Category: Equipment

Packaging & Processing Operations: Staying Afloat in the “Data Lake” 

Cyndi
photo showing computer data streams of all colors

In an era dominated by digital transformation, the packaging and processing industries increasingly rely on big data to streamline operations and enhance efficiency. Central to this revolution is the concept of the “data lake”—a vast, dynamic repository that stores and secures colossal amounts of raw data. PMMI’s white paper, Transforming Packaging and Processing Operations, offers a deep dive into the challenges and opportunities associated with data lakes, revealing how industry leaders leverage this resource to gain a competitive edge.

Understanding the Data Lake

  A data lake serves as a central point where businesses can store unstructured data across various sources until needed. One of the unique features of a data lake–and this distinguishes them from data warehouses–is that they are not schema-in. This means they can take in raw data in its native format without changing any of the data attributes from the source. They only apply schema to the data on the actionable side of the data lake once it has been processed for analytics, making it schema-out. Data warehouses, on the other hand, are schema-in, meaning the data must be structured before coming in.

  Data lakes are helping manufacturers solve concrete problems. With the schema-out structure of data lakes, manufacturers organize what information they need when they need it. This flexibility makes it an invaluable tool for machine learning, analytics, and real-time reporting, helping companies to react swiftly to market changes and internal demands. On the other hand, manufacturers must define their data needs with a schema-in structure before using it. And in most cases, they only end up using a fraction of the data.

  The packaging and processing industry is increasingly seeing the potential value of data as an asset. It is being used to measure and enhance business performance and operations, with applications including:

•             Measuring performance and downtime

•             Developing and tracking KPIs

•             Driving operational improvements

•             Performance opportunities

•             Analyzing equipment

•             Processing performance vs. expectations

•             Tracking quality and production metrics

•             Analyzing business operations

•             Driving, planning, safety, BOMs, specs, and operations improvements.

  For example, a quality problem—whether it is beverage contamination or a delivery that doesn’t meet specifications—can mean a dreaded slog through uncontextualized (or even paper) data to find out what happened. Moving to a data lake turns this process into a much simpler query that can be done in minutes. Proactively creating traceability reports means that manufacturers can quickly identify the underlying issue and pinpoint just the affected units, keeping products on the shelves and ultimately protecting consumers and the bottom line.

  Finally, predictive maintenance is often considered the pinnacle of data-driven manufacturing. According to another report by PMMI, Trends in Remote Monitoring, the ability to use predictive maintenance was seen as either somewhat or very important by 83% of end-users. Reduced machine downtime is a major factor in end-users specifically investing in predictive and preventative maintenance, with 92% of end-users citing machine downtime as a very or somewhat important factor. Data is the foundation and requires a combination of people, process, and technology expertise. Without enough data and the right data architecture, it will remain elusive.

  Data lakes are the foundation to process and analyze immense amounts of sensor data in real time and then visualize it to enable pattern recognition. This opens the door to testing and training machine learning models on historical sensor data to identify the precursors to machine failure. As manufacturers and their technology partners fine-tune these models, they become increasingly adept at predicting machine failure far enough in advance to perform necessary maintenance to prevent failure.

  However, the Transforming Packaging and Processing Operations white paper shows that while data lakes are widely acknowledged for their potential, many companies in the packaging and processing sectors are not fully tapping into this potential. End-users and OEMs alike admit that there is significant room for improvement in how they utilize data to enhance operational efficiencies and drive business growth.

Challenges in Data Management

  One of the primary challenges in managing a data lake is ensuring the quality and consistency of the collected data. PMMI’s findings indicate that data management practices vary widely, from manual data entry to sophisticated AI-driven analytics platforms. This inconsistency can lead to data reliability and usefulness issues, potentially turning a data lake into a “data swamp.”

  Security is another critical concern. As companies move more of their operations to the cloud, they must protect data against breaches and theft. According to the PMMI white paper, data governance and security challenges emphasize the need for robust strategies to manage and protect the vast amounts of data collected and stored in data lakes. This includes concerns about interoperability and sharing data across different platforms and stakeholders while ensuring data security and privacy.

  One end-user participant in PMMI’s research pointed to the importance of storing data in the cloud so that it can be shared across organizations and noted, “the more data you have, the more value you’ll create at the data lake” and “the more people who have access to the data, the more that value can actually be realized.”

  However, data security and confidentiality concerns can prevent data from being shared and fully leveraged. These are often the most common threats within IT teams in factories and can lead to tension between IT and OT teams. The white paper suggests that action is needed to bring IT and OT leaders together and to involve IT specialists more in discussions about data analytics. Although the technology to leverage data offers “tremendous economic benefits,” very real risks can be “profoundly expensive to the organizations if any of these security vulnerabilities get exploited.”

Leveraging AI and Advanced Analytics

  Artificial Intelligence (AI) and machine learning are playing increasingly critical roles in navigating the complex data landscapes of the packaging and processing sectors. The rise of artificial intelligence and advanced analytics has transformed the potential of data lakes. These technologies allow companies to predict trends, automate decision-making processes, and optimize operations in ways previously unimaginable. For instance, as previously noted, AI-driven predictive maintenance can anticipate equipment failures before they occur, minimizing downtime and maintenance costs.

  The integration of AI extends beyond maintenance. It’s also transforming operational processes by enabling the analysis of vast data sets to identify inefficiencies and optimize production lines. AI’s potential to offer predictive insights can lead to significant improvements in both productivity and operational reliability.

