Supply Chain Csr Initiatives Group Presentation 4

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MBA Team project, recommendation to a California Wine Manufacturer for CSR initiatives

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  • Objective / OverviewWe are consultants to a medium sized wine maker in Southern California. In order to increase their profitability and allow them to gain a competitive advantage through the use of CSR initiatives, we are recommending a new line of wines that serve a market that they have not traditionally served; specifically, a more mature, affluent segment of the population that is concerned with health and social issues, such as the environment. In addition, we will incorporate related CSR initiatives to support supply chain sustainability.Due to a trend toward health and the environment in general, but also in the ever increasing wine industry, our recommendations will focus on 4 key initiatives that will allow our client to gain market share and increase their profitability, while at the same time supporting the community and environment from an economic and environmentally sustainable perspective.Our recommendations will be primarily related to the supply chain as follows:Biodynamic® certified grapes in the production process Re-use of byproducts –Energy, grape skins, sell for biofuel…The use of environmentally friendly packagingPublic education to increase awareness of CSR efforts and to attract a diverse skilled workforce.
  • The wine industryFrom Wines and Vines – Wine Industry Headlines – 12/6/2010…Regarding the Biodynamic® trends…Demeter marketing director Elizabeth Candelario says…“…worldwide there are now 360 certified vineyards and/or wineries, with a total 20,000 certified vineyard acres. Of the major wine producing countries, France leads the list with 138 certified operations that include Burgundy's acclaimed Domaine de la Romanée-Conti. The United States is second with 70 certified operations. As an indication of increasing interest in Biodynamic farming, Demeter USA's winery and vineyard members increased from 5 to 60 between 2005 and 2009, and as many as 20 new growers and wineries were expected to be added during 2010. Noting that wine is one of the higher-profile Biodynamic products in the marketplace, Candelario said, "I think history will show that one of the wine industry's gifts to society will be the introduction of Biodynamic products to the consumer market.“
  • One of the main reasons for CFLs to be used instead of traditional light bulbs is that mercury is contained in those bulbs. Mercury is one of the least eco-friendly substances. The Lighting Source Group is more committed to LED lighting than any other organization in the world. “Each street lighting fixture converted from an incandescent, fluorescent or halogen process to low power consuming LSG products results in the savings of 1 barrel of oil, and ½ ton less of CO2 placed into the atmosphere every year. Plus LED based commercial lighting uses 50% less electricity.”The Green Conference was created in order to give the officials in attendance a better understanding of how the effects of their actions and the well-being of society are linked. The focus was on the things that must be changed or the system as we know it now will fail.
  • It's hard to get an accurate picture of just how many wine producers are grown or using grapes grown using biodynamics, but worldwide, there are a lot of them. This method of cultivation is rapidly catching on among wine producers—so the list is growing rapidly. As one wine expert stated “If it wasn’t working, this approach would not remain and continue to grow” While outcomes are difficult to measure, those wineries that have chosen this method claim to have better tasting and higher quality wines while allowing them to be good corporate citizens through more sustainable practices.
  • Run a farm where all organic farming is done, supplies the vegetables and meat to their restaurantUse the used wheat in making bread and food for the farm animals used in their restaurant
  • Procurement – Purchase of Biodynamically grown grapes. This helps the environment and decreases health risks of consumers.Operations – Use of Biodynamically grown grapes, as well as the re-use of our byproducts both have a positive impact on the environment and on consumer health.Outbound Logistics – Use of Eco friendly, biodegradable, packaging is good for the environment. Marketing & Sales - Increased awareness of our products and the social and environmental benefits will help consumers drive change in this industry.
  • In addition, strategy will be affected through the following Outside-In linkages:Local Demand Conditions– As public awareness and current trends continue, demand will increase for our products. This demand will be driven by an increasingly affluent, social, environmental and health conscious demographic. In addition, we may be ahead of the curve as new regulations are imposed on the use of chemicals, disposal of byproducts, and packaging.Related and Supporting Industries – Because of the trend toward Biodynamics, there are a growing number of certified suppliers. While suppliers must meet certification requirements, the quality of suppliers could have an impact on the quality of the wine produced. The same thing is true for suppliers of packaging materials and those industries where our byproducts are sold.Factor (Input) Conditions– We will look to well known sources for input into advancements in all areas of these initiatives, including current experts and universities with knowledge of biodynamics, packaging, uses for byproducts.Context for Firm Strategy and Rivalry- Our initiatives will help us to remain competitive and to gain a competitive advantage in an industry where understanding and reacting to the social, environmental, and health concerns of our customers is vital.
