Beer. in a Box. The future for draft beer distribution

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1 Beer in a Box The future for draft beer distribution

2 Carbonate Solutions Ltd is a UK Technology company specialising in carbonating drinks at the point of dispense. Incorporating 20 years research and development Carbonate Solutions has developed a carbonation system, draftstream. Unlike other carbonation systems, draftstream provides ideal conditions to replicate the CO2 retention and bubble size experienced from bottles and kegged alternatives. draftstream also allows a range of new drinks to be brought to the on-trade market including draft sparkling wines and pre-mix cocktails, beers, ciders and stouts. Existing Industry Inefficiencies: Huge inventories of expensive aluminium or stainless kegs are used in the logistics system with high losses due to theft for scrap, each keg costs 120 and it requires 8 in the supply chain for every 1 in use (for long distance export this averages 12). Keg Aware estimate that missing kegs cost the industry 50m ( 70m) per annum in the UK. Kegs are heavy and asymmetric (i.e. don t pack efficiently) so their transportation costs are high, both monetary and environmentally. An empty 50 litre keg weighs 13Kg and needs returning for cleaning and refill. Sterilisation on return comes at a high environmental price, due to large quantities of water and chemicals. Keg volume is typically 50 litres which means that in lower throughput bars, fresh product can be a problem. Once broached a keg needs using up within 2-3 weeks. Lightweight one trip kegs have been developed, however they are still asymmetric and are relatively expensive at circa 12 for 30 litre vessel. Further still, they are not suitable for stouts and their ability to retain fresh product and prevent air ingress is poorer than steel kegs. 02

3 The future proof solution: Using draftstream and Carbonate Solutions de-gassing technology, beer can now be distributed via one-way light weight Bag-in-Box distribution systems. This enables stackable 20 litre Beer-in-Boxes, improving stock management, reduces wastage and eradicates keg theft whilst removing the need for high numbers of kegs in the supply chain and sterilisation on return. In particular Beer-in-box also opens up export markets where kegs are not a viable option due to the added expense of returning kegs The beer is brewed, fermented and stored as usual Before filling the CO2 content is reduced to no more than 1g per litre The beer is filled into 20 litre aseptic bags. The boxes are palletised, maximising 1,200 litres per pallet The beer is linked to the python line and carbonated prior to dispense via draftstream Cutting-edge technology and packaging Carbonate Solutions has a strategic partnership in place with Rapak part of DS Smith Group. DS Smith operates out of 34 countries worldwide with a turnover of some 4bn. DS Smith are industry leaders in Bag in Box technology which is already a well-established system for transporting liquids. It is estimated in 2014 some 550 million bags were used across Europe with a Global market of some 1.2bn packages each year. Now there is the technology for re-gassing beer on retail premises this packaging solution can be exploited to the full. The advanced process of de-gassing the beer at the brewery prior to packing in no way adjusts any of the flavours or alcohol content of the beer thereby making the end product identical to the kegged alternative. The draftstream system has also been designed to be fully compatible with industry standard cooling equipment, python lines and beverage pumps making the installation a relatively straight forward exercise. 03

4 Key advantages of our technology:- High Cost Saving Reducing the amount of capital tied up in packaging for the industry. At present 8 million kegs at 120 per keg represents 960m tied up in working capital in the UK supply chain alone Light weight, non-pressurised packaging Reducing the amount of space required to store containers in the supply chain 30% more beer can be transported on a pallet with beer in a box against kegs. Potential to save 70m per year of lost kegs. Longer shelf life for products and elimination of waste Reduction of problems caused by lack of availability of kegs during seasonal peaks Eliminates cleaning and sterilisation costs on returned containers A 20 litre Bag in Box costs only 2.5 each Environmental 100% recyclable Bag-in-Boxes can be locally disposed of via recycling (plastic and cardboard) rather than having to be returned to the brewery Eliminates high water used in cleaning kegs Light weight reducing carbon footprint in transportation. The EU Health & Safety regulations state a keg above 30 litres should not be handled by a single person. The 20 litre box is light enough to be readily handled by most able bodied staff. Usage of 20 litre Beer-in-box will allow containers to be rotated more often and will prevent wastage. Significantly reduce the carbon footprint for breweries. Each empty keg returned to the brewery contains on average litres of CO2/Mixed Gas, which is released to atmosphere. Less noise pollution. Clanging of kegs on delivery and collection in city centre locations causes regular problems for outlets. Quality Carbonating (and nitrogenating where stouts are concerned) at the point of dispense leads to fine blended gas/liquid and the retention of carbonation. Smaller volumes will allow sale of beer and cider in bars that do not have space for kegs but still want draft. Once the Bag is broached the shelf life is double that of a keg in cellar cooled environments. Un-broached the bag has a shelf life of 9-12 months. Gas free beer in the box is a more stable liquid than kegged and therefore less susceptible to effects of temperature fluctuations. Nitrogenation available for stouts with ability to easily adjust head size and nitrogen content if required. 04

5 Transport & Packaging Box Dimensions 385 X 243 X 243 (mm) Collation: 4 X 3 X 5 Pack Weight: 20.5Kg Pack Contents: 20 litres Units/Pallets: 60 Total Pallet Volume: 1,200 litres the equivalent of 24 X 50 litre kegs Cellar Storage efficiencies 05

6 Financial Advantages Example Annual Output: 30,000 hectolitres per annum Keg Capital Expenditure 1,380,000 1,150 kegs sold per week Keg Multiplier x10: 11, = 1,380,000 Additional running costs 736,000 Additional Annual Running Costs: Keg Return and Clean: 1,150 kegs per 10= 598,000 Keg 10% = 138,000 Total 736,000 Draftstream Annual Running Cost 475,000 Annual Bag in Box Packaging Costs 150, = 375,000 Annual Running cost of Carbonators x = 100,000 Kegging line Capital Expenditure also substantially more expensive than bag in box line 1 TRIP PACKAGING MORE VOLUME transported in each load WEIGHT SAVINGS 50litre keg weighs 63Kg BIB equivalent weighs 51Kg 06

7 For further information contact: Carbonate Solutions Ltd Tel:

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