  The Transforming Packaging and Processing Operations white paper underscores the varying degrees of AI integration across the industry, with some companies at the forefront of innovation and others just beginning to explore the possibilities. The common thread, however, is a clear recognition of the need to invest in these technologies to stay competitive.

Collaborative Efforts and Industry Standardization

  PMMI’s white paper stresses the importance of collaboration and standardization to maximize the benefits of data lakes. By sharing data and analytics tools, companies can gain insights that would be unattainable in isolation. Standardizing data formats and analytics processes can also facilitate a more seamless integration of new technologies across the industry.

  The PMMI white paper highlighted several collaborative initiatives, such as the Vision 2030 series and the OpX Leadership Network, which are focused on developing industry guidelines and best practices. These efforts are essential in fostering a more integrated and efficient data management and utilization approach.

Future Directions and PACK EXPO Southeast

  Looking forward, the report suggests that embracing data-driven strategies will be crucial for the packaging and processing industries. PACK EXPO Southeast (March 10-12, 2025; Georgia World Congress Center, Atlanta) offers numerous resources, such as Innovation Stage presentations and networking opportunities, to aid in this transition. These gatherings allow industry leaders to share best practices, explore new technologies, and form partnerships that can help them navigate the complexities of data management.

  The three-day event comes on the heels of a successful PACK EXPO International, the largest packaging and processing trade show this year. PMMI forecasts a convergence of 7,000 attendees to Atlanta from consumer-packaged goods and life sciences companies based in the Southeast to witness innovation in action, learn about the latest industry trends and topics, and network for brand and professional growth. PACK EXPO Southeast will feature 400 exhibitors displaying the latest solutions and technologies for 40+ vertical markets over 100,000 net square feet of exhibit space, making it a perfectly sized show where attendees can explore many solutions yet have a personalized experience and meaningful interactions to address their specific needs.

  As the packaging and processing industries continue to evolve, the role of data lakes will become increasingly central. By addressing the challenges of data management, harnessing the power of AI, and fostering industry-wide collaboration, companies can unlock the full potential of their data to drive innovation and efficiency. The insights from PMMI’s report and the resources provided at PACK EXPO Southeast are invaluable tools in this ongoing journey, helping businesses stay afloat in the vast data lake and thrive in these turbulent digital waters.

  Dive into the innovation epicenter and discover answers to your packaging and processing challenges at PACK EXPO Southeast. Taking place in one of the U.S.’s most vibrant manufacturing hubs comes the new PACK EXPO Southeast (March 10-12, 2025; Georgia World Congress Center, Atlanta). Discover the future of packaging and processing at the most comprehensive show in the region offering crossover solutions for any of today’s biggest manufacturing needs to 40+ vertical markets. Brands will find the Atlanta location, a manufacturing hub of the region, convenient and easy to access for teams to attend, assess the latest technologies, learn from leading industry experts, and make valuable connections to meet current or upcoming projects. For more information and to register, visit packexposoutheast.com.

How Conveyors Are Used and How to Choose the Right One

Cyndi
photo of conveyors in a facility

By: Alyssa L. Ochs, Staff Writer

Generally speaking, a conveyor is a mechanical system that automatically transports materials within a designated area. They are helpful in many different industries, including craft beverage production, to increase efficiency and productivity while maintaining food-grade safety standards and reducing manual labor.

Conveyors serve various functions in breweries and distilleries, including grain transportation to and from silos, moving malt within a small area and transferring bottles between packaging and labeling machinery. Fortunately, there are various conveyor options available to breweries and distilleries today.

  Here are some insights about how conveyors help producers of craft beverages and tips for choosing the right one for your operations.

Understanding Conveyor Technology

  Various types of conveyor technology are used in craft beverage production to handle malt. Flexible screw conveyors are an excellent option for this purpose because they don’t require extensive cleaning or maintenance. The spiral is the only moving part in a flexible screw conveyor, making it ideal for low throughput and avoiding cross-contamination. Aeromechanical conveyors work well for microbreweries with a small footprint. They incorporate polyurethane discs evenly spaced in an air stream to handle malt for greater throughput and energy efficiency.

  Conveyors also move cans and bottles between different pieces of machinery during bottling and packaging. This process requires regular cleaning and maintenance to keep the moving parts working properly.

  Chain disk conveyors are used to transfer grain and are effective in gently and quickly moving grain while improving yield. This type of conveyor pulls segmented disks through a tube for grain transfer. Meanwhile, pneumatic conveyors, which utilize compressed air, are preferred by large breweries. It is also possible to customize conveyors to achieve tailored solutions for breweries and distilleries and integrate them alongside existing systems and processes.

Types of Conveyors and Their Uses

  Breweries and distilleries have numerous choices about the types and sizes of conveyors they implement. Yet ultimately, the goal is to improve production efficiency and maintain the quality of beverages as materials move across conveyor lines.

  It is common to choose mass-flow conveyors for canning and bottling purposes whenever you need to move items vertically in mass quantities. With this conveyor, you can move products up or down in a mass or single flow at a rate of up to 2,000 units per minute with consistent movement.

  Reflow conveyors temporarily accumulate products moving down a conveyor line and provide necessary time between machines used for different purposes at different stages of the production process. For example, a reflow conveyor may be used during the transitions of moving products between labeling stations and packing equipment. Example configurations include in-line, serpentine, alpine, bidirectional and spiral options.

  Another option is the single-lane accumulation conveyor, which provides a downstream buffer zone where products can accumulate during processing. This conveyor helps prevent congestion and product damage as they move through the system. You might consider using one of these conveyors in your packaging line so that bottles and cans can be held in place temporarily while awaiting the next processing phase.