  • McKinsey 7S frameworkStrategy – The initiatives that we propose are in line with our clients strategy, which is similar to the 2 wineries chosen for comparison. We wish to be a leader in corporate citizenship in the wine industry as we continue to strive to meet the demanding needs of the consumer, while adding to the bottom line.Structure – We do not foresee any changes to our clients structure to support these initiatives.Systems – Our clients current processes do not currently include the procurement of biodynamically grown grapes, the re-use of byproducts, and the use of biodegradable packaging. These will all be areas of change for our client but none of which should overshadow the benefits associated with the initiatives.Style/Culture – Our client has been a producer of traditional, non-organic wines in the past and focused on profits only. Management has had little concern for CSR. It will be vital that with these new initiatives, the culture begin to change to a more CSR based mentality where an emphasis is based on the triple bottom line.Staff – The staff involved in these new initiatives will need to become more aware of the CSR initiatives and be expected to understand and support them as a way of life. This new mentality will create a culture and shared value system that enables the wine maker not only survive, but thrive in the midst of a highly competitive environment. Training and awareness of our initiatives will be provided. Skills – Obviously, there are skills associated with the implementation of these new initiatives, specifically with regards to biodynamic viticulture, eco friendly packaging, and re-use of byproducts. These skills will need to be taught to our employees or we may supplement the workforce with skilled labor at other growers or winemakers.Shared Values – All members of the organization must embody the principles of these initiatives that are driven not only by profit, but by a true sense of corporate citizenship and pride in doing it right. Leadership must begin to emphasize corporate citizenship and the importance of these initiatives. This process may be helped along by bringing in industry experts knowledgeable and passionately connected to the areas affected by these initiatives. They can act as “cheerleaders” to enable and drive change from the top down.
  • To many of us, this increasingly popular form of winegrowing is a bit strange. As with organic wine, there are no herbicides, no pesticides and no inorganic fertilizers. In addition, a range of special preparations are used, and then either sprayed on the vines or added to the compost heaps that are an important aspect of this way of farming. These solutions are ‘dynamized’ by stirring in a particular way. These preparations are applied according to the biodynamic calendar. The same calendar tells when certain jobs in the vineyard and winery are carried out. There’s a bit more to biodynamic than a few sprays and organics: it’s a philosophical system that growers tend to embrace, and which then guides all their practice. I suppose the fundamental principle is for farmers to work in a way that is sensitive to the forces of life, and that encourages a healthy, living soil.
  • Chemical fertilizers and pesticides are being used to grow most grapes used in the wine industry. These are harmful to the environment, the vineyards, and to health of the consumers of the wine. Consumers are becoming more aware of health issues. New management is very socially responsible and they feel strongly that good corporate citizenship goes hand in hand with good business. They are committed to CSR. Want to become a leader in sustainability in the wine industry and feel that they are currently behind other wineries in this area. Existing wines are grown with the traditional methods, using chemical fertilizers and pesticides. Profits have remained flat over recent years. Want to supplement existing product line with exciting new products. These consumers are affluent, concerned with the preserving the environment, and are health conscious.
