Flagons system update

About eight months ago, we launched the Again Again shared flagon network, allowing consumers to borrow reusable packaging for tap beer. We've been thrilled by the enthusiasm for sustainable practices from some vendors in the brewing industry. However, in many venues, the system has not driven the consumer behaviour change we had hoped for.

Feedback Highlights:

  • App and Credit Card Hassles: Consumers found downloading an app and adding credit card details too cumbersome.

  • POS Integration: Our POS integration didn't have the desired impact, leading us to abandon the second proposed POS integration.

  • Confusion: Customers take a flagon to fill from the shelf and get confused when they are told they can’t buy it!

While this is disappointing, it's a global trend. Significant consumer engagement with reusable packaging only happens in closed-loop environments like campuses and events. Innovation is about trial and error, and we’re ready to pivot to the next solution. Here’s what we’ve learned and how we’re moving forward.

Key learnings:

  1. Technology-Free Borrowing: Borrowing should be seamless, with optional tech features offering added benefits.

  2. Consumer Attachment to Containers: There must be something in it for the consumer to be bothered returning the containers.

What’s next?

Again Again is altering the system somewhat to provide a hybrid model. We will run a cash deposit/return system alongside the tech-enabled model. This will extend the function, but not change what you already have.

  • Purchase and Return: Customers can purchase a flagon. We recommend $8, but can not set this - you must do this as a retailer. Customers can buy as many as they need and return them anytime for a $6 credit at the receiving retailer - this will be set and can not change as customers need to rely on this throughout the network. Retailers may choose to pay this out, but can limit it to a credit on a future purchase.

  • New terms: Soon, we will send you new terms to review. These are comparable to the terms we have tried and tested in the coffee industry for cups - we set the refund credit value only.

Benefits

  • You can sell the flagons, just like you currently sell other flagons. They will just have an added benefit.

  • Customers can buy the flagons without necessarily engaging in the borrow idea, and come to it in time. We remove the confusion.

  • It will drive customers back for future purchases

  • Customers who can’t be bothered downloading the app can still use the flagons - you never know - they may convert to tech in time!

Costs

As we have funded flagons, we are able to keep the deposit/return proposal quite low. This will continue for the foreseeable future but may change in time. It allows us to continue experimenting with the best method to activate behaviour change.

In order to bring the costs for customers in line with this new schema, we will be altering the charge for non-returned flagons to $8.

The $30 minimum monthly fee will stand, and in addition to the app-based facilities that will remain in place, your plan will also give you the benefit of purchasing more flagons at $7+gst. This will create a small profit margin on the sale of the flagon, helpoing the unit economics going forward.

Messaging

We are currently developing new messaging for the scan stations that will give customers the either/or instructions for borrowing and returning. We will send this out once new terms have been agreed.

Timing

We expect to get new terms to you by the end of July. Thanks for your patience.