Efficiency and Rentability in the Craft beer Brewery

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1 Efficiency and Rentability in the Craft beer Brewery (and the right equipment) Klaus Rauchenecker BrauKon Germany

2 Lake Chiemsee Bavaria home of BrauKon Lake Beach at Puerto Baras: Our company is in a very similar einvironment

3 May 18th 2018: Chilenian brewers visiting BrauKon with Chamchal

4 We are 5 Partners at BrauKon. Alltogether our team is about 125 people

5 BrauKon production facilities. We manufacture every year about 30 brewing system to install all over the world: Europe, USA, Asia, Australia, Samoa, Afrika, South America

6 We run three breweries which mainly brew the brand name Camba Beer

7 Camba Pub brewery 10 hl in Truchtlaching

8 Camba Old Factory brewery 20 hl in Gundelfingen

9 The new Camba brewery 40 hl at our headquarter in Seeon

10 The craft brewery growth in Chile has already startet and the brewers want to develop! Antoinne de Saint Exupery: If you want build a ship,. teach your team the nostalgia of the wide and endless sea! We have a current situation and we have a dream! In the following some pictures to have possible idea of your future brewery:

11 Brewery Glaabs-Bräu nearby Frankfurt Germany Production about hl/y - growing

12 Brewery Jopen 20 hl in Haarlem Netherlands Production about hl/y

13 Urban Chestnut brewing in St. Louis Missouri USA 4-vessel brew house installation 75 hl

14 Troegs brewery Hershey Pennsylvania - USA

15 Odell Brewery Denver Colorado USA

16 Clandestino Brewing Panama 30 hl brewing system 3-vessel type plus Whirlpool and HLT

17 But: In Chile the craft brewery boom has just startet. This is required: smaller systems 5 30 hl with affordable basic technology manual or semi automation Important! You need: robust and value stable systems The systems have to be upgradable in the future (for example adding another brew kettle and full automation)! And: The systems have to produce excellent beers with constant product quality!

18 Some pictures as examples of basic BrauKon systems: 5 hl brewery in Chinisau Moldavia

19 The 5 hl brew house is manually operated, but hard piped and has digital temperature control for water and for the mash/wort kettle.

20 Warpigs Brewery 10 hl Copenhagen Denmark: Manually operated brew house, right side whirlpool with wort cooling and HLT

21 Santa Cruz Brewery 20 hl Bolivia: Manual valves, but mashing, sparging and wort boiling by TControl semi automatic control.

22 Tröegs Brewery in Hersehey 20 hl system in use as a pilot plant with TControl semi automatic control.

23 Irland: Killarney Brewing: 20 hl BrauKon Brewery with TControl semi automatic control. All tank temperature control is integrated in the TControl

24 Again: why is cost efficency so important? Mario Sepulveda: We have to survive in a world of competition. Dick Cantwell: Hope is not a Plan! Some examples - energy reduction - malt yield - story of success

26 But again: all we discuss today my personal view is: The beer quality has priority! Our clients do not want a tasteless mass product! This means: outstanding beer taste constant product quality natural shelf life (without artificals)

27 The nice experience hereby is: Beer quality and cost efficiency is corelating! Adapted brewery equipment reduces the costs and improves the beer quality For example: Brewery malt mill: protects the husk improves lautering reduces fat acids => better foam stability. An indirect heating system saves energy and protects the mash and wort from heat jam (fouling). Wort boiling calandria (EcoBoil) reduces evaporation and improves natural shelf live by improved protein fraction.

28 But now we focus on cost factors to be considered in the brewery: Water consumption Energy consumption Hop consumption Additional costs Cip medias-co2 Malt consumption Personal costs The right size of equipment

29 Costs for water consumtion: The specific water consumption in the brewery values in breweries differ massively! Every brewing company is different: It depends on: Brewery size Beer types and receipts Malt yield Late hopping and dry hopping Bottles and bottle cleaning KEGs and KEG-cleaning Etc. So the values vary from 3-4 hl per hl sales beer for mass production breweries to 10 hl/hl and more for special craft beers as IPAs etc and such as oak aged beers.

cleaning units instead of Cask or manual cleaning.

30 Technologies for reducing water consumption: Brew house: efficency and optimized hard piped CIP-pipe work Tank room: CIP-systems Filling: example KEGs with automatic cleaning units instead of Cask or manual cleaning. Pictures: example of single CIP-Tank and semi-automatic 2-vessel CIP-system (upgradable to full automatic in the future)

31 For information: CIP-system in the middle sized brewery: This is the heart of the brewery The CIP-system (normally 3-vessel type) is for pipe work and tank and utility cleaning and desinfection Tanks are for caustic, acid/desinfection and staple water

32 Costs for energy consumtion: heating energy We have: and electric energy for the motor power supply but this is not variying significantly. So we do not discuss this today. Heating energy: Basically- the final consumption for the heat we need for brewing beer would be in all breweries very similar: We all have to bring in the energy for the hot water, for the mashing, and for the wort boiling etc. Energy recovery by wort cooling heat exchanger and by vapor condensing with energy recovery. Required would be : about 5-9 m³ Gas per hl beer production But: The highest impact is how we produce and how we transfer the energy?

