Case 25: New Belgium Brewery: Defining a Business on Sustainability
1. What are the ethical issues in this case?
What environmental and social responsibilities does a business have? How does a company
2. What keeps other companies from having the commitment to environmental sustainability that
NBB has evidenced?
As noted in the case, many of the environmental initiatives are costly for the company. NBB now
powers its brewery solely with wind energy in an effort to reduce its carbon footprint; the use of
this type of technology requires the company to pay a 57% premium over its previous electricity
bills. The company also invested $1 million into energy-sparing equipment. The company is able
3. Are you more likely to purchase a product from a company with a strong commitment to
sustainability?
I am more likely to purchase a product from a company with a strong commitment to
4. The benefits of cans over bottles are unclear. Has NBB done the right thing by focusing more
on canned beer? Should NBB continue to make a greater commitment to cans? What additional
options can NBB explore in the future?
The company must balance the benefits of using cans over bottles. Although the environmental
benefits are unclear, there are positives that make the use of cans attractive and a viable way
5. Are New Belgium Brewing’s core values and beliefs sustainable?
6. How do employee stock ownership plans (ESOPs) align with the sustainability goals of NBB?
NBB’s commitment to sustainability is furthered by its employee stock ownership plan and
furthers the goals established by its founders; e.g. the two core concepts of social responsibility
7. Do you think that the sale of New Belgium Brewing Company would affect the company’s
sustainability focus if they lost their independence and were taken over by a large brewing
company?
Yes, if the company is sold it is doubtful that the sustainability focus by founders will continue to