Can OEM Beer Boost Your Business?

OEM beer production offers every enterprise an easy way to either enter or expand its operations within the competitive beverage industry. According to Statista, the global size of the craft beer market surpassed $108 billion in 2022, while private-label beers-which are largely driven by OEM manufacturing-are taking up 18% of that market. These numbers illustrate great potential for brands to utilize OEM beers as a way to increase profits and gain greater market presence.

Probably the most important advantage of OEM beer at this point in time is cost efficiency. Depending on the scale and equipment, setting up a brewery may range from $500,000 to over $5 million. In contrast, outsourcing production to an OEM brewery will not require any infrastructure investment. A testimony from one U.K.-based startup showed that with the use of OEM beer services, initial costs were saved by 60%, which could be invested in branding and marketing.

The possibilities for customization that OEM beer provides to the brand in reaching very particularized consumer demand become a reality. Such as a very successful seasonal beer, where one U.S. beverage company in 2021 managed to increase 30% in sales during that holiday season because they wanted it with their OEM partner. Such quick changes for trends like low-calorie or gluten-free beers increase a brand’s relevance to diverse markets.

OEM beers are strategic options for companies in production speed and scalability, meeting the demand fluctuations. Most of the OEM facilities can produce up to 300,000 liters per month, with the ability to scale up 20% during peak seasons. This flexibility allows brands to avoid overproduction risks while ensuring consistent supply.

It even helps the growth of businesses: the cooperation with an end-to-end-service-providing OEM brewery helped reduce a Southeast Asian brand’s logistical expenses by 15% in terms of storage and shipment. Due to that smoothness, its delivery speed greatly improves the level of satisfaction on the customers’ end.

Besides that, the trend of sustainability is also crucial for many companies. Eco-friendly practices, such as renewable energy and recycling of wastewater, saving up to 10% in production costs, have been a justification among OEM breweries. Brands with eco-friendliness in thought gain customer preference; hence, this trend acts to each business’s competitive advantage.

Quality and speed are non-negotiable in today’s beverage market,” said David Harper, founder of a beverage consultancy firm. Harper’s remark underlines the role of OEM BEER in ensuring product excellence while maintaining rapid production cycles.

OEM beers are particularly beneficial to SMEs, as this lowers the barriers to entry. In fact, in a survey conducted by Beverage Market Trends in 2022, it was found that 68% of the beer brands that entered the market chose OEM production to minimize risks and maximize reach in the market. This would enable SMEs to compete with established businesses without any additional operational overhead.

OEM beer allows business innovation, scalability, and hence competitiveness in such a dynamic marketplace. Its effectiveness, flexibility, and economies of scale ensure that it works as a rightly tried strategy toward brand growth.

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