Kellogg, PepsiCo Top Food and Beverage in Water Efficiency, finds new research

Nov. 1, 2015
Kellogg and PepsiCo led food and beverage makers, respectively, in efficiency of water use, an important metric for the long-term profitability and sustainability of resource-intensive businesses, according to Lux Research.

Kellogg and PepsiCo led food and beverage makers, respectively, in efficiency of water use, an important metric for the long-term profitability and sustainability of resource-intensive businesses, according to Lux Research.

However, the consumer packaged goods (CPG) sector as a whole needs better information in order to avoid resource risks.

Lux analysed 4,000 companies and focused on 18 that lead the CPG sector and reported sustainability numbers on variables such as water usage, energy consumption and waste generation.

Kellogg generated more than $1,200 of revenue per kiloliter (kL) of water used, compared with an average of $600/kL for all diversified food companies. Diversified beverage companies averaged under $400/kL with PepsiCo the best in its class at about $600/kL.

“Using resource productivity as a new metric for measuring system performance and targeted investments is critical to longer-term profitability in this age of sustainability,” said Ory Zik, Lux Research vice president of Analytics.

“Converting inputs into energy and water equivalents will help establish baselines and benchmarks, but improved reporting on a more granular level is essential to measure impact from the whole ecosystem and in setting corporate strategy,” he added.

Lux Research analysts evaluated resource efficiency in consumer packaged goods, besides creating a new functional metric to weigh the full impact to the ecosystem in an era of increasing resource scarcity. Findings included:

  • Brewers lag other beverage makers, showing importance of product-level data. Compared to diversified beverage companies at $600/kL, makers of alcoholic beverages realized an even lower $250/kL, led by Heineken at over $300/kL. Different product classes inherently use different amounts of water, making reporting at the business unit or product level necessary for true comparisons.
  • Energy usage is another vital metric. Both food and beverage companies average about $12,000 in revenue per megawatt hours (MWh) of electricity used. The best in class in this sector is the J.M. Smucker Co., growing from about $14,000/MWh in 2010 to about $18,000/MWh in 2013 - likely due to infrastructure improvements started in 2010.
  • Full risks remain unassessed. Most companies only report partial information on resource use, and may remain unaware of the full risks they face. For example, a beverage company with a water use ratio of 3:1 in its own operations may find its ratio ten times or more higher if it takes the entire supply chain into account, implying much higher risks. Furthermore, because water is such a local issue -the value of a liter of water in California is different than in upstate New York - companies cannot quantify their resource risks unless they use accurate geospatial analytics.

The report, titled “Scarcity and Materiality: Benchmarking Resource Productivity in Food and Beverage,” is part of the Lux Research Food and Nutrition Intelligence and the Water Intelligence services.


Energy-neutral wastewater treatment target of GE partnerships

GE has made three partnerships water scarcity through energy neutrality. Together with engineering company MWH Global, the two firms will develop new water reuse and energy-neutral wastewater projects. GE water treatment equipment will be coupled with the delivery portfolio of MWH Global. Meanwhile, GE and Goldman Sachs will work together to identify new opportunities to deploy capital and develop financing models for water projects. The aim of the partnership is to explore more creative financing models and structures to promote water reuse and energy-neutral wastewater for these projects. A final partnership will see GE join forces with Masdar, through its Ecomagination 2020 Partnership, to implement the an energy-neutral wastewater treatment process. The demonstration project will be sited in Abu Dhabi with the aim to scale the solution across the region.


Aquatech announces winners of 2015 Innovation Awards

The results of the Aquatech Innovation Award 2015, announced at the Aquatech Amterstam show in early November, included:

  • Overall Winner And Category Winner: Wastewater Treatment DyVaR O&G ZLD, Salttech BV
  • Category Winner: Not-Yet-To-Market PearlAqua by AquiSense Technologies - a UV LED water disinfection system from US company AquiSense Technologies
  • Category Winner: Process Control Technology & Process Automation Hach Prognosys predictive diagnostic system by Hach - sn instrument predictive diagnostic system
  • Category Winner: Transport & Storage Aquarius Spectrum - an automated system for detecting when leaks develop in supply networks from Israeli company Aquarius Spectrum
  • Category Winner: Water Supply/Water Treatment MPC-Buoy: Monitor, Predict & Control Algal Blooms by LG Sonic BV - an ultrasonic system for treating algal blooms from Dutch company LG Sonic.

The winning entry is able to treat highly saline wastewaters and reclaim water at the same time. Further, it is relevant to the oil and gas industry and provides a zero-liquid-discharge option.


Global sustainable water filter campaign launched by Water For Life

Charity Water For Life has partnered with Sawyer to provide Personal MINI water filters for pledges that provide Family filters to suffering families, through Indiegogo. In its first few days, Water For Life has already achieved its initial goal of $25,000 to deliver 500 filters to Cambodia and is working on securing funds to send filters to Kenya and India as additional goals. “Clean water is a basic human need but not available to 1.4 billion people around the world,” said Water for Life founder Rudy Shaffer. “This high-tech filter is a sustainable solution to supply clean, safe drinking water and directly affects the children that are dying each day from water borne diseases.”


CMAA honors Landmark Lesotho Dam and Water Supply Program with awards

The Construction Management Association of America (CMAA) has honored the landmark Metolong Dam and Water Supply Program in the Kingdom of Lesotho, Southern Africa, with an unprecedented two wins in the Infrastructure and International award categories. The awards were presented at the CMAA National Conference and Trade Show in Orlando, Fla., on Tuesday, Oct. 13.

CDM Smith provided program and construction management services to the Millennium Challenge Account - Lesotho and the Metolong Authority, managing the design, procurement, scheduling, staffing, and construction of a pivotal program. The Metolong Dam and Water Supply Program, consisting of 30 construction contracts and five major design contracts, provides potable water for more than 500,000 people in the region.

Funded by the Lesotho Millennium Challenge Corporation, European Investment Bank, a consortium of Arab funders, World Bank, Republic of South Africa, and Lesotho, the program supports major towns including Lesotho’s capitol, Maseru, and helps to stimulate the region’s economy by creating jobs and improving health with clean water. CDM Smith helped secure nearly $200 million in funding for the $430 million public works program.

Major program components include construction of the Metolong Dam and raw water pump station, water treatment works and downstream conveyance system, among others.


Philippines’ water market ripe for European participation, finds report

Private sector water participation will increase in the Philippines up until 2020 with nine projects lined up.

The success of the US$542-million Bulacan Bulk Water Supply Project, currently awaiting final bids, represents a key milestone to prove the government ability to enable private participation beyond its capital city.

Private water concessions in Manila have driven water coverage from under 60% to nearly 100% between 1997 and 2015, according to a new Market Insight from Bluefield Research: “The Philippines Extends Water PPPs Beyond Manila.”

Detailing the country’s water market transformation, Bluefield said domestic players Manila Water Company and Maynilad have not only emerged, but provide global benchmarks for water infrastructure public-private partnerships (PPP) in developing countries.

Earlier this year, the country’s Metropolitan Waterworks & Sewerage System (MWSS) Regulatory Office approved rate adjustments for Manila’s water utility concessionaires, showing that the Philippines market is maturing.

Manila Water Company Inc. faced a 2.42-percent tariff reduction (PHP0.63/m3).

Maynilad, on the other hand, was set to implement a 4.19-percent (PHP1.35/m3) tariff increase. The country’s PPP Centre has nine strategic projects lined up through 2020.

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