The Well Runs Dry? Why Water Demands Urgent Attention in the Drinks Industry
Think water's just the stuff that fills our bottles and cleans our tanks? Think again.
That seemingly endless resource that falls from the sky (especially if you’re from the UK) is fast becoming one of the biggest risks – and overlooked opportunities – for every drinks business on the planet. From vineyard to distillery, brewery to brand, the global water crisis isn't just lapping at our shores; it's threatening to breach the gates and dry up the lakes, all at the same time. I sound a bit hyperbolic writing this, as if predicting some Frank Miller inspired Max Maxian future, but water is the true currency of survival, and our industry needs a wake-up call – now.
With the impending risk of a summer drought in the UK this year after the driest Spring since 1852, I thought now was a good time to talk about water. This is the first instalment of an exciting new four-part series coming to a computer or phone near you entitled: "Water: The Indispensable Element – Charting a Course for Stewardship in the Drinks Industry."
Over the coming weeks, I’ll not just be writing about sweet, sweet H₂O; I’ll be dissecting a critical business imperative – understanding water's real value, the threats to its availability, and how your business can build resilience in an increasingly thirsty world.
Our Industry's Thirst
The direct water used within a bottle or can is often just the tip of the iceberg (sorry). The total water footprint of both alcoholic and non-alcoholic beverages, encompassing the entire value chain, from field to glass as cool trendy people like to call it, can be staggering, although it is often hard to get consistent data due to regional, agricultural, production, and climatic variation, here’s some headlines which show the variability of water usage:
It's estimated that the global average water footprint for 1 litre of beer can range from 45 litres (for highly efficient breweries with optimised agricultural supply chains) to over 150 litres when considering the full lifecycle, with the majority used in cultivating barley and hops.
Wine production typically requires even more, with figures often cited between 100 to over 600 litres of water per litre of wine, heavily dependent on vineyard irrigation practices and natural rainfall.
Spirits, due to the water needed for base agricultural ingredients, namely cereal grains and sugar cane, as well as the distillation process, can also have substantial water footprints. For example, producing 1kg of raw sugar from cane, can require over 1,700 litres of water in some regions.
Even bottled water itself has a water footprint beyond the volume in the bottle, typically 1.5 to 2 litres of water used for every litre bottled, considering processing and packaging.
While these figures vary widely, and I don’t assume that anyone is using 1,700L of water to produce raw sugar, they underscore a critical point: our industry is a significant water user.
A Tide of Insecurity
This significant thirst of our industry is set against a backdrop of increasing global water insecurity, largely driven by climate change and a growing population with global consumption habits:
Droughts and Heatwaves: Regions critical for drinks production from California's vineyards and Spain's agricultural lands to parts of Australia, which is currently experiencing both drought and floods at the same time, South Africa (remember Cape Town almost ran out of water a few years ago), and even traditionally wetter areas like the UK and continental Europe are experiencing more frequent and intense droughts and heatwaves such as this years Spring records. Recent years have seen record-breaking temperatures globally, severely impacting agricultural yields and depleting water sources. For example, the 2022 European drought was described as the worst in 500 years, and similar severe events have impacted many other key sourcing regions.
Aquifer Depletion: As water from the sky, aka rain, lessens we over-extract groundwater for agricultural and industrial purposes to fill the gap and this is leading to falling water tables in many parts of the world, making water access more difficult and costly for everyone.
Unpredictable Rainfall & Extreme Weather: Climate change is disrupting traditional rainfall patterns, leading to both intense flooding (which can damage infrastructure and crops) and prolonged dry spells. In 2025 alone we’ve seen extreme flooding events from Valencia (again) to Gaborone (Botswana) and the Mississippi (I can’t believe I spelled it write first time) to New South Wales (Australia)
This isn't just a deadly environmental issue upheaving communities around the world; it's a direct business threat. As highlighted in an October 2024 Guardian article, even in relatively water-rich countries like the UK drinks makers in areas like Suffolk, are finding their growth plans hampered as caps are placed on their water usage for most of the next decade.
A Parched Outlook?
The outlook demands our attention. According to the UN, global water demand is projected to increase by 55% by 2050, and it's estimated that by then, half the world’s population will live in water-stressed areas. The World Resources Institute (WRI) regularly maps global water stress, and its Aqueduct Water Risk Atlas shows that many regions crucial for agricultural inputs for the drinks industry are already facing high or extremely high water stress.
For the drinks sector, this translates to:
Increased competition for water resources with other users (agriculture, domestic supply, other industries).
Rising water costs, both directly for abstraction/municipal supply and indirectly through higher prices for water-intensive raw materials.
Greater operational risks due to potential water shortages or restrictions.
The Regulatory Current is Shifting
Governments and regulatory bodies are responding to this growing crisis:
Stricter Abstraction Licensing: Across the UK and Europe (under frameworks like the EU Water Framework Directive and its UK equivalent), there's a clear trend towards tighter controls on how much water businesses can extract from rivers, boreholes, and aquifers. The Environment Agency in England, for example, is under pressure to ensure sustainable abstraction levels, which can impact new applications or renewals for drinks producers.
Focus on Water Quality & Discharge: Regulations around wastewater discharge are also becoming more stringent, increasing the cost and complexity of compliance.
Potential for Water Allocation & Rationing: In severely stressed regions, authorities may be forced to implement water allocation frameworks or temporary rationing, directly impacting production capacity.
Increased Scrutiny & Reporting: There's growing pressure from investors, consumers, and NGOs for businesses to transparently report their water use, risks, and management strategies (e.g., through frameworks like CDP Water Security).
The situation in Suffolk, where Anglian Water and the Environment Agency have highlighted constraints on new water connections or increased abstraction for businesses, is a clear signal. It underscores that even in developed economies, the assumption of readily available water for industrial growth is being challenged. Businesses that haven't factored robust water stewardship into their plans will find themselves increasingly vulnerable.
The Imperative for Action
The evidence is clear: water is a critical operational, financial, and reputational risk for the drinks industry. Ignoring these trends is no longer viable. In our next article, we will explore the first crucial area for action: understanding and mitigating the water footprint within our agricultural supply chains, where a significant portion of our industry's water impact lies.
For now, the takeaway is stark: the way we value, manage, and consume water must fundamentally change. It is, after all, our most indispensable ingredient.
