Beer bottle circularity: Hospitality Channel Return Chain Efficiency – Dutch Brewers Association

 Overview

Company Description

The Dutch Brewers Association (Nederlandse Brouwers) is the branch organization for the biggest 14 brewers of the Netherlands. Together they produce 95% of all the beer for the Dutch market. Our most well-known members are Heineken, AbInbev, Grolsch and Swinkels Family Brewers, but also large MKB-companies like Gulpener, are member.

In the way to become a fully sustainable and circular sector, we are working together on sustainability topics of which circular packaging is an industry best practice. Together we run a system of refillable/ reusable glass bottles, the most sustainable packaging for the retail market.

Project Description

Background

The Dutch beer market has a long tradition of circular supply chain cooperation. Since the introduction in 1985, brewers are sharing a commonly managed reusable bottle, the “BNR30cl”, with a capability of 40 reuses in its lifetime. As a result, the bottle return chain has been simple, effective and very sustainable. A packaging best practice to be proud of.

From 2005, brewers have drifted away from the standard bottle and have introduced individually branded bottles. Additionally the grown popularity of specialty beers, has increased the number of specialty beer bottles in the market.

Problem description

This diversifying reusable bottle landscape is driving complexity in the return chain. The impact of increasing numbers of foreign bottles in crates is big: bottle losses have increased, cost of complexity is substantial for all parties of the return chain, due to the need to sort, separate and exchange bottles and crates. As a result the circularity of the system (although still a best practice) is under pressure.

Pre-work

A program is running by the Dutch Brewers Association (NLB), addressing the 5 steps in the return chain:

1. Consumer,
2. Return vending Machine
3. Store return process
4. Return Distribution centre
5. Intake and processing at breweries.

Until now the focus has been on the retailers

This new project starting in September aims to extend the scope of the program to the Hospitality sector distribution channel. The project will need to make an inventory of current practices between the different breweries and wholesalers, an analysis of best practices and a recommendation to implement these.

Goals of the Project

The objective of the full program is to improve the return quality of bottles in crates, aiming to increase bottle circularity by 40%.

The scope of this project will be ‘right first time’ bottle return, addressing the root cause of the issue at the Hospitality channel, aiming to improve sorting quality, reducing half of the non-conformities.

Deliverables

A clear toolkit of tested and (economically) feasible best practices that can be implemented, and will deliver proven results.

Essential Student Knowledge

FMCG, supply chain processes, strong analytical (excel) and project management skills

More information: escf@tue.nl