Gary Vaynerchuk recently hosted our Chief of ZX Ventures, Pedro Earp on the AskGaryVee Show, an unconventional entrepreneur’s guide to leadership, social media, and self-awareness. Pedro and Gary discussed ZX as an innovation arm within a large corporation - including the current consumer goods market, passions vs. skill sets, disrupting the beer market, and more. Check it out below.
August 24th marked the culmination of this year’s Zxlerator – Demo Day. The cohort of 50 ABI intrapreneurs and summer interns tackled 14 huge challenges facing our business. Last month, they had the chance to get on stage and pitch the businesses they built this summer in pursuit of investment.
Zxlerator is an 11-week program where existing employees and summer intern’s work together to identify a real problem, validate a solution, and build a viable business model. Basically, they start a business. These ventures are early stage – often starting from just an idea – so we start out with an intensive two-week boot camp. This is a crash course in how to start a company. Teams then gain access to a slew of internal and external mentors to call on, and programming designed to help them leverage our core business. We couldn’t be more impressed with the work they completed!
Read on to find out what some of the brilliant innovators and creators had to say about the program:
Jessica Douglass, a member of the Chameleon Canning team, which is working to find a solution for expensive product labelling in the beer industry through canned beers.
Did you enjoy the Accelerator program? “I absolutely did—it was an incredible opportunity to build a business from the ground up, and get to work with a team with such different backgrounds. We really came together, knowing nothing about each other on day one, to being super close now, and having built something that really speaks to the consumer. It was an incredible experience.”
What would you say was your biggest challenge or reward? “We had a lot of challenges, but I think it’s more fun to focus on the rewards. Our biggest reward was hearing from the customers we ended up selling to just how much this would mean for their business. We were able to supply cans to beverage companies, and they told us how much it would really transform the way they do business, the way they were able to sell, and the way they were able to present their brand. It was so incredible hearing how this would affect their lives.”
Would you recommend the program to others? “I totally would. I think it’s the perfect balance of being able to work at a large company with getting that startup feel, seeing how it is to build a business from the ground up.”
Kimberly Montgomery, was a member of another team this summer and a full-time entrepreneur at ZX Ventures. Her team was addressing casual drinking occasions.
Did you enjoy the Accelerator program? “I loved it. It was such a great program. It was an amazing opportunity to get outside your day job and try something new. To explore a problem and find a solution.”
What would you say was the biggest challenge or the best part of the program for you? “It’s intense. It’s an 11-week intensive program. You come in on day one, you get sent this challenge, and you need to go away and solve it. For me [the biggest challenges were] the scale of what you needed to solve and how quickly you needed to work. You need to start making decisions, finding answers, and challenging yourself to leave the office and put yourself in uncomfortable situations. It’s also one of the most rewarding parts, because you start the day feeling really nervous, and then by the end of the day you realize that you’ve learned so much, talked to so many people, gotten so many new ideas, and discovered so many new perspectives. So, I think that’s the most rewarding part as well.”
Ronnie Palejwala is a member of the Cooler Insights team, which worked to create state-of-the-art sensor technology that will help businesses more easily meet the needs of their consumers.
Did you enjoy being a part of the Accelerator program?
“Yeah, absolutely. This summer was a whirlwind, but it was so much fun. Getting the autonomy and the independence that we got from the ZX team. I’ve had other internships here before, and they don’t even come close. This was a really special experience.”
What was your biggest challenge in a program like this, knowing that it’s competitive and so much is on the line?
“The biggest challenge is that there’s so much independence that you don’t really know how you’re doing at any point, and at some points there’s so much ambiguity that you don’t know what path to take. Making those decisions and figuring out which is the best path to go down is hard. I’d say the way we overcame that is we just came together as a team, we had conversations, we talked about different viewpoints, and we made decisions together as a team at those tough moments. Working through them was tough. I think, in the end, where we were able to get was great.”
Would you recommend the program to other people?
“Yeah, absolutely. I would be hard pressed to find a summer program where you could do more and have more impact and do something cooler than what we did here.”
