While many businesses are pivoting towards greener, cleaner processes, more traditional industries face challenges in moving away from methods that have served them for hundreds of years. Craig Groeneveld, Master Brewer at Lyras, investigates the brewery industry’s role in tackling climate change.
Why the brewing industry should care
Today’s consumers are conscious about environmental issues and will seek out products that align with their values. By offering sustainably brewed beers, retailers can attract environmentally conscious consumers and increase their brand loyalty. In turn, this gives them a competitive advantage in an already saturated marketplace.
Furthermore, implementing sustainable practices, such as reducing water usage, optimising energy consumption using RaslysationTM technology (ambient energy replacing heat energy), and minimising waste (or waste to product in a safe way), can lead to significant cost savings in the long run.
Climate change and environmental degradation pose significant risks to supply chains. For example, in 2023, severe floods in China impacted global supply chain operators, resulting in hundreds of millions of pounds in damages. By working with breweries that prioritise sustainability, retailers can enhance their supply chain’s resilience and mitigate the impact of disruptions caused by environmental factors.
Tackling greenwashing
Many consumers will happily pay more for a product if it is environmentally friendly. As a result, organisations have tried to position themselves as sustainable, when this is not always the case. So how can consumers spot brewers that are genuinely doing the right thing over those that talk the green game?
1. Transparency and accountability
Look for brewers who openly share information about their sustainability practices, such as energy consumption, water usage, waste management, and sourcing of ingredients. Companies that are truly committed to sustainability will often provide detailed reports or certifications to back up their claims.
2. Certifications and standards
Pay attention to certifications and standards related to sustainability. These designations indicate that a brewer has met specific criteria for environmental and social responsibility, providing assurance of their commitment to sustainability.
3. Track record and long-term commitment
Evaluate a brewer’s track record and long-term commitment to sustainability. Companies that have been actively implementing sustainable practices for years and have concrete goals for future improvements are more likely to be genuinely committed to environmental stewardship.
4. Supply chain transparency
Assess the transparency of a brewer’s supply chain. Brewers that prioritise sustainability often have initiatives in place to ensure ethical sourcing of ingredients and support for local farmers and communities. They may also have partnerships or collaborations with sustainable suppliers.
5. Engagement with stakeholders
Look for brewers that actively engage with stakeholders, including employees, customers, and local communities, on sustainability issues. Companies that solicit feedback, participate in sustainability initiatives, and communicate openly with stakeholders are more likely to be genuine in their commitment to sustainability.
6. Third-party endorsements
Consider endorsements or recognition from reputable third-party organisations or industry associations focused on sustainability. Awards, rankings, or partnerships with recognised sustainability organisations can provide additional credibility to a brewer’s claims of environmental responsibility.
7. Consistency in actions and messaging
Pay attention to consistency between a brewer’s actions and messaging regarding sustainability. Beware of greenwashing, where companies exaggerate or misrepresent their environmental efforts for marketing purposes. Genuine commitment to sustainability is demonstrated through consistent actions aligned with stated values and goals.
Transparency is key
Sustainability is a complex issue, so how can retailers communicate with consumers effectively?
Customers are often interested in how products impact the environment. Retailers can highlight aspects such as reduced carbon footprint, water conservation efforts, and use of renewable energy in production. Specific environmental benefits can resonate with environmentally conscious consumers and demonstrate commitment to sustainability.
Transparency about sourcing of ingredients and materials can be compelling for customers concerned about ethical issues such as fair labour practices, animal welfare, and support for local communities. Retailers can emphasise partnerships with sustainable suppliers, certifications for responsible sourcing, and initiatives to support small-scale producers.
Customers appreciate retailers that actively work to reduce waste and promote recycling. Promoting initiatives such as bottle return programs or compostable packaging can appeal to customers who prioritise waste reduction.
Demonstrating a commitment to the local community can also strengthen customer loyalty. Supporting local farmers, artisans, and charitable organisations, engaging in local events, sponsoring local initiatives, or donating a portion of sales to relevant causes can foster a sense of connection and show support for community well-being.
Additionally, retailers can educate customers about sustainable product options and innovations in the brewing industry. Eco-friendly brewing techniques, such as renewable energy or implementing closed-loop systems, can showcase commitment to innovation and sustainability. Providing information about the environmental benefits of specific products can empower customers to make informed choices.
Customers increasingly expect companies to demonstrate Corporate Social Responsibility (CSR) initiatives beyond their core business activities. Initiatives can include employee volunteer programs, contributions to environmental conservation projects, or efforts to promote diversity and inclusion. Sharing stories and achievements related to CSR humanise the brand and resonate with customers on a personal level.
Ultimately, building trust and loyalty through transparent and meaningful sustainability messaging can drive customer satisfaction and long-term success.
