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Brewery Engineering Brewery Sizing

Brewery Engineering Brewery Sizing. Lecture 5. Brewery Engineering Lecture 5 - P 1. BREWING ENGINEERING. BREWERY SIZING.

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Brewery Engineering Brewery Sizing

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  1. Brewery EngineeringBrewery Sizing Lecture 5 Brewery Engineering Lecture 5- P 1

  2. BREWING ENGINEERING BREWERY SIZING • If there is a single theme that keeps repeating itself in the craft brewery industry, it is that of undercapitalized start-ups. These include such proposals as two-barrel production breweries, brewpub start-ups with capital of less than $100,000, and even commercial breweries located in residences. The usual idea for the latter scenario is "I just want to start out brewing on weekends, and then when the business has grown enough I'll quit my regular job...." • The principals in these would-be ventures want to believe that they have discovered some unexploited market niche that will give them the edge over established competitors, that they can luck onto the proverbial used brewing system for one-fourth of its market value, or that "All I have to do is make good beer and it will sell itself." This is simply not a realistic view in today’s marketplace. Returning now to reality, here are some basic rules of thumb for start-ups which should guide your planning. Brewery Engineering Lecture 5- P 2

  3. BREWING ENGINEERING BREWERY SIZINGProduction Brewery • A production brewery should in most cases choose a brew house size of at least fifteen barrels. • Smaller systems will generally require too much labor per barrel to be more than marginally profitable, and will tend to run out of capacity before turning a decent profit, necessitating replacement of equipment within three years of opening. • That said, a number of breweries have started with smaller systems and up sized within one to two years after opening (the “bootstrap method”), and many of these are still operating. • The present climate would not seem too friendly to this style of start-up. • A production brewery should ideally open its doors with a minimum of 1,500 barrels of annual capacity, and a minimum of two to three primary fermenters for an ale facility. • As for lager beer, increase all size and cost requirements compared to ale breweries by a factor of 1.5-2.0. Lager is extremely capital intensive to make in a small production brewery and may only be profitable at volumes in excess of 10,000-20,000 barrels per year. Brewery Engineering Lecture 5- P 3

  4. BREWING ENGINEERING BREWERY SIZINGProduction Brewery • The typical budget for production brewery utilizing start-up used equipment is in the range of $150,000-$200,000. • Up to a third of that may be needed for building improvements alone. • A more realistic range for mature markets is $250,000-$350,000 for a draft only operation and a minimum of $500,000 for a brewery with high speed bottling capability. • A key fact to keep in mind when assembling your financing is this: Debt kills small breweries. Equity is much safer, even if you have to give up part of your own to raise the capital Brewery Engineering Lecture 5- P 4

  5. BREWING ENGINEERING BREWERY SIZINGBrewpub • The usual minimum rational size for brewpub start-up systems is a seven barrel system. • This will suffice for small to medium sized, retail only brewpubs (up to 125 seats). • In certain instances, very small, limited operations may call for three to five barrel systems. • Any brewpub that is larger than 125 seats or one that plans to wholesale any product to other outlets will likely need at least a ten barrel system. • A 7 barrel brewery system will occupy 750-1000 square feet, and larger ones up to 1700. • Total space for even a small operation should not be less than 2500 square feet, and 4000-5000 is much better. • If the brewery will also produce beer for sale to other establishments, considerably more space will be needed to store, wash and fill kegs and/or bottles. Brewery Engineering Lecture 5- P 5

  6. BREWING ENGINEERING BREWERY SIZINGBrewpub • A typical budget for for most operations the minimum capital required is $250,000-$300,000. • There have been exceptions to this, in instances where the premises were already a bar or restaurant and the only added improvements needed are to the brewery space. • The average brewpub investment is around $500,000 (for brewery equipment and leasehold improvements), with elaborate restaurant and showpiece operations ranging up to $2 million or more. Brewery Engineering Lecture 5- P 6

  7. BREWING ENGINEERING BREWERY SIZING Annual production = Brewhouse size X Number of brews per week X 50 weeks per year Example: 10 bbls X 3 brews / week X 50 weeks / year = 1500 bbls / year Fermenters required = Brew house size X vessel cycles / yr (to meet annual production) Brewery Engineering Lecture 5- P 7