  • Biodynamic winemakers claim to have noted stronger, clearer, more vibrant tastes, as well as wines that remain drinkable longer. Biodynamic wines are more "floral", according to Spanish biodynamic vintner Perez Palacios.[8] Biodynamic producers also note that their methods tend to result in better balance in growth, where the sugar production in the grapes coincides with physiological ripeness, resulting in a wine with the correct balance of flavor and alcohol content, even with changing climate conditions.[9]In a blind tasting of 10 pairs of biodynamic and conventionally-made wines, conducted by Fortune and judged by seven wine experts including a Master of Wine and head sommeliers, nine of the biodynamic wines were judged superior to their conventional counterpart.[10] The biodynamic wines "were found to have better expressions of terroir, the way in which a wine can represent its specific place of origin in its aroma, flavor, and texture."[11] Critics caution that such comparisons of wines of the same type need to be controlled for differences in soil and subsoil, and the farming and processing techniques used.[12-- Wikipedia
  • “Winemakers can also obtain “biodynamic” certification through Demeter, a nonprofit that has trademarked the term. Biodynamic wines must satisfy the same requirements as wines made with organic grapes. Unlike the “organic” label, however, biodynamic certification is not backed by the federal government. Demeter also imposes a variety of other standards. Biodynamic winemakers must use natural pest controls, such as ladybugs, and must supply a certain amount of their fertilizer from within the farm itself. The idea is to make the vineyard a biologically active, self-sustaining operation. Biodynamic wines may contain sulfites, but not synthetic clarifiers.” -- The Washington Post – The Environmental Impact of the wine we drinkMarch 28, 2011
  • We will market our new line of wines extensively in various consumer and trade journals, at tastings, and industry events.We will promote biodynamics through public awareness and education.We will track sales of our wines compared to non-biodynamic wines and expect to see a corresponding shift to these wines as preference continues to follow demographic trends.We expect the long term impact to be toward an emphasis on this type of viticulture and corresponding increases in biodynamically grown wine.We will expand our biodynamically produced product lines over time.
  • Invented by Dr. Eric Lieber in 2000, the pellet mixture is currently being used by FruitSmart to replace propane needed for their fruit drying processes. Dr. Lieber discovered that the energy pellets have a high energy biomass, he believes this is due to the oils contained in the seeds; the high energy biomass means it burns hotter than most other products.Grape Pomace is the debris containing the seeds, skins and pulp left over from the wine and juice industry.One statistic from the Australia: *Waste in terms of grape marc for example represents one tonne in every fresh 8 tonnes that come into the winery so for an industry that’s handling something like 1.6 million tonnes a year, that's 200,000 tonnes of waste.* Hansen, Melissa. (2007). From Pomace to Pellets. Good Fruit Grower. April 1, 2007. Retrieved on April 13, 2011 from http://www.goodfruit.com/Good-Fruit-Grower/April-1st-2007/From-pomace-to-pellets/.
  • Dr. Lieber also discovered that high quality grape oils can be made from the grape seeds left after wine/juice production.Different types of grape varieties yield their own unique flavors of oil. One article mentioned that on average grape oil sells for $48 per bottle in the U.S.Flour from grape pomace is purple tinged, but better for you.Hansen, Melissa. (2007). From Pomace to Pellets. Good Fruit Grower. April 1, 2007. Retrieved on April 13, 2011 from http://www.goodfruit.com/Good-Fruit-Grower/April-1st-2007/From-pomace-to-pellets/.
  • Vitaminstuff.com. (2011). Grapeseed Extract. The Herbs Section. Retrieved April 15, 2011 from http://www.vitaminstuff.com/herbs-grapeseed-extract.html.Arvanitoyannis, I., Ladas, D. & Mavromatis, A. (2006). Potential Uses and Applications of Treated Wine Waste: a Review. International Journal of Food Science and Technology. 41. PP. 475-487. Retrieved on April 12, 2011 from http://depa.fquim.unam.mx/amyd/archivero/Potential_uses_and_applications_of_treated_wine_waste_7296.pdf.
  • Arvanitoyannis, I., Ladas, D. & Mavromatis, A. (2006). Potential Uses and Applications of Treated Wine Waste: a Review. International Journal of Food Science and Technology. 41. PP. 475-487. Retrieved on April 12, 2011 from http://depa.fquim.unam.mx/amyd/archivero/Potential_uses_and_applications_of_treated_wine_waste_7296.pdf.5minmedia. (2011). Turning Grape Waste into Organic Compost. Daily Motion. video. Retrieved on April 13, 2011 from http://www.dailymotion.com/video/xevdf7_turning-grape-waste-into-organic-co_tech.
  • Sludge ponds located near vineyard. Usually has sludge build-up that needs to be dredged periodically, which is a costly process. Many vineyards have been fined for leakage into the water system.Treatment converts the organic material into hydrogen. Demo system converts 1,000 liters of wastewater each day. Cleaned water is safe to be used to irrigate vineyards. Hydrogen captured from the system can be used to power vehicles and equipment.WaterWorld.com. (2011). Winery Benefits from Green Reclamation Technology. Retrieved on April 15, 2011 from http://www.waterworld.com/index/display/article-display/articles/industrial-waterworld/2010/issue-4/feature-editorial/winery-benefits_from.html.US News and World Report. (2009). Renewable Hydrogen Production Becomes Reality at Winery. October 6, 2009. Science. Retrieved on April 15, 2011 from http://www.usnews.com/science/articles/2009/10/06/renewable-hydrogen-production-becomes-reality-at-winery.
