In Brazil, Two Corporate Giants, a Drought and an Unexpected Partnership
When a 250-year drought hit São Paulo, established rivals moved from competition to collaboration.
If there is a shorthand for fierce global corporate competition, Coke versus Pepsi would be it.
But then, there is water.
“In isolation, we wouldn’t reach results,” said Wanessa Scabora, a sustainability manager for Coca-Cola FEMSA in Brazil. “When it comes to water, we are partners.”
Their partnership came after São Paulo, Brazil’s megalopolis of 22 million people and the country’s industrial heart, hit a once-in-250-years drought in 2014 and 2015. Supplies in the city’s main reservoir, Cantareira, dwindled to just 3% of capacity. De facto emergency rationing left neighborhoods without water for days at a time. There was even talk among business leaders about long-term relocation of factories elsewhere — about 60,000 companies operating in the area were considered at risk.
The almost-too-late return of normal rainfall eventually ended the crisis. But in an era of extreme climate volatility, companies were unwilling to risk going through such a trauma again. Soon after, companies including Coca-Cola Femsa, Coca-Cola Brasil, PepsiCo and beer maker Ambev (AB InBev’s Brazilian arm) joined an initiative known as the Coalition of Cities for Water.
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