  8. BREWING ENGINEERING BREWERY SIZINGExample 1 – Brewpub:  Parameters: 1000 Bbls per yr; 75%ales, 25%lagers; 50 brewing weeks / yr 14 day ales / 28 day lagers with full fermentation / ageing in fermenters Ales – 25 cycles / fermenter / yr (50 brewing weeks / 2 week fermentation + ageing) Lagers – 12.5 cycles / fermenter / yr (50 brewing weeks / 4 week fermentation + ageing) 6 beers on tap Calculate system size for a 3.5 barrel system: 1000 bbl ÷ (3.5 bbl × 50 brewing wks / yr) = 5.7 brews / wk for a 7 bbl system 1000 bbl ÷ (7 bbl × 50 brewing wks / yr) = 2.9 brews / wk Brewery Engineering Lecture 5- P 8

  9. BREWING ENGINEERING BREWERY SIZING BREWERY SIZINGExample 1 – Brewpub: Parameters: 1000 Bbls per yr; 75%ales, 25%lagers; 50 brewing weeks / yr 14 day ales / 28 day lagers with full fermentation / ageing in fermenters Ales – 25 cycles / fermenter / yr (50 brewing weeks / 2 week fermentation + ageing) Lagers – 12.5 cycles / fermenter / yr (50 brewing weeks / 4 week fermentation + ageing) 6 beers on tap Calculate system size for a 10 bbl system 1000 bbl / yr ÷ (10 bbl × 50 brew wks / yr) = 2 brews / wk for a 15 bbl system 1000 bbl / yr ÷ (15 bbl × 50 brewing wks / yr) = 1.3 brews / wk Brewery Engineering Lecture 5- P 9

  10. BREWING ENGINEERING BREWERY SIZINGExample 1 – Brewpub: Parameters: 1000 Bbls per yr; 75%ales, 25%lagers; 50 brewing weeks / yr 14 day ales / 28 day lagers with full fermentation / ageing in fermenters Ales – 25 cycles / fermenter / yr (50 brewing weeks / 2 week fermentation + ageing) Lagers – 12.5 cycles / fermenter / yr (50 brewing weeks / 4 week fermentation + ageing) 6 beers on tap • Brewing less than twice a week, system is oversized. • More than 3 times per week, undersized. • 7 to 10 bbl recommended for this example Brewery Engineering Lecture 5- P 10

  11. BREWING ENGINEERING BREWERY SIZINGExample 1 – Brewpub: Parameters: 1000 Bbls per yr; 75%ales, 25%lagers; 50 brewing weeks / yr 14 day ales / 28 day lagers with full fermentation / ageing in fermenters Ales – 25 cycles / fermenter / yr (50 brewing weeks / 2 week fermentation + ageing) Lagers – 12.5 cycles / fermenter / yr (50 brewing weeks / 4 week fermentation + ageing) 6 beers on tap • Number of fermenters required • Projected 750 bbls ales (75%) & 250 bbls lagers (25%) • For 7 bbls system • Ales – 750 bbl / yr ÷ (7 bbls × 25 cycles / yr ) = 4.2 = 5 tanks • Lagers – 250 bbl / yr ÷ ( 7 bbls × 12.5 cycles / yr) = 2.8 = 3 tanks • Total – 7-8 fermenters to produce 750 bbls ales and 250 lagers Brewery Engineering Lecture 5- P 11

  12. BREWING ENGINEERING BREWERY SIZINGExample 1 – Brewpub: Parameters: 1000 Bbls per yr; 75%ales, 25%lagers; 50 brewing weeks / yr 14 day ales / 28 day lagers with full fermentation / ageing in fermenters Ales – 25 cycles / fermenter / yr (50 brewing weeks / 2 week fermentation + ageing) Lagers – 12.5 cycles / fermenter / yr (50 brewing weeks / 4 week fermentation + ageing) 6 beers on tap • Number of fermenters required • Projected 750 bbls ales (75%) & 250 bbls lagers (25%) • For 10 bbl system: • Ales – 750 bbls / yr ÷ (10 bbls × 25 cycles / yr) = 3 tanks • Lagers – 250 bbls / yr ÷ (10 bbls × 12.5 cycles / yr) = 2 tanks • Total – 5 fermenters to produce 750 bbls ales and 250 bbls lagers Brewery Engineering Lecture 5- P 12

