Efficient and Sustainable Hops Ensure Creative Craft Brew Hoppy-ness  

2 bottles of hospteiner

By: by Gerald Dlubala

Sustainability is at the forefront of brewing in general, and it’s a focus point in each specific aspect of the brewing process,” said Doug Wilson, Director of Sales and Marketing at Hopsteiner, recognized as one of the largest global vertically-integrated hop growers and distributors in the world. “The sustainability mindset naturally carries over to a brewmaster’s ingredients, including the hops they choose. Likewise, craft brewers need successful and sustainable hops to replicate their beer offerings. Fortunately, we have experienced a quick rebound in crop growth and availability as hop growers after the recent heatwaves and drought that proved harmful to many hops, malt and barley growers. That rebound, combined with the general open-mindedness of both craft brewers and craft beer drinkers, lends itself to a successful and sustainable relationship between brewers and hop growers.”

  Hopsteiner utilizes a genome breeding program that is molecular marker-assisted, identifying the key and desirable traits they want available in their hops. The hops are, in turn, bred to be stronger, more resistant, and ultimately, more efficient and sustainable. For example, Hopsteiner identified the powdery mildew resistant component in hop strains and, through selective breeding, now offers those popular hop varietals with bred-in powdery mildew resistance traits.

  “Brewers look for a couple of things in their hop provider. Usually, it centers around cost savings and sustainability. Sustainability means new agronomically superior and disease-resistant varieties requiring less spraying and fertilizing, ultimately producing higher yields with more drought resistance. By providing our own breeding technology, Hopsteiner can offer products like Salvo, derived from CO2 hop extract and predominantly containing hop essential oils and beta acids, that can be used in hot applications without adding bitterness or causing beer loss. Its use has also reportedly extended the shelf-life for hoppy-style brews,” said Wilson.

  “We see a lot of the sameness in brewing. When I say sameness, I’m talking about a combination or mix of hops used to produce a particular flavor profile. But that sameness can also bring about a hesitation by consumers to try a new beer if they see a hop flavor profile with which they are already familiar. That type of consumer behavior directly opposes the inherent purpose of a great brewpub.

  The true craft brewer wants their consumers to want to try new flavor profiles, aromas and combinations. And one of the best things we, as hop growers, can tell a brewer is, with prices of most goods going up, the costs of hops aren’t that bad right now. On top of that, there are new varieties available to the craft brewer that will produce those new formulas and beers that can lure in, excite, and satisfy the craft beer consumer.”

  Hopsteiner offers the familiar products they’ve traditionally provided. They can drive additional efficiencies into those offerings using their in-house programs, allowing craft brewers to dare to be different. For example, Hopsteiner’s Tetra-S, derived from CO2 hop extract, provides an excellent flavor profile and offers foam-enhancing abilities for an increased visual appearance on beers that typically may not show or hold a head of foam.

  “Brewers have to get out of the rut that I feel craft brewing has been in for the last couple of years,” said Wilson. “We help them do that with our breeding program. We use worldwide hop hunters that allow us to offer new genetic materials to bring out new chemical compositions that allow craft brewers to use their creativity. Additionally, by brewing sustainable beers with new flavor profiles and aromas, craft brewers can gain the upper hand in gaining and keeping valuable shelf space that is already limited.”

  Wilson told Beverage Master Magazine that craft brewers must be their own advocates and do their research regarding sourcing hops. “Don’t just take one supplier’s word for it,” said Wilson. “Work on developing a good and comfortable rapport with all your suppliers, and then have open and honest conversations with them about supplies. The market is currently flush with hops. We’ve rebounded quite well from past climate issues in all varieties, with no slowdown in the foreseeable future. As a craft brewer, you have to talk with suppliers to determine where you need to contract supply and those places where you may not need to contract. In some current instances, it can be safer and more economical to play the spot market to fill your hops needs.”

Cryo Hops Offer Sustainability, Efficiency and Savings

  Yakima Chief’s Cryo Hops are processed using cryogenic technology, separating whole hop cones into the concentrated lupulin and the bract, or leaf component. The hops are processed and individually preserved using low temperatures in a nitrogen-rich, ISO-9001 certified production facility with limited opportunities for oxidation from initial separating through the final pelleting process.

  Cryo Hops pellets are the concentrated lupulin of whole leaf hops, housing the resins and aromatic oils that provide an even more intense hop flavor and aroma to your brew. Brewmasters can use these pellets anywhere traditional whole leaf or T-90 hop pellets are used but contain nearly twice the amount of flavor and aroma producing resin content. That extra resin content allows craft brewers to efficiently dose large quantities of alpha acids and oils without introducing astringent or polyphenol flavors or unwanted vegetative material. They also increase yield by reducing brewhouse and cellar trub and offering cost savings and net revenue increases with each batch.

  The pellets are specifically designed to offer efficiency and savings and provide greater sustainability in use, packaging, shipping and storage. The leafy material of the hop cone gets removed during the production process, reducing the overall amount of plant material brought into the brewing process. This reduction further eliminates trub loss and results in increased yields (3 to 5%) and improved quality. Yakima Chief reports that water, malt, utilities and labor are utilized more efficiently for every barrel of beer gained while only requiring half the storage and shipping requirements.

  Yakima Chief’s Cryo Hops perform similar to T-90 hop pellets with comparable density and dissolving characteristics and are appropriate as a full or partial replacement for whole leaf or T-90 pellets. However, they are only dosed at 40-50% of T-90 pellets by weight because of their concentrated qualities. Additionally, they do not pose a clogging risk to heat exchangers because of their fine particle size. They should be added to the kettle late in the process to prevent boiling out the intense flavor and aroma characteristics. Introducing the pellets in the whirlpool is preferred to increase aroma and reduce trub load from significant late additions. Using them in the fermenter is another excellent way to increase aroma and reduce trub loss. Cryo Hops will settle out during standard conditioning and can be fined, filtered or centrifuged.

Creative Hop Use Helps Fuel Growth of No and Low Alcohol Craft Beer

  Once considered a less-than-desirable alternative, low alcohol or no alcohol beer is now widespread and quickly trending upward, with breweries of all sizes taking note.

  In a video address, Richard Hodges, Regional Sales Manager of Yakima Chief Hops, said that the NA and LA beer markets provide an opportunity to shine for craft brewers, allowing them to display their creativity in brewing using a variety of quality, sustainably grown hops.

  “The low and no alcohol beer markets are without a doubt the fastest moving market,” said Hodges. “The last ten years have provided improved methods and innovation in flavor and aroma, thereby enhancing more widespread acceptance of new low alcohol or no alcohol brews. The main consumer base for these markets is the 25–45-year age range with an interest in a healthier beer alternative that fits into a moderation or abstinence lifestyle. In more direct cases, some regions have adopted stricter alcohol laws that have moved beer consumers to try low or no alcohol craft beverages.”

  “The biggest challenge we see in LA and NA beers is the lack of beer complexity and character loss involved due to the absence of alcohol,” said Hodges. “As a brewer, you have the option to either mask that lack of complexity or make up for it by using essential hops and malt profiles. But, of course, we believe it’s always better to make up for any lost taste profiles rather than simply trying to mask them. And because of the continuous growth of NA and LA beer, the improved and successful methods to make up for any lost character and complexity have become available to the smaller microbrewers, allowing them to appeal to and welcome a whole new demographic of potential patrons.”

  Hodges said that bittering hops like Yakima Chief’s Warrior, Columbus, and Chinook offer ways to add the traditional solid-yet-smooth bitterness needed to complement conventional hoppy and West Coast beer styles. Other options, including their Sabro and Talus, will add the fruit and cream, vanilla or coconut flavors to give LA or NA beverages a perceived body.

  Aromas in our favorite craft beers also add complexity but can get lost in the NA brewing process. To add those aromas that get lost in low ester production, Hodges recommends Simcoe, Idaho7 or Eknanot for a sweet tropical smell and an extra layer of complexity. Crystal, Columbus and Nugget varietals will give the familiar and expected woody, green and pungent hoppy flavors that craft beer drinkers expect.

Expect The Unexpected

  New flavor profiles and chemical compositions are quickly becoming available in conjunction with more sustainable sources of hops. As these hops make their way into the hands of creative brewmasters, there’s every reason to believe that craft brewpubs can creatively challenge the patrons’ tastebuds, causing them to raise a glass to an ever-evolving menu, including the exploding no and low alcohol market.

Boosting Brewery & Distillery Business with Entertainment and Lodging  

2 guitarists jumping

By: Alyssa L. Ochs

With thousands of craft breweries and distilleries in operation today, it’s no longer enough to simply produce amazing beers and spirits. Brewers and distillers are quickly learning that to thrive and stand out among the competition, they need to build a unique brand and expand their reach to a broader customer base.

