Modes of collaboration

To adapt as well as possible to the expectations and imperatives of brewers and respond to the varied demands of a diversified international clientele, Malteurop offers several modes of commercial collaboration, as well as consulting, engineering, and training services.

Transactional relations

This is traditionally the most common mode of operation in the industry. It consists of contractualization on an intermittent basis (called spot contracting) or on an annual basis, with product generally deliverable in several shipments.

This transactional mode defines a fixed volume, based on prevailing market price, for a given quality during a predefined delivery period. This type of contract gives the brewer a high degree of flexibility of supply and lets him take advantage of market prices. But it does not provide real security of supply should major imponderables affect the market. And it does not give the brewer the benefit of development of a specific product or service.

Collaborative relations

Malteurop is rapidly developing this mode of operation because we feel that it is well suited to the current evolution of the environment and the markets, especially mature markets.

It is attractive to brewers who want to ensure the security of their supplies without being exposed to the volatility of the markets. It consists of contractualization on a pluriannual basis over the middle term (3 to 5 years).

This type of relation makes it possible:

  • to offer custom-tailored products (barley varieties and/or technical specifications of the malt) and to anticipate, together with the customer, the evolution of the characteristics required by the brewery both at the technical and at the marketing level,
  • to share market information – on prices, on availability – in a process of active management of the contract,
  • to develop collaborative solutions regarding production management, shared management of stocks, modes of transportation, and delivery frequency and in order to simplify the order management chain,
  • to secure supplies through contingency-plan clauses, taking advantage of the international geographical coverage of the Malteurop Group.

Strategic relations

This is a new mode of operation in the malting industry. A strategic relationship lets the brewer concentrate his human and financial resources on his core competency while delegating management of the principal risks of the malt supply chain to Malteurop. This made-to-measure approach is founded on detailed analysis of the specific needs of the brewer in a given market.

In such relationships, Malteurop integrates the customers’ own industrial, environmental, and social standards and practices.

On the mature markets, a strategic relationship is a way of regaining a competitive advantage by optimizing supply-chain costs and modernizing production facilities, which can then benefit from the latest technologies in the areas of processes, food safety, environmental impact, etc.

On the emerging markets, this type of relationship with the maltster is a way of supporting the customer’s development plan to guarantee its success and reduce risks.

This approach includes study, and if necessary implementation, of the barley supply chain – from selection of varieties and seed multiplication to growing, harvesting, storage, and transport.

A strategic relationship also includes industrial analysis to define the location of a production facility, but also its size and the technologies most suitable to the desired end product and the local environment. It can go as far as to include construction and start-up of a facility.

This type of collaboration gives rise to the development of a shared business plan along with the customer to serve as the basis for the future strategic collaboration contract. Malteurop takes on all tasks, including setting up financing solutions.

This approach can lead to various forms of partnership – from long-term supply contracts to joint ventures.

Strategic relationships are developed in mature countries, but also and above all in emerging countries where the business, agricultural, and industrial environments are in a phase of consolidation and when the brewer is seeking to make an alliance to reduce his risks and guarantee success. Malteurop has extensive experience in this domain. Ukraine, China, and Spain are good examples of its success.