How is AI transforming the drinks industry?

AI is revolutionising the drinks industry by improving supply chain efficiency, enhancing product development, and enabling data-driven marketing strategies. It uses predictive analytics to optimise production processes, reduce waste, and forecast consumer demand. AI also helps in personalising product offerings based on consumer preferences and automating repetitive tasks, leading to increased productivity and operational efficiency.

What are common AI applications in the drinks sector?

Common applications include demand forecasting, inventory management, quality control, and product innovation. AI is used to analyse large datasets to identify trends, optimise production schedules, and develop new products that align with changing consumer tastes. In marketing, AI tools help craft personalised campaigns and predict consumer behaviour.

How can AI support sustainability in the drinks industry?

AI supports sustainability by optimising resource usage, reducing waste, and enhancing supply chain transparency. Through data analysis, AI can help companies monitor energy consumption, improve packaging design, and implement waste-reduction strategies. AI’s ability to streamline operations also minimises the environmental impact of production and logistics.

What are the challenges of AI adoption in the drinks industry?

Challenges include high implementation costs, the need for skilled personnel, and data privacy concerns. Integrating AI with existing systems can be complex, and maintaining data accuracy is crucial for effective AI outputs. Companies must also address ethical considerations related to automated decision-making.

What is the future of AI in the drinks industry?

The future of AI in the drinks industry involves more advanced applications like digital tasting, real-time consumer feedback analysis, and automated quality control. AI will continue to evolve, driving innovations in product development, personalised consumer experiences, and operational efficiency. As technology advances, AI will play a key role in helping brands remain competitive in an increasingly data-driven market.

Just Drinks

Diageo ‘abandons Pimm’s sale after failing to reach deal’

Earlier this year, Diageo did sell two brands – Pampero rum and fruit-flavoured liqueur Safari.

Diageo has allegedly called off the sale of its Pimm’s gin-based liqueur after failing to secure an agreement with potential buyers.

Sky News today (3 October) reported the Tanqueray distiller has abandoned auctioning off the British brand, a process which was said to have started earlier this year.

It was unclear as to why neither Diageo nor the potential purchasers in question could not reach an agreement.

Diageo declined to comment on the news when approached by Just Drinks.

In February, the broadcaster also reported the London-listed group had allegedly hired bankers at Rothschild to explore the sales of Pimm’s alongside two other brands: Pampero rum and Safari fruit-flavoured liqueur.

At the time, Sky News added industry sources said Pimm’s would “likely to draw interest from other drinks companies as well as financial investors”.

The disposals of Pampero and Safari was later announced by the Guinness stout owner in July. The former was handed off to Gruppo Montenegro, while the latter was sold to Portuguese drinks company Casa Redondo.

Financial details were not given for either transaction.

Commenting on Safari at the time, John Kennedy, the president of Diageo’s Europe operations, said the sale of the brand “reflects Diageo’s commitment to delivering consistent growth and value to shareholders”.

He added the move would enable the company “to further concentrate on our core areas of strength, including Tequila and whisk(e)y”.

Kennedy made a similar statement later in July on the subsequent sale of Venezualan Pampero, adding the move “demonstrates our disciplined and strategic approach to capital allocation”.

Speaking to journalists at the company’s London headquarters following the release of Diageo's full-year results at the end of July, CEO Debra Crew said the sales of Pampero and Safari were made as the group looked to home in on its higher-priced brands more broadly.

She added: “It's not just about today, it really is thinking about the future, because there is kind of a sweet spot, and when others will want to buy the brand for a good price and it's not as core to us, it just benefits both sides.”

Crew declined to disclose at the time whether a sale of Pimm’s was on the cards.