Four Megatrends Shaping the Landscape of the Beverage Industry

Patrick Tickle, CEO of Encompass, and Ray Guerin, former Chairman/CEO of Reyes Beverage Group and current Encompass Board of Directors member, discuss industry megatrends and how tech, data, and insights can be leveraged to thrive in a dynamic market.


April 4, 2023

Patrick and Ray discuss the beverage industry at large, but four trends stand out from the rest in relation to how producers and distributors can grow their businesses and rise to meet the challenges shifting the very landscape of the beverage industry.

Here are some of the main takeaways:

Managing SKU Proliferation with Supply Chain Data Analytics 

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  • SKU proliferation has taken on a whole new life as product life cycles shorten and flavors expand. Changing consumer preferences result in pressure on producers and distributors to speed up time to market. 

  • The expansion of RTDs and seltzers has slowed the supply chain, making it essential for all three tiers to share data to know how much to produce, what to order, what to sell, and when.

  • Producers and distributors can take cues for how to leverage data, make intelligent decisions, and drive successful market execution from other industries that have experience simultaneously managing product freshness and a large number of SKUs.

Meeting Consumer Demand with Real-Time Beverage Production Data and Automation 

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  • Shifting consumer preference forces distributors and producers to carry and hold more SKUs to be successful, adding complexity to their business. Real-time data from retailers can improve overall market execution so distributors and producers can make the most effective use of warehouse space. 

  • Automation technology - both in equipment and in software - is available to help producers move into the modern beverage industry by implementing techniques that are already helping other industries streamline production.

  • This is the moment in our industry when businesses fall behind or fail altogether if they don’t collaborate to leverage data, automation, and analytics throughout the supply chain.

Using Data to Move Beyond Efficiencies and Drive Top-Line Growth

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  • The industry needs to adopt technology and tools to train and alter the mentality of their teams from chasing efficiency to driving top-line sales growth. Efficiency is a side-effect of better utilization of data.

  • The businesses that are really growing are the ones leveraging data to get the right products in front of the right consumers at the right times. 

  • Supply chain efficiency leads to better orders for retailers so consumers get more of what they expect on the shelves. When consumers can always get what they want, growth ripples up the supply chain.

Navigating Industry Convergence with Data-Driven Brand Management

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  • Industry categories will only continue to blur. It’s all about matching the beverage with the consumer’s occasion. Change is difficult, but the consumer should be seen as the North Star for producers, distributors, and retailers. 

  • Smart brands are bringing in talent from CPG companies to layer in expertise drawn from experiences in other industries. Beverage producers and distributors who choose to learn from other industries will be on a fast track to growth.

If you’re a beverage producer looking to leverage technology to conquer these challenges, learn more here:

If you’re a distributor looking to leverage technology to conquer these challenges, learn more here: 

If you're a winemaker looking to leverage technology to conquer these challenges, learn more here:

For more information about Ray Guerin joining the Board of Directors at Encompass Technologies, visit: 

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