Objective
Explanation & example
The business model aims to systematically capture potential waste and by-products from primary production and convert them into economically viable resources.
Through planned and creative recycling, waste streams are not created, but rather value-adding by-products.
This leads to:
- More efficient use of resources through the full utilization of the raw materials used
- Cost reduction through reduced disposal costs and fees
- Creation of sustainable added value through new sales markets and product ideas
This transforms the classic waste problem into a circular-oriented business model that combines ecological responsibility and economic benefit.
The objective can be explained as follows:
The business model focuses on the very place where traditional production processes generate leftovers, rejects, or byproducts that are typically considered waste and disposed of. Instead of disposing of these materials, they are identified early, separated, and processed so that they can serve as raw materials for new products.
The idea behind this is the circular economy:
- Resource conservation, because existing materials are not lost unused
- Cost savings, because disposal costs are eliminated and potentially even new revenue is generated
- Competitive advantage, because companies can score points with sustainable, innovative value creation
In this way, a potential disposal problem is transformed into an additional source of income and a boost to the company's image as an environmentally conscious company.
The goal is therefore not only ecologically motivated but also clearly economically sound - a typical "win-win" approach.
The business model aims to capture spent grains from beer production and convert them into an economically viable resource. Using spent grains as a raw material for bread baking creates not waste, but a value-added by-product.
This leads to:
- More efficient use of resources through use as a raw material in a bakery
- Cost reduction through reduced disposal costs and fees
- Creation of sustainable added value through a new sales market and a new product idea
Spent grains account for approximately 85% of a brewery's waste. They are often used as animal feed or composted - but are also simply disposed of.
Using spent grains for bread baking creates an additional source of income and enhances the brewery's image as an environmentally conscious brewery.
Key partnerships
Explanation & example
Raw material suppliers
Industrial and craft businesses that generate byproducts or potential waste during the production process. Long-term partnerships ensure a continuous supply of materials of consistent quality.
This includes industrial and craft businesses that generate byproducts or potential waste.
They form the basis of the entire model, as they represent a continuous source of materials.
Long-term supply agreements and quality standards are crucial to provide recyclers with planning security.
Byproduct recyclers
Companies that convert byproducts into new products or semi-finished products - e.g., upcycling manufacturers, recycling companies, start-ups, or specialized industrial companies.
These partners transform the material into marketable products or semi-finished products - e.g.,upcycling manufacturers, recycling plants, start-ups, or specialized industrial companies.
They are thedriving force behind value creation, as they transform a raw material into a finished product.
Close collaboration with producers helps to process materials for optimal usability.
Research institutions
Universities, research centers, and technology laboratories that develop new recycling and processing technologies. Support with product innovations, material analyses, and process optimization.
Universities, research centers, and technology laboratories drive innovation, for example, by developing new processing technologies, material combinations, or sustainable packaging solutions.
They also help support and scientifically evaluate pilot projects to ensure market and technological viability.
Sales partners and marketplaces
Online and offline platforms where byproducts or end products derived from them can be offered. Trade and logistics partners that simplify access to target markets.
Online and offline platforms act as an interface to the market - both for byproducts and the resulting end products.
Trading and logistics partners enable access to national and international markets and optimize supply chains.
The partnerships ensure that material flow, technology development, and market access go hand in hand. Without a strong partner network, the business model would work locally but would struggle to scale and remain competitive in the long term.
Raw material suppliers
Local breweries to source fresh spent grains as an ingredient in the bread.
Byproduct recyclers
Regional bakeries producing spent grain bread.
Research institutions
Food technologists / recipe developers for the development and optimization of recipes for brewer's spent grain bread.
Sales partners and marketplaces
Sustainability initiatives and environmental organizations to promote sustainability projects and raise awareness.
Core activities
Explanation & example
Collection and Sorting
- Collection and separation of potential waste and by-products directly in the production process of industrial companies
- Establishment of an efficient collection and storage system to prevent material loss and quality degradation
Byproducts and potential waste are collected right at the production line and separated according to material type, quality, and potential for further use.
