Coca-Cola forced to reveal secret source of Mt Franklin water

Beverage giant had to say something before its spring source near Sydney became contaminated.

Woman holding hands up to ear through hole in wall.

Image source: Getty Images

Coca-Cola Amatil Ltd (ASX: CCL) has long guarded the secret location for the source of its Mt Franklin bottled water.

But now it has been forced to reveal where "Mt Franklin" is in real life.

The beverage maker has complained to the NSW Department of Planning about potential pollution of its water source from a future nearby sand mine.

The company's group property development manager Brad McAndrew said its bores in the Southern Highlands, south of Sydney, could experience "contamination of the regional aquifer" if the project went ahead.

"The availability, consistency, reliability and quality of the water extracted from below the land is integral to our business and our customers."

McAndrew's submission showed Coca-Cola's spring water bores are located about 20km south-west of Bowral, on a property on Hanging Rock Road in Sutton Forest. 

The boundary of the future quarry is about 2km away. 

A Coca-Cola Amatil spokesperson told The Motley Fool that it had requested more information from the NSW Department of Planning.

"We have not received any communication from the department outlining the applicant's response. We look forward to receiving this when available," the spokesperson said.

"These concerns were based on the results of an independent environmental assessment of impacts on our property."

The concern is that millions of cubic metres of fill would need to be trucked in from all over NSW to fill the empty hole left in the quarry.

And that would produce a risk of contaminated soil delivered from elsewhere affecting the water quality.

Coca-Cola stated that its Sutton Forest bores had been used for 10 years and it was planning to operate them "over the long-term".

Wingecarribee Shire Council stated the aquifer was "highly productive" and used "extensively".

"43 registered bores were identified in a 2.4 km radius of the project, including 11 Industrial/irrigator users with entitlements of 457 megalitres a year."

Coca-Cola Amatil shares were down 0.73% on Monday, to close at $9.56.

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on ASX Share Market News

A man in his office leans back in his chair with his hands behind his head looking out his window at the city.
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

Two mature women learn karate for self defence.
ASX Share Market News

Investors get defensive as ASX 200 drifts to a 15-week low

The traditionally defensive consumer staples and healthcare sectors performed best last week.

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Broker Notes

3 ASX shares given buy ratings this week offering 20% to 40% upside

Morgans expects these shares to deliver big returns.

Read more »

A woman's hand draws a stylised 'Top Ten' on a projected surface.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a sour end to the trading week for investors this Friday.

Read more »

Person on a tablet with buy and sell options for a stock on the screen.
Opinions

Xero shares have crashed 64%. Here's why I'm buying

Xero shares have plunged, but I'm seeing a buying opportunity.

Read more »

Red arrow going down on a stock market chart, with share prices in red.
ASX Share Market News

ASX 200 sinks to June lows as investors brace for another RBA rate hike

The ASX 200 is heading towards the weekend on a sour note.

Read more »

Drone flying in the sky.
Share Gainers

EOS shares jump 7% as ASX 200 falls. Could $15 be next?

Could this ASX defence stock have much further to run?

Read more »

A woman in a red dress holding up a red graph.
Broker Notes

2 ASX shares UBS says could increase 13% to 37%

These shares are primed for a rise, the broker says.

Read more »