Category: Brewery

Canning and Bottling Beer:

Cyndi

Choosing a Filling Machine for Your Brewery

filling machine in a facility

By: Alyssa L. Ochs

Largely due to pandemic-related brewery closures and limits for on-site consumption, the popularity of to-go packaging is at an all-time high. Cans offer a portable and recyclable way to consume craft beer when draft pours aren’t an option. Meanwhile, bottles remain a classic choice preferred by some brewers and consumers because of their ability to protect against light for optimal flavor and freshness. Also, there’s just something refreshingly classic about sipping a cold brew from a frosty bottle.

  Since to-go package sales aren’t expected to decline anytime soon, it’s a good idea to keep up with the latest filling machine technology in case a new installation or upgrade is necessary.

Types of Bottle Filling Machines

  There are several types of bottling machines used by breweries today with both manual and automatic functions. Modern machines serve multiple purposes within the brewery to save space and offer both continuity and efficiency. For example, specialized machines handle rinsing, filling and capping all within one system.

  Tandem fillers usually fill one to eight bottles of beer at a time and are small machines that use long filling tubes. Rotary fillers are high-speed machines that utilize a rotary system and offer greater capacity. Semi-automatic rinser/filler/corker/cager machines are often used for bottle-conditioned beers. Also, isobaric manual beer bottling machines come in different configurations for rinsing bottles and sorting them.

Popular Can Filling Machines

  From Pneumatic Scale Angelus, a Barry-Wehmiller Packaging Company, Mike Davis, Global Product Line Leader of can filling, and Mark Pirog, Director of Seamer Sales, told Beverage Master Magazine about several can filling machines commonly used by craft breweries. Pneumatic Scale Angelus is one of nine operating companies within the Barry-Wehmiller family, a form/fill/seal technologies and services leader that has served various industries for over 100 years.

  The CB50F is an open-air – known as atmospheric – integrated filler/seamer for production speeds up to 50 cans per minute. 

  Davis and Pirog said that this canning line is ideal for craft brewers entering into packaging cans or who have been mobile canning and are ready to invest in a canning line that offers the autonomy of canning on its own schedule. They also said additional upstream and downstream equipment, such as an accumulating table or palletizer, can be purchased and phased in later as desired

  The company’s CB100F model (shown above) is an open-air integrated filler/seamer canning line for production speeds up to 100 CPM. 

  “This machine is designed for the craft brewer looking to expand production from the entry-level, or who has been mobile canning on a regular basis and wants to see a greater ROI on canning expense,” said Davis and Pirog. “This canning line is best coupled with automated upstream and downstream equipment to accommodate the faster speeds. This line comes standard with a buffer tank to help manage product feed from bright tanks.”

  The newest member of PSA’s portfolio, the CB50C (shown above), is a counter-pressure integrated filler/seamer canning line for production speeds up to 50 CPM. With this model, true counter-pressure filling allows craft beverage producers to run a variety of products ranging from still to highly-carbonated and even including nitrogenated beverages in widget cans.

  “Flexibility of the fill sequence also provides a means to control or mitigate dissolved oxygen for oxidation-sensitive products, like beer,” said Davis and Pirog. “An optional product supply pump is available for maintaining product pressure at filler without compromising limits at the bright tank.”

  All three PSA canning lines incorporate sanitary design standards throughout the product path. Each delivers standard features that include CO2 flood purging before filling, a gassing tunnel, and undercover gassing to reduce oxygen pick up. Davis and Pirog said that flow meters are standard and will withstand clean-in-place temperatures up to 180 degrees Fahrenheit. All the machines will accommodate the various standard can sizes, including sleek and slim varieties.

How Bottle Filling Works and Comparing Machines

  The process of filling beer bottles generally works by moving the bottles along a conveyor belt. Part of the process involves keeping the vessel safe with a separating device and situating it on a lifting platform underneath the filling component.

  A brewery employee begins the process by removing the bottles from the pallet, rinsing them and controlling the amount of oxygen that gets into them before filling. The bottles are then automatically filled by the machine. Once filled, they run through a capping machine to seal them. The final step involves applying labels manually or through a labeler before transferring bottles to cartons or crates for sale in the brewery or for transport to a distributor.

  Small to mid-size breweries generally look for bottle filling machines that fill between 700 and 4,000 bottles per hour. For breweries that are mid-size to large, choosing a machine with a 4,000 to 12,000 bottle per hour capacity is recommended.

  There are some important differences between bottle filling machines. Some bottling systems come with “dummy bottles” and spray balls for cleaning. Some machines fill kegs in addition to bottles. Others have canning add-on kits available if the brewery currently serves beer in both bottles and cans or plans to in the future.

  Brewers should choose filling machines made with high-grade stainless steel and that perhaps come on lockable wheels for easy maneuverability if necessary. Other features to look for when comparing models include ease of cleaning, a user-friendly control panel, filling cycle speed, remote operation capabilities and easy changeover from bottles to cans.

Modern Can Filling Technologies and Differences

  Davis and Pirog said there are two basic filling technologies within the craft beverage canning market – open-air and counter pressure – and there are variances among suppliers for each technology. 

  Open-air filling is the primary technology for linear fillers in which product carbonation is not that high, typically less than 2.7 vols. The main differences between open-air fillers lie in how the particular equipment purges the can of oxygen, controls foaming and measures the amount of product dispensed.

  “In beer filling, oxygen content must be minimized, so full and complete purging prior to filling is key,” said Davis and Pirog. “Product foaming or breakout can lead to inaccurate fill volumes and carbonation loss. Open-air fillers usually incorporate some kind of restriction to create a gentle fill but are susceptible to product temperature.” 

  If the product is not cold enough or maintained, breakout can easily occur with open-air filling. To measure the fill, brewers can use level sensing, time-pressure or a flow meter.

  Counter-pressure filling is typically used on rotary-style fillers, but some linear fillers also use this technology. Davis and Pirog said the main difference between these machines’ suppliers is how the product feeds into the pressurized can and the method for measuring the amount dispensed. For example, some counter-pressure fillers use the same product feed process used in open-air filling: either using the bright tank pressure or a buffer tank to push the product up through the filler and into the container. 

  “Counter-pressure filling is typically used for products that are highly carbonated, so gentle filling is just as important as pressurizing the container,” said Davis and Pirog. “PSA incorporates true counter-pressure filling like that used on the highest production beverage packaging lines. The can is pressurized to the equivalent pressure of the filler bowl, and the product is allowed to fill the can by gravity. By doing so, carbonation levels are controlled, and temperature is less of a factor. Similar to open-air filling, fill measurement can be by level, time-pressure or flow meter, and PSA has standardized on flow meter filling.”

  Brewers looking for a new or upgraded canning line should consider how containers will be sealed. Quality seams are critical for package integrity and product freshness in canning, and there are many seaming machines on the market. Bending and folding metal to create a seal may sound simple enough, but repeatedly creating a high-quality hermetic seal is more complex than it seems.

  “Some suppliers use pneumatics or servo actuators to perform the seaming operations,” said Davis and Pirog. “At PSA, our machines are designed for the slower-speed needs of the craft market and use the same mechanical cam technology used on our high-speed seaming machines. In other words, the same technology that the largest beverage manufacturers use to seam thousands of cans per minute has been tailored for the production needs of the craft market.”

Expert Advice About Bottle and Can Filling Machines

  Bottle filling machines are a vital part of the packaging process for many breweries today, so it’s essential to look at the big picture of beer filling, conveying, bottling, cleaning and labeling. When choosing a new machine, consider long tube fillers over short tubes for their affordability and purging oxygen.

  Sanitation is always a concern for keeping bottles clean and bacteria-free. Brewers must understand what output speed means and how that correlates to the brewery’s needs, so they don’t invest in a higher output machine than necessary. Meanwhile, used equipment may be available and provide significant cost savings, as long as it has been well-maintained and is in good working condition.

  Whether bottles or cans, Davis and Pirog recommend looking for quality and flexibility. A filling line is a major investment and will require many years of reliable service. They suggest considering the beverages being packaged today and what may be coming in the future to make sure the filling line can accommodate a growing portfolio. 

  “And finally, breweries should invest in quality equipment that not only fills accurately and seams precisely but also allows them to utilize every can and lid, so they don’t waste materials,” said Davis and Pirog. “If the pandemic has offered any lessons, it’s that having the means to get your product into the hands of your customers is critical and investing in a canning line is a great way to do that!”

