Brewing Trade’s Post

In the brewing industry, margins are under attack. No longer is growing revenue and volume enough to succeed. There’s a new game: increasing profitability and maximising margin. As Luca Lorenzoni wrote in his popular series on The Future of Craft Beer, breweries must analyse their margin pool and ensure their pricing strategy is right across their various routes to market. Sellar exists to put breweries back in control. Where breweries can sell direct to anyone, keep all of their margin, all while reducing the admin that typically comes with direct sales channels. We've whacked out the spreadsheet, and the numbers don't lie... 👇🏼 https://lnkd.in/eMjERYvE

"American breweries are currently at about half their capacity. That’s not good! But it’s actually worse that in looks because growth has been dead flat for three years. Were the industry growing, it would need headspace, so to speak, for future expansion. Here’s Bart: “When you’re growing rapidly, excess capacity is a good thing so you can keep up with that growth. Athletic has a lot of excess capacity right now with the purchase of that former Ballast Point facility, but no one thinks that’s an issue. So the ratio in the mid-2010s was different because brewers were rapidly growing into it. As I pointed out in 2015, the 2012 and 2014 ratios look the same, but 2014 production was actually bigger than 2012 total capacity. “So you need to understand the capacity number in the context of its time. If we were growing 18% again right now, even 51% might not be that bad (at 18% you’d use up all that excess capacity in 4 years), but at static or negative growth, it’s a lot worse, because it represents investments that aren’t being utilized.” I don’t have a lot more to add to this, except to say that if you want to open a brewery in the next few years, you might consider starting a contract brewery or alternating proprietorship. Not only would it save you a ton of money at the outset, but you might be doing another brewery a favor in helping them fill up those tanks." https://lnkd.in/esCxj5RU

"American breweries are currently at about half their capacity. That’s not good! But it’s actually worse that in looks because growth has been dead flat for three years. Were the industry growing, it would need headspace, so to speak, for future expansion. Here’s Bart: “When you’re growing rapidly, excess capacity is a good thing so you can keep up with that growth. Athletic has a lot of excess capacity right now with the purchase of that former Ballast Point facility, but no one thinks that’s an issue. So the ratio in the mid-2010s was different because brewers were rapidly growing into it. As I pointed out in 2015, the 2012 and 2014 ratios look the same, but 2014 production was actually bigger than 2012 total capacity. “So you need to understand the capacity number in the context of its time. If we were growing 18% again right now, even 51% might not be that bad (at 18% you’d use up all that excess capacity in 4 years), but at static or negative growth, it’s a lot worse, because it represents investments that aren’t being utilized.” I don’t have a lot more to add to this, except to say that if you want to open a brewery in the next few years, you might consider starting a contract brewery or alternating proprietorship. Not only would it save you a ton of money at the outset, but you might be doing another brewery a favor in helping them fill up those tanks." https://lnkd.in/eyaEsTDA

Adding a distillery to a brewing business can be a big leap—but there are synergies that can help the cost and effort pay off. Here’s how getting into craft spirits can add value to your brewery while leveraging costs. https://lnkd.in/gd8jNah9

Understanding cost of goods sold is crucial for any craft brewery, especially in the current competitive landscape. We've put together a guide on how to accurately capture the cost of each recipe, batch, and finished product. Check it out at the link below: https://hubs.li/Q02QCsWF0

A beer market leader was struggling to shift from low-variety, mass produced products to high-variety craft beers. Learn how WP&C used Square Root Costing and portfolio shaping to deliver $35M in benefit in one year. https://lnkd.in/eJqiK4ga #complexity #foodandbeverage #strategy #costing

