Closing the Loop (Part 3): Circularity in Drinks Production – Beyond the Bottle

I know it’s not the end of the month yet, but we roll these out in 4 week series (don’t get me started on the flaws in the Gregorian calendar), so ‘welcome to the final instalment of our "Closing the Loop" series’.

Over the past few weeks, together we've explored the fundamentals of the circular economy (Article 1), then delved into the most discussed area of conversation: packaging – first with reuse and refill systems (Article 2) with practical, live examples, and then by examining smart design for maximising the recyclability of glass and aluminium (Article 3). These are vital steps, but a truly circular approach for the drinks industry extends far beyond fancy packaging.

Today, we look inward, to within the walls of our breweries, distilleries, and wineries to uncover how these circular principles can transform production, turning potential waste streams into valuable resources and managing our most precious natural capital: water.

Beyond Packaging: Embracing Operational Circularity

While packaging often takes centre stage in sustainability discussions due to its visibility, the production phase itself presents immense opportunities for "closing the loop." This involves a mindset shift: viewing all outputs, not just the final beverage, as potential assets, and managing inputs like water and energy with maximum efficiency.

1. From Waste to Worth: Valorising Production By-Products

The drinks industry naturally generates a variety of organic by-products. Traditionally considered 'waste' for disposal (often at a cost), today these streams are mostly recognised as valuable co-products for other industries or even back into the primary business.

  • Spent Grain & Botanicals (Breweries & Distilleries): This is one of the largest volume by-products.

    • Traditional Use: Spent grain is widely used as a nutritious animal feed.

    • Innovative Uses: Spent grain is now being upcycled into human food products like high-fibre flours for bread and snacks, plant-based proteins, or even as a substrate for cultivating mushrooms. It can also be used for biofuels, like William Grant & Sons do, or even biodegradable plastics.

    • Example: Numerous craft breweries partner with local farms for animal feed, while some innovative food start-ups are creating consumer products directly from spent grains or botanicals. Boatyard Distillery in Ireland are doing some wonderfully creative things here.

  • Pomace (Wineries & Cideries): The skins, seeds, and stems left after pressing grapes or apples.

    • Traditional Use: Composted for soil enrichment or used as animal feed.

    • Innovative Uses: Grape pomace is rich in antioxidants, oils, and natural colourants. Grape seed oil is a well-known product, but further extraction can yield valuable compounds for nutraceuticals, cosmetics, or natural food additives. Apple pomace can be used for pectin production, animal feed, or anaerobic digestion to produce biogas. All of the apple pomace used to make Avallen Calvados is used to make biogas at a local facility.

    • Example: Wineries are increasingly exploring ways to extract high-value compounds from pomace before it goes to compost or feed, creating new revenue streams.

  • Lees & Trub (Fermentation Sediments): Yeast and other particulate matter from brewing and winemaking.

    • Uses: Can be composted as a soil conditioner. In winemaking, lees can be distilled to produce spirits (lees brandy), such as this example from Agardi or used for tartrate (cream of tartar) recovery. Some yeast slurries can also supplement animal feed.

  • CO₂ from Fermentation: Fermentation naturally produces significant volumes of carbon dioxide.

    • Uses: Instead of venting this CO₂, progressive facilities are capturing it for reuse. This captured CO₂ can be used for carbonating their own beverages, sold to other industries (e.g., for carbonating soft drinks, creating dry ice, or enriching atmospheres in vertical farms), or even used in innovative ways like creating bio-concrete. Demerara Distillers in Guyana are a leading distillery implementing Co2 capture.

2. Closing the Water Loop: Towards Circular Water Management

Water is the most used resource in the drinks industry – it used as an ingredient, for cleaning, cooling, steam generation, not to mention all the coffee and tea the staff drink! Its responsible management is a cornerstone of operational circularity and only going to become increasingly important as climate change destabilises water security. We’ll be going into more detail about water in our next series. If you’re based in the UK, then this will be particularly relevant given that it looks like we’re heading into some serious drought conditions this year.

  • Reduce: The first step is always to minimise consumption:

    • Regular water audits to identify hotspots and leaks

    • Investing in water-efficient technologies (e.g., smart nozzles, Clean-In-Place (CIP) system optimisation).

    • Employee training on water-saving practices.

  • Reuse/Recycle: Treating process water to a standard where it can be safely reused for other applications within the facility.

    • Examples: Recycled water can often be used for initial rinses, floor washing, cooling tower make-up, or irrigation of non-food landscapes. Advanced treatment can even allow for water to be reused in processes like boiler feed or, in some highly advanced systems, back into the product with appropriate safeguards. Closed-loop cooling systems also dramatically reduce water withdrawal.

  • Replenish (Beyond the Factory): While the focus here is internal, truly circular thinking also acknowledges the water cycle beyond the facility, contributing to local watershed health, particularly important in water-stressed regions.

3. The Role of Energy (Briefly)

While not considered a "material" loop in the same way, energy efficiency and the transition to renewable energy sources are intrinsically linked to circularity. Reducing reliance on fossil fuels and minimising the energy needed to process materials (virgin or recycled) supports the overall goal of a less extractive, more regenerative, and ideally more profitable business.

There are so many ways to improve energy and operational efficiency at the production site, cutting costs and boosting margin, I won’t go into them now and we’ll save them up for a future series.

The Holistic View: A Stronger, More Resilient Business

Embedding these circular principles within production isn't just an environmental exercise. It offers tangible business benefits:

  • Cost Reduction: Lower waste disposal fees, reduced raw material purchasing (water, new ingredients), and potential energy savings.

  • New Revenue Streams: Creating marketable products from by-products.

  • Enhanced Resilience: Reduced dependence on fluctuating commodity prices and water availability.

  • Improved Brand Reputation: Demonstrating a deep commitment to sustainability resonates with consumers, employees, and investors.

  • Innovation: The drive for circularity often spurs creative problem-solving and process improvements.

Conclusion: Embrace the Full Circle

Over this four-part "Closing the Loop" series, we've journeyed from defining the core principles of the circular economy to exploring its practical application in the drinks industry. We started with the crucial historical context and regulatory drivers, then, we dived into packaging – prioritising reuse and refill models, and then optimising single-use glass and aluminium for maximum recyclability. Finally, today, we've looked beyond the package to the processes within our production facilities.

The message is clear: the circular economy is not a niche concept but a comprehensive framework for rethinking how we use resources, design products, and operate our businesses. It requires a holistic approach, moving from a linear ‘take-make-use-loose’ mindset to one of ‘eliminate-circulate-regenerate’. The journey towards full circularity is ongoing and requires commitment, collaboration, and continuous innovation. But for the drinks industry, it offers a pathway to a more sustainable, resilient, and responsible future.

As always, if you’re interested in learning more or want to speak to us about how we can help advance your sustainability journey to make your business more profitable, resilient, and future proofed, then please get in touch.

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The Well Runs Dry? Why Water Demands Urgent Attention in the Drinks Industry

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Closing the Loop on Packaging (Part 2): Smart Design for Recyclability & Material Innovation