Food & Beverages Industry
The food & beverages industry is a diverse sector that covers the entire supply chain, from production and processing to distribution and sales of food and drinks. It includes various businesses, such as restaurants, food manufacturers, grocery stores, cafes, and beverage companies. This industry plays a crucial role in the global market, meeting the varied needs and preferences of consumers worldwide. Maintaining high-quality and safety standards is essential to ensure customer satisfaction and compliance with regulations. Constant innovation and adaptability to consumer trends contribute to the dynamic and competitive nature of the food & beverage industry.
Here we largely describe the demand model for the beverage industry, particularly breweries. Breweries work through the distributors to ship beer to the retail establishments which include Bars, restaurants, and liquor stores.
What is important for them to brew and ship the beer is the shipment to retail. Shipment to retail is driven by the final beer consumption by the beer drinkers. The demand here is seasonally driven by major holidays and also by regional events like major football games and the Super Bowl.
Additionally, demand could be influenced by promotional activities by retail establishments as well.
The major component of the brewery demand is driven by what is shipped out to retail as the retail establishments determine their stocking levels based on their pull-through. The shipments to retail from the distributors are a key independent variable in determining the supply chain activity.
Both the inventory at the distributor as well as the Shipments to retail are considered in deriving the outbound shipment plan. Competitive activity is also a major factor in estimating retail demand.