Question 1

Which beverage company is the largest in the world?&#10;A) Coca-Cola&#10;B) PepsiCo&#10;C) Anheuser-Busch InBev&#10;D) None of the above

Accepted Answer

C

Question 2

The largest US-based beverage companies tend to focus on alcoholic drinks because they generate the largest amount of revenue.

Accepted Answer

The largest US-based beverage companies, such as Coca-Cola and PepsiCo, actually focus on non-alcoholic drinks such as soda, juice, and water. While alcoholic drinks do generate significant revenue, they are typically not the primary focus for these companies.

Question 3

Which of the following is considered 'aseptic packaging?'&#10;A) Glass bottles&#10;B) Aluminum cans&#10;C) Plastic bottles&#10;D) Cartons

Accepted Answer

Aseptic packaging refers to the process of sterilizing the food product and packaging material separately before filling the product into the package under sterile conditions. Cartons are the best choice for aseptic packaging as they provide a sterile and reliable barrier to protect the product from contamination and are environmentally-friendly. Glass bottles, aluminum cans and plastic bottles are not aseptic packaging options.

Question 4

In the US, which of the following alcoholic beverage product has the lowest excise tax?&#10;A) Beer&#10;B) Wine&#10;C) Spirits&#10;D) All have equal excise tax rates

Accepted Answer

Beer has a lower excise tax rate compared to wine and spirits in the US. As of 2021, the federal excise tax for beer is $0.58 per gallon, while the tax for wine is between $1.07-$3.40 per gallon depending on alcohol content and for spirits, it is $13.50 per gallon. State excise taxes may vary.

Question 5

Outside of the largest non-alcoholic beverage companies, like Coca-Cola and PepsiCo, most non-alcoholic beverages are distributed within the beer supply chain, but alcohol is their main business and money maker.

Accepted Answer

Non-alcoholic beverages are often distributed within the beer supply chain, but for most companies, alcohol is their main source of revenue.

Question 6

Which market participant is largely responsible for alcohol storage and the maintenance of beer tap systems?&#10;A) Producer&#10;B) Wholesaler/distributor&#10;C) Retailer&#10;D) Customer

Accepted Answer

Wholesalers/distributors are largely responsible for the storage of alcohol and the maintenance of beer tap systems as part of their role in ensuring the quality and proper delivery of products from producers to retailers.

Question 7

Many chain stores have category captains, who are individuals funded by the powerful ________ with the intention of maximizing profits for the retailer.&#10;A) Producers&#10;B) Wholesalers/distributors&#10;C) Retailers&#10;D) Customers

Accepted Answer

Category captains are typically funded by producers or manufacturers. These individuals work with retailers to manage product categories with the goal of maximizing sales and profits for the retailer, often through optimizing product assortments, shelf layouts, and promotional strategies.

Question 8

Which of the following is NOT an advantage to self-distribution?&#10;A) Opportunity to build strong relationships&#10;B) Investment in vehicles and maintenance&#10;C) Convey the story of the brand&#10;D) Control pricing and promotions and receive feedback

Accepted Answer

Investment in vehicles and maintenance is not an advantage to self-distribution, but a requirement. The other options (A, C, and D) are all advantages to self-distribution.

Question 9

The alcohol attributable-fraction (AAF) or the proportion of health outcome caused by alcohol, is highest in which geographical region?&#10;A) North America&#10;B) Western Europe&#10;C) Southeast Asia&#10;D) Eastern Europe

Accepted Answer

According to a global study published in The Lancet, Eastern Europe had the highest alcohol attributable-fraction (AAF) for both men and women, meaning that a larger proportion of health outcomes in that region could be attributed to alcohol consumption compared to other regions such as North America, Western Europe, and Southeast Asia.

Question 10

Beverage companies spend lots of money and lobbying efforts to encourage states to adopt bottle recycling laws.

Accepted Answer

Beverage companies often oppose bottle recycling laws because they can increase production costs and add logistical challenges. They typically prefer less stringent recycling programs that do not directly impact their operations.

Deck 13: Beverage Supply Chain Management