Ontario’s Strict Liquor Laws

Cyndi
bottled beers in a grocery stall

By: Alyssa Andres

In Canada, each province is governed under its own liquor laws. In the province of Ontario, there is a multitude of guidelines, fees and licenses required to successfully become a producer or supplier, many of which are not found in other provinces across the country. The restrictions, guidelines, and costs associated with the production, importation and sale of alcohol in the province impact the market for producers and consumers alike. By enforcing such strict laws, the Ontario government limits the province’s ability to showcase its top quality products and dissuades international suppliers and manufacturers from importing their goods from other regions. 

  Manufacturers in Ontario must prepare for substantial start-up costs and to spend a lot of time in the initial phases of business planning before starting production. Separate licenses are required before producing, selling and storing alcoholic beverages, and packaging guidelines, as well as chemical analysis of each product, are required once these licenses are obtained. For suppliers, it means facing mark-ups of well over 100% and tight restrictions on the import, distribution and sale of products. For consumers, it means selections tend to be limited, prices are higher than average and there are very few places to obtain alcoholic beverages.

  The body controlling the alcohol, tobacco and cannabis industries is the Alcohol and Gaming Commission of Ontario. This body is responsible for forming the Liquor Control Act and administering liquor licenses beyond the federal license required to produce alcohol in Canada. The AGCO also oversees most aspects of alcohol sales and service in Ontario. This means they not only control the manufacturing of alcohol but also the distribution and sale of any kind, including bars, restaurants and private events.

  The initial step in becoming a brewer, distiller or winemaker in Ontario is to obtain a federal license to manufacture alcohol in Canada. According to the Government of Canada website, one must prove that they are of legal age and have sufficient resources to conduct a business before applying for the license, which does not carry with it any fees on its own. This license allows producers to manufacture alcohol in bulk, but producers must pay an excise duty once the alcohol is packaged to store it on-site. In Canada, as of April 2020, spirits containing more than 7% alcohol by volume are subject to an excise duty of $12.61 per litre of absolute ethyl alcohol. The only way around paying an excise duty at the time of packaging is to apply for an excise warehouse license that allows manufacturers to store non-duty paid packaged spirits for an extended period.

  Once a producer is licensed by the federal government to produce bulk alcohol, the AGCO requires a separate manufacturer’s license to sell the wine, beer or spirit within the province. The AGCO has strict guidelines surrounding where alcohol may be sold in the province. The Liquor Control Board of Ontario is the main outlet for alcohol sales in Ontario. There are 666 LCBO stores across Ontario responsible for providing the Ontario public with spirits, wine and beer in quantities of less than 12 units per case. A separate chain known as The Beer Store, also mandated by the AGCO, provides Ontarians with cases of beer. If a producer or supplier does not have this license, they will not be allowed to sell their product in the province.

   In 2017, Ontario started allowing a limited number of grocery stores with proper licensing to carry beer and wine, but, according to the AGCO website, these premises must also sell a variety of food products that must occupy at least 10,000 square feet of the retail space. Therefore, only large chain grocery stores are eligible for these permits, and there are only about 450 grocery stores that carry alcohol in the province.

  For breweries and distilleries to operate retail shops out of their own facilities, another license must be issued, even once producers have successfully obtained a manufacturer’s license. Yet another license is required to operate a “Tied House” or restaurant facility out of a brewery or distillery. Each of these licenses carries with it separate fees and must be renewed every two years. Since many Ontario breweries and distilleries are in remote towns across the province, the best way to get their product into the hands of the general public is to apply to have them on the shelves of the LCBO.

  According to the LCBO, they review over 50,000 submissions annually from producers and suppliers trying to sell their products through this system. Even products already approved must reapply for the license every two years. Per the AGCO licensing guide, to be eligible to apply for a Liquor Sales License, producers must submit their federal license to manufacture, a registered business name, a summary of their business plan, including detailed floor plans of their facilities, a marketing plan and images of the bottle/packaging of the product. The roughly nine-week process of approving product submission ends with an LCBO chemical analysis. This LCBO analysis is done on every active product on the shelves once a year, at the suppliers’ expense, to ensure quality. Once approved, the product then has to go through label and packaging reviews.

  The LCBO also has extremely specific requirements surrounding the labeling of not only the packaging of alcoholic beverages but also on shipping containers and cases. While many provinces follow general Canadian guidelines for packaging requirements, Ontario has developed its own set of rules. A 64-page document entitled LCBO Product Packaging Standards dictates not only what information is present on the bottle but also gives incredibly detailed guidelines on everything from the size and placement of this information to the “print contrast standard.” If a product doesn’t adhere to these standards, a producer must go back and have the label or shipping package redesigned.

  Once the product makes it to Ontario liquor store shelves, the LCBO must adhere to the LCA standards for minimum pricing. This means, according to the LCBO Pricing Standards Guide, updated in April 2020, a 750mL bottle of Canadian whisky sold by a supplier to the LCBO for $6.16 and charged a federal excise duty of $3.71 ($12.61/LAA) would end up on retail shelves for $27.50 after being marked up a standard rate of 139.7%. Of that total revenue, $16.17 goes to the Ontario government and $4.92 to the Canadian federal government, with only $6.21 making it to the supplier after a $0.20 container deposit. Manufacturers must adhere to this uniform pricing even when selling from their own bottle shops, with most of the revenue going to government bodies.

  These taxes and guidelines mean the selection and quality of products on the shelves at the LCBO are not always impressive. Many international producers will not bother applying at all. Many of the province’s most talented producers are too small and cannot afford to. As a result, the representation of Ontario beer, wine and spirits in the LCBO doesn’t always showcase the incredible quality of the local industry.

  However, the Ontario government has made some changes to its liquor laws this past year to aid businesses in the food and beverage industry that have struggled with closures and other factors related to the COVID-19 pandemic. The government started allowing restaurants and bars to sell sealed alcoholic beverages for takeaway. They also amended a law prohibiting alcohol delivery to private residences, allowing third-party services such as Uber Eats to deliver liquor from restaurants without a special license. These laws, originally considered temporary, have become a permanent amendment to the Liquor Licence Act as they encourage consumers to support local sources when purchasing alcohol for their homes.

  For a brief moment, on December 4, 2020, the LCBO attempted to offer this same delivery service from its stores by pairing with SkipTheDishes but was met with serious backlash from local restaurants who are now relying on alcohol takeout and delivery to pay their bills. As a result, on December 6, 2020, the LCBO paused this initiative.

  As the COVID-19 pandemic rages on and the entire province of Ontario remains in lockdown until at least January 23, 2021, the Government of Ontario will have to continue making adjustments to its rules and restrictions to allow businesses in the province to continue to operate. The hospitality industry has been one of the hardest hit by pandemic restrictions, with most indoor dining in the province’s major cities suspended for most of the year. Those allowed to operate have been limited to 50% capacity and forced to close by 9:00 p.m. each night. This means the licensee sale of alcohol dramatically decreased in 2020. There are many businesses in Ontario that are depending on government subsidizing to stay in operation.

  As the AGCO and the federal government continue to collect from the soaring sale of alcohol in Ontario, while manufacturers, suppliers and licensees in the liquor industry continue to suffer, the province’s small businesses rely on the provincial government’s aid. It is the hope that as the world evolves with the COVID-19 pandemic, so too will the laws surrounding liquor in the province of Ontario.

Beer Wholesaler Checklist: How to Increase Business Value

Cyndi

By: Kary Shumway, Beer Business Finance

The Holiday Season is a perfect time to measure and improve business value. Value equates to strength and strength provides you with more business options.

These options may include selling your business at a higher price or being in a stronger position to buy another wholesaler business.

When you focus on creating value, there is an immediate improvement in business results: Profits, cash flows and business systems benefit from the attention to value creation.

Today’s gift is the Beer Wholesaler Value Creation Checklist. Use this one pager to bring focus to growing the value of your beer business today. https://beerbusinessfinance.com/wp-content/uploads/2020/12/BBF-Checklist-How-to-increase-business-Value.pdf

Cash flow and profit are for today, but business value is forever. Take five minutes and learn how to protect forever.

Yours in Business Value,

Kary

https://beerbusinessfinance.com/wp-content/uploads/2020/12/BBF-Checklist-How-to-increase-business-Value.pdf

Brewery Open Book Management

Cyndi
2 men analyzing data

By: Kary Shumway

In normal times, it’s a challenge to manage brewery operations, and stay on top of the finances. There’s a lot to juggle, and never enough time to get it all done. In these abnormal times, these tasks become even more difficult.

  However, one way to manage your brewery business differently, and more effectively, is with open book management. Open book management (OBM) is a system in which employees are provided with financial information so that they can make better business decisions.