It was a summer of exciting new start-ups, unique challenges and fresh ideas. We can’t wait to see where year three takes the Zxlerator program and watch the continued success of this year’s interns and ZX intrapreneurs.
Last week we kicked off the ZX Product Leadership Development Program (PLDP), an ongoing training initiative to strengthen the product management skillset within ZX. Twenty-two attendees from businesses in seven countries attended a three-day Product Summit in NYC.
We began the session by discussing the role of Product @ ZX and why Product is important within our company.
- Customer focus – Product starts with the customer and the market context in everything we do and we develop business cases from the outside in.
- In-house product & development – In the digital businesses we’re building at ZX, product & technology is a core competency and a main source of our competitive advantage. By having top tech talent in-house, we believe we get to better solutions through deeper knowledge of the customer, retain that knowledge, and build an important skillset for the company.
- Agile approach – We set a big dream, but start small and lean to learn and deliver value quickly.
We then introduced eight competencies that represent the critical skill areas for development of our product team.
- Know the User
- Our role as Product Managers (PMs) is to understand the consumer’s needs, pain points, and motivations. To understand them better than they know themselves.
- Understand the Opportunity
- Understand the market, who the direct & indirect competitors are, and how to price and position a product based on the current market. An excellent PM looks into the future and creates a mental model of where the market is going, and builds their product with the future in mind.
- Define a User- and Market-Driven Vision
- Demonstrate that the user problem, market opportunity, solution, and benefits to our business are aligned and significant, thereby unlocking additional resources / support for the project.
- Clearly Communicate Goals and Progress
- Proactively keep each stakeholder informed on project vision, progress vs roadmap, current performance, and plans to close gaps; adapting messaging, communication method, and cadence to each audience.
- Contribute to Product Organization Development
- Actively seek ways to elevate the role of product within the organization and be seen as thought leaders across multiple competencies.
- Define a Compelling User Experience
- Go beyond benchmarking and literal translation of user feedback. Redefine standard for addressing user needs by rethinking user steps to complete and applying innovative user interaction approach and/or technology application to solve.
- Effectively Prioritize & Execute Roadmap
- Translate vision into a roadmap to execute against business objectives on time and within budget.
- Establish & Utilize Feedback Loops Effectively
- Build feedback loops into the product (e.g. capture demand information, validate/refine algorithms, personalize experience based on user input, etc.).
We hosted a series of external and internal speakers to cover topics aligned to the eight competencies above. Two key themes emerged from our conversations at the Summit:
- Problem validation
- Challenge all assumptions about the customer and their needs
- Problem definition and validation are just as important as solution definition and validation
- Fail fast -- test to learn, not just for lift
- Test feature changes in individual tests to isolate & understand impact (and share learnings with the broader team!)
As a team, we found a lot of value in discussing our shared business challenges. To continue the conversation after the Summit, we will offer an ongoing speaker series.
By René Paula, VP of Legal at ZX Ventures
Learn more about the integral role trust plays within the ZX Ventures Team, and our consumer relationships.
Thomas Hartman, Innovation Brewer at ZX Ventures, sat down with us to chat about IPAs.
Let’s talk about the history of IPAs to get started.
The IPA, or India Pale Ale, was one of the first real bastions of American craft beer. At its beginning, craft beer was a revolution against “big beer” and “lite beer.” IPAs allowed budding craft brewers to produce intense flavors in a light-colored beer instead of a traditional heavy stout. In a typical enthusiastic all-or-nothing fashion, the craft beer pendulum swung rapidly toward over-the-top bitterness.
What’s the flavor profile of an IPA? How do we get there?
Craft brewers seeking to highlight American ingredients—and to differentiate themselves from macro breweries—put as many hops and as much flavor in their beers as they could manage. (Note that while hops have distinct flavors besides bitterness, hops are the easiest way to enhance a brew’s bitterness.) These styles evolved over time to showcase the intense flavors of local and specialty ingredients. Using different hop varieties, adding hops at multiple brewing stages, experimenting with lupulin powder (purified resins and aromatics from hop flowers), and dry-hopping are all methods to enhance the hop flavor and bitterness of IPAs.