  Bucket lift conveyors are made of carbon steel and have plastic buckets on the belt to lift material in a high-efficiency lower hopper. After use, this conveyor can leave substantial residual material under the hopper and become moldy if not cleaned properly.

  Craft beverage producers can try shafted or shaftless screw conveyors but should be aware of their pros and cons. Shafted screw conveyors are more efficient, but shaftless options are more flexible and can change direction. It’s essential to check for residual material at the bottom and be mindful of the potential for loud noise due to the high speeds of the shaftless option.

  Producers can process grain through wind conveyors and rely on suction generated by a large fan to transport grain to its intended destination. This low-noise option can transport materials long-distance, but it generates some dust and isn’t necessarily the most efficient option.

  Another idea to consider is the pipe chain conveyor, which has roots in the livestock breeding industry but is now used in craft brewing. This type of conveyor system is expensive, but you’ll enjoy low noise benefits, multi-angle transportation and efficient transportation for your investment.

Conveyor Companies and Options

  Certain companies specialize in conveyor systems for the craft beverage market, including, Spiroflo, which offers flexible screw conveyors and aeromechanical conveyors. Spiroflo’s flexible screw conveyors are recommended for conveying malt in breweries and distilleries because they are easy to clean and maintain. There’s only one moving part, the spiral, and it comes with quick-release flanges that can be easily cleaned to prevent cross-contamination. If you have higher throughput, Spiroflo’s aeromechanical conveyors gently move products in an air stream and work well with malt to avoid product degradation while boosting energy efficiency.

  Another company, Floveyor, offers a tubular drag conveyor that manages complex routes and controls infeed and dosing with multiple discharge outlets in the process line. It incorporates food-grade conveying technology in a single machine to handle powders, granules and multiple grains. Floveyor invented the aeromechanical method of conveying and has been in this industry for over 65 years. Its conveyors are made from stainless steel, have fully enclosed tubing, offer a compact size and are easy to clean and maintain for added long-term value.

  Globaltek is another company that works in this space and offers a wide range of packaging, bottle handling, filling and labeling solutions. Its industrial conveyor system minimizes bacteria so craft beverage products can safely transfer and meet all stability and sanitation requirements. Globaltek offers brewery-specific, custom-made conveyors that are adjustable, reliable, efficient and easy to clean. Its product line includes a bottomless side belt transfer conveyor and accumulating tables. 

  Meanwhile, UniTrak offers a Powderflight aeromechanical conveyor with a small equipment footprint yet a high throughput rate of up to 1,440 cubic feet per hour. These machines can convey products from angles of zero to 90 degrees and have portable bases so you can move them easily for processing. In breweries, they are used to transport malt to the mash tun so it can be mixed with hot water to form mash. UniTrak also offers flexible screw conveyors with lower throughput rates as an economical solution. These conveyors are fed manually with sacks of ingredients and can convey materials at 650 cubic feet per hour. The company has been in business for over 45 years and helps customers address their material conveying challenges worldwide.

Cleaning and Maintaining Conveyors

  Aside from buying the actual conveyor system itself, it’s crucial to understand how to properly clean and maintain your conveyor to protect your long-term investment.

  Yujin Anderson, the owner & CEO of Steamericas, Inc., told Beverage Master Magazine how cleaning with steam eliminates the labor-intensive process of removing conveyor parts to rinse and wash them. She explained that you can’t use too much pressure or water when cleaning a conveyor because these modern pieces of equipment have delicate sensors and electronics. Yet, cleaning manually is very time-consuming because conveyors’ many nooks and crannies.

  This is where steam comes in to address those problems. Once water boils and becomes a gas, it acts more like air than water to get to all those tiny areas. The naturally high temperature is able to replace chemicals as the heat melts off debris and is naturally sanitizing.

  Anderson shared that using steam to clean a conveyor utilizes less water than traditional methods – more like a 10 ounce cup of water per minute instead of five gallons. Steam doesn’t expose brewery and distillery employees to harmful chemicals, promoting better worker safety and wellbeing. It also keeps employees safe because it reduces the risks of finger pinches and amputations in conveyor systems.

  Craft beverage producers often call Steamericas for steam solutions to sterilize barrels or to sanitize tanks and keg lines. However, the exact same product used for these purposes, the Optima Steamer, can also be used to clean conveyors. Therefore, this cost-effective solution is beneficial for small operations with limited budgets. The steamer is a multi-purpose product that can save you money on overall equipment investments, make your equipment last longer because it’s well-maintained, and streamline employee training with just one product to use.

Considerations about Conveyors

  Many established breweries and distilleries already have conveyor systems that satisfy their needs. But if you run a new business or are experiencing rapid growth, you might look to buy new machinery or upgrade your current setup.

  One of the most important things to consider is how much space you have for a conveyor so that the model you choose fits where you need it to be. You’ll also want to consider the prices of comparable models, their ease of use and their cleaning requirements. You can buy new or used conveyors depending on your budget, or consider leasing a conveyor if that fits better into your production’s financial plan. The installation process, ongoing maintenance and energy consumption are other considerations that factor into a decision about a getting new conveyor.

  Furthermore, you will want to explore the belt types, size and weight of the product, speed needed to move the product and the direction of the conveyor (either incline or decline). There are conveyors that you may need to wipe down dry or can wash down with soap and water, as well as various design types that include pivot, Z-frame, pacing and vacuum conveyors. It’s also essential to think about conveyor-related accessories that you may need, such as diverters, gates, side tables, pushers and control-stop safety devices.

