If reports are to be believed the global beer industry is facing its greatest challenge yet. Even before the pandemic hit, trends in the industry were not promising.
Rising taxation policies, stiffer competition from other alcoholic beverages like wine, and lack of governmental support had already pushed the industry into despair.
However, not all is bad. In recent years, great breweries like Melvin Brewing have pushed the boundaries in terms of products, sales, and branding.
In this article, we look at some factors that can help you improve and optimize the performance of your brewery business. If you are someone that owns a brewery or is planning to open a beer brand, you should pay attention to this resource article.
The Advent and Adjustment to Digital Platforms and Technology:
It is time that breweries move away from the pub and bar culture and move into the smartphones of consumers. For the longest time, breweries were dealing with bar and pub owners for the distribution of their products.
With the rise of search engines and social media, successful breweries have reversed this trend. How you ask, let us try and elaborate-
- By pushing their products and services on social media, they have created a certain aura and attraction around the brand.
- Individuals who follow these breweries on social and search are likely to go to bars and ask for them.
- If the bar does not have it, it contacts the brewery and places an order for the same with the brewery based on high demand.
- A brewery can then fix the prices, discounts, and bottom line without getting the short end of the stick.
For breweries, the need of the hour is to have a strong presence on search engines and social media. Finding your target audiences, creating a halo aspiration, and creating high-quality content online is what will help in driving up demand and revenues.
Investing in Inventory Management and ERP, including Tracking Batch Yields:
While brewing is a craft in itself, it is also a business that needs to be run most optimally. A standard criticism that has been leveled against breweries is that they are very poor when it comes to inventory management and raw material management.
Here too, it is a technology that can come to the aid of breweries. Using state-of-the-art ERP software can help track everything from the moment the raw material rolls into the brewery to the time the finished cans, bottles, and kegs leave it.
Efficiency in the production process can go a long way in helping turn the brewery profitable. This is easier said than done, but an attempt needs to be made to adopt technology so that logistics and supply issues are handled as well as possible.
Can Breweries Cut Down on Energy and Electricity Costs?
Questions and discussions on sustainability have been gaining traction in the brewing world. Processes like distillation, filtration, and processing are all heavily dependent on thermal energy and electricity. In other words, they contribute in a major way to the overall operating costs of the brewery.
A shift to greener and cleaner sources of energy can help not only bring down the costs but also allow for the brand to get a far more positive image of a green brand!
With consumer awareness increasing in the digital age, this can be a great way by which breweries can brand themselves. Yes, the one-time costs of solar are indeed quite great, imagine saving so much on electricity costs over the long run.
The Bottom Line:
Breweries spend and invest a lot in getting the best raw materials, brewers, quality, and so on. However, with so much competition it is also important to focus on the business side of things. Operations, efficiency, costs, inventory management are all areas that deserve attention. If you can address these issues, there is no doubt that you will be able to convert your brewery business into a success.