The document discusses sustainability practices in the brewery industry. It notes that breweries are energy intensive and large water users, so have worked to reduce their environmental impact. In the US, early breweries were often polluters but craft breweries emerging in the 1990s took a more sustainable approach. Top sustainable practices for US breweries now include energy efficiency upgrades, renewable energy use, water conservation like recycling wastewater, and reducing solid waste. New Belgium is highlighted as one of the most sustainable for its holistic approach including near zero-waste diversion and water use reduction. Yards Brewing in Pennsylvania is also praised for being wind-powered, using sustainable packaging and composting.

1. SUSTAINABILITY IN
BREWERIES
SDCS Term Report
Section D
Group 11
Swadesh Das UM15243
Tapasi Palo UM15244
Vivek Jain UM15245
Yash Patadia UM15246
Saurabh Ganguly UM15247
Aastha Bhatia UM15248

2. Contents
Introduction ........................................................................................................................................... 2
Overview: ............................................................................................................................................... 2
Industry Structure in India: ................................................................................................................ 2
Domestic Outlook ............................................................................................................................... 2
Global Outlook ................................................................................................................................... 3
Sustainable practices followed by the industry in US ............................................................................ 3
Sustainability in the brewery business: India ......................................................................................... 6
Top 10 Sustainable Indian Breweries ............................................................................................ 6
Conclusion .............................................................................................................................................. 9

3. Introduction
The brewing industry is energy intensive and uses a large amount of water for its production.
As it is an energy intensive industry large amount fuel consumption takes place during
mashing and wort boiling process this lead to greenhouse gas emission from the breweries.
The price of fossil fuel is increasing day by day and its use is in turn increasing operational
expenditure of the company. Use of cleaner production is recommended for the brewery
industry which would reduce its consumption and emission. Apart from this for every litre of
beer produced with best of technologies would require four litres of water, older technologies
might easily require double or even three times the water required by the newer technologies
and a large amount of this water is discharged to drain. As water is scarce resource companies
should judiciously use water by employing new processes and technology. Efficient use of
water would not only benefit the society as whole but would also reduce the cost incurred by
the company. As the government are coming up with stricter norms, it becomes inevitable
for the industry to become sustainable by adopting to newer technologies which are energy
efficient, reduce the water consumption. This can be achieved by redesigning the process,
recovery of by-products or reuse of effluents. It becomes vital to protect and guard natural
ecosystems from polluted wastewaters. For such purpose, a wastewater treatment plant that
maximises removal efficiency and minimises investment and operation costs is a key factor
for achieving sustainability.
Overview:
Being the oldest consumed and brewed beverages in the world, the demand for beer is always
at peak. Beer is used as an alcoholic luxury beverage consumed globally by a large population.
Beer production has witnessed a swift growth over the past few years with production
reaching from 1.3 billion hectolitres to 1.93 billion hectolitres in 1998 and 2011 respectively.
The global beer market has significantly expanded over the last couple of years. With the rise
in luxury living, the demand for quality beer has also increased. As a result of this,
manufacturers have scaled the number of breweries and are focusing on enhancing the
manufacturing process. The increase in beer production is likely to increase the distribution
channels of beer in the market ultimately registering high sales in the coming years.
Industry Structure in India:
The oldest brewery in India was set up in 1830 by Edward Dyer in Kasauli. Today, with over
30% of the Indian population consuming alcohol led mostly by the UTs and southern States,
the industry boasts of being the third largest and fastest growing market for alcoholic
beverages with a US$5 billion market valued in beer alone growing at a CAGR of 7% over the
past 4 years. The major advantage enjoyed by Indian Brewers is that India is, by far a young
country. It has a majority of population in its youth which serves as a comfortable platform to
build markets for alcohol consumers between the ages 18 – 40 years. The Breweries and
distilleries industry is extremely customer sensitive with a highly elastic market, which means
they can use this parameter to their advantage.
Domestic Outlook
A growing resistance from the Federal and several State Governments on advertisement and
sale of liquors despite alcohol being a huge revenue creator, heavy taxation and a poor
distribution channel further deteriorated with certain cultural beliefs have set up a blockage
on further turnover as well as pricing rigidity which hampers profits. The dominant players of
this industry are United Breweries Ltd. and Radico Khaitan. The Indian Brewery industry has

