The Miller Lite Supply Chain
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Miller Brewing Company was founded in 1855 in Milwaukee, Wisconsin. Over the following decades, it began bottling and canning beer and introduced popular brands like Miller Lite in 1975. In 2007, Miller merged with Coors to form MillerCoors. The brewery produces beer from farm-grown hops and barley which is then packaged in bottles and cans using materials like glass, tin, and plastic before being distributed to retailers through a network of distributors and warehouses.
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The Miller Lite Supply Chain
- 2. Glossary
- 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
- 4. The Brewery
- 5. The Beer
- 6. The Bottle
- 7. The Cap
- 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
- 11. Fin
Editor's Notes
- 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.