Special Day: Day of Workplace
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CSD-4: Special Day: Day of Workplace |
SummaryNeumarkter Lammsbraeu is an 80-employee brewery located in Bavaria, a German region which has a strong tradition for beer. At the beginning of the 1970s, agriculture in the region was becoming increasingly intensive, brewers were sacrificing the quality of their beer for quick and high returns on sales, and water, the most important raw material for brewing, was highly polluted. Neumarkter Lammsbraeu wanted to safeguard the quality of its products and develop a strategy for success. The company realised that it needed to integrate all areas of the brewing process into its management strategy; from the cultivation of raw materials, to the sale of the end product. Since then a holistic management approach has been carefully developed, which includes environmental protection, worker involvement, product quality, the development of strong links with supplying farmers, and social responsibility. The growth of organic farming in the region has been directly supported by Neumarkter Lammsbraeu. Over the years, the company has developed guidelines for organic farming, and developed its own life-cycle analysis and eco-controlling procedures. Since 1993, the company has published an annual environmental reports. The company has also been certified under the quality standard ISO 9001 and the European Union Eco-Management and Audit Scheme, EMAS. Neumarkter Lammsbraeu has led the way for many SMEs in Germany and is continuing on with its pioneering efforts. Country contextEnvironmental protection has gained in importance over the last few years in Germany. Of course, industry and businesses have not remained unaffected by this, and environmental protection has penetrated into these areas, unfortunately, however, often only as an image-making tool. However, the economic situation in Germany has changed greatly since the beginning of the 1990s: economic depression and increasing unemployment are constantly in the headlines. Now, in times of economic crisis, cost-cutting is becoming a priority in companies, and environmental protection is often the first area in which savings are made. Sector descriptionGermany is a country renowned for its beer. The German brewing industry bases its central marketing strategy on the purity law which was introduced in Bavaria, Germany in 1516. Over the last twenty years, the German, and in particular the Bavarian brewing industry, has been characterised by a strong movement towards concentration. This development has not left Bavaria, traditionally a beer brewing state, unaffected. Although total beer sales have remained unchanged, many small and medium-sized brewers have had to shut down operations in favour of a small number of large brewers. Production is increasingly concentrated within fewer and fewer companies. Over the last decade the number of brewery closures has been between 30 and 50 per year. The advantages of a decentralised sector structure have been inevitably lost and environmental damage is on the increase. Company descriptionThe Neumarkter Lammsbraeu brewery has been in the Ehrnsperger family since 1800. Today the brewery is run under the sole proprietorship of Dr. Franz Ehrnsperger. The brewery employs 80 people. With a yearly turnover of 17 million DEM, and a drinks output of approximately 80,000 hl, Neumarkter Lammsbraeu is a typical medium-sized Bavarian brewery. The main distribution area of Neumarkter Lammsbraeu is the Upper Palatinate region of Bavaria and the Nuremberg/Fuerth/Erlangen conurbation. 50 per cent of customers are in the gastronomic trade, 35 per cent are specialist shops, and the remaining 15 per cent of customers includes canteens and health food shops. Due to its rural location in the Upper Palatinate region, the brewery is close to the farmers who supply it with raw materials such as hops and barley. In addition to this the brewery has its own well, which has a water quality ”of unspoilt purity”. Driving forcesNeumarkter Lammsbraeu recognised at an early stage that a long-term strategy was needed to enable them to survive the sectoral concentration trend. By making the decision to operate in an ecological manner as early as the 1970s, the brewery succeeded in becoming a pioneer in its sector. The original aim of the business concept developed by Dr. Ehrnsperger at the end of the 1970s was to survive the continuous and stiff competition going on within the brewing sector, and to safeguard the company‘s long tradition for quality. It was soon apparent that these aims could not be achieved through traditional linear thinking, but only through the adoption of a holistic approach. All areas affected by the company were to be considered, especially environmental protection, to which as a foodstuffs manufacturer, Dr. Ehrnsperger felt particularly committed. This commitment can be traced back to the centuries-old tradition of the purity law mentioned below. The purity law is the world’s oldest foodstuffs law, and