and Nestlé S.A. The Coca-Cola Company, in particular, has bought out a
number of high-performing local brands around the world. Nevertheless, some countries and
regions have a number of small to medium-sized companies which have carved out their own
sizeable market share. The United States of America remains the largest market for soft drinks,
however, future growth is expected to be strong in the developing regions of Latin America, the
Middle East and Africa, while China is also forecast to see rising sales.
This report is a review of best practice greening opportunities for the soft drink industry and, as
such, aims to serve as a point of reference for practitioners in the food and beverage sectors
and sub-sectors in their adoption of green industry policies and practices. The report examines
the various stages along the value chain, from the production of agricultural ingredients, to
processing, packaging, distribution and consumption, making the case where possible for a
'closed loop' approach, whereby all by-products are recovered and reapplied.
The report emphasises that the soft drinks industry would benefit from greater cooperation
along the value chain to improve resource efficiency and cut waste. It also highlights that useful
interventions can be made in the areas of raw materials supply (sugar, citrus fruits, additives
and sweeteners etc.); soft drink manufacturing (bottling); warehousing; distribution; retailing;
and consumption. However, the areas with the most “greening” potential are to be found in
water and energy use, packaging and agricultural ingredients.
A number of multinationals have been working for some years in collaboration with a range of
stakeholders at the local level to ensure that scarce water resources are used efficiently. Many
have companies committed to the Water Stewardship principles as defined by the World
Wildlife Fund (WWF), the World Business Council for Sustainable Development (WBCSD) and
the European Union (EU). Smaller companies that supply soft drinks at a national or regional
level are also implementing a range measures to reduce their environmental footprint through
measures such as committing to measurable reductions in packaging, the utilisation of
renewable energy and the production of their own PET pre-form packaging.
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