Here are the 3 things that I chatted about most with our customers at BrewCon

Here's what's on the independent brewing industry's minds, as told by East Coast customers who I chatted to at #BrewCon23 on the Gold Coast, 21 - 23 August.

[ 1 ] --> Right Sizing Business Model

Right-sizing the operating model and cash flow plan for SME beverage businesses was by far the standout topic of conversation at our stand.

We have customers in two camps, of course. Some right sizing down, and some right sizing up. It's important to note that we've got some customers who have just completed capex projects to increase brewing and tank capacity, packaging and kegging capacity, hospitality venue capcity or outdoor dining space. Some are even adding additional venues or diversifying into other categories, and forging ahead with NPD in growth categories and sub-categories. Some customers are going in both directions, as they identify where their focus will and won't go.

Many of our existing customers are recognising that East Coast's just-in-time print and delivery model, combined with regular mobile onsite filling, allows them to procure and produce in smaller quantities which sell through faster. Not to mention, fresher product is a MUCH better consumer experience every day of the week!

Turning costs into revenue in a timely manner is critically important in this (or any) market, and the opportunity with East Coast allows our customers to tightly manage raw materials expenses in line with a shorter sales horizon.

The benefits of this are

• smaller invoices,
• less capital tied up in raw and finished goods on your balance sheet,
• less material storage, and
• right-sized production runs aligned to demand (you can increase or decrease production qty up until 1 week before printing or filling).

For some customers, the appeal of buying in bulk, getting the smallest unit price, then paying storage of the balance and drawing down over time has waned substantially.

If the pregnancy warning logo changes have taught us anything, it's that holding anymore than a few months stock on hand of raw can materials or canned finished goods can be perilous (and expensive and wasteful).

In these conversations, I am ultimately looking to understand our customers business values.

Are they rusted onto unit price comparisons, or are they balancing cost vs value with their suppliers.

It's the later that really see the value in a partnership with ECCP.

Uniquely, we can turn around printed cans in small and large runs in just 4 weeks, and book mobile filling slots at a moments notice (where availability exists).

What value does that offer your business in being agile, flexible and nimble?  

[ 2 ] --> Coles Liquor

About 18 months ago, a prominent and multi-decade experienced independent retailer answered my question on the biggest threat to his business with something along the lines of this; "Coles Liquor are the biggest threat to the Indies. If they get their range right, as their store upgrade program wraps up, they'll be in a very strong position, which will put even more pressure on local Indie outlets".

Recent numbers from the IBA's Everything Indie newsletter show the CLG team are really behind independent beer, aswell as championing the Indie seal:

Our customers have been madly placing printed can orders and filling bookings in abundance, to service the upcoming CLG range review implementation.

At Brewcon, the Coles Liquor team hosted a panel as part of the agenda, and were present throughout the event, mingling with their customers and industry. No doubt this helped contribute to them being a popular discussion topic between our customers and I!

This retailer are certainly continuing to invest in independent craft beer ranging, and with the next range review about to bear fruit, those who've been newly accepted into range are rightly excited (and so are we).

[ 3 ] --> Optimism

And to leave you on a positive note, there's a distinct feeling of optimism in the tone of conversations I was having with customers, new and old.

While the cooler season starts to thaw, the eyes of most business owners are firmly on that period of the year when drinks businesses "make hay while the sun shines".

(My sense is that the Victorians have had the coldest and toughest winter in the country this year, with spirits broken from world record mental-health impacts of lockdowns and the rarity of sunshine from March to October really darkening not just the skies but also the moods of many. )

Digital printing technology allows brands to stand out from competition on shelf with striking artwork and vibrant designs, while mobile filling services allow customers to tap into takeaway sales from their taprooms, open up off-prem retail channel and tap into local event opportunities without the capex of a canning line. So we're playing our part in this optimistic outlook, and we share it too.

Taking the BrewCon room as the poll*, the industry is optimistic for the months ahead. That's better than 6 months back when the mood was very much "survival", and while that's still there, the optimism is at the forefront I felt.

On premise sales have held better than pack sales, but the sunshine should encourage a few more into off premise occasions. Interest rate increases are projected to slow, and the aggressive impacts of shrinking household disposable income will start to normalise and life (and drinking) habits may settle in tandem.

So grab yourself a can, and let's party**

P.S. Thankyou to the Independent Brewers Association for hosting the best #BrewCon yet! See you next year.

*Notwithstanding the #BrewCon23 event this year was on the Gold Coast, which may have represented an added cost for Melbourne and Sydney breweries that was too much to bear. A room disproportionately filled with Queenslanders might be skewing the results, but I don't have those numbers!

**Credit to Chris Kelly who has embedded this saying in my vocab lately.