Starbucks Corporation (NASDAQ:SBUX) staged a decision to relocate Ethos Water Brand operations from California to Pennsylvania. California is facing acute water shortage following the severe draught. The relocation will begin starting May.
According to a statement released by Starbucks, it is considering relocation of bottling operations to other location as part of water conservation.
The company is also scouting for the new supplier / source for its Ethos Water Distribution based in West Coast.
The new move is on the backdrop of news published in the Mother Jones magazine about the sourcing of water for its Ethos bottling operations from draught hit California.
The regulators of California has contemplated cut in water usage in some of the cities by 36% when compared to 2013.
Starbucks has acquired Ethos Brands LLC in April 2005 for cash worth $8 million. The company has reduced water usage by 26% in its California-based cafes since 2008.
According to Senior Vice President, John Kelly, Starbucks, the company is committed to offering necessary support to the people in California, who are struggling with a draught. The latest move is in coordination with the local and state governments to reduce water usage by over 25%.
Starbucks Corporation (NASDAQ:SBUX) contributes generously to the social cause in countries like Indonesia, Africa, and Latin America.
The company has so far contributed over $12.3 million for sanitation, water and education programs in poverty-stricken nations.
Other prominent companies’ brands that source water from California includes Aquafina brand of PepsiCo, Inc. (NYSE:PEP) and Dasani brand of The Coca-Cola Co (NYSE:KO).
Coca Cola has not stopped sourcing water from California. But it prevents water usage for landscaping and trucker washing.
According Nancy Woman, a Spokeswoman of Coca Cola, the company is committed to retaining existing staff in California.
The total consumption of water by bottling companies in the US is estimated at 11 billion gallons in 2014, an increase of 7% from 2013.