  Some of the best ways to achieve this are to offer entertainment and recreation opportunities for everyone to enjoy and onsite lodging that makes an evening out safer and more convenient. With the right event-planning strategy, you can keep consumers coming back to your business even after they’ve sampled everything on the drink menu multiple times.

Types of Entertainment and Recreation

  In recent years, both breweries and distilleries have gotten very creative with the types of entertainment they offer. You’ll regularly find local establishments offering board game nights, yoga classes, musical concerts and karaoke nights. Trivia, open mic comedy nights, painting and crafting events and book club meetings are also held at breweries and distilleries.

  Low-key options, such as yard games and photo booths, are easy options to add, as well as professional networking events, poker tournaments and sport-themed events for big games. Breweries and distilleries can become more involved in their communities by partnering with other businesses to promote local products, nonprofits to support important causes and artists to display pieces of original artwork on the walls. Meanwhile, it’s fun to host holiday-themed festivals, offer educational brewing or distilling lessons and highlight new beverage releases in a way that entices people to walk through the door.

  Dana Koller, the president of Kaktus Brewing in Bernalillo, New Mexico, told Beverage Master Magazine that his brewery’s most successful events have been celebrating Oktoberfest, St. Patrick’s Day and other cultural events. Kaktus always has a full lineup of exciting events on the brewery calendar and offers small-batch brews, organic bites, and a refreshingly chill atmosphere.

  “I think what makes them successful is that we are genuine about the celebration and not just there to make a quick buck,” Koller said. “Although we may not be the most authentic option, we make sure that we have a blast doing what we do and show our appreciation for those wanting to celebrate.”

  On the distillery side of things, Sledge Distillery in Tolar, Texas, has been adding lots of events to its calendar lately, including tastings, tours, food, retail offerings and live music. Sledge Distillery specializes in hand-crafted spirits based on a World War II family moonshine recipe.

  “Private shopping nights for new releases have been very successful,” said Susan Sledge. “Also, we have found that the addition of live music adds to the atmosphere. Our clients are looking to re-engage with us and bring their friends along. We consider their repeat business a huge honor.”

Onsite Lodging Options

  Another unique idea for breweries and distilleries to consider is adding lodging near the taproom to welcome overnight guests. Some craft beverage producers have locations in historic buildings that can be renovated to include accommodation in an adjacent space.

  Alternatively, producers can purchase or build a separate building that provides lodging on the same property. Not only is this a good way to keep customers safe from drinking and driving, but it’s an opportunity to make your business a true weekend destination rather than just a quick stop along the way.

  One brewery that has added lodging to its offerings is Riff Raff Brewing Company in Pagosa Springs, Colorado. Founded in 2013, Riff Raff operates in a historic, Victorian-era house in the downtown area and offers flagship beers, seasonal taps and eclectic twists on favorite foods. Visitors can currently rent apartment units above the downtown brewpub through Airbnb.

  “The building that houses Riff Raff Brewing Company is registered on the Colorado State Historic Preservation roll and has been used and repurposed multiple times since it was built in 1898,” said Jason Cox, founder and CEO.

  “When we purchased the building and opened the brewery in 2013, the upstairs housed apartments with long-term rentals,” Cox said. “We underwent a major remodel in 2015 and converted to short-term rentals because of the fact that there was a brewery downstairs. We thought it would be a type of beer-and-breakfast kind of offering!”

What Consumers Want Right Now

  There is a high demand for entertainment options at breweries and distilleries because people are looking for fun ways to get out and experience their communities in different and social ways. Breweries and distilleries have emerged as ideal destinations for date nights, family-friendly fun and free things to do that don’t require a big commitment. Many businesses are finding success with inclusive events that are pet-friendly and welcome children. You can give consumers what they want by keeping participation costs low or free, offering something different from what they can find anywhere else in town, providing fun photo opportunities and maybe even selling specialized merchandise to mark the occasion.

  “I think what people are looking for is true community, a place and time to connect without expectations,” said Koller. “The music and events are the excuse to get out and socialize for them.”

  “Our customers are looking for a way to relax and take a break from the pressures of life,” said Sledge. “Our distillery is located in the country and gives our guests a feeling of truly ‘getting away.’” 

  “I can’t speak directly to data or analytics, but I do know there are several experiences where lodging is packaged with craft breweries, and it creates a more complete experience,” said Cox. “Our friends own a brewery in northern New Mexico that allows camping on the premises, and they have lots of concerts, so it provides an opportunity to have an immersive guest experience. We aim to do the same type of thing with our lodging above Riff Raff Brewing Company.”

Considerations for Breweries and Distilleries

  Planning events may seem overwhelming to some brewery and distillery owners because it’s just one more thing added to the to-do list and budget. It often pays off in terms of business sustainability and professional satisfaction in the long run. Events, recreation, entertainment and lodging provide fun opportunities in relaxed environments to build your brand and get people engaged with what you’re doing. It’s an effective way to make personal connections with your customers and perhaps even raise money for charitable causes.

  There are many things to think about when planning a new event, type of entertainment or onsite lodging. Cost tops the list since some things will inherently cost more than others. If the event requires renting or buying extra furniture, party supplies, or sound equipment, you’ll need to budget ahead. Although it may be an initial goal to make extra money from an event, it might be worth it to break even for the sake of outreach and exposure. Breweries and distilleries with large spaces may be able to rent out entire sections of the building or property for private events and make extra income in that way.

  Regarding onsite Airbnb offerings, Riff Raff’s Cox sees significant benefits in breweries entering the lodging business.

  “We rent more than 325 nights a year in each of the two rentals, which include a three-bedroom, two-bath unit and a one-bedroom, one-bath unit,” Cox said. “We do see people who book because it’s above a brewery, and they definitely want that experience. Sometimes I conduct VIP tours and add other offerings for guests who stay upstairs.”

Event Planning Tips

  When considering hosting an event, make sure to see what else is already scheduled in the community so that there are no conflicts that would prevent someone from attending what you have planned. In general, it’s best to keep the event size manageable so that the lines for beverages don’t get too long or the spaces too crowded. Fun themes will catch people’s attention, while free and low-cost ticket prices will make your events more accessible to everyone.

  Recurring events, such as activities that happen on the same day each week, make scheduling events easier and allow more people to participate when it works for their schedule. It may also be worth inviting another local brewery or distillery to co-host your event.

  Koller from Kaktus Brewing said that one of the most important things to plan for when hosting events is “making the numbers work so that you are not understaffed since this is always a major challenge.”

  “From the moment a guest arrives on property, we want them to feel welcome,” said Sledge. “Signage has been strategically placed, so people know where to go and the options they have for entertainment, food and beverages. Our employees are intentional about greeting guests and orienting them to the facility and events.”

What’s Next for Craft Beverage Entertainment?

  Producers are just getting started with what they have in mind to entice craft beverage enthusiasts.

  “For Kaktus Brewing, we have been working on plans to expand parking to host larger events with games, a new stage, more shade structures and outdoor cooking,” said Koller. “This will allow us to do full weekend events instead of just evening events.”

  “We are programming smaller, more intimate events where people share a particular interest,” said Sledge. “For example, we are doing a three-event women’s workshop called ‘Feel Good Fridays’ where the group has drinks with a licensed therapist who facilitates a group session on various topics.”

  Meanwhile, Cox recommended that any brewery looking to add short-term lodging should check with the local planning or zoning department to understand rules regulating short-term rentals.

  “Depending on the type of zoning district, it may or may not be allowable for a brewery to offer lodging,” Cox said. “After that, I would put myself in the shoes of a guest to understand the entire experience. For example, some of the equipment that a brewhouse uses runs 24/7, and the noise could have an impact on the lodging, depending on the configuration. Beyond that, I would say to create a great experience for the guests and make it happen. Remember, it’s all about the craft beer and having fun with it.”

Bottling & Canning Innovation

Companies Deliver Premium Technology, Raising the Stakes in Productivity!

bottling and canning process

By: Cheryl Gray

When it comes to bottling machinery for craft breweries and distilleries, technology is king.  The work that goes into fabricating, filling and sealing bottles and cans begins with the expertise of companies that understand what craft brewers and distillers need most—a cost-efficient way to boost output while also protecting the integrity of their products.  

  One of those companies is Pneumatic Scale Angelus, part of BW Packaging Systems. The Ohio-based firm is a global industry leader in designing and manufacturing beverage canning lines and filling technology for the craft beverage industry. The company’s numbers are impressive, starting with its years in business—more than 130. It has seven manufacturing locations and more than 700 members on its worldwide team. 

