{"id":481972,"date":"2021-12-06T06:42:27","date_gmt":"2021-12-06T14:42:27","guid":{"rendered":"https:\/\/www.esri.com\/about\/newsroom\/?post_type=wherenext&p=481972"},"modified":"2021-12-08T14:36:44","modified_gmt":"2021-12-08T22:36:44","slug":"distributing-beer-beverages-and-industry-changing-innovation","status":"publish","type":"wherenext","link":"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/distributing-beer-beverages-and-industry-changing-innovation","title":{"rendered":"Distributing Beer, Beverages, and Industry-Changing Innovation"},"author":501,"featured_media":0,"parent":0,"menu_order":0,"template":"","format":"standard","meta":{"_acf_changed":false,"sync_status":"","episode_type":"","audio_file":"","transcript_file":"","podmotor_file_id":"","podmotor_episode_id":"","castos_file_data":"","cover_image":"","cover_image_id":"","duration":"","filesize":"","filesize_raw":"","date_recorded":"","explicit":"","block":"","itunes_episode_number":"","itunes_title":"","itunes_season_number":"","itunes_episode_type":"","_links_to":"","_links_to_target":""},"categories":[1001,381312],"tags":[477032,477042,1321,1331],"department":[476812],"wherenext-category":[],"industry":[],"class_list":["post-481972","wherenext","type-wherenext","status-publish","format-standard","hentry","category-commercial","category-cxo-priorities","tag-customer-analysis","tag-data-driven-business","tag-innovation","tag-supply-chain","department-business-growth"],"acf":{"short_description":"With an elegant blend of location data and GIS analytics, Columbia Distributing changed the game on truckside advertising.","pdf":{"host_remotely":false,"file":"","file_url":""},"flexible_content":[{"acf_fc_layout":"content","content":"On an eight-lane highway between Tacoma and Seattle, a data-driven innovation is rolling north, affixed to the sides of an 18-wheeler.\r\n\r\nEmpowered by geographic awareness<\/a>, advanced analytics, and demographic insight, companies are breaking out of traditional business lanes to deliver new services to customers. Among them is the nation\u2019s third-largest beverage distributor, which is pioneering a new advertising program on the highways of Washington, Oregon, and Northern California."},{"acf_fc_layout":"sidebar","layout":"standard","image_reference":null,"image_reference_figure":"","spotlight_image":null,"section_title":"","spotlight_name":"","position":"Left","content":"Article snapshot:<\/strong> Columbia Distributing, the country\u2019s third-largest beverage distributor, used creative thinking and geospatial technology to shake up the distribution industry, launching an advertising service coming soon to a highway near you.","snippet":""},{"acf_fc_layout":"content","content":"\u201cWe like to be first to market on new things,\u201d says Koji Pupo, vice president of business development at Columbia Distributing. \u201cTypically, if you're not the first, you're always trying to catch up.\u201d\r\n\r\nThat may be especially true in the beverage industry, where consumer tastes can change rapidly, and manufacturers and distributors must continuously track and make sense of data to keep up. From 2017 to 2021, hard seltzers<\/a> rocketed from near nonexistence to $4 billion in sales\u20145 percent of the alcohol market\u2014a run-up that took some brands by surprise. Now, as seltzer sales cool, ready-to-drink cocktails and nonalcoholic beers are on the rise.\r\n\r\nBeverage manufacturers design marketing campaigns to address those changing tastes. But until 2021, the advertising space on the sides of Columbia Distributing\u2019s trucks\u2014much like the rest of the industry\u2019s\u2014was built for longevity, not changing tastes.\r\n\r\nThen Columbia\u2019s executives took a risk.\r\n\r\nColumbia Distributing Seeks a New Program to Match the Pace of Business \u00a0<\/strong>\r\n\r\nFounded in 1935, Columbia Distributing delivers 260 alcoholic brands and more than 50 nonalcoholic brands to restaurants, retailers, bars, and entertainment venues in the Pacific Northwest. For decades, Columbia and other distributors had \u201cwrapped\u201d their trucks in vinyl ads easily visible to drivers and pedestrians. One study found that viewers were more likely to recall this kind of advertising<\/a> than they were to remember stationary messages."},{"acf_fc_layout":"form","form_type":"aside","form_position":"Right","form_title":"THE ESRI BRIEF","form_desc":"A biweekly email connecting business leaders and innovators with thought-provoking articles on location intelligence and emerging tech trends.","form_button_label":"Sign up now","form_content":"https:\/\/go.pardot.com\/l\/82202\/2017-10-12\/jw1bmb","form_tag":"low-commitment-form\/sign-up-form"},{"acf_fc_layout":"content","content":"In most cases, those ads stayed on the vehicle as long as it was in service.