Whoever thought brewing and distilling would become a high-tech pursuit?
In a sense, they have become just that. Software is taking over some aspects of brewers’ and distillers’ businesses – areas like accounting, inventory, packaging, purchasing, sales, scheduling, quality control, compliance and mobile apps – and allowing operators to concentrate on what they love: making and selling their dream beverage.
Not every craft brewery or distillery employs a software platform, but an increasing number of operators are turning to high-tech help. Technology likely will make its way to Indianapolis-based New Day Craft, producers of modern craft mead and hard cider, said Tia Agnew, co-founder and CEO.
“The larger you get, the more organized you need to be to ensure all of the moving parts of your production operate smoothly,” she said. “Having a back-of-house program that tracks your operations helps you to maximize your potential while reducing error and inefficiencies in your system.”
The challenge is having the time and preparation necessary to integrate these programs into current operations, Agnew said. “Bringing on technology for its own sake isn’t going to be helpful if you’re not in a position to ensure that it’s implemented appropriately and [you’re] disciplined enough to use it.”
Data-Driven Sales
Lake Forest, Calif.-based iPourIt Inc. has another spin on high-tech assistance – allowing craft breweries and taprooms to move into self-service.
Their system allows operators to offer customers an array of craft beers and wines with a mere swipe of a credit card, with virtually no product waste and infallible inventory management, said Darren Nicholson, the company’s sales and marketing manager. A customer arrives, swipes a credit card, and opens a tab, then chooses from any number of craft beers available on a “beer wall,” Nicholson said.
However, there’s more to it than that simple process. The system can turn into a veritable gold mine of information for an operator to learn about customer preferences, sales volume and more.“The system collects their gender, age and zip code and that becomes an aggregate datapoint for everything they pour,” Nicholson said.
The information is helpful not only to the operator but is a gauge for iPourIt. According to Nicholson, the average user is 31.7 years old, will go to the beer wall fives times and pour 4.7 ounces each time. This tallies to total spending of $14.10 average per person per visit. That’s just one layer of information the software calculates. “The operator can use that data for determining price and product placement,” he said. “We have strategies around the beer wall itself. We’ve created a visual for how to create the interest of the patron.”
Patrons love the self-serve nature of the system, Nicholson said. He adds that operators love it because they can focus employee functions more effectively. “By charging by the ounce, it gives the operator and the patron freedom to create their own experience,” he said. “They can sample different products before settling on one they like.”
The system also can alert a customer who might be approaching a certain consumption threshold, Nicholson said. At a certain point, the system will “check out” the customer, who has to “check back in” to have another drink. “It creates a new exciting experience for patrons,” Nicholson said. “You can only pour 32 ounces until you have to check back in or one of the beer wall ‘ambassadors’ see you’ve reached the level and can open the wall up again. That becomes a very nice process for both the patron and operator.”
It’s nice for patrons since they can control their intake by the ounce and, therefore, “ensure they don’t get over served,” Nicholson said. “It’s on the patron’s mind that they don’t want to drink too much.”
The iPourIt system has two ways of helping an operator control inventory, Nicholson said.
“Number one, the technology creates an objective process for checking people in and out. Number two, it keeps track of patron’s usage and data on product and pricing, and it measures the amount of beer coming out of taps,” Nicholson said.
The system slashes the amount of product that goes to waste, Nicholson said. “The average shrink for beer coming out of taps is 23 percent. On a keg of beer, that’s roughly 440-plus ounces – but with iPourIt, every ounce that’s poured is sold. That essentially goes right to the bottom line. There’s some very strong return on investment calculations just based on that.” The system also bypasses bartender errors, such as over pours, freebies, tastings and “sweet-hearting,” or errant ring-ups, Nicholson said. “There’s a lot of waste you really don’t need,” he said.
The iPourIt software allows for price changes at certain times to accommodate events like happy hours, Nicholson said. “There’s a lot of efficiencies for the operator,” he said. Nicholson said he sees iPourIt as a way for microbrewers to stand out in an increasingly crowded and competitive field. “At some point, how do you differentiate yourself? We believe it’s tasting and sampling your way through different products on your own,” he said.
