Chris White joins me this week to discuss how White Labs produces yeast for commercial brewers and home brewing. We discuss everything from his yeast bank to production and packaging. Subscribe on iTunes to Audio version or Video version or on Google Play Download the MP3 File– Right Click and Save As to download this […]
homebrew
Like it or not, online beer ratings have been one of the big drivers of craft beer over the last 20 years. As a brewery, you don't need to cater to them, but high scores can drive sales and excitement.
I spent a good deal of time on BeerAdvocate during my first few years of beer drinking (2005-2008). Reading other's reviews was beneficial for my palate and beer vocabulary. I reviewed a couple hundred beers, which gave me confidence to "review" my homebrew for this blog. However, there were aspects of trying to track down all the top beers that made it not entirely healthy. Whether it was fear of missing out on a new release, or the thrill of the catch outweighing the enjoyment of actually drinking the beer. I find how many new beers there are now freeing, there is no way to try them all, so I don't try!
Now that Untappd is the dominant player I'll glance at reviews (especially for one of our new releases), but I don't rate. It's rare to see a review that has much insight into the beer. Even the negative ones are rarely constructive. As an aside, I find it a bit weird when people in the local beer industry rate our offerings. Generally they are kind, but it just seems strange to publicly review "competing" products.
For four or five years I maintained a spreadsheet to track the beers I drank and those I wanted to try. I weighted the beers not just on their average BeerAdvocate score, but on the score relative to their style. That's to say I was more interested in trying a Czech Pilsner rated 4.2 more than a DIPA at 4.3 because Pilsners generally have lower scores. If all you drink are the top rated beers, you'll be drinking mostly the same handful of styles from a small selection of breweries. Why is that though?
Whether it is the BeerAvocate Top 100, Rate Beer's Top 50, and Untappd's Top Beers they all show a similar bias towards strong adjunct stouts, DIPAs, and fruited sours. I don't think the collective beer rater score aligns with what the average beer drinker enjoys the most or drinks regularly. It is a result of a collection of factors that are inherent to the sort of hedonistic rating system.
So what makes beers and breweries score well?
Big/Accessible Flavors
People love assertive flavors. Once you've tried a few hundred (or thousand) beers, it is difficult to get a "wow" response from malt, hops, and yeast. This is especially true in a small sample or in close proximity to other beers (e.g., tasting flight, bottle share, festival). So many of the top beers don't taste like "beer" they taste like maple, coconut, bourbon, chocolate, coffee, cherries etc. If you say there is a flavor in the beer everyone wants to taste it... looking at reviews for our Vanillafort, it is amazing how divergent the experiences are. Despite a (to my palate) huge vanilla flavor (one bean per 5 gallons), some people don't taste it.
Sweetness is naturally pleasant. It's a flavor our palates evolved to prefer over sour/bitter because it is a sign of safe calories. That said, too much can also make a beer less drinkable. I enjoy samples of pastry stouts, but most of them don't call for a second pour. Balance between sweet-bitter or sweet-sour makes a beer that calls for another sip, and a second pour.
Even the most popular IPAs have gone from dry/bitter to sweet/fruity. They are beers that are less of an acquired taste. More enjoyable to a wider spectrum of drinkers. I'm amazed how many of the contractors, delivery drivers, and other non-beer nerds who visit the brewery mention that they are now into IPAs.
If you want a high brewery average, one approach is simply to not brew styles that have low average ratings. That said, for tap room sales it can really help to have at least one "accessible" beer on the menu. For us that has always been a low-bitterness wheat beer with a little yeast character, and a fruity hop aroma. Their scores drag our average down, but it is worth it for us.
Exclusivity
The easier a beer is to obtain, the more people will try it. The problem is that you don't want everyone rating your beer. To get high scores it helps to apply a pressure that causes only people who are excited about the beer to drink (and rate it). This can take a variety of forms, but the easiest is a small production paired with a high price-point and limited distribution. You can make the world's best sour beer, but if it is on the shelf for $3 a bottle at 100 liquor stores you'll get plenty of people sampling it that hate sour beers. Even with our relatively limited availability we get reviews like "My favorite sour beer ever!" 1.5 stars... The problem with averages is that a handful of really low scores have a big impact.
I'll be interested to see how our club-exclusive bottles of sour beer rate compared to the ones available to the general public. The people who joined self-identified as fans of ours and sour beers. My old homebrewing buddy Michael Thorpe has used clubs to huge success at Afterthought Brewing (around #20 on Untappd's Top Rated Breweries). In addition to directing his limited volume towards the right consumers, clubs allow him to brew the sorts of weird/esoteric (delicious) beers that might not work on a general audience (gin barrels, buckwheat, dandelions, paw paw etc.).
As noted above some styles have higher average reviews than others. Simply not brewing low-rated styles goes a long way towards ensuring a high overall brewery average. Anytime I feel like one of our beers is underappreciated, I go look at the sub-4 average of Hill Farmstead Mary, one of my favorite beers. Afterthought recently announced a new non-sour brand, which will prevent beer styles with lower averages from "dragging down" the average for Afterthought.
I remember there being debate over the minimum serving size for a review on BeerAdvocate. I think a few ounces of a maple-bacon-bourbon imperial stout is plenty. However for session beers, can you really judge a beer that is intended to be consumed in quantity based on a sip or two? We don't do sample flights at Sapwood Cellars. We sell half-pours for half the price of full pours. Not having a flight reduces people ordering beers they won't enjoy just to fill out a paddle. It also means that more people will give a beer a real chance, drinking 7 oz gives more time for your palate to adjust and for you to get a better feel for the balance and drinkability. What kills me is seeing people review one of our sessions beers based on a free "taste."
Another option is physical distance. Most trekking to Casey, De Garde, or Hill Farmstead are excited to be going there and ready to be impressed. It helps that all three brew world-class sour beers, but I'm not sure the ratings would be quite as good if they were located in an easily-accessible urban center.
The trick to getting to the Top Beer lists is that you need a lot of reviews to bring the weighted average up close to the average review. So having a barrier, but still brewing enough beer and being a big enough draw to get tens of thousands of check-ins and ratings. Organic growth helps, starting small, and generating enough excitement to bring people from far and wide. Lines (like those at Tree House) then help to keep up the exclusivity, not many people who hate hazy IPAs are going to wait in line for an hour to buy the new release - unless it is to trade.
Shelf Stability/Control
Many of the best rated beers are bulletproof. Big stouts and sours last well even when not handled or stored properly. This means that even someone drinking a bottle months or years after release is mostly assured a good experience. Most other styles really don't store well and are at their best fresh.
Conversely, hazy IPAs are one of the most delicate styles. I think it's funny that some brewers talk about hiding flaws in a NEIPA. While you sure don't need to have perfect fermentation control to make a great hop-bomb, they are not forgiving at all when it comes to packaging and oxygen pick-up. That's partly the reason that the best regarded brewers of the style retail most of the canned product themselves. Alchemist, Trillium, Tree House, Tired Hands, Hill Farmstead, Aslin, Over Half etc. all focus on direct-to-consumer sales. That ensures the beer doesn't sit on a truck or shelf for a large amount of time before a consumer gets it. Consumers seem to be more aware than they once were (especially for these beers) that freshness matters.
Of course the margins are best when selling direct too, so any brewery that is able to sell cases out the door will. It can turn into a positive feedback loop, where the beer is purchased/consumed fresh which makes the beer drinker more likely to return. This worked well for Russian River, not bottling Pliny the Elder until there was enough demand that it won't sit on the shelf for more than a week.
Sure the actual packaging process (limiting dissolved oxygen) is important. But generally an OK job on a two-week-old can will win out over a great job on a two-month old can.
The ultimate is to have people drink draft at your brewery. That way you can control the freshness, serving temperature, glassware, atmosphere etc. That said, I notice the scores for our beers in growlers are usually higher than draft. I suspect that this is about self-selection, people who enjoyed the beer on draft are more likely to take a growler home and rate it well. It might also be a way for people to appear grateful to someone who brought a beer for them to try.
Reputation
This is one area where blind-judged beer competitions have a clear edge over general consumer ratings. When you know what you're drinking, that knowledge will change your perception. Partly it is subconscious, you give a break to a brewery that makes good beer. Or after a lot of effort to procure a bottle you don't want to feel like you wasted money/time. It can be more overt. I've had friends tell me that they'll skip entering a rating for our beer if it would be too low. I remember boosting the score of the first bottle of Cantillon St. Lamvinus I drank, it was so sour... but I didn't want to be that 22 year old who panned what people consider to be one of the best beers in the world.
