CATEGORY

Benchmarking of Brewing Raw Materials

Wide range of brewing raw materials have been benchmarked on sourcing practices

Beroe LiVE.Ai™

AI-powered self-service platform for all your sourcing decision needs across 1,600+ categories llike Benchmarking of Brewing Raw Materials.

Market Data, Sourcing & Supplier Intelligence, and Price & Cost Benchmarking.

Schedule a Demo
Meet Abi

The World’s first Digital Market Analyst

    Schedule a Demo
    Meet Abi

    The World’s first Digital Market Analyst

    Abi, the AI-powered digital assistant brings together data, insights, and intelligence for faster answers to sourcing questions

    Benchmarking of Brewing Raw Materials Suppliers


    Benchmarking of Brewing Raw Materials Supplier

    Find the right-fit benchmarking of brewing raw materials supplier for your specific business needs and filter by location, industry, category, revenue, certifications, and more on Beroe LiVE.Ai™.

    Sample Supplier
    Company
    CARGILL INCORPORATED
    Location
    Jackson, Mississipi
    Duns number
    3862211

    D&B SER Rating

    dnb logo

    Up to 3 months

    1 9
    5
    Low Risk High Risk

    The Supplier Evaluation Risk (SER) Rating is Dun & Bradstreet’s proprietary scoring system used to assess the probability that a business will seek relief from creditors or cease operations within the next 12 months. SER ratings range from 1 to 9, with 9 indicating the highest risk of failure. We’ve prepared an infographic to help business owners better understand what influences their SER Rating.

    Moody`s ESG Solution
    ESG Profile

    Company and Sector Performance
    29

    100
    Weak (1)
    ESG Perfomance (/100)
    Environment
    38
    Social
    28
    Governance
    19
    6 Domains Performance (/100)
    Business behaviour
    38
    Human rights
    24
    Community Environment
    26
    Corporate governance
    9
    Human resources
    21
    Security Scorecard
    82

    Threat indicators
    B
    88
    Network Security
    Detecting insecure network settings
    A
    100
    Hacker Chatter
    Monitoring hacker sites for chatter about your company
    C
    77
    DNS Health
    Detecting DNS insecure configuration and vulnerabilities
    C
    75
    Application Security
    Detecting common website application vulnerbilities
    C
    74
    Endpoint Security
    Detecting unprotected enpoints or entry points of user tools, such as desktops, laptops mobile devices, and virtual desktops
    A
    97
    Cubic Score
    Proprietary algorithms checking for implementation of common security best practices
    A
    93
    Patching Cadence
    Out of date company assets which may contain vulnerabilities of risk
    A
    100
    Social Engineering
    Measuring company awareness to a social engineering or phising attack
    A
    95
    IP Reputation
    Detecting suspecious activity, such as malware or spam, within your company network
    A
    100
    Information Leak
    Potentially confidential company information which may have been inadvertently leaked

    Industry Comparison
    cargill.com
    Industry average
    Adverse Media Appearances
    Environmental Issues
    23
    Workforce Health Safety Issues
    0
    Product Service Issues
    14
    Human Rights Issues
    23
    Production Supply Chain Issues
    8
    Environmental Non Compliance Flags
    45
    Corruption Issues
    0
    Regulatory Non Compliance Flags
    25
    Fraud Issues
    5
    Labor Health Safety Flags
    48
    Regulatory Issues
    20
    Workforce Disputes
    6
    Sanctions
    0
    esg energy transition
    47
    Discrimination Workforce Rights Issues
    19
    esg controversies critical severity
    Yes

    Benchmarking of Brewing Raw Materials market report transcript


    Global Market Outlook on Benchmarking of Brewing Raw Materials 

    Portfolio Analysis for Brewing Raw materials

    • Malted barley – In developed countries, the buyer power is high for malt as there are many designated third party commercial maltsters. Most of them only produce brewing malt and depend on large-volume contracts from well established breweries
    • Adjuncts – Availability of adjuncts is limited in developed countries. Corn and wheat are mostly used as adjuncts and its supply is moderate to the Brewing industry as major volumes are used in food, bio-fuel and feed.
    • Enzymes & Yeast – Enzymes and yeasts are generally customized for each brewer and hence the buyer does not have the upper hand. Higher supplier power is seen and also buyer tend to carry longer contract periods to ensure uninterrupted supply of both.Yeast suppliers fetch higher returns from other industries, thus breweries hold relatively lower bargaining power
    • Hops – With dwindling supply of aroma hops already and increase in beer production every year, the hops prices are  on the rise. Thus, supplier power is high

    Portfolio Analysis of Brewing Raw Materials in Developing Countries

    • Malted barley – In developing countries, the buyer power is high for malt due to the presence of in-house maltsters. The need for third-party commercial maltsters become less essential.
    • Adjuncts – The availability of different adjuncts are high in developing countries. Maize/Wheat, Rice and Cassava/Sorghum, although all being adjuncts are ranked at different quadrants due to the fact of their different supply-demand situation. Rice and Maize/wheat are cultivated largely in Asia-Pacific and has enormous supply. However, rice is exhausted by demand for food from these countries but Maize/Wheat has enough stocks to be used in brewing industry. Cassava/Sorghum are primarily grown in African countries and they are staple diet for people of Africa, this means the buyer power is less for Cassava/Sorghum and Rice compared to Maize/Wheat.
    • Enzymes & Yeast – Enzymes and yeasts are generally customized for each brewer and hence the buyer does not have the upper hand. Higher supplier power is seen and also buyer tend to carry longer contract periods to ensure uninterrupted supply of both.
    • Hops – With dwindling supply of aroma hops already and increase in beer production every year, the hops prices are  on the rise. Thus, supplier power is high

    Global Malting Capacities

    Global Malt market weights at 25,800 Thd T and The total in-house malting capacity of the leading 12 brewing companies total at 5,573 Thd MT which are distributed globally. However, developing countries hold major share of 63%.

