Category: Brewery

Filtration Media

Cyndi

How it impacts labor, waste, and throughput

filtration equipment on the floor of a brewery

By Frances Tietje-Wang

A routine technical step, filtration is often addressed with equipment selection reflecting legacy systems, supplier recommendations, or the price of filter media rather than an analysis of long-term operational impact.

  However, it is more than a step in improving beer clarity because media selection can influence labor requirements, production downtime, beer recovery, wastewater generation, and sanitation demands. Energy costs are rising, so breweries are operating with tighter margins and greater environmental scrutiny while maintaining operational capacity.

  Brewing process research has shown that clarification and filtration steps represent significant resource and water use within brewery operations. The composition of the beer entering the filter, in particular yeast, proteins, polyphenols, and hop material, can strongly influence filtration resistance and cycle length. In research on barley and beer composition, proteins and polyphenols contribute to haze formation and beer stability, demonstrating how upstream raw material composition ultimately affects downstream clarification performance.

  Given this context, for production managers, the operational question is straightforward: Which filtration media actually minimize operational cost once labor, waste, and throughput are considered?

Understanding the Major Filtration Media Types

  Breweries can employ several different filtration technologies to remove yeast and haze-forming material prior to packaging, but each has a unique operational impact to consider.

Sheet Filtration:  Sheet filtration uses cellulose-based filter sheets mounted in plate-and-frame systems. Common in small- to mid-sized breweries, they have relatively low equipment costs and are fairly straightforward to operate. However, sheet filters require manual installation and realignment during change-outs.

Lenticular Filtration:  Lenticular filtration systems use stacked depth-filter modules housed within stainless vessels. These modules provide a large filtration surface area and improve containment compared to sheet filters. Lenticular filters are applicable for polishing filtration or sterile filtration applications.

Cartridge Filtration:  Cartridge filters use replaceable membrane or depth cartridges inside sanitary housings. These systems are commonly used after centrifugation or coarse clarification steps and are widely adopted for their consistent performance.

Diatomaceous Earth Filtration:  Diatomaceous earth (DE) filtration has historically been the dominant method for rough beer clarification in large breweries. In these systems, powdered fossilized diatom remains form a porous filtration bed capable of removing large quantities of yeast and suspended solids.

  Although each of these systems can achieve effective clarification, the operational trade-offs among them in terms of labor requirements, waste generation, and throughput can be substantial.

Media Change-Out Time and Labor Costs

  Labor requirements are often the most overlooked cost associated with filtration.

  Plate-and-frame sheet filters require operators to install and align filter sheets between runs manually. These change-outs can involve disassembling plate stacks, removing spent sheets, and installing fresh media. This maintenance process can create downtime between filtration cycles, requiring careful handling to prevent leaks or misalignment.

  Lenticular modules reduce some of this labor by using preassembled filtration cartridges that can be installed more quickly than individual sheets. However, these modules are still relatively large and require manual handling during replacement.

  Cartridge filtration systems typically involve smaller components and predictable replacement schedules, which can simplify maintenance planning.

  DE filtration requires very different operational considerations in preparing a filter precoat and continuously monitoring slurry dosing and pressure conditions. Stable filtration conditions must be maintained to prevent filter bed collapse or breakthrough.

  Operational studies of brewery wastewater and processing variability highlight how batch operations and cleaning cycles can influence production efficiency when not carefully managed.

  In practice, filtration media with a lower purchase price may incur hidden labor costs when maintenance and downtime are considered.

Wastewater & Solid Waste Implications

  Filtration systems also differ significantly in the type and volume of waste they generate.

  DE filtration produces large volumes of spent filter-aid slurry containing yeast, proteins, and other solids. The disposal of the used filter and its accumulated filtered contents poses environmental and regulatory challenges due to the presence of fine silica particles. Research corroborates the environmental and occupational impacts associated with DE filtration and has driven interest in alternative filtration technologies (4).

  Sheet filtration generates solid waste in the form of used filter sheets, which can be disposed of in a landfill.

  Lenticular modules and cartridge filters generate smaller waste volumes, but the composite materials they are made of are often not recyclable.

  Filtration operations can also contribute to wastewater generation through backflushing, rinsing, and cleaning cycles. In brewery wastewater studies,  suspended solids and organic material from clarification processes have been shown to contribute to treatment loads.

  Additionally, in regions with strict wastewater discharge limits or high landfill costs, filtration-related waste management can become a significant operational expense.

Pressure Drop, Beer Loss, and Filtration Efficiency

  As filtration proceeds, suspended particles accumulate within the filtration media, changing the pressure, requiring increased pump energy, and can reduce filtration throughput. The media can clog with the rate dependent on the composition of the beer (the variability of yeast concentration, protein haze, and hop particulate) entering the filter. In short, filtration media influences both hydraulic performance and beer recovery.

  Beer loss within the filtration media also affects production efficiency. Filter beds and sheet media can retain significant volumes of beer, reducing the packaged yield. Media design, filter geometry, and recovery procedures all influence how much beer remains trapped in the system. Also, the research on beer haze formation shows that proteins and polyphenols play key roles in colloidal stability and filtration behavior (2). Considering these interactions, breweries can optimize both filtration efficiency and product stability for less product loss during filtration, which can impact the choice of media.

CIP Burden & Sanitation Complexity

  Cleaning requirements vary significantly across filtration systems. Cartridge and lenticular filtration systems typically require regular clean-in-place (CIP) cycles to remove accumulated organic material and maintain sanitary conditions. In contrast, plate-and-frame sheet filters often require manual cleaning between filtration runs before new sheets are installed. DE systems may require additional washdown procedures to remove residual slurry from equipment surfaces.

  Cleaning operations consume water, chemicals, and labor time. Research on brewery wastewater treatment highlights how cleaning and sanitation processes contribute significantly to water consumption and wastewater generation in brewery operations (3).

  As a result, filtration system selection can influence both sanitation workload and wastewater generation.

Why “Cheaper Per Unit” Media Can Cost More Overall

  The purchase price of filtration media rarely reflects the true cost of filtration operations. Hidden cost drivers include:

•     labor required for media change-outs

•     downtime between filtration runs

•     beer loss retained in the filtration media

•     waste disposal costs

•     pump energy requirements associated with the pressure drop

  With all of these possibilities, a low-cost filtration medium that requires frequent replacement or retains large volumes of beer may ultimately increase operating costs. When evaluating filtration systems, it is important to use a total cost of ownership framework that allows breweries to identify operational trade-offs more clearly.

Practical Evaluation Framework for Breweries

  Production teams evaluating filtration systems can benefit from tracking several operational metrics:

•     labor hours required for filter changes and cleaning

•     beer losses that are associated with the filtration media

•     pressure drop development and filtration cycle length

•     waste disposal and wastewater treatment costs

•     filtration throughput during packaging runs

  Collecting this data allows breweries to compare filtration formats using operational performance rather than equipment price alone.

Filtration as an Operational Decision

  Filtration media selection influences far more than beer clarity, including labor requirements, waste generation, beer recovery, and production throughput, all of which depend on the chosen filtration system. Breweries should evaluate filtration through a system-wide lens rather than focusing solely on media costs to uncover opportunities to reduce operational expenses and improve efficiency. As margins tighten and sustainability is factored in, filtration decisions increasingly represent strategic operational choices rather than routine technical preferences.

References

1    Fillaudeau, L., Blanpain-Avet, P., & Daufin, G. (2006). Water, wastewater and waste management in brewing industries. Journal of Cleaner Production, 14(5), 463–471. https://doi.org/10.1016/j.jclepro.2005.01.002

2    Fox, GP, Panozzo, JF, Li, CD, Lance, RCM, Inkerman, PA,  and Henry, RJ (2003). Molecular basis of barley quality. AUSTRALIAN JOURNAL OF AGRICULTURAL RESEARCH  54 (11-12) 1081-1101. https://doi.org/10.1071/AR02237

3    Simate, G. S., Cluett, J., Iyuke, S. E., Musapatika, E. T., Ndlovu, S., Walubita, L. F., & Alvarez, A. E. (2011). The treatment of brewery wastewater for reuse: State of the art. Desalination, 273(2–3), 235–247. https://doi.org/10.1016/j.desal.2011.02.035

4   Cimini, A., & Moresi, M. (2020). Innovative Rough Beer Conditioning Process Free from Diatomaceous Earth and Polyvinylpolypyrrolidone. Foods (Basel, Switzerland), 9(9), 1228. https://doi.org/10.3390/foods9091228

Turning Market Lemons into Tax Lemonade

Cyndi

How tax-loss harvesting can help business owners lower their tax burden.

a woman serving lemonade from a booth called turning market lemons into tax lemonade

By Sarah Hite, MBA, Northwestern Mutual Wealth Management Company

Running a business means you’re constantly juggling decisions: hiring, cash flow, taxes, growth plans, and the occasional existential crisis over payroll week. Somewhere in that chaos sits your investment portfolio—often quietly doing its thing in the background. But when markets get choppy, those investments can do more than just make you nervous. They can actually help reduce your tax burden overall.

  Enter one of the more underappreciated tools in the tax-planning toolbox: tax-loss harvesting.

  Before you picture someone wandering through an orchard picking sad-looking apples, let’s talk about what this strategy actually means—and how it can benefit business owners both personally and, in some cases, indirectly through their businesses.

What Is Tax-Loss Harvesting?

  Tax-loss harvesting is the practice of selling investments that have declined in value in order to realize a capital loss for tax purposes. That loss can then be used to offset capital gains elsewhere in your portfolio.

  In plain English: if you’ve made money on one investment but lost money on another, the loss can help reduce the taxes owed on the gain.

For example:

•     You sell stock in Company A and realize a $50,000 gain.

•     You sell stock in Company B that has dropped in value and realize a $30,000 loss.

  Your taxable gain becomes $20,000 instead of $50,000.