  Pneumatic Scale Angelus has installed more than 16,000 canning operations across 132 countries with applications that include liquid and dry filling, capping, can seaming and labeling. Global Marketing Director Gigi Lorence said that as an expert in beverage canning lines and filling technology, the company has built a reputation for knowing how to leverage the innovation of its high-speed beverage lines, scaling them down to the slower production speeds and lower volumes required for craft beverages. Lorence broke down the specifications for the company’s inline volumetric canning lines.

  “Our fully-integrated filler and seamer machines allow brewers to take control of their can filling operations. Running at speeds from 15 to 100 CPM, our inline canning machines are suited to small batch production and frequent changeover,” she said. “Our CB50F and CB100F open-air systems use our proprietary flowmeter technology to ensure a perfect fill at speeds to 100 CPM, with a gas flush system that keeps oxygen levels under control. The high-speed seamer design, scaled for single- or dual-head operation, delivers the only repeatable hermetic double seam in the industry. 

  “Our CB50C system leverages the CB50F design but uses counter-pressure filling technology to meet the demand for high-carbonation beverages, including hard seltzers, sparkling wines and high-carb beers. The CB50C uses true isobarometric filling technology, with the fill tank above the fill heads, allowing the product to be gravity-fed, as opposed to pumped upward. This minimizes product agitation for a quiet fill and lower CO2 loss.” 

  For brewers ready for the higher speeds of a rotary canning system, Lorence described PSA’s options for rotary volumetric canning lines. “These systems run from 100 CPM to up to 400 CPM, depending on configuration, which means brewers can expand their overall production without drastically increasing their overall footprint,” said Lorence. “Our larger CB244/324/404 rotary open-air systems serve brewers ready for higher speeds. These systems have 24, 32, or 40 electro-mechanically controlled filling heads that ensure fill level accuracy to within plus or minus 0.5 grams of the target volume and four seaming heads that offer the same industry-leading seal as our slower-speed machines.”

  There is a brand-new addition to PSA’s craft beverage canning lines. Lorence described the CB100C, launched this May at The Craft Brewers Conference in Minneapolis.

  “This rotary counter-pressure system builds upon the capabilities of the CB50C but leverages a 12-head rotary filling turret design, coupled with a dual-station seamer, to allow brewers to increase their throughput to more than 100 CPM. Using a motorized, recipe-driven turret design allows for automatic turret height adjustment,” she said. “Like the CB50C, the CB100C uses a true isobarometric filling, with an onboard product supply tank rated to 60 psi. The addition of the 12-head rotary filling turret enables the system to move more cans smoothly through the line, filling faster without creating an increase in product agitation as speeds increase. This gentle fill virtually eliminates the unwanted reductions in carbonation levels seen with other filling methods.

  “The CB100C also employs magnetic flowmeter technology to help you get a perfect fill with little waste and an under-cover gas flush system to keep dissolved oxygen levels low. In addition, our industry-leading Angelus double-seam technology keeps cans sealed tight, extending critical shelf life. The system is optimized for sleek and standard can bodies and designed with quick-change adjustments for easy changeovers accommodating various can heights and body diameters with no valve change required. A compact footprint and an intuitive HMI for individual fill-head volume adjustments simplify operation.”

  Another expert in bottling and canning operations for the craft beverage industry is XpressFill, a California-based company in operation since 2007. XpressFill offers a broad range of can and bottle filling systems for brewers and distillers, all of which promote ease of use, longevity and post-sale service as a top priority. It manufactures bottle fillers to accommodate volumetric, level fill and carbonated beverage technology, providing for nearly every bottling need. Rod Silver is head of the company’s marketing and sales.

  “XpressFill prides itself on its ability to respond to the needs of its customers. Our support of our products is unmatched,” said Silver. 

  XpressFill specifically targets smaller breweries that need guidance on the best equipment choices for their operations. “All XpressFill products are designed with the smaller, craft artisan in mind. We have been able to build affordable yet efficient and effective filling machines for this market,” Silver said. “The most popular filler for distillers is the XF460HP, specifically designed for spirits, using materials that are more resilient to ethanol. Our proprietary technology allows for filling well within TTB tolerances.” 

  Silver explained how the volumetric filler controls the amount of fill using a precision timer. The filler is calibrated to specifications and capable of accurate fills, regardless of inconsistencies in the bottle glass. The volumetric filler is also suitable for bottling various sizes, even down to 50 ml bottles.

Silver said XpressFill’s most popular products for craft brewers accommodate both cans and bottles. “The most popular fillers for brewers are the XF4500C (cans) and XF4500 (bottles). Both fillers use counter-pressure to minimize oxygen pick up during the fill.”

  Silver told Beverage Master Magazine that all XpressFill systems have a pre-fill CO2 purge cycle. The company’s counter-pressure systems require a minimal air compressor to operate the pneumatic actuators. Open can fillers have a moveable shelf that is easily adjustable for various sizes, with a maximum can diameter of four inches. 

  The counter pressure filler has a stopper that fits tightly into the can or bottle opening to seal and pressurize the container. Filling a container, Silver said, is an exact science. XpressFill’s level fillers control the rate of fill using a level sensor. As the liquid reaches the sensor, the filler automatically stops the fill. The liquid level is set by adjusting the height of the shelf, which can be adjusted to about one-sixteenth inch increments. The level filler can be used for all products, including wine and distilled spirits. Silver said that the level filler is perfect if the sightline in the bottleneck is a concern for shelf presentation due to glass variations.

  Although Colorado-based Ska Fabricating was born out of the need to address the brewing, packaging and distribution of Ska Brewing, its innovations have helped breweries worldwide.  

  Marketing Director Elise Mackay described the company’s most popular depalletizers. “Our most popular can depalletizer is the Can-i-Bus. It is our original depalletizer, obviously updated and

improved upon many times since its creation, and a full-height automatic depalletizer that is capable of speeds up to 250 CPM. It comes with three different trim levels that come with a variety of different features. It’s perfect for mid-sized operations and a great option to grow into for smaller operations,” said Mackay. “Our Nimbus is like our Can-i-Bus Jr. It features the same robust construction and pallet sweep mechanism that the Can-i-Bus does but uses a rotary table discharge that allows for additional accumulation with the added benefit of being able to fold down to save space when it isn’t in use. The Nimbus is also portable. You can use a pallet jack to move it from your production floor once you’re finished with your packaging day, so it’s perfect for smaller-scale operations looking to grow.” 

  Mackay said that innovation is always at the forefront at Ska Fabricating. “The newest addition, the Microbus, is our smallest footprint, most flexible, most affordable depalletizer yet. It’s rated up to 30 CPM and is an ideal product for operations that are just getting started in canning. Low speeds, manual pallet lifting, and ultimate portability make the Microbus special. It features the same foldable rotary table discharge that I mentioned with the Nimbus, but it also has a foldable dead plate, so when it’s completely dismantled, the footprint is minuscule.”  

  Mackay points out why her company is considered in the industry as, in her words, the “likable expert.”

  “We have an incredible team of engineers that create robust and reliable machines and then work with every single customer to create custom layouts to suit their exact needs; a personable and reliable sales team with tons of brewery and packaging experience; an installation crew that will travel to the ends of the earth to set our customers up for success; and a top-notch customer support team that is available 24/7 to assist with any issues that arise.”

  Industry experience, innovative products and after-sale customer service are common threads among these companies. These experts say that this combination is what breweries and distilleries should look for when choosing a company for bottling and canning products.

The Golden Beers of South Africa

By: Hanifa Sekandi

In North America, beer is a much-loved beverage. It is the go-to drink during cottage season. It is a trusted companion for every sports event. It is the bridge between strangers who will find themselves bonding over a pint. Everyone has their favorite brew. Brand loyalty is common and set at a high standard. Just take a stroll through a tailgate party, and you will see what beer drink-ers prefer. Imbibing beer is a culture that spans the globe. Each country has its unique approach to this nuanced fermented beverage. As we travel to South Africa, you will learn about its rich history of beer.

  In South Africa, the sun’s heat will graze your skin as the sound of life in this vibrant country will propel you to live boldly. Truly, those who have been to South Africa will tell you there is nothing like it. It is an experience that will change you in ways you could not imagine. South African people and the culture awaken the soul.

  As you raise your glass in the celebration, you cannot help but feel the rhythm of South African Zulu dancers. They harmonically chant songs about better days ahead, accompanied by the rhythmic-thunderous sound of the djembe drums. When we drink beer, we dance and sing. We gather with friends and family to tell stories; feel connected. Beer is the ultimate connector where alcoholic beverages are concerned. Even for those who do not prefer beer, a light lager is an exception. When you attend a gathering in South Africa, coolers will overflow, and beer runs throughout the party are continuous. Sounds a lot like North American beer culture, doesn’t it? So, what makes South Afri-can beer culture so unique? More importantly, how did beer become a star beverage in this Afri-can country?

