Ushering in the Era of Innovative Beverages

In an interview with Food Business Review, Alex Teteris, Roderick Read, Senior Manager of Beverage Innovations at Molson Coors Beverage Company, highlights the latest trends in the beverage space and how it is transforming the way businesses explore innovative options to boost their production, qualiyu, and distribution competencies. 

Could you briefly outline the roles and responsibilities you currently carry out at Molson Coors as the Senior Manager of Beverage Innovations? How was the journey for you before you took up the role? 

Molson Coors underwent reorganization in late 2019 and early 2020, aiming to revitalize the business and transition from a brewing-only company to a more inclusive beverage company. This strategic shift led to significant investment and growth in the product and package innovation teams. As part of this initiative, I joined the team as the leader of beverage development.

My team consists of eight product developers who focus on a range of products, including filters, flavored alcoholic beverages (FABs), non-alcoholic beverages, and various types of beers, both core and craft. Expanding into the non-alcoholic beverage market presented new challenges and learning opportunities. While we were familiar with non-alcoholic beer, the non-alcoholic beverage space is more saturated and requires a greater emphasis on differentiation.

To address these challenges, we actively engage in partnerships. Leveraging our distribution and licensing capabilities, we have access to valuable support and collaboration opportunities. These partnerships are prevalent in the market, as demonstrated by brands like Simply, Topo, and Chico producing alcoholic beverages through collaborations with other companies. Each partnership brings unique perspectives and operational approaches, allowing us to share best practices, improve our processes, and explore better execution, timing, and alignment strategies.

As the beverage industry evolves, with new companies entering the market, there are increasing opportunities for growth and improvement. Our focus is on better meeting customer demands and being more precise in our offerings. With nearly 17 years of experience in the beverage industry, starting from my studies in food science with a brewing emphasis at UC Davis, I have witnessed the complexity that innovation brings to facilities. Balancing conflicting key performance indicators (KPIs) becomes a constant challenge as new products and ingredients are introduced.

Furthermore, as regulations tighten, we must ensure tight control over micro allergens and prioritize the kosher status of Molson Coors products. Maintaining quality and the safety of our employees while incorporating new ingredients adds further complexity to our operations. Meeting and surpassing regulatory standards is of utmost importance, underscoring our commitment to excellence in these areas.

This pace has evolved over the last few years, particularly since coming out of the pandemic. Could you walk me through some of the pain points that you see in the market today?

The beverage industry has undergone significant transformations, and I have had the opportunity to witness the emergence of heavy-flavored malt beverages (FMBS) at the start of my career, marking a crucial milestone. From 2010 to 2020, macro breweries began venturing into the craft beer market, driven by consumer demand and further propelled by the pandemic. This period pushed the boundaries of consumer preferences, resulting in a wide range of offerings. We experienced rapid growth, with the rise of seltzers as a particularly popular category, although their growth rate has moderated more recently.

“While there may not be a one-size-fits-all solution, we are continuously striving for improvement by harnessing technologies like artificial intelligence (AI) to enhance delivery systems and increase the success rate of product development within shorter time frames.”

As we enter 2023, collaborations and partnerships between prominent brands are becoming more prevalent, often involving contract brewing or joint production. An example of this is the partnership between Jack Daniel's and Coca-Cola, which led to the creation of the Jack and Coke product. Such collaborations highlight the blurring of traditional industry boundaries, as it is no longer solely about alcoholic beverages versus non-alcoholic sodas. Even professional groups like the National Society of Beverage Technologists, traditionally focused on the soda industry, are expanding their scope to include alcoholic beverage companies. This convergence provides valuable networking opportunities and shared learning to enhance quality and offerings across the industry.

Consumer demand in a rapidly evolving market is the primary driving force behind this convergence. However, larger companies face challenges in pivoting quickly due to regulatory and bureaucratic factors. In the age of social media, a company or product's success or failure can be determined swiftly, necessitating agile responses to meet consumer needs efficiently. While there may not be a one-size-fits-all solution, we are continuously striving for improvement by harnessing technologies like artificial intelligence (AI) to enhance delivery systems and increase the success rate of product development within shorter time frames.

What would you say are the technology trends that are poised to revolutionize the F&B space in the next 12 to 18 months?

The beverage industry is experiencing ongoing trends, but it is challenging to determine their overall impact as it is yet to be fully realized whether they are positive, negative, or both. One emerging trend is the utilization of artificial intelligence (AI) in the creation of beers. While this approach is relatively new, with AI-generated beers entering the market within the past six months, the actual outcomes and effects are still to be determined. However, AI has the potential to analyze vast amounts of trend data and assist in targeting rapidly evolving consumer preferences.

From a technological perspective, the beverage industry is quite advanced, although there are areas that continue to undergo improvements. Filtration technology, for example, aims to produce cleaner bases and brighter products with reduced impurities. Technological advancements have also resulted in a blurring of product types, with spirits, seltzers, sugar brews, traditional malt-based beverages, and non-alcoholic options gaining popularity among consumers.

One significant challenge faced by the industry is the rapid pace of innovation, with new products being introduced every 12 to 18 months. This fast-paced evolution surpasses the speed of federal regulations, necessitating continuous adaptation and shifts in regulatory frameworks. Some states, such as Utah and Virginia, have already raised concerns regarding flavor categorization and ingredient usage, highlighting the ongoing learning process in regulation. Industry members must engage in open dialogues with legislative bodies to educate them about product composition and the purpose of different components. By fostering understanding, collaborative efforts can be made to establish clearer expectations and standards, benefiting the entire industry.

Maintaining high safety and quality standards is paramount for consumer safety, as well as for the reputation and overall success of companies within the beverage industry. As the industry becomes more interconnected and the lines between different types of beverages blur, it is essential to collectively raise the bar in terms of safety and quality. Rather than solely focusing on competition, the primary goal should be delivering the best products and flavors to consumers. Flavor, as always, remains a crucial factor in consumer preferences, and the skillful execution of flavors will continue to have a significant impact.

What would be your piece of advice for your peers who are aspiring professionals within the space? 

When starting a new company in the beverage industry, one should prioritize leveraging available resources, such as raw materials or ingredient suppliers, especially during the early stages. These suppliers often possess extensive knowledge and experience, some of them have been in the industry for decades or even centuries. Engaging with their marketing teams can provide valuable insights and guidance to newcomers. However, while seeking advice is important, it is equally crucial to stay true to one's vision and make independent decisions. This principle applies to individuals at all levels of the industry. It is vital to understand that flavor development should always prioritize safety, and maintaining a high level of quality will give companies a competitive advantage. Educating oneself and others about relevant regulatory bodies, such as the TTB, FDA, and OSHA, is also necessary. While regulatory compliance may not be the most glamorous aspect, it plays a critical role in ensuring success and career development in all facets of the beverage industry.