  The idea is that employees are more motivated, engaged, and productive when they are treated as business partners (who commonly have access to financial data) instead of employees. In these uncertain times, more information can provide employees with more certainty to make better decisions.

  Open Book Management has four basic elements:

•    Train employees in financial literacy so they can read and understand financial statements.

•    Empower employees to use financial information when making business decisions.

•    Trust employees as business partners with proprietary company information

•    Reward employees fairly for the brewery’s success

Train employees in Financial Literacy

  Financial literacy is the ability to read and understand the numbers of your brewery business so that you can improve financial results. Improving financial results may include growing sales, strengthening gross margins, or increasing cash flow. In today’s uncertain times, financial literacy is more important than ever.

  The numbers of your brewery business are reported on the financial statements – the income statement, balance sheet and statement of cash flows. Each of these reports provides vital financial information to understand what’s going on in your business

  The financial statements are the scoreboard for your brewery and the numbers show whether you are winning or losing. The financials show you where you are in relation to your goals and how much harder you must push to hit the targets.

Open book management requires that you train employees in financial literacy so that they can know the score, and help the brewery win the financial game.

Empower Employees to Make Decisions

  In most organizations there is a decision-making hierarchy. Owners or managers make the decisions, and employees carry out the directives. With open book management, everyone is responsible for making decisions and has the authority to do so.

  If a problem needs to be fixed, employees are empowered to fix it. If an opportunity needs to be seized upon, employees are obliged to act. There is no waiting around for a manager to make these decisions. The move lies squarely on the shoulders of employees.

  With open book management, employees use their understanding of the numbers – financial literacy – to inform their decisions. For example, suppose a brewery uses a mobile canning company to package beer. The packaging manager understands the costs associated with this service and can make an informed decision about whether the purchase of canning line would benefit the company financially. The packaging manager understands how to build a return on investment calculation and is empowered to make a purchase recommendation based on the numbers.

Trust Employees with Proprietary Financial Information

  Open book management centers around trust. Do you trust your employees with sensitive financial information? What if confidential information is shared with competitors? What if it’s leaked out on social media? Sharing information requires trust.

  OBM requires that we trust employees to handle sensitive information with professionalism and confidentiality. The best way to earn the trust of employees is to be trustworthy yourself. Be transparent, share the information that will help them do their job better, or have a better understanding of the business. When you call upon the highest level of thinking from your employees, you get the highest level of results.

Reward Employees for Brewery Success

  In an open book management system, employees are asked to learn new things in addition to their core job. Brewers are asked to understand the costs that go into making the beer. Brewery salespeople are asked to understand product margins for each brand in the portfolio. Taproom staff are asked to learn the average order per customer, for example. Everyone in the organization needs to learn something new to make the open book management system work properly.

  The goal of open book management is to create a culture of business owners. OBM teaches employees to think of themselves as businesspeople instead of workers. To make this real, businesspeople need a stake in the outcome – a reward for brewery success. As such, part of what they earn should be tied to company financial performance.

  A stake in the outcome gives employees a vested interest in improving financial results. The brewer learns about the costs that go into making the beer so that she can find ways to be more efficient. The salesperson learns about product margins so that he understands the importance of proper pricing. The taproom server learns about the average order per customer to find ways to increase customer sales.

  Learning about the financial aspects of the business that are within the employee’s area of control moves the brewery towards the goal of improving overall financial results. And towards the reward of having employee businesspeople share in the success.

Wrap Up and Action Items

  Open book management is a system where financial information is shared with employees so that they can make better decisions. Better decisions lead to better financial outcomes, and better financial outcomes lead to a stronger brewery business for everyone.

  OBM requires that you train, empower, trust and reward employees. Train employees in financial literacy so they understand the finances of the business. Empower employees to make decisions and encourage them to do so. Trust employees with sensitive information and reward them when brewery financial success is achieved.

  In these uncertain times, open book management provides a way to manage your business more effectively and to reward your employees for a job well done.

  I’d like to offer your readers a $50 discount off of the Craft Brewery Financial Training annual subscription. Visit http://www.craftbreweryfinance.com – Use the discount code beveragemaster at checkout to claim savings.

Raising Capital for Craft Spirits Through Crowdfunding

Cyndi

By: Becky Garrison

Since its founding in 2013, Seattle-based Copperworks Distilling Company developed an award-winning portfolio of spirits with accolades such as the 2018 Best Distillery of the Year award from the American Distillery Institute. Yet, according to Jason Parker, Co-Founder and Presi-dent, they found themselves at a crossroads in growing their distillery last year. Even though they had more than 260 barrels of whiskey aging in inventory, the current demand for their American Single Malt whiskey exceeded their supply of mature whiskey.

  “The only way to win sales in the whiskey market is to have whiskey to sell,” Parker told Beverage Master Magazine. “If we are only growing through cash flow generated by vodka, gin and a little bit of whiskey sales, we won’t have the whiskey to compete in the market against those businesses who received capital investments to produce whiskey. In essence, we must produce whiskey faster than our current cash flow will allow.” 

  Rather than resort to traditional ways of generating capital, they wanted to explore a way to ex-pand their business that would get their friends, family, customers and other supporters involved as brand ambassadors. “We wanted to give them an opportunity to own a little piece of the work and be with us as we grow,” said Parker. 

Choosing Equity Crowdfunding

  Copperworks decided to raise money via equity crowdfunding through the WeFunder website. In Copperworks’ estimation, this approach enables individuals to become part-owners of a privately held company by trading capital for equity shares. This method of generating capital became available in 2016 with the passage of a new law called “Regulation Crowdfunding.” This shift made it legal for anyone to invest small amounts of money in startups.

  Copperworks chose equity crowdfunding over more established crowdfunding platforms like Kickstarter, Indigogo or GoFundMe because, with equity crowdfunding, a company issues equi-ty, such as shares of company stock, to participating investors. A company like Copperworks may also choose to offer perks, but the major incentive is the opportunity to become shareholders in the company.

  In comparison, traditional crowdfunding is more rewardsbased, whereby those who contribute to the campaign receive a perk, such as a discount or an advance copy of the product, but they have no equity in the company. Furthermore, a traditional crowdfunding campaign often offers their products at a discount to generate interest. Should the campaign take off, companies can find themselves unable to meet market demand at this low price point.

  According to Parker, a key advantage of equity crowdfunding is the company’s opportunity to utilize its investors as brand ambassadors. While this component of Copperworks’ strategy has been put on hold due to COVID-19, they are currently in the process of building a brand ambas-sador kit for their investors. In this kit, investors will be given the details of how to approach a restaurant, bar, grocery store or liquor store on behalf of Copperworks.

Challenges of Using Equity Crowdfunding

  Parker acknowledges the need for a distillery to ascertain if equity crowdfunding is the right ap-proach. For example, this approach to raising funds may not work for a business that has only been around for a year or less and has yet to build up a loyal following. “Equity fundraising is a good thing when you’re mature enough for the company to attract the appropriate investors for the valuation,” he said.

  From a company’s point of view, equity crowdfunding requires more upfront costs and financial discipline. The company’s records need to be reviewed professionally, an expensive process that took Copperworks three months to complete. In addition, WeFunder takes 7% of the funds raised, unlike a bank loan where one receives the entire amount upfront and then pays interest over time. Depending on the terms of a loan, a company may pay more in interest through a traditional loan. However, for those companies needing the full amount upfront, a bank loan may be their best option.

  Also, with equity crowdfunding, Copperworks had to be totally transparent with their financials, a process that included having this information readily available for public viewing. For Parker, this transparency fits in with their business model. “We believe transparency is one of the things missing in businesses today, so we want to model that behavior.” In the issue of transparency, they chose to share with their investors why they needed to raise money and how they intended to use these funds.

Promoting and Implementing the Equity Fundraising Campaign

  Copperworks promoted their campaign through their mailing list of 12,000 individuals. In addi-tion, they reached out to the 3,600 folks who liked their Facebook page because they had a high rate of customer engagement on this platform. They were also featured for five weeks in the American Distilling Institute newsletter. Their campaign, which ran from the end of February to April 2020, netted a total of 409 investors and $776,480 in funds.

  Parker admits to the challenges of raising funds right as COVID-19 began impacting the econo-my starting in mid-February. “It’s not very easy to ask people to spend money on a company when they may not have a job, their life savings may be losing 30% of its value, and they don’t know who around them is even going to be alive in a few months.”

  However, he said that since Copperworks had been around for a long time, many people emerged who really liked the company and their products and were looking to support something they cared about. 