is now also applied in the area of consumer rights. The concept developed by Neumarkter Lammsbraeu in the 1970s aimed to go beyond the understanding of ”pure beer” as defined by the German law. For Neumarkter Lammsbraeu the purity law meant that the company had to integrate all areas of the brewing process into its management strategy; from the cultivation of raw materials, through all steps of the production process, to the sale of the end product. The brewery was also influenced by trends in the primary sector. The situation of the raw-material sector in Germany in the 1970s was characterised by modern agricultural technology: the use of chemical fertilisers to increase yield, and the use of pesticides. Hops were seen as the greatest problem area given their weakness against parasites. The opinion in expert circles was that one could not do without chemicals in agriculture. The entire industry was geared, from raw-material production to beer-brewing, to achieve a quantitative growth, with optimal sales prices, and maximum returns. The move towards intensive farming has been greatly responsible for water pollution. Water is the most important raw material for the brewing process. In the context of the changes in agriculture, and the resulting environmental degradation and damage to raw materials, the brewery wanted to explore alternatives for its operations. They felt that business principles previously formulated were outdated and that new business guidelines needed to be formulated, guidelines which consider the interest of all participants in society and not those which supported purely linear quantitative growth. The holistic management system developed by Neumarkter Lammsbraeu, was the result of years of learning experience, and is a dynamic system, constantly developing and being improved. This business approach distinguishes the company from other brewers and Neumarkter Lammsbraeu has been able to create its own ecological market niche. Problem definitionThis new ecological orientation could not be achieved overnight. Using an integral approach which took account of the farmer, the brewer and the beer-drinker, the brewery was able to implement strategies step-by-step. The brewery considered an extended form of the Bavarian purity law, which has prescribed the raw materials which may be used for brewing beer for over 400 years - a law which, in this form, is unique world-wide. Neumarkter Lammsbraeu’s motto is ”the purity law is applicable from the field onwards” - this goal was fully achieved last year when the brewery changed over to ecological production methods for its ninth type of beer. The main areas to be tackled were outlined by the brewery follows:
The strategic aims of the company developed on the basis of the above are:
Implementation of environmental measuresIn order to brew organic beer, organic raw materials must be used. This is where the first problems were encountered: at the beginning of the 1970s the ecological orientation within the agricultural sector was still in its infancy. In the entire Neumarkt district there was not a single organic farmer. Neumarkter Lammsbraeu employees and an agricultural engineer were employed especially to convince the farmers that organic farming is worthwhile. The brewery benefited from the fact that it made direct supply contracts with the farmers. The farmers in turn benefited by having a guaranteed market for their organic raw materials. The experiences gathered in the early years were often painful. Neumarkter Lammsbraeu had to part with those employees, partners and customers, who were not willing to accompany it on its path to sustainable business. The first small-scale attempts to brew organic beer were made in the brewery’s subsidiary, Hausbrauerei Altstadthof in Nuremberg, in the early 1980’s. The Neumarkt parent company was only able to change over to fully organic raw materials, and therefore, to 100 per cent organic production, after a few years. The German purity law only permits malt, hops, yeast and water to be used for brewing. However, the law says nothing about the quality of the raw materials. At Neumarkter Lammsbraeu the barley and hops are all supplied by organic agricultural sources. Malt and yeast are processed in the brewery itself, and water is used from the brewery’s own well containing water ”of unspoilt purity”. Artificial fertilisers, chemical pesticides, sulphurized hops, hop extract and hop powder are not used at Neumarkter Lammsbraeu. In contrast to other brewers, Lammsbraeu does not permit the use of protein stabilisers and preservatives such as silicic acid preparations. At the same time the whole company was examined for ecological weak points in order to achieve the set objectives and to arrive at what could be described as an integral system. The key points here were:
