by Marc Evans, chief executive, The Sure Chill Company
For manufacturers of soft and alcoholic drinks, ensuring that their products are delivered to the consumer at the right temperature is a vital brand component. Those droplets of condensation running down the outside of a can or bottle indicate that a premium drink delivers on its promise to provide real refreshment. It is an essential part of the experience which sells the aspirations around the brand, from being able to have the best spontaneous night ever through to having a fun time with friends. In short, if the drink isn't properly chilled, then it's not worth having.
This association between brand and temperature is a partnership that has been formed over a long period of time. And up until now this relationship has lasted well. Whilst there has been a need to innovate with clever marketing and diversify into new markets – such as catering for the more health conscious – in the developed world the beverage industry has witnessed roaring success. Yet at the same time, the market is also extremely crowded and opportunities for sustainable long-term revenue increases are few and far between. Despite its best efforts, the sector has crashed into a revenue brick wall.
Other avenues to explore
For a long time, beverage brands have been trying to break into new and emerging markets in developing countries such as Africa, India and South America. Rising populations and confident economies mean that disposable incomes are on the rise. India is of particular interest to beverage companies. Not only has household disposable income doubled since 1985, but it is also estimated to be the fifth largest consumer market by 2025, thanks in part to the emergence and rapid growth of a new middle class. This opens up a whole host of new opportunities for the sector to take their brands to new generations and to build long-term consumer loyalty.
And it is a prospect that hasn't gone unnoticed by some of the biggest names in the beverage industry. Competition is rife. However, whilst the growth potential is obvious on paper, in reality it is a lot more complicated. The key challenge relates to developing countries' infrastructure and the impact that this has on refrigeration. Whilst occasional power cuts are a nuisance for shopkeepers in developed countries, they happen so infrequently that they can be ignored. Power outages in the developing world, however, cannot. Most shops are lucky to get a few hours’ electricity each day – power outages last for hours, sometimes days, and come with no warning. This irregular, intermittent power supply is the norm in areas struggling to service huge populations, and running a conventional beverage cooler is near impossible.
A global brewer recently told us that they have extreme difficulty in serving cold beer across Africa, and recognise that they are selling an inferior product because they just can’t keep it cool enough due to the local power supplies.
And in those countries where the infrastructure is a lot more robust, the shopkeepers themselves can ill afford to have fridges running all night. As such it is often the case that fridges are turned off when a shop closes, meaning that drinks are warm come the morning and can take many hours - possibly until closing time - to return to their ideal serving temperature.
These are complex hurdles that need to be overcome. Clearly beverage companies do not have any control over infrastructure investment in these emerging economies, but equally, the need to find a solution to their quandary is pressing. And solving the problem has the potential to be extremely lucrative. For those that can crack the cooling problem, the opportunities to take ownership of the markets are considerable. Not only will the choice between a cold drink and a warm one be something of a formality, but longer-term brand loyalty is also very much up for grabs at this stage in these relatively untapped markets.
An old problem, with a new solution
We're working with a number of global companies from the beverage industry to help them pilot and implement our ground-breaking cooling system in some of the most challenging retail environments in the world. What makes Sure Chill technology different is that it doesn't require a constant power source, yet continually provides perfect cooling during periods of no power. What power it does need can be drawn from the mains, or from solar in an off-grid situation.
The technology works in an entirely different way from conventional refrigeration, which has barely developed in the last century. The scientific principle behind Sure Chill concerns a unique property of water. Simply put, water is most dense (heaviest) not as a solid (ice), but as a liquid (water) at 4°C. At this temperature, water will sink. At any other temperature, warmer or cooler – even as ice – it will rise. Sure Chill technology creates a constantly chilled environment of 4°C around a refrigeration compartment. Coincidentally, 4°C is also the ideal temperature for storing vaccines, fresh food and beverages. The temperature within a Sure Chill refrigerator, when stabilised, can only ever be a perfect 4°C, with no difference in temperature from one shelf to the next.
Sure Chill technology means that a farmer in rural Madhya Pradesh could enjoy a perfectly cooled cola just the same as a shopper in Manhattan. The experience would be the same; regardless of whether or not the power has been interrupted or the shopkeeper has had to turn the electric off overnight.
Such a scenario doesn't have to be just a vision; the right technology means that for beverage companies all over the world it could just as easily be a reality. Our new way of thinking about refrigeration is offering big brands a unique opportunity – their best chance of breaking into new markets and reaching targets they set at the beginning of the decade. The race is on.
