Brazilian IoT startup ChoppUP revolutionizes beer serving

Contxto – Beer and technology may sound like an accident waiting to happen, yet ChoppUP is showing otherwise. This Brazilian IoT startup partners with bars and restaurants to implement “bottom-up” draft machines for improved operational efficiency.

While helping partners ration beer and increase revenues, the company is also proving that even the beer industry can benefit from today’s ongoing technological evolution.

Over the last two years, it has raised R$4 million over two rounds from FINEP as well as other undisclosed investors, registering a 50 percent appreciation between the investments. Recently, it also expanded production, started foreign operations, and opened 20 Brazilian franchises. 

Bottoms up 

One of the primary benefits of ChoppUP’s technology is how it eliminates beer waste and increases yields between 20 and 25 percent. On average, a barrel loses between 11 and 38 percent of its contents.

Thanks to ChoppUP, though, the company has installed a valve attached to the bottoms of cups and mugs. With contents coming from the bottom rather than top where spillage is probable, this decreases waste and allows establishments to use up to 99 percent of a barrel. 

“Our product addresses a particular inefficiency of this industry sector, which today has a fleet of obsolete equipment,” said Gil Neto, CCO and co-founder. “With our clear value proposition, we are growing both by replacing and installing new entrants in the market.”

Where does the technology come in? 

Not only has ChoppUP developed a high-tech beer dispenser but a data monitoring service to accompany it. Specifically, the startup uses a subscription model for its solution. Clients can even track sales via self-service devices and telemetry with this. 

Telemetry is an automated communication process where data is collected from remote points and then transmitted to centers for analysis. 

Moreover, partners use the computer and smartphone application to electronically control volume, monitor operations, calculate sales, or even determine the amount of beer foam.

This self-service equipment is integrable with payment and POS management system. It is also capable of pouring any bottled liquid, whether that be draft beer, soda, etc. So far, the startup has served over 1 million cups and 360,000 liters with associated companies. Throughout this process, it has saved over 108,000 liters.

ChoppUP plans to launch new products over the next five years to raise its business potential. Some of these will include household products, new packaging solutions, as well as software development. Specifically, it wants to capture more data via telemetry to benefit businesses, value chains, producers and final consumers. 

There is also immense potential for IoT ventures in Brazil. By 2022, the Brazilian IoT industry could be worth over US$3.29 billion, according to U.S. consultancy Frost & Sullivan. 

-JA