\r\n\r\n\u201cOur supplier partners would have to choose a graphic that was going to stay on the truck for five to seven years,\u201d Pupo says. \u201cYou had to be very safe with the messaging that you were\u00a0 putting on the sides of the trucks because you had to make sure that it was going to be applicable for the time frame that it's on.\u201d\r\n\r\nColumbia\u2019s executives envisioned an advertising program that would match the pace of modern business and the mercurial tastes of consumers<\/a>. It would offer two new benefits to beverage manufacturers: the versatility to change ad campaigns more often, and the visibility to know how many people were seeing their ads. Marketers have come to expect both features in today\u2019s digital economy, with the popularity of pay-per-click programs that deliver metrics like click-through-rates, impressions, and more.\r\n\r\nVersatility wasn\u2019t hard to come by. Columbia used Epic Worldwide\u2019s KWIK ZIP system to affix special frames to the sides of trucks, allowing ad displays to be installed and removed with only minor downtime. Columbia\u2019s second goal\u2014providing visibility into the audience for each ad\u2014proved more elusive.\r\n

An Innovation in Need of Data <\/strong><\/h3>\r\nEach Columbia truck covers a dedicated route averaging 40 miles, passing an unknown number of drivers, pedestrians, and businesses along the way. To gauge that number, Pupo\u2019s team needed access to a modern brand of location intelligence<\/a>, but no one was sure where to find it.\r\n\r\nAs 2021 dawned and planning for the advertising upgrade reached a critical stage, Pupo hired Jesse Holder as program manager. Holder inherited the challenge of calculating ad impressions\u2014a task that felt like counting grains of sand on a beach. Is it even possible to capture impressions for a moving object?<\/em> Holder wondered.\r\n\r\nBut the challenge invigorated him. \u201cThis is going to be a fun project to tackle,\u201d he thought.\r\n\r\nAt that point in his career, Holder had worked in urban planning and construction management, taught English in China, and managed sales and marketing at his family\u2019s brewery in Tacoma. But he hadn\u2019t worked with trucks\u2014much less trucks that doubled as roving billboards. And yet one footnote in his diverse career turned out to be the breakthrough Columbia needed to deliver a truly innovative ad program to its suppliers."},{"acf_fc_layout":"quote","image":481952,"text":"Wrapping a truck the traditional way and sending it out on the road was the distribution world\u2019s equivalent of placing a banner ad on a web page circa 2002. Columbia\u2019s executives wanted to give suppliers a smarter program with a better return on investment.","author_name":"","author_profession_organization":""},{"acf_fc_layout":"content","content":"

Failing Fast on the Road to Innovation <\/strong><\/h3>\r\nHolder studied Columbia\u2019s business. He learned that the company operated more than 500 distribution routes in Washington, Oregon, and Northern California, with a fleet of more than 600 vehicles ranging from 14-foot box trucks to 53-foot transfer trailers. Under the upgraded program, an ad would stay on a truck until a supplier swapped it out, and each truck would run a dedicated route week in, week out.\r\n\r\nHolder began to brainstorm on how they might count impressions. \u201cWe knew it was doable, but we didn't know how,\u201d he says. The initial ideas relied on brute force, not off-the-shelf data or analytics. In one instance, Holder and Columbia\u2019s data analysts considered adapting a practice used to count billboard impressions<\/a>\u2014pneumatic tubes that sit on a road and register each passing car. The technique works well for a single stationary installation, but Columbia\u2019s trucks traveled dozens of miles a day over scores of highways and surface roads. The coverage area was simply too vast.\r\n\r\nUndaunted, Holder and Pupo thought about the data that was already available on the nation\u2019s transportation corridors. That\u2019s when Holder hit on the idea of traffic cameras. They are nearly ubiquitous, and often available to the public online.\r\n\r\nIt was a lightbulb moment, and it kindled hope that Columbia could deliver the data-driven visibility its suppliers valued.\r\n