This is crucial because clean and targeted sorting enables high-quality processing later on and reduces recycling costs.
Development of Recycling Processes
- Analysis of material properties and suitability for upcycling, recycling, or further processing
- Development of standardized preparation and processing methods
Here, we examine which processing or conversion processes are suitable - e.g.,
- Upcycling: creative transformation into higher-value products
- Recycling: material reuse within one's own or another production chain
- Further processing: use as an intermediate product for other industries
This step ensures that the material is not just 'disposed of' but actually acquires a market value.
Cooperative Recycling
- Transfer and marketing of by-products to suitable partners such as SMEs, craft businesses, upcycling companies, or start-ups
- Establishment of long-term supply and purchasing relationships
Not every industrial company can process byproducts itself. Therefore, partnerships are being established with SMEs, craft businesses, start-ups, and specialized upcycling companies that manufacture new products from these materials or use them as raw materials.
Innovation and Product Development
- Research and creative development of new usage and product ideas for by-products
- Use of design thinking methods and pilot projects to open up new markets
In the long term, it's not just about existing recycling channels, but also about developing entirely new applications.
This includes product innovations, material experiments, and design approaches that add unique value to by-products - often in niche markets where creativity and sustainability are strong selling points.
The core activities describe all the practical steps with which the business model is implemented - i.e. the operational levers for turning potential waste into an economic source of value.
The core activities create the practical framework in which an undesirable side stream becomes an economically attractive material stream.
Collection and Sorting
- Spent grain is produced during mashing in the brewery - it is the solid residue of the brewer's malt after leaching out the soluble substances (sugar, enzymes)
- Directly after lautering (separation of wort and solids)
- Cooling to below 40°C (for food safety)
- Filling in food-safe containers
- Prompt transfer or storage (transport to the bakery - preferably on the same day)
- Storage
- Short-term (up to 24 hours):
- Refrigerated at 4-7°C
- Medium/long-term:
- Drying (e.g., in a dehydrator): Shelf life of several months
- Freezing: Freeze in portions for later use
- Vacuum sealing: To reduce oxygen and extend shelf life
Development of recycling processes
- Analysis of material properties and suitability for further processing
- Development of baking recipes
- Spent grain content: Ideally, the spent grain should make up 10-30% of the total flour content. Higher amounts make the bread heavier and moister, which can be adjusted according to taste.
- Spent grain moisture strong content: If the spent grain is too moist, it can make the dough soggy. Therefore, it is important to drain the spent grain well. If it seems too dry, it can be slightly moistened with water or beer.
Cooperative Recycling
- Brewery supplies spent grain → Bakery processes it into specialty breads
- Joint marketing: 'Bread & Beer from the Region.'
- Advantage: short routes, directly tangible added value for consumers
- Bread is marketed as a sustainable premium product
Innovation and Product Development
- In addition to bread, also: crispbread, cookies, pizza or pasta dough
- Cooperation with startups in the field of 'upcycling food'
Key resources
Explanation & example
Key resources are the central building blocks necessary to implement the business model reliably and efficiently. They ensure the quality of the by-products, enable commercial utilization, and build trust among partners and customers.
Technical Infrastructure
- Facilities and equipment for the collection, sorting, storage, and, if necessary, pre-processing of by-products (e.g., presses, cutting machines, drying systems).
- Transport and logistics resources to efficiently manage material flows between producers, recyclers, and partners.
Without suitable facilities for collection, sorting, and storage, byproducts often cannot be provided in a quality that is attractive to recyclers.
Preprocessing facilities such as presses, cutting machines, or drying systems increase the material's value by facilitating transport, storage, and further processing.
Efficient logistics are crucial to avoid material losses and ensure cost-effectiveness - especially with sensitive or voluminous waste.
