

Case study
Demand-Driven Brewing: AI-Powered Beer Supply Prediction for a UK Production Facility
Plexteq partnered with a regional beer producer in the United Kingdom to transform their supply chain operations through advanced data analytics and machine learning - aligning production output with real-world demand patterns across retail, hospitality, and logistics distribution channels.
Project Highlights
Industry
Logistics & Retail
Team size
5 engineers
Market
United Kingdom
Technologies
Python, R, Apache Spark, AWS SageMaker, MLflow, PostgreSQL
Expertise
AI/ML, Data Science, Big Data, Data Analytics
Methods
LSTM, XGBoost, SARIMA, Feature Engineering, SHAP
Cooperation
2019 – 2021
Domains
Demand Forecasting, Supply Chain, Production Optimisation
Business Challenge
The UK beer and ale market is one of the most seasonally volatile consumer goods segments in Europe. Demand spikes sharply during major sporting events - the Premier League season, the Six Nations, Wimbledon, and summer bank holidays - only to trough in predictable post-holiday lulls. A heatwave can clear warehouse stock in a weekend; an unexpected wet spell can leave fermentation tanks idle and finished goods accumulating in cold storage.
Our client, a mid-sized independent brewery based in the North West of England, produces a portfolio of ales, lagers, and seasonal craft beers distributed to supermarket chains, pub groups, independent hospitality venues, and regional wholesalers. Despite strong brand recognition across their distribution territory, the company was struggling with a persistent operational tension: their production planning process was not keeping pace with the complexity of modern demand signals.
Replenishment decisions were driven primarily by rolling 4-week sales averages and manual adjustments made by the planning team - a methodology that had served the business well in simpler times but was systematically blind to the layered demand drivers that now shaped their market. The result was a chronic oscillation between over-production and stockouts. Excess stock of slow-moving seasonal SKUs was tying up fermentation and cold-storage capacity, increasing waste from short-shelf-life products, and compressing margins. At the same time, the brewery was routinely unable to fulfil surge orders from key retail accounts during high-demand windows, resulting in contractual penalties and eroding trust with their largest commercial partners.
The brewery’s leadership recognised that closing this gap required a step-change in analytical capability. They needed a production planning system that could ingest multiple demand signals simultaneously, model complex seasonal and event-driven patterns, and translate forecasts directly into actionable production schedules. Plexteq was engaged as the technology partner to design and deliver that system end-to-end.
Key Challenges
#1
Highly seasonal and event-driven demand patterns across retail, hospitality, and wholesale channels made traditional rolling-average forecasting unreliable, leading to chronic over- and under-production.
#2
Fragmented data landscape: sales history, POS data from retail partners, returnable packaging inventory, weather feeds, and brewery process parameters all lived in disconnected systems with no unified analytical layer.
#3
Returnable packaging materials (kegs and crates) were not being predicted alongside beer volume, creating secondary supply shortfalls that could halt production independent of raw material availability.
#4
Production lead times of 4–8 weeks per batch meant forecasting needed to look 90+ days ahead with sufficient accuracy to influence procurement and scheduling decisions before costs escalated.
Solution Delivered
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↳ Data Consolidation and Feature Engineering
The foundation of the engagement was building a unified data platform that brought together every signal relevant to beer demand into a single, queryable layer. Plexteq designed and deployed an AWS-based data lake ingesting five years of historical sales records across all SKUs, daily POS sell-through data from the brewery’s three largest supermarket partners, weather data from the UK Met Office API correlated to the brewery’s distribution postcodes, a structured UK events calendar covering sporting fixtures, bank holidays, school terms, and festival schedules, and returnable packaging inventory records tracking kegs and crates across customer sites.
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Apache Spark running on AWS EMR was used to normalise and join these heterogeneous sources into a consistent time-series dataset at daily and weekly granularity. The feature engineering phase produced over 60 derived variables including lag features (sales 1, 2, 4, and 8 weeks prior), rolling mean and standard deviation windows, degree-day temperature indices, and binary event flags for each fixture in the UK sporting and hospitality calendar. The richness and specificity of this feature set became one of the primary drivers of downstream model accuracy.
↳ Demand Forecasting with Ensemble ML Models
With a rich feature dataset established, the Plexteq data science team evaluated several modelling approaches against the brewery’s requirement for 90-day forward forecasts at SKU level. Three model families were developed and benchmarked:
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SARIMA - SARIMA (Seasonal AutoRegressive Integrated Moving Average) was implemented as the statistical baseline. It effectively captured the strong weekly and annual seasonality present in the sales data and provided interpretable decompositions of trend, seasonality, and residual noise. SARIMA performed reliably on stable SKUs with long sales histories but was less effective on newer craft lines and the irregular impact of major one-off sporting events.
