Executive Masters of Business Administration AssignmentBaldwin Wallace College

Sustainability Paper and Presentation

Great Lakes Brewing Co.

Written by:

Christina@ChristinaThomasOnline.com

The Class Assignment Write a paper and give a presentation, describing and analyzing the sustainability components of a corporation. To what extent does the company embrace the concept of sustainability? Do they define it? What components of sustainability do they discuss and seem to practice?

The Class Deliverable: The Paper How could I possibly find a company and report on its sustainability efforts in an interesting

and effective way? After several days of mauling over this question, I finally discovered the

obvious answer: select a local company. One that would allow me to hear the story, see and

smell the facility, and even taste, the product; thereby drawing my own conclusions about the

company’s sustainability efforts. In other words, I could bring the project to life. And so I began:

The Great Lakes Brewing Company (GLBC) located at 2516 Market Avenue in Cleveland,

Ohio was easily accessible to me, and the management encouraged my visit which took place on

March 14, 2009. I had access to hear the story firsthand by interviewing Saul Kliorys—GLBC’s

Environmental Program Coordinator. My proximity to the company also enabled me to see and

smell the facility by taking a tour. And most importantly, I could taste the experience by sampling

the company’s delicious food and drink. In so doing, I gathered the following information.

GLBC is an environmentally and socially conscious brewer

of award-winning, all natural beer. The care that goes into the

beer resonates from a commitment to the community and

environment, otherwise known as the Triple Bottom Line. GLBC

employs this philosophy by engaging in economic, social and

environmental practices that achieve a sustainable, yet

profitable, business. This is not just a flash in the pan idea, but rather it is the way of life at GLBC.

In fact, the Triple Bottom Line is so ingrained in the belief system of the organization that it has

become part of the logo, represented by the bottom three waves, which you can see in the figure

above.

The mantra of the Triple Bottom Line sounds good, but the question now becomes why go

the extra mile? Wouldn’t it be easier to forget about the environment, especially in this economy?

What is the business case to be eco-effective? Quite simply, the answers reveal three poignant

motivations:

The company cuts operating costs.

The company gains income-generating opportunities.

Customers support the business.

Pat Conway, co-owner of GLBC substantiates such motivations when he states, “By taking

a 'full circle' approach, we are making the most of potential savings and income-

generating opportunities as the raw materials used to produce our products are

continuously transformed into a host of food-generating and energy-saving opportunities.

Our sustainable efforts just give our customer base another reason to support our

company.”

To that end, the company deploys the following strategies:

Reducing, reusing and recycling

Implementing efficient energy practices

Supporting sustainable urban renewal projects

Changing natural resource use from Take, Make, Waste to Take, Make, Remake.

In fact, the company’s ultimate goal is to implement zero-based initiatives in order to mimic

nature, where 100% of resources are used in closed-loop ecosystems.

So how well does the company walk its talk?

It appears as though the company is doing a good job at making full use of the by-products

generated by the brewing process. For example, there are four ways that the company turns

spent grain into food.

Waste = Food

GLBC gives a local farmer spent grain. The farmer blends it with corn, hay, soybeans

and other ingredients to feed cows. Eventually, the cows will produce waste, which will

be used as fertilizer to help vegetables grow.

1.

2. Killbuck Farms uses brewery grains as a substrate for growing organic Shiitake and

Oyster mushrooms. The substrate is combined with sawdust and paper to serve as a

medium for growing the organic mushrooms used in entrees.

However, GLBC is still perfecting this system because the farmer has better yield from

purchased grains. GLBC doesn’t want to adversely affect the farmer’s business so

they have put the mushroom trials on hiatus. If GLBC were to grow mushrooms for

themselves, they would need to find the right type of mushroom that will produce well

on brewer’s grains.

3. Zoss the Swiss Baker produces the cracked barley beer bread and pretzels found on

the menu using grains from the brewing process.

GLBC uses vermicomposting to produce natural fertilizer. A portion of paper, kitchen

scraps, grain and cardboard is fed to worms, which then produces castings—top-of-

the-line organic fertilizer—used to fertilize the herbs and vegetables found on the

menu.

4.