  That difference can translate into meaningful tax savings, especially for high-earning business owners who may already be in higher tax brackets. This could mean the difference between paying the IRS 12% or 22%, 22% or 24%, 24% or 32%, etc.

  But here’s where it gets interesting: the benefits don’t stop with offsetting gains.

Losses Can Offset More Than Gains

  If your realized capital losses exceed your capital gains for the year, the tax code still gives you a break.

  You can use up to $3,000 per year to offset ordinary income.

  For a business owner reporting substantial income from their company—whether through a salary, K-1 distributions, or pass-through income—that can be useful.

Even better: unused losses carry forward indefinitely.

  Think of it like building a tax shield you can deploy in future years. If you sell your business down the road, those accumulated losses might offset gains from that transaction (if you haven’t read it, check out my article in the Feb/Mar ‘26 edition to learn more about exit planning).

  Not a bad “insurance policy” to have sitting on the shelf!

Why Business Owners Should Pay Attention

  Business owners often have complex tax pictures. Income may flow through multiple channels:

•     Salary or guaranteed payments

•     Profit distributions

•     Capital gains from

       investments

•     Real estate income

•     Other business interests

  Because of that complexity, small tax efficiencies can compound quickly.

  Here are a few situations where tax-loss harvesting can be especially valuable for entrepreneurs.

1.    Offsetting Investment Gains During Good Years:  When business is thriving, owners often invest excess cash into brokerage accounts. Over time, those portfolios may generate gains from stock sales, mutual fund distributions, or portfolio rebalancing. Harvesting losses in underperforming investments can offset those gains and help keep the tax bill under control.

2.   Managing Taxes During Liquidity Events:  If you sell a piece of real estate, a side investment, or even a portion of your business, capital gains taxes can be significant. Strategically harvesting losses beforehand can reduce the taxable impact. This doesn’t eliminate taxes entirely, but it can soften the blow.

3.   Creating Future Tax Flexibility:  Some business owners accumulate losses over time and carry them forward for future years. This can become incredibly valuable when selling a business, selling highly appreciated investments, and diversifying a concentrated stock position. In those moments, previously harvested losses can reduce the tax cost of making big financial moves.

Tax-Loss Harvesting Isn’t Just “Selling the Losers”

  One of the biggest misconceptions about tax-loss harvesting is that it means abandoning your investment strategy. That’s not how professionals approach it.

  Instead, the process often looks more like this:

1.  Identify an investment currently trading below its purchase price

2.  Sell the position to realize the tax loss

3.  Reinvest the proceeds into a similar (but not identical) investment to maintain market exposure

  The goal is to capture the tax benefit without drastically changing your portfolio allocation. In other words, you’re adjusting the plumbing—not demolishing the house. But this is where things can get tricky.

  The Wash Sale Rule: The Buzzkill of Tax Planning

  The IRS anticipated that investors might try to game the system, so it created something called the wash sale rule. The rule states that if you sell an investment at a loss and then buy the same or a “substantially identical” security within 30 days before or after the sale, the loss is disallowed. Yes, the IRS really did create a 61-day window specifically designed to ruin lazy tax strategies.

Here’s a simple example:

  You sell shares of a stock for a loss on December 1. If you buy that same stock back before December 31, the IRS says the loss doesn’t count. Instead, the loss gets added to the cost basis of the new purchase, delaying the tax benefit.

  For investors who don’t track these rules carefully, it’s surprisingly easy to accidentally trigger a wash sale—especially if the investment appears in multiple accounts.

For example:

•     A brokerage account

•     A spouse’s account

•     An automatic dividend reinvestment plan

•     A retirement account

  Yes, even activity in an IRA can trigger wash sale complications, which is why this strategy should never be done casually.

Why Business

Owners Should

Involve Their

Financial Advisor

  Tax-loss harvesting sounds simple on paper but executing it properly requires coordination. A knowledgeable financial advisor can help ensure the strategy is used effectively by:

1.    Monitoring portfolios for harvesting opportunities:  Markets fluctuate constantly. Professional advisors track portfolios throughout the year to identify losses that can be harvested strategically.

2.   Avoiding wash sale traps:  Experienced advisors know how to maintain investment exposure while avoiding “substantially identical” securities.

3.   Coordinating with your broader tax picture:  For business owners, taxes rarely exist in isolation. Advisors often work alongside CPAs to understand expected income for the year, business profitability, planned asset sales, and other capital gains events. This allows harvesting to be done intentionally, rather than reactively.

4.  Integrating the strategy into long-term investment planning:  Tax savings are valuable, but they should never derail the bigger financial picture. A professional advisor keeps the portfolio aligned with your goals while still capturing available tax benefits.

A Word of Caution: Don’t Let the Tax Tail Wag the Investment Dog

  One of the biggest mistakes investors make is selling strong long-term investments purely for tax reasons. Taxes matter—but they shouldn’t drive every investment decision. The goal of tax-loss harvesting isn’t to chase losses or time the market. It’s simply to take advantage of declines that already exist. Think of it as financial recycling. Markets go up. Markets go down. If something temporarily dips below its purchase price, harvesting that loss can turn an otherwise frustrating moment into a small tax win.

  The Bigger Picture for Business Owners:  Entrepreneurs spend an enormous amount of time thinking about how to generate income. But building wealth also depends on how efficiently that income is managed and taxed – it’s not only about sufficient money, but also, efficient money. Strategies like tax-loss harvesting are rarely flashy. They don’t make headlines or dominate cocktail party conversations. But over time, they can quietly save thousands—or even tens of thousands—of dollars in taxes. And for business owners who already juggle complex financial lives, those efficiencies can make a meaningful difference.

Now What?

  Tax-loss harvesting isn’t a loophole or a gimmick. It’s a legitimate strategy built into the tax code that allows investors to offset gains and manage taxable income more efficiently. For business owners, the potential benefits can extend beyond a single year, creating flexibility for future investment decisions or major financial events like exit strategies or expansion.

  However, it’s also a strategy filled with technical details—particularly when it comes to the wash sale rule and maintaining proper portfolio allocation. That’s why the smartest approach isn’t trying to DIY your way through the tax code. Instead, work with an experienced financial advisor who understands how tax-loss harvesting fits into the broader picture of your investments, your business income, and your long-term financial plan. Because when markets inevitably throw a few lemons your way, it’s nice to know someone is there to help turn them into lemonade.

Better Than the Cool Kids

Cyndi

Becoming a noteworthy brand isn’t about fitting in with the cool kids

a man at a bar with a glass of whiskey and behind him are 4 people taking a selfie

By Hanifa Sekandi

Your problem isn’t that your brand isn’t viable. Your problem isn’t that your beverage isn’t good. It is probably great. Your problem is that your goal is to be better than the cool kids, the cool beverages in town, that is. Remember in high school when everyone wanted to be friends with the cool kids? Is the idea of fitting in constantly on your mind? Where are the cool kids now? Who’s talking about them in 2026? As much as we love the cool flashy brands, we do. It is important to understand that becoming a noteworthy brand isn’t about fitting in with the cool kids. Some of your favorite brands were once outliers, something people often forget when a beverage brand becomes mainstream.

  When you try to fit in, you tend to lean into inauthenticity. It’s like wearing a trendy hairstyle that doesn’t fit your face shape or getting a perm because everyone else is doing it. Oh, the eighties! It becomes a struggle to convince yourself every day when you look in the mirror that you feel good. You may fit in more, likely blend in, but you feel out of place. Imagine if a beverage, a bottle of bourbon or whiskey, could speak? We are in the AI animation era, so anything is possible. What would your beverage say to you? Our senses ignite our soul, and sipping your beverage should provide the information you need. How does this beverage want to show up in the world and on liquor shelves? How does it present itself to you? What does it trigger in you? Beyond igniting the desire for revelry.

The Odd Brand Out

  Unbelievably, being the odd brand out is a good thing, the underdog if you will. You have no one to impress but yourself. You can focus on what feels right to you and your marketing team. Draw on raw, authentic vision and emotion. The same energy that drove legacy brands when they began. It’s that grassroots grit mentality, that there is nothing like this on the market. That you are indeed better than the rest. No competition needed, because when you view your brand as a timeless winner, you don’t compete; you simply show up and exist in a league of your own.

  You’re the team that no one sees coming, but when they do, they admire you. They respect your beverage hustle, the product is stellar, and the marketing is bar none. Your goal should be to become an inspiration more than a competitor. Races eventually end. Every track athlete understands this. They do not spend their training season watching other runners run. Instead, they train, reflect, and continue. Understanding that self-reflection is the biggest hurdle to great outcomes. A hard feat to accomplish with social media. A medium that legacy brands did not have to contend with was a full view of what other beverage brands were doing in real time or at rapid-fire speed. They had to learn to stand behind and live with their marketing decisions. An effort that required continuous follow-through and promotion.

a man and woman looking in a book surrounded by oils and spices

Be Bold Without Hesitation

  So where do you start? Be bold. When you were in your youth, you were not limited by the constraints that plague you as an adult. You existed in a world of your own; it was okay to be bold and fun. You had a curiosity about life and the world. This is the energy your team needs to exude to become bold marketers. Marketers who do not strive to be boxed in and placed on a shelf, trying to blend in, hoping a beverage enthusiast will spot them. Your goal is to be chosen. Understanding buyers’ choices and what compels them to purchase a beverage they have never heard of or tried is essential.

  What do you look for in a beverage? Be objective when ideating ways to boost your brand’s image. Also, what makes the cool kids cool? What would you do differently? View yourself as a leader in your industry. Remember, you are not competing; you are co-existing in an industry that needs variety. Your brand is the cherry on top of the whipped cream on an ice cream sundae. Two ingredients that add a burst of flavor. Your beverage adds that missing ingredient to a perfectly crafted cocktail. It’s the showpiece on the bar cart; a can never be without lager on a hot summer’s day.