33 Heating Energy by direct heating: The worst heating technik is the direct heating: About 50-60% of the energy go to the environment! The heat spots in the kettle overheat mash and wort. => Massive improvement and energy reduction by indirect heating technology:

34 Indirect hot water heating systems: Pictures: Electric and Gas inline hot water heating systems work with 130 C. - Professional system for optimal beer quality - Nearly 100% yield! - Good price value relation.

35 Or: heating by steam: Steam in used in middle sized beweries: - higher flexibility - enables sterilization of pipe work and KEGs - Disadvantage: higher price for the system

36 Energy saving wort boiling system EcoBoil and SmartBoil technology Internal calandria: - Low evaporation rate: 3-5 % - Improvement or shelf live, taste and foam. - Perfect for fine beers such as Lagers or Pils

37 Hop consumption: Of course we are Craft beer brewers! Cost of hops per hl sales beer are varying massively! There is hops used for boiling, Hops for late hopping and dry hopping - up to 600 g /hl! High prices for special hops! Big hop volumes increase the beer losses! Costs for hops can be for lager beer 3 US-Dollars per hl in big breweries and up to >15,-- US-Dollars per hl sales beer and higher!

38 Hop technologies for middle sized breweries for reducing hop consumption and aroma improvement: HopBack systems for cones and for pellets for late hopping (hot) HopGun for dry hopping (cold)

39 Cost efficiency in malt consumption: Basic values with good equipment: Brew house yield: meanwhile OBY is common Good systems reach 97% OBY for regular beers Plato. This means for example: For a lager beer with 20 hl hot wort per brew 12 Plato Malt load is about 325 kg For an IPA with 16 Plato 20hl hot wort 460kg malt load Example for possible savings: 15-20% malt saving at a beer with 15 Plato means 4,5 kg/hl less malt => hl/y = 45 tons x 550,--DollarsUS/to => ,-- Dollars/y = DollarsUS saving in 10 years.

40 Equipment influencing malt consumption: The milling A professional brewery malt mill enables 5-10 % better yield!

41 Equipment influencing malt consumption: mashing and lautering process A pre mashing system (AlloySius) and good rake gear technology can improve the yield aproximately 2-8%

42 Personal costs: In the small brewery the personal costs are the highest cost impact! For good beer we need high qualified people! All personal has to be trained And: we need reserve personal in case of sickness. Risk of personal faults and fluctuating product quality Etc. Regarding investments in equipment: We need as possible: balanced and upgradable automation technique!

43 Example: brew house 15 hl with manual valve operation - semi automatic pipe work design upgradeable with pneumatic heads for later full automation:

44 Brew house automatic design: Picture left: brew house upgraded to full automatic Picture below: pneumatic valves and pipework in a full automatic brew house.

45 Following brew house capacities can be reached: 2-vessel brew house plus whirlpool: 3-4 brews in 24 hours (so semi automatic 2 brews in one shift is possible) 3-vessel brew house (1 mash kettle, 1 lauter tun and 1 wort boiling kettle) plus whirlpool: 5-6 brews in 24 hours 4-vessel brew house (plus whirlpool): 8-10 brews in 24 hours All BrauKon brew house systems are prepared for being upgraded in the future: in automation and by adding more brew kettles! and adding other features such as spent grain pumpe etc.

46 Brew house future upgrades: pictures as examples for: 3rd vessel extension, hop dosing, spent grain pump, dosing pumps:

47 Maintenance costs: Maintenance, wear and tear parts, availability: Easy access to the built in motor drives and units Long lasting and robust built in parts Availability of spare parts also in 10 and 20 years And regard: if your production stops: you can not supply and sell your product! Examples for world wide well known part manufacturers: Grundfos and Fristam Pumps, SEW-motor drives and frequency converters, Siemens electrics, Kieselmann valves, Endress&Hauser flow meters etc.

48 My personal recommendation: Which breweries have been really successful: Long term thinking regarding sustainability The equipment you buy lasts usually for many decades! Imagine all the savings you can have throughout this time! Further you have the benefit of less sorrows, less risk in production! And finally you will have: a better taste, improved consistency in beer quality and a longer natural shelf life!

49 Thank you for listening!

BrauKon GmbH Klaus Rauchenecker Phone: +49-8061-939-324 Mobile: +49-170-9043-787 BrauKon GmbH Gewerbering 3 83370 Seeon Germany klaus.rauchenecker@braukon.de www.

50 BrauKon GmbH Klaus Rauchenecker Phone: Mobile: BrauKon GmbH Gewerbering Seeon Germany klaus.rauchenecker@braukon.de Phone head office: General Managers: Markus Lohner, Christian Nuber Commercial Register: 15180; Traunstein Germany VAT-Number: DE

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