I could also be cynical, but I can imagine someone buying a case of a new beer to trade and wanting to make sure they get good "value" by helping the score for the beer. Might be doubly true for a one-off beer with aging potential!
Sapwood Cellars has done pretty well in our first year. Out of more than 100 breweries in Maryland, we have the third-highest average score (4.06) on Untappd. That isn't even close to meaning that our beer is "better" than anyone below us though. In addition to being solid brewers, we're helped by our selection of styles (mostly IPAs and sours) and by selling almost all of our beer on premise. Hopefully that feeds a good reputation, which further drives scores as we continue to hone our process.
I spent a good deal of time on BeerAdvocate during my first few years of beer drinking (2005-2008). Reading other's reviews was beneficial for my palate and beer vocabulary. I reviewed a couple hundred beers, which gave me confidence to "review" my homebrew for this blog. However, there were aspects of trying to track down all the top beers that made it not entirely healthy. Whether it was fear of missing out on a new release, or the thrill of the catch outweighing the enjoyment of actually drinking the beer. I find how many new beers there are now freeing, there is no way to try them all, so I don't try!
Now that Untappd is the dominant player I'll glance at reviews (especially for one of our new releases), but I don't rate. It's rare to see a review that has much insight into the beer. Even the negative ones are rarely constructive. As an aside, I find it a bit weird when people in the local beer industry rate our offerings. Generally they are kind, but it just seems strange to publicly review "competing" products.
For four or five years I maintained a spreadsheet to track the beers I drank and those I wanted to try. I weighted the beers not just on their average BeerAdvocate score, but on the score relative to their style. That's to say I was more interested in trying a Czech Pilsner rated 4.2 more than a DIPA at 4.3 because Pilsners generally have lower scores. If all you drink are the top rated beers, you'll be drinking mostly the same handful of styles from a small selection of breweries. Why is that though?
Whether it is the BeerAvocate Top 100, Rate Beer's Top 50, and Untappd's Top Beers they all show a similar bias towards strong adjunct stouts, DIPAs, and fruited sours. I don't think the collective beer rater score aligns with what the average beer drinker enjoys the most or drinks regularly. It is a result of a collection of factors that are inherent to the sort of hedonistic rating system.
So what makes beers and breweries score well?
Big/Accessible Flavors
People love assertive flavors. Once you've tried a few hundred (or thousand) beers, it is difficult to get a "wow" response from malt, hops, and yeast. This is especially true in a small sample or in close proximity to other beers (e.g., tasting flight, bottle share, festival). So many of the top beers don't taste like "beer" they taste like maple, coconut, bourbon, chocolate, coffee, cherries etc. If you say there is a flavor in the beer everyone wants to taste it... looking at reviews for our Vanillafort, it is amazing how divergent the experiences are. Despite a (to my palate) huge vanilla flavor (one bean per 5 gallons), some people don't taste it.
Sweetness is naturally pleasant. It's a flavor our palates evolved to prefer over sour/bitter because it is a sign of safe calories. That said, too much can also make a beer less drinkable. I enjoy samples of pastry stouts, but most of them don't call for a second pour. Balance between sweet-bitter or sweet-sour makes a beer that calls for another sip, and a second pour.
Even the most popular IPAs have gone from dry/bitter to sweet/fruity. They are beers that are less of an acquired taste. More enjoyable to a wider spectrum of drinkers. I'm amazed how many of the contractors, delivery drivers, and other non-beer nerds who visit the brewery mention that they are now into IPAs.
If you want a high brewery average, one approach is simply to not brew styles that have low average ratings. That said, for tap room sales it can really help to have at least one "accessible" beer on the menu. For us that has always been a low-bitterness wheat beer with a little yeast character, and a fruity hop aroma. Their scores drag our average down, but it is worth it for us.
Exclusivity
The easier a beer is to obtain, the more people will try it. The problem is that you don't want everyone rating your beer. To get high scores it helps to apply a pressure that causes only people who are excited about the beer to drink (and rate it). This can take a variety of forms, but the easiest is a small production paired with a high price-point and limited distribution. You can make the world's best sour beer, but if it is on the shelf for $3 a bottle at 100 liquor stores you'll get plenty of people sampling it that hate sour beers. Even with our relatively limited availability we get reviews like "My favorite sour beer ever!" 1.5 stars... The problem with averages is that a handful of really low scores have a big impact.
I'll be interested to see how our club-exclusive bottles of sour beer rate compared to the ones available to the general public. The people who joined self-identified as fans of ours and sour beers. My old homebrewing buddy Michael Thorpe has used clubs to huge success at Afterthought Brewing (around #20 on Untappd's Top Rated Breweries). In addition to directing his limited volume towards the right consumers, clubs allow him to brew the sorts of weird/esoteric (delicious) beers that might not work on a general audience (gin barrels, buckwheat, dandelions, paw paw etc.).
As noted above some styles have higher average reviews than others. Simply not brewing low-rated styles goes a long way towards ensuring a high overall brewery average. Anytime I feel like one of our beers is underappreciated, I go look at the sub-4 average of Hill Farmstead Mary, one of my favorite beers. Afterthought recently announced a new non-sour brand, which will prevent beer styles with lower averages from "dragging down" the average for Afterthought.
I remember there being debate over the minimum serving size for a review on BeerAdvocate. I think a few ounces of a maple-bacon-bourbon imperial stout is plenty. However for session beers, can you really judge a beer that is intended to be consumed in quantity based on a sip or two? We don't do sample flights at Sapwood Cellars. We sell half-pours for half the price of full pours. Not having a flight reduces people ordering beers they won't enjoy just to fill out a paddle. It also means that more people will give a beer a real chance, drinking 7 oz gives more time for your palate to adjust and for you to get a better feel for the balance and drinkability. What kills me is seeing people review one of our sessions beers based on a free "taste."
Another option is physical distance. Most trekking to Casey, De Garde, or Hill Farmstead are excited to be going there and ready to be impressed. It helps that all three brew world-class sour beers, but I'm not sure the ratings would be quite as good if they were located in an easily-accessible urban center.
The trick to getting to the Top Beer lists is that you need a lot of reviews to bring the weighted average up close to the average review. So having a barrier, but still brewing enough beer and being a big enough draw to get tens of thousands of check-ins and ratings. Organic growth helps, starting small, and generating enough excitement to bring people from far and wide. Lines (like those at Tree House) then help to keep up the exclusivity, not many people who hate hazy IPAs are going to wait in line for an hour to buy the new release - unless it is to trade.
Shelf Stability/Control
Many of the best rated beers are bulletproof. Big stouts and sours last well even when not handled or stored properly. This means that even someone drinking a bottle months or years after release is mostly assured a good experience. Most other styles really don't store well and are at their best fresh.
Conversely, hazy IPAs are one of the most delicate styles. I think it's funny that some brewers talk about hiding flaws in a NEIPA. While you sure don't need to have perfect fermentation control to make a great hop-bomb, they are not forgiving at all when it comes to packaging and oxygen pick-up. That's partly the reason that the best regarded brewers of the style retail most of the canned product themselves. Alchemist, Trillium, Tree House, Tired Hands, Hill Farmstead, Aslin, Over Half etc. all focus on direct-to-consumer sales. That ensures the beer doesn't sit on a truck or shelf for a large amount of time before a consumer gets it. Consumers seem to be more aware than they once were (especially for these beers) that freshness matters.
Of course the margins are best when selling direct too, so any brewery that is able to sell cases out the door will. It can turn into a positive feedback loop, where the beer is purchased/consumed fresh which makes the beer drinker more likely to return. This worked well for Russian River, not bottling Pliny the Elder until there was enough demand that it won't sit on the shelf for more than a week.
Sure the actual packaging process (limiting dissolved oxygen) is important. But generally an OK job on a two-week-old can will win out over a great job on a two-month old can.
The ultimate is to have people drink draft at your brewery. That way you can control the freshness, serving temperature, glassware, atmosphere etc. That said, I notice the scores for our beers in growlers are usually higher than draft. I suspect that this is about self-selection, people who enjoyed the beer on draft are more likely to take a growler home and rate it well. It might also be a way for people to appear grateful to someone who brought a beer for them to try.
Reputation
This is one area where blind-judged beer competitions have a clear edge over general consumer ratings. When you know what you're drinking, that knowledge will change your perception. Partly it is subconscious, you give a break to a brewery that makes good beer. Or after a lot of effort to procure a bottle you don't want to feel like you wasted money/time. It can be more overt. I've had friends tell me that they'll skip entering a rating for our beer if it would be too low. I remember boosting the score of the first bottle of Cantillon St. Lamvinus I drank, it was so sour... but I didn't want to be that 22 year old who panned what people consider to be one of the best beers in the world.
