On International Beer Day last Friday, beer enthusiasts celebrated by cracking open a can of their favorite brew, while New Belgium Brewing’s Fat Tire Amber Ale was making strides for the environment. This beer has been recognized as America’s first nationally distributed carbon-neutral beer by SCS Global Services, a third-party organization that conducts environmental and sustainability assessments. This accolade aligns with New Belgium’s broader sustainability ambition to achieve full carbon neutrality across its operations by 2030. Recently, the brewery has shifted towards renewable energy, utilizing wind power and generating electricity through solar and biogas technologies to reduce carbon emissions. Additionally, it has pioneered a carbon footprint study for beer.
Steve Fechheimer, CEO of New Belgium Brewing, emphasized the urgency of the climate crisis, stating, “Make no mistake, the climate crisis is an economic and health crisis far greater than the one we’re experiencing now. The future of beer — and everything else — depends on it.” To further raise awareness on International Beer Day, New Belgium increased the price of Fat Tire six-packs to $100 — a ten-fold rise — to illustrate how climate change could disrupt agriculture and consequently impact beer prices. David Jonas, program manager of climate consulting services at SCS, noted that given beer’s status as the most popular alcoholic beverage in the U.S., this certification and New Belgium’s initiative could play a crucial role in educating Americans about the necessity of robust climate action.
While other beverage companies are taking steps to address climate change and lessen their environmental impact, few have matched New Belgium’s commitment. For instance, AB InBev’s Anheuser-Busch is investing millions and collaborating with farmers to identify rice, hops, and barley varieties that require less water or are more resistant to diseases. Other companies have focused on sustainable packaging, like Carlsberg’s bio-based, fully recyclable beer bottles, and Diageo’s partnership to create a plastic-free, paper-based spirits bottle sourced from sustainable wood.
As craft breweries face intensified competition and challenges from the pandemic, they can no longer rely solely on unique flavors or catchy names for survival. By prioritizing climate action, New Belgium may gain a competitive edge in the evolving beer landscape.
In a different sector, Upfield is introducing its Flora Plant Butter to the U.S. after decades of success globally, with some modifications to align with current trends. The U.S. version, made from palm, sunflower, and canola oils, is available in an 8.8-ounce brick in both salted and unsalted options, wrapped in parchment paper for additional sustainability. Originally developed by Unilever in the 1960s, Flora aimed to provide a healthier alternative to butter and margarine. Following Unilever’s sale of its spreads division to KKR & Co. for $8.03 billion in 2018, Upfield emerged as a spinoff focused on buttery spreads, also producing well-known brands like Country Crock and I Can’t Believe It’s Not Butter. Flora is currently the top-selling spread in the U.K.
Upfield has been preparing for this timely launch for over a year, having reformulated Flora to be entirely plant-based, a prerequisite for its new name. The product first launched in Austria last October, with a U.K. rollout scheduled for next month. With its eco-friendly and plant-based branding, Flora is likely to resonate with American consumers, making it a strategic move for Upfield. Margarine sales in North America have been declining sharply, prompting Upfield CEO David Haines to express hopes of transforming the perception of their products from outdated butter substitutes to sustainable plant-based staples with clean labels. The success of Flora Plant Butter in the U.S. will determine whether this shift can take root.
Meanwhile, despite the pandemic prompting various shifts in the industry, companies are still launching fall products ahead of schedule. Vive Hard Seltzer is set to introduce a Pumpkin Spice Hard Seltzer next month, available at Kroger stores in Ohio, Kentucky, and Tennessee for $9.99 per six-pack. Jake Rouse, co-founder and CEO of Braxton Brewing Company, commented, “There are few other products where a flavor profile and a customer base align so directly, that we wanted to be sure that we nailed the flavor. VIVE Pumpkin Spice is likely going to be laughed at initially, but when you try it, you’ll quickly understand why we’re thrilled to launch!”
Braxton Brewing Co. has seen recent success, being named on the Inc. 5000 list of fastest-growing private companies. They noted that they are competing nationally against hard seltzer brands with greater financial resources and brand recognition. The beer industry has encountered challenges in recent years due to stagnant sales and changing consumer preferences, prompting companies to explore trendier alcoholic beverages. The hard seltzer market exploded last summer, with leading brand White Claw facing shortages due to rapid growth.
Vive’s new hard seltzer will face significant competition as the spiked seltzer segment continues to expand, with major players like MillerCoors and AB InBev launching new products to keep pace with the trend. The pumpkin spice flavor could help Vive stand out in this crowded market, as the flavor attracts consumers during the fall season, despite the fact that it is still August.
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