The craft beer industry is quickly becoming more popular than any other alcohol segment. A typical craft brewer produces less than 2 million barrels annually, and does so in an independent, traditional fashion.
- Annual growth of the craft beer industry in past 5 years = 18.8%
- In 2014, the entire craft brewing industry (farm to consumer) contributed $55.7 billion to the U.S. economy
Let’s take a look at the journey our beloved beverage takes to end up on our shelves.
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- Raw Materials
- Extras Ingredients
- Coffee Beans
- Fermented Sugar
- Research & Development
- Brewing equipment
- Labor: 20 hours of work = 1 batch of beer (unrelated to size)
- Barrel-aging: Most beers are not aged, but higher-end ones can be aged for up to 6 months before bottling
- Packaging [this should be thoroughly illustrated, visually breaking down each step for both “can/bottle” and “keg”]
- Can/Bottle + Label à Case (24 bottles) à Pallet (80 cases) à Truck (18 pallets)
- Keg à Pallet (80 cases) à Truck (18 pallets)
- In 2014 California exported 1.3 million barrels of craft beer
- Typical Distributor Responsibilities
- Market beers to restaurants and retailers
- Teach retailers how to serve the beverages
- Check for freshness: Draft Quality Audits
- Account for product loss (shrink) along the way
- Concerns: broken bottles, theft, spoilage (about 5% total shrink)
- Set up transport from distribution center to restaurant or retailer
Resale & Consumption (Restaurants and Shops)
- Craft beers represent 1 out of every 10 beers sold in the U.S.
- The craft beer market is up to $19.6 billion
- The typical amount of time a beer stays fresh (from production to consumption) = 4 months
Proper supply chain management is a balancing act in which you prepare for risks, respond to changes, and maintain low costs and high product integrity every step of the way. For the most effective supply chain management, you’ll need the right tools to track, analyze, and interpret relevant data.