  • GreatLakesBrewing.com. (2011). Sustainability – Other Sustainability Projects. Retrieved April 15, 2011 from http://www.greatlakesbrewing.com/sustainability/other-sustainability-projects.Shortmountaindistillery.com. (2010). Integrating a Distillery into Sustainable Permaculture. Retrieved April 15, 2011 from http://www.shortmountaindistillery.com/page/2/.Innovation Center for U.S. Dairy. (2010). Sustainability in Practice. Aurora Organic Dairy. Retrieved April 10, 2011 from http://www.usdairy.com/Sustainability/Commitment/SustainabilityInPractice/index.html.
  • Corn or sugar cane is broken down and pressurized into a “fabric” that can be molded.PLA plastic is so safe for the human body that it is being used in biomedical applications including sutures and stents. Because natural, renewable products are used to manufacture PLA plastic they require less energy to break down the raw material, it produces less waste that is less harmful than petroleum plastic.Chinese Wine & Sake producers have been using PLA plastic bottles for a few years. Plastic wine bottles have been catching on in the U.K. and even France, but only a handful of Wine producers are using the PLA – we need to educate the public on the benefits of PLA so it can be a competitive advantage.PLA Plastic can be recycled much like other plastics, but if not recycled will break down over time, much quicker than other plastics. PLA bottles are not a low cost option - because of the manufacturing process they are more expensive than petroleum based plastics, but cost studies have shown PLA plastic bottles are comparable in price to glass (information supporting this found on several sites, but figures not available). When given the environmental impact of the PLA plastic it is a good fit for our target consumer.
  • An important initiative is education and promotion of biodynamic and sustainable farming techniques. Part of our proposition is to set up a series of National and local/regional initiatives and partnerships that will help to accomplish these goals.
  • National:-Publications: Partner with Wine Spectator magazine, and/or other magazines to build a “biodynamic wine” course.http://www.winespectator.com/learnwine-Media: Partner with Food Network to introduce a Biodynamic wine portfolio, similar to the WenteVinyards deal. Thishttp://www.thefoodnetworkwine.com/
  • Local:-School Education: Field trips for students K-12 to tour the farm, hayrides and biodynamic education for field studies/science classhttp://frogbellyfarm.com/#/education/school-programs-Adult education: Biodynamic classes for adults-Wine Tastings-Partner with local media outlets to advertise wine tastings-Create Fall/Spring/Summer festival concepts-Partner and educate local suppliers to ensure the supply chain follows Biodynamic and sustainable practices.Classes:http://growbd.org/pages/biodynamic-workshops-in-ecuadorhttp://www.biodynamics.com/internship.htmlhttp://www.ediblecommunities.com/louisville/2011-03-26/biodynamic-workshop-3-class-series-at-foxhollow-farm.htmNGO to promote sustainable farming and growth in the regionhttp://attra.ncat.org/attra-pub/sustainable_ag/http://www.nal.usda.gov/afsic/pubs/agnic/susagorgs.shtml
  • Local:-School Education: Field trips for students K-12 to tour the farm, hayrides and biodynamic education for field studies/science classhttp://frogbellyfarm.com/#/education/school-programs-Adult education: Biodynamic classes for adults-Wine Tastings-Partner with local media outlets to advertise wine tastings-Create Fall/Spring/Summer festival concepts-Partner and educate local suppliers to ensure the supply chain follows Biodynamic and sustainable practices.Classes:http://growbd.org/pages/biodynamic-workshops-in-ecuadorhttp://www.biodynamics.com/internship.htmlhttp://www.ediblecommunities.com/louisville/2011-03-26/biodynamic-workshop-3-class-series-at-foxhollow-farm.htmNGO to promote sustainable farming and growth in the regionhttp://attra.ncat.org/attra-pub/sustainable_ag/http://www.nal.usda.gov/afsic/pubs/agnic/susagorgs.shtml
  • Our approach to making the CSR process repeatable is relatively simple. It includes documenting the process from end to end, then conducting a number of optimization efforts, including internal and external influences. Ultimately, in order for a process to be repeatable there must be some sort of order, mandate or organizational understanding that a process must be followed.
