Money well spent
"Our ambition is to be as socially responsible as possible, with the intention of drastically reducing our carbon footprint and eventually becoming carbon neutral. Suffice to say, we currently set industry-leading standards for energy efficiency, water usage, effluent control and recycling of all materials"
From entry to Eco-efficiency Award at the Business in the Community Awards 2008
A number of brewers have developed a commitment to being 'green' in the last few years. From Shepherd Neame and its environmental certifications, such as the Queen's Award for Enterprise: Sustainable Development 2006, to Sharp's in Cornwall and its Eden Project beer, Eden Pure Ale, the environment is now heavily on the agenda.
But while these brewers and many other companies featured throughout this 'green issue' have made important changes to working practices and altered some parts of their infrastructure, there is only really one company which has gone out on a limb and put the environment at the very centre of its operations and investment.
While others have been slow adopters and perhaps slightly doubtful converts to the green ideal, Adnams has been its most enthusiastic supporter since the turn of the decade. More than any other drinks company, Adnams has put its money where its mouth is.
The Southwold family brewer has spent well over £10m reinventing its brewing and logistics infrastructures - seeing the environment not only crucial to its values as a company, but also an opportunity to push itself to the forefront of success.
Back in the early part of 2001 the Adnams board signed up to a multi-million pound investment plan for its brewery and distribution operation.Managing director Andy Wood explains: "We had a 100-year-old brewery that desperately need replacing and we had a distribution centre being shaken to its very foundations by 40-tonne lorries every day. We had to invest in our infrastructure."
Rather than just spend the money on simple replacements, the board decided that the environment had to be at the centre of its business plan and that both the brewery and distribution centre had to be the most-up-to-date and environmentally friendly structures that could be built.
"We wanted to do something we would be very proud of that would also give us a competitive advantage," says Wood.
The board undertook a cost benefit analysis and looked hard at how energy prices might be affected in the coming years and decided it was a risk well worth taking. In fact, Wood says it was almost a no-brainer.
"We are committed brewers and we want what is best for our brewing operation. It is always important to have brewing equipment that gets the best yield and uses energy efficiently. We didn't want to reboil the water after every brew," he explains.
And with almost daily news stories on energy prices - not least the fact that the price of a barrel of oil now sits at well over $100 - Adnams has been completely vindicated in its vision.
Savings Adnams makes through innovations
Distribution CentreCompared to old building (per square metre):• 58 per cent less gas• 67 per cent less electricity
Brewhouse• Captures 100 per cent of steam to heat 90 per cent of following brew • Raw material efficiencies
Lightweight bottle• 34 per cent reduction in glass • 415 tonnes CO2 saved per year
Return on investment
The total investment in the distribution centre and brewery was between £14m and £15m and there have already been benefits. Wood says there has been an instant return from the brewery through replacing the out-of-date kit - "that simply gave us immediate efficiencies through reduced manpower".
But while the investment has been made to give Adnams a competitive advantage and to increase profitability, one senses from Wood that this is as much a matter of corporate ethics. "We have corporate values that are very important to us and we felt this project gave us a huge opportunity. It has given great motivation to people who work for Adnams. The whole project has been of massive benefit," he explains.
As a result of the work done on environmental issues Adnams recently won a Queen's Award for Sustainable Development and became the Carbon Trust's Carbon Innovator of the Year 2007.
And things do not stop there. At the beginning of 2007, Adnams launched an innovative lightweight beer bottle, which reduced the mass of a 500ml bottle from 445g to 299g. For some time this was the lightest bottle in the category and the brewer says it is now working to reduce it further. The creation of the lightweight bottle has meant massive savings in terms of glass and CO2.
"It's vital to show leadership on this," says Wood. "That is why we invested in the infrastructure, why we were the first to launch the lightweight bottle, and why we are the first UK company to launch a carbon neutral beer."
East Green (See News, page 6) is the first such beer launched in the UK and so taken was Tesco with the product that it has signed it up for an exclusive national stocking deal for six months. Only after that will Adnams roll it out to the on-trade.
While pubs may baulk at having to wait six months to get their hands on East Green, there is no doubt 'going green' has been great for Adnams.
