Brew Talks Denver 2021 CBC: Exclusive Interview with OI Standing Out Sustainability

Speaker 1 [00:14] Hey, everyone. We hope you're enjoying our special Brewals program here at the Craft Brewers Conference in Denver. We're certainly excited to be back here on the road. But right now, we've got a special interview with one of our presenting sponsors, OI. So, joining us right now are Tim Connors, managing director for North America, and Lorena Alencar, the sales director for North American Beer. Tim and Lorena, thanks for being here and thanks for supporting Brewtox.

Speaker 2 [00:44] Thanks for having us. Thank you.

Speaker 1 [00:46] We're, we're psyched to have you here, and Tim, I'm sure most everyone in the industry knows who OI is, but for those who aren't in the know, give us an idea of who OI is, what you do, and what y'all are, are believe in.

Speaker 2 [01:02] Sure, sure. Well, I mean, to put it very simply. We're in the glass container business, right? And we're very proud to be in the glass container business, and it's all we do, right? We, we, we are here to provide solutions for our customers using our glass package overall. So when we think about our vision for our company, um, it's, it's relatively straightforward, right? We want to be the most innovative company. We want to be the most sustainable company, and we want to be the chosen. Supplier for brand building packaging overall, right? And so those are big words, of course, but it's really foundational for us to tell the brand story for our, for our customers overall. So when we think back to the word innovation, Just a little bit on that, right? It's part of our DNA. If we go back, our OI has been here for over 100 years, right? And it was founded by Michael J. Owens. Who came up with probably the most innovative breakthrough disruptive technology that completely revolutionized glass containers, right? And he founded the company based on that. And so that is part of us, right? That is part of our DNA. We're always looking for those opportunities to be disruptive, to be challenging, to bring new products to life, whether that's in process or in product. And obviously product's very important for us as we think about opportunities with, with, with our customers. Um, so what do we believe in, right? Three basic tenets of what we believe in. First off, our package can tell the brand story, and it has a very unique characteristic. And we've done a lot of work on this. We've gone into various neurosciences and research and how consumers buy things and make decisions and There's a lot of work that we can work with with our customers on that, and we believe we have a great package to tell that story overall. Obviously it's a very premium package, but we think that's a great attribute of the glass container package. Secondly, is, and this, this goes as a given, but it's important to say our package does not interfere with the brand. Right, we don't have any liners. We don't have any materials. It is basically 4 ingredients. Very basic ingredients that creates an odorless, pure, clean package for the brand to be delivered to the consumer, and that goes without saying, sort of, but we're really the only package that can do that, right, without any disruption to the brand itself. And then thirdly, and, and, and obviously we'll talk a bit more about this is I'm sure, but it's the sustainability angle of our business, recyclability, right? It is not well known, but it needs to be well known. A glass container can last for the next 1000 years. And I don't think that quite resonates with people, but ultimately a beverage bottle we're drinking today can be recycled over and over and over again, never losing their attributes, never losing the product. That's an important thing for people to know, and we're trying to get out there and make sure that's understood well in the world of sustainability. Um, that's a very important thing that we believe in.

Speaker 1 [04:16] Tim, your passion for glass, it pops off the screen.

Speaker 2 [04:20] Good, good, I'm glad. I, I have it, right? It's a, it's a very important product in our world.

Speaker 1 [04:26] Yeah. Lorena, we hear regularly from suppliers about the supply chain crunches that are out there. I mean, we also hear from retailers and wholesalers about those issues as well. So, how can OI help fill some of those gaps?

