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ingredients
This week I wanted to share a more detailed look at the upcoming Web based version of BeerSmith which is scheduled for release in June of 2021. It will be available to all Gold+ license holders of BeerSmith 3. When released, you can simply log into your existing BeerSmithRecipes.com account and edit recipes in your […] This year’s Little Home Brewers challenge looks to reimagine Oktoberfest.
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Sydney locals combine their love of beer and bowling by releasing the Bowlo Draught.
The post New beer aims to help keep the local bowlo alive appeared first on Beer & Brewer.
Beer historian Martyn Cornell joins me this week to discuss the history of English Mild Ale which was the dominant UK beer style for nearly 80 years. Subscribe on iTunes to Audio version or Video version or Spotify or Google Play Download the MP3 File– Right Click and Save As to download this mp3 file. […] Tasmania’s Van Dieman Brewing is holding its annual hop picking day this Saturday.
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Sydney Brewery’s Pilsner wins best in show at Queensland’s top beer awards.
The post The secret to the success of the quiet achievers appeared first on Beer & Brewer.
Alcohol free beer is flowing in venues as Australia’s first NA bar opens soon.
The post The heaps normal growth of on-premise NA beer sales appeared first on Beer & Brewer.
Growth in sales is attributed to people buying local and drinking less but better.
The post COVID-19 accelerates off-premise craft cider sales appeared first on Beer & Brewer.
Dr Charlie Bamforth joins me this week to discuss foam and head retention in beer. Subscribe on iTunes to Audio version or Video version or Spotify or Google Play Download the MP3 File– Right Click and Save As to download this mp3 file. Your browser does not support the audio element. Topics in This Week’s […] The team behind well-known Sydney brewery to open a brewpub in country NSW.
The post Nomad go overland with new Mudgee brewery appeared first on Beer & Brewer.
I felt it was time to bring you up to date on some of the new things happening at BeerSmith. BeerSmith Web Version I’ve been working hard to build a complete web based version of BeerSmith 3. Last year I released most of the BeerSmith tools to Gold+ members on the BeerSmithRecipes.com web site along […] Go behind the Counter Culture series with their head brewer and innovation manager.
The post Stone & Wood’s 10 week cycle of ‘fresh air’ appeared first on Beer & Brewer.
This week I cover mead making fermentation and finishing. Last week in part 1, I provided an overview of mead making and the first steps of making the must, pitching your yeast and adding nutrients. This week I will cover the remaining steps. As I covered last week the key components of modern mead making […] Brewpubs boost flavor on their menus by pouring their beers into the pizza dough and serving up the perfect slice.
The post Beer-infused Pizza Dough is a Perfect Brewpub Pairing appeared first on CraftBeer.com.
These classic Christmas beers from craft breweries pair perfectly whether you’re looking to share a bottle with friends or enjoy as you’re decorating the house for the holidays.
The post 12 Beers of Christmas appeared first on CraftBeer.com.
In August 2020, the federal Food & Drug Administration (FDA) finalized the definition and labeling requirements of gluten-free fermented and hydrolyzed foods (including beer and other alcoholic beverages). The ruling provides a clear delineation between products that are truly gluten-free and products that are not and how product labels communicate those differences to consumers. In […]
The post Gluten-Free Brewers Group Responds to FDA Final Rule on Gluten-Free Claims on Fermented Foods appeared first on CraftBeer.com.
Gordon Strong joins me for a discussion on German Lager beer styles and some tips for making the perfect lager. Subscribe on iTunes to Audio version or Video version or Spotify or Google Play Download the MP3 File– Right Click and Save As to download this mp3 file. Your browser does not support the audio […] 
This week I take a look at methods for doing sensory analysis of hops as well as some of the resources available to understand hop flavor and aroma better. Understanding Hop Flavor and Aroma For a few years now I’ve been doing presentations on beer recipe design where I encourage brewers to get more familiar […] 272 medals awarded to 240 breweries in world’s most prestigious professional beer competition Boulder, Colo. • October 16, 2020 — The Brewers Association (BA) awarded 272 medals* to 240 breweries across the country during the 2020 Great American Beer Festival (GABF) competition awards ceremony. The best beers in 91 beer categories covering 170 different beer styles (including all subcategories) were awarded gold, silver, and bronze medals during a virtual ceremony hosted on The Brewing Network. Judges for the 34th edition of […]
The post Winners of 2020 Great American Beer Festival Competition Revealed During First-Ever Virtual Ceremony appeared first on CraftBeer.com.
