Overseas Demand is Brewing for US Craft Beers

Overseas Demand is Brewing for US Craft Beers

US craft beers have become increasingly popular abroad. Unfortunately, exports have not been able to match the growing demand.

High transportation costs and the risks of transporting a perishable product over long distances have deterred some brewers from exporting. Although some brewers have partnered with overseas beer makers and bottlers to expand rapidly, others have preferred to take a slower, careful approach to market share growth.

This post is based on the PRI.org article, Europeans are embracing American craft beer. So, why are exports trailing off?, by J. Margolis, February 15, 2018. Image source: nuamoid / 123RF.

Discussion Questions

1. Price, delivery reliability, delivery speed, quality, and flexibility can be order winners or qualifiers. For New Belgium, which characteristics are order winners and qualifiers? Why?

Guidance: Superior quality is definitely an order winner because overseas beer drinkers like the hoppy taste of US craft brews. Price is a qualifier; the high cost of shipping the beer overseas makes it difficult to beat the local competition on the basis of price. Delivery reliability is a qualifier; customers will cease to do business with suppliers who cannot deliver on time. Flexibility is a qualifier; brewers must provide the variety Continue reading

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What the Cluck Happened to KFC?

What the Cluck Happened to KFC?

March 5, 2018

UPDATE 3/5/18: The good news is that 97% of UK restaurants are restocked with chicken. The bad? KFC ran into another shortage, this time of gravy.

Original post:

In the UK, about 800 of the 900 KFC locations were closed on Monday, February 19th, 2018 due to a shortage of chicken.

How could KFC be out of chicken?

Supply chain operations are normally taken for granted, until something fails.  And fail they did.

A combination of events led to the chicken shortage. At the front of the line is KFC’s switch of their logistics partner from Bidvest to DHL.  Delivering fresh chicken to over 900 restaurants is not an easy task, as DHL found out.

KFC’s former logistics, Bidvest, is a food distributor.  DHL, known for success and innovation in the logistics field, is learning how to be a food distributor.

Add in that Bidvest had a network of six distribution centers to DHL’s one new center.  A combinations of traffic accidents around the one center, new employees at the new center, a facility that wasn’t registered for food, IT failures, and other problems led to KFC’s chicken shortage.

It may have been Continue reading

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