I could also be cynical, but I can imagine someone buying a case of a new beer to trade and wanting to make sure they get good "value" by helping the score for the beer. Might be doubly true for a one-off beer with aging potential!
Sapwood Cellars has done pretty well in our first year. Out of more than 100 breweries in Maryland, we have the third-highest average score (4.06) on Untappd. That isn't even close to meaning that our beer is "better" than anyone below us though. In addition to being solid brewers, we're helped by our selection of styles (mostly IPAs and sours) and by selling almost all of our beer on premise. Hopefully that feeds a good reputation, which further drives scores as we continue to hone our process.
The excitement over hazy/NE IPA is the best thing that has happened for local breweries in a long time. They are expensive to brew, difficult to package, a nightmare to distribute long distances, and get beer drinkers excited! When we put a juicy Double IPA on tap it flies. Our recent 7-barrel-yield of Snip Snap lasted less than three days, while an IPA might last three weeks, and a pale ale five. Having a beer that draws increases growler sales, and helps sell all of our other beers as people end up trying other similar beers when they come in.
10 bbls – Pillowfort
$484 – 2-row
$137 – Malted Oats
$40 – Chit Malt
$50 – Milling Fee
$11 – Glucose
$.80 - Whirlfloc
$.06 - Zinc Sulfate Heptahydrate
$1 – Calcium Chloride
$1 – Gypsum
$.25 – Epsom Salt
$2.00 – 350 ml 75% Phosphoric Acid
$125 – Liquid yeast
$150 – Dry yeast
$77 – Columbus
$99 – Centennial
$396 – Citra
$264 – Azacca
~$100 – CO2/Gas/Electric/Chemicals
($1950/batch - $1.11/pour)
Let’s say we put more effort into yeast management and that gives us confidence to reuse the yeast for 20 batches. Bringing the proportional cost down from $125 to $25 per batch. The net savings to us would be $.05 per pour. What if we moved to a silo for 2-row, and cut our base malt cost down to a third and added a mill? $.14 per pour. That would make Pillowfort ~$.92/pour. Granted these recurring costs add up over the course of a year and both might yield improvements to the consistency and quality of our beer. But selling just one 1/2 bbl keg to a bar, even charging $250, loses us more money per batch then we’d save from making those moves. It also speaks to how important yield on these heavily dry-hopped beers is.
Most of our IPAs and DIPAs work out to $100-150 per ½ bbl keg. Self-distributing these beers for $200-250 there would be no way to make enough to cover rent, pay ourselves, and fund expansion. However, being a retailer of our own beers means we get $800-900 for that same keg sold by the glass and growler. It makes sense for us to charge a reasonable price ($7-8 for a 14 oz pour in a 17 oz glass) and have consumers return rather than charge a dollar or two more and end up having to self-distribute kegs (with the added effort).
When we do send kegs out, we try to get as much of a push out of it as we can (fests, tap-takeovers, beer dinners etc.). We don't pay for any traditional advertising, but we view the "losses" from self-distributing as a form of marketing. That also means not always sending beer to the same bars, as we want people to feel like they have to come to us to try our beers regularly.
Most bars use a flat percentage markup to price their draft. If a beer costs twice as much for them to purchase, they’ll charge twice as much to the consumer. That means that they’ll make a much larger dollar-per-ounce profit on more expensive beers. The same isn’t true at most breweries, an IPA with Nelson Sauvin or Galaxy is easily twice as expensive as a session wheat beer (especially considering the lower yield with high dry-hop rates), but we don’t double the price. Still, charging $7 for IPA and $6 for the session wheat makes the IPA more profitable per pour. When you visit a brewery and buy beer, you’re allowing them to spend more money on the ingredients and make better beer. Not to mention that the brewery will care more about their beer and have better control over the product.
Overhead
After ingredient cost, our next biggest expense is rent. Scott and I debated where to open and toured spaces with a wide range of looks and costs. While a beautiful rustic plot with room for outdoor events and a small orchard was appealing… either running on a septic or paying hundreds of thousands of dollars for a municipal sewer connection was not. Conversely, opening in a vibrant downtown with plenty of foot traffic would have meant easier retail sales, but would have tripled our rent. Brewing is a space-intensive manufacturing business (especially with barrel aging), it is difficult for me to justify paying $30+ sq ft for the parts of the business that aren’t customer facing.
If we are able to brew enough to outstrip tasting room demand, we’ll look into opening a small taproom someplace other than an industrial park. For the time being, our location is close enough to residential for the tasting room and inexpensive enough for 4,000 sq ft of production. Luckily the power of Google Maps, Untappd, and social media has been enough for us to draw people in.
In addition to the ability to sell beer by the glass, a tasting room opens up the way for merchandise sales, private events, packaged beer, and even food sales (working on that now). It has been essential for us to have a space and offerings that attract customers, even those who aren’t beer nerds. A fantastic staff, and enough of them working for short waits also improves the customer experience.
Salaries are the third big expense. Scott and I have done 100% of the brewing, tank cleaning, kegging, and keg washing up to this point. Financially speaking, our labor has been free, but we certainly could have kept our day jobs and paid less-per hour than our lost wages to hire brewers and cellar-people. That said, it didn’t seem right to trust something we’d worked so hard for to other people. As I learned from consulting, the people who are physically there have the biggest effect on the results. We’ll be looking to hire someone in the brewhouse soon, but we’re still trying to figure out what the role will be (cleaning and cellar duties, or someone who already has the skill-set to be a lead brewer eventually). We were willing to pay for front-of-house, as that is where we didn’t have experience (or the time to learn).
Other Income Streams
I posted about Brewery Clubs a few months ago. As a brewery that didn’t take on outside loans or investors, the extra money we brought in from club sales was essential. It gave us the breathing room to buy more expensive equipment, ingredients, not to mentions barrels for beers we won’t sell for months or years, and dump most of a batch that we didn’t love. Padding in the bank account helped with our sleep those first couple months too.
We’re now “paying” some of that money back. We made it through the club holiday events, for which we created 16 sixtels of variants that we didn’t sell a drop of. Not to mention paid employees to work (and at $15 an hour as tipping was light without tabs). Most of that cost was in our time, but we’ll continue to incur costs as we give bottles, decanter baskets (below), and events that club members paid for last year. Not only do we want to ensure that customers (and many friends) are happy they joined, we’d like to over-deliver so many consider re-upping for 2020!
The rest of this year our biggest focus will be on packaging. Direct sales of canned and bottled beer should give us the chance to increase total revenue, but it will also lower our per-ounce revenue. While many people are willing to pay $8 for a 14 oz pour of DIPA... $5 for a 16 oz can of the same DIPA is about the top of the market. Cans have higher costs associated with them as well, both in terms of labor and materials (especially when you don't own a canning line). That really slims down the margins, and will dictate which beers are more likely to be canned (e.g., Pillowfort with Azacca rather than Snip Snap with Galaxy). The most important thing for us will be avoiding turning draft sales into can sales. Ideally cans are an add-on to tabs or an additional trip for a release rather than a replacement for draft consumption and growlers.
What makes sense for a brewery will depend on the types of beer they brew and their goals as a company. If you want to be a large production brewery, it may make sense to start fighting for draft accounts early. We don’t have any resources dedicated to outside sales, in fact we turn down most offers to put our beer on tap. We’d rather have an excess of demand, and be in strong position rather than fight for a limited number of tap handles with an ever-increasing number of breweries.
Having the huge catalog of homebrew recipes between the two of us has been a big advantage too. On Saturday we tapped a scaled-up version of Atomic Apricot. The price difference on the apricot puree was particularly stark, $1.71 per pound at the commercial scale vs. $7.84 for the same product (Oregon Fruit/Vintners Harvest). I haven't been doing much homebrewing or test batch brewing so most of my social media posting has moved to the Sapwood Cellars Facebook and Twitter accounts (Scott does Instagram because I usually avoid posting from my phone).
Here is a graph of the scores of 13 of our hoppy beers (pale ales, IPAs, and DIPAs) showing the Untappd score compared to the ABV. The formula for the trend line is y = 3.2008+.1392*x. That suggests if we brewed a 0% ABV hoppy beer it would score a 3.20 and to get a score of 5 would require 14.31% ABV. The R-squared value of the correlation is .71, so the most important factor in the consumer's opinion of our hoppy beers is strength (granted that typically comes with a higher dry hopping rate, sweetness etc.).