  It’s about being more than an afterthought. It’s about being the missing beverage, that something your consumer has been looking for. To achieve this, you must be bold in every way. The kind of bold that doesn’t go out of fashion, this isn’t about trends. The kind of bold that belongs in a league of your own, that is the first beverage that comes to mind in your beverage category. Your next question is most likely, ” How do you go about this? Just do it anyway is the answer. That wild idea of a futuristic campaign or one that takes consumers back in time, a beverage time traveller. This is the beverage marketing mindset to live by. Does your brand sparkle with color? Is it sleek and sophisticated? What story are you telling your consumer?

  You must believe in what you are selling more than the person buying it with unequivocal confidence. Are you the punk rock of all beverages? Or giving luxury a run for its money? Be outlandish, but sensible. It isn’t about controversy; it’s about the conversation that your brand evokes and the feeling it enlivens.

You’ve Got to Have Faith

  If you don’t believe in what your brand stands for, no one will. When you encounter opposition from other brands that want to push you out, how will you measure up? How will you manage the criticism from beverage aficionados? All that noise doesn’t matter. Drown it out, and just be, just exist, and have faith in your product. Put love into each bottle distilled, never compromise on quality ingredients, never dull your product to make a profit. Once you are firm about what your beverage brand stands for, all the turbulent times that this unpredictable industry throws at you won’t rock your foundation.

  This is the secret that the best bourbon and ale makers discovered early on. Hence, they have outlasted many hopeful brands that thought it was a competition. Beyond the fun, each beverage is steeped in culture and history. It is this that topshelf brands hold onto firmly. Beverage brands built on struggle, triumph, and faith. Whether it’s the story of a family, a town, or a monastery, these beverages travel many roads, some lasting 200 years. So, are you in? Are you ready to join the legacy, or would you rather sit with the cool kids?

Cacao vs Cacoa

Cyndi

What are the differences and the qualities they bring to beer

two glasses of beer one made with cacao and one with cocoa

By Rod Jones, Founder of RodJBeerVetures

One of the more intriguing things I often see in beer is the use of cocoa nibs versus cacao in brewing. At one point, someone asked me about the difference, and while they may sound nearly identical—aside from switching an “a” and an “o”—they can bring noticeably different qualities to a beer.

  For brewers, those differences go beyond naming conventions. The choice between cacao and cocoa can influence aroma, flavor intensity, mouthfeel, and even how the beer is presented to consumers. Understanding how each ingredient behaves gives brewers another tool when designing a beer meant to stand out.

  Both cacao and cocoa come from the same plant, the Theobroma cacao tree, so similarities are expected. Because of that shared origin, most drinkers associate both ingredients with chocolate flavor. But seasoned beer drinkers know there is often a noticeable difference in the way beers express chocolate depending on which ingredient is used.

  I actually explored this topic briefly in a YouTube video, which you can watch on the following page, where I broke down cacao versus cocoa and what each brings to a beer. The video provides a quick educational overview for beer drinkers, but it also highlights something important: many everyday beer shoppers may not know the difference at all and that’s where breweries have an opportunity.

Telling the Ingredient Story

  In today’s beer market, shelves are packed, and competition is intense. Depending on the region, available shelf space for beer is even shrinking. That means breweries have two immediate challenges: first, getting their beer on the shelf and second, convincing someone to pick it up.

  One area where breweries sometimes miss an opportunity is in how they communicate ingredients. It is not uncommon to see a beer labeled with “natural flavors,” which might be technically accurate but rarely tells the consumer much of anything. Even listing cacao nibs or cocoa on a label does not always clarify the experience if the drinker is not familiar with the difference.

But when breweries take the time to highlight those distinctions, they can create curiosity. And curiosity is often the first step toward someone trying a new beer.

  Just like pouring a beer into a glass creates a moment of anticipation—the look, the aroma, and then the taste—the ingredients behind that beer can tell a story that draws the drinker in before the first sip ever happens.

The Flavor Difference

  Cacao nibs are one of the most common chocolate-related ingredients used in brewing. They are essentially crushed pieces of fermented and roasted cacao beans. Because they are less processed than cocoa powder, they tend to retain more of the bean’s natural compounds.

  In beer, cacao nibs often deliver a more intense chocolate character. They can lean toward the bitter side, producing a deeper, darker chocolate impression that many drinkers associate with high-percentage dark chocolate bars.

  That bitterness is not a drawback, but it is an opportunity. For brewers aiming to create bold, complex stouts or porters, cacao nibs can provide a layered chocolate note that complements roasted malts and adds depth to the beer.

  Cacao can also bring earthy undertones, which further enhance darker beer styles. Those subtle characteristics can make a beer feel richer and more complex rather than simply tasting like chocolate flavoring was added.

  Cocoa, by contrast, often produces a smoother and slightly sweeter chocolate character. Cocoa powder is typically processed and partially defatted, which softens the flavor compared to cacao nibs.

  Because of that, cocoa tends to work well in beers designed to mimic dessert flavors. Many pastry stouts, milk stouts, and sweeter dark beers rely on cocoa to create familiar chocolate notes that remind drinkers of brownies, chocolate cake, or hot cocoa.

Brewing Considerations

  Working with chocolate ingredients is not always straightforward for brewers. One of the biggest technical challenges is fat content.

  Chocolate naturally contains cocoa butter, which is essentially fat. In brewing, fats can interfere with foam stability and head retention—two visual qualities brewers work hard to achieve. Too much fat in the beer can cause the foam to collapse quickly.

  Cacao nibs generally contain more cocoa butter than cocoa powder, so brewers need to be mindful of dosage rates. Using excessive amounts could impact on the beer’s ability to hold a proper head.

  To address this, brewers may limit the quantity of nibs used or balance the recipe with malts known for supporting foam retention. Cocoa powder can sometimes be easier to manage in this regard because some of the fat has already been removed during processing.

  Another crucial factor is deciding when to add the ingredient during the brewing process.

Timing the Addition

  Some brewers add cacao nibs during the whirlpool or near the end of the boil. This method allows heat to extract flavor while also sanitizing the ingredients. However, prolonged heat exposure can drive off aromatic compounds.

  Because of that, many brewers prefer to add cacao nibs during fermentation or conditioning. This approach allows the beer to extract chocolate characters more gently and preserve more delicate aromas. In some ways, cacao nibs are treated similarly to oak chips in brewing. The beer is allowed to rest on the nibs for a period, slowly drawing out flavor.

  Another common technique involves soaking cacao nibs in spirits—often bourbon or vodka—before adding them to the beer. This step sanitizes the nibs and extracts additional flavor compounds that can carry into the beer.

  This method is particularly popular with imperial stouts and barrel-aged beers, where the spirit character complements the chocolate profile.

Flavor Pairing and Recipe Design

  The choice between cacao and cocoa also influences how other ingredients interact with the beer.

  Cacao nibs tend to pair well with bold, complementary flavors such as coffee, vanilla, toasted coconut, and barrel aging. These combinations build layers of flavor that enhance the beer’s complexity rather than simply making it taste like chocolate.

  Cocoa powder, on the other hand, is frequently used alongside sweeter ingredients. In pastry stouts or milk stouts, cocoa works well with lactose, vanilla, caramel notes, or marshmallow flavors to create dessert-like beers.

  Another factor that can influence the final flavor is the roasting level of the cacao beans themselves. Much like coffee beans, cacao beans can be roasted at different intensities.

  Lighter roasts may highlight brighter chocolate notes with subtle fruitiness, while darker roasts emphasize deep cocoa flavors with roasted character. Some craft brewers even explore single-origin cacao beans, which can introduce regional nuances into the beer.

  South American cacao might bring fruit-forward notes, while African varieties can produce deeper cocoa intensity. These subtle differences give brewers another way to differentiate their beers in a crowded market.

Turning Ingredients into a Story

  Ultimately, the decision to use cacao or cocoa comes down to what the brewer wants the beer to express.

  Cacao nibs often create a bolder, more complex chocolate character with earthy depth and darker chocolate bitterness. Cocoa powder tends to produce a smoother, sweeter chocolate impression that works well in dessert-inspired beers.

  Neither approach is inherently better than the other. Each simply offers brewers a unique way to shape the beer’s flavor.

  But in today’s crowded craft beer landscape, how that choice is communicated can matter just as much as the ingredient itself. There is an acronym that comes up often in craft beer circles: FOMO, or the fear of missing out. With so many beers released each year, drinkers are constantly looking for something new and exciting to try.

  Many beer enthusiasts—including myself—keep beer cellars specifically so we can grab bottles when they appear and enjoy them later. The fear of missing out often drives those purchases.

  When breweries clearly communicate what makes their beer unique—whether it is the use of cacao nibs, cocoa powder, or even the origin of the beans—they tap into that curiosity. Sometimes that curiosity is all it takes for someone standing in front of a crowded shelf to pick up one beer instead of another.

  For brewers willing to lean into the story, cacao and cocoa are more than just chocolate ingredients. They are tools that shape flavor, create intrigue, and ultimately help craft beers that drinkers remember.

From Whence Thy Beer Flavors Arise

Cyndi

With ultimate focus on lager beers

a line of beers in different glasses and different colors of beer

By Gary Spedding, BDAS, LLC, Lexington, KY

From raw materials (including terroir) through processing to packaging, and during product shelf life, we are all aware that many factors and volatiles impact the flavor profile of our beers. In the US, the focus for many years dealt with pale ales and ever more hoppy beers – IPAs. Then along came the sour beer “revolution.” Now, recalling that in olden times the term ale referred to unhopped – beverages and beer to hopped styles. Thus, old definitions of ales without hops refer primarily to gruit (or gruyt), a mixture of herbs, spices, and botanicals used for bittering and preservation before hops became standard in the 16th century. These unhopped brews, were often called gruit ales and made use of ingredients like Myrica gale (bog myrtle), yarrow, and wild rosemary. Recipes for such beverages were included in an article by this author (Zymurgy, Vol. 16 #4, 1993). Today brewers are beginning to really expand their horizons and are using some long lost or less familiar to modern brewing practice ingredients – including cannabis-infused beers. Hence the brief note on overall flavor origins here. A growing concern over alcohol consumption has led to non-alcohol or lower alcohol  concentration beers (NAB’s, LAB’s  – NABLABS). The new realm requiring careful attention to attaining a truly, not “worty,” more representative beer-like flavor per style and allowing for shelf-life stability. Such beer especially NAB’s really requiring a Pasteurization process – to protect against microbial off flavors. And some issues of can corrosion and beer spoilage issues of late need thinking about in relation to all this.

