Sustainability and branding in the craft beer industry: a study of breweries in Spain

Beer is the third most widely consumed beverage globally, following water and tea. In Spain, the beer industry has experienced significant growth, with the country becoming the second-largest producer in the European Union in 2022. Within this industry, craft beer has gained traction, appealing to consumers through its emphasis on innovative branding, local ingredients and sustainable brewing methods. The craft beer sector now boasts over 420 breweries with nearly 4,000 unique recipes, marking a remarkable rise from just 70 producers in 2010.Despite this growth, craft beer businesses face significant challenges in the marketplace. In Spain, for instance, many small-scale breweries have shut down due to their inability to compete with larger brewers in terms of price and distribution. Additionally, some brands have been acquired by larger brewing companies. This raises an important question of how craft beer breweries can differentiate themselves in an increasingly competitive market.Prior research suggests that craft beer brands use territorial branding to connect with their audience. Additionally, many breweries adopt sustainable practices such as using renewable energy, reusing water in production and reducing waste to develop a green identity that resonates with many consumers. In this paper, García-Chamizo et al. (2025) examine these strategies by analyzing the practices of 42 craft beer breweries in Spain.Territorial branding refers to a strategic approach whereby a brand connects its identity with the culture, history and geographical characteristics of a specific place. In the craft beer industry, this may involve developing a brand narrative that highlights the brewery’s local identity, cultural heritage and connection to its place of origin. This strategy helps brands cultivate an authentic image and build a stronger emotional connection with customers. In this way, territorial branding allows craft beer brands to differentiate themselves from mass-produced alternatives and appeal to both local and global consumers.Sustainability is a key focus in the craft beer industry, with many breweries adopting eco-friendly practices to reduce their environmental impact. Common initiatives include water conservation measures, waste reduction strategies and repurposing brewing byproducts. Breweries may also focus on sustainable packaging, sourcing local ingredients and adopting other circular economy principles. These efforts not only contribute to environmental sustainability but also serve as a valuable branding tool. By integrating sustainability into their operations, craft breweries appeal to consumers who prioritize ethical and environmentally responsible products.To provide a deeper insight into branding and sustainability initiatives in this sector, the authors examine 42 craft breweries in Spain. They analyze how these businesses incorporate territorial branding and eco-friendly practices to strengthen their brand positioning. Some of their key findings and implications are now discussed.The research finds that many Spanish craft breweries incorporate territoriality into their branding. For instance, more than half of the breweries used topographical, historical and cultural references in their brand identity elements. The authors argue that such strategies reinforce authenticity and develop a strong connection with local consumers.The study also identifies a range of sustainability practices implemented by the 42 breweries. Many breweries use renewable energy sources such as solar panels and optimize energy efficiency in production, storage and delivery. Water conservation initiatives are also a focus, with some breweries reusing water in brewing processes, while others emphasize the use of local spring water to highlight regional distinctiveness. Waste reduction efforts include repurposing brewing byproducts. For example, some breweries use spent grain for livestock feed and hops for compost. Certain breweries adopt circular economy principles by incorporating surplus bread into beer production to minimize food waste. Others prioritize sustainable packaging by using biodegradable materials or reusable glass bottles to reduce plastic consumption.The research found that the breweries relied heavily on marketing, advertising and public relations to build brand awareness and connect with consumers. Packaging played a crucial role, with many breweries incorporating territorial elements in their designs. Some brands developed limited edition packaging for regional events or traditions. For instance, one brewery launched special edition cans to celebrate a regional football derby. Breweries also used direct consumer engagement and events to promote their offerings. For example, some breweries arranged tours where master brewers explained the production process and hosted tasting sessions. Others collaborated with organizations and took part in special events for beer launches. Such participation helped breweries generate media coverage and strengthen their connection with the community. Breweries primarily relied on social media, particularly Instagram, for their marketing communications. Their advertising campaigns often reinforced territorial identity, such as by producing content in regional languages like Catalan and Basque. Breweries also integrated sustainability into their messaging, highlighting eco-friendly production processes, the adoption of renewable energy and recycling initiatives.Based on their findings, the authors offer the following implications for practitioners and policymakers.This review is based on “Sustainable branding and innovation in the craft beer sector” by García-Chamizo, Ávila Rodríguez-de-Mier and López-Agulló Pérez-Caballer, published in the British Food Journal.