Heavy heating oil was replaced by environmentally-friendly natural gas to supply the remaining energy. The greatest environmental weak-point today is the fleet of vehicles: 15 lorries still use diesel. By the year 2000 the brewery aims to have changed the fleet of vehicles over to vegetable oil. Various measures introduced in the last few years have helped the brewery to constantly make ecological improvements. A first summary of its experiences was published in the brewing guidelines in 1989. After the life cycle analysis (LCA) development in 1991, the introduction of eco-controlling in 1993, the establishment of quality management system, Neumarkter Lammsbraeu achieved certification under the European Union Eco-Management and Audit Scheme (EMAS). The following gives an overview of the main elements of the brewery’s implementation strategy. Guidelines for the brewing of beer from eco-farmingNeumarkter Lammsbraeu was the first brewery to establish criteria for the brewing of beer from eco-farming in order to document a uniformly-orientated brewing philosophy. At the time of publication of these guidelines a legal framework for eco-foods did not exist. When European Union legislation was introduced in this area, the brewery’s guidelines retained their validity. Goods flow controlWith the help of an information technology (IT) supported goods flow system the entire production process, from seed choice to delivery of the finished beer, is under the company’s control. Life cycle assessmentAn LCA procedure was developed with the support of the Bavarian Department of the Environment, and in co-operation with an environmental management consultant, and the University of Nuremberg. The procedure features a systematic and comprehensive weak-point analysis of the business. From cultivation to production and logistics, all steps are evaluated. Eco-controllingOn the basis of the first LCA an eco-controlling report was presented for the first time in 1993. The aim was to check and analyse environmental performance in relation to aims set out following the LCA. The prerequisite for the introduction of this system was the in-house developed IT system. Integration of quality management into company environmental protectionIn 1994 Neumarkter Lammsbraeu decided to introduce a comprehensive quality management system according to ISO 9001. The company interprets quality not just as product quality, or meeting customer’s demands, but as a comprehensive term, which includes the protection and conservation of the environment. PartnershipsExperienced consultants were engaged to assist with the implementation of the measures described in Section 5: Mr. Rudi Schreiber for marketing, Professor Hardy Vogtmann for scientific developments and Professor Volker Stahlmann for methodology. A company environmental committee was established, consisting of 13 environmental officers, to accompany the introduction of the central management tool eco-controlling. Since 1995 Neumarkter Lammsbraeu has had an environmental consultant who co-ordinates and manages the continuous improvement process in liaison with the management. Over the years the brewery relied heavily on the co-operation with its own employees. Developments would not have taken place so quickly and successfully if the employees had not been convinced that the brewery had taken a step in the right direction, and had not shown their commitment and willingness to take on responsibility. Due to training and information provision the employees became the management’s most important partners. The workforce is informed about the latest developments in environmental protection and participates regularly in internal and external vocational training. An eco-library has been made freely available to each member of staff. Suggestions for environmental improvements are incorporated into the company’s programme. Staff members of the brewery are present in all working parties. The exchange of operational problems and experiences helps management to avoid entrepreneurial blindness and broadens the intellectual horizons. Environmental protection forms a part of every employment contract today. Extract from a Neumarkter Lammsbraeu employment contractEnvironmental ProtectionThe protection of nature and the environment is one of the main aims of our brewery. Each member of staff undertakes to comply with all directions given to him/her concerning environmental protection at his/her workplace in addition to what he/she is individually aware of. The staff member will inform his/her superior or the relevant environmental officer immediately of any known violation against the environment. Each member of staff can be made liable for any damages that have been deliberately unmentioned. It is a matter of course for each member of staff at Neumarkter Lammsbraeu to actively take part in environmental operations and to contribute suggestions for the improvement of the company’s operations. The company has developed various measures for extensive external communications. The annual publication of an environmental report shows the public exactly how much progress is being made. The company also has an opportunity to report on its experience and conviction in its press and public relations work, lectures for students and other