On September 23, 2020, gluten-free breweries from around the world connected virtually at the 2nd Annual Gluten-free Beer Conference, hosted by Golden-based Holidaily Brewing Company. Out of over 8,000 craft breweries in the U.S., only 15 breweries are dedicated gluten-free, meaning they brew, package, and sell gluten-free beer only. The U.S. breweries in attendance included […]
The post Gluten-free Breweries Worldwide Attend The 2nd Annual Gluten-free Beer Conference appeared first on CraftBeer.com.
I’m happy to announce the BeerSmith Mobile 3.1.9 update has been released for Android, iPhone/IOS and the Amazon app store. The app is being released on an “rolling” basis to existing users or via the app store over the next week. More Value, Costs Less The new BeerSmith Mobile release is a significant improvement over […] Andrea Stanley from Valley Malt joins me this week to discuss Craft Malting and heirloom malt varieties. Subscribe on iTunes to Audio version or Video version or Spotify or Google Play Download the MP3 File– Right Click and Save As to download this mp3 file. Your browser does not support the audio element. Topics in […] Randy Mosher joins me this week to discuss brewing fruity IPAs and using fruit in your IPAs. Subscribe on iTunes to Audio version or Video version or Spotify or Google Play Download the MP3 File– Right Click and Save As to download this mp3 file. Your browser does not support the audio element. Topics in […] 
Buy BeerSmith 3 Download BeerSmith 3 Here is a summary of the new features coming in the BeerSmith 3.1 desktop update. I have posted the open beta version on the main download page at BeerSmith.com, and plan to publish the formal release in the next week or two. You can find additional details for all […] Gary Glass joins me this week to discuss the state of US Craft and Homebrewing, the upcoming virtual Homebrewcon and some of his own homebrew creations. Subscribe on iTunes to Audio version or Video version or Spotify or Google Play Download the MP3 File– Right Click and Save As to download this mp3 file. Your […] Denny Conn and Drew Beechum join me this week to discuss hop techniques and brewing beers with unusual specialty ingredients. Subscribe on iTunes to Audio version or Video version or Spotify or Google Play Download the MP3 File– Right Click and Save As to download this mp3 file. Your browser does not support the audio […] Whether you are a homebrewer or a craft brewer, things don't always go as expected or something breaks. If you aren't ready, it could cost you a batch or delay a brew. In the worst case scenario a company can go out of business, making a replacement part difficult and expensive to procure. More than once we haven't had a (seemingly) small inexpensive thing and it caused issues. Learn from us (and chime in with your own suggestions)!
Yeast
If you use liquid cultures, there is always a chance that your starter won't start or your brink will run dry. We always keep a couple bricks of dried yeast on hand. On a commercial scale, SafAle is ridiculously inexpensive ($50-75 for 500 g). We always have a brick of US-05 and S-04 in the cooler. The strains you keep will depend on what strains you use. If nothing else, we'll use them for primary fermentation on sour beers when we don't have enough liquid yeast harvested.
Being friendly with a few other local brewers could be handy as well, but there usually isn't a guarantee they'll have yeast to spare at the last minute.
Fermentables
I find it helpful to have both dextrose and maltodextrin on hand. We had a DIPA dry out a few points too far, easy enough to boil a pot of maltodextrin, keg it and shoot it into the brite tank to add .004/1P. Dextrose is handy if your gravity is lower by a few points, although in most cases we'll just leave the beer alone. Dried pale malt extract is another option, especially if your efficiency is inconsistent (or you often brew really strong beers).
It never hurts to order a few extra bags of a favorite malts either, especially for things like Golden Naked Oats that often seem to be out of stock. Extra base malt is nice too, especially early on when you're ordering ingredients for a few batches and still feeling out system efficiency.
Hops
Buying on the spot market means sometimes you get a bag that isn't all it should be. Better to have a few back-up options to swap in for dry hopping. Mediocre hops are usually fine in the boil, so if we open a bag of Simcoe that is so-so, we'll open another and save the first for a boil/whirlpool addition.
Fittings/Gaskets
We try to have at least one "extra" gasket in each size. This is especially true for things like manways that aren't generic. Unluckily we didn't think of this before the gasket on our 15 bbl DME fermentor stretched out... now they're out of business and we're still working to find a replacement. The one we have still works, but likely won't forever. If we order anything new, we get replacement seals and parts for it at the same time.
