Innovation

Since the industrial revolution, companies have managed their processes and goals under the panoramic of the linear economy model (take, make, and dispose). This model is based in the use of large quantities of cheap and easily accessible materials and energy, and it has approached its’ physical limits. This is the reason the leading Mexican brewery, Cervecería Cuauhtémoc Moctezuma HEINEKEN, has decided to seize the “Phoenix bird” philosophy: reborn from the ashes; reuse that which in a linear economy would be considered waste.

This disruptive model is called a circular economy, it consists in a continuous cycle of positive development that preserves and improves the natural reserves, optimizes the use of the resources, and minimizes the system risks by maintaining a finite quantity of stocks and renewable flows.

Thanks to this model, Cervecería Cuauhtémoc Moctezuma HEINEKEN, as a corporate social responsibility enterprise, has planned to reduce its emissions of CO2, protect the water, ensure a responsible reservoir, and practice intelligent consumption while contributing to the community's health and safety for the year 2020.

This model of circular economy has 6 pillars, called “RESOLVE”:

RE: Regenerate through alternative energy, renewable materials, return to the biosphere what’s beneficial.

Share: Maximize the assets.

Optimize: Based on the TOYOTA model.

Loop: Close the circle by means of recycling or anaerobic digestion.

Virtualize: Assure fewer emissions and waste by virtualizing services and processes.

Exchange: Question what is obsolete to a process and replace it.

Inspiration

A broad range of companies, such as Cisco, Google, H & M, Intesa Sanpaolo, NIKE, Philips, Renault, and Unilever among others, inspired the brewery group to incorporate the circular economy school of thought in its processes and join the Ellen MacArthur Foundation, becoming the first Mexican company in the foundation.

The LIC. Ricardo Weigend Rodriguez Coordinator of Sustainability within the Vice Presidency of Logistics and Customer Service, alongside the CEO Dolf Van den Brink, started gradually replacing the processes, in all areas, with a circular economy philosophy. They involved their employees throughout this change by means of courses, visits, and workshops that demonstrated the importance and areas of opportunity of applying the innovation.

Overall impact

Cervecería Cuauhtémoc Moctezuma HEINEKEN emphasizes the right for all to share progress. This is why they encourage their employees to participate in the circular economy movement through "The Nudge Global Leadership Challenge" that isn’t only about employees implementing processes, but a 'community' generating synergy, developing innovation, and creating added value. In turn, they are lifted to create profits for the company that translate in good pay and above all, the satisfaction of contributing ideas to the protection of the environment. Therefore we can say Cervecería Cuauhtémoc Moctezuma HEINEKEN offers decent work and economic growth since it is highly above average in terms of salary, benefits, work conditions, and growth opportunities.

Business benefit

Chief Executive Jean-François van Boxmeer states: "Sustainability is both a strategic priority and a business imperative for the Company." "If the communities and societies where we operate and where we sell our products are strong then our business has a chance to grow."

With the implementation of the circular economy, the brewery group has touched different areas of impact, such as primary activities from within the supply chain and up to promotion processes. The brewery has helped employees maintain awareness inside and outside of work by engaging in activities of innovation and care for the environment.

On an enterprise level, more than 30 processes were made efficient (from 3 weeks to 3 days). Its income has increased and it currently saves in reusing materials (e.g. returnable bottles are used up to 15 times).

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Social and environmental benefit

Returning to the topic of "The Nudge Global Leadership Challenge" (where professionals from all around the world compete and share their business innovation ideas over 3 days in Holland), as a result of this project the company obtained several solutions to the question they raised “How can we be 100% established with the circular economy innovation?”. Ideas such as the sale of waste (the tags used in the recycled bottles can be sold to other companies for manufacturing egg carton), or how to increase sales by reusing publicity banners and producing other products from these. One of the best proposals was the "circular uniforms" project that consists in reusing the old uniform materials to make new ones.

In regards to environmental protection, they contribute to clean water and sanitation by reducing their use up to a 5% per hectoliter produced. They also seek to address the anaerobic diffusion and the significant balance of water in areas of water stress through alliances.

The company optimized its distribution routes, exchanged fossil fuels for diesel, altered packaging, and replaced traditional coolers with coolers from Eco-Friendly. As a result, the group reduced its’ carbon footprint by 10%, their CO2 emissions decreased by 40% in production, 50% in refrigeration and 20% in distribution.

Due to the large-scale production that the company has, they are aware that any change in favor of improving the current state of the planet is of great impact and it is a priority to have a process that is aligned with the global goal of climate action.

In matter of responsible consumption of resources Cervecería Cuauhtémoc Moctezuma HEINEKEN participated in a training program for farmers through Impulsoa Agrícola S.A. (IASA), the implementation of conservation farming, and a local supplier development program. Regarding their products, they attended to the 3 main problems linked with the harmful alcohol use listed by the World Health Organization (WHO): excessive alcohol consumption, driving under the influence of alcohol and underage consumption.

After analyzing the main global goals that Cervecería Cuauhtémoc Moctezuma HEINEKEN takes action on such as decent work and economic growth, clean water and sanitation, and climate action, we are proud of this brewery group that we choose to investigate and to spread this disruptive innovation because we believe that all the ideas can be replicable but they must be open and shared. That’s how you become an icon; you are a model to imitate, and you generate trends.

Interview

LRI. Ricardo Weigend Rodriguez, Coordinator of Sustainability within the Vice-Presidency of Logistic and Costumer Service