Driving business to your tasting room is job #1 for a small brewery because that is where the profit is highest. When you buy a beer at a bar or restaurant, most of the money goes to them rather than the brewery. While a ½ bbl keg of a pale ale might sell to a bar for $150-175 (a portion of which might go to a distributor), at even $5 pint the bar makes $620 in revenue. At our scale, it is almost impossible to make a profit only selling beer at wholesale. It requires a tight reign on expenses with a premium price point, not to mention low overhead.
It is no coincidence that local brewery booms seem to follow when a state or city allows production breweries to serve/retail their own beer. In the case of Maryland this has created backlash from distributors, and a lesser extent bars and liquor stores who see more consumers cutting them out.
It is no coincidence that local brewery booms seem to follow when a state or city allows production breweries to serve/retail their own beer. In the case of Maryland this has created backlash from distributors, and a lesser extent bars and liquor stores who see more consumers cutting them out.
Ingredient Cost
We aren’t doing a great job controlling ingredient costs. We don’t reuse our yeast nearly as much as we "should" (3-4 batches per pitch), we pay as much as $35/lb for hops that are difficult to get on the spot market, we buy our malt pre-milled by the bag, we use expensive “real” ingredients for our variants (and usually don’t up-charge over the base beers) etc. That said, having a tasting room that is busy covers all of those sins.
We aren’t doing a great job controlling ingredient costs. We don’t reuse our yeast nearly as much as we "should" (3-4 batches per pitch), we pay as much as $35/lb for hops that are difficult to get on the spot market, we buy our malt pre-milled by the bag, we use expensive “real” ingredients for our variants (and usually don’t up-charge over the base beers) etc. That said, having a tasting room that is busy covers all of those sins.
10 bbls – Pillowfort
$484 – 2-row
$137 – Malted Oats
$40 – Chit Malt
$50 – Milling Fee
$11 – Glucose
$.80 - Whirlfloc
$.06 - Zinc Sulfate Heptahydrate
$1 – Calcium Chloride
$1 – Gypsum
$.25 – Epsom Salt
$2.00 – 350 ml 75% Phosphoric Acid
$125 – Liquid yeast
$150 – Dry yeast
$77 – Columbus
$99 – Centennial
$396 – Citra
$264 – Azacca
~$100 – CO2/Gas/Electric/Chemicals
($1950/batch - $1.11/pour)
Let’s say we put more effort into yeast management and that gives us confidence to reuse the yeast for 20 batches. Bringing the proportional cost down from $125 to $25 per batch. The net savings to us would be $.05 per pour. What if we moved to a silo for 2-row, and cut our base malt cost down to a third and added a mill? $.14 per pour. That would make Pillowfort ~$.92/pour. Granted these recurring costs add up over the course of a year and both might yield improvements to the consistency and quality of our beer. But selling just one 1/2 bbl keg to a bar, even charging $250, loses us more money per batch then we’d save from making those moves. It also speaks to how important yield on these heavily dry-hopped beers is.
Most of our IPAs and DIPAs work out to $100-150 per ½ bbl keg. Self-distributing these beers for $200-250 there would be no way to make enough to cover rent, pay ourselves, and fund expansion. However, being a retailer of our own beers means we get $800-900 for that same keg sold by the glass and growler. It makes sense for us to charge a reasonable price ($7-8 for a 14 oz pour in a 17 oz glass) and have consumers return rather than charge a dollar or two more and end up having to self-distribute kegs (with the added effort).
When we do send kegs out, we try to get as much of a push out of it as we can (fests, tap-takeovers, beer dinners etc.). We don't pay for any traditional advertising, but we view the "losses" from self-distributing as a form of marketing. That also means not always sending beer to the same bars, as we want people to feel like they have to come to us to try our beers regularly.
Most bars use a flat percentage markup to price their draft. If a beer costs twice as much for them to purchase, they’ll charge twice as much to the consumer. That means that they’ll make a much larger dollar-per-ounce profit on more expensive beers. The same isn’t true at most breweries, an IPA with Nelson Sauvin or Galaxy is easily twice as expensive as a session wheat beer (especially considering the lower yield with high dry-hop rates), but we don’t double the price. Still, charging $7 for IPA and $6 for the session wheat makes the IPA more profitable per pour. When you visit a brewery and buy beer, you’re allowing them to spend more money on the ingredients and make better beer. Not to mention that the brewery will care more about their beer and have better control over the product.
Overhead
After ingredient cost, our next biggest expense is rent. Scott and I debated where to open and toured spaces with a wide range of looks and costs. While a beautiful rustic plot with room for outdoor events and a small orchard was appealing… either running on a septic or paying hundreds of thousands of dollars for a municipal sewer connection was not. Conversely, opening in a vibrant downtown with plenty of foot traffic would have meant easier retail sales, but would have tripled our rent. Brewing is a space-intensive manufacturing business (especially with barrel aging), it is difficult for me to justify paying $30+ sq ft for the parts of the business that aren’t customer facing.
If we are able to brew enough to outstrip tasting room demand, we’ll look into opening a small taproom someplace other than an industrial park. For the time being, our location is close enough to residential for the tasting room and inexpensive enough for 4,000 sq ft of production. Luckily the power of Google Maps, Untappd, and social media has been enough for us to draw people in.
In addition to the ability to sell beer by the glass, a tasting room opens up the way for merchandise sales, private events, packaged beer, and even food sales (working on that now). It has been essential for us to have a space and offerings that attract customers, even those who aren’t beer nerds. A fantastic staff, and enough of them working for short waits also improves the customer experience.
Salaries are the third big expense. Scott and I have done 100% of the brewing, tank cleaning, kegging, and keg washing up to this point. Financially speaking, our labor has been free, but we certainly could have kept our day jobs and paid less-per hour than our lost wages to hire brewers and cellar-people. That said, it didn’t seem right to trust something we’d worked so hard for to other people. As I learned from consulting, the people who are physically there have the biggest effect on the results. We’ll be looking to hire someone in the brewhouse soon, but we’re still trying to figure out what the role will be (cleaning and cellar duties, or someone who already has the skill-set to be a lead brewer eventually). We were willing to pay for front-of-house, as that is where we didn’t have experience (or the time to learn).
Other Income Streams
I posted about Brewery Clubs a few months ago. As a brewery that didn’t take on outside loans or investors, the extra money we brought in from club sales was essential. It gave us the breathing room to buy more expensive equipment, ingredients, not to mentions barrels for beers we won’t sell for months or years, and dump most of a batch that we didn’t love. Padding in the bank account helped with our sleep those first couple months too.
We’re now “paying” some of that money back. We made it through the club holiday events, for which we created 16 sixtels of variants that we didn’t sell a drop of. Not to mention paid employees to work (and at $15 an hour as tipping was light without tabs). Most of that cost was in our time, but we’ll continue to incur costs as we give bottles, decanter baskets (below), and events that club members paid for last year. Not only do we want to ensure that customers (and many friends) are happy they joined, we’d like to over-deliver so many consider re-upping for 2020!
The rest of this year our biggest focus will be on packaging. Direct sales of canned and bottled beer should give us the chance to increase total revenue, but it will also lower our per-ounce revenue. While many people are willing to pay $8 for a 14 oz pour of DIPA... $5 for a 16 oz can of the same DIPA is about the top of the market. Cans have higher costs associated with them as well, both in terms of labor and materials (especially when you don't own a canning line). That really slims down the margins, and will dictate which beers are more likely to be canned (e.g., Pillowfort with Azacca rather than Snip Snap with Galaxy). The most important thing for us will be avoiding turning draft sales into can sales. Ideally cans are an add-on to tabs or an additional trip for a release rather than a replacement for draft consumption and growlers.
What makes sense for a brewery will depend on the types of beer they brew and their goals as a company. If you want to be a large production brewery, it may make sense to start fighting for draft accounts early. We don’t have any resources dedicated to outside sales, in fact we turn down most offers to put our beer on tap. We’d rather have an excess of demand, and be in strong position rather than fight for a limited number of tap handles with an ever-increasing number of breweries.
Having the huge catalog of homebrew recipes between the two of us has been a big advantage too. On Saturday we tapped a scaled-up version of Atomic Apricot. The price difference on the apricot puree was particularly stark, $1.71 per pound at the commercial scale vs. $7.84 for the same product (Oregon Fruit/Vintners Harvest). I haven't been doing much homebrewing or test batch brewing so most of my social media posting has moved to the Sapwood Cellars Facebook and Twitter accounts (Scott does Instagram because I usually avoid posting from my phone).
