The revelation that Coca-Cola has been extracting groundwater for free in Perth, Australia, for decades has ignited a fierce debate over resource management, corporate responsibility, and the fairness of water rights in a region facing increasing drought conditions.
In a scenario that has captured public attention and ire, Coca-Cola Europacific Partners (CCEP) has been accessing groundwater from the Perth Hills at no cost, bottling it for profit under brands like Mount Franklin. This practice, which has been ongoing for over two decades, has come under scrutiny as Perth grapples with one of its driest periods on record, highlighting the tension between corporate water use and local conservation needs.
Perth’s water situation has been dire, with recent reports indicating that the city’s major water source now receives significantly less rainfall recharge than half a century ago. This backdrop makes the issue of free water extraction by large corporations particularly contentious. The water in question comes from an unproclaimed groundwater area, where neither Coca-Cola nor other users, including local farmers, require a water license or pay for extraction.
The debate over Coca-Cola’s access to free groundwater touches on broader themes of environmental justice, corporate accountability, and the management of natural resources in a climate-changed world. Critics argue that such practices exemplify a double standard where commercial entities benefit at the expense of local communities and ecosystems.
Water Minister Simone McGurk has voiced concerns, stating that the arrangement “doesn’t pass the pub test.” Following public outcry and media attention, the government has initiated discussions with Coca-Cola, aiming for more transparency and potentially re-evaluating the legal framework surrounding water extraction. This includes considering whether to proclaim the area, which would require all users, including CCEP, to pay for water extracted.
Coca-Cola has defended its operations by stating that it uses less water than permitted and has committed to sustainable water management practices. However, the company’s reluctance to share specific extraction figures publicly due to commercial sensitivity has fuelled scepticism.
The issue of Coca-Cola’s free groundwater extraction in Perth is more than a local dispute; it’s a microcosm of global water rights debates. As Perth’s climate grows drier, the conversation around who gets to use this precious resource, and at what cost, becomes increasingly urgent. This situation might just be the catalyst for a broader overhaul of water management policies in Australia, ensuring that all users, corporate or individual, contribute to the sustainability of this vital resource.