Category: Cider

Why Fall & Winter Marketing Is Essential

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photo of cocktails surrounded by falling leaves and small pumpkins

By: Hanifa Sekandi

It is pumpkin-spiced latte season. It is the time of year when fall revelers look for beverages that pay tribute to the season, where amber and orange-colored leaves adorn the trees and paint the sidewalks. During this season, beverage choices are intentionally shifting. Consumers who like beverages that signify a season, particularly fall, shop purposefully. They know what they are looking for and look for beverage brands that will meet their desire. This desire is not limited to flavor. It also includes brand aesthetics. The magnitude of these seasons is noticeable among brands when you enter grocery stores toward the end of August and see pumpkin-printed chocolate bars and candy.

  The summer is quite anti-climactic when it comes to in-store branding. Of course, there are many great beverage brands with colorful summer labels and summer flavors. But generally speaking, retail stores do not get into seasonal festivities until the fall and winter. Summer is a great time to build brand awareness and experiment since most consumers are open to trying new beverages during the summer. Whether it is a party, fun, sun or backyard BBQ, consumers take more liberties with their beverage experimentation. New innovative flavors with fresh fruit or premium cocktail blends are quite appealing.

  As the summer draws to a close, the desire for comfort grows. People love familiarity, but more importantly, they hold on to nostalgia. A beer they remember their father drinking on a cool fall night where you can smell campfire in the air while he and his friends tune in to watch football is often a favorite choice. Not only does it draw upon a significant memory, but it is also anchored to a specific time of the year. For some reason, everyone in the room watching the game who brought their beverage to imbibe sticks to what they came with. It is their beverage of choice while they watch the game and enjoy wings. While some prefer a deep, rich ale, others prefer to sip on a robust, smooth whiskey served neat.

  So the question is, why is fall and winter marketing essential? It helps you reestablish your consumer base. Further, it allows you to return to your roots. What makes your beverage unique? It also allows brands to celebrate their consumer and show their appreciation.

The Benefits of Fall and Winter Marketing Strategies

  Now is not the time to hibernate. Understandably, the summer is exhausting. It is the Olympics of beverage marketing. A lot of marketing departments breathe a sigh of relief when this season is over. Summer marketing requires brands to pivot quickly with a multi-tiered strategy. While you develop new labels and flavors to compliment the warmer months, marketing strategies must be carried out thoughtfully. The goal is to appeal to old consumers and new consumers. If effective, new consumers can be easily enticed to try signature beverages from your product line that perform well in the fall and winter but also long-term.

  Beverage brands do not have to look far to see the benefits of fall and winter marketing strategies. Whether it is your local coffee shop or a major brand. Every brand aligns with these two pivotal branding times of the year. Why? These seasons have so many occasions that offer opportunities to consumers actively looking for seasonal items to celebrate and pay tribute to holidays occurring during this time. When coffee shops begin to promote pumpkin-spiced beverages this spurs the desire to get in the seasonal mood. Social media posts about fall attire, comfort foods and beverages have become the norm.

  If your marketing strategies were lukewarm during the summer, heating them up during these months is limitless. A consumer profile is already laid out. Both small and major brands provide it. If your brand has been operating for a few years, you should already have a consumer profile that you can analyze. What were your shortcomings in previous years? What were your beverage wins? What beverages from your product line sell well during this time? How do you remind your consumer that you are their go-to beverage when they think of Thanksgiving or the holidays?

Key Benefits:

●            There is a demand for fall and winter

                merchandise.

●            Other brands are in the seasonal spirit.

●            It’s easy to meet predictable consumer

                expectations.

●            There are multiple opportunities to showcase your beverage with seasonal and holiday branding.

How Can You Heat Up Your Strategies?

  In the summer, there is a fast marketing approach. It is like throwing darts at a board and hoping one will stick. In the fall and winter, your goal is to last all season. Summer trends fade quickly, but fall and winter staples never lose their touch. Cinnamon spice, chestnuts roasting on an open fire, mistletoe and warm apple cider are timeless staples.

1. Timeless Campaigns

  So, how can you ensure that your brand does not miss an opportunity for further brand building and amplification during this time?

  Create a timeless seasonal campaign that draws on nostalgia. If you already have a campaign that has performed well during this time of year, make it your seasonal campaign or your pumpkin-spiced latte. Get your consumer excited to purchase this beloved limited edition. What aspects of this campaign performed well? Draw upon these elements and add a few extra details to this year’s campaign.

  For example, football season or occasions like Halloween allow for creative brand exploration. Bacardi did a great job at tapping into the nostalgia of the season by paying tribute to classic horror films with signature cocktails that they showed their audience how to make. Another extra touch was a seasonal label change on their bottle, which featured white bats on the signature Bacardi bottle.

2. Celebrate the Season and the Occasion

  It is important to not just consider the season but to map out every holiday that will occur from the fall until the spring. From Halloween to Valentine’s Day, there is a lot of marketing mileage to cover.

  Create a marketing roadmap that will detail what you will do each month and each season that falls within that month. Then, curate a list of activities that occur during the seasons and are associated with a holiday or occasion. Football Sunday, what does this mean to your audience? How is your beverage best enjoyed while watching a game? Leaning toward deeper and richer tones for labeling should also be considered.

3. Become a Household Fixture

  Just like Bed, Bath and Beyond, you should aim to become a household fixture synonymous with fall. All merchandise should support consumer buying choices at this time. Perhaps a candle inspired by the ingredients in your beverage or dish towels with fall colors. Anything and everything that falls within this category.

  When creating social media content strategies, create a picture in the buyer’s mind that your beverage fits their lifestyle ideals this season. Images of people sitting by a campfire outside or perhaps playing card games indoors. Here is an opportunity to place your product in familiar settings along with familiar activities. The fall and winter are about being home. To become a go-to brand, you need to be perceived this way. For example, most summer-marketed beverages experience a dip in sales in regions that experience colder seasons. This is why it is good to shift the marketing focus for a summer beverage to regions that remain warm all year. This sentiment should be carried over to fall and winter marketing strategies where the beverage experience is not fast and fun but more so slow and steady.

  Some beverage brands understand that their resources are best spent during the fall and winter. Understandably, you cannot be all things for everyone. Also, some brands are happy with their signature product. It performs well, and its consumers like it. In this case, the goal is to increase their consumer outreach while keeping their existing consumer base happy. Since beverage sales have peaks and valleys, capitalizing off of peak seasons will help to mitigate the dip in sales during low seasons such as dry January or the summer if your beverage is not a go-to choice.

  The main component to remember when building a fall or winter marketing strategy is that your consumer desires familiarity and predictability with simple yet effective surprises. Showcase how your brand fits perfectly into these slower times, where quality connections and interactions are of higher value, where beverage choices are more of an added fixture complimenting a friendly gathering and not the star of the party.

Raising a Glass to Success

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Tips & Best Practices for Craft Beer and Spirit Producers

3 men toasting with 3 full beer glasses

By: David DeLorenzo

Beer and spirit development is something of an art. The masterminds behind these crafts must have keen awareness and attention to detail to ensure the best result, from flavor to body.

  However, if they own and operate the establishments that serve their specialty sips, they must also be masters of entrepreneurship. This often includes leading and managing staff, handling payroll and ensuring the company’s insurance properly protects the business, its staff and patrons.

  As beer and spirit producers are experts in their craft, I am an expert in hospitality insurance, specifically for bars, restaurants, tasting rooms, brewpubs and other establishments that serve food and alcohol. This niche market has unique, intricate circumstances, so business owners need to understand the ins and outs of insurance.

  Craft beer and spirit producers don’t have to get an entire education on the topic, but being informed enough to find the right broker to guide them will make a difference. From the perspective of a 20-plus-year veteran insurance broker who carved out a niche just for this set of businesses, here are some tips and best practices to succeed in this market.

One Small Lease for a Business, One Giant Leap Toward Fulfilling a Dream

  In many cases, a business starts with one inkling of a dream. Soon after, a lease will likely be required to make this dream a reality. The importance of the establishment’s location cannot be understated when transforming the mirage into a tangible reality. Second to the foundation of the dream is the lease that will define the leasee’s responsibilities and entitlements. Insurance on the lease is pivotal in that it can serve to safeguard the investment of your dream.