Brewing beer at home changed the course of my life. At first it was merely a fun way to explore my drink of choice, and an excuse to hang out with friends. As time passed it became a larger part of my life, a side-hustle, a reason to travel, altered who I am. I always hated public speaking… until I figured out that I’m engaging when I care about the material. I was never passionate about reading, researching, and writing, until they meant I could learn to brew better beer and share my passion. I met many of my friends at homebrew club meetings, through this blog, and homebrewing forums. I worked a boring government desk job for 12 years, until brewing allowed me to open a business!
That’s why I'm sad that homebrewing is on the decline in America. I see it at DC Homebrewer’s meetings, where there aren’t nearly as many fresh faces as there were five years ago. The closures of retailers, like the recent announcement from Love2Brew. The surveys from the American Homebrewer’s Association gives hard numbers: from 1.2 million homebrewers in 2013, to 1.1 million in 2017.
Anecdotally over the last 30 years, American homebrewing has experienced three similar dips. Roughly the early-1990s, early-2000s, and the last few years. These coincide with three pivotal moments in commercial beer availability.
By the early 1990s most parts of the country had a selection of bottled craft beer from the likes of Sierra Nevada, Boston Beer, not to mention a few local breweries. No longer were beer drinkers limited to macro lagers and stale impotrs, because hoppy pale ales, malty browns, and roasty stouts were available coast-to-coast. I've met a few former homebrewers who thought that was enough selection to make homebrewing superfluous. There were still plenty of people who wanted to drink a wider range of styles though, and that still meant brewing their own.
A decade later with the opening and expansion of breweries like Allagash, Dogfish Head, New Belgium and hundreds more, the selection and availability of craft beer had exploded. You could find wit, kolsch, imperial stouts, apricot pale, IPA and a multitude more everywhere. Most cities had stores where you could pick from hundreds if not thousands of bottles. Again, some homebrewers didn’t see the need to keep brewing when they could drink a solid example of pretty much any style. Still though, many homebrewers wanted greater variety, unique flavors, and ua-fresh beer.
Now we’re in another slide. With more than 6,000 breweries spread across the country, most Americans can take a short drive to visit a different brewery tasting rooms every week for a few months without repeating. Not only that, but the old model of four core beers, four seasonals, and a couple special releases is gone. Many breweries are producing 50 or more beers each year. The variety is staggering, and again many former homebrewers are happy to reduce their risk/effort and sample as many new beers as they desire. Not only is homebrewing suffering, but so are many of the breweries from those previous waves… Smuttynose, Green Flash etc.
In the chart below, the red line represents Google searches for "Brewery" the blue is "Homebrewing." December 2008 is the closest they have been (29 to 13), while July 2018 was the furthest (100 to 5). That's to say that while search interest in breweries has more than tripled over the last ten years, during the same time interest in homebrewing has dropped in half.
Where does homebrewing go from here?
There have always been different types of homebrewers, different reasons they brew. There will always be homebrewers. Those who brew not to save money, or drink the “best” beer, but who love the process. Those who are passionate about recipe design, microbiology, botany, community. engineering, culinary techniques, and experimentation. For them craft beer is a source of inspiration, but not a replacement for the hobby!
I don't view automated homebrewing systems as a threat to traditional homebrewing or a big boon for the hobby. If I hear one more new product that bills itself as the “Keurig” of beer… I’m going to lose it! It isn’t even like Keurig is synonymous with high quality coffee. I just don’t see any product that makes brewing that easy gaining a strong foothold because brewing beer involves more care than coffee and to-the-minute freshness isn't as important. You can buy a six pack at the store for less than it takes to brew these, and enjoy a bottle each night. The automated systems will always make beer that isn't as good as commercial, at a higher price-point. Not that automated wort production isn't appealing (and useful) for homebrewers looking to devote less time to the process.
If this time is like the previous two lulls, homebrewing is due for another bounce. Maybe the continual push for novelty in craft brewing, extra-bold flavors, and lack of true originality turns people off. Lack of quality, high prices, poor quality control, beer that sits too long before being sold… honestly now that I know how good IPA tastes within a month of brewing, I rarely buy a six-pack off the shelf. Hopefully as more consumers become accustomed to really fresh beer at tasting rooms, they get interested in brewing it for themselves! Maybe the greater number of people drinking craft beer simply gets more people interested in brewing.
The second option is decline. As quality beer becomes more accessible the price will be pushed down, making it an even more attractive option for marginal-homebrewers. Homebrewing becomes an even more specialized/nerdy hobby, and we lose out on the vibrancy that new hobbyists bring.
My best guess is that we're reaching stasis. There won't be a return the levels of excitement and engagement we saw ten years ago. There will still be plenty of people who drink craft beer, and try their hand at homebrewing, but only enough to replace all of the homebrewers who stop to drink craft beer or join the industry.
Homebrewing Matters
Drinking beer wouldn't have done the same thing for my life as homebrewing. An active engagement with brewing is the best way to really understand and appreciate beer. It caused me to learn and grow in areas that aren't really connected to beer or brewing. I understand that drinking a beer and checking in on Untappd is no-risk (I wrote a couple hundred reviews on BeerAdvocate), but it doesn't really lead to anything. Drinking beer is a diversion, brewing beer can change your life!
That’s why I'm sad that homebrewing is on the decline in America. I see it at DC Homebrewer’s meetings, where there aren’t nearly as many fresh faces as there were five years ago. The closures of retailers, like the recent announcement from Love2Brew. The surveys from the American Homebrewer’s Association gives hard numbers: from 1.2 million homebrewers in 2013, to 1.1 million in 2017.
Anecdotally over the last 30 years, American homebrewing has experienced three similar dips. Roughly the early-1990s, early-2000s, and the last few years. These coincide with three pivotal moments in commercial beer availability.
By the early 1990s most parts of the country had a selection of bottled craft beer from the likes of Sierra Nevada, Boston Beer, not to mention a few local breweries. No longer were beer drinkers limited to macro lagers and stale impotrs, because hoppy pale ales, malty browns, and roasty stouts were available coast-to-coast. I've met a few former homebrewers who thought that was enough selection to make homebrewing superfluous. There were still plenty of people who wanted to drink a wider range of styles though, and that still meant brewing their own.
A decade later with the opening and expansion of breweries like Allagash, Dogfish Head, New Belgium and hundreds more, the selection and availability of craft beer had exploded. You could find wit, kolsch, imperial stouts, apricot pale, IPA and a multitude more everywhere. Most cities had stores where you could pick from hundreds if not thousands of bottles. Again, some homebrewers didn’t see the need to keep brewing when they could drink a solid example of pretty much any style. Still though, many homebrewers wanted greater variety, unique flavors, and ua-fresh beer.
Now we’re in another slide. With more than 6,000 breweries spread across the country, most Americans can take a short drive to visit a different brewery tasting rooms every week for a few months without repeating. Not only that, but the old model of four core beers, four seasonals, and a couple special releases is gone. Many breweries are producing 50 or more beers each year. The variety is staggering, and again many former homebrewers are happy to reduce their risk/effort and sample as many new beers as they desire. Not only is homebrewing suffering, but so are many of the breweries from those previous waves… Smuttynose, Green Flash etc.
In the chart below, the red line represents Google searches for "Brewery" the blue is "Homebrewing." December 2008 is the closest they have been (29 to 13), while July 2018 was the furthest (100 to 5). That's to say that while search interest in breweries has more than tripled over the last ten years, during the same time interest in homebrewing has dropped in half.
Where does homebrewing go from here?
There have always been different types of homebrewers, different reasons they brew. There will always be homebrewers. Those who brew not to save money, or drink the “best” beer, but who love the process. Those who are passionate about recipe design, microbiology, botany, community. engineering, culinary techniques, and experimentation. For them craft beer is a source of inspiration, but not a replacement for the hobby!
I don't view automated homebrewing systems as a threat to traditional homebrewing or a big boon for the hobby. If I hear one more new product that bills itself as the “Keurig” of beer… I’m going to lose it! It isn’t even like Keurig is synonymous with high quality coffee. I just don’t see any product that makes brewing that easy gaining a strong foothold because brewing beer involves more care than coffee and to-the-minute freshness isn't as important. You can buy a six pack at the store for less than it takes to brew these, and enjoy a bottle each night. The automated systems will always make beer that isn't as good as commercial, at a higher price-point. Not that automated wort production isn't appealing (and useful) for homebrewers looking to devote less time to the process.
If this time is like the previous two lulls, homebrewing is due for another bounce. Maybe the continual push for novelty in craft brewing, extra-bold flavors, and lack of true originality turns people off. Lack of quality, high prices, poor quality control, beer that sits too long before being sold… honestly now that I know how good IPA tastes within a month of brewing, I rarely buy a six-pack off the shelf. Hopefully as more consumers become accustomed to really fresh beer at tasting rooms, they get interested in brewing it for themselves! Maybe the greater number of people drinking craft beer simply gets more people interested in brewing.