  • Supply Chain Csr Initiatives Group Presentation 4

    1. 1. Supply Chain CSR Initiatives – Wine Industry<br />Consultants: Timothy Barba, Joseph Fidago, Kim Finney, Doug Keeley, Justin Smith<br />1<br />
    2. 2. Description of Industry<br />Section One<br />120<br />70<br />50<br />2<br />
    3. 3. Background<br />Consultants to Small / Medium sized Winery in Southern, California<br />Leverage trend towards affluent, health, environmental, social demographic <br />Emphasis on Sustainability by:<br /><ul><li>Use of biodynamic grapes
    4. 4. Re-use of byproducts
    5. 5. Eco-friendly packaging
    6. 6. Public education/awareness</li></ul>3<br />
    7. 7. Current Status of the Industry<br />How is the wine industry doing lately?<br />4<br />
    8. 8. Industry Snapshot<br />Worldwide there are now 360 certified vineyards and/or wineries, with a total 20,000 certified vineyard acres. <br />Of the major wine producing countries, France leads the list with 138 certified operations that include Burgundy's acclaimed Domaine de la Romanée-Conti. <br />The United States is second with 70 certified operations. <br />As an indication of increasing interest in Biodynamic farming, Demeter USA’s winery and vineyard members increased from 5 to 60 between 2005 and 2009, and as many as 20 new growers and wineries were expected to be added during 2010. <br />Wine is one of the higher-profile Biodynamic products in the marketplace.<br />5<br />
    9. 9. Future of the Industry<br />There is an increased awareness of the environmental and health aspects of business in society in general. <br />One example is the use of CFLs (Compact Fluorescent Lights).<br />CFLs put out equal or greater light, use 1/3 of the electricity, and last over 10 times longer than a normal bulb.<br />As referenced by the fact that there was a Green Sustainability Conference in Buffalo back in 2001, this has been on people’s radars for quite some time. <br />We will address this increased awareness through these new CSR initiatives.<br />6<br />
    10. 10. Profiles of Companies Selected for Case Studies<br />Section Two<br />7<br />
    11. 11. Wineries already using Biodynamic<br />Established in Sonoma, CA ~30 years ago.<br />Family owned business that switched to Biodynamic wine making in the mid 90’s.<br />Their entire portfolio of wines is certified sustainable, organic or biodynamic.<br />Want to be known as the “green winery”. “Great wine has green value”.<br />8<br />
    12. 12. Wineries already using Biodynamic<br />Family owned and run.<br />Mission is to craft small lots of wines from organic and biodynamic grapes using the best of old and new world winemaking techniques.<br />Premium “boutique” winery with a case production of 8,000 annually.<br />Located in Nice, CA, near Clear Lake and Napa Valley<br />9<br />
    13. 13. Other Industries – Great Lakes Brewery<br />Started by two brothers in September 6, 1988<br />Mission: focused on “environmentally respectful and socially conscious” as well as high-quality beer, service, continuous improvement and education to consumers.<br />Currently brews over 100,000 barrels a day<br />Located in Cleveland, Ohio<br />10<br />
    14. 14. Other Industries – Tennessee Short Mountain Distillery<br />First distillery in Tennessee, referendum passed November 2010<br />Construction began March 2011<br />Family owned and funded<br />Roots in moonshine<br />Wheat from first farm in Cannon County to be organically certified<br />Mission is to provide sustainability to the community and local farmers as well as the environment<br />11<br />
    15. 15. Other Industries – Aurora Organic Dairy<br />Located in Boulder, Colorado<br />Founded in 2003<br />Produces/markets private label and store-brand organic milk and butter<br />One of the principles is the comfort and humane treatment of the animals on their farms<br />12<br />
    16. 16. Development and Implementation of CSR Practices<br />Section Three<br />13<br />
    17. 17. Stakeholders<br />Consumers (health/taste)<br />Growers (economic)<br />Employees (employment/health)<br />Company owners/stockholders<br />Local communities (economy/environment)<br />Local government (tax revenue)<br />14<br />
    18. 18. The Business Case – Business Matrix<br />15<br />