    • All the top brewing companies have their own in-house malting locations. The establishment of in-house maltster is a very calculative decision and is periodically analyzed for its necessity. At decreased utilization, the maltster would be susceptible to closure and in need of more volume the maltster would be increased for capacity.
    • Malt occupies the major spend in the Brewing industry and implementation of strong strategic procurement objectives will essentially save huge spend and also ensure sustainability in the long-term.
    • Developing countries lead in the number of in-house malting capacity accounting for around 63% of the global share. This clearly indicates that the procurement process varies hugely between developing and developed countries.

    In-house Malting Capacities of Top Brewers

    In-house malting capacities of ABInBev and SABMiller are focused on developed and developing countries respectively. Hence their acquisition of the latter by ABInBev will be very effective in the coming years in managing and understanding the dynamics of Brewing industry.

    Plant Closures and Expansions

    • ABInBev have their in-house malting plants in regions focused to the Americas as they are well established there. Compared to 2013, in 2016 they have increased their total malting capacity by 3% from 1,896 Thd MT to 1,952 Thd MT.
    • SABMiller has been an established brewer in developing and under-developed countries of Africa and South America. They have decreased their malting capacities by 45.5% in 2016 compared to 2013. The company shut its European and US malting capacities which comprises to a total of 453 Thd MT owing to high operating cost.
    • In comparison to 2016 with 2013, in-house capacity of Heineken remains largely unchanged which is pronounced by its effective operations. However, Carlsberg had to shut down its two plants with a capacity of 227 Thd MT in Denmark and Poland due to availability of cheaper malts from commercial maltsters in EU.

    Global Scenario of Malt Procurement

    Parameters In Make/Buy Decision Making

    • Dependency – Brewers in developed countries are completely dependent on third-party maltsters primarily aiming for cost effectiveness and lower lead times. It is comparatively expensive to setup and run malting units in-house in developed countries.
    • Better Contract Period - Brewers opt for longer contract periods to get better rates and sustainable supply of malt. Typically when a maltster has a longer contract with brewers, they can plan their capacities, cost and raw material sourcing effectively
    • Regional Dominance - Regionally established companies in general are vertically integrated to in-house malting. For example, ABInBev's major regions of operation are US and South America. 80-90% of the total malt used here are produced at their in-house malting facilities as it is very efficient in terms of cost and brewing.
    • Self-sustainable – Brewers in developing countries need to have their own in-house malting units and/or import malt from other countries to satisfy their malt requirements due to no or very limited number of local commercial maltsters. 70-80% of the malt used in developing countries are in-house made. The setup of in-house maltster is cheaper and incurs low running cost in developing countries. The volume required above locally produced malts are sourced from countries offering at cheapest price.
    • Malt and Adjuncts – Beers in developing countries are often tailored to match the global flavor with usage of less malt and more adjuncts compared to developed countries. This way the brewers are able to incorporate more of local grains (adjuncts) which can be procured at cheaper price. A typical beer in developed country would use 60-75% of malt and 20-30% adjuncts, the same beer in developing country would only use 40-50% malt and 30-40% adjuncts.

    Grain Substitutes in Brewing Industry

    Ingredients of an identical branded beer in different countries vary in their ratio of Malt to Adjuncts used but has same signature flavor profile. Adjuncts are cheaper and abundant in certain regions and improves the cost-effectiveness and competitiveness of the beer

    SABMiller (2011)

    First ever commercial scale of cassava-based beer was launched in Mozambique in November 2011. Brewed by SABMiller's local subsidiary called Cervejas de Mocambique (CDM) the brewed beer is called Impala. It uses 70% cassava and has undergone several years of research to come out as a successful product. The product is assumed a hit as the sales of Impala beer is increasing rapidly. A pint of Impala is brewed using roughly about 54% cassava and 42% malt which has been more cost-effective to SABMiller due to cheaper price of adjuncts and good availability locally.

    Regional Adjuncts

    Brewers from developing countries generally use more adjuncts than breweries in developed countries.  Usage of adjuncts to replace malt is very cost effective and is easily available in respective local countries. Different regions use different adjuncts based on its availability as mentioned below.

    USA – Buck Wheat, Venezuela – Rice, Brazil – Maize and Cassava, France – Wheat, Germany – Wheat, Finland – Rye, Russia – Wheat, Malawi – Sorghum, Nigeria – Sorghum, India – Wheat, Mozambique – Cassava, Papa New Guinea – Cassava, Tunisia – Cassava, Myanmar – Rice, Thailand – Rice and Cassava.