Speaking of bitterness: a beer’s bitterness is measured in International Bitterness Units, or IBUs. The higher the number, the more bitter the beer. It’s widely believed that most drinkers’ palates cannot differentiate bitterness beyond a certain point, somewhere around 80 IBUs. Therefore, an imperial or double IPA logging 100 IBUs is probably overachieving, delivering more bitterness than most drinkers will detect (much less appreciate).
How do you see the IPA trends evolving over time?
I’m really glad to hear that the trend in IPAs today is toward lower ABVs and lower IBUs—less bitter beers with a more balanced flavor profile. Another great development in IPAs focuses on local hops or single-hop varieties. I’m particularly excited about rotating-hop recipes. For these, a single beer recipe is produced repeatedly, each time using a single hop variety but changing that variety from batch to batch. Each time the recipe is reproduced and a new hop is cycled in, the variations in flavor and mouthfeel reflect the hop used. For instance, Cascade hops bring a floral, citrusy flavor, emphasizing grapefruit. The same recipe brewed with Mosaic hops will tend to be more tropical and floral, whereas a third cycle using Simcoe hops will have more of a piney flavor. New hop varieties are in development all over the world today, including some that are truly out there! Perhaps there’s a hop variety that will appeal more to you.
Believe it or not, there’s an IPA style to suit nearly every beer drinker. If you want to dive back in and give IPAs another try, look for session versions, which are lighter and more palatable (one session IPA I’ve really been enjoying lately is Blue Point’s Mosaic). Avoid the hoppier West Coast styles and especially anything described as an imperial, double, or triple IPA—these are the “bitter is better” styles with double-digit ABVs and extreme IBUs. Also, consider trying some regional IPAs or specialty styles. From cloudy New England IPAs to roasty black IPAs, where the hops are most evident in the finish, to fruity or flavored IPAs, there’s something for everyone.
ZX Ventures Innovation Brewer, Thomas Hartman, has noticed a change in the way beer drinkers approach brewers and beer subject matter experts. What’s behind the change? Check out his views here!
What questions do you normally get about beers and how are they changing?
I used to hear a lot of basic beer style questions. For example, what’s the difference between an ale and a lager? (In case you don’t know: it’s all in the yeast. These two styles use different types of yeast that prefer to be fermented at different temperatures and therefore take more or less time to do their job of converting wort into beer.) Now, though, while I’ll occasionally get a softball like that, I’m often asked much more sophisticated and nuanced questions that are truthfully difficult to answer.
Today’s questions often focus on differentiating between very similar types or styles of beer. What makes these questions hard? As experimentation has blossomed within the craft beer world, the lines between styles are blurring. Definitions are either unclear or are no longer strictly applicable (if they ever were).
What are some examples of those more nuanced questions?
I’m frequently asked about the difference between a porter and a stout. (Are they even different types of beer or just two points on a spectrum of dark beers? Is the real difference, if there is one, in their treatment of barley?) Why is a particular beer labeled as a session IPA and not a pale ale or vice versa? (It’s arguably a matter of balance and intensity: a pale ale should have a good balance between its different component flavors, whereas an IPA, even a lighter session IPA, should be more hop-forward.)
Another big area of questioning relates to specific ingredients. Which hops are represented in this beer, and what does each do for the flavor profile, individually or in combination? And, especially recently, where were these hops grown? I just sampled several batches of a beer that were made with the same hop variety but with the hops in each batch sourced from several different countries and climates. The resulting beers were wildly different in flavor and character. This is a fascinating area for future development!
What do you think is behind the changing questions you’re getting in the industry?
People who are drinking beer today definitely know what they’re talking about. Compared to other industries, these people are intensely passionate and have made the effort to educate themselves on beer. They’ve been exposed to a lot of different things, and have both a wider and deeper knowledge about beer in general. All of this is now reflected in the types of questions I get as a brewer. Craft beer has always waged this battle to educate consumers, both to justify the higher price tag of craft beer and to engage people with a deeper experience of beer. The growing education we see today results from several sources.