  Regardless of the amount of their investment, each investor receives an annual report along with an invitation to every quarterly meeting. For those who invested $1,000, they get 10% off all Copperworks goods for life. Other perks were offered to those investing at higher increments, such as an offer to pick a single cask whiskey, a free event rental or an invitation to be on the board of directors.

  As per the SEC regulations, Copperworks disclosed to their investors the risks associated with capital works. While some of the risks noted are associated with investing in any company, others are specific to the distilled spirits market or Copperworks in particular. For example, the cur-rent distilled spirits market growth could slow or stop in the future. Along those lines, due to the threetier distribution system in the alcohol industry mandated by U.S. law, Copperworks is reli-ant on distribution companies. The distribution system has experienced consolidation in recent years, and should this consolidation continue, distilleries may face difficulty in expanding the distribution of their products.

Outcome of Equity Fundraising Campaign

  Copperworks successfully raised enough money to continue production during the COVID-19 shutdown and produce whiskey at their all-time maximum rate. All employees kept full-time hours, even though the tasting room was (and remains) closed. Therefore, the distillery could de-vote some of its resources to producing hand sanitizer, a product badly needed at the start of the pandemic. 

  Even better than simply raising money, which a bank loan could have accomplished, Copper-works was able to fully engage the support of their loyal fans. Customer engagement through social media, email and quarterly calls increased the opportunity for Copperworks to share their story and their customers to become brand ambassadors. New customer acquisition, which is much more difficult while the Copperworks tasting room is closed, increased through word-of-mouth, and online sales increased due to these outreach efforts.

  As Copperworks looks to expand their production area and event space, they have solicited their new investors’ network to help them find even more opportunities to grow their business. Copperworks is truly building an army of brand ambassadors and getting new talent and ideas through the use of regulation crowdfunding.

Raised Grain Brewery’s Infamous Beer Names and New Taproom

Cyndi
snack bar with beer cans

The Boelter Wire is an episodic podcast that focuses on conversations with industry experts and established partners, and is designed to help listeners evolve their business, stay competitive and pursue their passions. Recorded earlier in 2020, Lance Taylor, field sales manager with Boelter’s Beverage Division, speaks with Nick Reistad, co-owner of Raised Grain Brewing Company in Waukesha, Wisconsin to discuss some of the brewery’s more infamous beer naming conventions and their new taproom.

An Origin Story

  Lance Taylor (LT): This is a great opportunity to dive into the brewing industry, which is one of the major industries that we serve, and what better brewery to work with than the one just down the road from us. So, thank you. How did you guys start? If you don’t mind sharing the origin story?

  Nick Reistad (NR): Raised Grain started probably in the back of my mind when I was a professional cyclist in a past life. I got to travel around the world racing bicycles, doing races over in Europe. I was on the national team for three years. That was based out of a tiny house in a small village in Belgium, and the only thing to do at the end of the day was to head down to the square and have a nice Belgium beer.

  That was in 2005 or 2006. Then I raced stateside for a year as well. And that was right when the craft scene was just starting to take off. I started to notice that there were other really delicious, very different beers that were all over the U.S. I would travel out to California or somewhere in the Northeast and try all of these different beers from breweries that, in some cases, had been around for a long time and other cases were just starting up and getting things figured out.

  Then, in 2009, I ended up having a career change when I was 27. I got into advertising and I guess the excitement that I had become accustomed to wasn’t really there, even though I really like advertising and marketing. So, I started thinking, what am I going to do with my life, and wrote a business plan for a brewery because it seemed like it would be fun to do and it entertained me. And what I really liked about beer is that it’s something that brings people together. I started working on a business plan and connected with a neighbor of mine from when I was growing up and he knew two guys that are still doctors to this day, but they’re also brewers. So, he brought us together on September 19th, 2014.

  (LT):  That’s definitely a unique story. Do any breweries in particular inspire you?

  (NR):  It’s hard to say. I think they each have their own little impact. I mean, you’re drinking west coast IPAs when you’re out in California. And I spent the better portion of the beginning of the year out in California. That’s where the races were. That’s where the scene was.

  (LT):  And that lends itself to a lot of the styles that you guys brew now. I’m curious, when you first sat down with the doctors and you guys were having some of those beers, are any of those the flagships of today still, like the Naked Threesome or Paradocs Red?

  (NR):  Naked Threesome didn’t come around until later and I don’t think that style had even been invented yet in 2014, the hazy IPA, maybe it had. But, Paradocs Red was one that we were drinking that night and they named it after themselves, a pair of doctors. Scott and Jimmy started brewing, I think it was about five years before I came along. They started brewing together and Paradocs was the, I think it was the third beer that they brewed together, and it was the first all-grain recipe that they brewed on the system that was in Scott’s basement.

   And then fast forward a couple of years, that won a gold medal at the Great American Beer Festival. And we’ve just been in growth mode ever since we opened our doors in 2015. I think it was 2016 we won that, and we were building out a food truck. I was heading off to an Octoberfest then. So, we had about five minutes to high five each other and celebrate and then it was back to work.

  (LT):  People take pride in their city’s brewery quite a bit, especially when people come into town.

  (NR): Yeah, when we first opened up, just this tiny little brewery out in the burbs outside of Milwaukee, we had so many people come in and say, thank you for choosing Waukesha. We want to have something like this out here and your beer is awesome and you guys are nice people, so thank you so much.

The Intricacies of Naming Your Beer

  (LT):  When I go to a bar, it’s fun ordering a Naked Threesome and it always raises an eyebrow, that’s for sure. I’m talking about some of the naming conventions, how did you come up with some of them? What’s that like with your team? When somebody comes up with it, do you let the brewer come up with the name? Is it more on your end with the marketing side?

  (NR): Throwing a lot out there that have either been taken already, which is most likely the case, and then something that conveys the experience that you want the customer to have when they’re drinking that beer.

  Naked Threesome is a little bit of a unique story because that one came out of a series we were doing when we wanted to play around with a single hops. We started a series off that we brewed three single hop beers and then we wanted to combine those three hops at the end into the culmination of the series. We started calling it the Naked Hop series, a really clean malt beer, showcasing the hops that we were using. 

  And then, we’re kind of a ready, fire, aim type group, or at least we were in the beginning, when we rolled out the series. We didn’t really think what the final beer was going to be. I wasn’t really coming up with any good ideas. And our bar manager at the time came up with a name and said, what if we called it the Naked Threesome?

  We both looked at each other and said, well, we’ll need to check with our wives on that one. And they laughed and said, sure, do whatever you want to.

We ran that series for a couple of years and then we brewed the series or the beer that it is now. It was a huge hit. People loved it. They couldn’t get enough of it and we couldn’t brew it fast enough. So, we ended up killing the series that it evolved out of and just kept the Naked Threesome as it is today.

A Social Experience

  (LT):  What are some of the ways that you bring people into the tap room? What kind of activities or events do you host?

  (NR):  We designed the space so that we can host any number of events, whether it’s just a Friday night and we’re busy and we want to make a comfortable environment for the people. We specifically sized our beer hall so you can set up bags, sets of cornhole, whatever you want to call it, so that you have enough length to have an official court. When we got the plans back from our architect, we had her elongate the room a little bit so we could fit in bags.

  It’s everything from corporate events to birthday parties, all sorts of events that are coming in to use the space we have. But, then we wanted to create different experiences within the tap room. So, if you come in and you want more of a traditional dining opportunity, we have that. If you want super casual at the bar, we’ve got that. And then we’re sitting in the brewer’s lounge right now.

  (LT):  It’s like a speakeasy.

  (NR):  It’s very casual. You can sit back and have some private conversations with your friends or coworkers and just feel really comfortable. So, whatever you want. You could come in on different nights and have different experiences all within the same tap room. And that was something that we wanted to create because it isn’t a relatively new building. And when we first walked in, it was just wide open. So, we didn’t want to have people walk into a warehouse and feel like there’s just gusting wind. That was something we wanted to avoid. And I think we’ve done a pretty good job of breaking up the space and making a cool spot for people to come and hang out.

Premiumization

  (LT):  One thing that Boelter talks about is the concept of premiumization. What steps do you take to make sure your customers have a premium experience and is that something that crosses your mind?

  (NR):  I would say it’s the only thing that crosses our mind. We have expensive-to-produce beers, so you have to charge what you need to charge to make it work on the backend, on the production side. But, then outside of the beer, you’ve got to have a premium experience when you come in.

