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About Eric Hofer
Expertise
Over 27 years experience, with 17 in international FMCG in back office operations and in field sales and data collection, including design, development and deployment of Handhelds, Marketing Equipment (Service, Tracking and Return on Investment), reporting and Vending management. Have participated on the launch of operations in new markets, and re-engineered the back office in several countries.

Experience
Designed and led the development and deployment internal ERP system for Pepsi used in On-Premise/Vending in 13 markets. Designed 2 handheld systems, the latest is now deployed in 4 markets internationally. Re-engineered the back office functions (settlements, despatch, invoicing, credit control, etc) for over 20 snack, confectionary and beverage operators. Developing software: Progress, VB, Access, C, Sybase, SA

Organizations
Innovative-Selling Solutions

Publications
BudapestSun

Education/Credentials
State University of New York - BA Economics NYU - Courant - Graduate work - Computing

Past/Present clients
PepsiAmericas PepsiCola International PepsiCola Company British Steel British Telecom Britvic (Pepsi's bottler in the UK) AT&T BellSouth Mars Overseas Bottling Pepsi France Matutano (Frito-Lay Spain) Frito-Lay Pepsi Foods International Chase Manhattan Bank Kidder Peabody National Power SmithKline Beecham Mars Overseas Bottling (Pepsi Azerbaijan) A&P Bottling (Pepsi Serbia & Montenegro) Iberia Bottlers (Pepsi Georgia)

 
   

You are here:  Experts > Industry > Beverage Distribution > Beverage Distribution > beer distribution & logistics

Beverage Distribution - beer distribution & logistics


Expert: Eric Hofer - 1/27/2009

Question
Hello I would like to deepen my knowledge on beer distribution and logistics from different markets (USA, CHINA, Europe) and therefore wanted to ask what sources are recommendable to get more information. How do they distribution and logistics for beer work, what are the costs and what are the issues one has to be aware of in order to get most efficiency (concerning cost and money) as well as product sustainability out of it?

Thanks so much.
Constantin

Answer
Constantin,

This is a huge question space; and I'm not all-knowing.  I wish at times I were such a person but I'd probably then be indecisive.

Let's get you started on acquainting you with the industry.

In English, there are plenty of resources where you can start; internationally though you'll run into issues with language.

There're industry websites, magazines, associations, etc.:
- BeverageWorld
- ProgressiveGrocer
- http://www.beerinstitute.org/.

Start at Google's Search as it's good at finding stuff.  The keywords to play with are:-
- Beer
- Industry, Association
- Start up, launching
- "Business MOdel", "Cost Model", "Proposal"
- particular brewers (e.g. SAB, Guiness ...)

There are international companies selling into brewers, guilds and their distributors; consider what they offer for consultancy, materials (ingredients, containers, distribution fleets, etc.).

Do web searches on case studies in the brewing industry.
http://www.american.edu/ted/budweis.htm
http://www.slideshare.net/jin88lin/heineken-case-study-analysis-presentation
http://www.emeraldinsight.com/Insight/viewContentItem.do;jsessionid=6E6D9EA12FC9...

Costs - what type of costs; which country? What sort of business model?  Which aspect of the business?

Are you considering levies as part of costs; association membership; are you talking about just the distributor, or primary transport; or storage, aging, import/export...  

Issues - I'm aware of many issues re efficiency - though not exclusively in beer.  You've got:-
- transitioning in size (growing pains)
- changes of distribution channels
- listing fees
- shelf squeeze out
- commission fees; agent fees
- storage
- shelf life
- health certification
- bonding fees.

Re your point on "Product Sustainability" - Can you explain further?  I could interpret this to mean that the product sustains itself, drives volume and consumption - but if so, I think this is a marketing question and that's not specifically my area.

Please narrow down your question and so we can go further.

Eric


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