  Now a plethora of brewing research papers have appeared recently covering such topics noted above – however, many not accessible/discoverable by brewers. Thus, this article is focusing on a few keys to flavor and leads readers to some relevant publications for them to gain further insights allowing for continued flavorful high quality beer production. In addition, the tools for understanding sensory properties, known as flavor wheels, are considered with new versions made for this article.

  Flavor wheels (new and older published versions) and now flavor maps, created by this author exist for beers – including barrel aged or rested beers, base malts, specialty malts, and hops (1,2). Data collected from across the entire process of beer production (including from flavor wheels) fits now into a term called Omics. In simple terms this refers to the masses of collective data that helps us see the holistic (or more complete) picture of a topic (3), including full and complete sensory profiling (2,4).   

  So now, the idea behind this short article and the three flavor wheels, and the schematic map of yeast (fermentation associated flavors) (Figures 1-4) is to present, in a hopefully more easily accessible format, the key terms associated with beer flavor characteristics. With a drive to get to the “blueprint” of the taste active components – all the key volatiles in the glass that are interpreted by the human sensory apparatus. Furthermore, the combinations of which are providing the flavor profile for each beer and style. Malt, hops and yeast the thrust of the content here. With respect to a fuller account of microbiological flavors and issues, coauthor Tony Aiken and I covered the subject in some depth in a recently published Microbiology volume (4). The base on that chapter being microbiological associated flavors and taints – thus, the  good, the bad and the ugly flavor notes, involved in brewing beer, including non-alcoholic and low alcoholic beers, and how they are assessed using sensory evaluation methods and tools such as the flavor wheels and now flavor maps. More detail on beer in wood – rested or maturation flavors are covered elsewhere (2).

(Figure 1)  A base malt types flavor wheel
Typical beer flavor notes that can be expected in beers based upon the choices of malts available to brewers.

  While this is a general paper the idea for the thread came from a very recently published work dealing with aroma component analysis to characterize lager, ale, and sour beer styles (5). This is quite the work – highly detailed and will be further covered in a subsequent article in this magazine (and noted below plus in Figure 5). Cutting now to the chase – or sniffing out the details, Figure 1 – base Malt Flavors, Figures 2 and 3 – Hop Flavors and Figure 4 – Yeast/Fermentation Flavors present a global view of beer flavor via origins and chemistry during processing. Aromatics (flavor = aroma and taste) – associated with raw materials – malt, hops and the cooking reactions known as the Maillard reaction – toasty, burnt, caramellic qualities – nutty, coffee, chocolate are included here. Figure 1 – Malt flavors – data is now enhanced by recent new data including terms: smoky, vinegar, earthy, roasty, malty, fruity, caramel, banana, floral/honey – with more specific odorant chemical names and odor descriptors included (6). The general data in Figure 1 obtained from an article by the author in the Scandinavian Brewers Review (Vol. 73, No. 1, 2016). With pale malt coverage and a sensory wheel of brewing malts noted and cited in another recent publication (7). For top fermented beers and influence of malt composition on the quality and flavors  see Liguori, et al (8 and see 9). While things can get specific in terms of chemical names, common names, thresholds (the concentration of molecules – detectable and identifiable by the brewer and consumer) this article adheres mainly to the basics.

(Figure 2)  An original base aroma qualities classification hops flavor wheel.
The basics of simple hop aroma/flavor delivery encompassed eight “positive” attribute classes and one off-flavor first tier class. Figure 3 shows a more expanded view today.

  Now, hopping to it, Figures 2 and 3 – Hop Flavor Wheels present the generalizations of flavor associated with and expected from hops. Details derived from the author’s works in the Scandinavian Brewers Review (Figure 2 – the general profiles of flavors conveyed by different hops and fresh and aged hops, and  Figure 3 – new class hop descriptors – SBR, Vol. 73, No 2, 2016). Leading now into yeast and fermentation, a discussion of the interplay of hop varieties, harvest time, and yeast via seeking out sensory factors was presented very recently (10). A set of sensory terms that will lead us to the finale of this article, and thus to Figure 5 appear in this latter work.

(Figure 3)  An expanded hop characteristics flavor wheel.
A detailed set of twelve first tier terms, as standard terminology for hop-derived flavor classes, appears here along with flavor descriptors in the second tier.  

  Yeast generated flavor notes – a hugely complex topic, are summarized in Figure 4. With that figure reviewed it provides the final notes summarizing the basics of raw materials and fermentation and lead us back to work noted above by Herkenhoff, Broedel, and Frohme (5). Aroma component analysis leads to the characterization of lagers, ales, and sour beers. Here we focus only on the Lager world. Bringing general sensory characteristics as noted from raw materials and yeast into focus on a substyle specific basis. Creating even a basic flavor wheel from the data for six lager class substyles – Bock, Helles, Keller (cellar), Lager, Schwarzbier and Pilsners proved to overbearing and unreadable even with base descriptions for over fifty distinct chemical compound volatiles. So, a quick summary graph displaying twenty baseline flavor classes is presented here instead. Each class term deriving from or built up in flavor profile attribute from many of those fifty distinct compounds. Many individual compounds – acids/fatty acids leading to waxy, soapy, and cheesy classifications for example.

(Figure 4)  A chart mapping out key flavor terms associated with yeast metabolism and fermentation. Fermentation provides many flavorful volatiles for beer. Components derived from malt, hops and other raw materials are also further processed at this brewing stage.

  See Figure 5. The general similarities in flavor profiling and differences for the six lager class substyles are illustrated there. The y-axis numbers refer to the number of chemical component volatiles associated with the x-axis general class descriptors, ethereal, nutty, fruity etcetera. Brewers could evaluate such styles and agree or disagree, learn from, or add to their understanding of the flavor profile qualities of this overall class of lager beers. Building up their sensory lexicon. Note, the bar heights represent the numbers of components in that base class as noted for the number of beers examined per style. They do not represent the perceived intensity of those compounds adding to that category. Compounds are discerned and identified by consumers based on concentrations present that achieve their threshold of detection values. Volatile concentrations also vary in the different beer styles.  Also, compounds can act together – synergistically (enhancing the detection of others) or antagonistically (masking other compounds’ aroma detection) by the human sensory apparatus. Moreover, we are all sensitive to different degrees in our sensory perceptions. 

(Figure 5) Flavor vs. volatiles by number conveying key attributes for six lager styles.

  In summary, beer flavor is complex. Noting here that flavor is the combination of aroma and taste – with aroma the major player in the overall flavor profile delivery. It is hoped though that the article has shown the basic – origins and flavor descriptors derived  from raw materials to finished product – your quality beers. With the end note that things can change with pasteurization and during shelf-life of the beer in trade. We leave off here with three final references – one that characterizes key factors in lager beer flavor (11) and another discussing both positive key odorants and off-flavor notes in many different beer styles and detailing how to enhance aroma control and improve beer quality (12). The latter complementing well the work of  Herkenhoff, Broedel, and Frohme (5). And finally, one on how pasteurization and storage can affect the aroma compounds in lager beer (13). Cheers.           

  A flavor wheel for this set of data proved way too detailed so a bar chart graph has been presented in place of either wheel or map. Here seen is a breakdown of key differences in flavor profiles for six lager style categories. The y-axis values represent the number of different chemical components (the aroma/flavor volatiles) detected that fall within the respective first tier – general class descriptors – nutty, fruity, floral etcetera for the six styles examined. Many components exhibiting similar or different fruity, floral etcetera attributes. Not detailed herein. The number of each style examined is shown below the style name. The reader may need to seek out information on the styles as presented here. A starting point would be the Beer Style guidelines from the Brewers Association. https://www.brewersassociation.org/edu/brewers-association-beer-style-guidelines/ 

References: [Or footnotes]1) Spedding, G. A brief history and use of sensory flavor wheels. Artisan Spirit. 2022.
Issue 39.[Readable online at Artisan Spirit’s website and at the neat open access
repository of papers and articles – ISSUU.}

2) Silvello, G. C.; Bortoletto, A. M.; Alcarde, A. R. The barrel aged beer wheel: a tool for
sensory assessment. Journal of the Institute of Brewing 2020, 126 (4), 382–393.

3) Spedding, G. OMICS and the Future of Brewing and Distilling Research. In
Chemistry of Alcoholic Beverages, ACS Symposium Series, Vol. 1455; American
Chemical Society, 2023; pp 135–157, ch007.

4) Spedding, G.; Aiken, T. Chapter 19 – Sensory analysis as a tool for microbial quality
control in the brewery. In Brewing Microbiology (Second Edition), Hill, A. E. Ed.;
Woodhead Publishing, 2025; pp 325–374.

5) Herkenhoff, M.; Broedel, O.; Frohme, M. Aroma component analysis by HS
SPME/GC–MS to characterize Lager, Ale, and sour beer styles. Food Research
International 2024, 194, 114763.

6) Féchir, M.; Reglitz, K.; Mall, V.; Voigt, J.; Steinhaus, M. Molecular Insights into the
Contribution of Specialty Barley Malts to the Aroma of Bottom-Fermented Lager Beers.
Journal of Agricultural and Food Chemistry 2021, 69 (29), 8190–8199.

7) Svoboda, Z.; Hartman, I.; Běláková, S.; Pernica, M.; Boško, R.; Benešová, K.
Sensory Analysis of Malt. KVASNY PRUMYSL, 2022, 68(3+4), 628-636.

