Beyond animal feed? 109
increased competitiveness (Short et al., 2014). Arguably, industrial ecology
and, more narrowly, industrial symbiosis can be a foundation for business
model innovation and it is important to look beyond conventional resource
productivity and process innovation and find new ways of creating value
(ibid.). Business models have been outlined in various ways. Whether it is the
concept of marketing myopia (Levitt, 1960), value chains (Porter, 1985) or
blue ocean strategy (Kim & Mauborgne, 2005), a business model essentially
explains ‘how a firm does business’ (Short et al., 2014). Richardson (2008)
sums up three aspects of business models: value proposition, value creation and
delivery, and value capture. Business model innovation can take place in each of
the three aspects, whether it depends on the product or service offered, and
to whom it is offered, through which activities the value is created, or how
the company handles costs and revenue (ibid.). Innovation in business models
can spur sustainability (Short et al., 2014). Bocken et al. (2013) identify nine
business model archetypes aiming to improve sustainability and one of them
is creating value from waste. The strategy here is to eliminate waste and turn
waste streams into inputs to other value- creating processes and production
(Short et al., 2014).
Yet studies of the brewing industry emphasise the lack of change in the
spent grain business model, i.e. the use of the residue as animal feed. There
are many technical options for spent grain valorisation other than feed, as
elaborated below, but brewers do not appear to have experimented with or
implemented them (Aliyu & Bala, 2011) as a way of creating or capturing
value. Even the Sierra Nevada Brewery in California, highly acclaimed for its
sustainability measures, provides all its spent grain to farmers (Sierra Nevada
Brewery, 2015).
Research and development (R&D) activities are playing an increasingly
important role in companies’ CSR policies (Baumgartner & Ebner, 2010).
R&D is often integrated into the innovation and technology aspects of the
economic dimension of sustainability, reducing the environmental impact of
new products and business activities (ibid.). Engaging in R&D is particularly
beneficial for companies that are among the first to adopt a new product, also
known as ‘first movers’ (Robinson, Fornell & Sullivan, 1992; Srivastava &
Lee, 2005). In light of this, it is interesting that the brewing industry does not
have a tradition of making strong investments in R&D (Bamforth, 2000).
In view of these considerations, this chapter addresses the following
research questions: What technical options exist for adding value to spent
grain? What are the current status, opportunities and barriers for converting
spent grain from low- or zero- value livestock feed into assets with a higher
value? In this context, what R&D activities do Nordic brewers undertake
regarding the management of spent grain and related areas and what motivates or hinders such activities?
increased competitiveness (Short et al., 2014). Arguably, industrial ecology
and, more narrowly, industrial symbiosis can be a foundation for business
model innovation and it is important to look beyond conventional resource
productivity and process innovation and find new ways of creating value
(ibid.). Business models have been outlined in various ways. Whether it is the
concept of marketing myopia (Levitt, 1960), value chains (Porter, 1985) or
blue ocean strategy (Kim & Mauborgne, 2005), a business model essentially
explains ‘how a firm does business’ (Short et al., 2014). Richardson (2008)
sums up three aspects of business models: value proposition, value creation and
delivery, and value capture. Business model innovation can take place in each of
the three aspects, whether it depends on the product or service offered, and
to whom it is offered, through which activities the value is created, or how
the company handles costs and revenue (ibid.). Innovation in business models
can spur sustainability (Short et al., 2014). Bocken et al. (2013) identify nine
business model archetypes aiming to improve sustainability and one of them
is creating value from waste. The strategy here is to eliminate waste and turn
waste streams into inputs to other value- creating processes and production
(Short et al., 2014).
Yet studies of the brewing industry emphasise the lack of change in the
spent grain business model, i.e. the use of the residue as animal feed. There
are many technical options for spent grain valorisation other than feed, as
elaborated below, but brewers do not appear to have experimented with or
implemented them (Aliyu & Bala, 2011) as a way of creating or capturing
value. Even the Sierra Nevada Brewery in California, highly acclaimed for its
sustainability measures, provides all its spent grain to farmers (Sierra Nevada
Brewery, 2015).
Research and development (R&D) activities are playing an increasingly
important role in companies’ CSR policies (Baumgartner & Ebner, 2010).
R&D is often integrated into the innovation and technology aspects of the
economic dimension of sustainability, reducing the environmental impact of
new products and business activities (ibid.). Engaging in R&D is particularly
beneficial for companies that are among the first to adopt a new product, also
known as ‘first movers’ (Robinson, Fornell & Sullivan, 1992; Srivastava &
Lee, 2005). In light of this, it is interesting that the brewing industry does not
have a tradition of making strong investments in R&D (Bamforth, 2000).
In view of these considerations, this chapter addresses the following
research questions: What technical options exist for adding value to spent
grain? What are the current status, opportunities and barriers for converting
spent grain from low- or zero- value livestock feed into assets with a higher
value? In this context, what R&D activities do Nordic brewers undertake
regarding the management of spent grain and related areas and what motivates or hinders such activities?