Unsaleable Beverage Disposal

Unsaleable Beverage Disposal is Inevitable – Especially Now.

Because of COVID-19, brewers and distributors are currently facing a unique set of financial and operational challenges. Among these is developing a plan for the timely disposal of unsaleable beverages.

Not only does your beverage disposal plan have to be lawful and eco-friendly, but you must follow complex steps in order to reclaim valuable taxes and duties. This is especially important in the current fiscal year, when you will need those credits most.

Considerations to plan and execute a successful project

What decisions must be made? What resources and vendor relationships are required? Do you have the in-house resources to manage the project – or do you need to outsource? Where do you start?

Here is a basic list of things to consider when planning and executing a successful beverage disposal project:

  • This project requires dedicated labor from experts who understand the legal and logistical nuances of a disposal project.
  • Be armed with municipal, county, state and federal regulations regarding proper disposal methods to avoid the risk of sanctions, fines and/or penalties.
  • There needs to be an accurate assessment and accounting from your wholesaler network of product quantities, locations and package styles (cans, bottles or kegs).
  • Do you have an existing network of disposal facilities – or will you need to start from scratch with our good friend Google?
  • Not all disposal facilities are equal. Some facilities are certified to destroy product, while others are experts in transforming (repurposing) products. Which process aligns with your corporate values?
  • Do the vendors on your list have current legal certifications, project capacity and capabilities? Be wary that there are opportunists who would be happy to take illegal advantage of people during a crisis recovery.
  • Can the disposal vendor properly decant kegs? Most vendors are not set up to perform this service.
  • Will your disposal facility vendor inform you of potential insurance, tax or duty reimbursements and then provide the appropriate documentation you will need upon project completion?
  • You will want to map vendor locations in relation to where the product is located to design a strategic and efficient plan.
  • Be prepared to manage multiple vendor relationships from contract quotes though completion. Part of that vendor accountability should include security measures to protect your brand reputation while products are outside of your custody.
  • There will need to be a storage contingency plan, should capacity constraints cause backlogs, which should be expected under the current conditions. There are 1 million+ barrels of product that require proper disposal because of COVID-19. Where will your project fit into this?

There are experts who can help

Of course, with all of the other recovery decisions you need to make right now, this is quite a lot to take on. We are happy to tell you, there is good news.

There are experts who plan and execute projects like this on a regular basis for brewers and distributors. Avoid the costly pitfalls and risks of “doing it yourself” by outsourcing the project to experts.

What to look for when selecting a partner

When selecting a partner, it is critical to find one with experience, a scalable solution (from 1 to over 1,000,000 cases), industry and regulatory knowledge and a nationwide network of facilities that will manage the project efficiently and professionally. That’s where Hillebrand’s EcoBev beverage disposal team comes in.

Remember, you can reach out any time if you have questions or requests. Let’s all get through this thing together.

Reach out to a Hillebrand BevPro for more information about product disposal.

Read more about Hillebrand’s EcoBev solution.