  Looking to the future, some recent innovations and trends to watch in the conveyor industry may interest craft beverage producers. For example, artificial intelligence (AI) technology is revolutionizing conveyors and equipping them with sensors, cameras and real-time data to identify potential issues and inform users about upcoming maintenance needs. Researchers have been using 3D printing to produce custom conveyor parts for greater durability and design to tailor systems to producers’ unique needs.

  Sustainability is a significant concern among craft beverage producers today, so conveyor manufacturers are focusing on energy-efficient drives and brake systems. It is also becoming possible for robotic systems to collaborate with human users to handle sorting, packing and quality check tasks for greater efficiency and accuracy during the conveying process.

  If your brewery or distillery has yet to consider conveyor technology for your operations, perhaps now is the time to learn about the options available and their potential benefits. Staying ahead of the curve and embracing the spirit of innovation can go a long way in helping a beverage business thrive while boosting productivity, saving money and conserving resources. 

How Breweries and Distilleries Can Effectively Manage Wastewater 

Cyndi
equipment mashing

By: Alyssa L. Ochs

Efficiently managing wastewater helps breweries and distilleries reduce operational costs and promote environmental sustainability. The management process may involve reducing water usage by fixing leaks, using high-efficiency equipment and optimizing cleaning processes. It may also involve monitoring the quality of wastewater to identify issues early on and understanding what’s in the wastewater to adjust treatment methods accordingly.

  Breweries and distilleries can handle wastewater using various treatment options. To get a better sense of the options available, we connected with companies working in this industry and producers who have found wastewater treatment systems that work well for them.

Where Wastewater Comes From

  Craft beverage producers use a lot of water in their processes, and much of that water becomes wastewater. Wastewater production comes from various cleaning tasks, including washing bottles, kegs, utensils and building surfaces.

Wastewater comes from wort production because making wort requires water as an ingredient to standardize the alcohol content. Washing and sterilizing vessels, refrigeration and container applications also produce wastewater in a beverage production facility.

Wastewater Treatment Options

  One treatment option for wastewater is ultrafiltration, which uses a membrane filtration process to remove microorganisms and particles from water. Some facilities use filtration to pretreat water before reverse osmosis.

  Reverse osmosis is a purification process that removes tiny molecules in water and is typically more effective than other methods. However, it can potentially cause bacteria contamination, and the production rate can be slow.

  Ultrafiltration is a treatment option to remove bacteria, viruses and other microorganisms from water. However, it is not powerful enough to remove dissolved solids, metals or chemicals.

  It is also possible to use a bioreactor in the wastewater treatment process that supports a biologically active environment where bacteria and protozoa can grow. This type of chamber can be aerobic to remove organic matter and oxidize ammonia to nitrate or anaerobic, which just removes organic matter. An anoxic bioreactor removes nitrogen from nitrates to nitrogen gas.

What’s Working, What’s Available

  Tyler Glaze is the COO of Shorts Brewing in Elk Rapids, Michigan and told Beverage Master Magazine that his brewery uses an aerobic membrane bioreactor (MBR) to treat wastewater. Shorts Brewing is a mom-and-pop operation, yet one of the largest craft breweries in the state. It prioritizes natural resource protection, outdoor recreation, equity and other community development initiatives.

  Glaze said that his brewery does not use wastewater in the brewing process because there isn’t a cost-benefit to doing so at the moment.

Yet he said that historically, Shorts’ most significant wastewater challenge was the volume of biochemical oxygen demand (BOD), phosphorus and total suspended solids (TSS). This is because Shorts’ aerobic MBR system and side-streaming efforts in the brewhouse and the cellar control BOD, phosphorous and TSS exceptionally well.

  “Our BOD to drain is reduced from around 700 to 1,000 pounds of BOD per day to less than one pound of BOD per day to the municipality,” he said. “We have similar reductions in the volume of TSS and phosphorous as well.”

  However, he said the brewery’s biggest challenge currently is the volume of solids separated from the wastewater treatment plant.  “Our aerobic treatment system creates solids as a byproduct of treatment,” Glaze said. “Reducing the volume of the solids through separation and drying would be our next step to reduce the costs of hauling the solids.”

We also connected with Copper Bottom Craft Distillery in Holly Hill, Florida, to discuss wastewater. Copper Bottom is a small-batch distillery that produces handcrafted, award-winning spirits from raw sugar cane without artificial colors, flavors or sugars added. It offers tours, a tasting room and a membership-based Rum Club.

  Jenni Craig, Copper Bottom’s CMO, told Beverage Master, “We don’t use anything to treat wastewater. We treat our product and production water through a reverse osmosis unit. We use this RO water to proof our spirits.” Craig also shared, “We use 25 percent of our stillage from the previous run into the next cook.” To date, Copper Bottom has not encountered any significant challenges with its wastewater.

  One company working in this space is Cambrian Innovation, based in Watertown, Massachusetts. Cambrian’s mission is to make distributed water reuse simple, sustainable and cost-effective. It helps businesses across various sectors (including beer, spirits and wine) transform their wastewater into a valuable resource while generating clean energy and clean water with industry-leading solutions. This leader in sustainable resource management specializes in transforming environmental liabilities into assets while helping businesses save money through efficient processes and environmentally responsible practices.

  Matt Silver, CEO of Cambrian, told Beverage Master that his very first customers were in the craft beer industry. He is currently working on projects with numerous craft beverage customers today. Cambrian’s Water-Energy Purchase Agreement (WEPA) allows beverage manufacturers to recycle high-strength wastewater as a service.

