3. The Miller Lite History
• 1855- Miller Brewing Company is founded by Frederick Miller in
“There is only one lite beer - Miller Lite”
Milwaukee, WI
• 1888- Frederick’s sons and sons in law take over
• 1904- Bottled beer makes its debut at the brewery
• 1936- Miller starts producing beer in cans
• 1952- The first six packs are sold
• 1975- Miller light is born
• The low-calorie beer segment is born
• 1986- ML trademark slogan is introduced
• 2007- Miller and Coors fusion together as
a join venture to create MillerCoors
• 2010- The vortex bottle makes everybody’s
life easier
8. Farm Hops & Barely
Bottle
Bottle Crown Cap
Miller Brewery
Distributors/Warehouses
Retailers
• Silica
• Soda ash
• Limestone,
• Cullet
• Tin Plate Steel
• Tin
• PVC
9. A Hall
A hall is a building where rooms
can be rented for events
A Caterer
Brings food(more importantly beer) to
a different location.
Local Stores:
Privately owned and
serve local area.
The Caterers
10. Manufacturer/
Brewery
The Bar Scene
Warehouse
Distributor
Bar/
Restaurants
• Warehouse Distributors
• The Efficiencies
• Warehouse Distributor/ Bar Relationships
1970 Miller Brewing Company is a subsidiary of Phillip Morris. By the end of the decade national breweries (like Miller) produced 75 percent of all beer sold in the United States (3). Miller Lite is one of the first light beers in the market. It’s popularity creates a new growing market for light beers which inspires competitors to introduced their own. Even then ML stays as the top selling beer for almost 2 decades.
Bud Light caps are made out of tinplate steel sheets. The sheets are made out of 30% steel scrap and 70% liquid iron. These two materials are melted into a furnace and then flatten out to make the sheets. Most of these sheets are produced and shipped out of China though a few are still made in the US. After they have been cut to the desired diameters the sheets receive a tin coat -this process is called Electrolytic Tin Coating.
A series of machines then punch small circles in the sheets. These then go on to a crimping machine that holds down the circle while the edges are crimpled into 21 grooved teeth. The finished product is a 26 mm in diameter cap which is then equipped with a PVC (Polyvinyl chloride) lining called Plastisol, that helps with the adherence and sealing of the cap to the bottle. This addition helps the beer stay fresh from the factory all the way to your tummy.
Description on Local Stores
Can be known as a “Mom and Pop store”- Privately owned
Convenient Store
Customers come to the store because of location
Price can have a small impact but usually not
Caterer
Can provide food in two different manners
In a hall
Or conveniently at a desired location
Some events include:
Birthdays
Weddings
Funerals
The relationship that these two create have a lot of advantages
Local store can guarantee a flow of business from the Caterer
Caterer creates a 3PL (3rd party logistics) with the local store
Caterer only has to worry about shipping from the local store to them
Local store already has a supply chain set up
Easily changed to include the catering company
Local store does not have the buying power of other businesses but they are more integrated into the local area
More knowledge on what people like
Conclusion
Both have the advantage to help each other
In a world of big business: two private businesses
It is important for the Caterer to see the importance of not finding the cheapest price
Could put local store out of business
Taboo to drink out of a can- Glass bottle is a must at these events
Wholesale distribution businesses are known as the third party logistics companies as well as the 2nd tier
This system is a three tier system where producers can sell their products only to wholesale distributors who then sell to retailers and then only those retailers may sell to consumers.
Climate controlled and keeps a consistent temperature
All beer manufacturers have unique sales agreements and contracts– some may exclude you from distributing their brand because the area in which you operate is protected or the exclusive right of someone else.
Warehouses have well designed docks– this is important because trucks must be handled efficiently when beverages come from manufactures so that inventory can be picked efficiently for retail deliveries.
There have even been cases of manufacturers collaborating with each other to improve efficiencies (such as sharing the same distribution facilities including the same van for deliveries).
EFFICIENCIES OF A WAREHOUSE DISTRIBUTOR
Transportation cost savings that the distributor tier permits
Increased consumer choice attributable to the operations of the three tier beer distribution system
Ensuring reliable and predictable product availability including frequent delivery, refrigerated warehousing, inventory management and space management.
Safeguarding product quality
Making a greater variety of beers available
Stocking a rotating shelf sets as part of direct store delivery
Replenishing out of stock items quickly
Keeping an open dialogue with retailers regarding best practices for responsibility in advertising
FUN FACTS
Beer distributors add $54 billion to the national total value of production (gross domestic product).
The existence of the distributor tier in the beer industry produces significant n efficiencies for suppliers and retailers by reducing the costs of transporting beer, servicing retailers and providing consumer with a wide array and selection of choices.
Efficient beer distribution with the wholesale tier saves $22 billion per year.
Beer distributors in New Jersey are involved in a wide variety of charitable, economic development and community-building activities. In addition they are good corporate citizens in their support of energy conservation, recycling and other green initiatives. New Jersey’s beer distributors also play a vital role in alcohol awareness and education. In an environmental responsibility partnership with Solis Energy, one New Jersey beer distributor installed a solar energy system in 2011 to minimize its carbon emissions.
Local Bar/Restaurant
Customers come to the store to purchase alcohol but mostly relax and enjoy a couple drinks with friends
Price can have a small impact but usually not
The relationship that these two create have a lot of advantages
Retailer Bars can guarantee a flow of business from the Warehouse distributor
Retailer which in this case is the Bar/ or Restaurant creates a 3PL (3rd party logistics) with the Warehouse distributor
After obtaining the beer from the Manufacturer the Warehouse distributor supplies multiple Bar/Restaurants meeting their needs and orders.
Conclusion
The existence of the distribution tier in the beer industry produces fewer direct connections between 1st and 3rd tiers therefore transportation needs are reduced as well as fewer transactions are required and less selling and marketing effort is needed
Since retailers receive deliveries multiple times per week some more than once per day makes the process almost impossible without these beer distributors.