  We have an awesome staff behind the bar. A lot of our bartenders are just really well educated on beer and they work here because they want to work here and they have fun working here. So, that really shines through when a customer walks in, they have an awesome experience because the person on the other side of the bar wants to tell them about the beer that they’re drinking and wants to make sure that they’re just having an awesome time.

  I think that really helps beyond the physical side of things because we just have awesome people shining through and every time you come in you’re going to have that interaction that elevates what you’re doing, and it provides a fun time.

  (LT):  Just knowing from my experience and being able to label some of the glassware that we’ve been able to do for you guys, obviously you have very specific glassware chosen, which on my end, being a glass geek, it makes a huge difference. If you’re drinking out of a stemmed glass and it’s a higher ABV, then you’re sitting in this brewers’ lounge, you can swirl it around and really enjoy it. I would say that absolutely adds to it as well.

  (NR):  We’re just excited to be in craft beer when it’s growing and it’s fun and exciting for not only us but for our customers as well. It’s a cool time and it’s been a cool project to work on and we’re looking forward to five more years, and five beyond that.

  You can catch up on all of the episodes and be notified when new podcasts are available by subscribing to The Boelter Wire at https://podcasts.apple.com/us/podcast/the-boelter-wire/, Apple Podcast, Google Podcast, Spotify and Amazon Music.

Continuously Improving Your Incentive Program

Cyndi
beer leaning to a bar graph

By: Nichole Gunn, Vice President of Marketing & Creative Services, Incentive Solutions

The first years after launching an incentive program are an exciting time for craft beer producers: supply chain trading partners, drawn by the excitement of new promotions and an improved channel partner experience, are more responsive, more motivated and more likely to recommend the brand’s products to restaurants and retailers. During this time, craft beer producers often experience a period of rapid sales growth or improvement in other KPIs the program was designed to target, such as improved partner data profiles or increased referral business. The incentive program’s ROI grows exponentially.

  However, often after 12-30 months, growth begins to stagnate and the ROI curve starts to flatten. If left unaddressed once an incentive program’s novelty starts wearing off and supply chain trading partners become habituated to the program’s value proposition, the incentive program’s ROI may start to decline, leaving craft beer producers scrambling to find ways to replicate the program’s success.

  The good news is that by planning ahead, craft beer producers can anticipate this drop off in interest level and continuously improve their incentive program in order to sustain a competitive advantage in their channel.

Keeping Incentive Programs Fresh

(and Profitable!)

  In order to stay relevant, a channel incentive program has to be able to evolve with the interests of its participants, scale its value proposition over time and respond rapidly to the tactics of the competition. Below are several factors that craft beer producers can focus on in order to continue to drive ROI once program growth begins to stagnate:

•  Evolving incentive program technology.

•  Incorporating elements of gamification.

•  Adding new, richer reward-earning opportunities.

•  Personalizing brand interactions to build loyalty.

•  Re-launching the program with updated features and branding.

  Ideally¬, these are all elements that craft beer producers will consider from the inception of the program, with plans for program expansion at certain intervals. However, these factors can also be incorporated to bring new life to existing programs.

Evolving Incentive Program Technology

  Today, incentive programs are a technology platform, and craft beer producers should be as mindful in selecting incentive program technology as they are in selecting any B2B software platform. From an administrative standpoint, this means choosing an incentive platform that integrates with existing CRMs and other business software and provides streamlined admin tools and generates detailed reports on engagement and ROI.

  However, perhaps more importantly, craft beer producers should focus on selecting incentive software that is fully supported and will be continuously updated to improve the user experience for their supply chain trading partners. More and more, B2B customers expect a seamless B2C-style user experience. Partners will be less likely to engage with a rewards program that uses stale, outdated software, no matter how exciting the reward offering.

  Additionally, agility is key. Craft beer producers should look for incentive software that allows them to quickly go to market, adapt to the tactics of the competition and launch new promotions. These factors will offer an edge when it comes to maintaining engagement throughout the lifetime of their program.

Incorporating Elements of Gamification

  Gamification is the use of game-like elements – such as points-scoring, interactive leaderboards and other competitive components – to increase engagement with a web-based application, such as an incentive program. Gamification is a powerful tool that supply chain trading partners already seek out in their day-to-day lives, from collecting likes on their Facebook page to scoring achievements on Peloton bikes.

  When interest in the program begins to stagnate several years after launch, adding gamification features can give the program new life. Interactive trivia, spin-to-wins, badges and achievements, personalized leaderboards and limited-time point bonuses make the program more compelling and can give a sustainable boost to the program’s effectiveness over time. Additionally, by not relying strictly on reward value to drive engagement, craft beer producers can help lower program costs to increase their ROI.

Adding New, Richer

Reward-Earning Opportunities

  As mentioned earlier, one of the reasons an incentive program can lose its effectiveness overtime is that participants become habituated to the program’s value proposition. Top performing supply chain trading partners may have already redeemed for their most coveted rewards and find themselves with more points than they know what to do with. The competition may have launched their own reward program with comparable, or even more compelling, rewards.

  It’s up to craft beer producers to constantly up the ante with their program’s value proposition. For instance, launching a points-based merchandise reward program alongside an existing debit or gift card program will offer new value for participants. Elevate a points-based program by offering top performers a concierge service to redeem for custom rewards – using their points to buy a new truck, renovate their home or pay for their child’s college tuition will personalize the reward experience and boost the program’s value proposition in a way the competition will struggle to match.

  Additionally, incentive travel promotions can be added onto any program type, giving craft beer producers an opportunity to connect with their supply chain trading partners on a deeply personal level. Given recent restrictions, the demand for incentive travel is projected to be particularly high once it is deemed safer.

  If minimizing rewards cost is a concern, try setting higher qualification thresholds for these more exclusive reward opportunities. Doing so can also help tap into supply chain trading partners’ competitive drive, keeping them more engaged as they compete for a limited number of higher tier rewards.

Personalizing Brand Interactions

to Build Loyalty

  In their early stages, incentive programs are typically geared toward growth. However, if well designed, the program will be able to convert that initial interest and motivation into brand loyalty over time. Loyalty is about more than rewards; rewards appeal to self-interest while loyalty is rooted in creating mutual interest. Craft beer producers can create this loyalty by using their incentive program to provide a highly personalized experience and to help their channel partners become more effective salespeople.

  This personalization should extend through every phase of the incentive program, from designing program communication to be relevant to each segment of their channel partners to basing reward selection on participant lifestyle and interests. Craft beer producer can use engagement metrics from their incentive program to identify which of their supply chain trading partners have a high level of buy-in and which of their partners might need a little more help. They can provide enablement to their partners by providing online courses and certifications and using their incentive program as a platform to educate partners on their brand and product lines, equipping them to more effectively sell their products.

  By using personalization and focusing on partner experience, craft beer producers can build loyalty with their supply chain trading partners in ways that make extrinsic rewards less important. This makes trading partners drastically less likely to lose interest in the program.

Re-Launching the Program with Updated Features and Branding

  Finally, when the growth of an incentive program begins to stagnate, it might be a sign that it’s time to re-launch the program. A program re-launch gives craft beer producers the opportunity to step back and figure out what their prior program did effectively, as well as what they can do better. During this time, craft beer producers should also explore other pain points they would like their new program to target.

  A pause between programs can help build anticipation, as supply chain trading partners realize the value proposition of the previous program that they had begun to take for granted. Once the new program launches, with updated branding and new features, supply chain trading partners will enthusiastically re-enroll and craft beer producers will experience a renewed period of growth. Better yet, by using the knowledge gained from the previous program, craft beer producers can make their re-launched program even more effective than the first.

Planning Ahead for Program Management

  Additionally, craft beer producers can enlist the help of incentive companies to design and manage their programs. Just like crafting an excellent brew requires years of experience, so too does managing an effective incentive program. Working alongside an incentive company with a proven track record can help craft beer producers avoid potential pitfalls and take advantage of decades of experience in managing successful programs.

  Whether a craft beer producer is looking to launch their first program or improve a program that is currently underperforming, the initial investment of partnering with an incentive company can pay dividends down the road.

  Nichole Gunn is the VP of Marketing and Creative Services at Incentive Solutions (www.incentivesolutions.com), an Atlanta-based incentive company that specializes in helping B2B companies improve their channel sales, build customer loyalty, and motivate their employees. Nichole Gunn can be reached at ngunn@incentivesolutions.com.

Promising New Equipment & Technology for the Brewing Industry

Cyndi
staff posing in front of a brewing machine
Photo Courtesy of BrewBilt

By: Alyssa l. Ochs

Breweries have been around for thousands of years, and while some aspects of the brewing process remain the same, a lot is changing in the modern brewing industry. Craft beer producers have been asking for more from the machinery they use, and innovative companies have answered that demand with some exciting new technology.