Technical Expertise
- Personnel with expertise in recycling, upcycling, and further processing processes
- Product designers, engineers, and materials scientists to develop innovative uses and market-oriented end products
Recycling and upcycling expertise is needed to identify the best utilization pathways and solve technical challenges.
Product developers and designers contribute creative ideas to transform byproducts into marketable end products.
Materials science expertise ensures that further processing is not only visually appealing, but also technically and ecologically sound.
Digital Systems
- IT platforms for material management, traceability, and quality documentation
- Data management tools to optimize processes and material flows, and to provide evidence for sustainability standards
IT traceability solutions guarantee transparency along the entire material chain - a key factor for certifications and sustainability communication.
Data management systems help analyze material flows, monitor process costs, and identify optimization potential.
Digital platforms can also serve as intermediaries or trading platforms to efficiently connect producers and processors.
Without these key resources, the business model would work in theory, but in practice it would be neither scalable nor reliable. They form the foundation upon which cost savings, additional revenue, and sustainability benefits can be realized in the first place.
- Physical Resources
- Bakery: Production facility with ovens, proofers, and kneading machines
- Storage space: For flour, spent grains, yeast, spices, and other ingredients
- Transportation: For delivery to customers or stores
- Raw Materials
- Spent grains: A residual product from beer production, the main characteristic of bread
- Flour(wheat, spelt, or other varieties)
- Yeast / Sourdough
- Water, salt, and spices,if needed
- Human Resources
- Bakers and confectioners: For making the bread
- Sales / Sales staff: For sales in-store or via delivery services
- Intellectual Resources
- Recipes & Know-how: Special recipes for spent grain bread
- Brand / Branding: Logo, packaging, marketing concept
- Financial Resources
- Start-up capital / Working capital: For ingredients, staff, rent, and machinery
Value propositions
Explanation & example
Cost Savings
- Reduction or avoidance of disposal and landfill fees through targeted use of by-products
- Reduction of raw material costs, as materials are reused internally or in collaboration
Typically, companies must pay disposal fees for the disposal of production waste, which can be substantial depending on the type and quantity of material.
By converting these wastes into usable byproducts, these costs are largely eliminated. At the same time, the need to purchase expensive primary raw materials is reduced because part of the material requirements are met frome the byproducts.
Additional Revenue Sources
- Sale or licensing of by-products to partner companies (e.g., craftspeople, start-ups, upcyclers)
- Development of new business segments where previously unused materials are considered valuable raw materials
What was once a cost factor can now besold or licensed. For example, wood offcuts can go to furniture manufacturers, or textile offcuts to upcycling labels.
This creates a new, independent source of incomethat complements the core business and increases economic resilience.
Sustainability Benefits
- Resource conservation by extending the material life cycle
- Contribution to waste reduction and improved environmental performance - an important aspect for CSR reports and sustainability certifications
The targeted reuse of materials extends their life cycle and reduces raw material extraction.
Companies thusimprove their ecological footprint and can use this for CSR reports, sustainability certifications, and marketing.
This strengthens the brand and positions the company as a responsible player.
Innovative Products and Markets
- Development of creative upcycling products with unique selling points
- Access to niche markets and customers who place particular value on sustainability, design, and uniqueness
Creative upcycling creates products with high design and innovation value, which are often particularly sought after in niche markets.
Examples include fashion items made from industrial felt, furniture made from production wood scraps, or lifestyle products made from recycled metal.
These products appeal to customer groups that value sustainability, uniqueness, and storytelling.
The value propositions combine direct financial benefits (cost reduction, revenue increase) with strategic advantages (image, innovation, new markets).