“Cambrian’s core focus is helping customers recover clean water, clean energy and even carbon dioxide from their waste streams,” Silver said. “Our goal is to eliminate the challenge of managing these waste streams and the cost associated with that, as well as the cost of using those commodities and utilities. It’s really a win-win.”

Silver explained, “We have a range of proprietary technologies and solutions that we install onsite that take polluted water and generate drinking-quality water and biogas that can be used for heat and electricity. What that does is cut the customers’ waste generation, reduces their carbon footprint and decreases their overall water use.”

Silver said craft beverage producers interested in improving their wastewater management should reach out to Cambrian to have a phone conversation or visit their website. From that point, Cambrian will ask for details about the customer’s facility, evaluate the opportunity, provide an estimate and present a term sheet to sign before developing a final design. Cambrian’s services are best geared toward medium- to large-size breweries that produce more than 30,000 barrels per year.

Another company you should familiarize yourself with when you’re developing a wastewater solution is American Hose & Supply. This company is a leading hydraulic and industrial hose supplier that ships to all U.S. states and internationally.

  Based in Tulsa, Oklahoma, American Hose & Supply serves many different industries, including breweries. Its product line includes various sizes and types of hydraulic hoses and rugged hoses for industrial applications. It can custom-build hoses at any length for your needs and according to your desired pressure rating and end-fitting specifications. You can also contact American Hose & Supply for pressure washers, gauges, tubing, valves, clamps, barbs, fittings and couplers to handle wastewater.

Choosing Your Wastewater Solution

  Silver from Cambrian Innovation emphasized the need for beverage makers to continuously consider their wastewater management goals throughout the process of researching options.

“Are they looking for compliance, or are they looking to reduce the volume of water they use?” Silver asked. “That will dictate the quality of the water they need. Also, think about whether they want to own and operate their own system or pay for performance on a per-gallon basis while they focus on their business.”

  Glaze from Shorts Brewing urges craft beverage producers to remember that you cannot control what you don’t measure. If you don’t work hard to get an accurate understanding of your waste stream, you won’t be able to design an appropriate system to handle it. He recommends doing your research or hiring a team to help you determine the best approach to handling your waste stream.

“There is no one-size-fits-all solution to brewery waste management because every municipality has different constraints,” Glaze said. “You might be surprised what you are able to send to a municipal waste system and what you are not.”

  He also explained that there is a quick and easy way to determine if your local municipal wastewater treatment system is functioning well or needs improvement.

  “Typically, if a system is working well, you won’t ever hear from your wastewater treatment facility, especially as you are starting up a brewery,” Glaze said. “If the municipal wastewater treatment system isn’t able to effectively handle waste, they will start surveying industrial users like breweries and food producers.”

  He recommends using the EPA’s Water Pollutant Loading Tool to locate your local system and look up the detailed facility report for that local treatment system.

  “If you notice a trend that shows they are seeing increased loading or violations in the quarters where you are producing the most beer, then you should definitely start the process of planning improvements to your waste stream,” said Glaze. “It’s best to be proactive and avoid this approach, but most people won’t act until they are required to. Use this information to explain to stakeholders at your business that the issue might require more urgency.”

  Finally, Glaze advises producers to work with their municipalities to develop solutions.  “The people who work at the waste plants are incredibly knowledgeable and typically have experience with all kinds of different wastewater systems,” said Glaze. “They have big brains and most of the time would love to chat about their job with you over a beer. You can learn a ton from them, and they can help guide you toward solutions to reduce the most impactful constituents in your waste stream.”

Cut Costs, Boost Productivity Through POS Software and Equipment

Cyndi

Working Smarter, Not Harder

Smiling bartender taking order

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

Cyndi

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.

###

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.

Top 10 Reasons to Automate Your Brewery

Cyndi
man holding cell phone gathering data from brewery equipment

By: Aaron Ganick, BrewOps

Brewery equipment is expensive and must be carefully maintained. Downtime is even more expensive. That’s why brewers are searching for ways to streamline operations, compile useful data, and keep eyes on their critical equipment 24/7.

  In the recent past, small- to medium-sized craft breweries relied on pen and paper methods for record-keeping and data collection. Only the largest breweries had access to real-time, actionable sensor-based intelligence. But even then, the automated intelligence was expensive, inflexible, and difficult to modify. The craft brewing industry requires technology that matches its creativity and ingenuity—automation that is intuitive, nimble, easy to install and use, and solves real problems that all brewers face daily.

  With a streamlined ecosystem and affordable sensor technology, even the smallest breweries can automate their equipment in a day and immediately receive critical benefits like reducing purge times, increasing operator and product consistency, preventing chiller failure, monitoring glycol temperatures entering and exiting the chiller, preventing product loss, and monitoring dissolved oxygen levels at any part of the brewing process—all while receiving alarms and notifications that save the brewing operators from an unexpected bad Monday morning.

  The benefits of implementing automation in a brewery environment are numerous. Here are the top 10 reasons to use sensor technology to enhance various aspects of the brewing process.

1. Ease of Mind:  When it comes to monitoring crucial equipment throughout the brew house, sensor technology provides confidence that the utilities are acting the way they should. When anything goes wrong, operators receive instant notifications so they can react as quickly as possible with a minimum amount of downtime or disruption to the product. Automation provides “eyes on the equipment” 24/7 and allows operators to focus on the myriad of other responsibilities throughout the facility.