  Most leases have their own set of insurance requirements that can help set the stage for the success of a business. Paying close attention to the foundational aspects of the lease, as detailed next, can help ensure best practices and a solid foundation for the future of the business.

Assessing, Addressing and Avoiding Risks

  Having been in the hospitality industry for well over 20 years now as both a restaurant owner and an insurance broker, I have seen and experienced a lot of unique situations from different perspectives. So, when I say that understanding risks and exposures is a crucial factor of success, it’s coming from a place of lessons learned and knowledge gained. With that, here are some of the most beneficial ways to assess, address and avoid risks as a business owner in the hospitality industry.

  Serving liquor can bring joy and perils to a business owner who makes and serves wine, beer or spirits. While a clever cocktail menu enhances many establishments’ vibrant energy, every pour possesses potential risk, as overconsumption of alcohol often brings the consequences of poor decisions from fights to driving under the influence. Having insurance for liquor liability is a non-negotiable in protecting your establishment from lawsuits with allegations of negligence or overserving. Know the laws in your state and ensure your business is appropriately protected.

  Also vital to an establishment selling craft beer or spirits is proper assault and battery coverage. Similar to liquor liabilities, assault and battery instances are often a result of overconsumption. To this end, you must be careful when safeguarding your establishment. 

  Consider General Liability the frontline of defense for your business. It will protect you when accidents happen on your property. This coverage could prevent a patron tripping over a loose tile at your establishment from becoming a lawsuit. While the occurrence and aggregate limits of insurance companies can seem overwhelming, understanding them is vital as they are the backbone of your safety net.

  Your establishment’s success largely depends on your staff, from the kitchen team to the faces that are seating and serving your guests. A solid employee base is essential; protecting those employees is even more important. Owners also need to protect their establishment from claims arising from hiring disputes to allegations of discrimination. This is why Employment Practices Liability Insurance (EPLI) is key. Hired and Non-Owned Auto is another important level of coverage for anything from sending an employee on an errand to making deliveries.

  Cyber Insurance is paramount for protecting a wine bar or taproom and its customer data in today’s digital world. Umbrella Insurance can be likened to the roof over your establishment. This coverage extends beyond the existing policy limits and offers additional protection. Not all umbrella policies are the same, so it’s essential to understand the terms, coverage, and exclusions.

  Ultimately, when it comes to coverage, it’s not just about more; it’s about the right coverage for your specific establishment. This is especially true in the case of a bar or restaurant that is serving wine, beer and spirits.

Brokers vs. Insurance Companies: Know the Difference

  Just as coverage is not created equal, not all help is the same. Business owners must know who to turn to and when. Quite simply, a broker is more than just a middleman. A broker will advocate for your business and help guide you through the complex world of insurance. A good broker will understand your needs and help you find the right fit for your establishment. Insurance companies are the policy creators and the ones who bear the risk.

  I cannot overstate the importance of working with a specialized broker who knows the intricate ins and outs of the craft wine, beer and spirits industry. They can become your partner in finding the best insurance for your business and throughout your journey as a business owner.

Prove It: The Value of the Paper Trail

  Documentation and certification are paramount. You need coverage, yes. But more importantly, you must be able to prove you have it when the time comes. While paperwork may seem daunting, it’s yet another line of defense in the protection of your business.

  Whether you dream of opening a wine bar or are already immersed in the hustle and bustle of a thriving taproom, there’s never a wrong time to ensure your insurance and policies are airtight. With these tips and best practices, you can rest easy that your business is protected so you can focus on your craft.

  Finding the right partners to help take your dream to the next level or to help you continue to thrive is at the forefront of your success. Through trust, communication and camaraderie, a long-term partnership with your specialized broker can serve as an important relationship to propel your business. 

  Out of his passion for serving the restaurant and hospitality industry, David DeLorenzo created the Bar and Restaurant Insurance niche division of his father’s company, The Ambassador Group, which he purchased in 2009. For more than 20 years, he has been dedicated to helping protect and connect the hospitality industry in Arizona.

For more information visit…

www.barandrestaurantinsurance.com

Cut Costs, Boost Productivity Through POS Software and Equipment

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Working Smarter, Not Harder

By: Cheryl Gray

The same software and equipment that allows a restaurant or bar customer to pay a bill right at the table is being deployed in breweries and distilleries around the globe.  Software and equipment that handles everything from point of sale to inventory is making the job of containing costs and increasing productivity easier for brewers and distillers using this technology.

  The payoff is realized through a bottom line that can show a respectable boost in productivity by freeing employees from excessive paperwork. That means more time is spent on making and selling products, not on the tedium of tasks that can rob any operation, large or small, of time and, ultimately, money.

  Some POS systems and equipment on the market not only fulfill the production, inventory and sales needs of breweries and distilleries but also perform some of the same tasks for wineries, taprooms and cideries.

  Whether breweries and distilleries are focused on customer retail experience or strictly production aspects, a point-of-sale system provides a way to streamline internal management tasks while, at the same time, pushing growth through technology. Automation is the operative word.

  Equipment, such as touchscreen monitors, allows breweries and distilleries to enter orders. Credit and debit card readers can handle payments with ease. In all cases, these and other kinds of transactions are simultaneously backed up, creating support documentation whenever it is needed. Inventory tracking, employee management, and other tasks formerly done by either hand or outdated software can now be quickly and accurately accomplished.

  Some POS software options now on the market work seamlessly with multiple devices, including tablets, desktops, laptops and industrial machinery. Some can be synchronized with barcode scanners and scales. Breweries and distilleries that utilize loyalty programs can use the software to create cross-platform reward programs to keep customers coming back for repeat business. Another use is printing invoices instantly and then sending those invoices by either email or a QR code. For customer retail-focused breweries and distilleries, handling different methods of payments, splitting checks and even managing tips can be accomplished by using a POS system. With some of the available POS systems, offline payments are automatically synchronized whenever the POS is reconnected.

  Spot-on bookkeeping is a necessary part of any brewery or distillery. A POS system can ease the job with timely and accurate reports. Some systems provide intuitive data with charts and graphs mapping out current and projected sales.

POS software and equipment present many options as a management tool. Breweries and distilleries can assign each employee specific access by creating unique staff login credentials using, for example, PIN codes or badges. POS systems can also generate sales reports and assist with time clock management.

  For inventory, POS systems offer analytics and visual data in real time. Breweries and distilleries can track in minutes how individual items are selling or how specific categories of items are faring. Advanced features, such as tag and comp tracking, are available.

  POS systems more focused on production offer a different set of features than those that are customer retail-focused. Among the core features of these types of POS systems is software to manage brewhouses and cellars.

  These systems provide log management options for brewhouses and distilleries. Managing daily tank checks and contract brewing are also features. These systems can also monitor yeast management and calculate material use in real time.

  For breweries, streamlining beer production through a POS system allows for beer production scheduling using a tank scheduling feature, material requirements planning, visual data such as calendars, production setup specific to each brewer and forecasting. 

  Another feature is managing beer formulas, designed to replace spreadsheets and instead use software for recipe management and monitoring costs for materials and inventory in real time. Streamlining regulatory compliance reporting is another important feature. This includes timely reports of excise taxes, international reporting and documentation as required for the TTB Brewers Report of Operations.

  Quality control options feature integrated quality control testing that includes evaluating formulas and analyzing recipes by test results based on in-bound raw materials tests and in-process quality control tests. Accounting features allow for a quick analysis of a brewery’s current production cost, projected future costs, and any calculations needed to assess the costs of developing new products.

  An analytics feature for both breweries and distilleries allows for smooth interfacing of POS software with programs that include Microsoft SSRS, Microsoft Crystal, Microsoft Dynamics ERP, Excel-based dashboards or Power BI from Office 365. Other POS systems deploy Apple devices, such as iPads. Another POS system feature is managing supply chains through assessing inventory on hand, sales orders, sales forecasting, keg management and mobile data collection.

  One plus to consider is a POS system that is flexible enough to be customized to meet the specific needs of a brewery or distillery, including variations in process, packaging, ingredients and multiple stages of production runs.

