Global Warming Posing Big Risks to Food Giants PepsiCo, General Mills

Thanks to global warming, fresh water is vanishing. And that poses a major threat to the future of food manufacturers like PepsiCo (PEP), Coca Cola (KO) and General Mills (GIS). The statistics surrounding global warming are getting worrisome. According to the United States Environmental Protection Agency, the Earth's average temperature has risen by 1.5 degrees Fahrenheit over the past century. A 2013 study of 40 aquifers across the U.S. by the U.S. Geological Survey said that the rate of groundwater depletion has increased dramatically since 2000. Subsequently, the effects of global warming are not going unnoticed by the food companies and water utilities. ‘We absolutely have a fresh water shortage, just look across the United States, the droughts in California, and everywhere else,’ said PepsiCo vice chairman and Chief Scientific Officer Dr. Mehmood Khan in an interview with TheStreet. That shortage has caused PepsiCo to find new ways to conserve water, such as fixing leaks at its beverage plants and developing less energy intensive packaging. In total, the company has reduced its water use per unit of production by 23% since 2006. TheStreet’s Brian Sozzi reports.