Alcoholic Beverages
3 TIERS OF THE WINE SUPPLY CHAIN We can’t talk about wine without mentioning the Volstead Act, which made it illegal to “manufacture, sell, barter, transport, import, export, deliver, furnish, or possess” such beverages. Prohibition wasn’t just a temporary blip in alcohol manufacturing; it changed the way the supply chain functions. Prior to Prohibition, the manufacture, sale, and transportation of beverages with an alcohol content greater than 1.28% looked di¬erent than it does today. Producers often owned their own retail outlets and served their local communities. Today, alcohol—including wine—is highly regulated in the United States. After the repeal of Prohibition, the wine and spirits industry fractured into a three-tier system: Tier 1: Producers. The first tier includes grape growers, wineries, manufacturers, suppliers, and importers. Tier 2: Distributors. The second tier could be considered the middle man. These are the wholesalers. They purchase wine from the producers and then sell and deliver it to retailers. Tier 3: Retailers. The third tier refers to not just stores but also restaurants. –Thomasnet
The beer brewing industry faces another year of uncertainty and evolving customer tastes. These six trends will guide the industry throughout 2023, according to SevenFifty Daily . 1. Consumers seek value in bulk beer and higher alcohol levels. As consumers try to get the most bang for their buck, they are buying beer in bulk or shopping for higher-alcohol-percentage products. 2. Breweries will trim SKUs and focus on specific styles. Increasing competition for shelf placements in grocery and liquor stores will lead breweries to eliminate slow-moving brands and rally around core beers. Focusing on fewer beers can help breweries better weather the vagaries of ingredient availability. 3. Breweries reclaim carbon dioxide in the face of supply chain disruptions. The carbon dioxide shortage caused a boost in innovation as brewers looked for ways to solve gas supply availability and reduce dependence on delivery. Breweries are also turning to a traditional technique called spunding, which traps carbon dioxide in tanks during fermentation, to naturally carbonate beers. 4. Global crises spur more local beers. The ongoing war between Ukraine and Russia—which together export more than one-quarter of the world’s wheat— and a terrible harvest for European hops will lead breweries to look closer to home for raw materials. 5. Beer merch and variety beer packs oer sales opportunities. The pandemic caused a spike in online shopping, and the digital shift will continue to lead breweries to emphasize online sales for merchandise and, where legally permitted, beer. Variety packs are also fostering aftermarket interactivity. 6. Taprooms become attractive interactive hubs. People now seek compelling places to gather that meet the needs of all ages. A bland taproom that o¬ers only cold beer won’t cut it. 6 BEER TRENDS ARE BREWING
12 Inbound Logistics • June 2023
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