  On the distillery side of POS systems, tracking inventory, quality control, bookkeeping, managing employees, production and ordering materials are just some of the areas that come to mind when searching for the right system. The system also captures the potential for offline sales.

  Distilleries and breweries often participate in offsite events that allow them to introduce products to new customers they may not otherwise reach. Venues, such as local fairs and farmers markets, often occur where internet service is spotty. A POS system that supports offline use permits off-premise sales transactions to be stored when a credit or debit card is swiped. Once the distillery or brewery has that information captured with its POS system, the transactions are processed like any normal transaction after the system reconnects. The reward can result in a new revenue stream. One distillery using a POS system that supports offline sales reported revenue of more than $13,000 from offsite events in one year alone.

  Keeping track of inventory is just as important to distilleries as it is to breweries. Just as a POS system can track beer production, it can also keep up with distillery production, including tracking materials, recipes and employee time. On the retail side, a POS system can track which spirits are running low, versus which are lingering on the shelves. It can also keep track of customer tastes and tabs. 

  Costs for a POS system and accompanying equipment can vary. Experts advise that it is best to consult with a company that will factor in the size of a brewery or distillery and how it intends to use the software and equipment. In addition to monthly licensing fees to use the service, there is also the cost of leasing or purchasing equipment. How much equipment will be needed will depend on the size and scope of the brewery or distillery operations. Of course, knowing what post-sale customer service and technical support are provided is another important factor when choosing a POS system and accompanying equipment.

  Running a brewery or distillery is no small feat. Making and keeping one profitable begins with putting the right tools in place to ease operations, boost profits and decrease costs. Using a POS system may provide the solution for building and sustaining a successful business brand.

Craft Producers Overcome Challenges

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Automation & Sustainable Packaging Help Maintain Growth

man standing in a dark room in front of very large illuminated key hole looking through key hole

By: Rebecca Marquez, Director of Custom Research at PMMI

After years of soaring sales, craft brewers and distillers are facing forecasts for slower growth. Competition is stiff, margins are under pressure, craft beer sales have stalled, and consumer preferences are shifting toward spirits, hard cider, and non-alcoholic options, according to Craft Beer and Spirits: Success Through Packaging, a white paper and infographic published in February 2024 by PMMI Business Intelligence, a division of PMMI, The Association for Packaging and Processing Technologies. The craft industry also must overcome workforce shortages, address the growth in e-commerce, and meet continuing consumer demand for sustainable products and operations.

  To overcome these challenges, craft brewers and distillers are offering a broader array of products, packaging formats, and sizes. Some firms have begun offering copacking services to foster growth.

Adding Products and Services

  The best sellers of yesterday do not necessarily stay best sellers. As a result, craft producers must change their product lineup to appeal to today’s consumer and introduce the product, size, and multipack options they want. Innovative products and seasonal and special releases also help spark consumer interest and build brand identity. As consumer tastes have changed, some firms have turned to copacking to absorb excess capacity and boost revenue.

  This level of product variety requires adaptable equipment, which minimizes changeover time when switching among a range of packaging sizes and shapes and handling variations in labeling and secondary packaging. Such flexibility maximizes operational efficiency.

Automating Operations

  Producing a broader array of stock keeping units for in-house or private-label brands requires flexible processing and packaging lines. Increasingly, the flexibility needed to efficiently switch among a growing range of packaging sizes and formats is provided by automation, which also can enhance the working environment and help offset worker shortages and difficulties with recruiting and retention.

  Automation also can boost efficiency, quality, and productivity, according to The Future of Automation in Packaging and Processing report from PMMI, The Association for Packaging and Processing Technologies. As a result, more craft brewers and distillers are considering automating manual processes, especially depalletizing, case packing, and palletizing, and studying how their operation could benefit from the installation of automated guided vehicles, industrial robots, collaborative robots, and mobile robots, now increasingly supported by artificial intelligence and advanced vision capabilities.

Embracing Sustainability

  Sustainability remains a major focus for consumers and regulatory agencies with the goal of reducing landfilled waste, minimizing plastic usage, particularly in single-use applications, and establishing a circular economy. As a result, renewable materials like paper are receiving considerable attention.

  Once unheard of, paper bottles are making their way into the marketplace. Distillery 98 of Santa Rosa Beach, Fla., has adopted a modernized bag-in-box concept for its Half Shell Vodka. The package features a metallized polyethylene terephthalate pouch inserted in a creased paperboard blank, which has been molded into a bottle shape. The recyclable package supports circularity as it contains 94% recycled paperboard and cuts carbon emissions by a factor of six versus a traditional glass bottle. Preprinting the blank eliminates the need for a separate label. “We hope that our commitment to Half Shell’s transformative bottle persuades more companies to embrace environmentally friendly packaging,” says Distillery 98 co-owner Harrison Holditch. (1)

  A streamlined recycling process is the goal behind installation of a drainage press at Saint Arnold Brewing, the first craft brewer in Houston, Texas. The machine makes it possible to quickly prepare filled reject cans for recycling, reduces the number of cans awaiting recycling, eliminates the need to pay another company to prepare the reject cans for recycling, generates income, and is expected to have a quick return on investment. The craft brewer also reuses its printed paperboard six-pack carriers. A Recycle Rewards program gives consumers incentives to return the carriers. Reuse reduces waste as well as packaging costs. (2)

  Taking a different approach to multipack unitizing, Flying Tiger Brewery in Monroe, Louisiana, has adopted compostable four-pack rings for its Doux Drop wheat ale. Made from wheat and barley, the biodegradable rings can be eaten by wildlife, according to nola.com. The transition coincides with the company’s pledge to donate 5% of Doux Drop ale sales to the Louisiana Wildlife and Fisheries Foundation. (3)

  Four Peaks Brewing, an AB InBev craft brewer partner located in Arizona, is one of the first brands to add a recycling QR code across its entire product line. Part of a graphic redesign for the Four Peaks portfolio, the code helps consumers quickly determine where and how to recycle the packaging and is expected to boost recycling rates, divert 3.5 million pounds of material from landfills, and offset more than 5.1 million pounds of carbon dioxide equivalent emissions. (4)

  The latest brand-building, automation, and sustainability solutions will be on display at PACK EXPO International (Nov. 3–6, 2024, McCormick Place, Chicago). The new Sustainability Central will serve as an interactive destination with resources to help brands become more sustainable. The PACK EXPO Green program identifies exhibitors that provide technology such as sustainable processes and machines, renewable and biodegradable packaging, source reduction and lightweighting, recyclable and recycled-content materials, or innovations that reduce carbon footprint. Attendees also can identify resources via the PACK EXPO Sustainability Solutions Finder.

  As the world’s most expansive packaging and processing industry event in 2024, PACK EXPO International will feature 2,500 exhibitors offering solutions to many of today’s biggest manufacturing needs from an intersection of industries in 40-plus vertical markets. More than 45,000 attendees from CPG and life sciences companies worldwide will converge, searching for innovation, connection, and insight. For more information and to register, visit packexpointernational.com.

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1) Distillery 98. Launch of Hyper-Sustainable Half Shell Vodka Bolsters Florida’s Distillery 98 Spirits Portfolio, News Release, Feb. 14, 2023.

2) Hand, Aaron, Texas’s Oldest Craft Brewer Finds New Ways to Manage Aluminum Can Waste, ProFood World, Nov. 17, 2023.

3) Riley, Sean. Edible Beer Packaging from Eco-Friendly Beer Ingredients, Packaging World, Oct. 19, 2023. 

4) Flanagan, Casey. AB InBev’s Four Peaks Takes the Guesswork Out of Recycling, Packaging World, May 6, 2024.

Trends Shaking Up the Beverage Market  

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2 men and 2 women at a table in front of a laptop computer and smiling

By: Hanifa Sekandi

Trend fatigue is a real thing. Every year, it is something new. When you think your brand has captured the market with savvy marketing strategies, there is another plot twist. Everyone loves a plot twist in a movie, but not when it comes to modern marketing. It truly is a game of chess. There are many wins and many losses. Marketing teams need to have tough skin and a positive mindset. The long game in beverage marketing requires resilience. Also, a loss does not mean that your brand is failing. It means you must focus on marketing strategies that truly resonate with your audience. Every marketing campaign should include previous successful strategies that, time after time, have proven to be fruitful for your brand.

