There is no single simple answer to overcome the challenge and anguish of the extent of change that’s upon us globally. Change is tough even when it’s for very good reason, that’s why we ignore it, resist it, put it off, and complain about it, explains Christian Barden, CEO UK & Europe at Konvoy. However, as he argues, change will happen, and our terrific industry will adapt and seize the opportunities that come with it once again.
I cannot remember the first time I heard “If you don’t like change, you’ll like irrelevance even less” or who said it, but it remains equally as relevant today. Consciously, deliberately, or otherwise, embracing change is what got so many of us, our families, and our businesses through COVID-19, and now it feels like the economic heat’s been turned up.
Reflecting on some iconic brands from my past, I remember that during prohibition, many American breweries, distilleries, and vineyards had to dramatically change their ways, instead of closing. Coors became the world’s largest supplier of malted milk. Anheuser Busch was one of the most innovative breweries, producing more than 25 different non-alcoholic products, including soft drinks, corn syrup, ice cream, frozen egg products and truck bodies.
Closer to home and eras, during lockdown, Signature Brew pivoted to give us the “Pub in a Box” and Sprout (now Mr Yum) pivoted to give us track and trace for any social environment. In a post-COVID era Gipsy Hill are taking on the complex challenge of carbon negative beers with no offsets, 5th Ingredient and Breww have taken brewery management software to a new level, AB InBev together with Boston Dynamics have a robot inspecting lines to drive efficiencies, and Heineken are collaborating with Seimens for their multi-phase decarbonisation program at breweries and malt houses.
But it seems like there’s no end to the volatility, uncertainty, complexity, and ambiguity in the drinks and hospitality industry. The constant, unpredictable change that is now the norm, is being squeezed even harder by the cost of living, cost of finance, compounding taxation and UK’s “technical recession.” It’s tough right now and I feel for everyone fighting to keep their businesses and livelihoods.
In a world of ever-evolving tastes, trends, and technologies, the beer and hospitality industry stand as resilient and enduring cornerstones of social culture and economic vitality. While the fundamentals of brewing and hospitality may remain timeless, adaptation and innovation are essential to meet the demands of a rapidly changing landscape.
“The world was so overrun with war, and pain and misery. The daily grind was so exhausting and often unjust, maybe the only answer is to find some prodigious improbable dream that that seemed worthy, that seemed fun, that’s a good fit and chase it with an athletes single minded dedication and purpose” wrote Phil Knight as he contemplated starting what we now know as Nike in 1962, but it could apply to many of us in the present day.
Right now, there’s so many things impacting potential and performance but having ruthlessly fact-based clarity about what those things are is a key to embracing the change needed to survive and thrive. The next few paragraphs will be common sense to many but if they spark an idea, force some careful contemplation or just reignite belligerent determination then it’ll have been worth putting pen to paper.
In a world of ever-evolving tastes, trends, and technologies, the beer and hospitality industry stand as resilient and enduring cornerstones of social culture and economic vitality.
Christian Barden
Purpose will always be a booster rocket to achieving anything. Purpose drives long term strategy with everyday attitude and actions from team hiring to firing, to product development and deletion. With simplicity, clarity and repeatability, whatever that purpose is it becomes infectious and builds momentum.
People will always make the difference whether consumers, colleagues, customers, communities, suppliers, or investors. Create the right stretch, support, safe environment, and your purpose will be taken care of. Enabled the right way, people tell you and each other exactly what’s happening. Enabled the wrong way, problems become more frequent and more painful. When your good people go quiet, it leads to even bigger problems. We’re fortunate that between the BBPA, BII and UK Hospitality (to name a few) that we have industry bodies banging the drum on topics ranging from legislation to taxation and beyond. We should certainly applaud them, but we should also contribute to them succeeding on our behalf wherever possible and relevant.
Our planet needs us to change and get to net zero now. It’ll take time to turn the super tanker and the Corporate Sustainability Reporting Directive (CSRD) is just around the corner requiring companies to report on the impact of activities on the environment and society. Early compliance with CSRD will throw up other opportunities when getting a grip with apparently non-financial indicators, driving innovation across the production and supply chain processes.
Developing the right sustainability reporting and framework is a serious challenge. The number of metrics across Scope 1, 2 and 3 is vast and varies by industry, company size and complexity. The earlier the anticipation, the more agile and future-proof to face these challenges whilst creating all kinds of competitive advantages.
Technology can be an enabler and accelerator of so many goals. It needs to be selected and used with discipline. It can be immense when deployed for the right reasons.From automated brewing systems, e-commerce platforms and digital marketing tools, and internet of things (IoT) enabled assets, technology will continue to reshape every aspect of our industry, supply chain and consumer experience.
Subsequently, leveraging data from technology enables more informed insights and decisions to optimise operations, enhance product quality and consistency, and engage consumers through digital channels to the point of connection.
Profit comes with many levers. The “grand slam” of growing volumes, growing revenues, reducing costs, and growing market share probably feels out of reach right now but it is possible. It becomes much easier to pursue with unwavering focus on what your organisation can be truly passionate about, can be best in the world at and what drives your economic engine. And that “prodigious improbable dream” can be very different for every organisation and team.
There is no single simple answer to overcome the challenge and anguish of the extent of change that’s upon us globally. Change is tough even when it’s for very good reason, that’s why we ignore it, resist it, put it off, and complain about it. However, change will happen, and our terrific industry will adapt and seize the opportunities that come with it once again.
