Breweries across the country are reaching new audiences for their beers, with sales direct from their premises, but how do they develop this as a revenue source? Start-up Co Hop, a fulfilment service, thinks it has the answer.
Once launched, Co Hop will provide third party warehousing as well as a pick and pack service, taking advantage of market leading prices on packaging and UK-wide logistics, due to a pooled effect and economies of scale no individual brewer would be able to access alone.
It says its system is a “win-win”, delivering greater value for the breweries who, in turn, can re-invest to deliver more more sales while they focus resources on what they are good at — brewing beer.
The UK small-pack (bottles and cans) market has seen a 60% increase across traditional and online retail due to the lockdown restrictions that Covid-19 has delivered. Despite lockdown easing, Co Hop believes there has been a shift in how consumers will search, discover and purchase beer.
But for brewers acting alone, the cost of fulfilment is significant. If including packing materials, labour, basic utilities, and servicing costs, as well as small volume shipping fees, most brewers spend 80% more than first thought on delivering every box of their beer to customers.
‘We all want to support our friends in retail’
Co Hop seeks to streamline this service, pooling resource and providing real time savings to brewers, with no increase in cost for the customer. Based on indicative numbers provided by surveyed brewers, Co Hop will offer brewers a near 22% increase in margin by managing packaging, warehousing, and delivery for less than the standard rate most brewers pay to currently ship a case of beer.
Co Hop will also look at business to business solutions and examine its own consumer offering, to compliment the breweries’ own online trading.
Founder David Laird said: “By using Co Hop for B2B sales to bottle shops and bars across the UK we will be able to provide sizable savings for both customers and brewers by accessing our market-leading courier pricing.
“At a time when businesses are struggling and we all want to support our friends in retail, being able to offer them as much as 10% cost reduction, we at Co Hop think this is incredibly important. Co Hop is here to support the craft beer industry now and for a sustainable future.”
To find out more about Co Hop or enquire about partnerships, email info@cohop.co.uk
