Creative Ways Beverage Companies are Reducing Their Carbon Footprint
Beverage alcohol has a sizable carbon footprint. The global alcoholic beverage industry produces about 1.5 gigatons of greenhouse gas emissions annually, which is comparable to the emissions of around 276 million cars, according to a Manchester University Study conducted in 2020.
Everything from growing the ingredients needed for fermentation, manufacturing and packaging to fuel used to ship these products around the world all contributes to climate change. However, many wholesalers and suppliers are implementing sustainable practices to help offset their carbon footprint.
Republic National Distributing Company (RNDC), for example, has a sustainability plan in place that the company is actively working on to reduce its carbon footprint. The plan includes four pillars:
1. Sustainable Fleet and Electrification Identification Opportunities to strategically transition to a more sustainable fleet and identify innovative solutions for cleaner fuel.
2. Renewable Energy and Facility Exploration solutions to reduce energy demand and diversify the energy supply to clean sources of energy that have a lower environmental impact.
3. Circular Economy and Waste Commitment to sustainable waste management and protection of natural resources by reducing, recycling and reusing.
4. Supply Chain Engagement and Partnering with suppliers and customers to understand indirect emissions better and identify ways to reduce supply chain emissions.
In addition to these steps, RNDC’s HR manager of supplier excellence and growth and eCommerce Camille Davis says the company also aims to actively contribute to industry-wide sustainability conversations by sharing the knowledge they’ve gained on their sustainability journey.
“Recently, we participated in a panel discussion led by the International Wineries for Climate Action, where we had the opportunity to share insights and learn from others in the industry,” she says.
Partnering with suppliers is very beneficial to RNDC’s employees, teaching them what it means to be a sustainable brand. “We regularly invite guest speakers to share their expertise and experiences related to sustainability, certifications and production processes. This ensures our associates understand what differentiates these brands on shelves and menus,” notes Davis.
Moving Towards E-fleets
Shifting towards electric fleets provides a plethora of benefits to wholesalers aside from just reducing their carbon footprint. It also helps offset shipment costs.
Mike Bratcher, vice president, operational transformation, Southern Glazer’s Wine & Spirits, suggests that optimizing delivery operations helps distributors better align with current market struggles. In fact, it’s a strategy that the company itself is employing.
“One strategy we are increasingly exploring is fleet diversification,” Bratcher says. “We have opportunities to leverage more vans and non-CDL vehicles in geographical areas where reaching capacity on a standard CDL truck is challenging. This approach aims to lower costs and gain efficiency.
Breakthru Beverage Group is another wholesaler currently working on electrifying its fleet.
“With our partners and customers, we strive to promote broad-reaching sustainable industry practices,” says Melanie Lundberg, vice president, talent management, Breakthru Beverage Group.
“Our Operations leadership is committed to measuring our environmental impact to establish a baseline to set targets for improvement and future progress, while also identifying ways to limit our environmental impact, such as waste reduction, fleet emissions reduction and energy efficient warehouses,” she continues.
In October of 2024, DHL and Diageo North America incorporated two fuel cell electric trucks, powered with hydrogen, to their U.S. fleet. The hydrogen fuel cell electric trucks are part of a broader sustainable supply chain strategy for both companies that includes the use of battery electric vehicles, optimizing vehicle usage and routes, shifting to a multimodal approach and increased use of US EPA SmartWay partner carriers. These efforts have resulted in year-over-year reductions in carbon dioxide emissions for both Diageo and DHL.
“We are extremely excited to be a part of this partnership delivering the first set of heavy-duty hydrogen trucks to Illinois, home to our largest manufacturing hub in North America. This initiative is part of our continued work to decarbonize our footprint in Plainfield, Illinois making our operations more efficient and sustainable,” said Marsha McIntosh, president of North America Supply at Diageo, in a statement.
YMX Logistics, a provider of outsourced yard logistics, actively works with beverage wholesalers to provide them with EV yard trucks so they can reap the benefits. Matt Yearling, CEO at the company, lists some additional benefits of switching to electric vehicles:
1. Cost Reduction. Fuel and maintenance costs are two of the most significant operational expenses in yard management. Diesel yard trucks require constant refueling, oil changes and mechanical repairs, all of which add to operational overhead.
2. Sustainability. Enterprise shippers are under increasing pressure to reduce their carbon footprint and align with corporate sustainability commitments. According to the EPA, every gallon of diesel burned emits 22.4 pounds of CO₂. Replacing 50 diesel yard trucks with EVs can reduce CO₂ emissions by over 1,000 metric tons annually—the equivalent of removing 200 to 300 passenger vehicles from the road.
3. Operational Efficiency. Diesel yard trucks’ inefficiencies go beyond fuel consumption and emissions. They also suffer from mechanical failures, idle time and maintenance downtime, which can disrupt yard flow and supply chain continuity.
4. Employee Well-Being. Employee retention and workplace conditions are critical in today’s labor market. Diesel yard trucks contribute to high noise levels, air pollution and worker fatigue, all which impact employee satisfaction and turnover rates.
“While the benefits of EV yard trucks are clear, the transition is not as simple as replacing diesel vehicles with electric alternatives,” notes Yearling. “Enterprises must navigate fleet procurement, infrastructure investment, regulatory requirements and operational integration—challenges that can slow adoption and create unnecessary risks.”
The transition to EV yard trucks is no longer a question of ‘if’ but ‘when.’ Forward-thinking wholesalers that act now will gain substantial financial, environmental and operational advantages over those who delay.
Going Solar Helps Reduce Your Carbon Footprint
Utilizing solar panels to power operations is another eco-friendly option to help reduce your carbon footprint. This is also a goal of RNDC, with Davis stating that the company is working on implementing LED lighting retrofits in 14 locations as well as reducing kilowatt/hour usage by 20%.
“RNDC is partnering with ProStar Energy Solutions to install solar systems at two locations: Lubbock, Texas and Ashland, Virginia,” says Davis. “In Ashland, we will be cutting our KWH’s annually from 2M to 285K and generating 70% of our energy from solar. In Lubbock, we will be cutting our KWH’s annually from 513K to 205K and generating 60% of energy from solar. We will be saving 2.023M KWHs annually.”
In 2025, Davis also notes that RNDC will be working closely with CBRE (owner of RNDC’s Tracy CA facility) to add solar and reduce the hours they are on the CA grid. “The goal will be to be solar powered from 4pm. to 9pm., which is California peak energy usage time,” she says.
Wholesalers aren’t the only companies working on increasing their solar usage. Many suppliers, including California-based Firestone Walker Brewing Company, are adding solar panels to their plots.
Firestone Walker’s solar array offsets 1,210 metric tons of carbon emissions annually and recaptures 4.4 million pounds of CO2 yearly, according to the company. By the end of 2025, the solar arrays will power 60% of the brewery, generating 5 million kilowatt hours annually.
“Although technology is constantly improving the brewing process and efficiency, it is merely incremental, principally because brewers have been focused on these sustainable processes for centuries,” says Firestone Walker co-founder David Walker.
“That said, any new technology adds to an already heavy capital burden that an Old-World production format like a brewer demands,” he continues. “The brewery needs to be financially healthy and working within its limits to afford some of these innovations. There needs to be a culture and commitment to reducing waste and repurposing materials such that long-term investments are supported.” The more companies focus on reducing their carbon footprint, the better off we are leaving the earth. By taking on some of the above tactics or trying some of your own, you can do your part in being more sustainable.
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