8) Liguori, L.; De Francesco, G.; Orilio, P.; Perretti, G.; Albanese, D. Influence of malt
composition on the quality of a top fermented beer. J Food Sci Technol 2021, 58 (6),
2295–2303.

9) Bettenhausen, H. M.; Barr, L.; Broeckling, C. D.; Chaparro, J. M.; Holbrook, C.;
Sedin, D.; Heuberger, A. L. Influence of malt source on beer chemistry, flavor, and flavor
stability. Food Res Int 2018, 113, 487–504.

10) Lino, T.; Forte, T. a. G. W.; Rodolfi, M.; Costantini, A.; Galaverni, M.; Forestello, G.;
Carbone, K.; Tsolakis, C.; Pulcini, L.; Bonello, F.; et al. Exploring the interplay of hop
variety, harvest time and yeast: Sensory and chemical dynamics in beer brewing.
Applied Food Research 2026, 6 (1), 101729.

11) Hong, J.; Wei, H.; Yin, R.; Xie, J.; Huang, H.; Guo, L.; Zhao, D.; Song, Y.; Sun, J.;
Huang, M.; et al. Characterization of Key Factors Associated with Flavor Characteristics
in Lager Beer Based on Flavor Matrix. Foods 2025, 14 (10).

12) Șutea, C. M.; Mudura, E.; Pop, C. R.; Salanță, L. C.; Fărcaș, A. C.; Balaș, P. C.; Gal,
E.; Geană, E. I.; Zhao, H.; Coldea, T. E. Beer Aroma Compounds: Key Odorants, Off
Flavour Compounds and Improvement Proposals. Foods 2025, 14 (24).

13 Gagula, G.; Đurđević-Milošević, D.; Ncube, T.; Magdić, D. The effect of pasteurisation
and storage on aroma compounds in lager. Journal of the Institute of Brewing 2024, 130
(2), 83–92.

About the Author

  Gary Spedding, Ph.D., Brewing and Distilling Analytical Chemist. Moved from academic research and teaching into the world of brewing analysis and education in 1999 when appointed as manager then, subsequently, director of the laboratories at the Seibel Institute of Technology in Chicago. Now with over 25 years of experience in testing and judging/evaluating beers and spirits. Founded Brewing and Distilling Analytical Services in Kentucky (2002): analytical testing/educational training – beverage production and sensory experiences. Basic research and developing/improving methods of analysis. Invited speaker at renowned beverage and chemistry society conferences, author and editor of numerous articles, papers, and book chapters. Spedding is currently lead editor for the Journal of Distilling Science (JDS).

Sealing the Craft

Cyndi

How modern bottling and canning machines power breweries

several canning and other packaging machinery on the flor of the brewery

By Alyssa L. Ochs

In the craft brewing industry, packaging is a critical step where craftsmanship intersects execution. Many breweries can brew exceptional beers, but if carbonation is inconsistent or oxygen creeps in during packaging, the end product won’t reflect the hard work you put into it.

  For modern breweries, packaging beer in bottles or cans is more than just the last step for to-go sales – it’s a natural extension of the business that impacts brand perception, quality, and profitability. As the years go by, many breweries are looking to scale production and expand distribution, making the need for precise, reliable, and efficient canning and bottling equipment more important than ever.

  Beverage Master explores the packaging machine options available to breweries today and how to choose the right one for your current and future operations. To learn more from a successful brewery’s perspective, we connected with the team at New Realm Brewing Company, which has expanded its operations across multiple cities and states. 

Types of Brewery Packaging Machines

  There are three basic categories of brewery canning and bottling machines: manual, semi-automatic and fully automatic. Each type offers a different balance of speed, cost, labor, and control.

  Manual systems are often the first entry point for new breweries because of their simplicity and affordability. Manual setups typically rely on counter-pressure or gravity fillers and require careful management of fill height, foam control and timing between the fill, seal, and sanitation between cycles. A manual canning or bottling machine may be sufficient for taproom-only breweries and for pilot systems used for experimental batches. They can produce excellent beer, but only with tight standard operating procedures to reduce risks.

  Semi-automatic canning and bottling machines are helpful as a brewery’s production ramps up because they enable controlled filling speeds and provide more consistent carbon dioxide purging, which improves shelf life. They often reduce human error risks with integrated seaming and capping while allowing quick changeovers between assorted sizes and formats of cans or bottles. These systems may be ideal for breweries that package beer multiple times per week, are looking to increase distribution and want to reduce human error and worker fatigue.

  The third category of canning and bottling machines is fully automated and may offer inline rinsing, filling, and sealing in a continuous flow. Fully automatic machines typically have programmable controls for repeatable settings and integrate packaging with labeling and case packing. It’s usually time to move to this type of system when you are expanding into wider distribution and when running the numbers proves that packaging efficiency directly impacts your revenue.

  Kane Wille, the director of brewing for New Realm Brewing Company, told Beverage Master that his brewery is currently running a KHS Innofill  Can C 21 head filler and a Kosme Barifill 28 head filler. New Realm is a craft brewery and distillery founded in 2016. It has a flagship brewery and restaurant in Atlanta, Georgia, a production brewery and restaurant in Virginia Beach, Virginia and a brewery and restaurant in Charleston, South Carolina.

  There’s also a stylish New Realm taproom in Auburn, Alabama, a barrel-aging and blending-focused location in Greenville, South Carolina and an outdoor-and-music-focused venue in Suffolk, Virginia.

  “The KHS line was chosen for its versatility (12 oz. standard, 12 oz. sleek, 16 oz. standard and 19.2 oz. standard) and speed,” Wille explained.

  “The Kosme line was purchased at auction and commissioned to meet the projected demand of on-the-books business and the anticipation of a swing back to bottles in the craft market.”

Benefits of Modern Canning and Bottling Machines

  Whether you choose to can or bottle your beer, the equipment you choose helps protect it from oxygen ingress, as even tiny amounts can dull the hop aroma, darken the beer’s color, and shorten its shelf life. Optimal packaging machines ensure the best consistency across batches, offer higher throughput for faster packaging cycles, and optimize your labor force. With more accurate pours and better foam control, you’ll use less beer and save money over time.

  Wille from New Realm Brewing Company said that since commissioning their KHS line, the most noticeable benefits have been a significant increase in shelf life and drastically improved throughput.

“Since commissioning the Kosme line, our biggest win has been the ability to capitalize on the untapped market of bottles in the craft space since the heavy shift to aluminum,” Wille said.

  However, Wille also shared that commissioning any new piece of equipment is a tough endeavor and always takes longer than expected.

  “The KHS line took the most time to dial in the underlet gas and the bubble breaker to reduce HSO across the various package sizes it can handle,” he said. “Training and troubleshooting just take time due to the complexity of the machinery, and navigating the world of parts and service post-initial-commissioning is a chore. The Kosme line, as it was purchased at auction and was ‘used’ equipment, was a much taller mountain to climb. For quality and dependability reasons, many of the wear parts and gaskets on the line have been rebuilt or replaced or are on the radar to require some serious attention as we tack on the run hours.”

Cans vs. Bottles: Strategic Considerations

  Beyond just branding and costs, the choice between cans and bottles affects many aspects of a brewery’s coordination and beer’s product stability.

  With cans, you’ll get the best protection from light and lower dissolved oxygen potential. Industry trends show that many beer drinkers now prefer cans, which are also lighter weight than bottles and more cost-effective to ship. However, canning beer requires precise seaming, and the initial investment in a canning line is significant.

  The advantages of bottles include compatibility with refermentation in the package and the traditional, premium perception, which is critical for certain beer styles. Bottles are also the preferred option for some highly carbonated and specialty beers, such as Belgian beers. But when you package beer in bottles, you’ll also face the risk of light exposure and must account for the heavier packages that may be more expensive to transport.

Quality Metrics to Monitor in Packaging

  The initial investment in brewery packaging equipment is just part of the equation; successful brewers know they must continuously monitor its performance to achieve consistent results.

  One key quality metric to pay attention to is dissolved oxygen and aim to keep it as low as possible for flavor stability and shelf life. Seam and cap integrity are also essential to prevent leaks and contamination. To ensure compliance and reduce product loss, brewers pay attention to fill height and volume accuracy. Meanwhile, carbonation levels need to remain stable during transfer and packaging, as over- or under-carbonated beer affects mouthfeel and overall perception.

How to Choose the Right Packaging System

  If you are opening a new brewery or thinking of upgrading your canning or bottling equipment, it’s important to think beyond today’s volume so you don’t outgrow it too quickly. If you invest in slightly higher-capacity equipment now, you may be able to prevent an expensive upgrade later.

  Choosing a packaging system requires evaluating the total cost of ownership beyond the purchase price. Maintenance frequency, downtime risks, and the cost of replacement parts are all considerations. It’s also wise to look at how a packaging system integrates with your cold storage space, fermentation schedule, and distribution timeline. Choosing the right equipment manufacturer can lead to a long-term partnership that includes operator training, installation support and troubleshooting help. Having dependable, on-demand support can often be just as valuable as the machine itself when something goes wrong.

  Wille from New Realm Brewing Company agreed and told Beverage Master why he thinks it’s always important to account for access to support and spare parts.

  “Many of the more complex lines are coming from Europe, and there is a significant time difference to keep in mind when in dire need of assistance during your production hours, even if there is stateside service available,” Wille said. “Many high-speed lines also use proprietary parts that may need to ship from overseas, and since COVID, it seems the availability of parts sitting on the shelf domestically or abroad is reduced. 

  Wille also noted that breweries should account for service contracts and consider building in options like teleservice.

  “Scheduling and training on staff personnel for preventative maintenance should be a day-one consideration,” he said. “It’s also very important to size your line to not only match current throughput demand but allow yourself room to grow into its capacity.”

  Whether you’re manually filling limited releases or running a high-speed, fully automated line, choosing the right equipment boils down to your production goals and growth trajectory. As competition in the craft beer market remains strong and steady, breweries that shop around for the best packaging machine fit will stand out for their consistency in every can or bottle that comes off the line.

