Opening and Expanding a Brewery. By Matt Couch
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1 Opening and Expanding a Brewery By Matt Couch
2 Background and Bio Brewlab, UK Graduate 2011 IBD Certificate 2011 Victory Brewing Company, PA Brewing Manager 2011 to 2016 Managed Facility Operations in Downingtown Plant 50 barrel brewhouse, 12 x 400 barrel fermentation vessels, 12 x 200 barrel fermentation vessels, 25 x 50 barrel fermentation vessels, 2 centrifuges, 2 plate and frame filters, keg Line, 5 bright tanks Commissioned Parkesburg Brewing Facility 200 barrel brewhouse, 20 x 1000 barrel fermentation vessels Lazarus Brewing Company, Austin, TX Brewmaster
3 Opening and Expanding a Brewery 1 st Questions What is the actual demand potential for my product? New or expansion? New What s your area/region potential? Distribution laws? Cost of rent/lease/own? What is your intention? Expanding Distribution or Brewpub? Territory/area potential for growth? What s my bottleneck?
4 Craft Brewery Production In Top 15 States
5 First Things First for Beginners o Know the laws and requirements of your state/county/borough o Legal/Architectural/Financial advisors familiar with brewery openings and construction are crucial o Do not underestimate the cost of starting a brewery: o Equipment cost, advisors, permitting costs, license costs, construction, materials o Get your financing in order: o Do not accept unfavorable terms o Choose your creditors and investors wisely o Hold out for a good deal and shop around o Use free resources when you can: o Brewer s Association o Suppliers o Probrewer Forum o Government Agents o Local Universities o Fellow brewers o Take care of the advice you take: o Avoid the You don t need to or Should not have to o Remember, easily acquired rarely means quality. BUT MOST OF ALL, DO NOT MAKE BAD BEER!!!
6 Topic 1: Know Yourself o Really analyze the numbers: o Regional brewery vs. Microbrewery vs. Brewpub o Utilize the Brewer s Association website but make sure you interpret the numbers o Pay attention to your area or region to determine how much capacity is needed o Just boiling it down to population doesn t necessarily tell the whole tale o Some modern trends have similar situations buried in history, do not limit your data set o BE BRUTALLY HONEST WITH YOURSELF. Brewery State 2015 Barrelage Percentage Growth 2014 Barrelage Percentage Growth 2013 Barrelage Percentage Growth 2012 Barrelage D. G. Yuengling and Son Inc PA 2,805, % #DIV/0! #DIV/0! Boston Beer Co MA 2,525, % % % Sierra Nevada Brewing Co CA 1,222, % % % New Belgium Brewing Co CO 914, % % % Gambrinus Company TX 679, % % % Lagunitas Brewing Co CA 624, % % % Bell's Brewery, Inc MI 373, % % % Deschutes Brewery OR 345, % % % Minhas Craft Brewery WI 343, % #DIV/0! #DIV/0! Stone Brewing Co CA 325, % % % Ballast Point Brewing & Spirits CA 277, % % % Brooklyn Brewery NY 277, % % % Firestone Walker Brewing Co CA 274, % % % Oskar Blues Brewing Holding Co CO 261, % % % Duvel Moortgat USA MO 245, % #DIV/0! #DIV/0! Dogfish Head Craft Brewery DE 237, % % % Matt Brewing Co NY 223, % % % SweetWater Brewing Co GA 218, % % % Harpoon Brewery MA 204, % % % New Glarus Brewing Co WI 194, % % % Great Lakes Brewing Co OH 166, % % % Alaskan Brewing Co AK 160, % % % Abita Brewing Co LA 155, % % % Anchor Brewing Co CA 150, % % % Stevens Point Brewery Co WI 142, % % % Victory Brewing Co PA 141, % % % 93196
7 Topic 2: Budget o Make sure you budget for everything!! o Do your best to create a budget that is all inclusive o Do your research and shop around to get an idea of what equipment costs. DO NOT JUST ESTIMATE! o Once you have a complete list for a budget, give yourself a grace multiplier for unforeseen additions o After your list is complete, create the overall amount from that o If you don t have the funding needed, now you can cut items if necessary or push to second budget period o Details matter! Quantity Price Per Source Total Price Price Per Source Total Price Racking/Transferring Needs 1.5" TC Tee 10 $39.00 GW Kent $ $19.00 Brewer's Hardwar $ " TC Tee 4 $57.00 GW Kent $ $25.00 Brewer's