interested parties. In addition, Neumarkter Lammsbraeu attends all major trade fairs and welcomes visitors into the brewery. From the beginning of environmental protection at Neumarkter Lammsbraeu, farmers were seen as the partners of the brewery. An agricultural engineer, employed by the brewery, developed farming strategies for individual farms to switch from conventional to organic farming. The engineer is no longer needed as the farmers have gained enough knowledge and experience to be able to continue on their own. Neumarkter Lammsbraeu farmers are now joined in their own regional producer group (EZOEB, Erzeugergemeinschaft ökölogischer Braurohstoffe). Continuous support is extended to these farmers by the brewery’s raw material expert. Fair contracts for barley, wheat and hops ensure a continued successful partnership. The initial conflict of interests with the brewers’ association and political circles has subsided. Ecology has, in the meantime, become a subject of interest for both brewers and legislators. When Neumarkter Lammsbraeu started with active environmental protection, it was unable to count on any support whatsoever. Successive companies have experienced fewer difficulties due to the legal and financial framework given and a higher public awareness of environmental problems. ResultsThe brewery has achieved great internal and external advantages with its development of environmental strategy. Employees greatly identify themselves with the company, creating a highly committed team with very low fluctuation of personnel. Numerous awards have not only increased motivation, but have ensured that Neumarkter Lammsbraeu is known beyond Germany. Below are examples of various awards which Neumarkter Lammsbraeu has received in recognition of its pioneering efforts:
Due to the higher costs of cultivating organic raw materials, the end product, beer, also increases in price. However, consumers are now willing to pay a higher price for impeccable organic products. Due to this recognition from its customers, the company has been able to defend its position on the market and withstand the sectoral move towards concentration. The brewery’s consistency has paid off in the long run. It has found its ecological and economical niche, whereas other breweries are closing down in Bavaria. Neumarkter Lammsbraeu has invested approximately 2 million DEM in environmental protection during the last few years. Seen over a period of years this financial commitment has reaped benefits: Neumarkter Lammsbraeu has not been driven out of the market and is in a strong position economically. And last but not least, it is practising effective environmental protection: each crate of organic beer protects 7m2 of land. In 1989 and Neumarkter Lammsbraeu became a member of the German Environmental Management Association (BAUM, Bundesdeutscher Arbeitskreis für umweltbewußtes Management). BAUM is an environmental protection organisation set up by entrepreneurs in 1987, which aims to help companies to combine environmental friendliness and business success in their management. Since 1991, similar industry associations for environmental management have been established in countries across the world. In 1991, the International Network for Environmental Management (INEM) was founded to co-ordinate co-operation and information exchange between such associations. BAUM provided the main inspiration and was the first member of INEM, which now has 35 affiliate associations in 30 countries in the five continents. September 1994 the working group for eco-foodstuff producers (AÖL, Arbeitskreis ökologischer Lebensmittelhersteller) was established in Munich. The founding groups were HIPP (baby foods), Hofpfisterei (bread and pastry) and Neumarkter Lammsbraeu. Entry conditions are excellent performance in the area of environmental protection and ecology. The aims of this working group are to exchange knowledge and experience gained in the area of ecology, especially organic farming, and to reach new understanding and synergy. The futureWhat Neumarkter Lammsbraeu has achieved in its pioneering role is not only possible for other companies, but is also crucial when seen on a global scale. Environmental protection is becoming increasingly important. However, further measures for practising environmental protection in companies can only be taken if technology is constantly further developed. Technicians who have internalised the thought of environmental protection and have practical experience in putting these thought processes into practice, are needed to achieve this. Entrepreneurial courage is vital for developing visions and for being consistent in following through with them. The Neumarkter Lammsbraeu example does not have to be an exception, but is practicable world-wide especially for other breweries, but also for companies from other sectors. The employees and management at Neumarkter Lammsbraeu believe that it is vital to take responsibility for protecting the environment! For further information contactDr. Franz Ehrnsperger |