    19. 19. The Business Case (Inside-Out)<br />Procurement<br />Operations<br />Outbound Logistics<br />Marketing and Sales<br />16<br />
    20. 20. The Business Case (Outside-In)<br />Local Demand Conditions<br />Related and Supporting Industries<br />Factor and Input Decisions<br />Context for Firm rivalry and strategy<br />17<br />
    21. 21. McKinsey 7s Framework<br />18<br />
    22. 22. Biodynamic® – What is it?<br />“A type of organic farming that incorporates an understanding of “dynamic” forces of nature not yet fully understood by science” – Biodynamic Farming and Gardening Association<br />“It’s the oldest ‘organic’ agriculture dating from 1924 - came about when a group of central European farmers felt that the industrialization of agriculture had rendered their soils less healthy, their seeds less fertile, their crops less nourishing and their own health less certain” – Monty Waldin Biodynamic expert <br />19<br />
    23. 23. Why Biodynamic?<br />Traditional production involves use of chemical fertilizers and pesticides<br />Greater corporate awareness of own social responsibility<br />Raised public awareness of environmental and health concerns<br />Desire to become market leader in sustainable production of wine<br />Increases competitiveness versus others engaged in this same movement<br />Sustainability<br />Health<br />Bottom line<br />Environment<br />20<br />
    24. 24. Quality and Taste<br />In addition to the environmental and health benefits from this initiative, there is evidence that this method of viticulture produces better tasting wines which will lead increased profits.<br />21<br />
    25. 25. How will we incorporate Biodynamic® into our business?<br />We will partner with local growers that are - or will become - Biodynamic® certified to supply our grapes.<br />22<br />
    26. 26. Sustainability Gameplan<br />Produce<br />Market<br />Sell<br />Monitor<br />Expand <br />23<br />
    27. 27. From Grape waste to Biofuel<br />What can be done with the mountains of waste produced by the wine and juice industry?<br />Use it to make Biofuel!!<br /><ul><li>Grape Pomace can be made into a pellet blend after oils and nutraceuticals have been removed.
    28. 28. With Glycerin added it has the same attributes as straw or wood without the air quality concerns.
    29. 29. Run the pellets through a gasifier and it can be turned into combustible gas which can be sold as renewable energy to power companies.
    30. 30. After gasification the charcoal pellets can be used as reusable filters as good as other filtering methods on the market.
    31. 31. Biggest possible use is in home heating to replace wood used in pellet-burning stoves.</li></ul>24<br />
    32. 32. From Grape waste to Gourmet Oil<br />Grape seeds can be cold-pressed into Merlot or Chardonnay oils<br />The added benefit – its good for your health - it contains:<br /> - polyunsaturated fatty acids (omegas 3, 6, and 9)<br /> - antioxidants<br /> - phytochemical<br />Unlike olive oil, grape oil takes a high heat during cooking<br />More than a ton of grapes is needed to produce just one gallon of grape seed oil.<br />Flour from grape seed, milled from dried grape pomace (bread with high antioxidants)<br />5% of the net revenues from sales of grape oils are being contributed to scholarships at Heritage University where Lieber previously taught.<br />25<br />
    33. 33. Grape Seeds and Youth<br />Scientists studying grape seed extract found that it was beneficial in the treatment of symptoms of:<br />Free radical damage and poor circulation<br />Chronic Venous Insufficiency (CVS)<br />Varicose Veins<br />Macular Degeneration<br />Diabetic retinopathy<br />Grape seed extract applied topically acts as a natural Alpha-Hydroxy Acid which improves skin tone and reduces wrinkles thus it is used in many cosmetic lotions<br />High concentrations of antioxidants found in grape seeds were found to be better than synthetic - making it a good choice for vitamins.<br />26<br />
    34. 34. Grape waste to Fertilizer<br />Waste has the ability to become compost:<br />The ground up waste (seeds, stalks, skin and pulp) sits for three months and is then reground to make compost<br />Can be used to fertilize vineyards or bagged and sold<br />Mixed with water it is turned into liquid fertilizer<br />27<br />