2. Actionable Data and Insight:  Sensor technology provides a communication methodology that enables long-range and high-speed data transmission from sensors to either a mobile app for local access or to a gateway that relays information to a cloud-hosted solution viewable from anywhere in the world. For example, vibration sensors notify operators if a motor is failing and requires service.

  Temperature sensors provide alerts when critical processes deviate from set parameters, and pressure sensors arm operators with essential tank level and utilization data. By continuously monitoring and analyzing data on variables such as fermentation gravity and pH, brewers can optimize processes to improve the quality and consistency of future batches. Additionally, monitoring purge gas usage and CIP water waste helps reduce consumption and costs, enhancing both efficiency and sustainability.

3. Ease of Installation: Sensor technology is plug-and-play, requiring no IT support or complicated systems integration. Installation takes only a few minutes, and sensors start delivering data immediately once they are digitally activated. Modern sensing technology is extremely rugged, does not require professional installation, and requires minimal space. Additionally, they are battery-powered with a replaceable, long-lasting industrial power source.

4. Ease of Use:  The technology is sophisticated yet simple to use, requiring minimal training. It enables brewery operators to quickly respond to alerts and make necessary adjustments to ensure equipment efficiency and product consistency. The user-friendly interface allows operators at any skill level to monitor and manage processes effortlessly, ensuring smooth operations and high-quality production standards.

5. Time, Money, and Downtime Savings:  Brewery equipment is expensive and must be carefully maintained, but downtime can be even more costly. Alerts enable operators to take appropriate actions to keep systems operational. Reduced tank purge time saves money and decreases CO2 consumption.

  Consistent steam production from the boiler significantly impacts beer quality in the brewhouse. Sensor technology ensures consistent fermentation temperatures, which can be challenging to maintain in the cellar. A failing chiller can cause rising temperatures that lead to off-flavors, off-aromas, and potentially wasted batches of beer that are unable to be sent to packaging. Some brewers report that an unnoticed chiller failure can result in the loss of a thousand gallons of beer.

  Automated systems optimize the use of energy, water, and raw materials, reducing waste and lowering the brewery’s environmental footprint.

6. Consistency and Quality Control:  When each batch of beer is brewed under consistent conditions, variability is reduced and high-quality standards are maintained. Sensor technology provides granular data that ensures that the quality of the final product is controlled. Automation enhances precision in timings, temperature, and other variable measurements to ensure that ingredients are added at the right moments in the correct quantities—which is crucial for achieving the desired flavors and aromas of craft beer.

7. Efficiency and Productivity:  Automated systems streamline the brewing process. This leads to higher production rates, brewery tasks to be completed more efficiently, and the ability to meet growing demand without compromising quality. Significant cost savings with regard to wages and associated expenses can be realized by automating repetitive and labor-intensive manual tasks.

8. Improved Safety and Regulatory Compliance:

  Automation is crucial to reducing the risk of human error and minimizing exposure to hazardous conditions. For example, the Clean-in-Place process that is used on most brewery equipment can be automated to keep workers less exposed to boiling hot water and harmful chemicals. Sensor technology also helps to ensure that brewery operations comply with industry regulations and standards by maintaining accurate records and consistent practices.

9. Innovation and Adaptability:  Automation enhances the creativity and ingenuity that already exists in the brewing industry. Brewers can quickly implement new techniques and recipes with flexible automation that allows them to experiment with different styles and flavors.

10. Scalability:  Even the smallest brewers can automate quickly and inexpensively by utilizing sensor technology. One sensor on one piece of equipment can be an immediate game changer. Breweries can scale up as significant savings are realized through more efficient processes and reduced downtime. Automated systems can be adjusted to handle larger volumes without the need for extensive manual intervention.

The Value of Brewery Automation

  Sensor technology does more than just solve problems—it helps to anticipate problems before they occur. It provides flexibility and agility to the brewing process. With automation, breweries can achieve greater efficiency, consistency, and quality while also enhancing safety and sustainability in their operations.

  Automation and sensing technology are now accessible to all breweries. Fast and easy-to-install systems can get brewers up and running quickly, even for older infrastructure that was designed with “day one” operation in mind and not the future. All types of brewing equipment can be easily and affordably outfitted with sensor technology.

  These sensors can reduce total capital expenditure while also minimizing waste streams. Most importantly, from day one, actionable data provides real results to solve problems, benefiting even the smallest breweries.

About the Author

   Aaron Ganick is a serial technology entrepreneur and the founder and CEO of Preddio Technologies, the parent company of BrewOps.  Aaron holds a degree in electrical engineering from Boston University and has authored dozens of granted patents in the fields of optical networking, telecommunications, and automation systems. He can be reached at aaron.ganick@brewops.com. For more information on BrewOps, the fast and easy-to-install brewery automation platform. For more information please visit www.brewops.com

Insights and Ideas for Bottling & Canning Your Craft Beverages

Cyndi
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

Cyndi

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.

Producers of Craft Beer & Spirits Gain an Understanding of the Benefits of Remote Services

Cyndi

By: Rebecca Marquez – Director of Custom Research at PMMI

The COVID-19 pandemic was a learning experience for everyone. For craft beer and spirits producers, one of the most valuable lessons came from the necessity to rely on remote services in place of personal interaction to keep equipment running efficiently, maintain production, and update lines.

  The experience proved remote services could deliver many benefits by enabling a quicker response when a problem arises, reducing costly downtime, optimizing machine/operation performance, and offsetting skills shortages.

