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Integration of RFID Technology for
Tracking our Fleet of Kegs
Presented By: Jordan Kivelstadt, Managing Partner
Agenda
• Company Overview
• History and Benefits of Wine on Tap
• Example of Wine On Tap Installation
• Our Kegs and How they Move
• Our Strategic Partners
• RFID Integration
• Question and Answer
Silvertap and Free Flow Wines – Respective
Industry Leaders Under the Same Umbrella
• A premium wine brand
marketed exclusively in kegs
• Largest national wine on tap
brand 3,500 “cases” sold to
YTD2011
• Sonoma County wines
produced by acclaimed
winemaker Bill Knuttel
Silvertap Wines
• The industry leader in wine
keg packaging with more than
20 clients
• Provides custom packaging,
tracking, and support to
wineries
• Proprietary cleaning/filling/
tracking systems
Free Flow Wines
Wine on Tap Has Existed in Many
Different Forms
Wine on tap is not a new idea…
• Existed in Europe for hundreds of years
• Italian producer Montelvini sells over 500,000 kegs of
wine per year!
First attempts in the U.S. failed because of poor wine quality and
a lack of focus on delivery mechanisms
• Anheuser Busch - Master Cellars
• Paul Masson
• Inglenook
Wine on Tap is Changing the Way
Americans Drink
“Wine, stored in keg and served through a method similar to a draft-
beer line [will] be the glorious future of by-the-glass…”
“Sonoma-based Dan Donahoe, one of the first wine-on-tap producers,
told me he sold "the equivalent of 5,000 cases" in 2010 and expects to
sell four to five times that much in 2011.”
“Kimpton Hotels & Restaurants…has launched a new Wine On Tap
program. Emily Wines, director of wines …is leading the draft wine
program through a partnership with Free Flow Wines.”
Marriott, Hilton Hotels, Starwood Hotels &
Resorts, Sodexo, Whole Foods, Kimpton Hotels,
Slanted Door Restaurants, Moana Group
Who is Putting
Wine on Tap?
In spite of growing demand by restaurants and
hotels, few brands are available in keg
Demand is greater
than supply
Why Wine on Tap?Delivers improved quality at a lower cost, increases
margins, decreases carbon footprint
No Spoilage No cork taint, “bottle variation”, or oxidation
Consistency Wine remains fresh; from the first glass to the last
QualityReduced packaging costs provide higher quality wines
at a lower price
GreenCarbon footprint reduced by eliminating packaging: no
bottles, labels, corks, foils or cardboard
Ease of UseWine on tap flows through the same style draft system
as beer
How Green = Better ProfitsThe Cost Benefits of Moving One By-the-Glass Placement to Wine on Tap
• 3 cases a week = ~1,900 bottles a year
• An empty box of glass weighs 18 lbs
No Waste
Saves 1.5 TONS
of trash
• Remove TCA problems (5% of wines)
• No spoilage from oxidation – ¼ bottle for
every 4 bottles poured
The Perfect Pour
Saves $9.45 per
case ($1,500 per
year)
• Without bottles, stocking, rotating,
and disposal is reduced, saving 2 man
hours a day
Efficiency
Saves $1,500 in
Labor
NOTE: Assuming 3 cases per week, $10 an hour for labor, $7 a bottle wholesale price
Free Flow Wines has 5,850
GreenCasks in Circulation
• Our GreenCasks are made of PET
plastic, reducing weight to 60%
of metal kegs
• International testing laboratory
showed no taste difference
versus metal kegs
• Made in California, using
renewable energy
• Expected life is 8 years, at
which point they are recycled to
produce new kegs
GreenCasks
• Currently Free Flow owns
• 4,450 20L kegs
• 1,200 15L kegs
• 250 10L kegs
• Approx. 1,400 kegs are on-site
in the winery
• Proprietary Radio Frequency
ID Tag (RFID) system to track
kegs, developed by BIS
Computer Solutions
Cask Fleet and Tracking
Free Flow Wines LogisticsKegs filled at our
winery or at a clients
Distributor pick up kegs from winery/
storage facility
FFW bills distributor for
deposit, credits winery
Distributor delivers full and picks up empty
kegs
FFW ships from your distributor
back to our facility for one low cost
Kegs are inspected,
repaired and cleaned
• Keg Cleaning
• Keg Filling
• Keg Rental
• Deposit Billing
• Keg Tracking
• Compliance Assistance
• Return shipping
Key Services Offered
Free Flow Wines - Strategic
Partnerships• Largest supplier of tap parts in the world
• Industry leader and partner in new product design
• Industry leader in draft system tracking
• Provides key data on utilization and efficiency
• Proprietary keg tracking software• Follows the entire keg “life” using Radio Frequency
Identification (RFID) tags
• National reverse logistics partner
• Eases burden on distributors to return kegs and
handle deposits
MicroMatic: Key to Tap
Installation Success• Largest manufacturer of draft parts
in the world, important Free Flow
partner
• Produced the first “Wine on Tap
Catalog” together with Free Flow
• National network of installers
• Mike Ciaccio: Micro Matic dealer /
installer contact for any market,
nationwide
BIS – Our RFID/Inventory Partner
Established in 1971
Currently Maintains Three Divisions
• Commercial Division
• Government Division
• Mobile Division
Company Locations
• Corporate Headquarters, La Crescenta, CA.
• Italy
• Utah
• New York – Satellite Sales
The Support We Needed to Make
RFID a RealityBIS have a dedicated support team who are available 24/7 to assist you with the solution should additional training or issues accrue
• Support and Developer Certified
• Oracle Certified Developers
• Oracle Certified Database Administrators
• Platinum Oracle Partner
• Member of the Oracle Development Alliance Network
• Microsoft Gold Certified
Our Challenge
• Currently Free Flow has about 6,000 kegs in
circulation – growing to 20,000 this year
• These kegs are cleaned, filled, stored and shipped
from one location
• Key pieces of information to track:
– Is the keg dirty, clean or full?
– Where is it?
– How long has it been there?
– When can we expect to get it back?
Key Considerations in Developing an
Inventory System
When FFW decided to implement an inventory tracking
system – we needed to understand our utilization needs:
• Working in a cold, humid environment
• Tracking lots of small objects (pallets of 20-40 kegs)
• Prevent vendors and restaurants from removing/
destroying tags
RFID is the Almost Ideal Solution
After looking at 2D and 3D barcodes, RFID proved a
better solution for FFW, because:
• We can scan entire pallets in one step
• The RFID tags are hidden in the kegs, protecting them
to the rigors of “a kegs life”
But, there have been challenges:
• Kegs are liquid filled vessels (dampening RFID signal
strength)
• Currently only using handheld readers
How FFW Implemented RFID
UHF DogBone 2 - RFID tag
hidden between chime and
body
2 PSION handheld RFID
scanners
Experiences so far with RIFD
Implementation and Tracking• Benefits to RFID tracking:
– Fast and efficient pallet scanning
– Kegs returned scratched/dented, but RFID tags remain in
great shape
• Challenges with RFID
– Variations in tag readability from keg to keg
– Reading kegs that are not on the pallet being scanned
– Lack of ability to identify the “missing” keg
FFW Plans to Expand RFID
Capabilities and Integration
• Install fixed readers at key stages in the cleaning,
filling, storage, and shipping locations
• Continue to improve RFID location and readability
• Adapt to both plastic and metal kegs