Red Gold: Spanish Strawberries and German Supermarkets

About this Case Study

German and Swiss supermarkets source out-of-season strawberries primarily from southern Spain. Intensive farming practices in the region have led to water overuse, threatening local ecosystems and the long-term resilience of strawberry production.

This case study examines the nature-related dependencies and impacts of Spanish strawberry production, the impact of consumer boycotts on this commodity and how supermarkets have responded to reputational and financial risks.  

Key outcomes

• Global agri-food companies face a complex array of nature-related dependencies through their supply chains that can materialise into risks to their organisation.
• Identified physical risks for supermarkets derived from the declining volume and quality of strawberries available from southern Spain, as water stress and climate change impact yields.
• Supermarkets also faced transition risks from shifting consumer expectations. In this case, among German customers taking boycott action brought against those supermarkets. This led to reputational risks and financial consequences associated with lost sales.
• Companies along the value chain – from growers to retailers – also had to contend with changing policy and regulatory arrangements, for example from water restrictions during drought conditions.

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