First, the internet is critical. Craft beer represents 12 to 15% of the beer market by volume and 20% by dollars spent, and these drinkers want to appreciate what they’re paying for. Fortunately, if beer drinkers want to know the difference between the flavor profiles of specific hops, they need look no further than Google. More and more they’re asking questions—smart questions too—and then researching and looking into the answers.
Second, there’s a growing recognition of beer-drinking as an acceptable hobby, accompanied by substantial resources for hobbyists. Paralleling the wine world and its sommeliers, the Cicerone program has developed a training and certification course for enthusiasts. To join the ranks of the 2,500 certified Cicerones worldwide, an applicant must pass a four-hour exam that includes taste tests and a written portion. Other large organizations are similarly dedicated to educating drinkers about their beer.
Finally, the homegrown local beer industry has contributed to the education of beer drinkers. With a whopping 5,000 breweries in the U.S. today, every community has some form of small brewery or local taproom where people gather. As people spend more time among their kindred local beer enthusiasts, they are learning what they like (and don’t like) and how to talk about beer in a nuanced and specific way.
It’s exciting to see the evolution of beer drinkers here in the U.S. and around the world. In terms of beer as a hobby, I can’t wait to see where we go next.
We asked Guilherme Lebelson, Global VP of eCommerce, to share his insight into finding success in the eCommerce world. Check out his tips on how we make this work at ZX Ventures!
What do you consider the keys to success for eCommerce at AB InBev and ZX Ventures?
Our success starts with our people. While technical skills are often required for specific types of work, in general, we’re looking for people who will live by our culture. We want people who are passionate about dreaming big, having a sense of ownership, and taking on new challenges. When we find people who are excited by our culture, and who are open to constantly stretching themselves, we can develop everything else. We focus on potential and allow our people and our teams to grow into each new role. Once we have that team of great people, we can look at the market and reach out to our consumers to identify gaps or create new concepts. We try to start with a gap, clearly define that one problem, and apply our knowledge to find a solution or a way to close that gap. Then we monitor that solution: if it’s going well, and if it’s a scalable solution, we can grow it. If not, of course, we shut it down and try another idea.
How do you stay focused on the end results of a project or goal?
The key here is that it’s all about keeping our eye on the goal we want to achieve, not on a specific tool or “buzz word” technology. We don’t believe in focusing on how we do things in and of itself. We look to put our consumers first, build great products, and deliver results. We always look toward our dream and our challenge and select the best tools and technologies that will help us achieve that dream.
How do you manage the changing needs of a company or consumer base?
It is critical to continue adapting as we grow. Right now, ZX Ventures is a very new company, but we’re already global and we’re rapidly growing in terms of our footprint. That’s launched us on a great journey of learning how to deal with different types of businesses and different operational models. In the beginning, we tried to fit everything into a one-size- fits-all solution. Now, as we’re expanding, we’re watching the data and learning that we should adjust our operational models to accommodate where we are and what we’re trying to achieve. Some businesses need to have a more decentralized model, where decisions can be made on a hyperlocal basis; on the other hand, some of our fully digital products benefit from a globally centralized team.
We sat down with Etkin Tekin, Global Manager of Specialties and Innovation, to get some insight on how to order a great beer. Check out his tips here!
With the popularity of craft beer and local breweries today, how do you get started in deciding what kind of beer to order?
No one can possibly be familiar with every beer available everywhere today. It’s worth it to develop your ability to order a beer you’ll enjoy, even when you don’t recognize anything on the tap list. This is especially true when traveling and looking for a great beer to wind down after a long day.
Remember that craft beer practically begs for exploration, with its myriad styles and flavors. In the face of that much variety, people are often afraid they’ll waste their money (or their drink quota) on something they won’t enjoy. It’s the same way with food: if a menu offers both a range of intimidating specialty entrees and a simple burger, customers will skew toward ordering the burger. Initially, it might be difficult to step out of your beer comfort zone, but the rewards are tremendous. Challenging yourself and intentionally expanding your palate will help you discover new beers—some of which are bound to be excellent—and enable you to enjoy an increasing range of choices.
