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have over 20 years of experience in AB InBevMore, Lucas Herskowicz is leading the transformation of how beer is sold to consumers, making it as easy and affordable to order online as pizza.
ABInBev’s Zé Delivery is an on-demand delivery service in Brazil, and TaDa Delivery is offered in other regions, currently primarily in Latin America and Africa. These brands deliver cold beer within 30 minutes at supermarket prices.
“Our proposition for consumers is to have a cold beer in 30 minutes or less at supermarket prices,” says Herscovici. “Similarly, he can order a pizza from anywhere in the world within 30 minutes. If pizza can do it, why can’t beer? increase.”
In addition, the brand has Perfect Draft. It’s essentially an espresso bar for a beer machine, allowing consumers to purchase the machine, store it at home, and order kegs for delivery to replenish their beer supply. There are more bars in European homes than there are in one,” says Herscovici. “This is a great premium experience that brings a lot of joy and entertainment to consumers.”
As Global Chief Direct to Consumer Officer Herscovici believes that since May last year, the initiative has been based on the company’s mission to ‘create the future with more cheers’. “DTC helps provide that by giving consumers access to an enjoyable drinking experience,” he says. “We plan to expand this even further. People enjoy our products when they have barbecues or watch soccer games. We know we can use to make these experiences even better.”
ABInBev’s DTC services are present in over 70 markets. Last year, ABInBev’s DTC business counted over 69 million online orders, making him $500 million in net revenue through digital channels. Overall, the beer category has seen sales slow due to inflation, but the category is resilient and profitable, with much of this growth occurring in developing markets overseen by DTC and Herscovici, said Herscovici. says.
“We had record volume growth with volume growth of 2.3% and net sales growth of 11.2%,” he explains. “We are showing growth in more than 60% of the markets in which we operate. , our company’s DTC products have contributed to that growth.”
These products rely on ABInBev’s extensive logistics network, are present in hundreds of markets, and have relationships with over 6 million retailers in those markets. Herscovici will be speaking at his Brand Innovators VIP Experience at Topgolf on his Shoptalk on March 27th. This interview has been edited for length and clarity.
What are your thoughts on digital transformation?
We have a very clear strategy. The first pillar leads the category. The second pillar, digitizing and monetizing the ecosystem, is helping drive this digital transformation. His second pillar of our strategy has two major propositions. One is DTC. What helps us drive change and connect with the nearly 2 billion consumers who already buy our products. We want to give them a fun experience by solving their pain points. I think. This allows you to grow your category more effectively by developing opportunities.
How do you work with retail partners?
Brazil has a pilot rewards program that allows consumers to use QR codes on bottles. Buy a bottle with a QR code and scan it to get points. These points can actually be redeemed at the bar. So you can visit our retail partners. Also, more than 35% of his consumers want to redeem at the bar. This is a great example of how we can now connect the online and offline worlds and increase sales for our partners. This is a dream come true. As a business, you can see the buying behavior of the same consumer when they buy online and when they buy offline. This will give you a lot of insight on how to grow your category better.
From a partnership perspective, there are 40,000 couriers working for retail partners who deliver products. This is another thing we bring to our business. Another important point to point out is that our platform is open. So we don’t just sell our products, we sell our competitors’ products, we sell snacks, ice, limes, charcoal, whatever is convenient for us to make a better proposition for our consumers. always prides itself on doing what is best for the consumer.
How is digitization changing categories?
To really drive innovation into this category, there are three areas where we are innovating. The first is sustainability. We may be the only company in this field that can provide consumers with returnable bottles. why? Drivers can deliver orders and pick up returnable bottles at the same time. Over 40% of his sales on Zé and TaDa are returnable his packages. The competition does not have returnable packages. We know this is better for the environment and better for consumers because it is more affordable. It’s helpful.
Another innovation is partnerships with other companies. For example, we recently partnered with Meta. Carnival promoted the app on his WhatsApp. CTR was 22%. We are always pushing the boundaries of what we can do.
The final area is domestic consumption, a trend that was already on the rise before COVID and accelerated during the pandemic. E-commerce sales worldwide are expected to grow by more than $10 billion over the next five years. This helps increase the relevance of beer within the e-commerce space and helps drive penetration of online beer to drive category growth.
Are there any campaigns you are currently working on?
Last week we did a campaign with a Brazilian football club. To become a member you have to pay a monthly membership fee to be able to go to see the games in Latin America. We ran a campaign to get cash back on beer that can be purchased locally or by delivery. This is just one example of the benefits we offer our consumers. If you’re already a fan of the club, you can use half of that membership fee to buy the beer you’ve already purchased. It generated a lot of awareness and buzz across the country.
Another campaign we are currently working on is a Colombian music festival called Stereo Picnic. He is one of the biggest music festivals like Lollapalooza. You can use TaDa to get free beer at festivals. We know it’s not easy to get beer at festivals. This is just one example of how convenience can be brought into the experience.
A third example is for PerfectDraft. Since April he’s running a campaign called Spring Rewards, so in June he’s offering additional discounts to consumers who buy three to six barrels to stimulate demand there. . We recently launched a big innovation, Corona Zero. Corona is one of our global brands and it continues to grow and we have a lot going on. Now we offer zero alcohol in Europe and it’s causing a lot of buzz .
Is there a growing demand for non-alcoholic beer?
yes. We know health and wellness are trending post-COVID. This accelerated. Sales of non-alcoholic beer are growing around the world. It even started in Europe. We’re seeing that happening in the US and Latin America. Budweiser Zero and Corona Zero. We believe this gives consumers choice. It promotes moderation. It is seen as a healthier proposition and we are very proud to be revitalizing non-alcoholic brands around the world.
What trends do you think we’ll see this year?
One is the continued growth of e-commerce and home consumption. Pre-COVID, we saw an acceleration during COVID, but now e-commerce is back to growth similar to what existed pre-COVID, but on a higher base. I’m here. The second trend is convenience. This he accelerated due to COVID. You can see that it continues to grow. Brazil recently launched a vending machine called Zip Express. For example, if you walk into the lobby of your apartment, you can get cold products at the best price without going anywhere. This is an example of breakthrough technology. It brings convenience to your home without having to wait for someone to deliver it. A third trend, like the Corona Zero example, is health and wellness.
A fourth trend is a return to experiential events. The carnival just took place a few weeks ago and had a record turnout. Lollapalooza was held in Argentina last weekend. Many people enjoy these fun drinks with friends and have a good time.We have been revitalizing these things for decades and now these festivals There is a great opportunity to integrate his DTC proposal into .
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