The second option is decline. As quality beer becomes more accessible the price will be pushed down, making it an even more attractive option for marginal-homebrewers. Homebrewing becomes an even more specialized/nerdy hobby, and we lose out on the vibrancy that new hobbyists bring.
My best guess is that we're reaching stasis. There won't be a return the levels of excitement and engagement we saw ten years ago. There will still be plenty of people who drink craft beer, and try their hand at homebrewing, but only enough to replace all of the homebrewers who stop to drink craft beer or join the industry.
Homebrewing Matters
Drinking beer wouldn't have done the same thing for my life as homebrewing. An active engagement with brewing is the best way to really understand and appreciate beer. It caused me to learn and grow in areas that aren't really connected to beer or brewing. I understand that drinking a beer and checking in on Untappd is no-risk (I wrote a couple hundred reviews on BeerAdvocate), but it doesn't really lead to anything. Drinking beer is a diversion, brewing beer can change your life!
My homebrewing-rate has slowed dramatically the last couple months, not coincidentally we brewed our first batch at the brewery around that time (House Saison brew day). Part of that is brewing 10 bbls about twice a week, the rest is how much time I spend at the brewery doing other stuff. My plan for The Mad Fermentationist is to keep up the same style of post, with recipes and tasting notes for occasional Sapwood Cellars beers. I'll still document homebrew batches when I can, mostly test batches or experiments with impractically weird ingredients.
The first beer I wanted to cover is my favorite of the initial four clean batches, Rings of Light. For those interested the name, is a subtle The Fellowship of the Rings reference: "They watched the pale rings of light round his lanterns as they dwindled into the foggy night." It is exactly the sort of beer I love drinking, moderate alcohol (4.8% ABV), but with a huge hop flavor and aroma and a surprisingly luscious mouthfeel. Luckily Untappd reviews have been pretty positive, and it is our tasting room's top seller so far!
You'll likely recognize most of the elements of the recipe as things Scott and I have been doing for years. Golden Naked Oats, Chit malt, Boddington's yeast (RVA Manchester), moderate-high chloride and sulfate, less expensive hops in the boil (Cascade and Columbus), and Citra dry-hopping. We added mid-late fermentation additions to several of our other batches, but this one was soft-crashed to 58F before dry hopping so we could harvest the yeast for re-pitching into an IPA (Cheater Hops) and DIPA (Uncontrollable Laughter).
The process tweaks have mostly been to account for the differences related to the physics of working at scale. For example, usually I'd add a small dose of hops at 15 minutes to up the bitterness, but in this case the extended contact after flame-out makes that unnecessary (between whirlpool, settling, and run-off near-boiling wort is in contact with hops for more than a hour). In fact, we added one barrel of cold water at flame-out to lower the whirlpool temperature to reduce isomerization. Beersmith 3 includes the capability to specify the average temperature of the wort during the whirlpool, still the estimate seems to be wildly higher than the perceived bitterness. I wonder if the hops settling, mixing with the proteins in the trub-cone slows the isomerization rate?
It has taken a little time to dial in our Forgeworks brew house. We achieved slightly lower efficiency and attenuation on this batch than expected for example. We've made a few mistakes and miscalculations along the way, but given neither of us had brewed frequently at a commercial scale I'm happy to report that things have been relatively smooth. Our biggest issues have been with the durability of the equipment itself. For example the rakes in the mash tun detached from the motor twice, and our burner shorted after a boil-over. What is taking the most effort to optimize is our cleaning and sanitation regimen.
Thanks to everyone who came out to our grand opening last weekend! I didn't expect as many fans of the blog to drive from an hour or more away to try the beers and say hello. Either Scott or I will be there most of the time we're open, so let us know! Happy to show you around and talk brewing. For those further away, I'm also running the brewery's Twitter and Facebook accounts for now (Scott took Instagram because I couldn't figure it out).
Rings of Light
Smell – Pleasantly mango-melon hop aroma. As it approaches room temperature I get a slightly toasty-vanilla-richness thanks to the yeast playing off the Golden Naked Oats. Otherwise a pretty clean/fresh aroma.
Appearance – Pleasantly hazy yellow, glowing in the right lighting. I guess we did an adequate job avoiding oxygen pickup during transfers and kegging as it hasn’t darkened! We certainly pulled some hop matter into the bright tank, but it mostly settled out and stayed behind when we kegged, as I don’t see any particulate in the pour. Head is really thick, but could have better retention.
Taste – I really love the flavor on this, really saturated with juicy hops. Similar to the aroma, the tropical flavors from the Citra dominate the Cascade and Columbus. We were surprised how hop-forward it was even before dry hopping (perhaps thanks to the deep kettle slowing the evaporation of the oils?). Bitterness is pleasant, but restrained. Well below the estimated 70+ IBUs, more like 40-50 to my palate.
Mouthfeel – Full bodied, especially for a sub-5% beer. That is thanks to the oats, and low attenuation (which allowed for more malt for the given alcohol). As usually the substantial texture of the head from the chit malt really enhances the perception of creaminess.
Drinkability & Notes – Glad this beer ended up as an early-fall release. It is a little full for a quenching summer pale ale, but it is perfect for temperate weather. The hops are well balanced, and provide enough interest to demand each additional sip. The malt mostly stays hidden, while providing adequate support.
Changes for Next Time – We’ve already got a new batch of this fermenting with the same grist and kettle-hops, although given the tweaks (higher original gravity and different yeast: Lallemand New England and S-04) it may receive a different name.
Recipe
Batch Size: 315.00 gal
SRM: 4.9
IBU: 73.7
OG: 1.052
FG: 1.018
ABV: 4.8%
Final pH: 4.54
Brewhouse Efficiency: 68%
Boil Time: 60 Mins
Fermentables
-----------------
75% - 495 lbs Rahr 2-Row Brewer's Malt
16.7% - 110 lbs Simpsons Golden Naked Oats
8.3% - 55 lbs Best Chit Malt
Mash
-------
Mash In - 60 min @ 153F
Hops
-------
11 lbs Cascade (Pellets, 7.20% AA) - Steep/Whirlpool 75.0 min
11 lbs Columbus (Pellets, 15.70% AA) - Steep/Whirlpool 75.0 min
22 lbs Citra (Pellets, 12.00% AA) - Dry Hop Day 10
Other
-------
40 g Whirlfloc G @ 15 mins
Water
-------
200 ml Phosphoric Acid 75% @ Mash
1.00 lb Calcium Chloride @ Mash
0.70 lb Gypsum (Calcium Sulfate) @ Mash
50 ml Phosphoric Acid 75% @ Sparge
Calcium | Chloride | Sulfate | Sodium | Magnesium | Carbonate |
120 | 150 | 100 | 20 | 5 | 100 |
Yeast
-------
RVA Manchester Ale #132
Notes
-------
Brewed 8/29/18
Collected 315 gallons of water.
All salts and 100 ml acid right after mash-in. Ran rakes for 15 minutes, started recirculation 10 minutes after mash in. After 10 min of recirculation, measured temp at 152.8F.
Measured mash pH at 5.42, add 50 mL more acid. 5.39, add 50 mL more acid. 5.34.
Sparge water 183F, pH 6.47 with acid addition - more next time
Start of boil with 11 bbls of 1.055 runnings.
Added 1 bbl of cold water at the start of the whirlpool. Combined temperature 196F, added hops.
Run-off started at 66F. .5L/min of O2 through in-line stone.
Ended up with a wort temperature of 64F. Set tank to to 66F. By the next morning the glycol chiller had popped the breaker and the tank was at 69F... Reset and lowered to 67F.
8/31 Raised set-point to 69F to ensure finish.
9/3 Fermentation appears nearly complete from lack of CO2 production. Tastes good, better hop aroma than expected. Up to 70F to ensure it is done before soft crashing.
9/6 Harvested yeast. Left blow-off open so no dissolved CO2.
9/7 Dry hopped with 22 lbs of Citra through the top port while running 25 PSI of CO2 and blow-off arm closed. Closed everything and add 5 PSI as head pressure.
9/8 Pushed 15 PSI through racking arm for 1 minute to rouse, 18 hours after dry hopping. Dropped temperature to 54F.
9/9 Pushed 15 PSI through racking arm for 1 minute. Dropped temperature to 50F.
9/10 Crashed to 36F.
9/12 Moved to bright tank. 3 L/min of CO2 set to 16 PSI got to ~11 PSI at 36 F. 2.6 volumes of CO2 prior to kegging.