Golden Brew Beginnings In South African

  Along with wine in South Africa, European immigrants – Dutch and British settlers – brought their beer-making knowledge to this country. One cannot solely attribute their arrival for the presence of alcohol, since traditionally made alcoholic beverages existed before. However, their presence ushered in the beer industry and set forth a new enterprise that has thrived for more than 300 years.

  The beginnings of the European golden brew in South Africa first began in the mid-1650s with the Dutch. An excerpt from Jan van Riebeeck’s diary noted that the first bottled beer was brewed on October 4, 1658. Similar to wine and other spirits, beer was used for its medicinal properties. Since beer was initially brewed to treat scurvy, the Nieuwe Haarlem shipwreck that landed Dutch sailors on South African soil may have been a saving grace for the scurvy-ridden explor-ers.

  The idea that beer is deemed a beneficial natural beverage in some countries still exists. Of course, with modern beer-making and innovative methods, the composition of beer has changed, particularly when one looks at commercially sold beer brands. Concerning local homebrews, this belief is still firmly held. As with spirits, the purpose evolved as the desire for beer and its use changed. When European settlers first arrived on South African shores, it was essential to elimi-nate the plague impacting trade between the East Indies and the Netherlands. One could say that the recreational consumption of alcoholic beverages is a haphazard event. The original intent was not to intoxicate people or add more fun to the party.

  Malan Liquor Commission in 1960 noted its concern about the intoxicating effects of beer and liquor. This assessment concluded that alcoholic beverages should be consumed with care and with food. As a result, an initiative was created to stabilize drinking habits. It also demonstrated how what was once an essential remedial beverage had transitioned into a leisure one. At the time, beer still held a high standard where natural beverages were concerned. Unlike spirits, it was dubbed a drink consumed by moderate drinkers.

  A seed must be planted to see growth, quite evident today in the rapidly expanding beer industry in South Africa. The burgeoning beer industry was not foreseen at its inception or use in the mid-17th century. One would not know its initial purpose unless they did a deep dive into its begin-ning.

  South Africa now takes up significant space on the world stage with approximately 34% beer consumption, a number expected to grow roughly 10% annually. South African Breweries (SAB), established in 1895, holds a monopoly on beer production and distribution in South Africa. It is the largest brewer and is a subsidiary of AB InBev, with seven breweries operated under its helm. It maintains an impressive annual brewing capacity of 3.1 billion liters. Familiar premium beer brands Hansa Pilsener and Carling Black Labels are among their diverse portfolio of beers.

Competing with Local Brews

  As the beer industry expands globally, it may appear that local or homebrews are popping up out of nowhere. The truth is, local brews and brews endemic to the land have always been there. For example, Bantu Beer, an essential part of the Bantu tribe’s life, is a traditionally brewed beer. The Bantu create this beer with water and kaffircorn. The consistency of this brew is quite thick – almost smoothie-like – since it is partially strained. It is considered a food and drink for this tribe. What differs from European beer is the fermentation process. Bantu beer is fermented until it begins to sour. European beer is pasteurized after bottling. The longer fermentation process that Bantu beer undergoes creates a higher alcohol content.

  The legalization of Bantu beer for sale in 1962 could be attributed to its mainstream prevalence. People are looking for something that cuts through the norm. Bantu beer, along with other homebrews, satisfies this desire. It also encourages new brands to enter the market and perhaps borrow from traditionally made brews to expand the South African beer market with something somewhat familiar. When looking at the South African beer market, Bantu Beer is a nouveau niche beverage for those unfamiliar with South African culture or traditional drinks. Its con-sistency also sets it apart from the silkier texture of most beers.

  Industrially-made Bantu Beer changed in composition. Now, the mash consists of maize grits combined with kaffircorn malt. These changes are spurring more innovations to expand Bantu’s profit potential. Breweries are looking to entice niche beer consumers who want to drink premi-um, naturally brewed beers or beers that support their lifestyle. Microbreweries trying to break through the market may take the lead and tap into local blends.

Sharing Traditions

  The changing political and economic landscape in South Africa is a nation of people who en-dured the cruelties of apartheid. For this country, it is time to rebuild and restore. Imagine being born in a country where you have no rights? A land where your ancestors lived freely for thou-sands of years and have no right to live off the land? Or make profits from your labor? South Africans are claiming not just their land but their birthright to live freely, feed their families and create a life for themselves.

  This shift also extends to the beer industry. Local brews are owned and made by South Africans. Breweries owned by the Xhosa, Sotho and Zulu tribes are making beers used for cultural practic-es. For example, The Xhosa beer is shared as a beverage of reciprocity during the harvesting of crops, a time that requires neighboring farmers to come together for additional labor. Beer is of-fered as a way to show appreciation.

  Sorghum, gluten-free beers made by modern breweries are most likely borrowed from these tribes. The traditional beer, Umqombothi, is made using sorghum malt, maize malt, corn maize, water and yeast. Another noteworthy find highlights that gluten-free, digestive-friendly beers are not an innovation. As the South African beer industry continues to soar, Umqombothi will be-come the brew watch since it meets the desires not just of the local consumer but tourists who prefer locally made beers low in alcohol and gut-friendly. A beer with a smooth texture and slightly sour aftertaste refreshes the tastebuds. A great sipping beer enjoyed without the over-whelming intoxicating effects experienced with other beers. The art of making this traditional beer passes through generations. It is also brewed in South African homes with unique spices, herbs or citrus additions to create new flavors.

  If you ever find yourself in this beautiful country, tasting local beers is a worthwhile experience. Travel back in time with each sip and feel the warmth of the South African people.

Sake To Me!

person pouring sake to a cup

By: Tod Stewart

It’s “rice wine.” You serve it hot. It comes from Japan. And it only really pairs well with Japanese dishes like sushi and sashimi. Well, no, no, not necessarily, and no. If there’s a misunderstood libation in the world of alcohol, sake is surely it. However, once you dispense with the myths and misconceptions – and once you treat yourself to some higher-end examples served properly – you’ll likely find sake to be one of the most enjoyable and versatile tipples out there.

  So, first things first: if sake isn’t “rice wine,” what exactly is it? Yes, it’s made from rice, but technically speaking, sake is closer to beer because it’s not fruit-based, and its production process sees starch con-verted to sugar prior to fermentation. (In comparison, wine fermentation involves the production of al-cohol via the fermentation of naturally occurring sugar found in grapes).

  If you’re super keen to learn about sake production, you might want to read all 230 pages of The Text-book of Sake Brewing. Admittedly, it’s not exactly a riveting read, but it is thorough if nothing else. One part of the book I found particularly interesting was the glossary of sake brewing nomenclature. Here, I learned the meaning of such terms as shinseki, hikikomi, tsubodai, dakidaru and bōshitsu. The latter was particularly interesting. Bōshitsu: Accidental disappearance of finished sake. Translated to English: theft.

  Book not for you? Okay, the condensed version goes something like this:

  Sake’s main ingredients are rice, water, yeast and a curious ingredient called kōji. Sake rice (shuzō kōtekimai) differs from table rice in that the grains are typically larger and contain less protein. It is pos-sible to make sake using table rice. Still, for premium sake, true sake rice – you’ll hear names like Yam-adanishiki, Gohyakumangoku, Miyamanishiki and Omachi thrown around by sake geeks – is de rigueur. The reason is that the rice, at the start of the production cycle, is first polished to remove fats and pro-teins and expose the starch core. Smaller, more brittle table rice grains contain less starch and tend to break apart during the polishing process.

  The degree of polishing has an impact on the “quality” – and price – of the final liquid. The polishing ratio (seimaibuai) refers to the percentage of the grain that remains after polishing (60% seimaibuai means 40% of the rice grain has been milled away). I put the word quality in quotations because I’m un-sure whether the word should be quality or character. Yes, the more the rice is polished, the more subtle and refined the sake’s flavor tends to be. And since there’s physically less rice to ferment, the reduction in quantity leads to an increase in price, which, rightly or wrongly, is typically indicative of higher quali-ty. But in my experience, the result of varying polish levels comes down more to stylistic variation than a case of one being “better” than the other. This brings us to the question of how you, as a consumer, can tell the difference between moderate and high-polish sake. Welcome to the wonderful world of sake classification.