So what does the company do with its low-filled beer (the beer that

accidentally doesn’t get filled to standard requirements during the bottling

process)? Waste = Food. So it is used in recipes such as salad

dressings, Stilton Cheddar Cheese Soup and Edmund Fitzgerald

Chocolate Chunk Ice Cream, which is made by Mitchell’s Ice Cream.

Alternative Fuel

Christina standing by a vat of vegetable oil used to run

The Fatty Wagon.

Christina enjoys soup and ice cream made with low-filled beer.

GLBC operates a beer delivery truck and a shuttle bus called

"The Fatty Wagon" that runs on straight restaurant vegetable oil.

Results show that engines running on straight vegetable oil

produce 40% less soot than diesel and are 25% cleaner.

Recycling

GLBC recycles cardboard, glass, plastic, steel/aluminum, paper and

brewer's barley to reduce trash removal fees by over 50%. GLBC prints

newsletters, menus, beverage napkins and promotional items on 100%

recycled paper. In addition, all packaging (i.e., 4-packs, 6-packs, 12-

packs and the unbleached "eco-carton", which holds a case of beer)

consists of recycled content.

Energy Efficiencies

According to The Plain Dealer Sunday Magazine 2005, GLBC’s total

savings from energy conservation efforts are between $15,000 and

$20,000 per year. Some energy conservation tactics include:

• Skylights and light sensors in the Tank Farm and Brewery

cooler allow in natural light and minimize use of electricity.

Christina in the tank farm.

• An “air curtain" at the Brewpub keeps warm air from escaping

when patrons enter and exit.

• A cooling system in the Brewery cooler brings in cold air during

winter months to cool the beer.

• A retractable "Roman Curtain" roof is a durable canvas roof

that encloses the current open-air Beer Garden, which allows

use of this indoor/outdoor dining area all year.

Beer Garden

• The Beer Garden also includes a radiant heat fireplace and

floor, a straw bale wall and 10 ft. high sliding glass doors.

• It costs as little as $6 per day to heat the Beer Garden in the

winter.

I must admit that although the company is right in my backyard, I had absolutely no idea that

GLBC embraced sustainability. I was very impressed with all that the company is doing. And I

was quite surprised at the response when I asked how well they thought they were doing.

It appears as though GLBC feels that “they are just doing the easy stuff.” In order to ramp up

their sustainable efforts they are currently being coached by the McDonough Braungart Design

Chemistry (MBDC), a consultancy focused on helping clients implement Cradle to Cradle

Design—a positive new approach to sustainability and prosperity. When I say currently, I truly

mean it. They started on Monday, March 16.

Corporate Components of Sustainability

My analysis of GLBC enabled me to review and evaluate the company’s Corporate

Components of Sustainability. My ranking system below is similar to the star classification system

used by reviewers of movies, TV shows, theatre, and music, but with one, small difference.

Rather than granting stars, it seemed appropriate to award globes, instead. Therefore, one globe

indicates the lowest rating possible. On the other end, four globes represent the highest rating

possible.

Imbed sustainability in corporate mission and core values

The company receives four globes because sustainability is mentioned in its corporate

mission, which is: Great Lakes Brewing Company is a principle-centered, environmentally

respectful and socially conscious company committed to crafting fresh, flavorful, high-quality beer

and food for the enjoyment of our customers. We aspire to maintain our status as the premier

craft brewery in the Great Lakes region and are dedicated to uncompromising service, continuous

improvement and innovative consumer education.

Since I had the opportunity to interview the Environmental Programs Coordinator and tour the

facility, I know that sustainability is not only a part of the company’s core values; it is its passion

and a way of life!

Create partnerships and alliances

GLBC receives another four globes because Management considers itself an innovator and

is focused on continuous improvement. I believe that is evident by the fact that it is seeking

consultation from MBDC.

Further, GLBC has established a ton of alliances and partnerships including:

• The Cleveland Metroparks Zoo, where they collaborate on composting

• Farmers with whom they join forces to turn waste into food

• Merchants such as Zoss the Swiss Baker and Mitchell’s Ice Cream, again, to turn

waste into food

• Halle Farm and Village is a new partner for GLBC. The company has approximately 1/3

acre of farmland where it will grow its vegetables, herbs and edible flowers. GLBC’s

vermicomposting will eventually move out to Halle Farm and Village.

