Beer companies and startups: from drinking buddies to business partners

Photo credit: James Lee

Startups and beer go together like camels and the desert; you don’t find one without the other. While startups’ relationship with beers has been one of casual consumption on a Friday night (or even earlier in the week if we’re to be honest), this is changing.

More beverage firms are jumping into the startup scene, looking at how smaller, nimbler, and legacy-free companies can solve problems that have plagued the industry for years. Problems to do with improving the beer drinking experience, making it more convenient to shop for beer, and, most importantly, how to promote responsible drinking.

Budweiser has been increasingly involved in the the startup scene for a few years now, conducting hackathons, including its Dream Brewery Hackathon at The Hub in Singapore last year. In 2016, it’ll take things a step further by conducting a Pitch Day on February 18, also organised by The Hub Singapore. The pitch day is centered around these very same topics, as the company takes steps into the 21st century.

It’s a unique strategy for alcohol companies; tapping into the startup ecosystem by partnering with organizations like The Hub, who are able to provide them with vital connections in this space through its Hub Singapore Corporate Program. The Hub provides an easier entry point for companies like AB InBev to enter a space that has, for the longest time, been foreign ground. Much better to partner with an established and integral ally than to go it alone.

AB InBev (Budweiser’s parent company) isn’t the only beverage maker to recognize the benefits of partnering with established entities in the startup ecosystem. Its biggest competitor, Diageo (makers of Guinness, Johnnie Walker, and Smirnoff, to name a few) has partnered with Distill Ventures to tap into the growing startup market to find the world’s next favorite brew.

Most agree that the number one disruptive startup influence in the brewing industry is the sudden explosion of craft breweries. And Distill Ventures’ scope is focused exactly on that, attracting and supporting entrepreneurs who are creating their own successful brew. Budweiser’s ambition is much broader. Through its hackathons and pitch day, the company is looking to bring more startups into its space, to solve its own problems without having to look outside for help. It’s a grand scheme of bringing things in-house rather than outsourcing, and Singapore and Southeast Asia is its next breeding ground.

Venture capitalists want a cold pint too

Photo credit: OTA Photos

The brewing industry has been a particularly traditional one for centuries, and with increased consolidation over the last few years, it might not seem like the most friendly place for startups. The numbers tell a different story.

VCs have invested close to US$100 million in alcohol-related startups in 2014, and that number is expected to rise significantly in the coming years.

The most obvious investment is in delivery, building on the growing last-mile delivery market that has expanded across Asia. Here are a few alcohol-related startups that are making waves.

BottlesXO wants to deliver wine to you in an hour

How BottlesXO works.

Shanghai-based BottlesXO has a very simple solution: to deliver wine to you within the hour. At a cheaper cost. From your phone.

Sounds too good to be true, but the startup has already netted US$1.7 million in series A funding (as per Tech in Asia’s own database). The story is one that is very familiar; after having moved to China from Europe, co-founder Thilo Fuchs found wine in Shanghai to be too expensive, difficult to buy, and just not good enough. This startup was founded as a solution to a personal problem, and is now delivering European wine in Shanghai, Suzhou, and Hong Kong.

And, in case you’re looking for something more, you can become a member of the BottleXO community and get free tasting sessions.

Letsee is a portable wiki for your beer

How Letsee works

Korean app Letsee has a new trick: it uses your smartphone’s camera to scan the labels and shapes of beer bottles and cans to bring up information about the beer, including reviews, on your screen. Now you can see what you’re drinking, and whether it’s any good, through crowdsourced reviews.

Hold up your camera to a bottle or can, and you should see all kinds of information, and, if you fancy, buy whatever you’re looking at within the app. There’s even a space where you can add in products not yet on the app. The company is still building out its database, and its hard at work adding more beer to its inventory.

Weissbeerger ensures you never run out of beer

This Tel-Aviv based startup makes “smart taps” and “connected bars”. It helps bars and breweries know when taps are running dry by crunching real-time data and analytics, so that a customer looking for a cool pint is never thirsty.

With a total disclosed funding of US$5 million, the company is putting big data into each pint of beer.

Startups like these are bringing the brewing industry into the 21st century. Not just content with making newer brews and flavors, they are changing how your favourite pint is delivered. Ideas such as these are what events like the Budweiser Dream Brewery Pitch Day is looking for, to help connect the latest problem solving tech with an industry that takes pride in its traditions.

The Hub is one of the leading bridges between corporates and startups in Asia. Its corporate programs enable forward-thinking companies to directly and effectively engage with top startups, techies and entrepreneurs for innovation and impact. The Hub facilitates collaborations that provide real benefits for the startup ecosystem. The Hub’s corporate program enables forward-thinking companies to directly and effectively engage with top startups, techies and entrepreneurs for innovation and impact. We facilitate collaborations that provide real benefits for the startup ecosystem.

ABInBev’s Budweiser Dream Brewery pitch day will be on February 18th, 2016. It will provide innovators with the dream opportunity to get funding, mentorship and business opportunities from one of the world’s top 5 consumer products companies. The deadline for applications is approaching so click here to apply now!