9/15 Kegged, 17 kegs with the last almost full.
I get a commission if you buy something after clicking the links to MoreBeer/Amazon/Adventures in Homebrewing/Great Fermentations!
I, Pencil is a classic economics essay from 1958 by Leonard Read about the complexity of making a pencil. The iconic yellow #2 seems so simple, yet no one person could make it on their own (e.g., harvest the rubber, synthesis the polymers and pigments for the eraser, create the yellow paint, precisely cut the wood and graphite, mine and forge the metal band etc. ). The global economy doesn't have any person or group coordinating all of this activity, but to earn money people and companies fill niches, specialize, and compete to buy and sell in ways that creates things of immense complexity requiring the sum work of hundreds of people across continents so you can buy a pencil for $.25. This video gives a more hands-on view of what it takes to make a chicken sandwich when you don't buy anything from a supermarket.
It is tempting to say that beer isn’t like that. After all, each all-grain batch starts with the four basic ingredients and we do the rest… sure it would be a challenge to grow and malt barley, harvest and dry hops, isolate/propagate wild yeast, and haul water from a local stream, but what vessels would you use to boil/ferment? What about sanitizer, minerals, clarifiers, compressed CO2?
What follows is a high-level overview of what is required to brew a single batch of beer at Sapwood Cellars. Obviously, you could keep digging deeper into each one of these, peeling back layer-after-layer to the inputs of each input (e.g., the shoes that the hop harvester was wearing). I’ll arbitrarily stop where I lose interest. Needless to say though, the work of thousands in not millions of people goes into each of our batches. Scott and I just get the credit (or blame) because we're the ones at the end of the chain!
Ingredients
Water
Our water comes from Liberty Reservoir. From there it goes to Baltimore’s Ashburton water treatment plant. Baltibrew posted a nice series on the Baltimore water system. Luckily for us the existing minerals are mostly beneficial to the character of our beer. The carbonate is a bit higher than we’d like, but not by enough to require the waste of reverse osmosis.
Once pipes take it to the brewery it passes through a carbon filter to remove chlorine, and then an on-demand hot water heater. The fuel is natural gas piped into the brewery by BG&E (by way of fracking or older methods, and then refining). From there the water travels through a hose to our hot liquor tank where an electric element allows us to adjust the temperature. The electricity comes from a mix of fossil fuels, nuclear, and ~5% renewables.
To adjust the mineral content of the water, we add calcium chloride (from limestone-hydrochloric acid reaction or natural brine concentration) and calcium sulfate (harvested and refined from gypsum rock deposits). In addition, we add 75% phosphoric acid to adjust the pH of the water. Phosphoric acid is usually produced by combustion, hydration, and demisted from three ingredients: phosphorus, air, and water.
Grains
The grain we mash is a mixture of barley, wheat, oats, and rye depending on the beer. These are grown primarily on farms in North America and Europe. It is then soaked, sprouted, dried, and kilned by a maltster. The precise equipment required varies by malt and producer. In some cases it is a large industrial operation, in others the malt is still manually turned. The bulk of our base malt is Rahr brewer’s 2-row from Minnesota, but in our first order we also had sacks from Briess, Chateau, Simpsons, Crisp, Best etc. Most of the unmalted flaked grains (steamed and rolled to gelatinize their starches) are from Grain Millers.
We decided to hold-off on buying our own mill, to save the cost at the start… but after a few brews I can say a mill and auger are in our near future. We order our grains from Brewers Supply Group, which pre-mills the grain. We also occasionally add a few sacks to a Maryland Homebrew order from Country Malt.
Once we’re done with the now “spent” grain, they are picked-up by Keith of Porch View Farms. He feeds it to his animals as most of the carbohydrates are extracted into the wort, but proteins remain.
Hops
Our hops are grown throughout the higher latitudes of the globe, primarily the Pacific Northwest of the United States, but also Australia, Germany, and Czech Republic. The hops are first stripped from their bines, dried in an oast, and then baled. After selection, various lots are blended to create a consistent product and the hops are pulverized and pelletized. They are then vacuum-packed in mylar and stored cold to preserve their aromatics. Our hops primarily came from Hop Havoc, but we’re working on getting contracts for the upcoming harvest.
Yeast
Most of the yeast we’re using are the decedents of yeast that have been fermenting beer for hundreds or thousands of years. A couple hundred years ago their ancestors were part of a mixed-culture at breweries in England and Belgium, only to be lucky (and talented) enough to be isolated as a pure culture that gained success. Our Saccharomyces cerevisiae so far has come from RVA, Fermentis, and Lallemand for our “clean” beers. These needed to be isolated, propagated, and in some cases dried.
The sour and wild beers are too complex to track. They come from labs, bottle dregs, and a house culture. They may have come via a barrel, the breeze, an insect, or any number of other vectors into a brewery or labs. For example the Hanseniaspora vineae we are fermenting a hoppy sour for Denizen's Make It Funky festival came from Wild Pitch Yeast which isolated it from tree bark.
Fruit
We don’t have any beers far enough along for fruit, but we’re planning to source as much of it as we can directly from local farms and orchards. Most fruit is at its best when it is picked ripe and used quickly. I'm sure we'll use dried fruit, aseptic purees, juices, and freeze-dried fruits depending on quality, availability, and desired results as well. The first batch will probably be a tart saison on grape pumace (the pressed skins) from a local natural winery.
Other Consumables
Gas
Carbon dioxide is usually produced as a byproduct of some other activity (e.g., hydrocarbon processing). Our CO2 is stored in a 750 lb tank in a liquid state. We use it to carbonate and serve beer. It isn't economical at our scale to recapture the CO2 released by fermentation. Our supplier is Robert’s Oxygen.
As the air on Earth is 70% nitrogen it is usually concentrated with the use of a nitrogen generator. These rely on a membrane that allows nitrogen through. We need nitrogen to help push the beer through the long-lines from our walk-in to the tasting room (pure CO2 would lead to over-carbonation at those pressures). As the second most abundant gas in the atmosphere, oxygen generation uses similar technologies. We pump .5L/minute into the wort as it exits the heat exchanger, the yeast quickly uses it to create sterols for healthy cell walls when they bud. We get these two gases in large cylinders that are swapped out.
Chemicals
We need cleaners like caustic (sodium hydroxide) to remove organic deposits, and a phosphoric-nitric acid blend to remove inorganic beer stone and passivate the stainless steel. For sanitation we use iodophor for fittings in buckets, and peracetic acid for the tanks. These are made in a variety of industrial processes that I’m totally unaware of. Our chemicals are provided by Zep/AFCO.
Clarifier
Whirlfloc G helps proteins clump together in the last 15 minutes of the boil to be left behind. It is derived from Irish moss (seaweed) that is dried and granulated. As a vegan brewery, no gelatin or isinglass for us.
Barrels
Oak barrels start as oak trees. They are processed into planks, and then purchased by a cooperage which dries (either in a kiln or naturally). They are then assembled into barrels with metal hops, toasted, and sealed. From there they go to vineyards and distilleries that age their products in them. Beer is best in barrels that have already lost much of their oak character, so we buy them from other producers. A small amount of the wine or spirit is still present in the wood, providing a moderate contribution to the first batch, diminishing with each additional batch.
Equipment
The stainless steal for the vast majority of our equipment comes from China. Our brewhouse was constructed by Forgeworks in Colorado. Our fermentors and bright tank from Apex and DME in China. Our keg washer from Colorado Brewing.
The cooling of the fermentors is accomplished by a glycol chiller from G&D Chillers in Oregon. The ethylene glycol itself comes from ethylene and oxygen. The chiller also assists chilling the wort with our two-stage Thermaline heat exchanger (primarily more stainless steel). The copper pipes that carry the glycol are insulated with Armaflex. The flow of the glycol to individual tanks is controlled by electronic temperature sensors and solenoid valves.
Other equipment includes hydrometer, refractometer, pH meter, hoses, gaskets, and all manner of other valves and fittings.
For the space itself there was already plenty of concrete, bricks and metal. We hired Kolb Electric and B&B Pipefitters to do the installation of the bulk of the wires, pipes, and connections.
There is also everything that goes into serving a beer once it is ready. Kegs (Corny kegs for the sours and infusions, sanke for the standard clean beers), stainless steel fittings, beer lines, glasses (including the printed logo and the glasswasher) etc.
What’s the Point?
I don’t really have one. To me it is just remarkable how much of the complexity of brewing a batch of beer is now hidden in the inputs. I know how to brew beer at my house or a brewery, but if you put me out in the woods even with all the ingredients, I couldn’t brew a batch. Thinking about what is required for each batch makes me appreciate how nice it is to live in a time when I can brew beer as simply as going online and ordering the equipment and ingredients I want. It also shows me how much I still have to learn about making beer.