Taming Complexity with GIS Technology and Location Data<\/strong><\/h3>\r\nHolder wondered if the team could write a program to \u201cwatch\u201d camera feeds, identify and count vehicles, and match those counts to each truck based on when it passed the camera. Then they could stitch together all the counts on a given route and estimate the total number of impressions for that ad."},{"acf_fc_layout":"sidebar","layout":"standard","image_reference":null,"image_reference_figure":"","spotlight_image":null,"section_title":"","spotlight_name":"","position":"Right","content":"Good Advice from the Bar Rescue Team<\/strong>\r\n\r\nLocation intelligence<\/a> guides business planning in many areas of the beverage industry. The television show Bar Rescue<\/em>, now in its eighth season, uses GIS technology and consumer analytics to advise the business owners who appear on the show. Host Jon Taffer says business planners should routinely conduct research on target customers as a business grows. In a recent interview with Entrepreneur<\/em> magazine, his advice to data-driven business leaders was: \u201cAlways focus on your target demographic<\/a>.\u201d","snippet":""},{"acf_fc_layout":"content","content":"Holder thought about his classes in urban planning<\/a>. \u201cI went back to my college days where I thought, \u2018Well, we need a geospatial fix for this, right? Why don't we use GIS?\u2019\"\r\n\r\nIn government and business sectors, geographic information system technology is nearly as ubiquitous as today\u2019s traffic cameras. It\u2019s at work wherever professionals answer questions about what is happening where, what has<\/em> happened, and what should. City planners use GIS-based digital twins to manage construction projects<\/a>. HR leaders rely on it to find the right labor pools for dark stores or R&D centers. Supply chain executives consult GIS dashboards to predict climate risk decades into the future<\/a>.\r\n\r\nIf Columbia\u2019s data scientists could create a program to monitor cameras, Holder figured, GIS could perform the analysis to connect each tally to its geographic route. It was a creative idea, but like the pneumatic strips before it, it wasn\u2019t practical. With so many trucks, routes, and miles to calculate, Columbia\u2019s small team of data analysts would be buried in data gathering and programming tasks.\r\n\r\n\u201cAfter we went down that rabbit hole, we decided, \u2018No, that is an absolute mistake,\u2019\u201d Holder says. \u201cThat's going to be a waste of time and money.\u201d\r\n\r\nToday he laughs as he recalls the teams\u2019 early efforts. But at the time, he was frustrated, and they were at another creative dead end.\r\n

Calling the Location Experts <\/strong><\/h3>\r\nIn search of a simple, off-the-shelf answer, Holder consulted a team of GIS experts<\/a> who quickly identified the kind of location intelligence Columbia needed to address the challenge. GIS software could create a digital viewshed around each truck\u2014a radius of several hundred feet within which people could see the ad. Then, using GPS data, Columbia\u2019s analysts plotted each truck\u2019s journey on a GIS map, revealing which areas the viewshed covered along the route."},{"acf_fc_layout":"sidebar","layout":"standard","image_reference":null,"image_reference_figure":"","spotlight_image":null,"section_title":"","spotlight_name":"","position":"Right","content":"Predicting Consumer Trends with GIS\u00a0 <\/strong>\r\n\r\nWith the help of location analytics, companies can monitor the pulse of consumers\u2014and glimpse how their tastes might change years from now.\r\n\r\n\u201cThe other cool thing that we really like about the GIS,\u201d says Columbia Distributing\u2019s Jesse Holder, \u201cis the fact that there's predictive modeling. We can figure out what the [beverage] consumption behavior is in 2021 and then in 2026, which isn't very common.\u201d\r\n\r\nThat insight helps businesses like Columbia and its customers plan. \u201cWe're able to figure out that [a beverage] category as a whole might be growing in 2026, or it might be declining in 2026,\u201d Holder says. \u201cAnd I think that's extremely valuable information that we can pass on to our suppliers.\u201d","snippet":""},{"acf_fc_layout":"content","content":"All that was missing was one piece of data\u2014information on how many people were in the viewshed along the route. The answer came in the form of human movement data<\/a>. Based on anonymous cell phone records, human movement data is a key tool for determining the number of people in a given location at a given time\u2014and it\u2019s available off the shelf. Retailers use it to locate new stores<\/a>. Highway planners use it to optimize the timing of roadwork<\/a>. Health-care providers consult it to identify the need for hospitals<\/a>, urgent care centers, and medical offices.\r\n\r\nHolder and his colleagues used GIS analytics to make sense of the various data streams\u2014including how the truck and its viewshed moved through space and how many people were in the viewshed at each point along the journey. The geospatial technology performed those calculations across 40 miles of terrain for hundreds of routes.\r\n\r\n\u201cThe GIS program was what brought everything together,\u201d Holder says.\r\n\r\nIt was a data-driven solution and a much-needed win for Holder, Pupo, and the Columbia team after months of experimentation. But instead of treating the breakthrough like a finish line, Holder says, they turned it into a stepping-stone.\r\n\r\n\u201cKoji kind of egged us on, him and I both, and brought the challenge and said, \u2018Let's make it better. Let's think of a better way.\u2019\u201d\r\n

