Diageo, the world’s biggest spirits company, is worried that climate change is going to make scarce the one ingredient that’s essential for making all of its alcoholic drinks: water
to replenish more water than it uses in all the “water-stressed areas” it operates in by 2026. These are regions where the demand for water exceeds the supply during some periods or the poor quality restricts its use. Among these countries is Turkey, where it makes the aniseed-flavored spirit raki, and Mexico, where it manufactures tequila.
“We know we’ve got a good strategy in place but we also know that the crisis is accelerating,” Alexander said.Dhiraj Singh—Bloomberg/Getty Images
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