{"id":13951,"date":"2016-11-04T17:56:35","date_gmt":"2016-11-04T21:56:35","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/how-almond-milk-was-supposed-to-save-the-world-but-might-suck-california-dry\/"},"modified":"2016-11-04T17:56:35","modified_gmt":"2016-11-04T21:56:35","slug":"how-almond-milk-was-supposed-to-save-the-world-but-might-suck-california-dry","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/how-almond-milk-was-supposed-to-save-the-world-but-might-suck-california-dry\/","title":{"rendered":"How almond milk was supposed to save the world but might suck California dry"},"content":{"rendered":"

The Context<\/strong><\/p>\n

I have been vegetarian for most of my life and try to live a mostly vegan lifestyle today. While I certainly have ethical motivations in regards to animal life, I decided to go vegan in part to reduce my environmental impact. The thinking was that, by adopting a vegan diet, I would further reduce my consumption from the livestock industry which contributes to 18% of greenhouse gasses.[1]<\/a> However, since last summer, I have been torn, unable to trust even my vegan consumption habits.<\/p>\n

It\u2019s unclear to what extent global climate change is responsible for the current drought in California, but here is what we do know: the period between 2011 and 2014 has been the driest in California history since record-keeping[2]<\/a>, and the governor has mandated that water agencies reduce their water consumption by 25% since the summer of 2015.[3]<\/a><\/p>\n

The California drought has given rise to a unique set of problems around the growing of almonds, especially for the production of almond milk \u2013 a dairy substitute that boasts environmental benefits \u2013 including lower water usage \u2013 over traditional dairy products like milk and other vegetables like tomatoes.[4]<\/a> However, the problem remains that, unlike other products that are sourced across diverse geographies, nearly 80% of almonds are sourced from California where they absorb 10% of the state\u2019s water supply.[5]<\/a><\/p>\n

WhiteWave\u2019s current dilemma<\/strong><\/p>\n

One company facing the problems associated with using California\u2019s water to produce almond milk is WhiteWave Foods. Known for their market-leading Silk<\/em> brand, WhiteWave commands 13% of the dairy and dairy alternatives beverage market.[6]<\/a> With increasing pressure on Californians to save water and increasing media coverage on the issue, WhiteWave\u2019s brand is at stake, and they are starting to make operational changes including improving geographic diversity. In a May 2015 earnings call, President of Americas Fresh Foods at WhiteWave claimed the company is looking into \u201cgeographic diversity of our land with a focus on well water, groundwater access, so [it has] no concerns in the short term.\u201d[7]<\/a> Next, WhiteWave invests in Water Restoration Certificates (\u201cWRCs\u201d) to balance its water consumption from the Silk<\/em> brand.[8]<\/a> While it has not explicitly connected its philanthropy to the drought, WhiteWave has also donated 2% of its pre-tax profits to nonprofit organizations focused on sustainability in addition to hunger relief.[9]<\/a><\/p>\n

While it is doing more than most companies, WhiteWave understands that demand for almonds continues to increase globally and that it has an obligation to ensure that its sourcing of California almonds must be responsible. If it doesn\u2019t move to action and the drought gets worse, WhiteWave knows that it places not only its brand on the line[10]<\/a> but also leaves the door open to further regulation that could prohibitively increase the cost of production for its almond-based dairy alternative products.<\/p>\n

Next steps for WhiteWave <\/strong><\/p>\n

Given its brand and production cost risks, WhiteWave must consider the following additional steps:<\/p>\n