Cost Savings
- For breweries
- Spent grain does not need to be disposed of or given away for free
- Instead: Sell to bakeries or a spent grain cooperative
- Savings: Depending on the quantity, €30-50/t in disposal costs saved, possibly with a small profit per ton
- For bakeries
- Spent grain (moist or dried) is cheaper than high-quality flour
- Example:
- 1 ton of wheat flour: approximately €400-500
- 1 ton of dried spent grain: sometimes <€200 (including processing costs)
- Blended portion in bread: approximately 10–20% → raw material costs decrease, margin increases
- For both sides (cooperation)
- Joint logistics reduces transport costs
Sustainability Benefits
Brewer's grain bread transforms a brewery byproduct into a nutritious, regional food. It saves resources, reduces CO₂, strengthens local economies, and offers consumers a sustainable premium product.
Innovative Products and Markets
- Products
- Bread & Baked Goods
- Protein bread / fitness bread → for sports and health-conscious consumers, thanks to its high protein content
- High-fiber bread → supports digestion and satiety, attractive to diet and wellness customers
- Craft beer bread → with brewery branding (e.g., 'IPA bread'), storytelling in regional marketing
- Seasonal specialty breads → e.g., Oktoberfest bread, Christmas bread with spent grain
- Snacks & Convenience
- Spent grain crispbread / crackers → sustainable, high-fiber snack
- Spent grain muesli bars → as an "upcycled superfood" in the health segment
- Pizza, tarte flambée, or burger buns with spent grain → gastronomy & street food
- Spent grain cookies or brownies → a sweet finishing idea
- Ingredients & Semi-finished products
- Spent grain flour → as a sustainable baking ingredient for bakeries and end customers
- Ready-made mixes → 'Beer bread for baking yourself' for retail and online
- Gluten-reduced mixes (spent grain as a flour substitute)
- Experience & Gourmet products
- 'Beer & Bread' gift sets → brewery + bakery collaboration
- Food pairing offers → bread tastings for beer tastings
- Workshops & events → bread baking courses with spent grain, tangible sustainability effects
- Markets
- Health & Fitness Market
- Protein & Fiber Products → Brewer's Grain Bread as a Fitness or Diet Bread
- Sports Nutrition → Expansion into Bars, Snacks, and Meal Replacements
- Target Group: Fitness Studios, Sports Clubs, and Health Shops
- Organic & Sustainability Market
- Upcycling Food Segment → Brewer's Grain Bread as a Symbol of Circular Economy
- Health Food Stores & Health Food Stores → Customers Focusing on Sustainability and Healthy Eating
- Food Startups & Green Labels → Collaborations for Co-Branding
- Gastronomy & Foodservice
- Craft Beer → Breweries and pubs offer their own bread
- Street Food & Festivals → Spent Grain Burger Buns, Pizza, and Tarte Flambée
- Catering & Fast-Food → Sustainable USP for Restaurants & Canteens
- Tourism & Regional Marketing
- Souvenirs & Specialties → 'Beer & Bread from the Region.'
- Brewery Experiences → Bread tastings as part of beer tours
- Regional Brands → e.g., umbrella brand for bread & beer
- E-commerce & Direct Sales
- Online Shops → Spent Grain Bread Mixes, Snacks, Crackers
- Subscription models → sustainable bread boxes with monthly subscriptions
- Upcycling Food Platforms → e.g., Avocadostore, Too Good To Go
- International Markets
- High-End Markets such as Scandinavia, Japan, and the USA → Demand for Sustainable, Protein-Rich Products
- Export of Spent Grain Flour as a Bakery Raw Material or Baking Mix
- Collaboration with International Craft Beer Communities → Bread as a Lifestyle Product
Innovation: new product lines that expand traditional bread offerings.
Corporate perspective: new sales channels, premium prices, brand enhancement.
Customer relationships
Explanation & example
Customer relationships are crucial for turning a one-time material supply or individual purchase into a long-term partnership. Especially in the context of byproducts, trust in quality, availability, and sustainability is key.