4. reached its shakeout with United Breweries’ strong hold over 50% of the national market
share making it the third largest manufacturer of spirits in the world with exports in over 52
countries. Not far behind, Radico Khaitan with its large manufacturing capacity within India
and joint ventures in UK and Africa, makes a strong barrier against entry of potential domestic
manufacturers as well as foreign imports. Although provision of quality, consistency and
availability are the recognizable driving forces of these companies, they need to transcend
the basic characteristics of this industry and look out for better customer reach.
Global Outlook
In the beer segment, an average Indian drinker consumes about 1.7 litters of beer a year as
against 22 litters in Hong Kong, 37 in China and 74 in USA. This can be attributed to lower
capacity as well as unsuitable climatic conditions for beer consumption. The domestic
participants see minimal but rising competition from imported beers but enjoy heavy exports
of beer. Indian exports of whisky and rum in 2015 have reduced in comparison to 2014 unlike
vodka which has increased. Government restrictions through heavy VAT, import tariffs have
kept foreign liquor at bay. In the beer segment, foreign imports struggle to cross the 1% mark
of sales in India.
Sustainable practices followed by the industry in US
It’s no secret that the brewing industry as a whole has traditionally had a dismal ecological
track record. For decades’ big brewers, like big industries everywhere, followed the seemingly
inexorable path of brute-force production. Natural resources were seen to be boundless and
expendable, scale economies the Holy Grail, and pollution hardly an afterthought. Coors, for
example, has a long rap sheet of environmental violations. It illegally dumped industrial
solvents into Clear Creek from 1976 to 1989. The Sierra Club accused it of violating the Clean
Air and Clean Water Acts 240 times between 1986 and 1991. In 1991 the company, under
pressure from the EPA, paid a $700,000 fine for violating hazardous waste laws. Coors was
hardly alone among large-scale breweries in treating the ecosystem like a dumping ground—
all the while keeping the suds flowing and the bottom line firm.
Then something curious and hopeful happened. In the 1990s, small craft breweries began to
proliferate, and they began to do so in a more progressive atmosphere. In 1980, when the
only noteworthy craft brewer at work was Sierra Nevada Brewing, located in Chico, California,
there were only 89 craft breweries in the U.S. Today there are more than 2,400. This rapid
proliferation took place on the cusp of a fresh environmental moment. It was a time when
the children of an intellectual ecosystem framed by Rachel Carson were reaching the drinking
age and exercising consumer choice. And it was a time when buzz phrases such as “the
ecology of commerce” and “green capitalism” were beginning to infiltrate the corporate
playbook.
The majority of craft brewers are focused on making great beer and getting it out the door
while operating on shoestring budgets and limited staff, so sustainability often falls to the
bottom of the list. However, once a brewery realizes that if a little time is invested, utilities
savings are pretty abundant which end up paying for the time invested pretty quickly.
There are three ways that breweries are incorporating more sustainable practices when
brewing beer today - energy, water/wastewater and solid waste. Within each of these are
some pretty amazing projects. There is also work happening in the transportation sector, in