  As the CEO of a beverage brand, you need to ask your marketing team why they are not developing unique trends. Marketing campaigns that set in motion viral moments lead to other brands following suit and borrowing elements from your brand. Aside from being touted as the beverage of choice, being an industry gatekeeper elevates you to an elite league. And positions you with not just beverage brands but also other consumer goods brands. It also leads to opportunities for collaboration.

  When looking to jump on a trend, gravitate towards timeless ones if your budget is small. Hopping onto a viral trend works if your budget allows room for play, A.K.A. trial and error, rolling the dice. Some brands do not desire to be all things for everyone. Some brands are happy with their audience and consistent revenue. Many beverage brands in this category avoid trends and do not look for viral moments. For new brands, the pressure to surf the trend wave is overwhelming. Do you have a choice? Can you build your audience organically? If so, how? There are a few cost-effective methods to elevate your brand presence.

Here are two timeless trends:

Brand Collaborations

  Does your beverage remind you of extreme sport or a NASCAR race? If your beverage were a clothing brand, who would it be? Imagine your consumer. Where do they shop? What kind of activities do they find enjoyable? Is it fishing? Or golfing? Like beverage brands, consumer goods brands seek ways to reach their audience. An example of a unique brand collaboration was between Fender and Bixton clothing apparel. Fender needed to reach their audience through clothing buying preferences, and Brixton desired to be an apparel brand that musicians gravitate toward.  

  The Croc and Pop-Tarts collaboration is a fitting example of how to market two brands together. Both brands can reach their audience and attract new consumers from brand collaborations. This was a limited edition launch during the summer. When people purchased a pair of Crocs Classic Clogs, they would receive a box of Pop-Tarts and edible crocodile-shaped Jibbitz candies. This promotion ran for only three days, and a limited amount was available for purchase. Those who wanted to purchase this limited edition had to sign up at a microsite designed exclusively for this collaboration. Overall, this was a great marketing strategy to improve brand awareness. Having a sign-up form also allowed both brands to gain new subscribers to their newsletters. 

  Heineken, in 2017, partnered with BAPE clothing. For this collaboration, sweatshirts, backpacks, accessories, jackets and T-shirts were designed to combine BAPE and Heineken branding. These custom-designed items were only available at BAPE stores. The subliminal marketing in this effortless campaign strategy is notable. This is an out-of-home marketing strategy that illuminates the influence that clothing has on consumer choices and the beverages they purchase. Heineken as a beverage of choice when ordering a beer at the local bar after a visit to a BAPE store is a likely occurrence. Everywhere people go, they are influenced by the advertisements they see. Did you want pizza because you truly desired it, or is it National Pizza Day, and you keep seeing social media posts of the best pizza places?

  So how do you get started? How can you dream up a savvy brand collaboration? Research. Spend time understanding the behavior of your desired audience. Look at the brands they lean towards. Find out if the brands you have in mind have done brand collaborations before. Do not approach the marketing director of the brand you have in mind without a plan. You need to pitch ideas and why both brands would benefit from this collaboration. Set the stage for brainstorming ideas and opening the conversation. If you are lucky, they may see this as the perfect pairing. In some cases, you may need to present a marketing plan that allows them to visualize what this collaboration would look like. In addition, highlight the benefits for both brands if this collaboration occurs. 

  Should you only approach big, popular brands? No. Both BAPE and Brixton are niche brands. They target a specific consumer base. The sky is the limit with brand collaborations. Crocs also collaborated with KFC. With brand collaborations, you can do several in a year. Supreme clothing and Oreo collaboration is another notable think-outside-the-box marketing strategy. The food your consumer loves in the color of the clothing brand they cannot get enough of. Is your top-shelf tequila or ale the next limited-edition ice cream flavor? 

A Little Bit of Everything  

  Who doesn’t love a good Caesar salad? When the craving hits, you want to make your own. But you do not want to purchase every ingredient individually. Reaching for the pre-made salad mix is ideal. Consumers like it when brands offer them what they need without the hassle. Take the guesswork out of the process. If you sell cases of your beverage, consider including mixers or other drinks that pair well with your beverage. Multi-packs are quite popular, but consider making yours functional. Moreover, each beverage pairs well together.

  Consider something that has not been done yet, but maybe you will be the first. If your brand offers non-alcoholic beverages, split the pack in half to contain an alcoholic and a non-alcoholic option. Conscious beverage consumption is on the rise. This gives the buyer the option to have one or both. But for those who choose to drink less or attend a gathering with friends and do not drink, this takes the guesswork out for them. It is also very convenient.

  A little bit of everything also includes a signature fizzy flavored water that combines clean ingredients. This should be sold along with your beverage. Ensure that all the items are packaged or placed together in-store. Create promotional material that can displayed in-store that highlights your unique offerings. These campaigns can run along with recipes that a master mixologist has crafted for your brand. It also allows you to do a call-to-action where people can show you how they created cocktails from the limited edition offering. Take all the guesswork out for this limited-run campaign.

  An end cap is quite effective for this strategy. It saves the store trouble and gives you control over how you display this promotion. The beauty of this strategy is that you will introduce your existing consumers to a beverage from your product line that they have never tried. 

Two Trends for Success

  Each year, pick two timeless trends to implement. If previous trends are still serving you well, continue to utilize them, but be sure to add unique nuances so that they are familiar but different. Both brand collaborations and showcasing several products together are timeless trends that can be used all year. A little bit of everything works well in the summer and during the holiday season. Brand collaborations can occur every few months. Throw your net out wide to see how far you can go with each brand collaboration. Consumer brands are collaborating with famous bakeries. For example, Lakes Brew Co. collaborated with Ginger Bakers to make a Chocolate & Stout Loaf Cake with Lake Brew Co. Breaking Origin Imperial Stout. 

  Collaborations are not just limited to brands. Influencer and celebrity collaborations with limited-edition products perform quite well. This approach requires due diligence. Remember your brand ethos, what your brand represents and the desired goal. Partnering with a popular chef from a popular show could be fruitful. If you try this form of collaboration, do not assume you must collaborate with a popular influencer or celebrity. Your goal is to target your audience. Niche influencers and celebrities are also a smart choice. It also helps you narrow down your audience. Brand collaborations can have many angles. If you are bold, you can combine both trends: a little bit of everything and a brand collaboration. Both trends give you room to devise a marketing campaign that can help you become a noteworthy beverage brand. 

Become Aware and Prepare for National Preparedness Month in September

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flooding waters surrounding businesses in a city

By: Raj Tulshan, founder of Loanmantra.com

June kicked off the official start of hurricane season with the National Oceanic and Atmospheric Administration (NOAA) announcing that the Atlantic region will have an above-normal amount of hurricane activity1. Whether or not your business is in a coastal area, natural disaster can and does, strike anywhere. In recognition of National Preparedness Month in September, we’ll discuss how businesses can become more aware and prepare for natural disasters.

  Natural disasters such as hurricanes, wildfires, floods, earthquakes and tornadoes can have devastating effects on beverage businesses from damaged infrastructure, facilities and inventory to supply chain disruptions, shuttered operations and financial loss. A small business credit survey2 finds that more than 1 in 10 small businesses suffer losses from a natural disaster each year. And for those small businesses that do endure disaster, almost half (43%) never reopen and an additional 29% percent go out of business within 2 years of the disaster3. At the same time, less than half of businesses plan for such events.

  That’s why planning for natural disasters is crucial for businesses to minimize costly disruptions and stay in business. A disaster preparedness plan facilitates and organizes employer and worker actions to prepare for emergencies while a business continuity plan determines how the business and its employees will continue operations during a time of disaster.

Here are Some Key Steps to Take for Preparedness

Assess the Risks: Conduct a thorough risk assessment to identify potential natural disasters based on the geographic location(s) of workplaces, offices, business sites, retail/restaurant/bars, headquarters, distribution, manufacturing plants and even hops fields. The risk assessment will form the basis of a disaster preparedness plan. This plan includes procedures for evacuation, sheltering, communication and recovery steps. Once this step is taken, it is a good idea to review current insurance policies to ensure they include relevant natural disasters and their potential outcomes. Consider additional coverage, if necessary, to protect against specific risks facing the business. Also look at the financial risks including current credit rating and access to loans, capital and financing available today. These financial resources may be needed in the case of business disruption, damages or significant business losses.

