According to industry analysts, the $44 billion U.S. spirits market is expected to grow 6% per year through 2022, generating significant opportunities for a range of industry players.
Why the growing demand?
Many factors come into play, including consumer demand stemming from Millennials contributions to industry growth, which make up 32% of U.S. spirits consumption.
Product variety is also contributing to the sector’s growth. New categories of spirits are gaining popularity, such as tequila, brandy, and whiskey.
And just as important, craft spirits are attracting attention, so much so that even larger, more mature brands are starting to carve out a market niche for themselves.
All these factors mean that the distillery industry must track and be flexible enough to adapt to changes in drinking habits. Market leaders must be able to respond to growing popularity of craft spirits, and a robust consolidation environment.
With our focus on the food industry supply chain, the Adroit team is ready to team with today’s distillers to help optimize management and logistical issues. We work to understand your specific operational challenges, jointly craft solutions that incorporate best practices, leverage your existing software assets, and where necessary implement Adroit’s software solutions.
Working with Adroit, you are better positioned to efficiently create and produce products in response to newer trends.
Looking Deeper – Distillery Operational Challenges
As an example of understanding how process and systems improvements can drive performance, let us review the operational challenges faced by distilleries. Today’s modern Enterprise Resource Planning and Manufacturing Execution Systems can support and describe the distillation process which is typically a batch fermentation process which in turn feeds either a batch or high-volume distillation process. These information systems also track the feeds bottling and packaging operations.
Looking at just one example, the key process steps to produce vodka include:
- Fermentation– Grains or vegetables are broken down via an agitation tub to produce a mash. The mash is boiled to kill bacteria and then lactic-acid bacteria is used to raise the acidity level to enable fermentation. Once the acidity level is with the desired range a second boil is completed to kill the lactic-acid bacteria. The mash is then transferred to fermentation vats where yeast is added to initiate the fermentation process. For two to four days the mash ferments to produce ethyl alcohol.
- Pressing– The liquid ethyl alcohol is processed by continuous or batch distillers to remove impurities and to concentrate the alcohol to about 95-100% fine spirits. Water is added to decrease the alcohol percentage to 40%.
- Packaging– The vodka is packaged into glass bottles and shipped to distributors.
When it comes to distillery operations, one size of information systems does not fit all.
Our team helps you understand best practices and the proper application of your niche ERP and business software products.
Adroit can help you solve your forecasting, planning, production, and inventory control, and distribution channel management challenges. challenges with the application of best practices, optimizing your existing systems, or through the implementation of an Adroit software solution.
Distillery Solutions for Improved Operations
Adroit understands the unique challenges presented by high volume distilling operations. As operations scale to respond to market demands, key challenges that present themselves include:
- Developing a cohesive sales, operations, and finance plan (SOP Planning) with accurate forecasts, production capacities, inventory inclusive of distribution pipeline, and financial metrics.
- Driving standardized processes to support employee training and repeatability across different formulations and locations
- Transitioning from formulation spreadsheets to an online integrated system with formulation and recipe capabilities
- Meeting sophisticated forecasting challenges
- Fully integrating traceability
- Gaining insight into yields and costs per unit
- Achieving the ability to plan and manage inventory
- Integrating laboratory information management systems (LIMS).
- Proactively managing by-products and waste to support sustainability
- Integrating and certifying GFSI / food safety schemas to current processes
- Complying with the various federal and state liquor laws.