Working with Agrowgate has given us access to scale and expertise and results we could not have achieved on our own.
– Craft Brewer COO
Case 1: Savings and Inflation Management
For a large Central/Midwestern craft brewer in 2021, double-digit packaging cost reductions were identified post-covid, and post-inflation, and realized within 4 months
Situation
A large brewery partner in the Midwest needed to free up funds to invest in topline growth, especially by investing in new product launches.
They had seen tremendous inflation through 2020/21 as the price of the underlying commodities and transportation rapidly inflated.
What we did
Diagnostics: Through an extensive review with the brewery we were able to see that several lines in their cost of goods were significantly higher than thery should have been.
Double Check: Agrowgate executed a “virtual brewery tour” during the height of covid to validate the opportuity and ensure deep understanding of the brewery operations needs.
By bring scale buying to the brewery through the Agrowgate system, we were able to unlock opportunities the brewery could not do alone.
Impact
By combining the buy across the brewery, and bringing in incremental scale from the Agrowgate network, the brewery was able to drive a large price improvement for targeted items (up to 40%).
Perhaps more important in inflationary times, the price adjustment formulas were adjusted to mitigate inflation going forward.
One of the brewery’s incumbent suppliers was able to increase their sales 4X within 4 months.
Case 2: Step Change Cost Improvement
A +100,000 barrel Eastern brewery partner DOUBLED their profitability in <1 yr, allowing more investment in topline growth.
Situation
A midsized eastern brewer, growing fast and having trouble keeping up.
Racing to meet topline growth, material costs were rising faster than industry and faster than their historical trends.
They needed to free up costs to continue to invest in the top line.
What we did
Diagnostics: Executed a full “outside-in” diagnostic on their packaging and raw materials, highlighting targeted areas for step change improvement
Double Check: Conducted in-person site visits and targeted interviews with brewery staff to “be sure” of the opportunity.
Key Realization: Their package and raw materials specifications were severely overbuilt and restrictive
Plan: Optimizing to high quality more cost effective specs, drove significant opportunities, and opened opportunities to suppliers to offer on more mainstream items.
Impact
During the diagnostic, immediately found and executed quick wins that created value immediately.
Developed a comprehensive plan to drive the spec changes required
Once specs were finalized, offered the new specs to incumbent and new suppliers as part of an updated RFP process
When complete, after approx 1 year, the brewer realized significant savings right to the bottom line, and continued their sales growth pattern
Case 3: Supplier Sales Growth
By opening up opportunities to supply multiple brewery partners, an incumbent supplier was able to double their sales and triple their accounts served within 6 months.
Situation
Multiple breweries across 3 time zones engaged in a group buy with Agrowgate
Most breweries had relationships with multiple suppliers
The suppliers had no single point of engagement across the set of breweries, creating difficulties servicing multiple accounts
What we did
Diagnostics: All incumbent suppliers in good standing were asked, through Agrowgate, to bid on the group purchase.
Incumbent suppliers were endorsed to other breweries in the group that were not using them, creating tremendous credibility for new accounts.
Impact
The supplier who won the bid as the primary supplier was able to nearly double their sales revenue, and access nearly triple the accounts serviced through this one exercise.
Those sales increases were fully realized within 6 months, after inventory and technical transitions occured with Agrowgate’s assistance.
Case 4: Supply Resilience
One of our large brewery partners was not able to secure incremental packaging material post covid in 2021 due to supply constraints and was losing top-line revenue as a result
Situation
A long time partner +150,000 barrel brewer in the mountain region
The brewer had an opportunity for a major revenue lift due to a new product, but was not able to secure the packaging material to support the launch in time
The brewer was at risk of abandoning the new sales opportunity as a result
What we did
Diagnostics: The same day the call for help was received, Agrowgate got on a video call with key brewery operators to detail the problem and the specific needs.
Within 1 business day Agrowgate was able to source high quality, cost effective materials from “incumbent to Agrowgate” supplier partners from outside of the brewers region.
The alternative suppliers were able to commit to supplying the needed items in time and formed a new commercial relationship with the brewery.
Impact
The brewer was able to commit to and launch the new products without missing the original timeline, driving incremental, top-line growth.
The “new to the brewer” suppliers were able to leverage their strategic relationship with Agrowgate to tactically execute a new sales relationship with a large account, in less than 1 week.
Case 5: Innovation
One of our longterm spirits partners was looking to launch new flavored products but didn't know who to call or what ingredient supplier options existed.
Situation
A well known brand was looking to launch a new line of flavored “ready to drink” cocktail products.
They knew they needed superior flavor performance, but were unsatisfied with the current R+D process at their very recent incumbent supplier.
They didn’t know who else to call, and every time they reached out the potential suppliers weren’t engaging
What we did
Diagnostics: We met with the partner to understand what specifically they were looking to do. We learned that they had been asking the wrong questions of the wrong suppliers.
Once the ask was clear, we were able to introduce the partner to several proven flavor suppliers from within the Agrowgate system
Impact
Within one week the partner had set meetings with a shortlist of proven flavor suppliers.
Those suppliers had early access to new products being developed at our partner and came highly endorsed.
As a result, the new product development process was able to proceed at a rapid pace with proven suppliers.
CEO of the beverage partner: “I was impressed – thank you Agrowgate”
Case 6: S+OP Improved planning, supply de-risk
One of our craft soda partners was having trouble planning their business and missing sales as a result. Agrowgate helped them install a new Sales and Operations Planning (S+OP) business process
Situation
One of our craft soft drinks partners was having ongoing issues planning and executing their supply chain.
Their sales/marketing organization and supply organization were not effectively communicating.
As a result, they were running a high-cost, highly reactive supply system that led to frequent stock shortages, customer, and supplier frustration.
What we did
Diagnostics: We executed a detailed review of their supply chain processes and realized there were significant gaps.
Although their data was robust, they were not using it effectively to plan and run the business.
The sales organization was promoting items that had suppy risk, and the supply organiation was not able to anticipate or communicate the risk effectively in time for sales to change plans.
Impact
Agrowgate helped develop and implement a new Sales and Operations planning methodology at the soft drink producer.
As a result, more effective decisions were made on supply and sales based on full visiblity and joint decision-making on key pinch points.
Expedited shipments and out of stocks reduced greater than 50%, while the sales orgainzation was able to sell in new products and promotions with less risk, driving higher sell-in