𝐆𝐥𝐨𝐛𝐚𝐥 𝐁𝐞𝐞𝐫 𝐏𝐫𝐨𝐜𝐞𝐬𝐬𝐢𝐧𝐠 𝐌𝐚𝐫𝐤𝐞𝐭: 𝐓𝐫𝐞𝐧𝐝𝐬, 𝐈𝐧𝐧𝐨𝐯𝐚𝐭𝐢𝐨𝐧𝐬, 𝐚𝐧𝐝 𝐅𝐮𝐭𝐮𝐫𝐞 𝐎𝐮𝐭𝐥𝐨𝐨𝐤 𝟐𝟎𝟐𝟒 𝐆𝐞𝐭 𝐓𝐨 𝐌𝐨𝐫𝐞: https://lnkd.in/gMJC87nw 𝐎𝐯𝐞𝐫𝐯𝐢𝐞𝐰 𝐨𝐟 𝐭𝐡𝐞 𝐆𝐥𝐨𝐛𝐚𝐥 𝐁𝐞𝐞𝐫 𝐏𝐫𝐨𝐜𝐞𝐬𝐬𝐢𝐧𝐠 𝐌𝐚𝐫𝐤𝐞𝐭 The global beer processing market is poised for #growth, fueled by increasing #consumer demand for diverse and high-quality beer products. Innovations in brewing #techniques and equipment are enhancing efficiency and quality, making beer production more #accessible to both large and craft breweries. 𝐊𝐞𝐲 𝐓𝐫𝐞𝐧𝐝𝐬 𝐚𝐧𝐝 𝐃𝐫𝐢𝐯𝐞𝐫𝐬 A rising interest in craft beer and artisanal brewing is a #significant driver in the market, as #consumers seek unique flavors and brewing experiences. Additionally, advancements in technology, such as automated brewing systems and #sustainable processing methods, are reshaping the landscape, allowing for greater production scalability and #environmental responsibility. 𝐅𝐮𝐭𝐮𝐫𝐞 𝐎𝐮𝐭𝐥𝐨𝐨𝐤 The future of the beer processing market looks bright, with continued expansion expected in #emerging markets and a growing trend towards eco-friendly practices. As consumer preferences evolve, the market will likely see an increase in demand for innovative brewing solutions, positioning beer processing as a #dynamic sector within the #beverage industry. 𝐊𝐞𝐲 𝐩𝐥𝐚𝐲𝐞𝐫𝐬 𝐢𝐧 𝐭𝐡𝐞 𝐆𝐥𝐨𝐛𝐚𝐥 𝐁𝐞𝐞𝐫 𝐏𝐫𝐨𝐜𝐞𝐬𝐬𝐢𝐧𝐠 𝐌𝐚𝐫𝐤𝐞𝐭 1. Anheuser-Busch InBev (Belgium) 2. The HEINEKEN Company N.V. (Netherlands) 3. United Breweries Ltd. (India) 4. China Resources Snow Breweries Limited (China) 5. Carlsberg Group/S (Denmark) #BeerProcessing #CraftBeer #BrewingIndustry #MarketGrowth #BeerProduction #SustainableBrewing #InnovativeBrewing #ArtisanalBeer #BeerTechnology #GlobalMarket #ConsumerTrends #BrewingEquipment #BeerFlavors #EmergingMarkets #BeverageIndustry

From planning to decision-making to quality and innovation to building a network, here are some useful strategies for building and sustaining a profitable brewery in the ever-changing craft-beer industry. https://lnkd.in/gFuMP5_h

How are Beer producers navigating hops procurement - before Russia Ukraine war and during it ? A comparative study **Navigating Hops Procurement: A Brewing Challenge in Turbulent Times** **_How are beer producers managing hops procurement before and during the Russia-Ukraine war?_** The ongoing geopolitical turmoil has profoundly impacted supply chains, especially in the brewing industry. Let’s break down how beer producers have adapted their hops sourcing strategies. 1. **Diversification of Suppliers** Before the war, many breweries relied heavily on specific regions for hops. Post-war, companies like Dogfish Head Craft Brewery have diversified sourcing to include a broader range of suppliers in North America and beyond. 2. **Local Sourcing Initiatives** The conflict has prompted producers to invest more in local hop farms. Sierra Nevada Brewing Co. has formed partnerships with American farmers, ensuring a stable supply while supporting local economies. 3. **Contracting Flexibility** Flexibility in contracts was key during supply chain disruptions. Producers like New Belgium Brewing adapted by negotiating contracts that allowed for greater adaptability in quantities and delivery schedules. 4. **Enhanced Inventory Management** Pre-war strategies emphasized just-in-time inventory; however, breweries have shifted towards maintaining a larger stockpile of hops. This proactive approach is evident in the operations of Lagunitas Brewing Company. Understanding these shifts is crucial for industry professionals. How is your organization adapting to these changes? Share your thoughts below! (Source: Brewbound, Craft Brewing Business) #BrewingIndustry #HopsProcurement #SupplyChainManagement #CraftBeer #BusinessStrategy

The craft beer industry is struggling. Over 25% of craft breweries are losing money. Skyrocketing grain prices and high utility costs don’t help. Many passionate brewers are considering quitting. But here’s a surprising truth: the most successful breweries are not the richest. They excel in operational efficiency: - Smart inventory management can save thousands. - Embrace technology to cut labor costs. - Diversify revenue streams beyond beer sales. During my years in the business, I witnessed the impact of poor inventory control firsthand, and it's painful. Efficient inventory management prevents cash flow issues and wasted resources. Here are practical steps to implement: 1. **Optimize Inventory**: Use just-in-time ordering. This strategy saved one brewery $45,000 annually. 2. **Leverage Technology**: Implement brewing management software. One brewery cut 20 hours of weekly labor by adopting effective systems. 3. **Diversify**: Look for opportunities beyond beer. Expand into events or partnerships to boost revenue. Successful breweries craft great beer and run smart operations. When you focus on efficiency, every dollar saved can reinvest in quality and growth. Take action now. Analyze your inventory and explore technology solutions. Your brewery's survival depends on it. Source: - https://lnkd.in/g8_6Hid5