  Within the premium sake (tokutei meisho-shu) realm, there are several “tiers” that correspond to the polish level of the rice used. The highest is daiginjo, with a polish ratio of 50% (or less). This is fol-lowed by ginjo (60% or less polish), honjozo (70% or less) and finally, junmai (polish level not stipulat-ed). So far, so understandable. Where things get a bit dicey is when you see something like junmai-daiginjo. Is this some sort of combination that blends ultra-high polish rice with relatively low polish rice? Though that would make sense in a weird sort of way, when you see “junmai” stuck in front of ei-ther daiginjo or ginjo, it indicates that no additional alcohol has been added. Daiginjo and ginjo, with no qualifier, denote sakes that have a small amount of distilled alcohol added to them.

  Got it? Good. But we’re not done yet. Enter tokubetsu. Tokubetsu indicates that some “special” element has been used during production. The nature of these elements is exactly why Google was invented.

  Now, having a superior rice strain milled to the ideal ratio is still nothing but a pile of – albeit special – rice. As noted earlier, you’ll need water, yeast, and kōji to turn that polished pile into something drinka-ble. Before you can do anything with the rice, though, it needs to be steamed.

  A few years back, I was fortunate to be a guest of the Japan Sake and Schochu Makers Association on a sake tour of (mostly) Hiroshima. On this winter excursion, I was able to see first-hand how all the com-ponents of sake come together.

  I began my days watching clouds of vapor billow out of rice steamers. Steaming typically takes place early in the morning, when most nocturnally-inclined writers are still half-dead. Nonetheless, I bravely hauled myself out of bed to board the bus, don slippery slippers (shoe-wearing being forbidden on brew-ery floors) and observe the rice-steaming ritual. After the rice is washed and soaked to wash away rice dust, it’s steamed to soften the grains, preparing them for the infusion of kōji and ensuring they break up during fermentation. The aim is to get them firm on the outside, soft on the inside.

  When it comes to water used in sake production, there is a distinct difference between the impact of hard and soft water. Hard water has historically been the preference of sake brewers, but soft water is what you typically find in the Hiroshima Prefecture. This area has some of Japan’s most premium sake today, but this wasn’t always the case. About 120 years ago, the water in the region lacked the minerals neces-sary to nourish fermentation. This led to a lackluster brewing reputation that changed when a brewer named Senzaburo Miura, from the village of Akitsu, mastered soft water brewing. He also created a new (at the time) style of sake – ginjo. As the sake produced here started to consistently take home top awards from the Zenkoku Shinshu Kampyou-kai, Japan’s most prestigious sake competition, it focused national attention on the area.

  Yeast and kōji work as a tag team to turn polished, steamed rice and hard or soft water into finished sake. For a sake brewer, a toji, the decision of which yeast strain to use is a very big deal in that it impacts the end product’s aroma, texture, acidity and alcohol concentration. After several hours in a highly technical lecture on sake yeast, I became aware of two things: I have no real interest in learning anything more about yeast, and there are many, many yeast strains from which a brewer has to decide.

  Getting the rice to a state where the impact of yeast actually amounts to something requires the rice to be inoculated with kōji. Kōji is a mold cultivated – or sometimes purchased – by sake brewers. When in-troduced to steamed rice, it initiates the saccharification process. Kōji converts rice starch into sugar that can, in turn, be converted by yeast into alcohol (in much the same way qu acts in the baijiu-making pro-cess).

  If I learned anything from my Japan sake tour, it was this: making premium sake is a very labor-intensive activity, even if modern technology is employed to assist, which is rarely the case with smaller, family-run breweries.

  As fascinating as crafting sake can be, drinking it is much more fun. Of course, these days, trying to find authentic Japanese sake is a bit of a problem due to: supply chain issues, transportation issues, fuel cost issues, COVID, Putin, etcetera, etcetera. The good news is that sake production isn’t confined to Japan. There’s plenty of top-notch sake being created in the United States – Oregon and California in particular. There is even a very respectable sake brewery in downtown Toronto. But if you’re a brewer looking to fill a niche, sake might be something to consider as we’ll likely be depending on local suppliers for a little while yet.

  Assuming you can procure some quality sake from somewhere, enjoying it is basically as simple as get-ting it into your mouth. However, as with many things, a few things can up the pleasure level a bit.

  While you don’t need any particularly fancy glassware, there’s now a Riedel junmai glass available, but a standard ISO wine glass works fine. In any case, serving temperature is probably the most important – and misunderstood – factor when it comes to fully appreciating sake. The most delicate and arguably, complex styles – daiginjo, ginjo, and the like – are best served chilled. More robust types – honjozo, for example – can be served anywhere between fairly chilled and fairly warm. Never hot.

  It’s interesting to see how the character can change based on serving temperature. I remember being at a sake dinner (back in the “before time”) where the sake samurai (yes, there is such a thing) served the same sake chilled with sashimi and warm with pork belly. In both cases, the match worked beautifully. Try doing that with a lager beer. (Sure, a chilled lager with sashimi would work fine; a warm lager with pork—or anything—not so much).

  Which brings me to sake and food. Yes, it pairs perfectly with what we might consider “typical” Japa-nese food. But as with all countries, Japanese food varies considerably depending on which part of the country you are in. So do the sakes from each region. But don’t stop with Japanese food. Sake and cheese can yield some surprising combinations. So can sake with chocolate, sake with nuts, sake with fruit, sake with fried foods….

  So, if you’re looking to expand your knowledge and enjoyment of Japan’s national drink, say kampai to a glass of premium sake…at the proper temperature, of course.

How Beer Wholesalers Can Use The Ansoff Matrix to Grow Sales

The Ansoff Matrix is a tool that can help you build a sales growth strategy and identify opportunities to increase revenue.

The matrix was originally developed as a device for businesses to think about revenue diversification.

Since then, it has been used as a quick and easy way to build a sales strategy while considering the risks of growth.

The matrix breaks down the drivers of sales growth into these categories:

  1. New markets (accounts)
  2. Existing markets (accounts)
  3. New products
  4. Existing products

The matrix then combines these four categories and assigns a relative amount of risk to each approach.

The Ansoff's Matrix

For example, building a sales strategy to focus on improving market penetration with existing customers and products is low risk.

Whereas, diversifying into new products in a new market comes with a higher risk.

How can you use the Ansoff Matrix to Grow Beer Sales?

Use it to ask strategic questions:

  • How can we sell more of our current products to our existing customer base?
    • Could we do better with e-commerce options? Can we improve our marketing (social media, traditional media, events, etc.)?
  • How could we enter new markets with current products (or add new accounts)?
    • Are there opportunities to acquire brand/territory rights or purchase another distribution business?
  • How could we develop existing products or services?
    • In other words, could we market the products differently, could we provide more sales training, could we hire a specialized sales person?
  • How could we move into new markets with new products (or services)?
    • For example, could you sell non-alcohol products to non-licensed accounts (a new market)?

The Ansoff Matrix is a simple and easy way to think about sales growth strategy and find new ways to increase revenue.

Use the matrix to brainstorm ideas and ask difficult (but profitable) questions.

Yours in Sales Growth,

Kary

P.S. Take advantage of the Spring Special and save 33% off the Beer Business Finance SubscriptionUse Discount Code SPRINGCLEAN at checkout.

Your subscription includes access to the library of online courses, back issues of the Beer Wholesaler Financial Newsletter, webinars, podcasts, tools and resources to help you drive sales and profits in your beer business.

3 Spring Cleaning Tips to Make Your Wholesaler Finances Sparkle

Spring is the perfect time to clean up your wholesaler finances and make ready for the summer selling season.

In this post, we’ll share 3 Spring Cleaning Tips to Make your Finances Sparkle:

  1. Organize your corporate documents: Use the checklist to scrub your important papers
  2. Count your inventory: Borrow the process to keep your inventory records nice and tidy
  3. Review the balance sheet: Download the White Paper and learn how to keep your financial statements squeaky clean

Spring Clean Tip #1: Organize Wholesaler Corporate Docs

If you’re like most wholesalers, you have corporate records stashed everywhere. Some are tacked to the wall, others are in your desk drawer or saved on your laptop.

Corporate records are important because they show that you have the proper licenses, filings and legal standing to operate your wholesaler business.

Corporate records are critical to maintain your ‘corporate’ status and the liability protections this provides.

Examples of corporate records include:

  • Articles of Incorporation
  • Bylaws
  • Stock certificates
  • Stock ledger recording each stock issuance or transfer
  • Minutes of meetings of the directors
  • Corporate seal

If you don’t have the time or patience to locate and organize your corporate records consider hiring an attorney to do it for you. They won’t be cheap, but they will make sure all the necessary docs exist and are properly filled out.

Corporate docs are super important to preserve the ‘corporate veil’ and protect you from liability.

If you plan on borrowing money, banks need to see this information. If you plan on bringing on an investor, or eventually selling, investors / buyers will insist on complete and accurate corporate docs.