Striving for the Next Level of Location Intelligence <\/strong><\/h3>\r\nPupo kept returning to the program\u2019s original objective\u2014to give suppliers more visibility into an ad\u2019s reach. Yes, calculating ad impressions was a breakthrough\u2014a welcome improvement on industry-standard practice. But Pupo wanted to give suppliers a deeper level of visibility.\r\n\r\n\u201cAs lines are blurring within our industry and people are becoming more adventurous around what type of beverages they drink, it's making it very difficult to understand where the consumer is going,\u201d Pupo says. \u201cSo there's always a need to be more dangerous with analytics . . . to understand where the consumer is and where the consumer is going.\u201d\r\n\r\nLeading executives in other industries have had the same thought, say the industry experts at Deloitte. In a recent article, Deloitte called geospatial analytics an important source of innovation<\/a> and a means of solving business challenges in talent acquisition, operations, risk, and marketing."},{"acf_fc_layout":"image","image":481942,"image_position":"left","orientation":"horizontal","hyperlink":""},{"acf_fc_layout":"content","content":"Pupo and the Columbia team again turned to the GIS experts, who explained that the anonymous human movement data behind ad impressions could also reveal a surprising amount of demographic and psychographic<\/a> data.\r\n\r\nBefore long, Holder and the data analysts were using a business-centric GIS program<\/a> to create snapshots of consumers along each of Columbia\u2019s routes. The infographics (see image) revealed how many impressions each ad received, along with information on who those consumers were. How many were women? What was their average disposable income? How often did they buy alcoholic beverages\u2014and how was that likely to change in five years (see sidebar)?\r\n\r\nWith that GIS data, Columbia executives have become consultants to beverage manufacturers, bringing more visibility and versatility to their advertising programs.\r\n\r\n\u201cAs we [get] information around what the demographics are for specific routes, we can then educate that supplier to what brand out of their portfolio might make sense,\u201d Pupo says. Manufacturers can match the beverage they\u2019re advertising to a route with high numbers of their target consumer."},{"acf_fc_layout":"quote","image":481962,"text":"Pupo quickly saw what other business executives have begun to realize\u2014that a geographic approach to customer analysis\u2014guided by GIS\u2014can propel innovative new products and services.","author_name":"","author_profession_organization":""},{"acf_fc_layout":"content","content":"

Innovation Changes the Conversation with Customers <\/strong><\/h3>\r\nSince Columbia\u2019s executives began selling the new program in summer 2021, conversations with suppliers have changed dramatically. \u201cIt's completely a 180,\u201d Pupo says. \u201cI think suppliers are blown away, not only by the way that we're able to quantify the numbers, but how we're able to dive deeper . . . and understand that demographic and who that consumer is.\u201d\r\n\r\nThe reaction was so strong that by October, nearly all of Columbia\u2019s routes were sold out.\r\n\r\nGiven the popularity of the innovative program, it might be easy to forget what it took to begin the journey. Holder says the wild ideas and dead ends that marked the journey were all part of the innovation process.\r\n\r\n\u201cLuckily because we went down that rabbit hole,\u201d he says, \u201cwe were able to find the power of GIS and use it for the program.\u201d"}],"references":null},"yoast_head":"\nColumbia Distributing Takes to the Road with an Advertising Innovation<\/title>\n<meta name=\"description\" content=\"In a supply chain shakeup, Columbia Distributing integrates location intelligence into its truckside advertising program.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/distributing-beer-beverages-and-industry-changing-innovation\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Distributing Beer, Beverages, and 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