Food & Beverages domain

Revitalizing Farming Communities with
Craft Beer Made from Sustainable Barley

Negative environmental impacts of conventional agricultural practices

Lion has implemented various sustainable initiatives within our breweries, including the procurement of 100% renewable electricity, biogas generation, and energy efficiency best practice. Currently, we are further expanding our efforts to promote sustainability upstream in the supply chain.

The major agricultural ingredients in beer are barley and hops. Conventionally, the cultivation of malting barley is, generally speaking, a monocrop practice. While broad-acre monocrop agriculture is highly efficient, it also involves multifaceted challenges. For example, the excessive use of synthetic nitrogen fertilizers & agrochemicals negatively impacts soil health, biodiversity, and water quality. Furthermore, this can lead to the degradation of the socio-economic wellbeing of farming communities when considering the long-term resilience of conventional systems in the face of broader social & environmental challenges such as the impact of climate change and biodiversity loss. Prioritizing short-term, high yields has resulted in significant damage to agricultural land, neglecting the value of natural capital.

In 2012, the Beverage Industry Environmental Roundtable (BIER)*¹ disclosed research on carbon emissions and product lifecycle. The research revealed that when analyzing the carbon footprint of one beer (bottle or can), malt accounted for 39% in Europe and 33% in North America. Additionally, data obtained by the Lion Group indicates that barley farming is a significant contributor to Scope 3 emissions. Therefore, addressing barley farming sustainability should be a priority for decarbonization as well as natural capital regeneration.

Conserving soil health through regenerative agriculture

This is why we have been making inroads to support farmers who incorporate regenerative agricultural practices into barley and hop farming. Regenerative agriculture aims to maximize the potential of the soil by leveraging natural cycles. Instead of prioritizing yields and exploiting soil nutrients, this approach focuses on the long-term health and sustainability of the land & community fostering rich and resilient soil.

Specific methods vary among farmers and their location, but it is widely accepted that regenerative practices include a combination of sustainable farming practices, such as reducing the use of agrochemical fertilizers and pesticides, implementing soil nutritional programs, cultivating cover crops*², no-till farming*³, etc. In addition, there are other instances where renewable energy is implemented or manure products from livestock are used as compost. Regenerative agriculture can contribute to carbon capture and storage within the soil, enhanced moisture retention, and mitigation of environmental pollution.

Community-based beer utilizing sustainable ingredients

We are starting to incorporate sustainable grains produced through regenerative agricultural practices into our beer brewing. Lion has set forth a Responsible Sourcing Code, and our major brand, Stone & Wood, in particular has a strong focus on using sustainable ingredients as a trailblazer for sustainability among Australian brewers.

Back in early 2022, we started experimental brewing with sustainable grains at our Northern Rivers Brewery in Byron Bay, Australia. Starting with small-scale efforts, we gradually expanded, culminating in the release of our Northern Rivers Beer in 2024. It is an easy-to-drink lager, made from 70% Certified Sustainable malt and 100% Certified Sustainable hops. It was only brewed in small batches, but for us it is definitely a meaningful step.

With the intention of initially promoting it locally, we distribute the product between Tweed Heads and Yamba on the NSW coast. We have received really positive feedback so far from the local community.

Our involvement with regenerative agriculture goes beyond brewing. By leveraging our influence across the craft beer industry, in 2024 we will be launching our “GOOD GRAIN” industry development initiative – co-funding 4 separate regenerative agriculture grain projects in collaboration with a leading Australian Regen Ag not-for-profit and contributing $25,000 via our Ingrained Foundation, a not-for-profit funding platform. We are striving to create positive change for the cereal grain industry as well as the broader farming industry, such as cultivating optimal procurement pathways for producers and raising society’s awareness of regenerative agriculture and its positive impact.

Expanding sales of sustainable products while positively impacting the industry

To genuinely understand sustainable ingredients, it is essential to learn about producers’ initiatives and their effects. This is why we visit barley and hop growers face-to-face and ask about their regenerative practices. Part of our role is to share stories about the background and significance of these products with the market. This type of communication adds value to the products and generates economic benefits for farmers’ communities. For farmers, knowing that consumers appreciate their produce brings a sense of meaning and pride. It even motivates them to make more investments, change their agricultural methods, and further expand regenerative farming practices.

Moving forward, we will contribute to growing the demand and popularity of products like Northern Rivers Beer by procuring sustainable ingredients and emphasizing their significance to stimulate consumer curiosity, provide a pathway for reducing their impact on the environment, and support local business. At the same time, with a broad perspective on the entire market as someone with a certain amount of influence, we will role model best practice and establish precedents with the goal of driving change throughout the craft beer industry. We believe that these efforts will send a positive message to investors and society as well, leading to natural capital regeneration and a healthier planet.

1. BIER: A technical coalition of leading global beverage companies working together to advance environmental sustainability within the beverage sector.
2. Cover crops: Plants that are deliberately grown to prevent fertilizer runoff, soil erosion, and weeds.
3. No-till farming: An agricultural method that avoids tilling to preserve ecosystems and retain carbon and moisture in the soil.