Stateways

StateWays - November/December 2016

StateWays is the only magazine exclusively covering the control state system within the beverage alcohol industry, with annual updates from liquor control commissions and alcohol control boards and yearly fiscal reporting from control jurisdictions

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w w w.BevInfoGroup.com 12 Beverage Information Group • Sustainability Guide 2016 water efficiency by 46% (and $2M savings) and reduced greenhouse gas (GHG) intensity ratio by 47%. "We are also on track to achieve our GHG emission reduction target of 50% this year, in 2016 – one year ahead of goal," adds Torruella. Patron Spirits is a leader in green initiatives in Tequila, says Francisco Soltero, director of Strategic Planning and Public Affairs. "We are trying to do the right thing here, not just use the cheapest and easiest processes." RISING TIDES A confluence of events gives urgency to these initiatives. The growing world population, now pegged at 7.4 billion, is straining resources—water, energy and agriculture. Climate change is having a greater, unpredictable impact, as all signs point to the disruptive effects of greenhouse gas emissions. Ratification of the Paris Climate Agreement will compel reductions in GHGs, and smart corporations are getting ahead of that curve. Consumers are increasingly concerned about the situation. "More customers these days consider sustainability to be a business norm," says Wallace. Research by New Belgium shows that as much as 70-80% of customers expect sustainability efforts from the companies they buy from. BIG AND SMALL Beverage producers big and small are improving operational efficiencies as well as examining impacts from agricultural partners and packaging changes. The drinks business is doing a good job compared with other industries. "We have a simple supply chain and impact," points out Wallace. Just water, grain and other fermentables, hops and flavoring, and packaging—bottles and cans, which are recyclable. One company taking direct action in the supply chain is Destillería Serrallés, producer of Don Q rum. "We are bringing sugarcane back to Puerto Rico for the first time in over two decades," says Roberto Serralles, vice president of business development. The company is developing a 12,000-acre sugar plantation near the distillery. "Transporting molasses to Puerto Rico has a huge carbon footprint. Having locally grown sugarcane will reduce that impact," says Serralles. Plans are to irrigate the cane fields with reclaimed waste water, and fertilize with organic waste matter extracted from rum processing. While smaller craft producers may have more flexibility to make changes, they lack the resources that big companies possess. That's another leg up for worldwide drinks giants. "Beverage companies with large global footprints are already experiencing impacting events such as brownouts and water shortages. They are forced to address these vulnerabilities, and translate those experiences into risk management practices," says Tod D. Christenson, director of the Beverage Industry Environmental Roundtable (BIER). BIER is a technical coalition of beverage companies working to establish benchmarks and develop best practices for sustainable solutions — all of which is freely shared. Sustainability efforts fall into four main areas of concern: water, GHG emissions, waste, and packaging. USING LESS WATER Water is an essential ingredient in beverage alcohol. The production process is water- intensive, too. H2O is used for cooling, cleaning and packaging. On average, it takes 7-10 gal. of water to produce 1 gal. of beer—although some brewers have lowered that ratio considerably. Heineken USA, for example, has reduced water consumption at its breweries by 26% since 2008, according to company reports. "Brewing beer requires a lot of water, not just for the liquid-end product itself, but also the process," affirms Kate Avery, director of sales & marketing for Brewery Vivant. "We try to recapture as much water as we can, but inevitably it takes a lot." The goal is a 3:1 ratio, she adds. The Michigan-based brewery is the first Silver LEED-certified micro brewery. Spirits ratios are more variable, depending upon the operational scale, distillation process and ABV. "One bottle of a premium spirit requires 10 liters of water to produce, making sustainable water use a very important ECO STRATEGIES "WE ARE TRYING TO DO THE RIGHT THING HERE, NOT JUST USE THE CHEAPEST AND EASIEST PROCESSES." —Francisco Soltero, director of Strategic Planning and Public Affairs, Patron Spirits

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