Same goes for having extra valves and other fittings that might leak or stop working. Delicate instruments like hydrometers, thermometers, refractometers never hurt to have redundancy either.
Controllers
Nothing is worse that electronics that don't want to work properly. Our MidCo burner for the kettle has a small control board that shorts if a few drops of water fall onto it. The first time was a complete surprise after washing down the kettle, but we ordered two replacements. That saved a batch of beer a few months later after a boil-over (our new gas meter really increased the heat output). No problems since adding a water-proof cover...
I've been meaning to buy a few extra solinoids for the glycol/tanks too as they are notorious for going bad.
Enzymes
When our most recent batch of saison stalled out we were ready for it, we added amyloglucosidase and the gravity dropped quickly to 1.001. There are other enzymes that you might consider as well that help with conversion, run-off, and clarity as well.
Gasses
While we have a bulk CO2 tank, we also have a few smaller tanks. They're necessary to pour at events, but they're also nice to have if the bulk tank runs empty and we need to keep pouring beer! Same story with nitrogen. We have two tanks so we have one in use and one filled (or waiting to be swapped).
Your Suggestions
Rather than waiting for more things to go wrong to learn what else we should have, post a comment and let me know what to buy!
Yeast
If you use liquid cultures, there is always a chance that your starter won't start or your brink will run dry. We always keep a couple bricks of dried yeast on hand. On a commercial scale, SafAle is ridiculously inexpensive ($50-75 for 500 g). We always have a brick of US-05 and S-04 in the cooler. The strains you keep will depend on what strains you use. If nothing else, we'll use them for primary fermentation on sour beers when we don't have enough liquid yeast harvested.
Being friendly with a few other local brewers could be handy as well, but there usually isn't a guarantee they'll have yeast to spare at the last minute.
Fermentables
I find it helpful to have both dextrose and maltodextrin on hand. We had a DIPA dry out a few points too far, easy enough to boil a pot of maltodextrin, keg it and shoot it into the brite tank to add .004/1P. Dextrose is handy if your gravity is lower by a few points, although in most cases we'll just leave the beer alone. Dried pale malt extract is another option, especially if your efficiency is inconsistent (or you often brew really strong beers).
It never hurts to order a few extra bags of a favorite malts either, especially for things like Golden Naked Oats that often seem to be out of stock. Extra base malt is nice too, especially early on when you're ordering ingredients for a few batches and still feeling out system efficiency.
Hops
Buying on the spot market means sometimes you get a bag that isn't all it should be. Better to have a few back-up options to swap in for dry hopping. Mediocre hops are usually fine in the boil, so if we open a bag of Simcoe that is so-so, we'll open another and save the first for a boil/whirlpool addition.
Fittings/Gaskets
We try to have at least one "extra" gasket in each size. This is especially true for things like manways that aren't generic. Unluckily we didn't think of this before the gasket on our 15 bbl DME fermentor stretched out... now they're out of business and we're still working to find a replacement. The one we have still works, but likely won't forever. If we order anything new, we get replacement seals and parts for it at the same time.
Same goes for having extra valves and other fittings that might leak or stop working. Delicate instruments like hydrometers, thermometers, refractometers never hurt to have redundancy either.
Controllers
Nothing is worse that electronics that don't want to work properly. Our MidCo burner for the kettle has a small control board that shorts if a few drops of water fall onto it. The first time was a complete surprise after washing down the kettle, but we ordered two replacements. That saved a batch of beer a few months later after a boil-over (our new gas meter really increased the heat output). No problems since adding a water-proof cover...
I've been meaning to buy a few extra solinoids for the glycol/tanks too as they are notorious for going bad.
Enzymes
When our most recent batch of saison stalled out we were ready for it, we added amyloglucosidase and the gravity dropped quickly to 1.001. There are other enzymes that you might consider as well that help with conversion, run-off, and clarity as well.
Gasses
While we have a bulk CO2 tank, we also have a few smaller tanks. They're necessary to pour at events, but they're also nice to have if the bulk tank runs empty and we need to keep pouring beer! Same story with nitrogen. We have two tanks so we have one in use and one filled (or waiting to be swapped).
Your Suggestions
Rather than waiting for more things to go wrong to learn what else we should have, post a comment and let me know what to buy!
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).
