APROPER DRINK

Infusing sustainability into the alcohol industry

Today alcohol consumption remains one of the world’s oldest vices – but oh how it has grown since the first evidence of alcoholic beverages was found in China in 7000 BC. Nationwide, the alcohol industry now generates more than $238 billion in annual revenue.

As for Michigan? Well, Michiganders certainly aren’t teetotalers. In fact, Michigan residents consume almost 25 million gallons of alcoholic beverages annually, with sales from spirits alone topping $2 billion on an annual basis. With such a substantial economic impact, should the alcohol industry prioritize environmental, social and economic responsibility? Consumers seem to think so.

Like many other industries, the alcohol industry is under pressure to raise the bar when it comes to sustainability. Consumers now consider the sustainable practices of an alcohol manufacturer as one of their top considerations in purchasing alcoholic beverages. So what does that mean for alcohol manufacturers?

Organic practices. Not surprisingly, consumers are increasingly on the lookout for organic alcohol choices and willing to pay a premium for it. In order for alcohol to be certified organic, it must meet certain federal guidelines established by the U.S. Department of Agriculture regarding soil quality (including no prohibited substances and nothing grown or handled using genetically modified organisms), pest and weed control and the use of additives. As such, alcohol manufacturers and their producers are making substantial changes to their cultural practices. Traditional synthetic fertilizers and pesticides are out; preventative, biological and mechanical methods are in. Consumers are assured that the ingredients used in production of their organic alcohol are grown and processed utilizing organic management practices. Manufacturers and producers are increasing soil health with compost and animal manures, and combating pests and disease with naturally derived substances (soaps, vinegar and oil based herbicides), biological controls (ladybugs and roundworms) and disease-tolerant plants and trap crops. Consumers are taking note.

Packaging. You guessed it. How an alcoholic beverage is packaged matters to the consumer when it comes to sustainability. From recycled plastic to refillable growlers to the cardboard TetraPak, the choice of packaging puts the alcohol manufacturer’s sustainability efforts on full display. Innovations in alcoholic beverage packaging is now leaving traditional environmentally friendly options behind and moving toward completely biodegradable and zero-waste alternatives. Beyond the container, consumers are also focused on the efforts an alcohol manufacturer and its suppliers are taking in reducing the carbon footprint associated with manufacturing and transport of alcoholic beverages. From supporting legislation aimed at restricting single-use plastics, to use of recycled PET bottles in place of glass to reduce packaging weight, alcohol manufacturers are finding themselves well-served investing in the future of sustainable packaging.

Sourcing. Consumers want reassurance from alcohol manufacturers that the ingredients they are using in the alcoholic beverage base are being responsibly sourced – environmentally, socially and ecologically. This doesn’t mean alcohol manufacturers can simply market their brand with buzz words such as “natural,” “eco-friendly” or “green.” It means transparency not only in the sustainable practices and behavior of alcohol manufacturers and producers, but clear identification of where and how it is produced. Consumers are seeking out al- with local growers and vendors. Northern Michigan has long been locally focused, with its landscape being a unique patchwork of rich agricultural land bordering the home of countless small wineries, breweries and distilleries. Here, a consumer can sip a glass of wine overlooking the vineyard where the grapes used to produce that wine were grown, or enjoy a with the consumer. A connection that is made that much stronger when that local grower or vendor is right in the consumer’s backyard. cohol brands with organic, Demeter and fair-trade certifications on their labels as evidence that the alcohol manufacturer is truly committed to sustainability. Similarly, consumers are demanding detailed descriptions of the ingredients in alcoholic beverages, even when not required by law. It may be alcohol, but consumers still want to know exactly what they are putting into their bodies.

Local partnerships. There’s a growing focus on a manufacturer’s partnerships pint of cider crafted from apples on the adjacent farm. For alcohol manufacturers and consumers alike, that’s priceless. However, not every manufacturer is lucky enough to call northern Michigan home. Sure, partnering with a large distributor for a manufacturer’s alcohol base could ensure greater consistency and reliability, but consumers want more. They want to know who is behind the product they are consuming. By giving the grower or vendor an identity, it builds a connection

In the highly competitive (and profitable) alcoholic beverage industry, manufacturers must set themselves apart. Adoption of sustainable practices is one way to do just that. While sustainability is often described as a multi-layered issue, communicating well-thought steps to strategically implement sustainable practices over time will get the attention of consumers. The saying “infusion terroir” is often used in the craft beverage industry. It is meant to speak to a manufacturer’s goal of infusing a sense of place into the alcohol based on the soil, climate and conditions where those ingredients were grown. In the context of sustainability, infusing that sense of place for consumers into the alcohol industry as a whole seems even more fitting.

Cortney Danbrook is an attorney at Danbrook Adams Raymond, PLC in Traverse City. She provides specialized counsel to business clients on liquor licensing and regulatory compliance, and advises individuals, families and businesses in the areas of estate and succession planning. She can be reached at (231) 714-0163 or cdanbrook@darlawyers.com.