As global consumers increasingly prioritize sustainability, industries are compelled to explore innovative solutions. This research paper investigates the potential of keg wine as a sustainable innovation addressing ecological, social, and economic goals. Despite alternative packaging options like bag-in box and cans, the wine industry largely relies on glass bottles, contributing to a significant carbon footprint. Leveraging the sustainability-oriented service innovation (SOSI) tool, this study analyzes keg wine as a solution for sustainable wine production, distribution, and consumption. Through a joint research including life cycle assessments, the environmental benefits of keg wine over glass bottles are demonstrated. Moreover, market studies reveal restaurateurs' and consumers' favorable attitudes towards keg wine, driven by economic savings and ecological consciousness. This research contributes methodologically, theoretically, and empirically to understanding and promoting sustainable innovations in the wine industry, emphasizing the importance of collaboration between researchers and industry professionals fora more sustainable future.