Business Continuity Plan (BCP): Create a business continuity plan that outlines how your business will continue to operate during and after a disaster. This includes identifying critical functions, establishing backup systems for data and recovery, alternative power sources (during outages) and ensuring employees know their roles. Ready.gov4 contains comprehensive planning and disaster recovery materials including situation manuals, test exercises, video training, emergency response plans, toolkits and more. Another resource for business continuity planning is a  toolkit5 for each type of natural disaster, from the Insurance Institute for Business & Home Safety (IBHS).

Choose Teams: Designate the company stakeholders who should serve as emergency response team leaders and will be responsible for implementing the plan. Team leaders could be based on specific functions, areas of expertise or critical assets. For instance, a team leader could be chosen from job category like executive leadership, operations, production, safety/quality, IT, sales, marketing, distribution, finance and administration. Make sure that leaders are willing and able to serve in these roles. Next decide the critical hierarchy of functions and where each team leader fits.

  Meet with stakeholders to discuss the responsibilities of each role in the recovery process and gain buy-in. Detail specific tasks required to restore business operations in each area. Discuss among group members to decide what each team requires to meet expectations. Identify staff members who will be part of each response team. Go with individuals who have necessary skills, knowledge, and authority to coordinate the staff during a disaster. Remember to assign backup team members to address any absences or overlapping duties. Provide resources and training to team leaders and members to familiarize them with roles, recovery procedures and tools.

Communication is Key: It is important to keep an updated directory list of company and supplier contacts with name and address location information, cellphone numbers, email addresses, home address and alternative contacts. Store the contact database securely and ensure its easily accessible to authorized personnel. Determine ways for employees to report their status and location in case of emergency.

  Establish communication protocols for employees, customers, suppliers and stakeholders before, during and after a disaster. Determine which communication channels will be used during a crisis. For instance: text, phone calls, SMS, e-mail, company-wide platforms, social media platforms and emergency notification systems.

  Create communication trees outlining the communication order and assigned leaders for each response team. That way a clear and efficient flow of info during a crisis. Using multiple communication channels helps team reach each other during a crisis. Develop incident-specific protocols that outline how teams share information during a disruption for guidelines on the frequency of updates, the level of reported detail, and the escalation process for urgent matters.

Check Facilities: Ensure your physical facilities are structurally sound and prepared for disasters. This may involve retrofitting buildings, securing equipment, and implementing safety measures. Conduct an audit of any back up energy sources and satellite communications in case of power and phone outages. Also communicate and distribute important safety information ahead of disasters like evacuation routes, fire escapes, location of important equipment controls, the water main valve shut off and the location of energy and gas lines. Conduct regular training sessions and drills so employees know how to respond to emergencies.

  Ensure important data is backed up and stored offsite that is needed for operations like transactions, formulations, customer data, transactions, assets, company and employee files, operating systems, applications and software that power business capabilities. If digital systems malfunction, data or information is compromised systems may break down and the ability to conduct business may be lost.

  Evaluate the vulnerability of your supply chain and identify workarounds if key vendors are unable to meet commitments during this time. Develop contingency plans with alternative suppliers and logistics solutions to minimize disruption and channel resources accordingly.

Financial Preparedness: Maintain enough financial reserves to cover immediate expenses after a disaster, such as repairs, employee salaries and operational costs during downtime. If this is not possible, assess your access to available credit and capital by talking with a financial professional. Make sure important documents are secure and available. For instance, at Loan Mantra business owners can set up a free account6 and keep copies of financial records in a safe, secure and encrypted environment. The IRS suggests that every plan should include copies of vital business records and financial documents: Bank statements, tax returns and insurance policies. They also suggest documentation of valuables through photos or videos that are stored in a safe location. Information on disaster assistance and emergency relief for individuals and businesses is available at IRS.gov7.

Community for Continuity: Businesses that respond to employee and community needs with expediency can profit during times of disaster and have a greater chance of staying and remaining in business. Harvard Business School Professor, Hirotaka Takeuchi, and 300 of his students spent 9 years studying why Japanese businesses not only survived disasters but thrived versus U.S. companies. As a country, Japan stands out for corporate longevity; 40 percent of companies that have remained in existence more than 300 years are in Japan despite devastating disasters8. These companies consistently focus on serving the common good versus pursuing layoffs and other cost-cutting measures in the face of a crippled economy.

Review and Renew: Natural disaster risks and business operations may change over time. Regularly review and update your preparedness measures accordingly. Using a disaster recovery plan checklist9 can help outline the essential aspects of a disaster plan for testing, training, planning and the recovery process. Once an emergency plan has been prepared, it should be reviewed and updated yearly.

  By taking steps to create a disaster preparedness plan to assess risks, plan for business continuity, choose the right team members, establish communication protocols, check and harden facilities, build up financial resources and remember to focus on community, businesses can enhance their resilience to natural disasters and mitigate potential impacts on operations, employees and customers.

  Raj Tulshan is the founder and managing member of Loan Mantra, a one-stop fintech and loan advisory platform that democratizes the loan process by providing corporate sized services and access to entrepreneurs, small and medium sized businesses. Connect with Raj and Team Loan Mantra at 1.855. 700.BLUE (2583) or info@loanmantra.com

1.“NOAA Predicts Above-Normal 2024 Atlantic Hurricane Season.” National Oceanic and Atmospheric Administration U.S. Department of Commerce, 23 May 2024, https://www.noaa.gov/news-release/noaa-predicts-above-normal-2024-atlantic-hurricane-season.

2. https://www.fedsmallbusiness.org/topics/natural-disasters. Accessed 7 Feb. 2024.

3 https://emilms.fema.gov/is_0111a/groups/23.html. Accessed 7 Feb. 2024.

4. “Business Continuity Planning.” Ready Logo, 21 Dec. 2023, https://www.ready.gov/business/emergency-plans/continuity-planning.

5. “Business Disaster Recovery Plan.” Insurance Institute for Business & Home Safety, https://ibhs.org/businessdisasterrecovery/. Accessed 7 Feb. 2024.

6. Loan Mantra. https://users.loanmantra.com/Home/Register. Accessed 7 Feb. 2024.

7. “Disaster Assistance and Emergency Relief for Individuals and Businesses | Internal Revenue Service.” Home, https://www.irs.gov/businesses/small-businesses-self-employed/disaster-assistance-and-emergency-relief-for-individuals-and-businesses. Accessed 7 Feb. 2024.

8. “Why Japanese Businesses Are So Good at Surviving Crises.” HBS Working Knowledge, 26 June 2020, http://hbswk.hbs.edu/item/why-japan-s-businesses-are-so-good-at-surviving-crises.

9 Velimirovic, Andreja. “Disaster Recovery Plan Checklist – 13 Critical Points.” PhoenixNAP Blog, 29 June 2023, https://phoenixnap.com/blog/disaster-recovery-plan-checklist.

Insights and Ideas for Bottling & Canning Your Craft Beverages

Cyndi Leave a comment
lady holding beer bottle

By: Alyssa L. Ochs

Bottling and canning are critical steps in the brewing and distilling processes, yet new ideas and industry trends are now influencing how beverage producers approach their packaging. Bottling still has its place in the craft beverage world for certain products and to adhere to consumer preferences. Yet more producers are turning to canning due to the reduced environmental impact, lower production costs and process efficiency.

  Breweries and distilleries benefit from choosing packaging systems that allow quick adaptation and flexibility if their needs or customer demands change. That’s one reason manufacturers have created machines that can handle both canning and bottling processes with minimal changeover downtime.

  Here’s a look at current bottling and canning opportunities and best practices to consider for modern breweries and distilleries.

Getting Started with Canning

  Craft beverage producers typically get into canning to sell more products because it’s convenient and profitable to sell canned beverages to-go behind the taproom bar. Oktober Design, a Grand Rapids, Michigan-based can seamer company, told Beverage Master Magazine that a single-head canner offers a low barrier to entry into production canning. Oktober began online sales in 2016 and has a location in Sparks/Reno, Nevada to serve West Coast customers in addition to its vibrant West Michigan shop.