  Whether your brewery is brand-new or has been around for many years, it’s worth learning about the new mechanisms, tools, technology and improvements that are being made to brewing equipment right now.

Brewer Demand Driving Innovation

  From automated bottling to bourbon-barrel aging methods and distilled hop oil, there have been many brewing industry innovations over the years. Yet modern brewers are still asking for more changes in the equipment and technology they use to suit their brewing styles and customer preferences better.

  Bob Haggerty, head brewer for Steel Bender Brewyard in Los Ranchos de Albuquerque, New Mexico, told Beverage Master Magazine, “While loads of improvements have been, and continue to be, made to increase the convenience and connectivity of today’s equipment, I think that the focus on fewer bells and whistles and more quality is what I look for.

  “I’m not interested that my mash tun can send me email updates and would rather have mash screens that effectively filter wort,” Haggerty said. “I am not saying that I think we should move backward and eschew technology in all forms, only that shiny gadgets don’t impress me on their own.”

Concerning brewery equipment that holds great potential for the future, Haggerty said that he has been intrigued by the idea of real-time, continuous monitoring of product in fermenters and brite tanks for data, such as gravity, pH and dissolved oxygen.

“Though I have been approached with a gadget that does this already, it came with a hefty price tag and was coupled with a pricy subscription service,” Haggerty said. “I’d be more interested in something that was lower in cost and could be installed on every tank without the obligatory online aspect or subscription model.”

  Basically, when it comes to equipment, the Steel Bender brewing team prefers the focus to be on function, not Facebook.

  Torrey Lattin, the co-owner and head brewer for Hopping Gnome Brewing Company in Wichita, Kansas, has found that the most crucial brewing equipment is basic supplies that are in high demand, such as access to aluminum cans right now.

  “There have been several shortages during the pandemic, and it has been difficult to find enough cans with most breweries increasing their to-go options,” Lattin said. “We know of a few companies that we regularly purchase from, but we’re wondering if there are more options out there and if we can discuss this more with others in the industry.”

  In terms of machinery, the most in-demand pieces of equipment are generally the ones that save brewers time during the brewing process.

  “We recently purchased a keg washer, and it is probably my favorite piece of equipment for the time and work it saves,” said Lattin. “I highly recommend it for anyone utilizing a lot of kegs.”

Recent Advancements in  Brewery Equipment

  In general, there has been a lot more automation in the various steps of the brewing process to replace manual oversight and guidance. Brewery-focused companies have created cryogenic products for hop preservation and used advanced laboratory science to effectively can beer and measure dissolved oxygen.

  Meanwhile, depalletizers help improve quality control for canning and require just one operator on the line. Some breweries use a mash filter press that is a specialized plate and frame filter to recover extract, improve wort production and be more efficient.

  A recent development involves two holes on cans’ standard ends to improve airflow and let consumers get a smoother pour with less foam. There’s also technology for cans that transform them into their own cup to eliminate the need for glassware and reduce waste. Brewery equipment is also enabling breweries to create packaging with an airtight seal that re-closes the tab after opening so you can save part of a beer for later.

  Another trend worth noting is investing in machines that can produce both beer and spirits so that beverage companies can have crossover brewery and distillery operations. A barrel-aging system makes it easy to combine these two methods of beverage production.

  Cavitation involves a rotating impeller that generates low pressures at its fast-moving tips. This process increases the rate that starch passes from pulverized malted barley into the wart and eliminates the need for milling malted barley in advance.

  Other equipment upgrades and innovations that breweries may be interested to learn about include multi-purpose aseptic container brewing vessels, kink-resistant brewery hoses, beer-serving tanks to use in taprooms as an alternative to kegs and scalable wastewater treatment.

  With regard to significant brewery equipment updates in recent years, Jef Lewis, the president of BrewBilt Manufacturing, told Beverage Master Magazine that the drop dosing tank has become very popular among breweries lately. Based in Grass Valley, California, BrewBilt is a handcrafted brewery equipment company that has been working on several exciting new pieces of equipment.

“Hopping techniques have changed since the old days, and there’s a lot of dry hopping going on in the fermentation process,” Lewis said. “The hop dosing tank allows brewers to fill it with whatever they want to add to the fermentation. You would then purge the tank of any air and begin recirculating with a pump.”

  Lewis said that, lately, his company also includes whirlpool recirculation heat exchanges.

  “These are specially designed heat exchangers that cool the wort down from boil temperature to 167 to 170 degrees in about 10 minutes,” he said. “This allows the brewer to do hop aroma additions without getting any bitterness from the hop.”

Rusty Riley, founder and president of Oronoko Iron Works in Baroda, Michigan, told Beverage Master Magazine the most significant shift he has seen in the last 10 years has been toward a greater degree of automation in every corner of the brewery, better-equipped laboratories, and better data collection and utilization. Oronoko Iron Works is a custom-fabrication, CNC plasma cutting and machining company with a foundation in the brewing and distilling industry.

  “From grain handling to the brewhouse and on to fermentation, people have begun to utilize automation and data analysis to develop more consistent processes, which, in turn, leads to a more consistent product,” Riley said. “As consumers become more health-conscious, more breweries will move into producing non-alcoholic products that still satisfy a beer drinker’s palate. I anticipate some innovation in that sector in the coming years.”

New Brewery Equipment to Consider

  One example of a new piece of equipment from BrewBilt is this company’s Wort Oxygenator that allows breweries to eliminate the need for an oxygen tank to oxygenate their wort on the way from the heat exchanger to the fermenter. This is an important piece of equipment because sanitary oxygen is the most expensive and dangerous type of gas used by breweries.

  “What we offer is a safe alternative that eliminates the recurring cost of getting a tank filled,” said Lewis. “All that is needed is a small air compressor to deliver air to a specialized filter, and what comes out is sanitary oxygen. Then it goes through a flowmeter that allows the brewer to select and monitor how much oxygen is added to the wort through a venturi.”

  Another popular piece of BrewBilt equipment is its Mobil Flow Meter. It is a magnetic, digital sanitary flow meter that can be connected to anything in the brewery through a tri-clamp.

  “Plug any 120-volt extension cord to the unit, and you’re on your way,” Lewis said. “It includes a reset button to set it back to zero when you’re done, and it’s packaged in a small, sturdy stainless-steel frame with a handle to keep it safe from the rigors of the brewery environment.”

  Other BrewBilt equipment currently on-trend with breweries are the CIP Cart that uses electric or steam heat for cleaning brewery tanks and the three- and six-head manual and automated keg washers. 

  Oronoko Iron Works launched in 2014 with a mission to build a better roll mill for brewers. It is still the company’s top product.

  “The biggest factor in consistency is repeatability, and our mills are easy to adjust and get the same setting over and over again,” Riley said. “Since day one, we’ve strived to make our mills more user-friendly and bomb-proof. We’ve created additional particle reduction solutions like hammer mills, comminutors and other types of crushers and grinders, as well as ancillary products, like bulk bag stands, bins and bag-dump stations.

  “Along the way, we discovered that our customers also have a need for automated knife gates and other automation, so we’ve begun focusing on those areas too,” Riley said. “We’ve tried to become a ‘one-stop-shop’ for our customers so we can grow as they grow.”

Conclusions and Advice About New Brewery Equipment

  Although not all equipment innovations add significant value to the brewing process, certain strategic pieces can make life much easier. For both new breweries and well-established ones, it is a smart idea to stay up-to-date on recent equipment trends and learn about forward-thinking companies that are helping brewing processes become more efficient.

  Lewis of Brewbilt recommends that breweries don’t underestimate themselves and buy too small of a brewhouse. “There are golden ratios for brewhouse tanks, like boil kettles, mash tuns and lauter tuns that greatly increase your brewhouse efficiency,” he said. “Don’t buy the wrong shape tanks!”

  Lewis also said breweries should make sure the dead space under their lauter tun’s false bottom is minimal, to get a larger hot liquor tank than you think you need and to invest in lab equipment.

  “New technology is important and exciting, but don’t overlook ROI of the technology you’re investing in and examine how it might impact the growth trajectory of your business,” said Riley of Oronoko Iron Works.

  Riley also encourages breweries to ask themselves whether investing a few more dollars now will see them through to the next phase of growth. “Look out one, two, five or 10 years and try to envision what will improve your bottom line and help you achieve those goals over that time frame.”

