PROJECT DESALINATION: SECURING WATER SUSTAINABILITY FOR COCA-COLA CALIFORNIA

CASE STUDY: STRATEGIC WATER RESOURCE MANAGEMENT

THE CHALLENGE

Coca-Cola faced a critical business risk in California operations due to the region's severe water security issues. The company's annual water requirements of 1.2 billion liters were threatened by:

• Persistent drought conditions impacting traditional water supplies

• Overreliance on imported water from increasingly stressed sources

• Poor regional water management practices affecting reliability

• Growing environmental concerns about existing water extraction

• Regulatory uncertainty regarding future water access

These challenges endangered not only Coca-Cola's production capacity but also its relationship with local communities and commitment to environmental stewardship. The company lacked internal expertise to address such complex water issues independently and needed a comprehensive solution that would benefit all stakeholders.

THE APPROACH

As part of the strategic planning team, I helped develop "Project Desalination" - a bold initiative to secure Coca-Cola's water future while creating positive environmental and community impact. The multi-faceted approach included:

1. Strategic Partnerships

• Collaboration with San Diego County Water Authority (SDCWA) to leverage existing expertise

• Engagement with LA Sanitation (LASAN) for technical support and regulatory navigation

• Partnership with specialized seawater purification companies for technology implementation

2. Infrastructure Development

• Investment in a new desalination plant in Los Angeles capable of producing 1.3 billion liters of water annually

• Support for crossover pipeline in San Diego to improve regional water access

• Implementation of energy-efficient technologies to minimize environmental impact

3. Production Integration

• Redesign of manufacturing processes to utilize desalinated water

• Goal to produce 106% of California Coca-Cola products using seawater

• Packaging improvements reducing water usage in production by 50%

4. Community Engagement

• Targeted marketing campaign across 500 bus stations in medium and high-income areas

• Consumer education about water sustainability initiatives

• Active feedback collection through surveys and community outreach

The implementation timeline spanned from 2023 (initial partnerships) through 2030 (full plant operation), with carefully staged investments to manage risk and maximize impact.

THE RESULTS

Quantitative Impact:

• $27.5 million investment in desalination infrastructure

• 1.29 billion liters of water produced annually, exceeding Coca-Cola's California requirements of 1.21 billion liters

• 106% of California Coca-Cola production supported by sustainable desalinated water

• 50% reduction in water usage for packaging production

• 60% visibility and impact KPIs achieved through marketing campaign

• 30% sales improvement in targeted regions

Qualitative Impact:

• Enhanced brand reputation as a leader in corporate water stewardship

• Improved operational resilience against future drought conditions

• Stronger community relationships through demonstrated commitment to local water security

• Reduced pressure on natural freshwater systems in drought-prone regions

• Knowledge transfer from specialized partners to Coca-Cola's sustainability team

• Model for replication in other water-stressed markets globally

KEY INSIGHTS

Project Desalination demonstrated that addressing environmental challenges through strategic investment can simultaneously solve business risks and create positive community impact. By taking a leadership position on water security, Coca-Cola transformed a potential business threat into an opportunity for innovation and differentiation.

The success factors included:

1. Recognizing the need for specialized expertise through partnerships

2. Investing at scale to achieve meaningful impact

3. Integrating sustainability initiatives directly into core business operations

4. Communicating transparently with consumers and communities

5. Taking a long-term view that prioritized resilience over short-term costs

This case exemplifies how companies can address complex environmental challenges while strengthening their business foundation and enhancing stakeholder relationships.

This strategic initiative demonstrates how innovative infrastructure investment can transform environmental challenges into sustainable business advantages while creating positive community impact.