If you want to do it yourself, use the Corporate Docs Checklist as a guide to get started. Spring is a great time to locate, organize and clean up those corporate documents.

Spring Clean Tip #2: Count your Inventory

Counting inventory can be difficult, time-consuming and un-productive. But these things only happen when you do it the wrong way.

Use this Inventory Counting Checklist to count the right way.

You’ll find it takes less time and will get you the results you want: accurate inventory on the books. Everyone wins.

Spring is a great time to clean up your inventory. Use the process, and make it count.

Spring Clean Tip #3: Reconcile the Balance Sheet

Your balance sheet reports on your assets, liabilities and equity. It shows what you own, what you owe, and the net worth of your business.

Unfortunately, the balance sheet is often filled with financial mistakes.

Assets may be listed on the balance sheet that don’t exist any longer. Lost kegs anyone? How about that old inventory you haven’t written off yet?

Prepaid expense is another hiding spot for balance sheet errors. Items get booked here and never removed. Prepaid hops or prepaid insurance are common items that get stuck in here.

Need some guidance on how to get started with the balance sheet clean-up? Check out this post and podcast: How to Fix These Common Wholesaler Financial Problems

Wrap Up + Action Items

Spring is the perfect time for a financial clean-up. Start with a purge of your old financial records. Throwing things away feels good.

Use the document retention guide to identify what can be tossed out. Hire a shredding company to do the dirty work.

Next, do a full physical count of your inventory. You wouldn’t dream of delivering inaccurate customer orders, don’t operate your business with incorrect inventory records.

Finish the spring clean-up with a review of your balance sheet. Lots of financial mistakes get stuck here and need to be scrubbed clean.

Warm weather, sunshine, and increased sales are on the way. Now is the perfect time to make ready with a financial spring clean-up.

Yours in Financial Spring Cleaning,

Kary

P.S. Take advantage of the Spring Special and save 33% off the Beer Business Finance Subscription. Use Discount Code SPRINGCLEAN at checkout.

Your subscription includes access to the library of online courses, back issues of the Beer Wholesaler Financial Newsletter, webinars, podcasts, tools and resources to help you drive sales and profits in your beer business.

Low-Alcohol Beer: How to Answer This Global Trend?

fermentis banner

The global beer market, both in volume and value, has seen great expansion for many years. This growth in demand has seen both a rise in the number of breweries and an expansion in beer style diversity. Among these styles, one of them is emerging significantly around the world: no and low-alcohol beers (NAB-LAB).

A bigger market provides a larger consumer panel with different expectations and desires. Low-alcohol beers emerged to meet a need which only existed moderately in the past. Indeed, an entire segment of consumers has grown with an education around well-being, the “well-eating” and now the “well-drinking”. Modern beer drinkers pay special attention to the product’s caloric intake, have an increased knowledge about a product’s health benefits and the desire to consume locally if possible. While the third point is not always substantiated, low Alcohol answers the two first consumption trends: in a consumer mindset, less alcohol implies less sugar and a better health benefit, and generally alcohol always has a negative connotation. All other factors being equal, especially taste and price, there is no doubt that for this kind of consumer low-alcohol beer is a viable alternative to “classic beer”. Generally, we can bring this low-alcohol trend closer to the “free” trends, such as additive-free, gluten-free and alcohol-free.

To these new consumers, we must add those who’ve always had this “need” for a low-alcoholic beer. For health reasons, like pregnant women for example or for a religious conviction. Although this need always existed, it has strengthened during the last few years, due to the fact that beer is now a societal phenomenon. Consumers, by wiling to be part of the society, wants to consume trendy product. Therefore, the product must adapt itself to the consumer and give him this possibility. This is the reason behind the rise of low-alcohol beers.

Although demand is quite recent, we must go back much further to find the origin of low-alcohol beers. It’s the year 1920, in the USA and it’s the Prohibition: this constitution signs the interdiction to produce, transport, import and sell alcohol in order to reduce criminality and corruption in the country. Taking place from 1919 to 1933, this law pushes breweries to reinvent themselves to survive. Low-alcoholic beers were born!

Although the style emerged under constraint, nowadays it’s really the brewer’s choice to produce no or low-alcoholic beers to answer the growing demand. When going for this particular style, the question of the process arises: how does a brewer significantly reduce alcohol quantity without changing production process? Because Yeast is the key for alcohol production, it was our duty to help brewers in this task. We, at Fermentis, have been solicited to develop a solution.

Firstly, we had to do the work of screening among all the strains we know, a long-term task to select the ones that could match our research criterion: technical criteria but also sensorial criteria to answer to brewers need. Simon Jeanpierre, Technical Sales Support Manager Asia Pacific, tells us more about it: “To perform our first screening, our target was to list Saccharomyces and non-Saccharomyces strains able to produce only little alcohol. To narrow this list, we looked at microorganisms also able to reproduce as much as possible the expected beer flavours, as we traditionally know. This naturally led us to maltose-negative strain unable to ferment complex sugars (i.e. polymers of glucose), with yet a strong ability to produce higher alcohols, Esters and phenols, participating into the beer aromas.”

To understand our decision to steer our choice towards maltose-negative strains, you just have to look at the classical composition of a beer wort on the schema here below. Unlike the other strains of Fermentis range, maltose-negative strains only have the capacity to ferment glucose (DP1, single sugar chains), the equivalent of 10 to 15% of total sugars in wort.  Less fermentable sugars imply a lower alcohol production in the final beer.

low alcohol yeast selection

This done, the next step was to verify our hypothesis with a trial protocol, it’s Simon who explains it: “We started with the beginning: a recipe. This recipe had to produce a classic wort at a standard density of 15, 10, 8 and 6°P (1061, 1040, 1032 and 1024 in specific density) fermented at 20°C (68°F). It was then fermented with all screened strains and accurately followed-up on sugar consumption and alcohol production. A tasting with a panel of experts finally allowed us to choose the winning strain that would not only perform well in low alcohol production but also provide essential aromas expected in the beer during a proper fermentation.”  Moreover, this yeast produces “clean beers” without off-flavours that are commonly found in NAB.

The strain we have selected after duplicating this trial protocol many times is a Saccharomyces chevalieri that we named SafBrew™ LA-01, LA simply for Low Alcohol.  We chose this strain because it showed excellent results during our fermentation trials as demonstrated hereunder. For every tested density, the fermentation reached its plateau after 60hrs for an alcohol level between 0,4 and 1,2% ABV, corresponding to an apparent degree of fermentation about 14%. We have noted a positive correlation between final degree of alcohol and wort initial density, so we are able to say that an initial density of 7°P (1028 in specific density) is ideal to reach 0,5% ABV which is the maximum alcohol level tolerated in many countries to write “No-alcoholic beer” on the label.

SafBrew LA-01 Fermentation trial

As previously presented, this strain is maltose-negative, it only consumes simple sugars (glucose, fructose, sucrose) leaving behind the maltose and other complex sugars such as maltotriose and dextrins. Logically, we find more residual sugars in our low-alcoholic beer. The below graph confirms that in numbers, DP2 means disaccharides which are mainly maltose and DP3 means trisaccharides which are mainly maltotriose.

SafBrew LA-01 sugar consumption

We have seen that in purely scientific terms, SafBrew™ LA-01 allows us to brew a NAB-LAB, but what about the sensory profile of the beer itself? This is a legitimate question because such a high level of residual maltose doesn’t exist in “classic” beers. Maltose is a sugar able to bring a clean sweetness. In the majority of beers, it doesn’t have the chance to express its potential because it’s turned into alcohol and CO2 by yeasts. Therefore, it’s the alcohol which will mainly bring the roundness and sweetness perception in the mouth (or to Mouthfeel). In a NAB-LAB, residual maltose can play this role because alcohol is present in small quantity only. However, if sweetness level in your final beer worries you, it’s easy to balance it with several brewing tools as Simon explains to us: “Bitterness level plays a great role and anything above 15 IBU for 0.5% ABV is a good target to balance the sweetness level. Increasing your water hardness gives a firmer bitterness too. On the cereal side, limit the use of caramel malts and the sweet flavour associated with them. To finish balancing the bill, there is of course the acidity. You can either pre-acidify your wort prior to fermentation or use greater carbonation and its associated carbonic acid which also propels aroma.”