    35. 35. Wine Wastewater to Renewable Hydrogen Production<br />Wastewater comes from cleaning equipment, grape disposal, wine making and other processes.<br />Typical way of treating wastewater from wine production:<br />Sludge ponds (sludge build-up will occur)<br />Strong odor<br />Possibility of EPA fines <br />New Treatments:<br />Use of electrolysis combined with special microbes<br />Penn State Environmental Engineer’s system (tested at Napa Wine Company vineyard)<br />Wastewater is converted and cleaned<br />Cleaned water is safe to use to irrigate vineyard<br />Hydrogen is captured<br />28<br />
    36. 36. Uses for waste in other Industries<br />Great Lakes Brewery<br />Beer delivery truck runs on straight vegetable oil, reclaimed and filtered restaurant oil<br />Spent brewery grain used to feed local farmers livestock, also used to make beer bread and pretzels, also used as compost for fertilizer<br />Tennessee Short Mountain Distillery<br />Used grain is feed to livestock, manure is composted with other organic material and used to fertilize the fields<br />Aurora Organic Dairy<br />Dry-vac manure replaces water flush (saves 400,000 gal. of water per year)<br />Milk parlor wash water (100%) recycled for crop and pasture irrigation<br />Compost used to improve soil and fertilize crops<br />29<br />
    37. 37. Packaging - Overview<br />2 Options – both 100% Biodegradable<br />PLA plastic wine bottles (750ml)<br />Wine box from Landaal (5 liter)<br />Reduced waste <br />Reduced energy consumption in production<br />No added cost compared to glass bottles<br />30<br />
    38. 38. Packaging – PLA Plastic Bottle<br />Comparable in price to glass bottles<br />Used in China by Wine/Sake producers for past few years <br />Poly Lactic Acid (PLA) <br />Made from compressed corn starch or sugar cane<br />Compressed into “fabric” that can be formed<br />100% Biodegradable, but can also be recycled<br />Compared to Petroleum based plastics <br />Requires less energy to produce<br />Emits less greenhouse gasses<br />Less and less hazardous waste from manufacturing <br />Sustainable - produced from a renewable resource<br />31<br />
    39. 39. Packaging – Value Chain<br />Impact (compared to other packaging options)<br />Inbound Logistics – renewable resources - no shortage of raw material<br />Operations – less waste, standard bottling equipment can be used (cost savings)<br />Marketing/sales – no additional cost for consumers, green initiative<br />Outbound logistics – sturdier packaging leads to less breakage in transit<br />After Sales Service – packaging can be recycled or 100% biodegradable<br />Procurement – multiple suppliers<br />Technology Development – evolving & decreasing cost<br />32<br />
    40. 40. Packaging – Social Impact<br />Inside – out<br />Supported by the value chain initiatives<br />Cost effective draws interest from non target consumers<br />Outside – in<br />green packaging benefits environment<br />fits target consumer <br />33<br />
    41. 41. Public Awareness & Education<br />National:<br />Partner with Publications <br />Publicize a wine portfolio<br />Local:<br />Education for children & Adults<br />Wine Tastings (festivals, etc.)<br />Suppliers<br />34<br />
    42. 42. National Public Awareness & Education<br />Publications: Create Biodynamic wine course W/publication<br />Creates a credible branded training program<br />Creates national awareness & interest in a new wine segment. Provides instant credibility to the biodynamic wine making. <br />Media: Food Network Biodynamic wine portfolio <br />Similar to the WenteVineyards deal<br />Establish credibility, generate exposure<br />National exposure, credibility & increased mindshare.<br />35<br />
    43. 43. Local Public Awareness & Education<br />School Education: Student field trips<br />Provides local students hands on biodynamic education<br />Benefit: Create sustainability awareness & seasonal job interest<br />Adult education: Biodynamic classes for adults<br />Provide adult geared education about BD farming best practices.<br />Benefit: Create sustainability awareness as well as interest in biodynamic farming. Attract potential employees .<br />36<br />