Inventory Management
Singapore-based TradeGecko offers a cloud-based commerce platform that allows brewers to manage inventory levels, orders and the broader supply chain ecosystem from a single, integrated platform.
“In addition to ecosystem integrations, the platform offers multi-channel inventory and order management, a B2B e-commerce store, a mobile app, workflow automation, and reporting and analytics,” said Andrew Bowden, senior manager for product marketing. “TradeGecko supports brewers that operate with multiple users, sales channels, warehouses, currencies and tax requirements, as well as CRM tools and integrations that are essential to business including accounting software, marketplaces, and many other tools.”
TradeGecko is an easy-to-use platform that allows organizations with as few as a single employee to expertly manage their inventory and orders across one or multiple channels, Bowden said. “Unless organizations intend to use TradeGecko’s API to build integrations at their own pace outside of our natively built integrations, the user interface is completely point and click.”
Both Nicholson and Bowden say their software systems go through regular upgrades. “Updates and enhancements are made to the TradeGecko platform on a bi-weekly basis, with several new features rolling out quarterly,” Bowden said. “Most recently we’ve released Demand Forecasting to enhance TradeGecko Intelligence’s capabilities – a stock receiving app within the TradeGecko app store that allows merchants to receive inventory by scanning purchase order barcodes while automatically updating inventory. We are also about to release a Pick Pack app that will allow warehouse workers to pick and pack orders with a barcode scanner (or iOS device) and automatically update inventory.”
TradeGecko can lead to brewery growth by allowing microbrewers to integrate and automate their operational systems, reducing the frequency of risks associated with manually managing inventory, orders, warehouse management, fulfillment and reconciling with accounting software, Bowden said. “Simply put, TradeGecko manages repetitive, error-prone operational tasks and helps microbrewers focus on doing what they love, making great beer and growing their business.”
User-Friendliness a Key to Success
Ease of use is a key to software success, and K&G Data Solutions LLC in Ridgewood, New Jersey brings that to brewers with its Brew-Q software, said Fletcher Keil, K&G Data’s founder and president. Keil describes the system as “a fully customizable, user-friendly software that replaces clunky Excel sheets and allows you to easily track and view quality data from grain to glass.”
The system is “incredibly easy” to operate and can be set up and run entirely on a computer or tablet device, Keil said. “We wanted to drill down specifically to quality – we saw far too many breweries relying on paper files or Excel sheets in order to track data and wanted to offer a brand new solution with a focus on customization and user-friendliness,” he said.
K&G’s software also is updated regularly. “We do updates typically twice a week, which is primarily driven by customer feedback and suggestions.”
Keil said Brew-Q could be an important step in a brewer’s or distiller’s growth plan. “By standardizing your data collection, you do not need to rely on paper files or how a certain quality manager has done things in the past. With Brew-Q, you will be able to easily enter, view, and report on all of your brewery’s quality data,” Keil said.
Cost is a factor in figuring out if a software system is right for one’s business, Keil said, mentioning “price vs. functionality. What Brew-Q does is simple, intuitive, and complete, and does not cost you an arm or a leg.”
Software vendors note many reasons for investing in a system, but they also say there are some “cons” to ponder.
“The software that offers ‘all-in-one’ solutions are typically very expensive, not customizable, and take ages to set-up,” Keil said. “Brew-Q is designed for the small craft breweries looking to maximize their quality data collection starting immediately.”
With so many software options available, Keil urges operators to shop carefully. “Look at all of the options out there and pick one that best fits your budget as well as what you’re looking to accomplish,” Keil said.
A Specialized Focus
BeerRun Software is a single-database batch/process manufacturing system used by all types of brewing operations. Instead of entry-level accounting software, BeerRun allows users to “get out of spreadsheet heaven and focus on inventory, where a lot of their headaches begin,” said Steve Plisk, CEO, who launched the company in 2011.
