RESILIENT SPIRITS: Using a systems thinking lens for a circular distilling industry

Transitioning towards a circular and ecologically resilient economy requires more than technical innovation - it demands a paradigm shift in societal values, governance structures, and business practices. A key barrier to this transition lies in the enduring influence of neoliberal ideologies, which prioritize market-based solutions and short-term efficiency over long-term ecological and social well-being. While circular economy (CE) principles offer a compelling alternative framework - complemented by related concepts such as doughnut economics and eco-economics - their implementation across diverse industrial sectors remains uneven and complex. This paper contributes to the growing body of critical scholarship on CE by examining the systemic challenges and opportunities associated with its adoption in traditionally linear industries. Using the case of the craft distilling sector in regional Victoria, Australia, the study applies the Rational-Holistic Model of Planning and Decision-Making - a multimethodological systems thinking approach that integrates soft systems methodologies - to explore how circularity can be operationalized beyond technical fixes. Unlike much of the existing literature that emphasizes technological or supply-chain optimizations, this research foregrounds social, ecological, and institutional dimensions of change. By mapping the broader system in which the distilling industry operates, the study offers transferable insights into how context-specific, socially embedded strategies can help overcome resistance and foster more integrated approaches to circularity. The findings contribute to a deeper understanding of the socioecological conditions necessary for circular economy principles to take root, with implications for both policy and practice globally.