Brewers often joke that they spend more time cleaning than on any other aspect of the job. That isn't quite true at Sapwood Cellars, but the cleaning aspect has been the biggest change from homebrewing. By comparison, wort production hasn't been that difficult or different. Sure it took a few batches to acclimate to the efficiency and losses on our 10 bbl Forgeworks brewhouse (as with any new brewing system), made more challenging by an unreliable flow meter. Even 15 batches in despite hitting our target mash temps, wort fermentability seems to be lower than expected. We're also still dialing in hop utilization given the thermodynamics involved with large wort volumes. Still, the concepts, ingredients, and techniques are all pretty similar to homebrewing.
When it comes to cleaning and sanitizing though, we've had to relearn the entire process. You really can't fill a fermentor with 360 gallon of Oxiclean Free and soak overnight or swirl and scrub... I miss those days. First, let's talk about chemicals and what they do. Our main supplier is AFCO, but Berko, Five-Star, and Loeffler all have fans. Prices seemed similar, we just didn't think about ordering until a couple weeks before we started brewing and picked the one with the quickest turnaround time. We buy most of the chemicals in 5 gallon jugs, and pump them into beakers to measure and dose.
Chemicals
Caustic (5229 Caustic) - Caustic is the primary cleaner used by most breweries. Usually sodium hydroxide based and heavily alkaline. It is ideal for breaking down and removing organic deposits (e.g., krausen rings). You can do a bit of trading-off between time, temperature, pressure, and concentration. That said, 2-3% caustic at ~150F (66C) for 20-30 minutes through the sprayball has been a pretty good place to start for us. Caustic is dangerous because it is capable of breaking down your skin (the lye used in soap making is similar). We started with a powdered caustic (Wash-It), but given the price and efficacy we transitioned to liquid.
Phosphoric-Nitric Acid Blend (5397 Microlex Special 30) - Acid helps to remove inorganic deposits, i.e., beerstone (calcium oxalate). It also helps to neutralize any residual caustic (not that there should be any with adequate rinsing) and to passivate stainless steel. Acid blend is used at similar temperatures and cycle lengths as caustic, although slightly cooler, ~130F (54C).
Five Star Peroxyacetic Acid (PAA) - While there are many sanitizers available, PAA is the most popular for breweries. At the right concentrations it is a robust sanitizer with high effectiveness. It breaks down to acetic acid, so it can be used no-rinse. It is a powerful oxidizer, which makes it important to drain any residual before fermented beer enters a tank or keg. Our bucket was leftover from the old brewery in our space, so we bought a pack of test strips and it still reads the expected concentration after dilution.
Five Star PBW - We have a bucket of this alkaline powered cleaner for soaking hot-side equipment and other gear where we don't want to have to be as careful as we would with caustic. We both used it at home, so were more comfortable with it than the Chlorinated Manual Cleaner we started with.
Iodophor (4330 Spark I2) - Similar to the PBW, it is nice to have a less hazardous sanitizer for spraying ports or soaking fittings. It is only effective on clean surfaces, so it is important to remove of detritus before expecting it to work.
Grain Alcohol - Given its quick kill times and evaporation ethanol is the ideal sanitizer for spray bottles and any surfaces that are highly sensitive (e.g., yeast culturing). Isopropyl alcohol is another option.
General Concepts
Pre-Heating - At this scale a tank has so much thermal mass that you can't simply put 15 gallons (57 L) of hot water to a tank and expect it to still be hot after circulating. As a result if you want the caustic or acid to stay hot, you need to pray hot water into the tank. A tank with an electric element (like our keg washer has) helps too.
Sprayball - Most tanks have a port that leads to a sprayball, a small metal orb that spins and sprays when liquid is forced through. These aren't always perfect, and can have blind spots, especially in ports and above it. In addition, it isn't effective at cleaning its own exterior.
Passivation - This is what makes stainless steel stainless, a thin layer of chromium atoms at the surface that prevents iron from rusting or leeching into the beer (which weakens the equipment and shortens its lifespan). With a pristinely clean surface, the oxygen in the atmosphere is enough to accomplish this, but acids (especially nitric) are more effective.
Safety
These chemicals aren't anything to joke about. Many brewers have scars gained from caustic or acid dripping onto their skin . Safety glasses, long gloves, chemical resistant boots and pants are a must when handling them. Read the safety data sheet for each chemical you are using and know what to do if some gets on your skin or in your eyes. I don't get to drink as much beer as I used to because the end of the day is usually the most dangerous time.