Speaker 3 [04:43] So, it's funny you ask because I think speaking over the years, I think we're very confident to say that we have 10+ years of exclusive partnership with major brewers. And to me that says something about our commitment to our customers, but also that they have been on this journey with us and they, they put their trust in, in our work, right? So basically, we're very customer-focused, it's one of our core values. We, we instill that kind of culture into, you know, the sales team as well as all the team throughout all functions in within OI and I think that builds a strong tie between OI and customers. Now, because of that history of being able to supply them for so long, I would say that marriage that we've been for the long term. I think our sales team as well as the craft, we both have deep understanding of each other, right? So, market and their unique needs uh when it comes to uh navigating complex supply situations, right? So, as an example, when I started to lead the category, it was just before we, the pandemic hit in 2020, and as for all of us, you know, lots have changed in the market and, and, and we're hearing about headaches, about supply and things like that, but I think I must say we were successful to get ourselves quickly together to make very difficult decisions, and we continue to be connected with our customers, keeping communication flowing even from our home. So throughout the whole time, there was basically a lot of communication. Now, in March and April when this happened in 2020, I know I'm going back a little bit in history, but I think it's important to note, uh, we had to do some line time and Everyone, when everybody was faced with the unknown, right? And how do we get back together to things to normality, and we're very quick, 4 months after to bring, you know, a furnace back in Texas, for example, and to be able to adapt as we're coming out of the storm. So, Uh, as we saw things pick up, I think we were able to focus a little bit more, you know, working from home with our customers to improve our process, and we did. So planning and forecast accuracy in this category has been the benchmark to, uh, due to the long-term partnerships we have, and I think we have clear in our heads that we need to go beyond a little bit understanding just class purchase, right, and understanding the market dynamics and what our customers need. Now, in 2021, It started a bit slow, but overall we kept up with the changes as well in demand. And the important thing to note is that OI has 18 plants in North America. Um, we have a vast global footprint, as Tim says, right? Uh, we, we go back way, way back, and we have around, I think 72 plants in, in the world and therefore, the solutions for beer and the assortment of portfolio does bring a sense of security, flexibility, and contingencies that we can bring to the customers. So we operate in a global mindset as well and you, we can utilize those resources for our, you know, around the world as needed. So I would say. You know, lots of elements, but connectivity for sure, uh, the historical and long-lasting relationships that we have built and we continue to have, we continue to lead this, um, glass chair for glass and beer, so it says something about us and our ability to supply, and of course, customer service, customer focus, and then of course, our footprint, which helps, you know, our ability to, you know, Remove the headaches and the challenges we have together.

Speaker 1 [08:26] We know that there are now more than 8800 breweries out there in the US. It's tough to stand out when there are that many competitors out there. How can OI help those breweries stand out?

Speaker 3 [08:40] So, as Tim was saying, right, about uh how we are so focused on innovation, right? You have, I, I think everybody knows this, but we have like 3 to 7 seconds to basically make an impression on the shelf. And as we do, uh, most of the purchase decisions are made in the store. And so there's hundreds, hundreds of decisions consumers are making unconsciously and how do we stand out, and it's through innovation, right? We, we did partner with a company a while back about uh who has done extensive work around neuroscience and biology, um, because of all these emotions faced with the unconscious purchasing. And so, we basically use that to leverage this data and drive the latest collection, which you're gonna see at our booth. So please come see us, 3251. I wanna see you there and um just to review what we have put together as a, it's called, it's called the Catalyst Collection. And what it does, it's supposed to spark an emotional connection and it's intended to generate brand loyalty um to our customers. So hopefully you guys will like it and see it. Now, as part of the collection, we also have a, you know, a brand new container, we're revealing container. It's a wide mouth, holds carbonation. Um, so, uh, we have been bringing this to our, to our craft partners, you know, uh, you know, firsthand before we actually are doing this in the booth, but I want to make sure you guys are aware of this, and, and this is one of the things we do. Now, the other two pieces that we, we really work on to be able to help them and stand out is, one is Gaza advocacy Campaign, we're working uh with an agency to, you know, to focus on end consumer. And the other one, I think it's very important for everybody that doesn't know why is value selling, which is basically a process um because we have a marketing, um, a very strong marketing team inside and a design team in-house as well. So, we basically use global team and local experts uh to provide cross-category analysis or even cross-country analysis about beer. So if our craft brewers are always asking, hey, what's going on in Europe, what's What's going on in Latin America, what's going on in Mexico, how do we drive differentiation, so we do have that information and resources available for the, for our customers and partners and then on top of it, we have an in-house design studio with engineering concept design. Which I, uh, which I call it, you know, we're like a mini marketing firm for those craft brewers that don't have the ability to actually source out an agency. So, we, we go a little bit beyond and just selling, selling catalog out of a glass. We want to be part of, you know, our, our customers' ideas, pipelines and what pain, pain points we can bring. But I think it's also important to note that we have a dedicated commercial activation manager to really drive, uh, you know, new product development and like Tim said, market communication. We want to be able to tell the story of glass to our customers. Now, this is offered to, to our customers as a resource, I mean, as a resource available for those who buy OI Glass. And um we also enjoy working with customers, making these resources available to design, to develop new solutions, however, we like also to create minimal disruption to their fuel lines because that's usually the case with craft today. How do I make sure I differentiate myself but there's minimal disruption to my line, right? So those Those are the things we are working on and I, and I think that my customers can attest to these things that I just talked about, but it, I would be glad to talk to you more about in our booth at 3251, I think that's the number.

