{"id":12303,"date":"2016-11-04T16:20:59","date_gmt":"2016-11-04T20:20:59","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/the-bitter-truth-for-beer\/"},"modified":"2016-11-04T16:20:59","modified_gmt":"2016-11-04T20:20:59","slug":"the-bitter-truth-for-beer","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/the-bitter-truth-for-beer\/","title":{"rendered":"The Bitter Truth for Beer"},"content":{"rendered":"

The Impact of a Changing Climate on the Beer Industry and MillerCoors<\/em><\/p>\n

Climate change matters to breweries for two principal reasons. First, beer relies heavily on agriculture \u2013its primary ingredients are hops, barley, and yeast \u2013 and a changing climate significantly impacts the ability to produce these crops to consistent quality and quantities. Second, the beer production process is highly energy intensive and ranks as one of the world\u2019s heaviest users of water. [1]<\/p>\n

Hops, grown primarily in the American Northwest, provides the bitterness and aroma that gives different beers such unique flavors. [2] Over the past several years, weather in the Northwest has been unusually warm, with both 2015 and 2016 reporting moderate to severe drought during the hops harvest season (Figure 1). Hot temperatures disrupt hops yields and require heavy reliance on irrigation systems, straining water supplies. Cultivation of hops and barley are typically responsible for more than 90% of the water used in the beer production process. [3]<\/p>\n

As the largest American-owned beer producer, MillerCoors is both a victim of and a contributor to the significant impacts of climate change. Facing increasing pressures from the public, rising energy and production costs, and intensifying regulation, MillerCoors and other breweries around the world have no choice but to evolve.<\/p>\n

Figure 1: <\/strong>Drought afflicted areas of the United States, July 2015. [4]<\/p>\n

\u00a0\u00a0 \u00a0\u00a0\"dought-map\"<\/a>\u00a0\u00a0<\/em>\u00a0\"legend\"<\/a><\/em><\/p>\n

MillerCoors has Taken Important Steps to Reduce its Impact on Climate Change<\/em><\/p>\n

MillerCoors, recently acquired by the world\u2019s third largest brewer, Molson Coors, manages some of the best-known brands in beer. The organization has launched several important initiatives to reduce its impact on climate change, taking a three-pronged approach in what it refers to as its Great Environment <\/em>program.<\/p>\n

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  1. Reducing water consumption and restoring water in stressed regions.<\/strong> In 2015, MillerCoors achieved a water to beer ratio of 3.29 to 1, beyond its goal of 3.5 to 1 and on track to achieve an ambitious target of 3 to 1 by 2020. Additionally, the organization will soon be restoring fresh water equal to the amount of final product volume at breweries in water-stressed areas, including California, Texas, and Colorado. [5] Lastly, MillerCoors is working with their growers throughout the U.S. to limit water waste. It recently launched its Grower Portal, a digital platform enabling growers to share data and best practices regarding water usage. [6]<\/li>\n
  2. Reducing carbon footprint across the supply chain.<\/strong> MillerCoors assessed its entire supply chain and plans to reduce its carbon footprint by 25% (2010 baseline) by 2020. By 2015, the firm had already reduced its footprint by 18%, thanks to efficiencies in brewing, packaging, and transportation.<\/li>\n
  3. Eliminating waste at major manufacturing facilities.<\/strong> By 2020, MillerCoors plans to have landfill-free operations across all manufacturing facilities with more than 75 employees. By 2015, it had already achieved this at its 8 major breweries across the country. [7]<\/li>\n<\/ol>\n

    Click here\u00a0<\/a>to learn more about how MillerCoors\u2019 sustainability efforts. [8]<\/p>\n

    There\u2019s More to be Done<\/em><\/p>\n

    While MillerCoors deserves commendation for its sustainability efforts to date, there is still much more the firm must do to reduce its climate impact. To start, the company can look for inspiration to smaller, craft breweries, many of which have sustainability deeply rooted in their cultures and operations.<\/p>\n