For the producer of (potential) waste
- Consulting and support services for the optimal use and processing of by-products - including material analysis, process optimization, and logistics concepts
- Long-term partnerships through fixed supply contracts, coordinated delivery schedules, and additional services such as quality control or warehousing
- Transparent traceability along the entire by-product chain (e.g., digital tracking systems, certificates) to demonstrate quality, origin, and sustainability
Consulting as added value:
Companies that supply by-products benefit from expert knowledge on how to optimally process and market them.
This strengthens the relationship because the producer not only 'sells' but also becomes part of a strategic material utilization strategy.
Long-term partnerships:
Fixed supply contracts, coordinated logistics processes, and predictable purchase quantities create planning security for both parties.
This makes the process more economically attractive and prevents by-products from going unused.
Transparency and traceability:
Digital tracking of the material chain - from origin to the final product - builds trust among partners and increases marketing opportunities (e.g., for sustainable brands that require certification).
For the recycler of the by-products
- Product- and market-oriented customer support, depending on the end product manufactured and the target group:
- For B2B customers: regular exchange, joint product development, technical support.
- For end users: service orientation, storytelling about material origins, warranty services, and after-sales support.
B2B recyclers (e.g., furniture manufacturers building materials producers) need a close, reliable business relationship with clear communication about quality, delivery times, and technical requirements.
B2C recyclers (e.g., upcycling labels) benefit from emotional customer loyalty: Storytelling about origin, sustainability benefits, and design ideas makes the product more desirable for end customers.
After-sales services such as warranties, repairs, or take back programs can underscore the sustainable nature of the business model.
Customer relationships ensure that the business model not only organizes material flows, but also builds long-term networks and loyalty - and this is precisely what makes it economically stable.
For the producer (brewery)
- Consulting and support services for optimal use and processing of spent grains
- Long-term partnerships through fixed supply contracts, coordinated delivery schedules, and additional services such as quality control and warehousing
- Transparent traceability along the entire by-product chain (certificates) to ensure verifiable quality, origin, and sustainability
For the user of the spent grains (bakery)
- Direct customer contact
- Store / Counter sales
- Personal advice, storytelling: 'This bread is made from brewer's spent grains, regional & sustainable.'
- Recommendation of suitable products (e.g., cheese, spreads)
- Markets & Pop-up Stands
- Direct contact with end customers → Experience the product, try it, provide feedback
- Community & Experience Building
- Workshops & Bread Baking Courses
- Customers learn how to bake their own spent grain bread → Building connection & loyalty
- Events & Collaborations with Breweries
- Joint tastings, beer & bread kits → Experience-oriented relationships
- Digital & Automated Relationships
- Newsletter & Social Media
- Recipes, sustainability tips, news → regular contact
- Online Shop / Ordering Platforms
- Customers can pre-order bread online → convenient & recurring
- Subscription Models
- Regular delivery of bread or baking mixes → long-term commitment
- Feedback & Co-creation
- Incorporate Customer Ideas
- Develop new bread varieties or snacks based on customer preferences → co-creation
- Feedback Cards / Digital Surveys
- Improve recipes, packaging, and service → strengthen loyalty
Channels
Explanation & example
The channels are the connecting paths between the actors in the business model - that is, between producers, processors, and ultimately the end customers. They determine how by-products find their way from the source farm to the buyer.
For the producer of (potential) waste
- Own sales platforms (e.g., B2B web shops, internal marketplaces) for direct marketing of by-products to interested buyers
- Cross-sector online marketplaces for secondary raw materials (e.g., material exchanges, circular economy portals)
- Direct partnerships with upcycling companies, design studios, and creative industries to establish stable purchasing relationships
Own sales platforms make it possible to offer by-products directly and without intermediaries. This increases margins and allows full control over quantities, prices, and buyers.
Online marketplaces for secondary raw materials (e.g., material exchanges, circular economy platforms) open up access to a broad, often international, customer base.
Direct partnerships with upcycling companies, creative studios, or specialized processors ensure reliable, long-term sales channels and reduce the organizational effort required for sales and logistics.