Speaker 1 [12:45] I appreciate the hard sell, so you heard her. Go, go visit their booth. But, but before we send you to their booth, Tim, we've got one last question for you. We've seen a lot of brewers, uh, institute carbon negative initiatives, uh, sustainability is huge with craft brewers. How can OI help with those efforts?

Speaker 2 [13:07] Yeah, and, and just one further plug based on Lorena, we're going to have multiple sites of where to actually try the drink tainer out, right? So we're very excited about that project. It's a differentiated product, so I'm sure you can have multiple beers utilizing the drink tainer technology throughout your stay at the craft brewers conference. You know, sustainability is so important right now, right? It, it's always been important, but in the time we are today with everything happening in the world, it, it's, it's got to be front and center of, of a lot of decisions consumers make and companies make. So, I think there's a lot of ways we can partner together to help. Again, I go back to what I said earlier about the glass package itself, right? It is infinitely recyclable. Um, so we are working on a lot of grassroots. The, the biggest challenge, right, in this whole thing is getting the glass back to the furnace, right? Um, that has always been a challenge. Some parts of the world, they do a great, a lot of government legislation gets involved with that, so maybe that's not so great, but in any event, We can get up to 70, 80, 90% recycled content utilization in our furnaces. And that's a great, that's a great outcome. It's great for energy. It's great for the carbon footprint. It's great for all of those things. Now, the question is how do we get it back to our furnaces overall, and we've been partnering with a lot of what I would say grassroots type of campaign things to generate momentum. For example, we have a, we have a new initiative out there called Glass for Good. And it was again a grassroots campaign to get local people around our operations more or less to bring the glass directly to our factory. And by bringing it directly to our factory, what we do is we will promote that by contributing to charities, local charities in the area, and it's based on some sort of, you know, factor of weight and consumption and stuff like that. What that does is generate good momentum, right? It's good for the, it's good for the community. It's good for the employees. It's good for for sustainability because it's encouraging recycling because in a lot of areas, and it's quite unfortunate, a lot of areas with commingled recycling and government intervention, they've taken out glass out of the recycling stream or if glass is in the recycling stream, it's actually still going to landfill and people don't even realize it. So this is a direct way of getting the glass back into the furnaces. Another way we can partner with every single customer, we do this a lot, and we don't do it enough though, is, is closed loop. And basically, you know, any craft brewer that has a, that has a, you know, waste, has glass waste, they may throw it into the recycling bin or into a, into a garbage bin. But you still don't know if that's truly getting recycled, where we would love to partner with every single craft brewer and just say, hey, let's work out the logistics of getting it directly back into our furnaces, because what that can create is further work in terms of increasing our recycled content, and again, that has a sustainability component with that. So we're working very hard on those grassroots campaigns to try to increase the throughput of recycled content, which is very important, but, but more importantly is we're telling our story more, right? And I think that's, that's very important as well. Um, I don't think, um, enough consumers understand that glass is 100% recycled. It can last forever. Um, and we need to get that message out, and I think as Lorraina discussed with class advocacy and things like that, we're really starting to promote that as well. So there's a lot of different ways that we can help the sustainability journey with with our craft brewers, and we would love to partner further on those, on those kind of grassroots opportunities to make things better because it's going to be a part of our lives forever.

Speaker 1 [17:02] So, Tim and Lorena, one last time, where can the folks visit you at the Craft Brewers conference and how can they get in touch with you if they're not?

Speaker 3 [17:10] Well, they, like I said, they can definitely come see us at 3251 or that's our booth number. Please come see us and then, of course, um you can contact our website, but there's also gonna be the information down here for anybody who wants to get glass right away.

Speaker 1 [17:27] Tim Lorena, we really appreciate the uh support from OI for Bretox. We couldn't do it without you all. And, you know, we appreciate everybody viewing this, so, Hope you enjoy the rest of the program.