fb

He won’t be scratching the surface on this one.

He won’t be scratching the surface on this one.

A good friend of mine collect labels from beer bottles. As he travels around the world on holiday or business he collect labels from bottles of the local beer.

I think it’s a nice idea as it is a unique souvenir of where he’s visited, it’s relatively cheap and perhaps most importantly it gives him a great excuse to try out some local beers.

Things may be about to become more difficult for him though as a number of beer producers seem to be changing their marketing mix to save money and (some would argue) make the bottles look more fashionable.

As a lot of readers will appreciate, the marketing mix is also known as the 4Ps (Product, Price, Place, Promotion). If you look at the product component of the mix then not only does it include the beer itself but it also includes the packaging. This packaging in turn includes bottles (both glass and plastic) as well as cans.

Drinking some bottles of beer during a recent evening out with friends at a restaurant got the accountant in me thinking about what it costs to create the bottle that holds the beer.

Well if you think about it the raw materials that go into the bottle are glass (for the bottle) and metal (for the top) together with paper and glue for the label.

How can you reduce the cost of the packaging?

Can you reduce the quantity or quality of the glass? This would be tricky as the bottle could break.

What about the top? Again, this is awkward as you don’t want the beer to suddenly start leaking from the top of the bottle.

That leaves the paper and glue for the label and what a number of manufacturers now appear to be doing is producing bottles without the main label on it but instead embossing the name of the beer on the bottle itself (no additional material costs) and having the only label as a small paper “collar” around the neck of the bottle. An example of such a bottle can be seen in the image above from the successful Fosters Beer adverts in the UK.

Reducing the label size seems to make sense for bottles of beer that are sold in restaurants. After all, the label on the bottle has little impact on the purchasing decision when a person is looking at the menu or asking the waiter or waitress what beer they have. They may even know what beer they want already or can’t see the bottle anyway so the bottle wouldn’t impact on their decision.

It seems a good idea therefore for the beer companies to save money by removing the labels. Even though the paper used by one label is quite small, if you multiply that by the thousands of bottles which are sold around the world every day it could turn into a very significant saving.

What is interesting though is that if you go into a shop or supermarket that is selling beer, you will see bottles which have larger more “attention grabbing” labels on them. As people are wandering through the supermarket aisles they haven’t necessarily made up their mind whether they want to purchase a bottle of beer or if they have, what particular beer they want so having a big label which will grab their attention is a good thing.

In summary then it appears that two out of three people are happy. The accountant in the beer company is happy as production costs have been reduced due to reducing the labelling on the restaurant bottles. The marketing person is happy as he or she can use their skills on the design and thought process behind the labelling for bottles that are sold in supermarkets.

As for my friend that collect the beer bottle labels well my guess is that he may soon be unhappy as instead of trying to peel off the labels from the bottles whilst sat at a restaurant table he’s having to try to do that at the supermarket…

Share this entry

Related articles

View All Articles

Recent articles

View All Articles
10 reasons CFOs are saying goodbye to their roles
Apr 02, 2025
Title
10 reasons CFOs are saying goodbye to their roles
Excerpt

Last year, chief financial officers (CFOs) left their roles at the fastest rate in six years, according to […]

Women at the top: EY becomes first Big 4 firm with dual female leaders
Apr 01, 2025
Title
Women at the top: EY becomes first Big 4 firm with dual female leaders
Excerpt

EY has just made history – Alison Duncan will take over as UK Chair of EY, joining forces […]

When Audits Fail: PwC, Wyelands Bank, and the £2.9M Mistake
Mar 26, 2025
Title
When Audits Fail: PwC, Wyelands Bank, and the £2.9M Mistake
Excerpt

What happens when auditors fail to properly understand the business they’re auditing? That’s the question at the heart […]

Volkswagen sells more sausages than cars
Mar 18, 2025
Title
Volkswagen sells more sausages than cars
Excerpt

No, we’ve not made an early April Fools Joke. It’s true. Volkswagen do sell more sausages than cars. […]

EY UK restructures leadership: 30 partners to exit
Mar 16, 2025
Title
EY UK restructures leadership: 30 partners to exit
Excerpt

The professional services industry is experiencing a shift, with EY announcing one of its most significant partner redundancy […]

Worth its weight in gold?
Mar 14, 2025
Title
Worth its weight in gold?
Excerpt

When most people think of gold, they picture sparkling jewellery, luxury accessories, or even Olympic medals. But gold […]

Over paid, under performing… the players or the shares?
Mar 11, 2025
Title
Over paid, under performing… the players or the shares?
Excerpt

Manchester United recently announced plans for a new 100,000-capacity stadium, with an estimated cost exceeding £2 billion. While […]

Top 10 unusual KPIs: strange ways businesses measure success
Mar 04, 2025
Title
Top 10 unusual KPIs: strange ways businesses measure success
Excerpt

Key Performance Indicators (KPIs) are essential for businesses to measure performance and track progress. While traditional KPIs focus […]