It takes a serious distribution network to serve up the beer America loves
While Americans may be divided on hot topics such as politics, economics and healthcare, there is one thing many will agree on – beer. And with many different types of beer on the market, there is something for everyone’s taste buds. Managing the beer distribution network to allow for the taste of the masses, is complicated.
According to a recent Gallup poll, beer is the favorite alcoholic beverage of Americans, hands down. The study shows, 65 percent of American adults drink alcoholic beverages. Of those drinkers, 41 percent drink beer, 31 percent prefer wine and 23 percent choose liquor.
The poll also shows Americans’ overwhelming preference for beer is the highest recorded since 2005. Despite the economic downturn and a sluggish recovery that has impacted almost every industry since 2008, the beer business is on the upswing. This is largely because of exploding demand for super-premium and craft beers.
As demand for these new varieties of beer grew, so did the numbers of SKUs distributors must manage, soaring from 300 to more than 1,000[1]. Another subcategory of the beer segment, flavored malt beverages, is growing in demand also. Together, this sub-category, craft and super-premium beers are expected to continue to grow as big brewers premium-ize their portfolios.
Never before have Americans had so many choices of beer styles, varieties or flavors. Production of craft beer alone grew 17.2 percent in 2013, according to the Brewers Association Craft Beer Program. In addition, manufacturers and distributors brought hundreds of new products and beer imports to market, dramatically expanding an already rich selection of beverage options.
So what makes all of this variety and choice possible? Over 3,000 breweries, large and small, in the United States. A network of 3,300 licensed independent beer distributors. That same network provides consumers with a selection of more than 13,000 beer labels, local communities with 130,000 jobs and emerging brewers with a level playing field. It also gives retailers access to thousands of beer brands and a slew of services, including frequent deliveries, warehousing, and inventory, space and category management.
That’s great news for consumers, communities and brewers. But what if you’re a beer distributor? Managing the beer SKU explosion puts immense pressure on distribution networks. It also means distributors must have the right combination of transportation, distribution, packaging and supply chain tools, technologies and resources to deliver.
For distributors, success means having the right tools and resources:
- A customized fleet of beverage trucks and trailers
- Primary/secondary contract packing to support multiple platforms and processing lines
- Distribution management expertise and resources to streamline everything from staffing, inventory management, reverse logistics and co-located warehouse facilities
- Technology tools to plan and adjust product movement and drive efficiencies through competencies like network design and transportation procurement
- Warehouse automation and LEAN processes to drive supply chain efficiency
- Reliable vehicle maintenance resources and expertise to maximize fleet uptime
- Dedicated transportation solutions that combine driver management, fleet maintenance, route design and delivery
- Asset-based and supply chain management solutions that enable you to adapt to changes in demand, staffing and service with ease
Are you a beer manufacturer or distributor looking to brew up a more efficient supply chain? Don’t have the resources in-house to package, transport and distribute hundreds or thousands of beer SKUs or to accommodate consumer demand for an exploding menu of options? Consider teaming up with a food and beverage supply chain expert to do it for you.
[1] Source: Supply Chain Management Review magazine.