For the recycler of the by-products
Product-specific sales channels depending on the target group and industry, e.g.:
- Retail or concept stores for design and lifestyle products
- Online shops for sustainable consumer goods
- Wholesale for further processing products
- Trade fair appearances and specialist events to acquire B2B customers
Sales channels depend heavily on the type of end product:
- Design and lifestyle products are suitable for sale through concept stores, sustainable boutiques, and online shops that appeal to an environmentally conscious audience
- Technical or industrial processing products (e.g., granules, construction panels, semi-finished products) are more likely to find their buyers through B2B wholesalers or trade fairs
- Direct sales via e-commerce make it possible to build a close relationship with end customers without intermediaries - often reinforced by storytelling about the origin and sustainability of the material
Conclusion
The choice of channels determines whether the process is fast, predictable, and cost-effective, or whether valuable material is left behind. Digital platforms play a key role in this because they efficiently connect supply and demand - often across industry and national borders.
For the producer (brewery)
- Direct partnership with creative bakeries
For the user of the spent grains (bakery)
- Multi-channel Strategy:
- Direct (bakery, brewery, markets)
- Retail (organic stores, food retailers, restaurants)
- Online (shops, platforms, subscription models)
- Collaborations (breweries, tourism, events)
Customer segments
Explanation & example
The business model addresses two central target groups - producers and users - each with clearly defined value propositions.
For the producer of (potential) waste
- Industrial and craft companies that can specifically use by-products as cost-effective or specialized raw materials (e.g., furniture makers, textile processors, building material manufacturers)
- Upcycling companies and creative industries such as designers, artists, start-ups, and manufacturers that use the by-products to create high-quality or unique end products
These primarily include industrial and craft businesses that generate byproducts or surpluses in the production process.
These companies benefit because:
- their disposal costs are reduced
- their waste materials are incorporated into new value chains
- they can position themselves as sustainable suppliers.
Typical examples:
- textile manufacturers with offcuts
- wood and furniture producers with sawdust or leftover wood
- food processors with organic byproducts such as shells, pomace, or press residues
Upcycling companies and creative industries are also of interest because they specifically seek out unusual, distinctive materials to develop designer and niche products.
For the recycler of the by-products
- Sustainability-oriented brands that want to include products with a demonstrably low ecological footprint in their product range
- End consumers with a high level of environmental and design awareness who specifically purchase products made from recycled materials (e.g., in the fashion, furniture, and lifestyle products)
On this side are the companies and consumers that market or use finished products made from or with these byproducts.
These include:
- Sustainability-oriented brands that use recycled materials as a selling point (e.g., fashion labels, furniture brands, interior design providers)
- End consumers with a high level of environmental awareness who value storytelling, regionality, and material origin
This group ensures that the model has market demand and is economically viable. Especially in markets such as fashion, lifestyle, and furniture, the willingness to pay a higher price for sustainable, unique products is growing.
Producers supply the materials and reduce their costs.
Recyclers use them to create products that are differentiated by sustainability, design, and provenance.
For the producer of the spent grain
- Regional bakeries
For the user of the spent grains (bakery)
- Resellers who want to include products with a demonstrably low ecological footprint in their product range
- End consumers with a high level of environmental awareness who specifically purchase products made from recycled materials
- Health-conscious shoppers seek fiber- and protein-rich products and pay attention to nutrition
- Sustainability-oriented consumers value upcycling, zero-waste, and regional products
- Gourmets and foodies enjoy trying new, innovative products (e.g., craft beer fans)
- Tourists buy 'beer & bread' as a regional experience or souvenir
Cost structure
Explanation & example
The cost structure shows where the main financial expenses arise in the business model and how they are distributed between fixed and variable costs. It is crucial for planning profitability and identifying savings potential.