  “Even a manually loaded seamer can seal over nine cans per minute, making it quick and easy to offer cans in display coolers, local markets and convenience stores,” said Dennis Grumm, Oktober CEO and engineer. “This lets you test how your products perform in new venues, offer distribution samples and try out different can sizes. It’s a tool you’ll wonder how you lived without.”

  Grumm said that getting started in canning is surprisingly straightforward and that the most challenging decision is often choosing your initial can size. But if you decide to switch sizes later on, it’s easy to swap out the necessary parts to accommodate different cans.

  “Ordering a can seaming machine and cans from our website is as simple as click and buy,” said Grumm. “We’ve also curated a wealth of how-to videos that cover everything you need to know. And if you have any other questions, we’re always just an email or phone call away.”

Examples of Canning Systems

  Brewers and distillers have numerous options when choosing a new canning system. A good canning system will preserve the taste and quality of your products while extending their shelf life and boosting your brand reputation. With an effective canning system, you can customize your production, ensure proper hygiene, achieve consistent fill volumes, maintain consistent carbonation and continually deliver fresh products to your customers.

  Pneumatic Scale Angelus, offers open-air CB50F and CB100F systems with magnetic flowmeter technology to fill up to 100 cans per minute. The company’s CB50C design utilizes counter-pressure filling technology perfect for ready-to-drink cocktails, hard seltzers and sparkling wines. Pneumatic Scale Angelus also offers a full rotary design with a compact footprint to fill up to 150 cans per minute in a smooth, continuous motion.

  Regardless of your chosen company, there are two main types of canning systems: single-head canning machines and full canning lines. Single-head canning machines are great for smaller breweries because they are affordable and easy to use. While full canning lines are considerably more expensive, they take care of the entire process, from purging to filling and canning.

  With an increasing number of beverage companies now canning more than just beer, it’s important to consider systems that can accommodate canned cocktails, hard seltzers, kombucha and cold-brew coffee. Look for canning systems that let you package various beverage types and fit into your space. Some canning systems support higher carbonation volumes than others, so assess the filling technology, tubing and flow control dials of the machines you are comparing.

Choosing a Can Seamer

 A can seamer is a valuable piece of equipment in the craft beverage industry and might be the key to boosting your to-go sales without breaking your budget.

  “Our most popular product across both breweries and distilleries is the Model 8 Automatic Can Seamer,” said Grumm from Oktober. “What varies is typically the can size chosen for different types of beverages. Craft breweries often opt for 16 oz. or the large 32 oz. cans, while premium beverages are often offered in 8 oz. or 12 oz, ‘sleek’ cans. The versatility of the Model 8, which can seal any can size, makes it the favorite in many craft beverage categories.”

  Grumm said that many of Oktober’s machines have sealed hundreds of thousands of cans with minimal maintenance.

  “A simple wipe-down every day and a dab of grease in a couple of spots periodically is all it takes to keep your seamer running smoothly,” said Grumm. “If anything does go wrong, it’s usually a quick adjustment or a small, inexpensive replacement part that we can guide you through replacing with common hand tools. After nearly nine years in the business, we still don’t need a dedicated service team, and we plan to keep it that way.”

Sustainable Bottling Ideas

  One reason why breweries and distilleries are switching to cans is for sustainability. However, modern technology is paving the way for sustainable bottling systems that give beverage producers more choices without compromising their values.

Innovative companies are experimenting with alcohol bottles made from recycled PET, which are far lighter than glass and BPA-free. The British packaging company Garcon Wines makes these bottles flat so they fit nicely into cartons without extra packaging and in larger quantities on shipping pallets. PET bottles can often be refilled multiple times and recycled, offering shatterproof properties and lighter weight.

  Graham Packaging sells recyclable PET cans and bottles for beer, wine and spirits. Its products have a proprietary barrier technology that provides excellent oxygen, carbon dioxide and light protection. Meanwhile, the sustainable bottles are easily accessible with recloseable screw caps and are easy to transport, lightweight, recyclable and shatterproof.

  Another company, Frugalpac, makes bottles with 77 percent less plastic than a standard plastic bottle and that is resistant to humidity, spills, premature spoiling and breakage. The Carlsberg Group created a “green fiber bottle” made from paper, and other beverage organizations have been working toward creating totally organic paper bottles. Meanwhile, some craft beverage makers participate in BottleDrop Refillable programs to pursue sustainability goals while controlling supply needs and overcoming potential shortages.

Consider Contract Canning and Bottling

  Many breweries and distilleries contract out their canning and bottling to an outside company. These companies often handle the entire packaging process for you and can provide advice about the best bottles and cans for your products.

  Outsourcing this work can be beneficial because canning and bottling equipment can be prohibitively expensive and challenging to set up and maintain. Staff members must also be adequately trained to operate it safely and effectively.

To choose a contract canner or bottler, determine your budget and assess the menu of various companies’ services. If you don’t have the time, space or money to control your own packaging process, a contract arrangement may provide new avenues for experimentation and expansion as your business grows.

How to Boost Your To-Go Sales

  To-go sales can dramatically improve a business and turn on-site consumers into brand advocates outside the tasting room. To-go purchases are investments in your brand, an opportunity for greater public exposure and ensure a higher likelihood of customer return. 

  Grumm from Oktober advises producers to use clear, engaging signage to inform customers about their to-go options and prices.

  “This simple step can prompt impulse purchases and drive last-minute sales,” he said. “Train your staff to mention to-go options, especially when customers show interest in specific products. Highlighting that they can enjoy their favorite items at home can encourage additional purchases.”

  Whether you choose cans, bottles or a combination of the two, it’s essential to research and understand what options are available and how they could affect your bottom line. As Grumm mentioned, simply having your staff members ask customers if they want to make a to-go purchase can create a huge jump in sales, thereby justifying a new canning or bottling investment in the long run. Research shows that customers who make to-go purchases are also more likely to return to your business, which is a great way to expand brand awareness and help it succeed. You can go one step further with this effort by creating attractive, eye-catching displays for your to-go products near the exit and offering discounts on seasonal products or rewarding loyal customers with special to-go deals. 

Elevating Beverage Distribution

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The Case for AI-Driven Systems Over Legacy Platforms

android robot standing behind a bar serving a glass of alcoholic beverage

By: Ian Padrick – Co-founder and CEO of Ohanafy

The beverage industry in 2024 is characterized by rapid evolution, driven by shifting consumer preferences, technological advancements, and new market dynamics. As consumers increasingly demand healthier and more customized beverage options, the industry is witnessing significant changes in product offerings and business operations. This landscape presents unique challenges and opportunities for beverage distributors, particularly those operating on outdated legacy systems.

  Legacy systems, which have been the backbone of distribution operations for many years, are increasingly becoming a liability. These systems are often inflexible, unable to scale with business growth, and lack the advanced analytics capabilities required to respond effectively to fast-changing market conditions. They struggle with integrating new data streams and automating processes, leading to inefficiencies in inventory management, customer relationship management, and overall supply chain operations.

  A recent study by Aberdeen highlights a stark reality: businesses that spend 12% of employee time searching for data can incur up to $1.2 million in unnecessary costs annually for a company with 200 employees. This underscores the critical need for systems that enhance efficiency and profitability by reducing wasted time and resources on inefficient data management.

  In contrast, AI-driven systems offer robust solutions by harnessing the power of data analytics and machine learning. These modern platforms can integrate diverse data sources, providing a holistic view of business operations and consumer trends. This integration enables more informed decision-making and faster response times. Therefore, transitioning to AI-driven systems is not just about keeping pace with technological trends but fundamentally enhancing beverage distributors’ strategic capabilities.

The Risks of Legacy Systems

  One of the primary risks associated with legacy systems is their inherent lack of integration capabilities. These systems often operate in isolation, meaning that data silos are typical. When information cannot flow seamlessly between sales, inventory management, and customer relations, inefficiencies abound. This can include delayed order processing, inventory discrepancies, and a poor customer service experience, which can erode trust and reduce client retention.