Mobile Canning Offers Packaging Experience & Expertise Without the Pricey Hangover

Cyndi
staff in a canning facility

By: Gerald Dlubala

The canned and ready-to-drink beverage markets have shown to be the current lifeblood for many craft producers. More mobile canners are adapting to their needs, helping them get their product to market without the expense of purchasing a canning line. But what is mobile canning all about? What should you look for in a mobile canning service? What should you expect when a mobile canning service comes through your door? And how do you choose?

Invest In Your Product

  “Mobile canning is an investment, and like any investment, when you decide to jump into it, it’s best to go with experience and expertise,” said John Culp, owner of Beer Dudes Mobile Canning. “Canning lines are costly. They can run you $150,000, and if a brewer or distiller is only using their canning line on a minimal basis, they are wasting way too much of both their product and their overall resources. We believe that the cutoff, or magic production number, for actually benefitting from owning a canning line is right around the 2,000 cases a month mark. If you’re seeing this kind of production on a year-round basis, then you might look into taking ownership of a canning line. Otherwise, it’s better to put your resources and capital into buying more tanks and increasing capacity. Do more of what you do best, and we’ll get it canned for you.”

  Beer Dudes Mobile Canning is a full-service mobile canning company offering expertise and experience in on-site canning of carbonated and non-carbonated products, including beer, wine, spirits, sports drinks, energy drinks and seltzers. They currently offer two complete Wild Goose canning lines with SKA Fab depalletizers and a third line in the works. The canning lines are contained and transported in box trucks or trailers equipped with ramps or rail gates that eliminate the need for a brewery or distillery to have a loading dock.

  “As a mobile canner, we’ve got a history of filling over 10 million cans, so we have the experience and expertise. We do it daily, consistently metering key elements like dissolved oxygen and carbon dioxide while monitoring and performing can seaming inspections and adhering to regular maintenance of our quality machinery with parts on hand to repair them if needed,” said Culp. “There really is no difference in our service when canning different types of beverages. We use the same canning lines but with different parts. Part of the benefit of partnering with Beer Dudes Mobile Canning service is that we have a lot of money and expertise tied up in the unique parts, changeover equipment and specialized tools necessary for different canning services and needed changeovers. Our employees can react quickly and confidently to any situation that arises while the average craft brewer or distiller likely wouldn’t have the resources to do so. We have everything at hand ready to use, including premium printers.”

  Culp told Beverage Master Magazine that the canning systems are assembled on-site, usually taking about an hour. The client should provide two 110v GFCI power sources for the depalletizing, canning and seaming equipment, and possibly an air source if needed with at least 90psi and 15cfm. They do have helper compressors available or can bring a complete system when necessary, and that would require a 230v 15- or 20-amp service.

  “Give us a 10- by 26-foot space to operate in, and we’re in business,” said Culp. “Our employees depalletize and feed the cans while the client company supplies the necessary personnel (usually 2 or 3 workers) to handle the product post-filling. They can expect an average rate of 40 to 44 cases per minute stacked on 80 to 100 case pallets.”

  Beer Dudes charges a daily rate based on an eight-hour workday and consists of a one-hour setup and sanitization, six-hours of run time, and then another final hour of cleanup and breakdown. Pricing is a tier-based cost system, with lower rates as the amount of product to can rises.

  “As part of our service, we can provide anything that relates to the distributor, vendor or marketing function,” said Culp. “Our resources run the gamut and feature anything related that the producer would need, including the cans and ends, sleeves, the ability to do white labeling, etc. We have the expertise and ability to can from brite tank or keg and offer nitro dosing for nitro brews or wine filling.”

  Culp said that Beer Dudes always tries to help out the brewers that call in with an emergency, but it can be challenging because of many factors, including the can shortages that have affected the industry. While they have the necessary cans for their recurring customers, it can sometimes take six to eight weeks to source cans for a new customer.

  “The best way to combat that situation is for beverage producers to consistently plan ahead,” said Culp. “We generally look for lead times of four weeks, but those lead times are inherently dependent on the specific customer’s needs. We always recommend that a brewer or distiller adhere to a canning schedule and then regularly get on our calendar so that they always have a set appointment.

  Another issue is getting the client’s artwork ahead of time. We can offer guidance and consult, but the initial artwork requires Alcohol and Tobacco Tax and Trade approval. It’s also helpful if the brewer adheres to our recommendations regarding temperature and carbonation levels for their products. By following these recommendations, we can immediately limit the amount of waste and product loss and get to canning faster.

  “The bottom line is we’re in the business of supporting craft beverage producers,” said Culp. “We help them remain effective and competitive while getting their product out to market. A trend under current market conditions is for some craft brewers and distillers to operate within a smaller footprint, so we will soon offer a smaller canning unit that will be able to roll right through their standard front door. Other producers may have the resources and capability to produce a great product, but they don’t have the equipment or knowledge as to how to get those products packaged and ready for market. Beer Dudes is, like most mobile canning businesses, a regionally based operation, but will soon be adding the title of regional co-packer to their business as well.”

  Beer Dudes already holds all the licensing needed to be considered a manufacturing winery, distillery and brewery. Customers will soon be able to manufacture their beverage and then can it right at their co-packing facility in Denton, Texas. With the exception of transporting craft beer because of Texas law, they can transport a client’s beverages to their facility to be canned, or buy larger quantities of product, like wine, from a larger producer for the purpose of packaging and selling it in smaller quantities or lots under different labels.

Choose Knowledge And Experience

  Before Sean Kingston started WilCraft Can, a provider of mobile canning solutions for the brewing and distilling industries, he amassed 13 years of chemical and aerosol engineering experience at SC Johnson. He fully understands the process of maintaining quality regarding the liquid filling of pressurized products. He and his like-minded team bring that critical engineering mentality and knowledge to WilCraft Can.

  “Look, canning lines aren’t cheap, so a craft brewer needs to ask themselves a few questions and then answer honestly,” said Kingston, owner and Chief Operating Officer of WilCraft Can. “Are you consistently canning at least 1000 cases a week? Can you afford the valuable floor space you’ll be giving up to a permanent canning line? Can you afford the training and retraining of employees to stay up to date and remain efficient with the canning line and potential maintenance issues? What tasks aren’t getting done because your employees are busy canning your product.”

  “As a brewer or distiller, your first and foremost task is to produce the best product you can,” said Kingston. “If you’re ready to expand, then use any available extra resources to expand production rather than jump into the packaging business. Do more of what you do best, and we’ll use our expertise to complement that with our seamless process to can and package your product to your specifications, even down to specific carbonations levels. We can suggest temperature levels, but your beer is your beer, and we’ll adjust our equipment to keep it that way.”

  WilCraft Can willingly works with any contact and supplier you prefer. Still, their experienced team comes prepared with all of the quality contacts needed for filling and packaging your product, including the availability of quality aluminum cans.

  “All we really need to know is the size of can you need and two to three weeks advance notice of the artwork you want on your cans, and we can do the rest,” said Kingston. “The producer supplies one or two people along with a three-phase power supply, compressed air and a CO2 supply and space for us to set up. We use premier Codi Counter Pressure Fillers, SKA Fab depalletizers and pressure-sensitive labelers to produce a fresh, consistent and customer appreciated canned product, all essential qualities for a craft beverage producer.”

  Kingston believes that by using a mobile canning business, beverage producers can see how their business is doing regarding base profitability and best-selling products. They can then make adjustments and decisions to grow their business better.

  “Packaging and canning expertise is even more critical in today’s market conditions,” said Kingston. “Craft producers should always look for credentialed quality and exceptional customer service in a mobile canner. It can be easy for mobile canners to get grouped into the inexperienced market category, but we at WilCraft Can have years of packaging and canning experience behind us. That experience allows us to fill a critical need in the craft beverage market by offering a well-informed and knowledgeable mobile canning business. We understand the entire process, start to finish. If a canner doesn’t ask you what the final gravity of your product is or make accommodations for variances in cans and can manufacturers that affect target fill weight, you may want to look elsewhere.”

  “Additionally, quality customer service is always crucial,” said Kingston. “Delivering on a promise is critical, and we do what we say we’re going to do. We respond to emergencies as best as we can, and our record of nearly 400 runs without a miss is something we are extremely proud of. On that same note, brewers can help themselves out by thinking ahead and planning at least four weeks in advance. They know that they’re going to have to can their product, so plan ahead and guarantee the time and necessary resources.”

  Kingston told Beverage Master Magazine that he believes that the specific guidelines and benchmarks for manufacturing set by the National Institute of Standards and Technology will eventually be coming to mobile canning.