- Investments in Infrastructure and Technology
- Acquisition of facilities, machinery, and equipment for the collection, sorting, storage, and processing of by-products
- Establishment of suitable storage and logistics systems to ensure efficient and quality-assured material flows
The construction of facilities, machinery, and processing lines forms the basis of the business model.
This also includes storage space, collection points, and, if necessary, special transportation.
These investments are primarily incurred at the start or during expansion, but can be used over a long period of time, spreading the costs over many years of operation.
Investments in infrastructure and technology are fixed costs, mostly one-off.
- Operating Costs
- Personnel costs for specialists in production, quality assurance, logistics, sales, and administration
- Energy costs for machine operation, warehousing, and transport
- Maintenance and repair costs for technical equipment.
Personnel costs are one of the largest items, as qualified specialists are needed in recycling, upcycling, product development, and logistics.
Energy costs vary greatly depending on the type of material and processing technology (e.g., energy-intensive melting vs. low-energy pressing).
Maintenance and repair ensure trouble-free operation and extend the service life of the equipment.
Operating costs are ongoing, often variable costs.
- Research & Development
- Development and testing of new recycling methods, products, and technologies in cooperation with research institutions and partner companies
- Material analyses, pilot projects, and prototype development for the market launch of new applications
R&D is essential for developing new recycling methods and remaining competitive.
Costs arise from material testing, prototyping, pilot plants, and collaboration with research institutions.
These expenses can open up new revenue streams in the long term and make existing processes more efficient.
Research and development are strategic investments.
Fixed costs (facilities, basic infrastructure, and personnel) provide stability to the model but require careful financing.
Variable costscosts (energy, raw material logistics, additional personnel) are more manageable and can be adjusted depending on production volume.
Strategic investments in R&D act as a lever: While they increase ongoing expenses, they create innovations that enable new markets and margins.
- Raw material costs
- Brewer's grains: As a byproduct of beer production, brewer's grains are generally available inexpensively or even for free, especially through collaborations with local breweries
- Flour: Prices vary considerably depending on the quality and variety (e.g., wheat, spelt, rye)
- Other ingredients: Yeast, salt, spices, and water
- Personnel costs
The production of brewer's spent grain bread requires qualified personnel for kneading, shaping, and baking. About 50% of the costs are spent on personnel.
- Energy costs
Ovens require significant amounts of energy. Rising energy prices have increased production costs in recent years.
- Operating and fixed costs
- Rent: For production facilities and sales areas
- Insurance: Business, liability, and property insurance.
- Taxes and duties: VAT, trade tax, etc.
- Packaging costs
For sustainable packaging that presents the product attractively and protects the environment.
- Marketing and sales costs
- Advertising: Online marketing, flyers, events
- Sales: Costs for sales in your own stores or through partners.
| Cost Category | Description | Estimated Share of Total Costs |
|---|---|---|
| Raw Materials | Brewer's grains (often inexpensive), flour, yeast, salt, spices, water | 25–35% |
| Personnel Costs | Bakers, confectioners, sales staff, cleaning | 40–50% |
| Energy Costs | Electricity/gas for ovens, refrigeration systems | 5–10% |
| Rent & Infrastructure | Bakery, warehouse, sales areas, machine maintenance | 5–10% |
| Packaging | Bread bags, labels, sustainable packaging | 2–5% |
| Marketing & Sales | Advertising, flyers, social media, delivery costs | 2–5% |
| Insurance & Taxes | Liability insurance, trade tax, other taxes | 2–5% |
Revenue streams
Explanation & example
The revenue streams in the business model arise from the value chain, which extends from the producer to the recycler to the end customer. This generates both direct revenue (e.g., through the sale of materials or products) and indirect revenue (e.g., through license or service fees).
For the producer of the (potential) waste
- Sale of by-products - either unprocessed (e.g., raw materials) or after basic processing (e.g., sorted, cleaned, pressed)
- Licensing of technologies or processes that allow the by-products to be efficiently utilized or further processed
- Service fees for additional services such as material processing, quality control, consulting, or logistics for third parties.