5. the supply chain (both agricultural supply chain and packaging supply chain), and community
involvement.
On the energy side, there are a lot of efficiency upgrades happening (lighting improvements,
heat recovery, more efficient brewing equipment, etc.); renewable energy from a variety of
technology types are going in all the time; there are a lot of risks around water throughout
the country.
In the west, water availability is of a concern while in areas like the Great Lakes region, water
quality is being threatened. This is driving a lot of efficiency improvements in the industry
through cleaning automation, chemistry adjustments, nozzles on hoses, meters on high use
areas, etc. Along with water use comes wastewater generation which is an increasing problem
as craft brewers grow and place a larger burden on their municipal systems. Brewers are now
putting more time and effort into treating wastewater onsite before discharging to the
municipal system while working on generating less wastewater to begin with.
When it comes to solid waste, there is a lot of focus on reducing waste before it occurs
through better purchasing habits and using more durable goods vs. disposable. Brewers are
also forming great partnerships within their communities to find other uses for a lot of their
discards and are recycling and composting the remainder of their solid waste.
A lot of things are fuelling these practices. A more educated and aware consumer is certainly
a driver. Consumers in general are starting to ask more questions about all of the products
they consume: how they were made and what is in them and beer is no exception to this. Cost
savings is another driver for a lot of breweries – by being more efficient with resources,
brewers are able to reduce operating expenses and reinvest those funds back into the
business. The realization that is needed to engage in these practices if company is to continue
as an industry is also a driver for some. If company don’t start protecting the environment, it
won’t have access to quality hops, barley and water in order to make our products.
With specific attention to sustainability, climate change stands to impact brewers of all sizes
in a big way. As the climate shifts, it is going to impact how and where hops and barley are
grown. If we can’t keep up with the shifting environment, prices are going to be driven up
and smaller brewers might not be able to afford the raw materials they need to make their
beer. Climate change also impacts water quality and availability which is not only a threat to
brewers but everyone.
Top 10 Sustainable U.S. Breweries
1. New Belgium Brewing
New Belgium is widely regarded as one of the most sustainable breweries in the nation. Taking
a holistic approach to sustainability, the Fort Collins, Colorado-based brewery uses science-based
metrics to track environmental performance. It is currently diverting 99.9 percent of its waste from
landfills and has reduced water use per barrel of beer to 3.5:1 (averages range from 6:1 to 10:1). The
company is also a partner in the Brewers for Clean Water campaign and has donated close to half a
million dollars to restore local waterways. The brewery also takes a “high-involvement”

6. approach when it comes to its community, hosting events and give-back initiatives to help support
the people that love its beer. The fact that it’s 100 percent employee-owned doesn’t hurt either.
2. Yards Brewing Co.
It is Pennsylvania’s first 100 percent wind-powered brewery; its cardboard packaging is
certified by the Sustainable Forestry Initiative; it sends its spent grain to farmers to use as
livestock feed; and it collects and reuses about 2 million gallons of water in the brewery
each year. In its tasting room, Yards composts all food scraps and uses recycled materials
wherever possible (the bar top, for example, was made from recycled bowling lanes). The
company also sponsors an event on Earth Day each year to raise awareness of the declining
honeybee population.
3. Brooklyn Brewery
Brooklyn Brewery was the first New York City Company to use 100 percent wind-generated
electricity. It also recycles all paper, plastic and bottles from the brewery and sends spent
grain to local farms to be used as animal feed.
The company also recycles its hot water and serves samples out of compostable cups at its
tasting room in Williamsburg. For more on sustainability at Brooklyn Brewery, check out our
exclusive video interview with COO Eric Ottaway.
4. Sierra Nevada Brewing Co.
During its growth from craft to mainstream, Sierra Nevada kept sustainability front and
centre. Back in 2013, the company revealed it saved more than $5 million by diverting
nearly 100 percent of its waste.
Its brewery in Chico, California also houses one of the largest privately-owned solar arrays in
the country. More than 10,000 panels produce 2 megawatts of power — enough to meet 20
percent of the brewery’s energy needs. The brewery sources another 20 percent of its
power from on-site hydrogen fuel cells. It also captures CO2 released during fermentation
and recycles it back into the brewery, as well as sending spent grain to local farms.
5. Full Sail Brewing
Full Sail Brewing had sustainability in mind from the start: When it began making beer back
in 1987, its brew houses were housed in old buildings that had fallen into disuse, with the
idea to repurpose them rather than tearing them down.
Located along the Columbia River in scenic Hood River, Oregon, it’s no wonder Full Sail was
so focused on sustainability — and the brewery kept it going for more than 20 years. While
average breweries consume 6 to 8 gallons of water per gallon of beer produced, Full
Sail reduced its consumption to 2.5 gallons. The brewery is also modified for efficiency to
cut energy use, and it sends surplus grains to local farms rather than tossing them in the
landfill.
6. Lakefront Brewery