  13. BREWING ENGINEERING BREWERY SIZINGExample 1 – Brewpub: • System recommendation: 10 bbls system with 5X10 barrel fermenters and 6X10 servers • Choosing the 10 bbls system over the 7 bbl has these advantages • -good utilization of manpower (2 brews / wk) • -reduced floor space (5 tanks vs. 8) • -better priced / more economical (fewer tanks) • -better expansion capabilities • -meets all system reqs • Note: Double sized fermenters (and conditioning tanks may half the number of vessels required to meet annual production • Note: All calculations assume 50 brewing weeks / yr Brewery Engineering Lecture 5- P 13

  14. BREWING ENGINEERING BREWERY SIZINGExample 2 – Microbrewery: • Proper sizing for a microbrewery should always allow for future expansion. • Many micros will start out with possibly single size fermenters and as demand increases, double or even triple size fermenters (and bright tanks) are added. • Labor and available space will generally determine the appropriate time to expand to a larger brew house. • You have properly sized your brewery if you can get 5 to 10 years out of your initial brew house.  Brewery Engineering Lecture 5- P 14

  15. BREWING ENGINEERING BREWERY SIZINGExample 2 – Microbrewery: Parameters: 3000 Barrels per year; 75% (2250 bbl) Ales, 25% (750 bbl) Lagers 50 brewing weeks / year 14 Day Ales / 28 Day Lagers with full fermentation in fermenters Ales - 25 cycles/fermenter/year (50 brewing weeks / 2 week fermentation) Lagers - 12.5 cycles/fermenter/year (50 brewing weeks / 4 week fermentation) Produce 4 different styles of beer • How to calculate system size: • Select system size: • 20 Barrel system 3000 bbl/year ÷ (20 bbl system × 50 brewing weeks/year) = 3 brews per week • 30 Barrel system 3000 bbl/year ÷ (30 bbl system × 50 brewing weeks/year) = 2 brews per week • 40 Barrel system 3000 bbl/year ÷ (40 bbl system × 50 brewing weeks/year) = 1.5 brews per week • Comment - One must look at the labor component in selecting a system size. • Most properly sized microbreweries brew 2 - 3 times per week in their first couple of years of operation. Brewing less than once a week, the system may have been oversized to start with. Brewery Engineering Lecture 5- P 15

  16. BREWING ENGINEERING BREWERY SIZINGExample 2 – Microbrewery: Parameters: 3000 Barrels per year; 75% (2250 bbl) Ales, 25% (750 bbl) Lagers 50 brewing weeks / year 14 Day Ales / 28 Day Lagers with full fermentation in fermenters Ales - 25 cycles/fermenter/year (50 brewing weeks / 2 week fermentation) Lagers - 12.5 cycles/fermenter/year (50 brewing weeks / 4 week fermentation) Produce 4 different styles of beer • Calculation of number of fermenters required: • Projected: 2250 bbls Ales (75%) & 750 bbls Lagers (25%) • Ales ----------->2250 bbl/year ÷ 25 cycles/year = 90 bbls fermentation capacity • Lagers ----------->750 bbls/year ÷ 12.5 cycles/year = 60 bbls fermentation capacity • Total -----------> 150 bbls fermentation capacity • For 20 bbl system 8 × 20 bbl fermenters are required • For 30 bbl system 5 × 30 bbl fermenters are required • For 40 bbl system 4 × 40 bbl fermenters are required Brewery Engineering Lecture 5- P 16

  17. BREWING ENGINEERING BREWERY SIZINGExample 2 – Microbrewery: • System Recommendation : • 30 Barrel system with 5 x 30 bbl fermenters and 1 x 30 bbl bright tank. • This will comfortably allow for future expansion. • **Note: The use of double or triple sized fermenters and conditioning/lagering tanks will reduce the number of fermenters required to meet annual production. • Brewing more than 3 times a week, the system may have been initially undersized, particularly if future expansion is anticipated. • For this example, either of the above systems would be recommended. However, if future sales are anticipated to be, say over 5000 bbl/yr, then the larger systems would be preferred. Brewery Engineering Lecture 5- P 17

  18. BREWING ENGINEERING BREWERY SIZINGStudent Brewery: Parameters: Barrels per year: _______ % Ales: ______ % Lagers: ______ # Styles of Beer Produced: ______ Use your worksheet to figure out appropriately sized brewery. Brewery Engineering Lecture 5- P 18

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