Adaptive Employee Skills Training Unlocks Competitive Advantage

Cyndi
A WOMAN AND A MAN STANDING IN FRONT OF A STILL IN A DISTILLERY

By Jorge Izquierdo, Vice President of Market Development for PMMI

As workforce woes persist, investing in training, technology, and pertinent partner outreach is the best way forward.

  Labor issues continue to be a production stumbling block for craft beer and spirit manufacturers, but solutions, such as artificial intelligence (AI), automated systems, and targeted training, can help increase efficiency and overcome workforce problems, according to “State of the Industry 2025,” a business intelligence report from PMMI, The Association for Packaging and Processing Technologies.

  Attaining and maintaining a qualified workforce continues to be one of the most demanding challenges facing the industry and is characterized by the shortage of skilled tradespeople, technician burnout, and limited internal capacity to meet customer demand.

  Rising labor costs are reshaping brewery strategies, according to a recent study entitled Craft Beer Production in the US Market Research Report (2015-2030) from IBISWorld.

  Breweries are paying more to attract talent and keep pace with inflation, but this puts a real squeeze on already-thin profits and forces innovative staffing and retention tactics, the report states.

  Technological advancements in brewing techniques and supply chain management are resulting in better quality and more creative flavors, helping the market to grow, according to a study called Craft Beer Market (2024 – 2030) from Grand View Research. 

  At the same time, research from the Manufacturing Institute (MI) suggests that there is no one-size-fits-all approach for manufacturers seeking to revamp their manufacturing and training programs. In other words, manufacturers need to tailor their labor upskilling strategies to realize transformative operational benefits fully.

  In fact, MI’s study concluded that manufacturing organizations that emphasize the development of adaptive skills are more likely to unlock a competitive advantage, accelerate their transformation, and directly address the manufacturing skills gap. The research also demonstrated that adaptive skills represent the critical translation point necessary for reskilling the current workforce and for rebranding, attracting, and retaining talent.

  Many savvy manufacturers are considering automation not only to address production issues but also to alleviate the challenges of labor shortages. At PMMI’s 2025 Top to Top meeting, a report entitled 2025 Performance Optimization: Insights for Packaging Line Readiness concluded that three distinct, yet interconnected, phases create an environment of operational readiness. These phases are vertical startups (productivity), operator training (workforce), and IT-OT integration (automation).

  The operator training phase focuses on ensuring that operators have the necessary knowledge and resources to perform their roles effectively. This phase emphasizes the importance of designing training programs around the needs of the workforce and adopting a people-centric approach. Key themes include using technology to improve training, enhancing the skills of trainers, and regular and hands-on training.

  Technology to support training and improve information retention should include videos, interactive manuals, augmented reality, and tablet-based instructions. In addition, beverage manufacturers should request that original equipment manufacturers (OEMs) simplify machinery design and provide user-friendly and intuitive human-machine interfaces to accommodate operators with varying skill levels.

AI Provides Increased Efficiency

  One tool for workforce development is AI. According to PMMI’s 2024 study, The AI Advantage in Equipment: Boosting Performance and Bridging Skills Gaps, AI is not at the level yet where tasks can be completed solely by the technology, so a human is still required to make final decisions. The key impacts that currently available AI solutions can have on the packaging industry are increased staff productivity, better machine performance and OEE, and the mitigation of skills gaps and labor issues.

several employees in a distillery looking at a computer screen titled ai fermentation

  AI technology, particularly AI assistants, has the most potential to improve staff efficiency and productivity. Time-consuming tasks, such as data entry and coding, can now be completed with the help of these assistants. This increases the speed at which projects can be completed, freeing up additional time for staff members to focus on other tasks.

  With a high turnover of staff positions (particularly among maintenance staff and machine operators), optimized training can ensure that employees are receiving the highest-quality training available. AI assistants and generative AI predictive maintenance solutions enable users to ask questions about any issues they encounter, further allowing staff to upskill independently and reduce the risk of human error.

More Solutions Are Available

  PMMI’s OpX Leadership Network explores common industry challenges and develops new work products through special task forces and solutions groups. The entire OpX library of solutions is free for all to use.

  Recently, OpX has focused its efforts on bridging the workforce divide characterized by seasoned operators with decades of institutional knowledge leaving the industry, while a new, tech-savvy workforce comes in with a fresh perspective on learning, relevance, and impact. This generational shift demands not just replacement, but a reinvention of how work is performed.

  To aid in this process, OpX has launched two industry-led solutions: Operator Training Standardization (OTS) and Data Management Standardization (DMS). Built collaboratively by OEMs and consumer packaged goods firms, these work products can help close the gap between experience and execution — accelerating onboarding, strengthening data practices, and elevating performance across entire operations.

  Another tool, PMMI’s Mechatronics Certification program, provides technical credentials to employees through a series of tests based on industry-developed skill standards. The PMMI Mechatronics Certification program:

•     Helps employers assess workers for core skills.

•     Guides schools in developing curricula to prepare students for the manufacturing workforce.

•     Provides a career pathway for students looking for rewarding careers in advanced manufacturing.

The Struggle to Stay Ahead in the Face of Constant Change

  At the same time they’re adapting to new technologies and operational models, beverage producers are facing economic pressures, labor shortages, and regulatory changes, according to Ernst & Young LLP’s Trends in the Beverage Industry: Navigating Change and Innovation report.

  Industry success requires innovation and optimized supply chains, as well as social media- and data-driven marketing strategies, even as market fragmentation complicates the landscape.

  While many craft beverage manufacturers tend to focus on practical applications that can help solve real problems on the plant floor, one clear way to improve efficiency is by increasing corporate investment in workforce development programs.

The Big Beautiful Bill on Your Beverage Business

Cyndi

There is plenty of debate from stakeholders across finance, labor, and industry groups.

a group of men and woman sitting around a table on a brewery production floor discussing the new tax bill

By Raj Tulshan, Founder & Managing Partner, Loan Mantra

Welcome to the bright start of a new year! 2026 brings new laws and legislation that will impact the beverage business industry. At the forefront of industry news is the One Big Beautiful Bill Act, often called the Big Beautiful Bill. So how does the Big Beautiful Bill affect beverage businesses like breweries, distilleries, bars, restaurants, distributors? Let’s take a look.

  As with any major legislative proposal, there is plenty of debate from stakeholders across finance, labor, and industry groups. Now that the statute is moving from draft language to enactment, beverage businesses can start planning around what’s actually in effect.

Tax Relief Extension

  The Big Beautiful Bill enables beverage business owners to better predict revenue and outcomes because it extends corporate and individual tax rates from the 2017 Tax Cuts and Jobs Act. The Act, which was scheduled to expire at the end of 2025, helps owners avoid large tax increases. For beverage business owners, especially small producers, distributors, and related service providers, it provides a level of certainty and security for strategic plans. For business owners operating as pass-through entities such as LLCs, S-corps and partnerships, the Qualified Business Income (QBI) deduction, which is usually up to 20% of profits, is extended. This should help owners of pass-through beverage businesses lower their taxable income if they qualify.

Larger, Immediate Expense Limits

  The Big Beautiful Bill increases expensing limits to $2.5M for qualified property and allows for immediate expensing (100% bonus depreciation) so businesses can deduct even bigger asset purchases immediately, rather than depreciating them over many years. This can be a great incentive to invest in production equipment, brewing systems, delivery vehicles, taproom upgrades, or refrigeration and storage that is needed now and reduce taxes sooner rather than later. But some production-related tax perks (like Qualified Production Property) have specific eligibility rules. This means if your beverage business’s facility doesn’t qualify under the IRS’s definitions, you won’t receive bonus depreciation for portions of the property used for sales or tasting rooms. Check with your financial or tax advisor to confirm eligibility.

To make these deductions easier to support, keep clean documentation: a formal written statement from vendors, an itemized list of assets purchased, and invoices showing the purchase price. This will can substantiate the deduction and any later claim.

Expanded Deductions

Interest on Loans:  The Big Beautiful Bill reinstates a more generous calculation to deduct business interest on commercial loans. Beverage businesses can again add back depreciation, amortization and depletion when calculating adjusted taxable income. This change allows capital-intensive businesses, which carry heavy debt loads and have high depreciation expenses (such as those operating large vehicle fleets), to potentially deduct more of their interest expenses and reduce their overall tax liability. It also allows for expanding beverage business owners to take greater deductions paid on commercial loan interest to help finance future goals like buying a new facility or refrigerated box trucks. Check with a loan advisor to ensure all qualifications are met.

  From an operational standpoint, many beverage businesses will want tighter visibility into payables, receivables, and loan accounts—especially when interest expense is a key lever in financial workflows.

Research and Development:  As beverage business owners push for innovation by developing new drinks and products, domestic research and development expenses can once again be fully deducted in the year they are incurred. This is significant even for small businesses that are innovating with products, processes, or software. Beverage Research & Development (R&D) is crucial for driving innovation through the creation of new beverages, enhancing existing formulas, and catering to the evolving consumer demands for health, taste, and sustainability. This has financial impacts on concept development, ingredient sourcing, prototyping, sensory testing, regulatory compliance, or even scaling up manufacturing to remain competitive. Key areas of focus include functional ingredients, plant-based options, low-sugar alternatives, and sustainable packaging, which require market research, flavor science, and process optimization.

  If you’re capturing R&D time, lab supplies, or pilot-batch inputs, using financial automation software (or an expense management app tied to your accounting system) can help track costs in real time and keep supporting documentation consistent across your finance team.

No Tax on Tips

  One of the biggest changes created in the Big Beautiful Bill is the new “No Tax on Tips” requirement. This temporary provision was put in place to be effective for tax years 2025 through 2028. It allows qualified tips to be income-tax-free of up to $25,000 for federal taxes only. All wages, including tips must still be reported and recorded by both employer and employee. What is important to note is that Social Security and Medicare taxes still apply on tips — the deduction affects only income tax. In addition, some states may not conform to this deduction, so tips could still be taxed at the state level. Employers must report tip income on W-2s or similar forms for employees to claim the deduction.

