OEM beer production offers a number of advantages to companies seeking to develop their own branded beer products without the headache of constructing and operating a brewery. Partnering with experienced OEMs allows a company to ease into production, save on costs, and focus its energy on building its brand.
The main advantage of OEM beer is cost savings. Setting up a brewery may require as much as more than $1 million in initial investment, excluding operational costs. By outsourcing the production, a business can save up to 50% of the initial costs and invest the remainder in marketing and distribution. According to an industry analysis in 2023, companies that used OEM beer services earned a 35% higher return on investment within the first two years of operation.
Another advantage is customization: that OEMs can be flexible in recipe formulation, ingredient selection, adjustment of alcohol content, and even packaging design. As an example, one German craft brewery commissioned an OEM for the production of a seasonal beer with locally infused botanicals. Sales of the seasonal beer increased by 20% in the first season it came on the market. It provides a good avenue through which businesses can enter niche markets or fulfill certain emerging consumer trends.
“Efficiency is doing better what is already being done,” said Peter Drucker, reflecting the value OEM beer brings to production. With access to state-of-the-art facilities and expert brewers, companies can ensure consistent quality and efficiency. Many OEM manufacturers use advanced brewing equipment, such as automated fermentation tanks and precision bottling lines, to maintain high standards while minimizing waste.
The time to market of OEM beers is very speedy: a brewery might take well over a year to build, whereas partnering with an OEM could see product launch in as few as three months. A U.S. startup beverage company followed just that path with an OEM and was able to bring its brand to market within 90 days, capitalizing on a very real growing demand for craft beers.
Other strong reasons include sustainability. Most OEM BEER manufacturers have eco-friendly practices, such as water recycling systems and energy-efficient brewing technologies, which reduce environmental impact. In a survey conducted in 2022, 68% of businesses said that sustainability was the main factor when it came to choosing OEM beer services.
With scalability, OEM beer can grow your business. Production by OEMs scales easily from small batch manufacturing to serve a very local market or up for widespread export. One OEM partnership enabled the expansion of production capacity for one European brand from 50,000 to 200,000 liters per month; this has produced a 40% increase in annual revenue for the brand.
OEM beer is also versatile in packaging options, including cans, bottles, and kegs, with customized branding. This will make the product look good on the shelf and more appealing to consumers.
OEM beer will be a perfect fit for those who are ready to join the competitive world of beer cost-efficiently, with customization, scalability, and sustainability. It will allow brands to develop their identity without compromising on the quality of the production.