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A moving industry
A future picture of the beverage industry in Germany could look like this: The plants will form a complex interplay of production with state-of-the-art information and communication technology. Production will organise itself via digitally networked systems. People, production facilities, logistics as well as products will communicate and cooperate in an interdisciplinary way. The consistent networking of the entire value chain will significantly optimise processes through the analysis and generation of real-time data and make them absolutely transparent.
The transformation process affects large and small
The digital transformation is not only taking hold at large players, small and medium-sized breweries are also setting out on the path. The production processes and the entire value chain are displayed and analysed in real time in an international network using IoT platforms and corresponding software.
The distribution of products is also becoming increasingly networked and digital, keyword Metaverse. Through digitalisation and global networking, a single supplier can potentially radically change entire industries in a short time.
Motivating hidden intrapreneurs
In view of this development, which companies today can still afford to lose the perhaps still hidden intrapreneurs who would have the potential to develop into innovators within the company through entrepreneurial action? For example, through the frustration that can arise from pyramid management? For this reason, more and more companies of different sectors and sizes are opting for a flexible, decentralised and dynamic decision-making structure.
Redesign of sup-areas
If it seems necessary, sub-areas can be made more flexible and dynamic, for example. Development and innovation can lie in the purchase or founding of a structure that is organisationally, spatially and/or personnel separate. Founding or buying a start-up is also an option. Product innovations can often be driven forward more effectively within an independent organisation.
Relevance of start-ups for the beverage industry
Start-ups definitely play an important role in the beverage industry. They are able to bring innovative products and ideas that challenge the status quo of established companies. Despite scarcer resources and experience, start-ups have the advantage that they can often react more flexibly to changing market demands and the target group. Moreover, established companies may not even consider alternative approaches to solving problems.
Cooperation is an advantage, for example because established companies can provide distribution networks for market introduction. In return, start-ups bring an entrepreneurial mindset with more agile and risk-averse actions to the partnership.
Relationship status: difficult?
Start-ups can play an important role for large companies in the beverage industry, but the relationship between start-ups and large companies can vary depending on the specific circumstances.
In some cases, start-ups may be seen as potential competitors by larger companies.
On the other hand, many large companies in the beverage industry actively seek partnerships with start-ups to gain access to new technologies, products and ideas. There is virtually a competition for the best ideas and talent. Agility and innovation can hold immense win-win potential for both sides.
Open up new markets
Partnering with a start-up can also give larger companies access to new markets or customer segments. For example, a start-up may have a strong following in a particular target group or geographical region that a larger company would like to address.
Despite the many potential synergies, there is a clear need for action and still a lot of untapped potential in collaboration: among essential German SMEs, just one third of companies are only in contact with start-ups.
The Drink Innovation Campus (DICA) accelerator programme of the Strascheg Center for Entrepreneurship (SCE) and its ecosystem partners from the beverage industry and academia shows itself as a partner at the various stages of the value chain.
No blind dates
The concrete cooperation usually begins with an initial workshop with the corporate partner in which their corporate development priorities are crystallised. Here, DICA uses both the network of SCE and Munich University of Applied Sciences as well as its more than 30 university partners in the joint international innovation ecosystem association Start for Future to scout for solutions.
Subsequently, the identified start-ups qualify for a shortlist in terms of their solutions. Finally, in consultation with the corporate partner, two or three specific start-ups are invited to get to know each other.
At the so-called matching day, the company and the start-up finally get to know each other personally and deepen their theoretical understanding. Expectations can be aligned and deepened in personal exchange in order to achieve a joint solution.
Strong interest among major players
Particularly on the part of large industrial companies, there is a very strong interest in accelerating innovation. The idea of adding value through co-creation with start-ups and positioning one's own company as modern and innovative - as the big players have been successfully doing for some time now - is slowly penetrating the industry's world of thought.
Current examples from DICA
DICA has realised various projects in different areas in 2022. Examples include Hassia's blockchain technology coup with Connecting Food, as well as the Bitburger Brewery Group's collaboration with Knusperhalm and Bitburger's strategic partnership with the reusable start-up Vytal. Another DICA partner is Franken Brunnen, which has established the high-speed dosing system of the start-up KTW Technology at its subsidiary Romina Mineralbrunnen.
The current DICA batch of 2023 also included exciting and promising start-ups. Four start-ups prevailed in a pitch to the DICA partners (Inside, Ardagh, drinktec, Bitburger, Franken Brunnen): the special organic iced tea Yalité, inspired by the culture of northern Mexico, Digilo, a Bluetooth bracelet to simplify warehouse logistics, Smart-QR-Tag for QR marketing and the investment platform Spiritory for the trade of high-end spirits and wines.
Furthermore, DICA offers access to innovations in the area of supply chain optimisation and savings in the production process. Examples of recent years include food tracing via blockchain at Bionade, intelligent tracking of barrels by the Smart Container Company, a digital twin for intralogistics by Digilo and predictive maintenance platforms for process flows by the start-up Flowsight, as well as KTW Technology, which transfers technologies from space travel to reduce emissions and energy consumption.
Important future topic for the industry: circular economy
One of the most pressing issues in the beverage industry, the circular economy, is specifically addressed by "DICA Circular". The programme brings together entrepreneurial students, start-ups, academics and beverage industry leaders to develop innovative approaches to the circular economy in the industry. This initiative also offers a dialogue with regard to the circular economy between manufacturers, logisticians, politicians, GeMeMa (Society for Reusable Management) and start-ups, among others. In this way, product innovations and new system offers such as Relevo (smart deposit-free reusable to-go solutions in the gastronomy sector) or FairCup have already been created in the past.