A sustainable approach to the brewing of beer
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Harnessing the potential of the Middle Americas at AB InBev
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AB INBEV
Gabriel Guzman, Director of Raw Materials, Agricultural Development & Utilities for AB InBev’s Middle Americas region discusses the zone’s potential and the sustainable strides the company is making
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s the world’s largest beer company, AB InBev (ABI) maintains a complex and interrelated global supply chain. One of
the regions most important to the company’s oper04
ations is the Middle Americas, as Gabriel Guzman, Director, Raw Materials, Agricultural Development and Utilities elucidates. “It’s a fast-growing region, for sure. Out of the entire ABI group it is the second largest in terms of revenue and the largest in terms of EBITDA. It’s a growth engine.” The region’s potential is obvious, but it also brings its own set of challenges. “We deal with less developed economies, so we sometimes have problems with taxation and changing regulations and treaties.” Guzman’s role requires the management of a number of teams, each dedicated to the different sections under his purview – the provision of raw agricultural materials, the coordination of utilities and the sustainable development of agriculture all being examples. That last area is covered by Jose Luis Taylor, Director of Sustainability and
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1366
Year founded (the Artois brewery)
$54.6mn Revenue in US dollars
170,000+ Number of employees
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AB INBEV
“ Our goal for 2025 is that 100% of our farmers are to be skilled, connected and financially empowered” 06
— Gabriel Guzman Director, Raw Materials, Agricultural Development & Utilities AB InBev Middle Americas
Agricultural Development at the company, who speaks to the importance of treating farmers ethically and with respect. “Our goal for 2025 is that 100% of our farmers are to be skilled, connected and financially empowered,” says Taylor. “We have a base of around 4,000 farmers, the majority of which are in Mexico, where we implemented this programme four years ago. We have another programme now in Colombia, and we are making strides in Ecuador. In Mexico, we were challenged to ensure that 100% of the
CLICK TO WATCH : ‘WE ARE AB INBEV’ 07 barley came from local farmers instead
sustainability targets to benchmark
of being imported, which we have now
its progress in these areas, including
achieved. In doing that, we’ve invested
in energy. “By 2025, the target is for
in machinery and created jobs for local
ABI to use 100% renewable electricity,”
people.” This focus on having a positive
says Guzman. “In Mexico we should
effect on the people with whom the
be at 100% by the end of this year,
company works is echoed by Guzman.
which is our largest market – about
“The question is, ‘can we truly talk the
45% of the entire zone. Our goal is
talk and walk the walk and empower
to continue to expand that, so we’re
the communities in which we oper-
looking at opportunities in Colombia.
ate?’ In the early stages, it can be more
in Honduras we have found a source
expensive, but it’s an investment. After
of 11 megawatts of hydro power that
that it can become self-sustainable as
we can potentially use. It will not satisfy
it should be.”
100% of what we are looking for but
ABI has implemented a number of
will definitely help us with our target.” w w w.a b- i nb ev. com
AB INBEV
“ We’ve invested in machinery and created jobs for local people” 08
— Jose Luis Taylor Sustainability & Agro Development Director, AB InBev
Water Management is also a focus,
this vegetable protein to change their
as the company’s CEO Carlos Brito
diet, and we are looking at a number
demonstrated during a recent talk.
of disruptive projects to create the
Guzman himself discussed the corol-
right products to match this consumer
lary concern of decarbonisation at a
demand. For instance, last year we
Bloomberg event last year.
launched a smoothie made out of
A sustainable approach can also
spent grains. It’s been in a pilot in the
offer opportunities for value crea-
US and it’s being positively received.
tion. “We have a significant amount
We are also making snack bars from
of byproducts left over after finishing
the grains – we have a significant
the beer-making process, in the form
amount of protein value there.”
of vegetable protein content,” says
ABI’s sustainability work serves to
Guzman. “There is a trend in the mar-
complement its focus on making the
ket where consumers are looking for
best beer. “The quality of the beer is
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E XE CU T I VE PRO FI LE
Gabriel Guzman Gabriel leads Anheuser-Busch InBev’s Middle Americas Zone teams for Raw Materials, Agricultural Development and Utilities Procurement. Gabriel oversees the Zone’s plan to achieve its ambitious 2025 100% renewable electricity commitment, which is an integrated part of the company’s strategy across procurement, sustainability and supply chain. He works in close collaboration with cross— functional teams, supporting the company’s energy and water reduction targets. Gabriel holds a Bachelors in Management and Economics and an MBA from Case Western Reserve University.
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“To maintain a sustainable, high standard of beer, you have to be dynamic” — Gabriel Guzman Director, Raw Materials, Agricultural Development & Utilities, AB InBev Middle Americas
determined, not only by the expertise
computer models which can help to
of the chief brewers, but by the quality
protect against future price volatility.
of materials,” says Guzman. “Without
Robotic process automation has been
that, you cannot achieve the high
another focus. “We can reduce the
standards that we have in the organi-
amount of man hours spent on very
sation.” Regionally, this year, adverse
basic tasks, freeing us up to evaluate
weather conditions led to 50% of the
the procurement function, to think in
barley crop in Mexico being lost. ABI’s
more strategic ways and to add value.
worldwide presence, however, means
We use robots, for instance, to help
that such an eventuality does not spell
with managing and indexing contracts.”
disaster. “In order to find the quality
Another innovation involves the intro-
that we need, the teams have to mobi-
duction of inter-departmental buying
lise globally with all their counterparts
software. “We use a platform similar to
in other regions. To maintain a sustain-
Amazon whereby the different func-
able, high standard of beer, you have to
tions within the organisation can order
be dynamic.”
whatever they need,” says Guzman.
Tying its efforts together is the
“That may be people in marketing, in
deployment of technology. The vola-
legal, et cetera. They can order certain
tility of prices and currencies in the
amounts without approval, which help
region has led to the development of
them to expedite the process.” w w w.a b- i nb ev. com
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AB INBEV
Aside from making easier the work of employees, technology is also serving to improve the quality of raw ingredients. ABI has pioneered an AI technology pilot, internally referred to as a “brain”, which is able to closely monitor the state and health of cargo as it is being shipped. “We can measure the moisture content of the barley being loaded in Denmark, for instance, and then track that moisture content, based on factors such as weather conditions, all across the route from 12
Denmark to Colombia. When the ship arrives, we will know that the barley arrived with X amount of moisture
“ My dream is to increase Mexican barley to the highest of international standards” — Gabriel Guzman Director, Raw Materials, Agricultural Development & Utilities AB InBev Middle Americas
content, therefore at the malting process we will only need X amount of energy to convert that barley into malt.” In the near-term, ABI will continue to chase its sustainability targets, covering not just the brewing side of the operation but also manufacturing and the entire distribution network, where it is introducing a number of electric trucks to deliver products. ABI is also furthering its origination programme in Mexico. “In Mexico, we use about 400,000-500,000 tonnes of corn imported from the United States,” says Guzman. “You can imagine the impact to Mexican agriculture if we could buy that from a local grower, instead. That’s precisely what we are trying to do right now by launching a corn origination programme. This year we are going to get to 40,000 but our goal is to get to 400,000.” In the longer term, ABI is interested in consolidating its position in the region. “From an agrodevelopment standpoint the goal is to improve the quality of Mexican barley,” says Guzman. “My dream is to increase Mexican barley to the highest of international standards.”
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Anheuser-Busch InBev Brouwerijplein 1 3000 Leuven Belgium T +32 16 276 111 www.ab-inbev.com