How should you approach picking out a location to start trying something new?
A dive bar won’t have the diverse beer list or the experienced staff you need to make an informed decision. Look for a draft beer list with depth—both a variety of offerings and a complexity of styles and flavors. Online reviews can be a great resource when you’re unfamiliar with the options in your area. Some things to look for are restaurants that offer beer-pairing dinners and bars that host tap takeovers, since this shows focus and a passion for good beer. When you enter an establishment, judge for yourself: how clean is the bar? Does it have an appropriate variety of glassware, properly stored upside-down? Do servers rinse their glasses before pouring beers? Do they pour with care or sloppily dunk the tap head into each glass? Finding a reputable craft beer bar with staff that can be trusted is the key to having a great experience.
What about asking questions once you’ve found the right bar?
Once you’ve chosen your location, grab a seat at the bar, and be as engaging as possible with your bartender. Relay information about what you like and what you’re in the mood for. Are you a hophead? Do you love complex barrel-aged stouts? Let your server know! Be inquisitive, especially when traveling to a new destination. Asking the right questions— such as what a beer tastes like, what it’s similar to, what it pairs well with—is the best way to identify beers that you’ll enjoy. Ask what your server enjoys or what the best beer on tap is. What would your server order for his or her shift drink? Depending on the sophistication of the bar and your bartender, you can glean some outstanding recommendations this way. And, most importantly, be courteous and friendly—your goal is for your bartender to want to guide you on your tasting journey.
Trying new beers is one of the best parts about traveling. The next time you’re in an unfamiliar location, seek out a great beer bar and make friends with your bartender. You’ll have an experience you can remember, and might even find your next favorite beer too!
Gabriel Mello, Global VP of Specialty Sales, defines how ZX Ventures measures success and which qualities the team looks for in potential candidates.
Etkin Tekin, Global Manager of Specialties and Innovation, talks to us about one of the most engaging aspects of his job: The Educational Happy Hour.
What’s the main purpose behind the educational happy hour?
Working for AB InBev and ZX Ventures requires a solid base of knowledge about beer to effectively promote our business. That means we need to speak the language of beer! So, one of our constant goals is to enhance the education of our team.
We have an ongoing educational program to ensure that all our employees have the knowledge and tools they need. We want to convey a consistent, accurate message as beer ambassadors, which means having a standard vocabulary and complete understanding of beer flavors and styles. The Specialties team at ZX Ventures has the amazing privilege of heading up that effort, and one of our favorite methods is an instructive happy hour.
What is the structure of these events?
Our happy hours begin with a short lecture. We walk our participants through a few technical aspects of the beers we’re describing, explaining the key flavors and characteristics they should notice. For example, one of our classes focused on the difference between ales and lagers. These styles are distinguished by the different major yeast strains used, with each producing a distinct beer with qualities typical of that style. Another recent class compared a pale ale with a German pilsner.
After the discussion comes the tasting. Once we’ve given everyone some context regarding what they’re about to try, we put their palates to the test. We provide beers for blind tastings and ask our attendees to describe what they experience; what they can taste, smell, and feel for each beer, as well as their overall impressions. It’s also an opportunity to see how well people can articulate a beer’s characteristics, which is a valuable skill for us to have.
Can you give us an example of a comparison that might come up at an educational happy hour?
Some of our comparisons are quite sophisticated. Take our last happy hour, where we discussed Belgian golden ales. We provided three examples, including our own Leffe Blonde, for tasting. We often do these blind tastings to compare our portfolio of beers to other major brands. For example, we provided our Goose IPA along with two other brands to see how many people could differentiate those and recognize our beer! We also ask which beer everyone prefers and why.One important note about our happy hours is that we work with real market conditions to give our team relevant context for our portfolio. We get the beer for our tastings from a retail store, so we get what’s on the shelf. Sometimes we find that beers have been on the shelf too long or haven’t been stored well. It gives us a real-world market context, reminding us that there are limits to what we can control in producing beer. These happy hours are an opportunity for us to see what’s actually being sold and identify what we can do better.