Kicking off 2025, we are talking tariffs. Join ASCM CEO, Abe Eshkenazi, and special guest, Alastair Charatan, as they give their tariff predictions.
We examine the proposed tariffs and their potential effects on supply chains and consumers. Our discussion sheds light on the broader implications for global trade and the economy.
Tarrif Predictions conversation from ASCM
January 9th, 2025
‘Get an unbiased expert prediction on 2025 input costs (Transportation, Cans, Glass, Cartons, Grains and Hops). Inputs are a breweries biggest cost (more than people, admin or servicing capital). Knowing what is happening in top categories and the embedded commodity is critical for good decision making and P&L management. Join Tim Near and David van Wees from Agrowgate, procurement and supply chain experts, as they review the top input categories.’
Do you have a good call on your 2025 Input Cost?
November 13th, 2024
BevNET Quarterly Data Reports in Partnership with Agrowgate
November 5th, 2024
As part of our exclusive data series for BevNET & Nosh Insiders, we’re partnering with Agrowgate, a leading expert of input material knowledge for beverage production across North America.
Our first report in partnership with Agrowgate will cover activity and trends in commodities categories such as cans, cartons and corrugated, glass, malt, transportation, sweeteners, and hops. Additional reports will follow on a quarterly basis.
How to Benchmark Brewery COGs
August 29, 2024
Today we welcome back Tim Near from Agrowgate, a company that works to save you money on cost of goods sold. Think cans, cardboard, malt, freight and so much more.
Brewery Supply Chain Management 101
March 18, 2022
Pound for pound, supply chain purchases represent the largest outlay of cash for a brewery. In today’s podcast, you’ll learn tips and tactics from a supply chain expert to improve purchasing in your beer business.
Insights Express
published by Beer Marketer’s Insights. Vol 24, No 8 January 11, 2022
Cost Pressures Galore in 2022, Shows Agrowgate, Org Seeking Savings for Mid-Sized Bev Cos
With several cost pressures front-and center this yr, getting a handle on all that could save smaller and mid-sized cos (that don’t have big procurement depts) some real dough thru combined purchasing power, collab with suppliers, etc. Along comes Agrowgate, a group procurement organization (GPO), led by operating partner Tim Near, a senior advisor for Boston Consulting Group on procurement, ops and former sr supply chain exec at ABI. So Tim knows the turf. Here are some of his thoughts on costs:
Inflation Here for Years; Thoughts and Stats on Cans, Barley, Paper; Hops in Good Shape Cost environment remains challenging in 2022, Tim showed. Agrowgate sees “period of volatility” in costs extending into future and today’s inflation as more than temporary. “Inflationary pressure” will be here for “years to come,” Tim told INSIGHTS. Part of that is just demand exceeding supply, for example on cans. Tim also talked about various input costs that have gone way up, including fuel, paper, transportation etc. Turns out beverage cans only about 12% of all aluminum produced, so pressure also comes from competing with other hot areas for aluminum like electric cars and construction. “At the end of the day, we still need more incremental can capacity,” said Tim. Importantly, there is a “longterm structural supply deficit.” Largest can mfr Ball is oversold by many billions of cans. And mid-sized producers need to prepare for future to avoid getting stung by moves like Ball’s recent minimum order hikes (since delayed). Ball is “trying to support their ability to deliver cans” and extension gives “everybody a bit more time to react.”
Another watch out: because there was/ not enuf rain and too much heat, last year’s barley crop yielded one third less compared to prior year, despite 1 million acres more planted (about 10% more acreage). If there is “repeat of suboptimal conditions,” brewers “won’t be able to replenish” and potentially face “chronic quality issue” if barley crop is smaller and damaged. So this is something to “watch very closely.” Of key inputs, news only good (for producers) on hops last yr, which were plentiful. Acreage in PAC NW at record levels (up 4%) at same time demand eased with growth of seltzer/FMBs.
Agrowgate’s mission is to unlock savings for indy FMCG (fast-moving consumer goods) “producers via strategic sourcing” thru its “data driven process, scale and IT platform,” it sez. Another partner is David van Wees, who is also North American president of Swinkels Family Brewers, Latis founder, and worked for InBev for yrs. Many craft beverage producers input costs (i.e. packaging, ingredients and agriculturals) “are 60%+ of their total over-all costs and vital to operations,” David said. “Improvements go straight to the bottom line.” With project work and group buying, Agrowgate members “have access to 10x their buying power to achieve pricing and services they could not on their own.” Taken together, the volume of their GPO members are equivalent to that of a top 10 brewer. Agrowgate also works “closely with suppliers” to “reduce complexity.”
Real-World Supply Chain Resilience
A prerequisite to defining new resilience strategies for companies is a better understanding of their exposure, vulnerabilities, and potential losses. Read more:
Procurement & Inventory Planning
Brewbound Live Day 1 - Crash Course III: Procurement & Inventory Planning
Featuring:
Tim Near, Procurement & Logistics Specialist, Agrowgate
Brewbound FrontLines
The leadership team from Agrowgate, a firm focused on helping mid-sized beverage companies navigate procurement and supply chain issues, joins Brewbound Frontlines to discuss the issues now facing beverage makers and strategies for working through them.