In 2016, a major National Beer Company reached out to Parallel Products with a unique challenge: they needed an efficient and reliable solution for recycling unsaleable beer. This unsaleable beer, whether due to overproduction, product recalls, expiration, or other factors, represented a significant loss for the company. However, this beer also presented an opportunity—tax recovery on unsaleable products that could help recoup some of their losses. The beer company was already working with another recycling partner, but they were seeking better service options and a more comprehensive solution for both recycling and tax recovery.

The Challenge

The beer company’s previous recycler had not been providing the level of service they required on a national scale, nor did they offer the tax recovery guidance that could maximize the company's potential savings. The beer company wanted a partner who could not only handle the large volume of unsaleable beer but also provide the necessary documentation to secure tax refunds. They needed a solution that could help them recover a portion of the costs associated with the unsaleable products through tax refunds.

With warehouses across the country, the company needed a national partner who could manage large-scale logistics, provide seamless service, and ensure compliance with federal and state tax regulations related to unsaleable product recovery.

The Solution: Parallel Products

Parallel Products stepped in with a tailored proposal that addressed both the recycling and tax recovery needs of the National Beer Company. Parallel Products presented several national recycling service options that aligned with the company’s operations and scale, emphasizing their ability to manage the logistics of unsaleable beer recycling from multiple locations across the country. Parallel Products also highlighted their expertise in providing documentation for tax recovery, explaining how they could help the company navigate the complex process of recovering taxes on unsaleable beer.

After several discussions and negotiations, the National Beer Company made the decision to switch from their previous recycler to Parallel Products. The company signed a contract to handle their nationwide recycling and transportation needs, as well as to assist with the preparation and submission of tax recovery claims.

Execution and Implementation

From 2016 to 2023, Parallel Products successfully processed over 14 million cases of unsaleable beer for the National Beer Company. This large-scale operation involved

coordinating transportation across multiple states, ensuring that the beer was handled responsibly and in compliance with local, state, and federal regulations. Parallel Products’ dedicated team worked to manage the logistics, handling, and recycling of the beer, all while ensuring minimal disruption to the client’s operations.

One of the key aspects of the service provided was the ability to track and document each load of unsaleable beer. Parallel Products utilized sophisticated tracking systems to maintain accurate records of the beer being recycled, including volumes, product types, and destruction methods. This documentation was critical to the tax recovery process, as the client needed precise records to submit claims for tax refunds.

Parallel Products worked closely with the National Beer Company’s accounting and legal teams to ensure that all necessary documentation was provided to meet the requirements for tax recovery.

Results: Over $20 Million in Tax Refunds

Parallel Products' comprehensive recycling and tax recovery solution delivered remarkable results for the National Beer Company. From 2016 to 2023, they were able to recover more than $20 million in tax refunds. These funds were critical in offsetting the costs associated with the disposal of unsaleable beer.

Ongoing Partnership and Continued Growth

The partnership between Parallel Products and the National Beer Company has continued to thrive, with services expanding to accommodate the company’s growing product line and increasing volumes of unsaleable beer. As the beer company continues to innovate and expand its offerings, Parallel Products remains a trusted partner, providing ongoing tax recovery guidance and managing their nationwide recycling needs.

Conclusion

The collaboration between Parallel Products and the National Beer Company demonstrates the power of combining efficient recycling services with expert tax recovery support. By addressing both the logistical challenges of recycling unsaleable beer and providing essential documentation for tax recovery, Parallel Products has delivered over $2 million in tax refunds to the National Beer Company. The ongoing success of this partnership highlights the value of working with a trusted recycling and tax recovery partner, and it underscores Parallel Products' commitment to providing comprehensive, cost-effective solutions to their clients.

Parallel Products continues to be a reliable partner, helping the National Beer Company navigate the complexities of unsaleable product recycling and tax recovery while driving sustainable business practices.