The first step is ensuring BeerRun “is a good fit” for an operation, Plisk said. “If somebody’s looking for an all-in platform – accounting, as well as operations and inventory side – that’s not us,” he said. “We’ve solved that problem by providing accounting as backend. So, if you just launched a brewery and have QuickBooks, you probably love to hate it. Rather than migrate from that, we have Materials Resource Planning. It’s a step-down from ERP (enterprise resource planning), so we’re basically a step down from accounting. We chose not to do that for several reasons. That way, whatever you’re using for accounting back end is simplified like a checkbook.”
Plisk said three things differentiate BeerRun from the competition. First, BeerRun and BeerRun Light meet the needs of microbreweries, not ERP solutions for large enterprises. Secondly, the system uses “customer input” as a guide, Plisk said. “If you’re a brewer, you tell us what you want and don’t want, as opposed to looking over somebody else’s shoulder, copying them and selling them as our own.”
Third, BeerRun chose a no-migration strategy because it’s practical, simple, affordable and flexible. “Our solutions auto-sync seamlessly with popular accounting programs — eliminating the extra cost, time and training involved in moving to a new platform,” he said.
BeerRun’s specificity makes it effective, Plisk said. “Some people are looking for an all in one. That comes with a different price tag,” he said.
BeerRun is easy to learn and use, Plisk said. “We usually get people comfortable with it in about 15 minutes. It’s brewer-based. You’ve got live data. We walk you through some wizard-like workflows, with one question and answer at a time. We tried to make it very idiot-proof. If I can use it, anybody can.”
A good software system is a tool for a brewery’s growth, and BeerRun assists along that path, Plisk said, “because information that gets lost tends to put a drag on growth. We help them get their hands around it so they can manage growth, whether it’s planned or unplanned. Information tends to get away from you when the spreadsheet pace is consuming you. We eliminate a lot of that and the gaps it tends to fall in.”
No software management system will work unless everyone involved supports its use, Plisk said. “If you don’t have buy-in from everyone on your team, it won’t work,” he said. “If your brewmaster just will not leave his spreadsheets, that’s going to fracture the flow of information. That’s true of sales or purchasing managers or accountants. If they will not leave it and use something else, it will break up the flow of information. That’s a big one because it does happen. Every failed implementation we had was because there was somebody in that business that just won’t buy-in.”
Software for Craft Distilleries
Software systems and automation are driving the craft-distilling business, as well. H.E.J. (Odin) van Eijk said he has recognized the need and jumped on the opportunity.
Van Eijk said he saw the need for more automated systems years ago, so he started developing a robotized approach and launched a line of automated tools under the iStill banner in Amsterdam, Netherlands.
The company’s automated distillery systems are catching on, van Eijk said, noting that iStill currently has about 50 systems operated in the U.S. Those systems, with capacities ranging from 26 to 1,300 gallons, can perform automated and robotized mashing, fermenting, and distilling. “The system is equipped with automation and robotization, and that allows for all steps of the alcohol production process to take place in one machine – mashing, fermenting and distilling,” Van Eijk said. “The automation and robotization lead to perfect control over each step, helping to achieve an easy operation with great, repeatable results.”
The system is user-friendly, Van Eijk said. “The automation helps make things easier. We advise to follow one of our four-day workshops in the Netherlands or the U.S., so we can train you adequately.”
Van Eijk said his iStills differ from traditional stills because they are rooted in “21st-century technology,” instead of earlier eras. “In that sense, our stills have more in common with modern, computer-controlled stainless steel brewing equipment,” he said.
Van Eijk said iStill’s years in the business has led to some tweaking, as needed. The company has “templates you can use for whiskey, rum, brandy, vodka and gin,” Van Eijk said. “If you want to adapt the base templates or design a new run program for your specific spirit, you can do so as well.”
The software can boost product quality, consistency, as well as cost efficiency, Van Eijk said. “Our integrated and modern still design allows a brewer or distiller to harvest the exact flavors he wants or that the spirit needs,” he said. “The automation and control make sure every run – for a specific alcoholic beverage – is the same. An efficiently managed system like the iStill can save you up to 80 percent in operating and running costs.”
Van Eijk advises would-be customers to test any system before committing to it. “Make sure it works for you,” he said.