Hitchhiker’s Beverage Company: Current CSR Strategy

Hitchhiker’s Beverage Company: Current CSR Strategy

Executive Summary

Cooperate Social Responsibility (CSR) has become one of the most important pillars of success in the global business. The strategy allows the organization to improve society's wellbeing while remaining accountable for their actions. In this paper, a literature review approach is used to evaluate the current CSR strategy of Hitchhiker's Beverage Company.

The report begins by reviewing the significant trends in the F&B industry. The analysis seeks to develop an understanding of the reasons for which Hitchhiker's Beverage Company should shift its focus toward CSR/sustainability concerns. Additionally, the essay includes an evaluation of the business’key sustainability issues and CSR strategy as well as those of its two competitors (PepsiCo, Inc. and Starbucks, Inc.).

The findings suggest that companies in this sector have a broad market base for their products. However, consumers’ perception, expectations, and consumption habits are taking new shifts. Therefore, beverage organizations have to understand and meet consumers’ new preferences. Moreover, F&B firms are currently focusing on natural ingredients instead of artificial colors and flavors(Hitchhiker's Lemonade, 2018).

On the other hand, water conservation and potential ecological impacts of business activities were found to be Hitchhiker's Beverage’s most critical sustainability issues. Thus, the company has adopted an “all-natural craft” strategy that focuses on the use of natural ingredients in beverage production(Hitchhiker's Lemonade, 2018). Moreover, Hitchhiker's Beverage recycles its wastes. Collectively, the CSR strategy has enabled Hitchhiker's Beverage to stay relevant in the competitive beverage market.

Introduction

Cooperate Social Responsibility (CSR) has become one of the most important pillars of success in the global business. The strategy allows an organization to improve society’s wellbeing while positioning itself to be accountable for its actions as it attempts to meet stakeholders’ needs. Accordingly, for corporations that seek to achieve a high-value consumer brand,CSR initiatives are a core part ofbusiness activities (Chandler, 2016).Hitchhiker'sofferings, for instance, have a strong influence on consumers’ health since the products are directly consumed by buyers(Hitchhiker's Lemonade, 2018).Therefore, the company has to prove its commitment to CSR endeavors.

Impetus

Major Trends

The change in consumers’ perception, expectations, and consumption trend is one of the most critical shifts in this industry. According to Ndichu and Barras (2018), many Canadians tend to spend a significant part of their incomes on beverages owing to the sustainability, health, value, and the convenience, which drive their choices. However, Chandler (2016) writes that such buyers expect to be supplied with functional and fortified foods that benefit their physical strength and promote gut health.

On the other hand, to respond to thenew trend, Canada’s F&B companies seek out to provide h

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