  As a result, even after pandemic-related restrictions on in-person visits ended, craft brewers/distillers have continued to request remote services and invest in the technology, which encompasses remote support, remote training, remote equipment monitoring, predictive maintenance, virtual factory acceptance tests, and online machine commissioning.

  This commitment to remote services dovetails with other sectors in the consumer packaged goods industry, where a growing number of companies have adopted or plan to adopt remote services, according to Trends in Remote Services and Monitoring, a report published in January 2024 by PMMI, The Association for Packaging and Processing Technologies.

Remote Services

  The most popular remote service is remote support, followed by remote monitoring, predictive maintenance, remote training, and virtual factory acceptance tests and online commissioning. Remote support involves remote troubleshooting, diagnostics, and repair and often can solve a problem more quickly and economically than an in-person visit from an OEM technician. The report notes that most software-based issues are already being addressed via remote support, and many mechanical failures also can be corrected remotely.

  Remote monitoring extends remote support by equipping machines with sensors that monitor parameters such as temperature, pressure, and vibration, communicate this data via the Internet of Things, and rely on cloud computing for analytics.

  Predictive maintenance works in tandem with remote monitoring. Analyzing the data captured by the digital monitoring tools makes it possible to predict asset behavior and perform repairs proactively. This reduces downtime and product loss, the major drivers pushing the implementation of predictive maintenance, according to another PMMI report, 2022 Challenges and Opportunities for Packaging and Processing Operations. Other benefits of adopting a predictive maintenance scheme include longer machine life and reduced parts requirements because replacements are installed as needed rather than on an arbitrary schedule.

  Remote training can support onboarding and upskilling efforts, with instructor-led online sessions viewed as the most economical format. However, it should be noted that a significant number of craft brewers/distillers believe that a live instructor next to the machine delivers the most effective training. So, training is likely to remain a hybrid remote/in-person model. Nevertheless, despite some resistance from older workers, the hybrid model could shift toward the remote side with the evolution of augmented reality and the potential the interactive experience offers to bridge the gap between remote and in-person training.

  As COVID-19 restrictions have faded, demand for virtual factory acceptance tests and remote commissioning has declined. Many craft brewers/distillers prefer to evaluate new equipment in person, especially if it is a complex or custom machine.

Barriers to Adoption

  Despite the benefits, the adoption of remote services faces some hurdles, including:

•   The cost of the service, especially when

     retrofitting machines.

•   Limited in-house IT skills to maintain and update systems.

•   The likelihood of having to deal with multiple interfaces across plants and machines and

     Cybersecurity risks.

  Cybersecurity concerns remain high, but craft brewers/distillers have become less reticent about granting remote access as they have learned how to strengthen their IT networks and shifted to more secure access methods. The report predicts the use of externally managed secure networks and converged networks will grow at the expense of cell modem access and direct virtual private networks.

What’s Next?

The report concludes that remote services will continue to gain ground, particularly for support, troubleshooting, monitoring, and training. However, a hybrid remote/in-person model will remain because the advantages of an on-site presence sometimes still outweigh the time and cost savings associated with remote interactions.

  Remote services capabilities will be on display at PACK EXPO International (Nov. 3–6, 2024, McCormick Place, Chicago), along with other beverage processing and packaging innovations. Ranking as the biggest packaging and processing event on the planet in 2024, the show will present 2,500 exhibitors spread across 1.3 million net square feet of floor space and foster idea-sharing among 40+ vertical industries. Highlights include free educational sessions, a myriad of networking opportunities, and solutions to address automation, production efficiency, sustainability, flexibility, and e-commerce needs, as well as other hot topics and trends. For more information, visit packexpointernational.com.

  Rebecca Marquez was hired at PMMI in 2016 as a manager of business intelligence, responsible for the execution and analysis of PMMI’s internal market research projects.  Ms. Marquez graduated from University of Wisconsin in 2008 with a Bachelor of Arts degree.   She has completed the Data Analytics Certification for University Georgia (2020) and the TLP 360 Degree Feedback Program for Leadership Development (2021).

Letting Off Steam: Steam Boilers and Other Options

Cyndi
droplets of water causing steam

By: Cheryl Gray

Versatility. Safety. Efficiency. Temperature control. These are just some of the benefits that experts say boilers provide craft brewers and distillers.

  Among the most popular options are steam boilers. Steam is considered an efficient method for heating processes because it evenly – and quickly – transfers a large amount of heat. Steam volume and velocity play important roles in this process. Sizing a steam boiler to fit the capacity needs of a brewery is also important. Too small a boiler will not do the job. Too large a boiler will lead to short-cycling, which will cut the life of the boiler and cause other problems.

   In a brewery, the kind of heat that steam boilers use is essential for processes such as boiling wort, keeping fermentation on point, creating flavor profiles, cleaning production areas and sterilizing equipment.

  For distilleries, steam from boilers is as important as air to breathe. Boilers can produce an abundance of hot water at specific temperatures, a critically important function for replicating spirit recipes with a precision that guards against compromising product flavors.

  Among the companies with expertise in manufacturing steam boilers for breweries is

Hurst Boiler & Welding Company, Inc., which is headquartered in Coolidge, Georgia. The company was founded in 1967 and has since expanded its campus to nearly 17 acres, home to a 314,000-square-foot manufacturing plant that builds all types of boilers for clients worldwide.