At the same time, it means that beers everywhere are mostly separated by the choices the brewer makes rather than the availability of ingredients. The exchange of information accelerated by the Internet. I hope there continue to be regional variations, specialties, and preferences. Traveling isn't as exciting when everyone brews NEIPA and pastry stouts.
It is tempting to say that beer isn’t like that. After all, each all-grain batch starts with the four basic ingredients and we do the rest… sure it would be a challenge to grow and malt barley, harvest and dry hops, isolate/propagate wild yeast, and haul water from a local stream, but what vessels would you use to boil/ferment? What about sanitizer, minerals, clarifiers, compressed CO2?
What follows is a high-level overview of what is required to brew a single batch of beer at Sapwood Cellars. Obviously, you could keep digging deeper into each one of these, peeling back layer-after-layer to the inputs of each input (e.g., the shoes that the hop harvester was wearing). I’ll arbitrarily stop where I lose interest. Needless to say though, the work of thousands in not millions of people goes into each of our batches. Scott and I just get the credit (or blame) because we're the ones at the end of the chain!
Ingredients
Water
Our water comes from Liberty Reservoir. From there it goes to Baltimore’s Ashburton water treatment plant. Baltibrew posted a nice series on the Baltimore water system. Luckily for us the existing minerals are mostly beneficial to the character of our beer. The carbonate is a bit higher than we’d like, but not by enough to require the waste of reverse osmosis.
Once pipes take it to the brewery it passes through a carbon filter to remove chlorine, and then an on-demand hot water heater. The fuel is natural gas piped into the brewery by BG&E (by way of fracking or older methods, and then refining). From there the water travels through a hose to our hot liquor tank where an electric element allows us to adjust the temperature. The electricity comes from a mix of fossil fuels, nuclear, and ~5% renewables.
To adjust the mineral content of the water, we add calcium chloride (from limestone-hydrochloric acid reaction or natural brine concentration) and calcium sulfate (harvested and refined from gypsum rock deposits). In addition, we add 75% phosphoric acid to adjust the pH of the water. Phosphoric acid is usually produced by combustion, hydration, and demisted from three ingredients: phosphorus, air, and water.
Grains
The grain we mash is a mixture of barley, wheat, oats, and rye depending on the beer. These are grown primarily on farms in North America and Europe. It is then soaked, sprouted, dried, and kilned by a maltster. The precise equipment required varies by malt and producer. In some cases it is a large industrial operation, in others the malt is still manually turned. The bulk of our base malt is Rahr brewer’s 2-row from Minnesota, but in our first order we also had sacks from Briess, Chateau, Simpsons, Crisp, Best etc. Most of the unmalted flaked grains (steamed and rolled to gelatinize their starches) are from Grain Millers.
We decided to hold-off on buying our own mill, to save the cost at the start… but after a few brews I can say a mill and auger are in our near future. We order our grains from Brewers Supply Group, which pre-mills the grain. We also occasionally add a few sacks to a Maryland Homebrew order from Country Malt.
Once we’re done with the now “spent” grain, they are picked-up by Keith of Porch View Farms. He feeds it to his animals as most of the carbohydrates are extracted into the wort, but proteins remain.
Hops
Our hops are grown throughout the higher latitudes of the globe, primarily the Pacific Northwest of the United States, but also Australia, Germany, and Czech Republic. The hops are first stripped from their bines, dried in an oast, and then baled. After selection, various lots are blended to create a consistent product and the hops are pulverized and pelletized. They are then vacuum-packed in mylar and stored cold to preserve their aromatics. Our hops primarily came from Hop Havoc, but we’re working on getting contracts for the upcoming harvest.
Yeast
Most of the yeast we’re using are the decedents of yeast that have been fermenting beer for hundreds or thousands of years. A couple hundred years ago their ancestors were part of a mixed-culture at breweries in England and Belgium, only to be lucky (and talented) enough to be isolated as a pure culture that gained success. Our Saccharomyces cerevisiae so far has come from RVA, Fermentis, and Lallemand for our “clean” beers. These needed to be isolated, propagated, and in some cases dried.
The sour and wild beers are too complex to track. They come from labs, bottle dregs, and a house culture. They may have come via a barrel, the breeze, an insect, or any number of other vectors into a brewery or labs. For example the Hanseniaspora vineae we are fermenting a hoppy sour for Denizen's Make It Funky festival came from Wild Pitch Yeast which isolated it from tree bark.
Fruit
We don’t have any beers far enough along for fruit, but we’re planning to source as much of it as we can directly from local farms and orchards. Most fruit is at its best when it is picked ripe and used quickly. I'm sure we'll use dried fruit, aseptic purees, juices, and freeze-dried fruits depending on quality, availability, and desired results as well. The first batch will probably be a tart saison on grape pumace (the pressed skins) from a local natural winery.
Other Consumables
Gas
Carbon dioxide is usually produced as a byproduct of some other activity (e.g., hydrocarbon processing). Our CO2 is stored in a 750 lb tank in a liquid state. We use it to carbonate and serve beer. It isn't economical at our scale to recapture the CO2 released by fermentation. Our supplier is Robert’s Oxygen.
As the air on Earth is 70% nitrogen it is usually concentrated with the use of a nitrogen generator. These rely on a membrane that allows nitrogen through. We need nitrogen to help push the beer through the long-lines from our walk-in to the tasting room (pure CO2 would lead to over-carbonation at those pressures). As the second most abundant gas in the atmosphere, oxygen generation uses similar technologies. We pump .5L/minute into the wort as it exits the heat exchanger, the yeast quickly uses it to create sterols for healthy cell walls when they bud. We get these two gases in large cylinders that are swapped out.
Chemicals
We need cleaners like caustic (sodium hydroxide) to remove organic deposits, and a phosphoric-nitric acid blend to remove inorganic beer stone and passivate the stainless steel. For sanitation we use iodophor for fittings in buckets, and peracetic acid for the tanks. These are made in a variety of industrial processes that I’m totally unaware of. Our chemicals are provided by Zep/AFCO.
Clarifier
Whirlfloc G helps proteins clump together in the last 15 minutes of the boil to be left behind. It is derived from Irish moss (seaweed) that is dried and granulated. As a vegan brewery, no gelatin or isinglass for us.
Barrels
Oak barrels start as oak trees. They are processed into planks, and then purchased by a cooperage which dries (either in a kiln or naturally). They are then assembled into barrels with metal hops, toasted, and sealed. From there they go to vineyards and distilleries that age their products in them. Beer is best in barrels that have already lost much of their oak character, so we buy them from other producers. A small amount of the wine or spirit is still present in the wood, providing a moderate contribution to the first batch, diminishing with each additional batch.
Equipment
The stainless steal for the vast majority of our equipment comes from China. Our brewhouse was constructed by Forgeworks in Colorado. Our fermentors and bright tank from Apex and DME in China. Our keg washer from Colorado Brewing.
The cooling of the fermentors is accomplished by a glycol chiller from G&D Chillers in Oregon. The ethylene glycol itself comes from ethylene and oxygen. The chiller also assists chilling the wort with our two-stage Thermaline heat exchanger (primarily more stainless steel). The copper pipes that carry the glycol are insulated with Armaflex. The flow of the glycol to individual tanks is controlled by electronic temperature sensors and solenoid valves.
Other equipment includes hydrometer, refractometer, pH meter, hoses, gaskets, and all manner of other valves and fittings.
For the space itself there was already plenty of concrete, bricks and metal. We hired Kolb Electric and B&B Pipefitters to do the installation of the bulk of the wires, pipes, and connections.
There is also everything that goes into serving a beer once it is ready. Kegs (Corny kegs for the sours and infusions, sanke for the standard clean beers), stainless steel fittings, beer lines, glasses (including the printed logo and the glasswasher) etc.
What’s the Point?
I don’t really have one. To me it is just remarkable how much of the complexity of brewing a batch of beer is now hidden in the inputs. I know how to brew beer at my house or a brewery, but if you put me out in the woods even with all the ingredients, I couldn’t brew a batch. Thinking about what is required for each batch makes me appreciate how nice it is to live in a time when I can brew beer as simply as going online and ordering the equipment and ingredients I want. It also shows me how much I still have to learn about making beer.
At the same time, it means that beers everywhere are mostly separated by the choices the brewer makes rather than the availability of ingredients. The exchange of information accelerated by the Internet. I hope there continue to be regional variations, specialties, and preferences. Traveling isn't as exciting when everyone brews NEIPA and pastry stouts.