Sino Imperial Craft Brewery, Heshan, Guangdong Province, China
Business plan:
Targeted production capacity: gradually increasing up to 100 000 hl/y
Production facility size: total: current 12000 m2 buildings on 1.6 ha industrial parcel, additionally will be build cold beer storage warehouse
Brewery location: building 48x72 m, 6 m ceiling plus 24x16 m barley storage/crushing area in A Building
Empty bottles storage area 50x60 meters on top of Building A
Brewery usage and expansion plan:
1. start up operations in 24 x24 m, 6 m ceiling room, Section A, Building B production up to 2000 liters a day, 4hl system with 10hl fermenters/storage tanks
2. purchasing and installing 30hl brewing system or larger
3. separation brewery from fermentation area - moving fermentation/lagering to Section B, Building B, size 48 x 24 m, 6 m ceiling
4. install packing/bottling equipment in Section C, Building B: 48x24 m, 6 m ceiling room
5. Build Building D - 4-story high cold storage warehouse on empty lot (2 story below ground level, 2 above) - lot size lot 50x32 m,
Market:
China beer output will still keep growing at a rate of around 5% during the 11th Five-year period despite of the large cardinal number. And due to the adjustment of the product structure, the development of the rural market as well as the gradually orderly market competition, the beer price will rise and so does the profit-making ability.
Currently, the per capita beer consumption in China has been near to 22 liters, but it is only about 10 liters in the central and western regions, and it is less than 5 liters in the rural areas with over 800 million populations. However, the present average level in the world is 30 liters, which is even more than 80 liters in the Occident countries. Moreover, the per capita beer consumption in Czech, Ireland, Germany have exceeded 159 liters, 135 liters and 117 liters respectively while that in China is merely 1/8 of Czech, 1/4 of America and 40% of Japan. If the per capita beer consumption in China reaches the international level (30 liters), the production scale would surge to 40 million tons with over RMB 100 billion sales revenues.
As China becomes the largest beer production country and the most important consumer market in the world, the foreign capitals have started enlarging the investment in Chinese market. The campaign of the world three giants in China has aroused the wide attention in the field. China beer enterprises will enter an international competition era in national market, which will focus on brand, strategy and capital instead of product, quality and service.
Nowadays, the integration trip in China beer industry is just set sail but it will be accelerated due to the entry of large number of foreign capitals, especially the speeding-up M & A and reorganization from multi-national beer corporations. The foreign-owned brewers have shared some of Chinese high-end beer markets since two years ago, and more and more foreign well-known brewers are expected to enter into Chinese market via M & A and integration in order to compete for shares in China beer market. Some enterprises will target at high-and medium-end markets and then dominate the medium-end market eventually.
As the standardization of the competition, more and more enterprises lacking the survival abilities will be eliminated, meanwhile, the successive entry of foreign capitals will have undoubtedly intensified the resources integration inside beer industry, which aims to make superior enterprises larger and more powerful and to integrate those less competitive medium-small enterprises.
From Business Week:
"Most international beer companies—including Anheuser Busch (BUD; S&P credit rating, A)—have invested in the Chinese beer market during the past few years, with the goal of building a national brand and distribution network. Still, the price of beer remains low, although the relatively affluent urban consumers are becoming more aware of brands, because the country's populous rural poor are extremely price-conscious. This will make the goal of building a national brand more difficult to fund internally given the expected significant amount of marketing investments needed. Although China holds boundless potential, foreign brands need to find the right strategy to be successful in this challenging domestic beer market. We expect further investments in China and that multinational beer companies will continue to focus on improving mix, specifically the premium beer category, which is expected to continue to grow faster than cheaper beers as consumers trade up to branded offerings."
New Focus in Beverage and Brewery Industries - China Drinktec 2008 Gratifies Technology NeedsChina Daily Article, Local consumption: Resources
"To fend off international giants from gobbling up Chinese market share, local beer makers need to produce profitable beers aimed at the high-end market.
There's no doubt the local premium beer market is the key to long-tern growth: profits from one bottle of high-end beer are over 10 times of that of a low-end substitute.
Additionally, market size is growing rapidly. It's estimated that by the end of 2010, China will have the largest middle-class in the world at over 490 million.
Public entertainment venues, including KTV, cafs and Western-style restaurants and bars, are the hottest sellers of premium beers. Take Beijing's many bars, for example. There are about 500 bars in the capital, dotted around Sanlitun, Houhai, Chaoyang Park and Weigongcun.
A recent study shows about 70 percent of beer consumption takes place in bars.
Local brands can eventually succeed through strategic and innovating marketing campaigns. After all, there is little difference between the brewery techniques of local and global brands.
In terms of branding, local brewers should promote unique taste, top-quality packaging and novelty brand names. Marketing initiatives should be consistent and comprehensive.
Prices should be set at the average premium level, or offered at a higher price than international brands to draw consumers' attention.
Setting up at bars that only serve local brands' high-end beers is another effective practice, although it is costly. From a long-term perspective, the practice will drive profits and brand image as well.
Lastly, local manufactures should be trendsetters and create innovate lifestyle concepts whenever launching a new product.
How to Produce High Quality BeerProcess of Brewing
According to the German
Purity Law, the natural components of beer are:
- water,
- malt
- hops
- brewer’s yeast.