  Moreover, legacy systems typically lack scalability. As businesses grow and market demands shift, these systems struggle to adapt. This inflexibility can stifle innovation, as adding new features or expanding into new markets might require extensive manual intervention or even complete system overhauls, which are costly and time-consuming.

  Another significant risk is the absence of robust analytics. Legacy systems do not utilize the power of modern data analytics, which is crucial for making informed decisions. Without these insights, companies may make choices based on outdated or incomplete data, potentially leading to a general lack of strategic decisions.

The AI-Driven Solution

  Transitioning to AI-driven systems can effectively address these risks. AI-enabled platforms offer integrated tooling where data from various departments is consolidated, providing a unified view of the business. This integration enables more streamlined operations, from inventory management to customer relationship management, ensuring that all parts of the business are aligned and efficient.

  AI-driven systems are inherently scalable. They are designed to grow with the business, easily accommodating new functionalities or market expansions without the need for disruptive overhauls. This flexibility ensures that beverage distributors can respond quickly to market changes, a crucial capability in an industry as dynamic as beverage distribution.

  Perhaps most importantly, AI-enabled solutions have advanced analytics and machine learning capabilities. These tools can analyze large datasets to uncover trends and patterns that might not be visible otherwise. For instance, predictive analytics can forecast demand more accurately, enabling better inventory control and reducing overstock and stockouts. Similarly, machine learning algorithms can enhance customer segmentation and personalize marketing efforts, increasing sales and customer loyalty.

Applications of AI in Beverage Distribution

  The transition to AI-driven systems in the beverage distribution industry represents a significant leap forward in operational efficiency and market responsiveness. Here are several systems that stand to benefit from leveraging artificial intelligence to enhance various aspects of the distribution process.

Inventory Management: AI significantly improves inventory accuracy and efficiency. By analyzing patterns in sales data, AI can predict future demand more accurately, enabling distributors to optimize their stock levels. This reduces the risk of overstock, which unnecessarily ties up capital, and understock, which can lead to missed sales opportunities. For example, AI systems can integrate historical sales data with seasonal trends and promotional schedules to adjust inventory levels in real-time.

Route Optimization: AI-driven logistics applications can dramatically improve delivery efficiency by optimizing delivery routes and schedules. These systems analyze traffic data, weather conditions, and delivery windows to suggest the most efficient routes, reducing fuel consumption and delivery times. This cuts costs and enhances customer satisfaction through faster, more reliable service.

Customer Relationship Management (CRM): AI enhances CRM systems by providing deeper insights into customer behaviors and preferences. This enables personalized marketing strategies, such as targeted promotions and product recommendations based on data-driven insights. For instance, an AI-enhanced CRM system can identify purchasing patterns and predict when customers might be ready to reorder or suggest new products they are likely interested in, thereby increasing the potential for upselling and cross-selling.

Sales Forecasting: AI algorithms excel at processing large datasets to identify trends that would be difficult for humans to spot. In beverage distribution, AI can analyze data across multiple channels to forecast sales with a high degree of accuracy. This allows distributors to better align their schedules and marketing strategies with anticipated market demand, reducing the risk of surplus and shortages.

Operational Efficiency: Beyond these specific applications, AI drives overall operational efficiency by automating routine tasks, such as order processing and payment transactions. Automation reduces the likelihood of human error and frees staff to focus on more strategic tasks requiring human oversight, such as customer service and business development.

Security and Compliance: With increasing data breaches and stringent data protection regulations, AI systems can also provide advanced security measures to protect sensitive information. Moreover, AI can help ensure compliance with industry regulations by monitoring and reporting deviations in real-time, thus avoiding potential legal and financial penalties.

Embracing the Transition to AI-Driven Distribution

Distributors that have switched to AI-driven systems often report substantial improvements in operational efficiency and customer satisfaction. However, transitioning to a new system is not without challenges. It requires careful planning and a clear understanding of business needs. The key to a successful transition lies in choosing a platform that is not only powerful but also aligned with the business’s specific needs and goals.

  While legacy systems have served the beverage distribution industry well for many years, the rapid pace of technological advancement and changing market dynamics make it clear that the future belongs to AI-driven solutions. By embracing these modern systems, distributors can remain competitive in an increasingly complex and fast-moving marketplace.

About the Author

  Ian Padrick is co-founder and CEO of Ohanafy, the leading distribution management platform built on Salesforce. Before Ohanafy, Padrick has served in strategic roles at Salesforce, Veeva, nCino, Accenture, and Capgemini. He is highly regarded for his strategic vision and leadership within the Salesforce community and for continually advocating for the integration of AI-enabled technologies to enhance business operations and customer engagement. To get in touch, visit ohanafy.com/contact.

Ten Ways to Keep Profits on Tap

Cyndi Leave a comment
piggy bank sitting on short stacks of money

By: Raj Tulshan – Founder & Managing Member of Loan Mantra

Over the past two years the cost to run a business has risen sharply with inflation surging to over 13%. This squeeze leaves many business owners trying to operate more efficiently and find ways to do more with less — making every dollar count. A recent survey by Vistage reports that two-thirds of small business owners have either cut costs or plan to reduce spending in the near future. The majority, 67%, also plan to seek business funding over the next 12 months.

  Finding and evaluating the best financing options can be confusing for business owners that are already short on time and money. Using a one-stop loan application portal to find the best suited options like the one at Loan Mantra is a way to access multiple commercial loan options in one place and avoid high-interest debt. In addition, here are some tips to keep profits on tap.

Monitor Cash Flow Closely: Cash or flow management is critical for beverage businesses, as even minor fluctuations can have a significant impact on financial stability. Keep a close eye on your cash flow by monitoring incoming and outgoing payments regularly. Implement invoicing strategies to encourage prompt payment from customers and consider offering discounts for early payment to improve cash flow. By staying proactive and vigilant, cash flow crunches can be avoided to maintain a healthier financial position in the long run.

Reduce Overhead Expenses: Examine overhead expenses carefully and look for opportunities to reduce costs wherever possible. This may involve renegotiating lease agreements, downsizing commercial space, installing lighting timers or switching utilities and service providers to save on electric bills, phone service and Wi-Fi. Encourage employees to adopt energy-saving practices, such as turning off lights and equipment when not in use to save money on lower utility bills. Have major systems inspected for water leaks and waste. Saving dollars on overhead expenses is one of the best ways to contribute to your bottom line.

Negotiate with Suppliers: Building strong relationships with your suppliers can pay large dividends when it comes to saving money. Don’t hesitate to negotiate for better prices or discounts, especially if you’ve been a loyal customer. Explore different vendors and compare prices to ensure you’re getting the best possible deal on supplies and materials. Additionally, consider joining co-ops or buying groups with other businesses to increase purchasing power and negotiate bulk discounts.

Invest in Human Capital: Thirty three percent of U.S. companies expect employee turnover to increase this year according to a recent poll, costing an average of $36,295 per employee. While it may seem counterintuitive to spend money on training, investing in your employees can yield significant long-term savings. Research from LinkedIn found that 94 percent of employees say they would stay at a company longer if it invested in helping them learn. Well-trained employees are more efficient and productive, leading to lower turnover rates and reduced recruitment costs. Provide ongoing training and professional development opportunities to help employees stay current with industry trends and best practices. By investing in your team, you can build a skilled workforce that drives business growth and profitability.

Get the “Lifetime” worth out of Equipment: I was talking to a friend about their recent doctor’s office visit. During the visit, my friend noticed that as the medical tech entered the room, they dragged a large unit behind them bumping into both doorposts and finally hitting a back wall. They noticed how this tech roughly handled expensive medical equipment. This illustrates an important point. If a company purchases equipment designed to last 10 years but it only lasts 5, it will need to be replaced before its “lifetime worth,” or it will need replacement 5 years earlier than expected. This can add up to thousands if not millions of dollars in unintended expenses.

Train to Remain: Make sure that employees are properly trained to use equipment safely to minimizes workplace hazards to avoid unfortunate events that could result in heavy losses. It is a good idea to periodically check on employees to see how costly business equipment is being used and reward or remediate actions if needed. And don’t forget machines need regular scheduled maintenance for cleaning and repairs. Getting a lifetime worth out of equipment contributes to automatic savings and impacts profit.