  “WilCraft Can is already prepared for that move. We have them implemented and adhere to them daily, including critical documentation practices. The saying goes that if it’s not documented, it didn’t happen, so continuous documenting of specific practices is mandatory.”

  WilCraft Can stays focused on the canning process with an eye on supply and keeping adequate inventory. They pride themselves on reacting to the marketplace with confidence in having an adequate supply of materials to meet their customer’s needs. They also have a growth plan of supplying cans at minimums far below current market demands that they will directly print on, eliminating the need to use sleeves or labels.

COVID-19 Continues to Impact Canadian Craft Beer Industry

Cyndi
staff in face mask

By: Briana Doyle

The COVID-19 pandemic continues to reshape the craft beer landscape in Canada. Unlike in the spring, when businesses closed from coast-to-coast, what breweries are experiencing to-day is very different depending on where they are in Canada.

  Breweries in the Maritime provinces — Nova Scotia, Prince Edward Island and Newfoundland and Labrador — are almost back to business as usual, thanks to the Atlantic Bubble. Strict mask-wearing and sanitation rules, along with aggressive contact tracing, have left this part of Canada with some of the lowest rates of COVID-19 in the world.

  Like Australia and New Zealand, the remote Maritime region has benefited from its isolation. This region has almost completely eliminated cases of COVID-19 thanks to strict travel re-strictions that require anyone entering the region — including fellow Canadians — to self-quarantine for 14 days. The only other Canadian region with a similar requirement is the Northwest Territories, which also has a low number of cases.

  Even here, however, festivals and events have been canceled, restaurant and pub seating ca-pacities are reduced and gathering limits have been imposed to reduce the risk of super-spreading events that could lead to a resurgence of COVID-19.

  In Quebec, by contrast, breweries and brewpubs, like bars and restaurants, were forced to close again this fall as partial lockdowns were reimposed to quell the spread of COVID-19. When this column was written, it appeared that other provinces, including Ontario, British Co-lumbia and Alberta, were heading in the same direction.

  For breweries in Canada’s COVID-19 hot spots, the playing field is far from even. Each prov-ince has responded differently to the pandemic. In Ontario, for example, home delivery has emerged as an important sales channel for craft breweries. Taprooms that were focused on servicing their local community are now launching full-fledged e-commerce websites and ship-ping beer anywhere the rules allow.

  The province has relaxed certain rules around alcohol delivery, which has opened up new op-portunities for brewpubs to sell beer from other breweries — something the craft beer industry has been lobbying for over many years. Dominion City in Ottawa, for example, is now offering a “Friends of the Dominion” variety pack featuring a handpicked selection of Ontario beers. The package comes with a bag of chips — the token “food” item to meet the restaurant license re-quirements.

  In areas hit hard by the second wave of the pandemic, many breweries are struggling to stay afloat. To offer some of these producers a little lift, Canadian brewery supplier, Hops Connect, created a pandemic beer called Isolation Nation, a light and refreshing ale with notes of man-darin, lemon and tea. The company provided the hops and malt required to produce it, at no cost, to 45 breweries from coast-to-coast to help them make a little extra cash. The beer is made from Canadian-grown malt and locally produced Sasquatch hops.

  The first brewery to launch its version of Isolation Nation was the New Maritime Beer Company in Miramichi, New Brunswick. The brewery opened in 2020 and brewed its inaugural batch of beer just two days before the first pandemic shutdowns in March. Co-founder Adam Lordon told CBC News that it was hard to think of worse timing for the shutdown. “It was pretty much at the beginning and the worst possible timing. The startup phase is certainly challenging enough and can be stressful enough in the best of times,” he said. To pay it forward, the brew-ery is donating a portion of profits from the sale of this beer to the local food bank.

  New Maritime Beer Company is still in business, for now at least, but many other Canadian craft breweries are closing operations or seriously considering it. After six years in business, Ontario’s Abe Erb Brewing announced in October that it would shut all four of its locations in Waterloo, Kitchener, Ayr Village and Guelph.

  In Alberta, Mill Street Brewery announced in late October that it would close its Calgary brew-pub due to COVID-19. Mill Street’s other brewpubs in Toronto, Ottawa and St. John’s will re-main open.

  In British Columbia, Central City Brewers + Distillers also closed one of its Red Racer Tap-houses in downtown Vancouver after five years.

  In April, a survey of craft breweries conducted by the Canadian Craft Brewers Association found that 44% reported a year-over-year drop in revenue of 50% or more when the pandemic hit in March. 

  Most breweries who responded to the survey reported having cash reserves for only three months or less. Although the federal government has introduced financial support programs for businesses, many craft breweries did not meet the requirements for financial aid. Establish-ments in business for less than a year did not qualify for many programs, for example, while other programs specifically excluded alcohol-based enterprises. 

  With restaurants and bars closed in many parts of the country, more Canadians are eating and drinking at home these days. A poll released in June by the Canadian Centre on Substance Use and Addiction found that one in five Canadians who drink alcohol and have been staying home more since the pandemic drink more often than before the onset of the pandemic. About 20% said they have a drink every day.

  “It is reassuring to see that for the majority of Canadians, alcohol use has either decreased or remained stable since the onset of COVID-19,” said Dr. Catherine Paradis, senior research and policy analyst at CCSA. “However, from a gender perspective, there is concern. On average, female consumers of alcohol are reporting 2.4 alcoholic drinks per occasion — which is above the low-risk alcohol drinking guidelines — and about 12% are reporting they consume alcohol in excess when they drink. By doing so, women are putting themselves at risk for short- and long-term negative health consequences.”

  As awareness grows of the negative health impacts of alcohol, a growing number of millennial beer-lovers are now looking for low- and no-alcohol beer alternatives. Between 2013 and 2018, nonalcoholic beer sales increased more than 50%, and over the past year, the category has grown 12% in total volume.

  In a press release announcing the launch of alcohol-free Budweiser Zero in Canada this fall, the company noted that consumer data reveals the 19-to-34-year-old age group, including mil-lennials and older members of Generation Z, led all demographic groups in consumption vol-ume of nonalcoholic beer.

  These “sober-curious” consumers aren’t necessarily teetotallers but are seeking responsible alternatives when they do not wish to drink booze, whether for health reasons or because they don’t want to drink and drive.

  According to Budweiser’s research, 64% of no- and low-alcohol beer is consumed by those in the 19-to-34 bracket. Women most often choose nonalcoholic beer as an alternative to sugary drinks, and men see it as suitable for a variety of social occasions.

  It isn’t just big breweries that have noticed this consumer trend. This fall, Beau’s Brewing in Ontario joined a growing number of breweries offering lower-alcohol options for customers, with the introduction of Lug Tread 2.5% — a lighter version of its flagship brew.

  Beau’s designed the layered ale to mimic the taste of the company’s most popular beer, Lug Tread, with a blend of barley malts and wheat delivering fresh grain flavor and a satisfying mouthfeel. The brew has mild herbal and orchard fruit notes and a clean finish. 

  “This is no watered down, bland ‘lite’ beer,” company co-founder Steve Beauchesne told Na-tion Valley News. “We’ve put time and care into developing this recipe, and we’re super happy with the results. This is a low alcohol beer that actually tastes like craft beer.”

  The beer is available in single 473mL cans at provincial liquor stores and the brewery, and will also be in the brewery’s six-pack winter sampler.

  In the spring, Toronto-based Rorschach Brewing also launched a nonalcoholic offshoot, Free Spirit Brewing, which debuted with the 0%, low-calorie Adventure IPA. The beer is available in cans and on tap at the brewery.

  Microbrasserie Le BockAle, based in Drummondville, Quebec, has gone even farther. The company has made a name for itself producing nonalcoholic craft beer, which it distributes throughout Quebec and Ontario. In June, the company also launched an e-commerce website offering free shipping across Canada. Le BockAle offers three core beer varieties, Découverte IPA, Berliner Sonne Berliner Weisse and Trou Noir Stout, as well as occasional limited-edition releases.

  Likewise, Toronto-based Partake Brewing has developed a line of five low-calorie, nonalcohol-ic craft beers that have proven popular in Canada: a red, IPA, blonde, pale ale and stout. Now the company is getting set to expand into the U.S. In September, Partake announced that it raised $4 million of Series A capital in a funding round led by San Francisco-based CircleUp Growth Partners.

  The new funds will accelerate the company’s growth, specifically in the U.S. market, by allowing the brand to secure key hires, grow its distribution and retail network and build consumer brand awareness. This growth will support Partake Brewing’s expanding coverage with retailers such as Total Wine & More and Whole Foods Market.