Circular Economy Initiatives: Strategic Implications, Resource Management, and Entrepreneurial Innovation in a Brazilian Craft Beer Ecosystem during the COVID Era

Abstract

A new brewery is founded in Brazil every two days. Yet with climate change, drinking water is increasingly scarce. Previous studies have begun exploring the brewing industry, but an examination of circular economy initiatives in Latin America is lacking, particularly during the COVID era. This study analyzes strategic implications of circular economy initiatives, together with their role in the coevolution of the craft beer sociotechnical system in Brazil from a resource perspective during the COVID pandemic. Using a qualitative methodology based on analytic induction, 11 in-depth semi-structured interviews were carried out with key actors from the craft beer sociotechnical system in Guarapuava. For the content analysis, we triangulated the interviews with an analysis of 74 related documents. We found evidence of circular economy practices and sociotechnical transitions with the simultaneous coevolution of the system actors. Increasing rejection of the linear take–make–waste economy was observed as subject organizations largely adopted a regenerative model reducing operational waste. Hence, entrepreneurial innovation was apparently crucial for resource allocation during the COVID era. This work contributes to further understanding resource configurations in the circular economy, with practical implications for integrating sustainability into strategy, business models, and production.