Moderate prices: The public has hit a tipping point where high prices are driving consumers away from fast and quick-serve restaurants to eat at home. Prices at quick serve establishments rose 5% in March over the same month in 2023 while grocery prices have increased more slowly, according to the Bureau of Labor Statistics. The take-away? If price increases are needed, avoid this kind of consumer sticker shock by moderately raising prices slowly over time.

Drink in new distribution sources: Beverages now influence where consumers are choosing to eat. The National Restaurant Association’s 2024 State of the Restaurant Industry report, says that alcoholic beverages no longer take a back seat as just a “compliment” to dinner but can influence consumer’s choice of one restaurant over another acting as a key driver to the establishment. Seven out of 10 consumers who drink beer, wine, or cocktails claim the availability of alcohol beverages would make them more likely to choose one restaurant over another. Alcohol brands can approach eateries, local restaurants or franchise chains to form partnerships to push sales.

Get ready to go: Half of full-service restaurants deliver alcoholic drinks with food orders and 96% say they’ll continue to if permitted to do so in their area. 93% restaurants also offer alcoholic drinks with pick-up orders, according to the same NRA report. For operators who serve alcohol, beer is the most common alcoholic beverage served with takeout or delivery orders, with 83% of restaurants offering it. Wine by the bottle is available at 65% of full-service restaurants that sell alcohol with takeout or delivery, and cocktails are at about 6 in 10 full-service restaurants selling alcohol to-go. Locally sourced beverages, such as craft beers, are also popular among Gen Zs and millennials, as are alcohol-to-go selections.

Fake it until you make it: The mocktails are coming! The popularity of no and low-alcoholic beverages are anticipated to grow to 4% share of the alcohol market by 2027. Non-alcoholic beverage sales increased by 32% as compared to the year before while total alcoholic beverage sales for the same period only increased by 1%. Non-alcoholic beer “dominates” the no-alcohol category over wine and spirits while non-alcoholic craft beer claims over a quarter (28%) of the non-alcoholic beer available. The demand is partly fueled by more health-conscious, younger consumers who are concerned about personal wellness, low carb/calorie offerings and choosing brands that are sustainable and environmentally friendly.

  Saving money is a crucial aspect of managing business and implementing the right strategies can make all the difference. By investing in human capital, getting a lifetime worth in equipment, negotiating with suppliers, monitoring cash flow, reducing overhead expenses and expanding distribution channels, business owners can achieve greater financial stability and long-term success. With careful planning, smart decision-making and by making every dollar work harder, beverage businesses can thrive in today’s tough market and keep more profits on tap.

  Raj Tulshan is the founder and managing member of Loan Mantra, a one-stop FinTech business portal that democratizes the loan process by providing corporate sized services and access to entrepreneurs, small and medium sized businesses. Connect with Raj and Team Loan Mantra at 1.855. 700.BLUE (2583) or info@loanmantra.com.

Event-Season Tips for Restaurateurs & Vendors

Cyndi Leave a comment
man and women with beer glasses sitting outside with other people

By: David DeLorenzo

Summertime often equates to weddings, events, festivals, outdoor concerts and more where a variety of vendors converge to serve food, drinks and more. Establishments and vendors have a unique opportunity through these events to promote their businesses to a whole new demographic. However, these types of events come with their own set of specific circumstances in which restaurants and vendors need to be prepared for — and that they need to protect themselves from.

  First off, the more you know about the situation you’re going into or the event you’re scheduled to participate in, the better. This is key because your extended coverage for these events will depend on exactly what is going on during the event. You’ll want to make sure that you have your own insurance and understand exactly what that insurance will cover and what it won’t for any off-premises event.

  This will depend on not only your carrier but also on whether your current coverage will extend to the event. The extension of the premise may not. Some carriers have a designated premise of the endorsement, which will not allow their policy to cover the business at an event.

  It also depends on the role your business is playing at the event. For example, if you are a vendor of the event and not the host, the coverage requirements needed will be up to the host of that specific event and the city in which the event is being held, if it is held on city property.

  If the host has insurance for their event, it doesn’t necessarily mean that if a vendor shows up there they would have coverage if they were pulled into a lawsuit. So before committing to an event, check with your broker or insurance company to see if that coverage extends.

  Additional event coverage may require an added fee and your carrier will probably want to know the exposure basis of the event. This can include the size of the event and how many people are expected. This includes not only the total attendance count but also what percentage of those ticket sales include alcohol sales.

  The carrier will likely specifically want to know the event’s estimated attendance count of people consuming liquor. That number will be taken into account differently than the total attendance count.

  The carrier will also want to know what exactly is taking place at the event because anything from bouncy houses to ax throwing can become liabilities. It’s important to note that 99% of the time, these types of things are automatically excluded from a policy anyway.

  For example, consider if you’re a vendor participating in an event and you have your own insurance coverage that protects you from liquor liability for serving people at the event. If there happened to be an accident due to ax throwing and they were to get sued based on the ax injury because of alcohol, there would be an exclusion altogether.

  It is highly unlikely that a carrier will cover a vendor for those instances. That’s why it’s essential to recognize that in many cases, events with dangerous activities should be approached with a “buyer beware” attitude. You need to be cognizant that at these types of events, your company could be pulled into a claim or lawsuit that you may not have coverage for.

  Major events and festivals are often seen as opportunities to make more money, get additional exposure and get your name out there. However, if you aren’t fully aware of all the details of the event and all the things happening during it, you could be putting yourself at risk.

  It’s also important to recognize that with proper coverage, your carrier should cover your business for the normal instances of serving alcohol at the event. But with exclusions for things like the examples of a bouncy house or ax throwing, you would not be covered. If there was a claim due to an accident that was excluded on the premises policy, then anyone and everyone participating in the event would be on their own to defend themselves in the case of a lawsuit.

  However, if a person who consumed too much alcohol then decided to get into the bouncy house and broke both their legs may try to go after the vendors that served alcohol at the event, that would likely come out of their pocket, as an insurance would likely automatically decline it. On the other hand, if a patron drinks too much at the event and gets into a car accident, the vendor’s liquor liability coverage would likely protect them in that instance.

  It’s also wise to look for assault and battery exclusions on event coverage policies. Many of these events have assault and battery exclusions, meaning that if someone gets beat up at the event and wants to sue the host or a vendor, they will not have coverage for that.

  While event season is heating up, we’ve continued to see pretty steady and fair market premiums for event and off-premises coverage. This is highly situational and also depends greatly on what the host city or venue requires in terms of coverage.

  In many instances, two different coverages may be required — one from the city and one from the venue. Some cities may require coverages that are through the roof while others may only require a minimum limit. It is vital to understand what the municipality where the event is taking place is asking for in terms of limits on insurance.

  For example, they may ask for $1 million or they may ask for $5 million. However, if they ask for the latter, this can be discouraging for vendors to participate. At that point, it becomes very difficult for a company to see the value in signing a piece of paper for $1,500 for one day of $5M worth of coverage. It’s overkill, quite honestly because you already have all these participants carrying their own insurance, plus the venue, the event promoter and the city, which all have their own insurance as well.

  To foster and encourage a sense of community through local festivals and events, the municipalities really have to keep it reasonable. On the flip side, the insured parties have to understand exactly what it is they are being insured for — and even more importantly, what they are not insured for. That will be determined on a situation-by-situation basis by the carrier.

  Weddings can also create unique circumstances in terms of coverage. What falls on the venue and what falls on the vendor may depend on the venue and the situation as well. In many cases, we recommend that the client gets coverage for general liability and liquor liability. However, liability will likely fall on the venue itself if they are the ones serving alcohol.

  It all comes down to making sure that whoever is serving the alcohol, whether the venue or the vendor, is well-trained and certified in liquor training. This is a key way to protect your business while also keeping staff and patrons safe throughout event season.

  Out of his passion for serving the restaurant and hospitality industry, David DeLorenzo created the Bar and Restaurant Insurance niche division of his father’s company The Ambassador Group, which he purchased in 2009. For more than 20 years, he has been dedicated to helping protect and connect the hospitality industry in Arizona. For more information visit barandrestaurantinsurance.com.