Brewery Unlocks Better Forecasting
With more than 30 beers in its portfolio, Pabst Brewing Company is the largest American-owned brewery. The privately-owned company holds the rights to number of legacy beer brands, including Lone Star, Stroh’s, Old Style, Natural Bohemian and Old Milwaukee in addition to the eponymous Pabst Blue Ribbon. The brewer was named the 2016 Large Brewing Company of the Year by the Great American Beer Festival, where Pabst Blue Ribbon took gold for the best American-style lager, the brewery’s fourth such medal in 10 years. Pabst the third largest U.S. brewing company in beer sales volume in the increasingly diversified $108 billion U.S. beer market.
With trends that change by day, week, month and season – and with several beer brands decidedly regional in appeal — sales forecasting for its portfolio of beers can be complex. Among the key performance indicators tracked in the beer market are shipments, revenue, costs and depletion volume, which refers to the rate at which products move from distributors to retailers. The sales, inventory and operations planning process is a critical one, enabling brewers to focus on manufacturing and transporting beer at the most efficient levels.
The brewery turned to PK to build a sales, inventory and operations planning (SIOP) process that could enable the brewer to plan and forecast more effectively. PK built a solution that leveraged insight and data from executives, field sales team, top retail customers and brand marketing to inform updated forecasts to better plan sales, production and inventory – and feed into the company’s annual financial plan as well. The PK approach incorporated performance management, predictive analytics, data integration and business intelligence.
The end result was a single, unified solution that enabled the brewery to unlock the ability to create more accurate, reliable forecasts and plan for the future – all while ensuring that its growing portfolio of beers was available when and where consumers wanted it.