108 S. Bolwig et al.
the bio- technology and bio- resource perspectives dominate the scientific literature on spent grain, which has a strong focus on biochemical and technological aspects, as is evident from the reviews (Aliyu & Bala, 2011; Mussatto,
2014; Thomas & Rahman, 2006). Socio- economic issues, such as value creation, competitive advantage, and consumer acceptance, have received less
scholarly attention. And while the literature on technical options is rich and
consistent, the few studies of the profitability of spent grain as an industrial
feedstock report divergent results, ranging from optimistic (Mussatto,
Moncada, Roberto & Cardona, 2013) to very pessimistic (Buffington, 2014).
In view of this, this chapter starts from the premise that company decisions
on how to use and manage organic residues not only reflect technical possibilities but are also influenced by socio- economic, supply chain and regulatory
factors. These include company- specific and industry- wide sustainability policies and initiatives, which can form part of companies’ corporate social
responsibility (CSR) efforts. In the brewing industry, important sustainability
areas, apart from organic residues, are water consumption, waste water management, energy use and the resulting CO 2 emissions, sustainable packaging
(Olajire, 2012), and responsible drinking. Integrating these sustainability areas
into the core of a business can potentially increase value creation (Bocken,
Short, Rana & Evans, 2013; Short, Bocken, Barlow & Chertow, 2014). In
this regard, Porter (1985) argues that companies can obtain competitive
advantage by pursuing a product differentiating strategy, where CSR can be a
means of product differentiation (McWilliams & Siegel, 2011), through
branding, for example (Roberts & Dowling, 2002), thus creating a nonimitational resource for the company (Reinhardt, 1998). In this context,
Clark, Feiner and Viehs (2015) provide evidence of a positive link between
CSR and a company’s competitive advantage.
Against this background, this chapter aims to deepen the understanding of
circularity in the brewing industry regarding organic waste. The specific aim
is to investigate current management practices and options for valorisation of
spent grain in brewing value chains in Denmark and Norway.
6.2 Value creation and sustainable competitive
advantage
The exploration of alternative uses of spent grain encompasses potential economic gains, most obvious when a brewery incurs costs related to waste disposal but also when spent grain is given away for free. There are potential
economic gains to be secured when creating a new value chain for spent
grain. Yet these gains must be assessed in a cost- benefit setting. Benefits could
also be related to CSR measures. How CSR can contribute to sustainable
competitive advantage (McWilliams & Siegel, 2011) is elaborated on in
Chapter 3.
Various industries use the principles of industrial ecology to convert waste
to positive value assets, yet the literature lacks clear links to profitability and
the bio- technology and bio- resource perspectives dominate the scientific literature on spent grain, which has a strong focus on biochemical and technological aspects, as is evident from the reviews (Aliyu & Bala, 2011; Mussatto,
2014; Thomas & Rahman, 2006). Socio- economic issues, such as value creation, competitive advantage, and consumer acceptance, have received less
scholarly attention. And while the literature on technical options is rich and
consistent, the few studies of the profitability of spent grain as an industrial
feedstock report divergent results, ranging from optimistic (Mussatto,
Moncada, Roberto & Cardona, 2013) to very pessimistic (Buffington, 2014).
In view of this, this chapter starts from the premise that company decisions
on how to use and manage organic residues not only reflect technical possibilities but are also influenced by socio- economic, supply chain and regulatory
factors. These include company- specific and industry- wide sustainability policies and initiatives, which can form part of companies’ corporate social
responsibility (CSR) efforts. In the brewing industry, important sustainability
areas, apart from organic residues, are water consumption, waste water management, energy use and the resulting CO 2 emissions, sustainable packaging
(Olajire, 2012), and responsible drinking. Integrating these sustainability areas
into the core of a business can potentially increase value creation (Bocken,
Short, Rana & Evans, 2013; Short, Bocken, Barlow & Chertow, 2014). In
this regard, Porter (1985) argues that companies can obtain competitive
advantage by pursuing a product differentiating strategy, where CSR can be a
means of product differentiation (McWilliams & Siegel, 2011), through
branding, for example (Roberts & Dowling, 2002), thus creating a nonimitational resource for the company (Reinhardt, 1998). In this context,
Clark, Feiner and Viehs (2015) provide evidence of a positive link between
CSR and a company’s competitive advantage.
Against this background, this chapter aims to deepen the understanding of
circularity in the brewing industry regarding organic waste. The specific aim
is to investigate current management practices and options for valorisation of
spent grain in brewing value chains in Denmark and Norway.
6.2 Value creation and sustainable competitive
advantage
The exploration of alternative uses of spent grain encompasses potential economic gains, most obvious when a brewery incurs costs related to waste disposal but also when spent grain is given away for free. There are potential
economic gains to be secured when creating a new value chain for spent
grain. Yet these gains must be assessed in a cost- benefit setting. Benefits could
also be related to CSR measures. How CSR can contribute to sustainable
competitive advantage (McWilliams & Siegel, 2011) is elaborated on in
Chapter 3.
Various industries use the principles of industrial ecology to convert waste
to positive value assets, yet the literature lacks clear links to profitability and