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How much technical knowledge is necessary for commercial management in the beverage industry?

Posted on November 20, 2015 by Martin Ernst Haug — Leave a Comment

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ComManBev02Now, more than ever, the synergy between sales and science is absolutely crucial. Without sales, there is no funding for the science. And without the science behind a great product, there are no sales. The following information is a breakdown of a successful team and atmosphere in a modern beverage company.

Beverage Industry Commercial Management

Commercial management is responsible for the decisions regarding new product launches and line extension. These decision makers have a commercial education. They are missing a specific technical background. Usually they switch frequently between different business segments.

Technical Experts

Technical experts have an education in food science. They are responsible for the transfer of commercial ideas into successful beverage concepts. They need a deep understanding of the products from ingredients to production technologies and packaging. They rarely switch between different business fields. The ingredient suppliers work hand in hand with these specialists and share technical knowledge about their ingredients and their application in beverages.


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Team Approach: Commercial/Technical

Project management requires a team approach between commercial and technical experts. To make adequate decisions, a basic understanding of technical issues for commercial experts is needed.

Knowledge Management for Commercial Experts

The classical way to transfer basic technical knowledge is achieved by training in different departments with internal experts. This model requires a timeframe of several months and is usually executed by technical experts who are not skilled to train people. For those trainers, training is an additional job on top of their daily work load, as projects have top priority. Chemical, physical and technological facts have to be explained in a comprehensive and thorough manner which requires didactic experience.

Due to these facts, training is often a full-time job performed in seminars and workshops by experienced trainers utilizing presentations on key technical topics like tasting and label checking as well as demonstrations at the lab bench. In addition, real business examples and visualization through video clips turn these seminars into a living picture and immersive experience.

The goal of this training for commercials is to develop a basic technical understanding of the product. This is key to becoming a valuable partner and decision-maker in a project team.

Level of Technical Knowledge Necessary

The depth of this knowledge depends on the complexity of the beverage field. The importance of “free from,” functional and sometimes ethical expectations makes the projects increasingly complex.

The level of technical knowledge necessary for commercial experts is strongly dependent on the product they are responsible for marketing. Ingredient suppliers usually afford a very deep understanding of technical issues regarding their ingredients and application.

Ingredient suppliers, like color and flavor houses, are much more technically driven as compared to a company producing commodities.

And finally, a professional education is a very powerful tool to motivate employees. A senior consultant who knows the commercial beverage market and has also been exposed to the technical side can help a company avoid expensive mistakes in product development. Paying more for a quality consultant can save a company more in the long-term.

Reading List

  • Haug M. Produktentwicklung in der AfG Industrie. Fl. Obst 78 (2011) 482-485
  • Haug M. Berufsbild Getränkeentwickler. Im Spannungsfeld komplexer Marktanforderungen. DLG Lebensmittel 05/2010, 24-25
  • Haug M. Rohstoffe – das Herzstück von Getränken. Fl. Obst 77 (2010) 284-287
  • Haug M. Getränke mit wenig Saft: Zusammensetzung, Rohstoffe Technologie, Produktentwicklung, Marktprodukte. GDCh Fortbildung 2011 Fruchtsäfte, fruchtsafthaltige Getränke: Technologie, Untersuchung und Beurteilung
  • Haug M. Aktuelle Konsumentenerwartungen – Herausforderungen für die Hersteller von nichtalkoholischen Getränken. Fl. Obst 77 (2010) 519-522

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Filed Under: Food, Beverage & Nutrition Tagged With: overview

About Martin Ernst Haug

Dr. Martin Ernst Haug is a food technologist, trainer and consultant. He received his Diploma and his Ph.D. at the University of Stuttgart-Hohenheim. His thesis was about apple juice processing and polyphenols. Dr. Haug is author of more than 60 publications in technical/scientific journals and manuals. His primary focus is beverage development and formulation. He is a lecturer and organizer of symposia about current technical topics with regard to beverages and beverage ingredients. Dr. Haug is a member of several associations of the food industry.

In the early 80s, he began his industrial career at the department of research at Milupa (Infant Formula). Martin owned leading management positions at Eckes-Granini, a leading manufacturer of fruit juice and spirits. In the mid 90s, he switched to the food ingredient sector. He was Business Manager Beverages Flavor European Region at DRAGOCO. Later on Martin was Technical Director non alcoholic Beverages at SYMRISE, EAME, Flavour and Nutrition.

A very important step in his career has been the move to technical education and training of technical specialists and management in 2007.

In 2009 he founded beverage-consult, a consulting company focusing on training and education of ingredient suppliers. The second branch of his business is customized beverage formulation for startup companies.

Since 2012 Dr. Haug is lecturer for food technology at the University of Applied Sciences Niederrhein, Department of Nutritional Science. Martin has guided several bachelor and master theses and established lab facilities for beverage application and analysis.

Since 2014 he is also involved in the education of craftsmen for fruit juice and distillation.

Martin is a swabian inventor and hardworking creator with an extensive network within the food and ingredient sector. He is flexible and insists: “impossible is not an option.”

His website: www.beverage-consult.com

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