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XGBoost - XGBoost gradient-boosted decision trees were trained on the full engineered feature set. The model excelled at capturing non-linear interactions — for example, the compounding effect of a bank holiday coinciding with a Premier League match week during a warm spell. Hyperparameter tuning was performed using Bayesian optimisation, and SHAP (SHapley Additive exPlanations) values were applied to surface the most influential features per SKU, providing the planning team with a transparent, human-readable explanation of each forecast.
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LSTM - LSTM (Long Short-Term Memory) recurrent neural networks were trained on the multivariate time-series data using TensorFlow. The LSTM architecture was particularly effective at learning medium-term demand trajectories for the brewery’s core lager lines, where sequential dependencies across 6–8 weeks were strong predictors of upcoming volume shifts. The network was trained with dropout regularisation and early stopping to prevent overfitting on the limited SKU-level history.
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Final production forecasts were generated using a stacked ensemble that weighted the outputs of all three models dynamically per SKU - higher LSTM weighting on stable high-volume lines, higher XGBoost weighting on seasonal and event-sensitive products. The ensemble was managed and versioned through MLflow, enabling the team to track experiments, compare model generations, and roll back to previous versions when new data caused temporary performance degradation.
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↳ Returnable Packaging Prediction
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A dedicated modelling workstream addressed the returnable packaging challenge. The brewery’s keg and crate inventory was modelled as a flow problem: units leave the brewery with outbound shipments and return on a probabilistic schedule that varies by customer segment. Supermarkets return packaging reliably and rapidly; independent hospitality venues do so inconsistently; some smaller customers had historically never returned materials at all. Plexteq built a customer-segmented return probability model using logistic regression and survival analysis, trained on five years of invoice and credit-note records. Combining the outbound shipment forecast with the return probability model yielded a 90-day net packaging availability forecast, enabling the procurement team to identify future shortfalls with sufficient lead time to negotiate with suppliers at lower cost — a core operational requirement identified at project initiation.
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↳ Production Planning Integration and Dashboard
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The forecasting engine was integrated directly into the brewery’s production scheduling workflow via a purpose-built planning dashboard. The dashboard presented 4-, 8-, and 12-week volume forecasts at SKU level with confidence intervals, flagged upcoming high-demand events on a visual calendar, displayed projected packaging availability against planned production volume, and generated a recommended weekly brew schedule that respected tank capacity and lead time constraints.
The system was deployed on AWS using containerised microservices, with automated weekly model retraining triggered by each new data ingestion cycle. PostgreSQL served as the operational data store for forecast outputs and scheduling artefacts; the dashboard was built with a React front-end consuming a FastAPI backend, enabling secure access for both the planning team and senior commercial stakeholders.
Key Features
↳ Unified data lake consolidating sales, POS, weather, events, and packaging inventory data
↳ Ensemble forecasting model combining SARIMA, XGBoost, and LSTM for 90-day SKU-level demand prediction
↳ SHAP-based model explainability layer providing planners with transparent, actionable forecast rationale
↳ Returnable packaging availability forecast using customer-segmented return probability modeling
↳ Automated weekly retraining pipeline with MLflow experiment tracking and model versioning
↳ Interactive production planning dashboard with capacity-aware brew schedule recommendations
↳ AWS-native cloud architecture ensuring scalable, low-maintenance production deployment
Business Outcome
The AI-powered forecasting and production planning system delivered measurable impact across every operational dimension the
brewery had identified as a priority at project outset.
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34%
reduction in overproduction waste
91%
forecast accuracy at 4-week horizon
60%
fewer stockout incidents
3x
earlier packaging shortfall detection
With the forecasting system live, the brewery’s planning team replaced subjective rolling-average adjustments with data-driven production schedules grounded in a rich understanding of demand drivers. Overproduction of slow-moving seasonal SKUs dropped significantly, freeing fermentation and cold-storage capacity for higher-margin lines and reducing waste from products approaching their best-before dates.
Stockout incidents during high-demand windows - previously a source of penalty clauses with supermarket partners - fell by 60% in the first six months of live operation. The brewery’s commercial team reported a measurable improvement in account confidence from their retail partners, who had previously flagged supply reliability as a concern in contract negotiations.
The packaging prediction model delivered a step-change in procurement efficiency. The brewery was able to identify keg and crate shortfalls up to ten weeks in advance, compared to the one-to-two-week horizon achievable with the prior manual process. Procuring packaging materials with this lead time reduced unit costs and eliminated the premium charges associated with emergency last-minute orders.
Measurable gains from the engagement
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​​Forecast accuracy of 91% at the 4-week horizon and 83% at the 12-week horizon across core SKUs
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34% reduction in overproduction waste, directly improving margin on affected product lines
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60% fewer stockout incidents during peak demand periods in the first six months post-launch
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Packaging shortfall detection horizon extended from 1–2 weeks to 8–10 weeks, enabling lower-cost procurement
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Planning team cycle time reduced from two days to two hours per weekly scheduling cycle
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SHAP-driven model explainability accelerated planner adoption: the team trusted and acted on recommendations from day one