Hardwar $ " 90 degree elbow 5 $25.00 GW Kent $ $0.00 2" 90 degree elbow 2 $34.00 GW Kent $68.00 $ " 45 degree elbow 4 $40.00 GW Kent $ $0.00 2": 45 degree elbow 1 $45.00 GW Kent $45.00 $ " Sightglass 5 $78.00 GW Kent $ $49.00 Brewer's Hardwar $ " TC Butterfly Valves 10 $79.00 GW Kent $ $47.00 Brewer's Hardwar $ " Sightglass 2 $96.00 GW Kent $ $60.00 Brewer's Hardwar $ " TC Butterfly Valves 4 $79.00 GW Kent $ $57.00 Brewer's Hardwar $ " TC Gaskets 50 $1.50 GW Kent $75.00 $1.00 Brewer's Hardwar $ " TC Gaskets 20 $1.50 GW Kent $30.00 $1.00 Brewer's Hardwar $ /4" Check Valves 16 $9.50 GW Kent $ $0.00 GPI Sanitary 3A Turbine Flow Meter (1.5" TC) 1 $1, GW Kent $1, $0.00 Inline Strainer (1.5" TC) 1 $ GW Kent $ $ Brewer's Hardwar $ Beer Carb Tester 1 $ GW Kent $ $0.00 Hop Torpedo/Dry Hopping Vessel 1 $5, GW Kent $5, $0.00 Yeast Keg 3 $ GW Kent $1, $0.00
8 Topic 3: Enough Money o How much space do you need for a brewery? o Being aware of tank dimensions and equipment sizes is immensely important o Give room to breathe o If it is hard to clean, it likely will not be cleaned right o Cleanliness = Priority 1 o Do not sacrifice brewing space for potential needs elsewhere o One need is actual, one need is potential o Vertical space is very usable o Keep in mind that safe access is crucial o Consult safety mandates before building up o Keep potential risk low!
9 Topic 4: Equipment Selection o Know the PROs and CONs of brewing equipment o When selecting a manufacturer, do your research. o Talk with other brewers who have used or worked with many suppliers o Ask the manufacturer for references o No need to travel when a phone call will work o Not all stainless is equal o Make sure the grade of stainless is guaranteed by the manufacturer o Long term use of acidic cleaners can cause corrosion o Get any and all information possible on the limitations of stainless o Weld quality is immensely important, a good sanitary welder has immense value o Use your connections! o If you can get some work for beer, do so.
10 Single Infusion vs. Step Infusion Mash/Lauter Combo Mash -> Lauter
11 Wort Production Systems Mash/Lauter Combo Pros: Less moving parts and motors Usually cheaper Lower energy usage (i.e. no mash heating) Usually, clearer wort Smaller footprint (less area consumed) Cons: Less control in targeting specific enzyme rest temperature Usually more labor intensive Less error forgiveness Longer brew turnaround times Mash to Lauter System Pros: Faster lautering times which usually translates to more brews per day Greater temperature control Less labor intensive Forgiving of errors Increases wort production potential Cons: Larger area footprint More moving parts and equipment Usually more expensive Greater energy usage (electrical, steam) Worts can tend to be less clear
12 Fermentation Design Cylindro-conical Fermentation Vessel Square Fermentation Vessel
13 Fermentation Vessel Design Cylindro-conical Fermentation Vessels Pros: Improved trub collection Pressure sealed Microbial risk low Can act as maturation vessels Bottom cropping yeast yields greater yeast harvest efficiency Greater/more efficient temperature control Generally easier to clean Cons: Possibility of lower yields Inability to visually monitor fermentation Hazardous if pressure builds in vessel Square Fermentation Vessels Pros: Ability to top crop most viable/active yeast Can visually monitor fermentation performance No risk of pressure build up Cons: Extremely high risk of microbial contamination Difficult to adequately clean Lacking in adequate temperature control Cannot act as maturation vessels Yields are dependent on operating procedures
14 Bright Tank Design
15 Bright Tank Design Vertical Bright Tanks Pros: Create greater hydrostatic pressure Allow for fewer carbonation stones Allow for fewer CIP sprayballs (usually one) Cons: Difficult to modify/inspect elevated areas Consume a great amount of vertical space Consume a small amount of horizontal space May require a larger CIP pump to fight gravity Pros: Horizontal Bright Tanks Consume a small vertical footprint Easier to enter and inspect Cons: Consume a large amount of horizontal space To adequate carbonate, may require many carbonations stones May require multiple sprayballs to maintain adequate cleanliness Does not create greater hydrostatic pressure If not enough carbonation stones, requires external carbonation system that can be difficult to clean