Another important thing when we are talking about sensory profile is the fact that SafBrew™ LA-01 is a POF + strain. By being classified positive (+), SafBrew™ LA-01 owns a gene which expresses the POF character, POF meaning phenolic off flavour. In other words, this yeast has a specific enzyme that decarboxylates phenolic acids, like ferulic acid and coumaric acid, present in wort and thus producing respectively the flavour-active compounds 4VG and 4VP. These compounds contribute to spicy, clove-like flavours which, depending on the concentration, may produce a spicy and complex character. Note that in a NAB-LABs brewed with SafBrew™ LA-01, this phenolic side will be very light as described by Simon: “From a sensory perspective we really enjoyed the slight phenolic expression it develops. Keep in mind that the expression of a POF character depends on the amount of ferulic acid you have in your malt. In a NAB-LAB, you will therefore only have a limited expression from the recommended lower amount of malt”.

Last but not the least, the pasteurization topic. Pasteurization is a technique invented in 1865 by Louis Pasteur for food conservation by killing all living microorganisms in the product. The process is theoretically quite simple: you heat the product between 62°C to 88°C (144 to 191°F) before brutally cooling it. Pasteurization is not popular in the craft beer industry because it’s linked to standardization of the product or because, with this process, the beer is not really “alive” anymore and will not evolve over time.

But in regard to our recommendation for NAB-LAB, pasteurization is mandatory. You are certainly aware of how much yeasts and microorganisms like sugars and how much residual sugars we still have in a NAB-LAB at the end of fermentation. If a pasteurization is not done, any living microorganisms could eventually ferment maltose and totally alter the beer or even create overcarbonation in bottles, which could be dangerous. Different Pasteurization techniques exist such as tunnel pasteurization, whichever technique is chosen, Simon explains how much you have to pasteurize: “As soon as you have reached your max ADF of 13-15%, it will be important to inhibit eventual living friends from further fermenting. We studied different cross-contamination levels with Saccharomyces cerevisiae and observed a minimum safe limit of 80 PU in order to prevent growth in a brew fermented with SafBrew™ LA-01. We recommend the range of 80-120 PU.” PU signifies Pasteur Units, in terms of affect, one PU is equivalent to heating to 60°C in one minute. To calculate your pasteurization level, the formula is the following:

PU= t x 1,393 (T-60)

Where t is the time you heat in minutes and T is the temperature in °C.

A true alternative to pasteurization doesn’t really exist, it remains the best technique for ensuring optimal microbiology of a beer. We know that this technique is not accessible to every brewer and as Simon explains, we are constantly looking for solutions for small breweries: “Fermentis is aware that such equipment can be limited to big scale breweries. This is why we are working on alternatives to offer craft brewers the best performance in fermenting flavourful NAB-LAB with our SafBrew™ LA-01. Such alternatives exist through intrusive (biotechnology) or non-intrusive methods (cool chain). Feel free to reach out to us to learn more and receive tailor-made advice on your NAB-LAB fermentation management and hygiene practices.”

Simon Jeanpierre, Hugo Picard

Growing Your Distillery to Meet Demand

wine distillery machine

By: Kris Bohm: Distillery Now, LLC

Years ago, it all started with the dream of your own whiskey. Through meticulous planning, hard work, blood, sweat and tears your dream of a craft distillery became a reality. Then the real work began, with long days and nights of distilling. Barrels were filled with whiskey and tucked away to age. The whiskey aged and what came out of the barrels was not only delicious but loved by all those who tasted it. The distillery you dreamed of and built up is no longer in its infancy. The spirits of your distillery have been embraced by the public and sales growth is strong. Now here comes the harsh reality. The whiskey your distillery has created and the brand that you built up does not have enough supply to meet demand. The problem gets worse as your equipment is nearly maxed out, since you started with a small budget and limited equipment. With no immediate way to keep up with the demand for your whiskey, you stand at a crossroad where critical questions arise and important decisions must be made.

  How will you meet a demand for whiskey that greatly outstrips supply?

The good news is there are solutions that can allow your business to sustain the growth curve. We will take time to consider the problem in detail, by examining the routes others have taken to solve this exact problem. Some solutions presented here are simple and inexpensive, while other growth options are costly and complex. To help prepare you for the future, let’s break down production growth options with pros and cons of each option to help you find the optimal path to grow your business.

  Outsource Your Problem:  There are companies who produce spirits that are already aged, finished and ready to go in your bottles. Sourcing whiskey from another distillery is the most direct path to an abundance of ready to bottle spirits. Barrels of aged spirits can be obtained faster than producing them yourself and in large quantities. In some cases, distilleries will blend their whiskey with sourced whiskey to stretch their house made supply for the short term. Barrels of aged whiskey are often expensive per proof gallon, but this is certainly the quick route to continue to meet your growing demand.

  Is sourcing whiskey the right choice? If more whiskey is needed immediately, it is likely that sourcing is your only option.

Bringing in aged whiskey from another distillery is an immediate solution to fulfill the demand you worked so hard to create and certainly do not want to lose. Sourcing is the least expensive path forward worth considering. When it comes to cost, other than buying the whiskey, there is no requirement to spend money on equipment when you source whiskey.

  What is the downside to sourcing? Sourcing will require a change in label to disclose the use of sourced spirits.

Spirits from another distillery are unlikely to have identical flavor profile to spirits distilled by your distillery. This can be a challenge if your whiskey has a unique flavor profile.

Sourced spirits are not always received well by an increasingly aware consumer and furthermore may require changes to your marketing story to match the sourced spirits.

  Make More Whiskey: If there is room in your existing distillery to grow, producing more whiskey is often the most logical decision to meet growing demand. The addition of another still, or a stripping still, and more fermenters may be the best choice for you. An equipment addition can greatly increase your output. The decision to add equipment is often the first step a distillery will take to increase output. To grow in this way, a distillery must have additional capacity to add this equipment. Additional capacity is measured several different ways.

  First things first, do you have the space to grow? Additional space is needed to add the equipment, raw materials, and more barrels. A bigger still, more fermenters, and many more barrels of whiskey need to go somewhere and the space must be found first and foremost. The second constraint of additional capacity is heating and cooling. The boiler and chiller must have enough capacity to heat and cool the additional equipment, without overly stressing the equipment. If you have the additional capacity, let’s weigh  the pros and cons of going this route.

  Upside of Adding Production Capacity: The addition of new distilling equipment can greatly increase output of spirits produced daily. This allows you to continue producing your product from grain to glass, and maintains existing flavor profiles and processes to produce the exact spirits you are after. The addition of another still and fermenters is not nearly as expensive as an entirely new distillery build out, as long as the boiler and chiller have capacity for additional load.New equipment added to existing equipment can quickly increase output to work toward catching up with demand.

  Downside of Adding Production Capacity: The new still you add will be hungry and more spirits mean you need more raw materials. Increasing production will invariably increase operating expenses. This sharp increase in spending on raw materials, like grain and whiskey barrels, must be planned for in advance to ensure you have the capital to produce more spirits.Adding a new still will take months to procure, install, and get it up and running. This means it will be sometime before you are able to increase output. An extra still will certainly increase output, but may not be a big enough increase to meet demand in the coming years. This leads to a critical question one must carefully consider when planning to add capacity. Will this planned addition of equipment meet the expected demand in growth for the next 5 years?If the answer to this question is no then it is worth considering jumping into the big leagues of distilling whiskey with a continuous column still.

  Big Distillery Growth: For many distilleries that are making good spirits, they hit a ceiling rather quickly in their whiskey production that requires the consideration to build a new, larger facility to produce enough. If your distillery is on a growth track that many distilleries are currently seeing of +100% growth of sales year over year, the addition of another batch still may not meet your long term demand. Sales growth at this rate requires a massive jump in output of spirits that the addition of another still can not meet. You can look up to nearly any whiskey producer in America where their products are found nationwide and you will find they distill their spirits on a continuous column still. A continuous column still has a proof gallon output level that far exceeds the daily output of even the largest batch stills. There are many unique challenges that come with operating a continuous column still, but their capacity is massive in comparison to pot stills. If your distillery needs large production quantities to keep up with fast growing sales, a continuous column should be considered.

  The Mighty Continuous Still: The output of a single pass continuous still can easily produce seven hundred proof gallons of whiskey in 8 hours. Continuous column stills are extremely efficient and require less labor and energy cost per proof gallon produced. More proof gallons per pound of grain can be distilled on a continuous column still versus with a batch still as well. Distilleries running a continuous column often have excess capacity and can use that capacity to contract distill and create additional revenue streams. This means you have room to grow in your own production as needed.

  Downside of the Continuous: The manufacture, build out, and installation of a continuous column is a much more expensive project than the simple addition of a batch still. Producing large quantities of distilled spirits requires large amounts of raw materials and its downright expensive to operate. Distilling spirits on a continuous column requires an abundance of operating capital to purchase grain and barrels to keep the still running. When running a continuous column and producing dozens of barrels weekly, the need to store those barrels becomes a new challenge. A large barrel storage area or rickhouse is a must when planning to operate a continuous column.