Sale of by-products:
This is the most obvious revenue driver - whether as raw material (e.g., untreated wood offcuts) or after simple further processing (e.g., cleaned and pressed textile fibers). Here, a cost factor (disposal) becomes a source of income.
Licensing of processes or technologies:
If a company has developed a particularly efficient method for processing or using by-products, it can license this technology to third parties - often for fixed license fees or a sales-based royalty.
Service fees:
Producers can act as service providers for other companies - for example, by processing, transporting, or storing third-party by-products in their infrastructure. Consulting services for process optimization also fall into this category.
For the recycler of the by-products
- Sale of finished products made from the by-products - from niche design pieces to industrial semi-finished products
- Licensing of proprietary technologies or designs that are specialized for the use of specific by-products
- Service fees for services such as contract manufacturing, product development on behalf of customers, or consulting on material utilization.
Sale of finished products:
Whether furniture made from production wood scraps, bags made from textile offcuts, or building materials made from recycled granules - the sale of the finished product is often the primary source of income. Higher margins can be achieved here through design, quality, and a sustainability story.
Licensing:
If the recycler has developed a special design, innovative technology, or patented process, they can pass it on to other producers or brands.
Service fees:
This includes contract manufacturing (production on behalf of a customer), customized product development, or consulting on material use and design - especially for companies looking to expand their sustainability strategy.
The model is financially robust when based on multiple parallel revenue streams. This allows producers and processors to respond flexibly to market fluctuations: If demand for materials declines, for example, the consulting or licensing segment can take center stage.
- Sale of brewer's spent grains - either unprocessed (e.g., raw materials) or after basic processing (e.g., dried, pressed)
- Service fees for additional services such as processing, quality control, consulting, or logistics services
For the user of the spent grains (bakery)
- Direct Sales: Bread & Snacks
e.g., Fresh Brewer's Grain Bread - DIY Products: Baking Mixes & Subscription Boxes
e.g., Brewer's Grain Baking Mixes for Home - B2B & Collaborations: Restaurants, Breweries, Retail
e.g., Sale of Packaged Brewer's Grain Bread as a Premium Product - Experience Revenue: Workshops & Events
e.g., Bread Baking Courses & Events - Merchandising & Co-Branding: Additional Sales
e.g., Baking Pans, Cookbooks, Recipe Cards
Summary
Explanation & example
The Symcraft business model is based on the consistent use of byproducts or potential waste generated during production processes and transforms them into valuable resources.
Instead of disposing of these materials, they are specifically collected, processed, and marketed either directly or after further processing.
This creates:
- Additional sources of income for producers and recyclers
- Cost savings through avoided disposal fees
- Sustainability benefits through resource conservation and waste prevention
- Innovative products and new market segments, especially in the areas of upcycling and the circular economy
The model is based on cooperation between:
- Producers of potential waste or byproducts
- Recyclers who transform these materials into marketable products
Through close collaboration between all partners, a closed material cycle is created that combines ecological responsibility with economic profitability.
A bakery produces sustainable spent grain bread using spent grain from local breweries, high-quality flour, and qualified staff. Key partners include breweries, raw material suppliers, machine manufacturers, packaging and logistics partners, and local retailers. Key activities include baking, recipe development, procurement, marketing, and sales.
The bakery targets health- and environmentally conscious customers, regional bread lovers, and food service businesses. The bread is sold through its own branches, local shops, cafés, restaurants, and online channels. Costs are primarily incurred through personnel, raw materials, and energy, while revenue is generated from the sale of bread and any related products.
The value proposition lies in a sustainable, artisanal specialty bread that is particularly environmentally friendly thanks to the reuse of spent grain. Customer relationships are cultivated through direct sales, collaborations, social media, and events.
The bakery produces sustainable, artisanal spent grain bread from local brewery byproducts and sells it to health- and environmentally conscious customers through stores, local retailers, and online channels.