Climate Change Affects More than Fizzy Drinks

Coca Cola noticed that changes in the environment are affecting (and will continue to affect) the amount and price of ingredients. Vice president of environment and water resources Jeffrey Seabright provides the climate quote:

Increased droughts, more unpredictable variability, 100-year floods every two years, listing the problems that he said were also disrupting the company’s supply of sugar cane and sugar beets, as well as citrus for its fruit juices (sic). When we look at our most essential ingredients, we see those events as threats.

Nike also blamed unusual, and unseasoned flooding in Thailand for disruptions in its supply chain.

Barry Ritholtz argues for business taking a greater interest in climate change. The money argument:

This debate is no longer about whether global warming is real (it is) or whether humans are the most likely cause (you are), but rather, some very interesting and different questions that might be more professionally relevant to finance: How is this going to affect business? What are the investing consequences? Who will be the financial winners and losers of climate change?

Prices for beef, pork, and sheep are increasing, in part, due to drought and illness brought on by climate change. Fast casual hamburger outlets are altering their dollar menus to reflect these increasing prices.

These disruptions will eventually affect prices at retail. Unless revenue increases, expect retailers' profit margins to get squeezed even tighter.