  In going through a checklist for boilers, Hurst points out that many of its brewery clients also prefer steam models because they are non-flammable, unlike direct-fired heating options. Pressure relief valves are another feature that helps to ensure safe operation. Steam generated from boilers is also versatile since it can be used for multiple brewery operations beyond heating, such as powering mechanical equipment like pumps and motors. When it comes to cleaning, steam is known for its sanitizing properties. It kills bacteria and other microorganisms that can contaminate brewery products. Breweries can also use the steam to sterilize containers and packaging materials. Another good feature of boilers is that the steam created is environmentally friendly, giving users an option other than direct-fired heating, which is dependent upon fossil fuels. Finally, steam boilers are environmentally friendly. Steam can be generated using renewable sources, such as biomass or by way of energy recovery systems.    

  A rundown of popular Hurst products includes the Hurst Series 4VT Steam, a 4-pass, high-pressure vertical tubeless boiler. The company describes its Cyclone Steam Boiler with features that promise high efficiencies, lower fuel costs and rugged construction, including 6-100 HP, 201-3,450 MBTU/HR and steam to 250 PSI. The Hurst product has a compact design, comes factory assembled and is fully automatic and easy to install.

  The product can also reduce NOx, or nitrogen oxide, which are poisonous to humans. This group of chemical compounds can cause respiratory issues and other types of illnesses, which is why it is important to minimize their presence in breweries and distilleries.

  Hurst also has a line of firebox boilers, including its Hurst Series 45 and 100 Firebox Boilers. Its 3-Pass Firebox Packaged Boiler features a flexible three-pass boiler design that provides options for fuel flexibility, including gas, oil and combinations of gas and oil. It features 7.4-650 HP, 248-21,759 MBTU/HR, steam up to 15 PSI and hot water up to 100 PSI. The products are designed with the thickest, industry-wide boiler steel for 5 PSI steam/30 water. Features also include a unified refractory base floor, steel skids and lifting eyes.

  Miura America Co., Ltd. is another boiler company specializing in steam boilers. This global company, based in Japan, has its United States headquarters in Rockmart, Georgia, with regional offices throughout the U.S. Experts at Miura say that many of its distillery clients consider the steam boiler an irreplaceable part of their operations. Those experts add that not only do distilleries need a limitless supply of water, but proper temperature control of water used in distilleries lowers the risk to workers and avoids compromises to the quality of products. Steam allows distilleries to add their finishing touches and helps to ensure the flavor profiles of the distillery products.

  Steam boilers can also be used to control the temperature of an entire distillery operation. For example, many distilleries have a tasting area for visitors to try products, and some also offer tours. Both of these guest areas need air temperature control, and steam boilers can help with properly controlled steam heat. Miura considers the steam boiler the best industrial option for distilleries. The company says its boilers can start producing steam within five minutes of a cold start-up. That makes things cost-efficient for distilleries that don’t have a need to operate 24 hours, seven days a week. The company also boasts that its steam boilers are easy to maintain. Inspections take far less time as compared to other boilers. In addition, if a distillery has more than one steam boiler, it means that while one is undergoing inspection, the rest can continue operation. These are options that help distilleries stay on production schedule.  

  Miura offers a variety of boiler options, including industrial steam boilers for breweries and distilleries, such as its ultra-low NOx steam boilers. The company designs the steam boilers for the present and future needs of the brewery and distillery clients it serves. Touting a compact design and easy operation, Miura also has modular boiler systems that assist in lowering operation costs and help meet fluctuations in steam demand. The boilers don’t have to operate around the clock, which saves time, boosts productivity and drastically reduces NOx emissions. The company’s multiple boiler system designs include a backup boiler with a smaller footprint that doesn’t have to run all the time. Start-up breweries and distilleries can add capacity to their boiler rooms as their businesses grow, thus avoiding more costly upfront expenses. Safe operation is another major feature, with greater accessibility, easier system testing and the elimination of sight glass. Miura says its boilers maintain low-volume water in their tubes, thus limiting the dangerous risk of pressure vessel failures. 

  Olympic Distillers, headquartered in Port Angeles, Washington, makes distilling equipment of all types, including a full line of copper moonshine stills and beer keg distillers. The company provides a variety of stainless-steel equipment along with kits and parts. Olympic Distillers also has a full line of micro-distillery equipment for craft distillers.

  Among their boiler products is the Jacketed Bain Marie Style Boiler, a 26-gallon model designed to prevent scorching. The boiler is equipped with a 240V dual-element heater controller. The boiler’s features include a pressure relief valve, lighted overhead sight glass and a 10-inch access door. Its heating elements draw 4500w each. The still connection is a six-inch tri-clamp, and adapters are available to fit a four-inch flute on the boiler. There is another version of this product with a 53-gallon capacity and a 12-inch access door. The still connection is an eight-inch tri-clover.

  Still smaller is the Jacketed Bain Marie Style Boiler, which has a 13-gallon capacity. This boiler, intended mostly for at-home distillers, is copper-lined and made from food-grade 304 stainless steel. It is 100 percent TIG welded and available with a two-, three- or four-inch copper lid. The two-inch tri-clover element port accepts Olympic’s single-element 4500w/240V electric heater.

  Another product is the Single-Wall Boiler with a 53-gallon capacity. This boiler is made from 304 stainless steel. It comes with an agitator and 220V dual-element heater controller. The agitator is 240V 120w and 0.9 amps 1600 rpm. The still connection is four inches.

  From steam to other options, boilers play an integral role in breweries and distilleries of every size. Experts say that steam options are becoming increasingly popular for every reason, ranging from environmental integrity to cost-effectiveness. Consulting with an expert company is the first step to determining proper boiler equipment for current needs as well as for expansion in the future.