7. Based in the proud beer town of Milwaukee, Lakefront Brewery was the first in the U.S. to produce a
certified organic beer. It also sends its spent mash to Growing Power, where it’s composted and
turned into organic fertilizer. Lakefront also reclaims heat energy from the brewing process to reuse
for the next batch of beer, along with a number of other sustainability initiatives.
7. Brewery Vivant
Based in Grand Rapids, Michigan, Brewery Vivant was the first LEED-certified microbrewery in the
U.S. It has also issued sustainability reports each year since its founding and packages its brews in
cans made from recycled aluminium.
With a focus on locally-sourced ingredients, 75 percent of Vivant’s purchases are from Michigan,
with 90 percent coming from within 250 miles of the brewery. The company also donated 11
percent of its profits to charitable causes last year, and pays all workers a living wage.
8. Alaskan Brewing Co.
Sustainability can be a big challenge in the frigid environment of Juneau, Alaska, but Alaskan Brewing
Co. makes it work. In 1998, it became the first craft brewery in the U.S. to install and operate a CO2
reclamation system. The system captures and cleans carbon dioxide (a natural by-product of the
brewing process) and uses it to package the beer and purge oxygen from holding tanks — saving
money and preventing more than 1 million pounds of CO2 from entering the atmosphere each year.
As noticed from this list, many breweries recycle their grains through local farms. But with no
livestock in Juneau, Alaskan Brewing had to devise another solution. The company has been drying
and shipping its grain to farmers in the Pacific Northwest for 20 years, but it took things a step
further in 2012 by developing a first-of-its-kind steam boiler fuelled entirely by spent grain. With the
new system, the brewery expects to reduce overall oil use by more than 65 percent.
9. Bison Organic Beers
“By choosing a six-pack of organic beer a week, you will convert about 1,700 to 1,800 square feet
from conventional to organic agriculture,” brew master Dan Del Grande of Bison Organic Beers.
If that’s not enough reason to have a sip, the Berkeley, California-based brewery also committed to
responsibly sourced packaging and 100 percent non-GMO ingredients.
10. Great Lakes Brewing Co.
Based in Cleveland, Ohio, Great Lakes Brewing Co. focuses on sustainable sourcing and innovation.
At its Pint Size Farm in Bath, Ohio, the company organically farms 16,000 square feet of vegetables,
herbs and flowers for use in its brewpub. What it can’t produce on the farm comes from local,
environmentally responsible farmers and vendors.
Great Lakes also sends spent grain back to farmers for use as livestock feed; some is also recovered
to produce the cracked barley beer bread and pretzels served at its brewpub. The brewpub also
features 12 solar thermal panels and an energy-efficient boiler that heats water for brewing and
restaurant use.
Sustainability in the brewery business: India
Top 06 Sustainable Indian Breweries