  What is the Best Choice for You? First off, let’s take a moment and celebrate! You have built a successful distillery with growing demand. Hats off to you and your team as this is a massive accomplishment.

  Where to go from here is a daunting decision as the long term success of your business very well hinges on it. Careful planning and consideration is key here as you plan to make this critical decision. There are plenty of options and ways to go to create the opportunity for your distillery to grow. Long term strategic planning must be employed if the next stage of growth is going to work to support your business. If you are unsure which path is the right one for you, drop us a line and let’s talk about it.  Dream big and plan well for it.

  Kris Bohm runs Distillery Now Consulting and has helped oversee expansions for several distilleries. When he is not distilling Kris can be found racing cyclocross or defending his beer mile record.

A Legal Checklist for the Startup Brewery

gavel at the top of clipboards

By: Brian D. Kaider, Esq.

For those hoping to realize their dream of starting a craft brewery, the number of tasks can be overwhelming and it may be difficult to know where to begin.  Building the right team to help achieve each objective can smooth the path considerably.  One of the first members of that team should be an attorney knowledgeable in the industry.  The information below is not a comprehensive list of everything a brewery needs to do, but is intended to provide a rough estimation of the time and expense required for the major events that may require an attorney, as well as identifying opportunities to save expense by doing some tasks in-house.  These items are listed in a sequential order that may be useful, but is certainly not a requirement. 

Form Corporate Entity

  In most cases, a limited liability company (LLC) is the best structure for a startup brewery, though it is wise to first consult a CPA or tax professional familiar with breweries.  Secretary of State offices often have simple online forms for the Articles of Organization of an LLC that do not require the services of an attorney.  However, some States, such as California, New York, and Delaware, require an LLC to have a signed operating agreement.  As explained below, the operating agreement should be drafted by an attorney and in some cases the attorney may offer a package that includes creation of the operating agreement along with creating and filing the articles of organization.  Though it varies state-to-state, the filing fees for Articles of Organization are typically $100-200 and it generally takes 2-3 weeks for the application to be accepted by the state, though it can sometimes be expedited for an additional fee.

Once the corporate entity is formed, the business can apply for an Employer Identification Number (EIN) using the free online form on the IRS website.  The EIN is needed to then open a bank account in the name of the business. 

Trademarks

  There are two reasons why filing for federal trademark registration should be the next step.  First, prior to the COVID pandemic, it generally took at least eight months to secure trademark registration.  Post-COVID, it is now taking closer to one year, at a minimum.  Second, if there is going to be a problem getting the mark registered or a competitor in the market is going to oppose the application or use of the mark, it is better to find out as soon as possible and preferably before spending money on developing a brand image, signage, and customer recognition of the name.

  Many breweries attempt to register their trademarks themselves and sometimes they are successful.  But, even registration of the mark does not ensure freedom-to-operate using the name.  Competitors may attempt to cancel the mark post-registration or may have developed common law trademark rights based on prior usage of the name even though it was never federally registered.  A skilled trademark attorney will conduct a thorough “clearance search” before filing an application to uncover potential obstacles to registration or problematic common law usage.

In addition, there are many technical requirements governing how applications for trademark registration must be filed.  It is common for trademark applications filed without an attorney to be rejected based on a technical flaw and then abandoned because the applicant did not know how to fix the problem.

  The costs to obtain federal trademark registration can vary significantly.  In most cases, the application can be filed online using pre-existing descriptions of the associated goods and services.  The filing fees for such applications are $250 per class of goods and services (i.e., international class 032 for beer, class 043 for taproom services, etc.).  Additional government fees will depend on whether the application is filed as “actual use” versus “intent-to-use,” whether extensions of time are requested before filing a Statement of Use, etc.  Also, attorneys’ fees for conducting a clearance search, filing and prosecuting the application can vary dramatically.  As a very general guide, one should anticipate about $2,000 total cost per trademark, but discuss each mark with an attorney for a specific estimate.

Operating Agreement

  All LLC’s should have a written operating agreement.  For single-member LLCs, they help to distinguish the business financial interests from the owner’s personal financial interests.  For multi-member LLC’s they are critical; they are essentially a “pre-nup” for the business owners. 

  There are three reasons why breweries should hire an attorney to draft an operating agreement from scratch.  First, online or “standard” operating agreements are generally drafted very poorly.  Second, states vary in terms of what is required to be included in an operating agreement, so using one from the internet may not satisfy the law in a particular state.  Third, and most important, drafting and negotiating an operating agreement forces the owners to discuss issues that might otherwise be left unaddressed.  The resulting document is tailored to the owners’ specific needs and can prevent unnecessary expense, disagreement, and hardship if problems develop in the business relationship down the line.

  The legal fees for drafting the operating agreement will depend on the number of members and the level of agreement between the members on important issues.  Five to ten hours of attorney time is a good starting estimate.

Financing

  Given the expense, very few breweries are built purely from the owners’ savings.  Whether the project will be funded by friends and family, through loans, through investors, or some combination thereof, having a knowledgeable CPA involved is essential.  In addition, if funds will be raised from investors, an attorney should be part of the team, to ensure that the owners do not run afoul of securities laws.

Lease

  Most breweries are built on leased property.  Often a commercial landlord will have a “standard” lease that they want the brewery to sign.  But, unless a landlord has already had a brewery tenant, they are likely unfamiliar with the particular needs of a brewery and their standard lease will reflect this lack of understanding.  Having an attorney that not only understands commercial leases, but is familiar with brewing equipment and operations, can prevent the costly mistake of signing a long-term lease for a property that will not meet the brewery’s needs.  Some of the issues that should be addressed include water and electrical supply, puncturing walls and ceilings for ventilation, sloped floors and trench drains, noise levels, odors, use of outdoor space, etc.  It is impossible to estimate the cost of an attorney’s involvement in this process as every lease and situation is different.  But, getting the attorney involved in the beginning is the most cost effective option as it is easier to prevent a disagreement than to resolve one.

Equipment Purchasing

  Breweries have a lot to buy:  a brew house and fermenters, furniture, glassware, grain and hops, and much more.  Generally, owners make these purchases on their own, but for large expenses or long-term supply agreements, it’s never a bad idea to have an attorney review the terms.

File Brewer’s Notice with TTB

  Some breweries have their attorney prepare and file the Brewers Notice and accompanying documentation with the TTB and certainly that can take some weight off the owners’ to-do list and ensure things get filed correctly the first time.  But, for those looking to save on legal fees, this is one area that it makes sense to DIY.  The forms are long and detailed, but they are not especially difficult.  The TTB has excellent online resources and guidance and the personnel at the TTB are quite friendly and helpful on the phone. 

  As a rough guide, it will take about 1-2 weeks to learn what information the TTB needs, gather the materials, and fill out the forms.  As of January 2022, the average processing time for a new application at the TTB was 34 days. 

  For those that do have their attorneys prepare the application, a rough estimation would be two to five hours of attorney time.  The more complete the information provided to the attorney the first time, the lower the cost.

File for State Manufacturing License

  As with the TTB application, the application for a manufacturing license from the state, and any necessary local licenses or permits, are something that can be done by the brewery owners to save legal fees.  Though it varies state-to-state, the online resources tend not to be as complete or user friendly as those of the TTB and the response to telephone inquiries can be… inconsistent.  However, with a bit of patience the forms are not terribly onerous.  Being on good terms with other breweries in the area can be valuable, too, as they may be willing to help with any questions about the local forms. 

Distributor Agreement

  Most breweries start with taproom sales and some keg sales to nearby bars and restaurants, especially if they can self-distribute, but growth eventually leads to the need for a distributor.  Breweries should never sign a distribution agreement without it being reviewed by an attorney.  State laws on the subject are heavily slanted in favor of distributors and the contracts can be nearly impossible to terminate even if the distributor is failing to meet its obligations.  A knowledgeable attorney can help to level the playing field as much as possible, particularly though negotiation of what constitutes “good cause” for termination and how to calculate the fair market value of the distribution rights.  The legal fees will depend on the circumstances, but this is one area where breweries should not try to cut costs.

Conclusion

  Successful entrepreneurs do not try to do everything alone. They surround themselves with experts to help navigate difficult issues.  Bringing an experienced attorney onto the team at the beginning of the process of starting a brewery can save time and money by preventing costly mistakes. 

  Brian Kaider is a principal of KaiderLaw, a law firm with extensive experience in the craft beverage industry. He has represented clients from the smallest of start-up breweries to Fortune 500 corporations in the navigation of regulatory requirements, drafting and negotiating contracts, prosecuting trademark and patent applications, and complex commercial litigation.