Phases of Beer Production
Milling
The malt, produced from special brewer’s barley, has to be grinded in
a malt-mill (two or four roller mill).
Mashing
In the mash- and wortkettle the grinded malt is mixed with water. The
unsoluted starch is transformed into malt-sugar by natural enzymes contained
in the malt and is soluted. This „sweet“ solution is called wort. .
Lautering
The solid parts of the malt, the so-called spent grains, are separated
in the lauter tun. This filtration process is called lautering. The clear wort
and the spargings (washing of the spent grains cake) are pumped into the wort
kettle.
The spent grains are valuable fodder, which can be sold to local farmers.
Wort Boiling
The lautered wort is boiled with hops for about 90 minutes. .
The sweetness of the maltsugar and the bitterness of the hop, blended in an
adequate proportion, give the beer its big taste.
The removing of the hot break in the whirlpool
The protein particles, which coagulate during wort boiling, are
separated in the whirlpool.
Wort-cooling
The finished wort is cooled down with a plate-cooler from boiling
temperature to about 6°C within more or less an hour.
Fermentation
In the fermentation cellar, brewer’s yeast is added to the cooled wort,
causing the maltsugar to transform into alcohol and carbon dioxide. This
fermentation process takes approximately one week, at temperatures ranging
from 6 °C to 10 °C.
The almost completely fermented wort is called green beer.
The green beer is now pumped into the storage cellar.
Storage and maturation
In the storage tanks, the green beer is stored at temperatures between
0°C and 3°C for about 3 weeks. In this phase, the rest of the malt sugar is
fermented, and the beer will mature. The carbon dioxide dissolves in the beer.
The natural turbid beer is now ready for consumption. The beer can either be
dispensed or it is, as customary in large breweries, filtrated and then filled
into casks or bottles.
Filtration
The yeasts and turbid components, such as, for example, proteins, are
taken out of the beer by means of filtration. The beer gets its typical
appearance and is stored in a pressure tank until it is racked.
Racking
Finally, the beer is filled into casks or bottles.
Duration of Beer Production
Brewhouse : cycletime about 8 to 9 hours
Process consists of five
phases:
Milling, Mashing, Lautering,
Wort Boiling and Wort Cooling
Fermentation cellar : about 7 days of fermentation
Storage cellar : about 3 weeks of storage and maturation
Starting point:
1.
Installing two-component brewhouse with 4-8 hl turning out quantity beer in 8 hours
Measurements: Length: 3,20 m, Width: 2.50 m, Height: 3.20 m
1. Brewhouse
2. Lauter tun/hot water tank
3. Mash tun/Kettle/Whirlpool
4. Control Panle
5. Wort Cooler
6. Steam Generator
7. Malt Mill
8. Grain Case
9. Auger
10.Cold Water Tank
11.Glycol chilling unit
12.Fermenter
13. Filter
14. Serving Tank
a. glycol
b1. cold water
b2. hot water
c1. hot wort
c2. cold wort
bigger 6-components brewhouse
2. Installing 3000 -7000 liters system
A. Maltcrusher
B. Boiler
C. Filter-tank
D. Whirlpool
E. Heat Exchanger
F. Jacketed tank
G. Ice water tank
H. Barm stuffer, (The yeasty foam that rises to the surface of fermenting malt and collection of yeast after fermenting)
I. Buck tank
J. Bactericide tank
K. Fermenters
L. Diatomaceous filter
M. Bright beer tank
N. Glycol pump
P1 Wort pump
P2 Jacketed pump
P3 Water supply pump
P4 Washer pump
P5 Filter pump
P6 Floating pump
a. Water
b. Steam
c. Wheat residue
d. Hop residue
f. Ice water
e.Cooling water
Production requirements
Industry Info, Standards, Statistics and Conversion Factors
Brewery Space Requirements:
Average production brewery with bottling=1.25-1.75 SF/BBL/Year
Minimum production brewery start-up size requirements: 5,000 square feet industrial space with 20' ceilings, loading dock, good truck access, 3 phase power, city gas main
Energy Use:
Brewpubs:
Electrical: 10-15 KWH/BBL
Chiller: 8-20 BTU /BBL
Natural gas: 1.3 therms/BBL
Ingredients (averages for all malt beers):
Water usage: 3.0-7.0 BBL per BBL of beer sold
Malt: 45-60 #/BBL
Hops: 0.5-0.8 #/BBL
Revenue:
Beer sold retail by the glass in a brewpub $700-$1,000 per BBL Beer sold retail to go in bottles $300-$375 per BBL. Beer sold wholesale in kegs to distributors: $120-$150 per BBL. Beer sold wholesale in bottles to distributors $145-$190 per BBL Beer sold wholesale in kegs to accounts $160-$200 per BBL. Beer sold wholesale in bottles to accounts $190-$250 per BBL
Brewpubs may become profitable with as
little as 250 BBLs of annual beer sales if it is all sold at retail. A brewpub
should target beer sales of at least 40% of gross sales. Production breweries
generally require 3,000-5,000 barrels of annual sales at wholesale to become
profitable. They can often benefit from a modest on site pub, depending on the
suitability of the location. A start-up production brewery may cost between
$125 and $350 per barrel of annual capacity to build depending on quality of
equipment, efficiency and other factors. Larger plants cost less.
Marketing and sales prospects
Production Stages and Grown
Contact us at jan@sinobrew.com