  It’s also important to know who qualifies for this tax benefit. The rule applies to workers in occupations that “customarily and regularly receive tips”, as recognized by the Internal Revenue Service. Good examples from the beverage industry include staff such as: Bartenders, servers/waitstaff, cocktail servers, barbacks, tipped food runners, sommeliers/wine stewards, or counter service staff who receive tips. If your business handles or hold events this could also include Food/Beverage delivery drivers, catering service staff, event bartenders, valet attendants and beverage service staff. There are gray areas of this line item. If tipping is customary, regular, and documented then brewery taproom staff, tasting room hosts, coffee baristas, food truck operators (employees, not owners) and tour guides (brewery/distillery tours) may also benefit. Those who are NOT eligible are: Owners and partners, salaried managers (even if they receive tip-outs) and back-of-house staff unless tips are truly customary.

  To protect the business and employees, an owner should keep records separating true tips from service charges and other charges and ensure tip reporting ties back to POS/payroll. Clear facts and documentation matter, especially if an owner or employee must ever support a claim under state law or payroll records.

  The Big Beautiful Bill brings significant changes to the beverage industry, offering what is intended to be financial incentives for business owners. With extensions on tax relief, increased expensing limits, and expanded deductions, beverage businesses are better positioned to invest in growth and innovation. The act’s provision for tax-free tips provides additional support for frontline workers, offering a temporary financial boost.

  As the beverage industry continues to evolve, the Big Beautiful Bill ensures that businesses have the tools and flexibility to adapt to changing market demands. Whether you’re a small brewery experimenting with new flavors or a large distributor expanding your fleet, these legislative changes offer numerous opportunities to enhance operations and drive success.

  Business owners should remain informed and consult with financial advisors to fully leverage these benefits while navigating any specific eligibility requirements. The Big Beautiful Bill marks a positive step forward, reinforcing the industry’s foundation and encouraging a vibrant, innovative future.

The Tipping Point

  Who qualifies for the new “no tax on tips” benefit? *

YES, RULE APPLIES:

If tips are customary, customer-provided and reported, these workers generally qualify.

•     Bartenders

•     Servers / waitstaff

•     Cocktail servers

•     Barbacks

•     Tipped food runners

•     Sommeliers / wine stewards

•     Counter service staff who receive tips

      •Food delivery drivers

•     Catering service staff

•     Event bartenders

•     Valet attendants

MAYBE RULE APPLIES:

Certain positions may qualify if tipping is regular and documented. If customers routinely tip and tips are tracked through payroll/POS, the role likely qualifies.

•     Brewery taproom staff

•     Tasting room hosts

•     Coffee baristas

•     Food truck operators (employees, not owners)

•     Tour guides (brewery/distillery tours)

NO RULE APPLIES:

•     Owners and partners

•     Salaried managers (even if they receive tip-outs)

•     Back-of-house staff unless tips are truly customary

•     Any role where “tips” are really bonuses or service charges

Important:  Mandatory service charges are NOT tips under IRS rules and do not qualify.

*This is just a general guideline. Visit the irs.gov page for complete guidance and clarification on this topic.

  Raj Tulshan is founder and managing partner of Loan Mantra, connect at Raj@loanmantra.com or on Linked-in at https://www.linkedin.com/in/tulshan/.

Sustainability or Survival?

Cyndi

When wastewater projects actually pay for themselves

a wastewater treatment plan processing the waster water in a brewery

By Frances Tietje Wang

As the beverage industry moves further into an era of necessary efficiency to accommodate skyrocketing costs, wastewater management cannot be an overlooked utility function. Aging municipal infrastructure, rising treatment costs, and stricter enforcement of industrial pretreatment requirements have pushed utilities to the forefront of operational and financial concerns. Under the U.S. Environmental Protection Agency’s (EPA) National Pretreatment Program, facilities exceeding domestic-strength benchmarks for biochemical oxygen demand (BOD), total suspended solids (TSS), or allowable pH ranges may face surcharges, permit modifications, or enforcement actions.

  This regulatory pressure coincides with broader business expectations. Wastewater performance now sits at the intersection of financial risk, regulatory compliance, and sustainability reporting. As production varies and the market remains unpredictable with cost pressure and uncertainty, sewer bills continue to fluctuate, impacting overhead costs and future planning. Compliance failures can delay expansions, harm government relations, and/or require capital upgrades under compressed timelines. At the same time, water and wastewater metrics are now standard components of sustainability benchmarking and ESG (environmental, social, governance) disclosures in the brewing sector.

  As a result, wastewater investments are no longer evaluated primarily as environmental gestures. The strategic question has become whether a given project delivers measurable return on investment (ROI) and protects long-term operational viability.

Defining “Payback” in Wastewater Projects

  In beverage production, payback extends beyond a simple comparison of capital expenditure (capex) and operating expense (opex). Direct savings commonly include reduced BOD and TSS surcharges, avoiding penalties for noncompliance, and lower costs associated with chemical neutralization or off-site hauling. These kinds of savings align with municipal cost-recovery frameworks, which are embedded in federal pretreatment regulations 40 CFR Part 403, which is designed to prevent interference with publicly owned treatment works.

“Wastewater investments are no longer evaluated primarily as environmental gestures. The strategic question has become whether a given project delivers measurable return on investment (ROI) and protects long-term operational viability.”

  Indirect value is often more consequential.  Stable wastewater systems can reduce unplanned downtime, protect discharge permits, and preserve expansion capacity. In fact, research has shown that wastewater constraints frequently become limiting factors for brewery growth before brewhouse or fermentation capacity is exhausted.

  Across utility data and academic literature, payback timelines cluster by project type. Pretreatment, solids capture, and flow-equalization projects commonly can achieve ROI payback within 1 to 3 years, whereas anaerobic digestion and water reuse systems often require 3 to 7 years. These all depend on scale, incentives, and local rate structures.

High-ROI Wastewater Projects Breweries and Distilleries Are Actually Using

Solids Capture and Flow Equalization: Upstream solids capture combined with flow equalization remains one of the most reliable ROI drivers in brewery and distillery wastewater management. Methods such as screening, settling, and rotary drum filtration reduce TSS loading before wastewater reaches municipal systems. This results directly in lowering surcharge exposure and downstream treatment demand.

  Flow equalization further improves economics in smoothing short-duration load spikes associated with cleaning-in-place (CIP), yeast removal, or batch discharges. EPA guidance emphasizes that stabilizing hydraulic and organic loading often provides greater compliance benefit than adding downstream treatment capacity, particularly for batch-driven industries such as brewing and distilling (EPA, 2000).

  This approach is reflected in brewery practice, as at Sierra Nevada Brewing Co., which documents wastewater treatment and solids management as integral components of its sustainability strategy. At the facility in Mills River, North Carolina, wastewater treatment infrastructure is embedded into site design rather than treated as an afterthought.

pH Neutralization and Smart CIP Controls: pH excursions remain among the most common enforcement triggers in municipal pretreatment programs. Extreme pH changes can inhibit biological treatment and damage sewer infrastructure. By using methods such as automated pH neutralization, conductivity-based diversion, and smart CIP controls, it is possible to reduce reliance on operator intervention and lower the likelihood of violations.

  Scholarly reviews consistently describe brewery wastewater as highly variable, driven by batch operations, product losses, and cleaning cycles. The best option for managing these sources is in upstream practices, which is often more effective than relying solely on end-of-pipe corrections.  Industry guidance reinforces optimizing sanitation chemistry and discharge timing, some of the most cost-effective wastewater interventions available.

Anaerobic Digestion (When It Makes Sense)

  Anaerobic digestion (AD) can deliver strong returns when organic loading is sufficiently high and consistent. The U.S. Department of Energy identifies beverage production as a sector with meaningful biogas potential, in particular where waste streams are concentrated and predictable.

  New Belgium Brewing is a well-documented example of anaerobic digestion. Trade engineering publications and supplier case studies describe how the brewery integrates anaerobic wastewater treatment and biogas recovery. In combining these two methods, the organic load is reduced while generating renewable energy, supporting both environmental performance and long-term cost control.

  Distilleries, which typically generate higher-strength effluent than breweries, often reach economic thresholds for AD more readily. Breweries may achieve viability at larger scales or through co-digestion strategies, but it is important to note that the literature says that AD economics depend on operational discipline, energy pricing, and access to incentives.

Water Reuse and Process Water Reduction

  Water reuse strategies, such as rinse recovery or reuse for non-product-contact utilities, can reduce both freshwater intake and wastewater discharge. The EPA’s Water Reuse Action Plan emphasizes “fit-for-purpose” treatment. The Plan discusses matching reclaimed water quality to its intended application rather than defaulting to over-treatment.

  Eel River Brewing Company is an excellent example of how small breweries have implemented reuse-adjacent strategies without complete reuse systems.

  By incorporating pretreatment infrastructure to reduce municipal impact and comply with discharge permitting requirements documented in municipal engineering analyses, the brewery illustrates how wastewater investment can scale to smaller producers when aligned with operational needs.

  Economic analyses indicate that reuse projects are most viable in regions with high water and sewer rates or where discharge capacity is constrained, and when integrated into broader water-efficiency programs rather than pursued in isolation.

Grants, Incentives, and Financing: The Hidden ROI Multiplier

  Technically sound wastewater projects proceeding are often determined by grants or low-interest financing if capital costs exceed internal investment thresholds. In the United States, the Clean Water State Revolving Fund (CWSRF) remains the primary financing mechanism for wastewater infrastructure, including eligible pretreatment and reuse projects.

  Energy recovery projects may qualify for additional incentives through state or utility programs. The Database of State Incentives for Renewables & Efficiency (DSIRE) is widely used to identify applicable funding opportunities and rebates.