    44. 44. Local Public Awareness & Education, Cont.<br />Wine Tastings:<br />Partner with local media outlets to advertise wine tastings<br />Create Fall/Spring/Summer festival concepts<br />Create local biodynamic winery awareness. <br />Benefit: Marketing + education + biodynamic winery exposure.<br />Partnerships: <br />Suppliers<br />Create a educated and sustainable supply chain.<br />Benefit: Sustainable and biodynamic practices are adopted<br /> throughout the supply chain.<br />Local agriculture universities/colleges<br />Continuing education in sustainability and farming<br />Benefit: Educated work force<br />37<br />
    45. 45. Public Awareness & Education – Social Impact<br />Inside – out<br />Supports industry segment & job growth<br />Promotes sustainability education<br />Positive long term impact on environment<br />Outside – in<br />Increased demand for products<br />Brand recognition & brand sustainability<br />38<br />
    46. 46. Recommendations for replication of CSR practices<br />Section Four<br />39<br />
    47. 47. Recommendations for replication of CSR practices<br />Document current process, roles and responsibilities<br />Conduct internal lesson's learned review's frequently <br />Participate in regular CSR training and review against current process and update with best practices. <br />Conduct annual benchmarking with recognized leaders in the industry or cross industry's. Review against current process and update with best practices. <br />Update documentation and revision history.<br />40<br />
    48. 48. Thank You!<br />41<br />
    49. 49. References<br />www.wikipedia.com<br />www.thewineorak.com<br />www.biodynamics.com<br />www.benizer.com<br />www.ceago.com<br />www.winesandvines.com<br />http://en.wikipedia.org/wiki/Bioplastics<br />http://www.sustainableisgood.com/blog/biodegradable/page/4/<br />www.decanter.com<br />http://www.theplanetbottle.net/<br />The Washington Post – March 28th -The Environmental Impact of the wine we drink<br />5minmedia. (2011). Turning Grape Waste into Organic Compost. Daily Motion. video. Retrieved on April 13, 2011 from http://www.dailymotion.com/video/xevdf7_turning-grape-waste-into-organic-co_tech.<br />42<br />
    50. 50. References continued<br />Arvanitoyannis, I., Ladas, D. & Mavromatis, A. (2006). Potential Uses and Applications of Treated Wine Waste: a Review. International Journal of Food Science and <br />Technology. 41. PP. 475-487. Retrieved on April 12, 2011 from <br />http://depa.fquim.unam.mx/amyd/archivero/Potential_uses_and_applications_of_treated_wine_waste_7296.pdf.<br />GreatLakesBrewing.com. (2011). Sustainability – Other Sustainability Projects. Retrieved April 15, 2011 from http://www.greatlakesbrewing.com/sustainability/other-sustainability-projects.<br />Hansen, Melissa. (2007). From Pomace to Pellets. Good Fruit Grower. April 1, 2007. <br />Retrieved on April 13, 2011 from <br />http://www.goodfruit.com/Good-Fruit-Grower/April-1st-2007/From-pomace-to-pellets/.<br />43<br />
    51. 51. References continued<br />Innovation Center for U.S. Dairy. (2010). Sustainability in Practice. Aurora Organic Dairy. Retrieved April 10, 2011 from http://www.usdairy.com/Sustainability/Commitment/SustainabilityInPractice/index.html.<br />Shortmountaindistillery.com. (2010). Integrating a Distillery into Sustainable Permaculture. Retrieved April 15, 2011 from http://www.shortmountaindistillery.com/page/2/.<br />US News and World Report. (2009). Renewable Hydrogen Production Becomes Reality at Winery. October 6, 2009. Science. Retrieved on April 15, 2011 from http://www.usnews.com/science/articles/2009/10/06/renewable-hydrogen-production-becomes-reality-at-winery.<br />44<br />
    52. 52. References continued<br />Vitaminstuff.com. (2011). Grapeseed Extract. The Herbs Section. Retrieved April 15, 2011 from http://www.vitaminstuff.com/herbs-grapeseed-extract.html.<br />WaterWorld.com. (2011). Winery Benefits from Green Reclamation Technology. Retrieved on April 15, 2011 from http://www.waterworld.com/index/display/article-display/articles/industrial-waterworld/2010/issue-4/feature-editorial/winery-benefits_from.html.<br />GlobalWarming.com. (2010). A Brighter Tomorrow Using LED Lighting. http://globalwarming.com/2010/05/a-brighter-tomorrow-using-led-lighting/<br />Seeking Solutions to Environmental Concerns. (2001). http://www.bizjournals.com/buffalo/stories/2001/10/01/focus3.html<br />45<br />

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