16 Filtration Options Horizontal DE Filter Lenticular Filter
17 Filtration Options Centrifuge Plate and Frame Filter
18 Filtration Options Finings Time and Temperature
19 Packaging Equipment Cans ocans are trendy oless space consumed in material losses oless cardboard utilized oless weight to packaged materials ogreater package diversity oless distinguished (perception) ouv protected Bottles o Distinguished perception in market o Heavy weight to material losses o Heavy weight to stored empty containers o Large amount of cardboard in waste and pre-package materials o Classic craft package o Excellent choice of high performing packaging lines o Greater package space consumed
20 Packaging Options Kegs o Sixtels or less o Less volume per pallet o More safely stacked o Easier to accept by accounts o Less efficient filling times o Easier to move and handle o Half Kegs o A lot of volume to accept for accounts o Greater volume per pallet o Greater weight per pallet causing collapse issues o More efficient filling times o Strenuous to maneuver Growlers/Crowlers o Growlers o Distinguished appeal o Refillable o Can be counterpressure filled (certain types) o Bulky and must be remembered o A lot of storage space needed o Crowlers o Trendy o Much more easy to transport o Easy to recycle o Single use only o Larger amount of waste created
21 o o o Expansion Considerations Desired maximum capacity o o Understand your sales potential and do not over shoot it Create a demand first and make sure it is secure What is your current bottleneck? o Can your expansion be solved by more accumulation on the bottling line? A faster filler? o Can staffing solve production needs? 24/7 scheduling? o Will a bottle warmer save you time? o Is switching the brew house configuration an option? Keep in mind, under shooting is better than over shooting
22 Site Specific Questions Brewpub/Micro o Location accessible to frequent traffic o Strongly consider minimal automotive traffic o Know your demographic and your potential saturation level o If distributing, you must have space for package storage and distribution pick ups o Know your water, test multiple times o Know the constraints of your wastestream o Be sure to get a spent grain removal connection Regional/Distribution o Ensure location accessible to large tractor-trailers o Provide yourself with large space available for further development o What is the history of the land? Waste disposal at any point? o Will you rent or own? o Keep major transportation routes close (major highways, shipping ports, railways) o Consider waste removal and ensure waste treatment plants have the capacity to undertake large demand o Water drainage and recovery may be considered
23 Providers and Suppliers Brewpub/Micro o Prices tend to be greater for most suppliers o Does it not make sense that being in bulk saves you money? o Consider unifying to expand purchasing power o Just because your cost is less of an issue on the small scale does not mean it should be acceptable to waste money o Likely, some suppliers will have minimum orders/contracts beyond your ability o Contract terms can be shorter Regional/Distribution o Much greater buying power via volume demands o This will lead to much more favorable pricing but for longer terms o Be very careful of over contracting. Doing so can be devastating to suppliers and to breweries o Cost per barrel becomes much more crucial, cost of malt, hops, water, utilities, waste, packaging o Greater access to suppliers and distributors o Be sure to have someone to be in contact constantly with all suppliers Relationships have no actual value but can pay dividends over and over!
24 Thank You Keep In Touch: Matt Couch Brewmaster Lazarus Brewing Company
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