• And believe it or not, GLBC has a fruitful collaboration with competitors including New

Belgium Brewing Co. who seems to lead the charge in sustainability.

Create green products

While GLBC doesn’t “label” their products “green” it is clear that all its beer is environmentally

friendly. The four ingredients in the brew are all natural—water, barley, hops and yeast. The

company does not use preservatives so as soon as the beer is bottled it must be cooled. And

interestingly, the beer can last up to 180 days. Also all beer packaging is made with recycled

fibers.

Further, GLBC is launching a new beer in 2009 called Grass Roots Ale, which will use herbs

that the company is growing at Halle Farm & Village. Therefore, GLBC receives four globes for

this category too.

Set measurable goals

GLBC only receives two globes for this category. Although the company has goals, they are

not quantifiable—at least as far as I can tell. Through all of my research and even in the interview,

I could not find anyplace where GLBC “puts a number” on their goals. Therefore, how can they

possibly be measured? Further, during my interview Mr. Kliorys wasn’t shy about saying they

needed to improve on measuring their efforts.

Foster reporting and transparency of activities

GLBC’s top-priority in 2009 is to gather their findings into a report. The report will help them

understand their successes, shortfalls and identify areas of improvement. Since this is a new

initiative for the company, I am awarding only one globe. However, the company recognizes the

importance. GLBC will share their report findings, which will also outline transparency of activities

with internal staff and their partners and alliances.

Nothing satisfies me more than accomplishing a goal. I believe that I have successfully found

a company and reported on its sustainability efforts in an interesting and effective way. Your

assignment has truly helped me to bring sustainability to life. It enabled me to hear, see and

taste it firsthand. Now for the first time in nearly 40 years, I am aware of environmental issues.

And as McDonough and Braungart so eloquently state:

“Now that we know, it's time for a change. Negligence starts tomorrow. “

Class Assignment #2: Presentation

Rather than present facts I gathered

from the Internet, I shared my

sustainability scrapbook with the class.

Click here (or scroll down the page) to

see the presentation. It’s humorous and

creative. You’ll enjoy it!

Christina’s  Sustainability 

Scrapbook

Microbrewery and Brewpub

Distributes beer to 

Growing more than 30% annually

100 employees

Privately held by Patrick & Daniel Conway

INIL KYMI

NYPA WV WIOH

Great Lakes Brewing Co.

TasteSeeHear

Interview with Saul Kliorys 

Environmental 

Programs 

Coordinator

Business Case

Cut operating costs

Leverage income‐generating opportunities

Just another reason for customers to support the business

Triple Bottom LineTo engage in economic, social and environmental 

practices that achieve a sustainable, yet profitable, business.

Reduce, reuse and recycle

Implement efficient energy practices

Change natural resource use from. . .

Sustainable Strategies

Make

Waste

Take

Make

Re‐make

Take

Ultimate Goal

Mimic nature, where  100% of resources are  used in closed‐loop  ecosystems.

WasteWaste

CarnivoresCarnivores

PlantsPlantsPhoto 

SynthesisPhoto 

Synthesis

HerbivoresHerbivores

Natural Closed Loop

Ecosystem

WASTE = FOOD

Shitake & oyster

Brewing process

WASTE = FOOD

Stilton Cheddar Cheese Soup

Edmund Fitzgerald 

Chocolate Chunk Ice Cream

Alternative Fuel

Christina standing by a vat of 

vegetable oil that runs local delivery 

trucks and the Fatty Wagon.

Christina standing by the 

Fatty Wagon.

Engines produce 40% less soot than  diesel and are 25% cleaner.

McDonough Braungart  Design Chemistry

Energy Efficiency

•

Skylights and light sensors  allow in natural light and 

minimize use of electricity. 

•

Cooling system in the  Brewery cooler 

brings in cold 

air during winter months  to cool the beer. 

Recycling

All beer cartons  are made 

of 100% recycled materials.

Menus, newsletters, napkins and 

promotional materials are printed 

on 100% recycled paper

Trash removal down 50% due to recycling of cardboard, glass,

paper, plastic, steel/aluminum, barley and table scraps.

Corporate Components  of Sustainability

Imbed in corporate mission and core values 

Create partnerships and alliances

Create green products 

Set measurable goals

Foster reporting and transparency of activities