8. 1. United Breweries Group
Their sustainability agenda is focused on themes – Social Contract, Resource Intensity and
Green Innovation. Key Responsibility Areas (KRAs) of key managers are geared towards
improving sustainable initiatives like carbon footprint, waste management, reduction in
water consumption, etc
UBL publishes its Business Responsibility/CSR activities/performance in its quarterly in-house
periodical viz., ‘Beer Update’ and also publishes its brief activities on CSR as a part of Report
of the Directors in its Annual Report. An electronic version of this Report is uploaded in the
official website of the Company.
2. Mysore Breweries (SABMiller)
3. Shaw Wallace (SABMiller)
In November 2009, SABMiller, WWF and GIZ initiated the Water Futures Partnership to create
mechanisms for companies to engage in local collective action to help address shared water risks
facing businesses, communities and ecosystems.
The Ground Water Management initiative, spread over an selective target area of about 27,500
hectares, is located in Neemrana, District of Alwar, Rajasthan, an industrial town located between
Delhi and Jaipur.
truck owners and drivers form an important part of our business. To support the education of their
children, Project Shiksha was launched in April 2012 at our breweries in Aurangabad, Maharashtra.
So far, encouraging results have been received for the project with 350 registrations.
4. Arbor Brewing Company India
Water usage is also a very vital aspect in this industry. In beer making process lots of water is
required, and hence waste water management takes a vital role in adaptation of sustainability
measures. Arbor Brewing Company is more focussed on this aspect. The initiatives which they have
undertaken are:
Anaerobic Digestion involves collecting wastewater into an airtight containment, and treating it with
specialized bacteria. Biogas capture for energy production is an option.

9. Aerobic Digestion is wastewater treatment in the presence of oxygen. It is generally done in outdoor
pools or tanks exposed to the air. It is a cheaper option than anaerobic digestion but does not allow
for biogas capture. New Belgium Brewery uses aerobic digestion after anaerobic digestion in order
to further treat its effluent.
Greywater Systems involve capturing wastewater from all sources except toilets, treating it
mechanically or chemically, and reusing on site.
Living Machines are a type of greywater system that uses plants and beneficial microorganisms to
treat the wastewater on-site, in often beautiful and elaborate constructed wetlands, and yield clean,
recycled water for secondary uses.
5. Anheuser-Busch InBev India
Environmental Goals 2017 which they have already started following -
Reduce Water risk and improve water management 100% of key barley growing regions
Engage in water shed protection measures 1005 of the facilities
Reduce water usage 3.2 hectolitre per hectolitre of production
Reduce energy Usage 10% per hectolitre of production
Reduce Greenhouse gas emission in beverage production 10% per hectolitre of production
Reduce packaging Material by 100000 tons
Increase eco-friendly cooler purchases 70% global average annually
Reduce Greenhouse emission in logistics operations 15% per hectolitre sold
6. Carlsberg India (South Asian Breweries)
They initiated the development of a bio-based and biodegradable bottle with EcoXpac, one of our
partners in the Carlsberg Circular Community. Slight improvements in energy and CO2and stable water
performance.
They increased our use of renewable energy from 5% to 7%.

10. Conclusion
Although there has been an increased awareness among the breweries and distilleries to
adopt sustainable methods of development there still exists a gap between many companies
who are either unsure or unwilling to change their business processes into a more sustainable
alternative.
Companies are established not only to provide goods or services to their customers, but they
also become an integral part of the communities in which they operate. An engaged
organization is not only about education to your employees and customers, it‘s about tying
sustainability to the company‘s mission, goals and performance evaluation processes.
American naturalist and botanist Peattie
defines green marketing as ―the holistic
management process responsible for
identifying, anticipating and satisfying
the requirements of customers and
society, in a profitable and sustainable
way

11. The Strategic Focus of all the companies that are following or planning to adopt sustainable
practices must possess the following strategic drivers.
Sustainability encompasses the operations of the entire business: every process, every
activity, and every function. A business will not be able to implement one or a few changes
and proclaim that the business has achieved sustainability. A business should be prepared to
apply the aforementioned critical self-analysis, honesty, innovation, and risk across all
processes, all activities, and every function of the business. Sustainability is a company-wide
change in mindset, philosophy, views, and practices related to how the business operates.
Lastly, we have to realize that sustainability incorporates a triple bottom line in evaluating
company performance: the environmental, social, and economic impact of the business (also
referred to as planet, people, and profit). This pursuit of triple bottom line is central to
sustainability.