  Producers who successfully secure funding tend to align wastewater projects with municipal objectives, such as reducing peak loading or deferring treatment plant expansion, rather than aspirational narratives. They may also use support applications with documented monitoring data rather than aspirational sustainability narratives.

Case Study Patterns: Making the Math Work, Not Waste

  Across scholarly literature and industry documentation, three recurring patterns emerge:

1.    Breweries implement solids capture and equalization, which consistently reduce surcharge exposure by stabilizing discharge characteristics.

2.   Distilleries and large breweries integrate anaerobic digestion with energy recovery. AD can offset both wastewater and energy costs when scale and incentives align.

3.   Mid-size producers leveraging CWSRF financing and state incentives frequently offsetting 30–50% of capital costs, bringing payback into acceptable ranges.

  In layering strategies, there is an opportunity for immediate and long-term cost savings.

Wastewater as Strategic Infrastructure

  Wastewater management has evolved from a compliance cost into strategic infrastructure. Breweries and distilleries that invest in the fundamentals of solids capture, equalization, smart controls, and right-sized recovery systems can reduce financial volatility, strengthen regulatory standing, and preserve growth capacity. As scrutiny tightens and costs rise, wastewater planning is no longer optional sustainability branding; it is a survival strategy for an operational reality.

Resources

 Fillaudeau, L., Blanpain-Avet, P., & Daufin, G. (2006). Water, wastewater and waste management in brewing industries. Journal of Cleaner Production, 14(5), 463–471. https://doi.org/10.1016/j.jclepro.2005.01.002

Sierra Nevada Brewing Co. (n.d.-a). Sustainability. https://sierranevada.com/sustainability

Planning Your Capacity

Cyndi

Starting your brewery on sound footing  

a black and silver photo showing a row of brewery tanks and components

By Erik Lars Myers

One of the biggest challenges a new brewery owner has when starting up seems like the simplest question of all: What size brewery am I starting?

There’s no fool-proof method to get this crystal ball prediction perfectly correct, but a commonsense approach can help target the outcome so that you can plan your investments wisely.

  The first decision begins with determining the size of your market. Ask yourself: Are you in a small town or a big city? Are you in a location that people can walk to, or do they have to drive? Do you have parking space? How much? How many seats do you have in your establishment? How many hours are you open? Are you distributing your product in kegs? Cans? Bottles? How many distribution customers exist within a half-hour drive of your location? How many of those will realistically put one new beer on tap?

  There are no easy answers or simple math, but going through those questions can give you the first gut check: Realistically – is this a relatively small operation serving your own neighborhood? Or are you building a manufacturing plant with plans to service a large metro area?

  When in doubt, don’t be afraid to undershoot a little. While you want to be able to make enough product to cover cost of goods, overhead and debt service, having to increase capacity because you have a high demand and great sales is a much easier – and nicer – problem to solve than having too much product or, worse, old product moving into the market because your brewing capacity and inventory outstrips demand. This is 2026, and we’re no longer in a market in which “if you brew it, they will drink.”

  However, be wary of 1- to 2-barrel operations which put a high demand on factory time without creating a reasonable amount of product. Making one barrel of beer takes roughly the same amount of work as making ten barrels of beer or thirty barrels of beer. The difference is economy of scale. For any commercial operation, even an exceedingly small one, be wary of anything smaller than five barrels.

  Once you determine your relative market demand, the first limiting factor you must consider is the size of your production floor. As a rule of thumb, the maximum yearly capacity of your brewery will equal one barrel per square foot of floor space. For example, if you have a building which – after offices, storage space, loading dock, and forklift parking – has roughly 2,000 square feet of space dedicated to your production floor (brewery, cellar, packaging), the most you’ll be able to get out of that space is approximately 2,000 barrels per year. Note! You will definitely make less than that, but over time you probably won’t squeeze out more.

  Next, it’s time to figure out the balance of system size to production space and what you’re planning to offer. If you intend to sell a couple of solid and consistent offerings in a planned distribution, you can lean towards a larger system that will allow you to make a higher volume of those few offerings while brewing less frequently. If you are planning a wide slate of varietal, seasonal beers – or less traditional beers with experimental ingredients – consider a smaller system with higher turn capacity.

  In today’s market, shooting smaller is not necessarily a bad idea. The difference between a 7-barrel brewhouse and a 15-barrel brewhouse can be measured in hours. In other words, a 7-barrel brewhouse can be used to create 15 barrels of the same beer but it will take twice as long on the brew deck to do it. On the other hand, the difference between a 15-barrel brewhouse and a 7-barrel brewhouse can be measured in days. As in, the number of days you will have stock to sell from a 15 barrel batch is twice that of a 7-barrel batch.

  Unless you are the only game in town, incredibly lucky, or exceptionally good, sales will be your largest production bottleneck.  When it comes to figuring out how many fermenters and brite tanks to purchase, and what size, start by looking back over all the other decisions and considering turn time.

  On average, a good rule of thumb is approximately 16 – 18 days between a beer being brewed and it being ready for market. That is one day in the brewhouse, 10 – 14 days in the fermenter including cold crashing, 1 – 2 days in a brite tank, and 1 – 2 days for packaging. That timeline can be extended for lagers by a few days or a few weeks.

  Can beer be produced faster than that? Without question. But as a rule of thumb, at start up, plan to take your time. Give yourself time to get it right.

  Now take a moment to revisit the idea of throughput and your market size and how quickly you might move through product.

1 barrel of beer = 31 gallons = 2 half barrel kegs = 6 sixth barrel kegs = ~240 pints.

With a 15-barrel brewhouse every batch would produce

465 gallons OR 30 half barrel kegs OR 90 sixth barrel or most realistically a combination thereof.  All that equals 3600 pints of one sole product.

  In a regular taproom setting you can expect to sell, on average, 1.5 to 2 beers per customer on a visit. In a 150-seat taproom at maximum capacity, if all the seats turn over twice per night you can expect to sell approximately 300 pints, or just over 1 barrel of beer. Over the course of any given week, in a high-volume taproom, you should aim to turn over a minimum of 1 turn of your brewhouse in a 1-week period. In other words, plan to brew at least once per week, on average, to begin with. Again – as you grow, you can always add more brew days and more fermenters.

  It is also good to remember that the numbers of beers that you offer will not correspond to a higher volume of sales, but rather it will spread those sales across a wider number of products with the largest volume concentrated on 2 – 3 beers, probably your IPAs and Pilsener (or Pilsener analog). To put this another way: if you have 6 beers on tap or 12 beers on tap, you will still sell the roughly same amount of beer per week, but all of the beers will move more slowly, with the possible exception of your fastest selling beers.

  This all means that a mix of fermenter and brite sizes can be helpful when planning capacity. A mix of fermenters that match your brewhouse size and fermenters that are double your brewhouse size is a good idea. Double-batch your high-volume beers and single-batch your slower moving offerings to manage inventory well. If something turns into a high-volume beer, you can always make more. If something is moving slowly, there’s nothing worse than having so much that it isn’t just unpopular, but also old and stale.

  If you are brewing at least once per week and have a 16-day turn on your fermenters, then you should have a minimum of 4 fermenters. However, give yourself room to get ahead of inventory and take your time with beer, or the option to make more of your high-volume beers. An easy recommendation is 4 fermenters that match your brewhouse size and 2 fermenters that are twice your brewhouse size. Thus, a startup with a 5-barrel brewhouse might start with four 5-barrel fermenters and two 10-barrel fermenters. 

  Since turn time in a brite tank is much smaller than in a fermenter, you need fewer brites. You will want one brite tank for every 3 – 4 fermenters of any give size. In this scenario, two 5-barrel brites and one 10-barrel brite would be sufficient. At a 16-day turn on each fermenter (a little under two turns per month) that gives you an initial maximum brewing capacity of approximately 700 barrels per year, depending on fermentation efficiency, work weeks, holidays, and sales. Your final volume for the year will almost certainly be less than that.

  Finally, the last piece to consider is cooperage. Kegs are one of the highest cost, highest value assets in your operation and are often overlooked. To begin with, if you are only providing beer to your own taproom and you are not using serving tanks, you need enough cooperage to hold all your volume in inventory… and then some. For every individual product you offer you will need empty kegs waiting to be filled, kegs filled with beer waiting to go on tap or be sold, kegs on tap, and empty/dirty kegs waiting to be cleaned. If you are in distribution you will need to add two more scenarios: kegs at the customer waiting to go on tap and empty kegs at the customer waiting to be picked up. You will also lose a small percentage of your kegs each year in the marketplace as they get lost or stolen.

  For each 5-barrel batch of beer, you need the equivalent volume of 20 – 30 barrels in cooperage. Half-barrel kegs (120 pints) are much more efficient but take up much more space and are clumsy to work with. They also typically sell at a lower price per pint than alternatives. Sixth-barrel kegs (40 pints), or sixtels, are much easier to work with and allow for more variety but are much less efficient on the production floor. You will probably maintain an inventory of both halves and sixtels at roughly an equivalent internal volume. For each half barrel keg, keep three sixth barrel kegs. For a 5-barrel startup brewery offering four distinct brands out of the gate, with limited distribution, starting with 100 half-barrel kegs and 300 sixth-barrel kegs would not be out of line.

  Of course, if there is a plan to do packaging in other formats (bottles or cans) that reduces the need for cooperage, so plan accordingly.  It is better to have more kegs than you need and have the luxury of cleaning them when you can – remember, each keg takes three minutes minimum on the keg washer – than to have too few kegs and not be able to package beer or brew because you are short on cooperage and have nowhere to put ready product.

  There is no perfect answer to what equipment you will need in a startup scenario – every brewery, location, taproom, and distribution model will create diverse needs, but a good examination of these points can start you off on the right foot. Breweries are expensive, particularly at initial stages, but it is worth the money to have the right assets in place rather than to spend the life of your business trying to catch up.