Scott and I prefer to have all of the tank's arms connected from the start, allowing us to use valves to direct the flow of the cleaning and sanitizing solutions. We started off using a manifold coming off the pump, but have changed to daisy-chained T's between the arms. Many brewers prefer to simply move a single output line from the pump between the arms. This requires less setup time, but more active effort once cleaning begins (moving the hose from arm to arm ~10 times through the process). It also carries additional risks if you move the hose without closing a valve.
Our Fermentor CIP Process
1. Once the beer is out of a tank, we turn off the glycol jackets and open the dump valve. We then shoot high-pressure cold water through the sprayball to remove most of the hops/yeast struck to the sides and bottom.
2. We use our on-demand hot water heater to generate 130F (54C) water to spray through the sprayball and manually through a hose to dislodge the bulk of the crud stuck to the sides/top of the fermentor. We'll run it through the pump to get good coverage.
3. We briefly remove the lower fittings on the tanks (including manway, racking arm, thermometer, sample port) to spray out the trub caught in them.
4. We blow compressed air through the sprayball at ~30 PSI with the bottom valve open for 30 minutes. CO2 neutralizes caustic, so best to remove as much as possible before proceeding. This long is likely overkill for a 10 bbl tank, but can't hurt.
5. We assemble our cleaning rig, usually a pump running to the sprayball, with a T to connect it to the racking arm and another to the blow-off.
5. We preheat the tank for a couple minutes by spraying 160F (71C) water in and letting it drain. We hook the water line in right before the pump so we can immediately go to cleaning once it is preheated. Our goal is to get the tank to read ~130F (54C).
6. We then use the hot water heater's built-in meter to send 10-15 gallons of 160F (71C) water into the tank. We dose in 3 oz of caustic per gallon (2.3%) using a stainless steel elbow on one of the ports (chasing the caustic with water to ensure it get in). We then turn the elbow down to allow that port to equalize the pressure inside the tank, while preventing caustic from spitting out.
7. I like to send a little flow through the blow-off and racking arm first to soak them during the 20-25 minutes sprayball at full pressure (60 hz on our pump - or a bit slower if it cavitates). Then five minutes through the other arms, before a final five through the sprayball.
6. Dump the caustic. Rinse each arm with hot water, then burst rinse 10 times for 10 seconds at 130F (54C) through the sprayball, allowing it to drain before each successive rinse. I'll often put 10-15 gallons (38-57 L) into the tank once or twice and recirculate at the end to make sure there is enough pressure to spray all the surfaces. You can check the pH of the drained rinse water to ensure it has returned close normal before proceeding.
2. We then take off all of the fittings (including the sprayball itself), soak them in PBW or caustic. We inspect the fittings and gaskets, rinse and put into a bucket of iodophor. For the ports we spray, scrub and spritz with iodophor before reassembling. We also take the chance to inspect the interior with a flashlight to ensure there are no deposits.
7. We run acid blend at 2 oz per gallon (1.5% by volume) using roughly the same process and times as the caustic. Significantly higher concentrations should be used on new equipment and once a year to ensure adequate passivation.
8. Usually we'll air-dry at this point unless we need the tank the following day. In that case we'll rinse and then sanitize with peroxyacetic acid in cool water at 200 PPM using the same rig, and pressurize the tank to 4 PSI of CO2 to ensure it holds. The next morning we'll dump any residual sanitizer from each port before running wort or beer in.
The whole process including sanitation takes three hours, but most of that time isn't active (just waiting for a purge, or cycle). Going longer on any of the times isn't a big deal, so it is easy to run while working on other things if you keep track of your progress and don't miss a step.
We haven't gotten a CIP cart with dedicated vessels and pump, so our biggest issue currently is that it is difficult for one of us to clean a tank while the other person brews because they require some of the same equipment. Luckily our current schedule of two batches a week doesn't make that too much of an issue.
I am by no means holding this up as a perfect or ideal process. It'll likely be viewed as overkill by some, and inadequate by others. But if you have constructive suggestions, I'd love to hear them! I'd rather err towards overkill because we're dealing with several yeast strains (including killer wine yeast, Saccharomyces cerevisiae var. diastaticus, not to mention Brettanomyces and Pediococcus in a dedicated tank), although we do have the advantage of only dealing with kegs stored cold.
Other Pieces
We addition we'll pump the same chemicals through our heat exchanger and carbonation stone. For the heat exchanger we also heat pasteurize by running 180F (82C) water for 20 minutes inline once we assemble our knock-out rig (we discard the water until we see wort before sending to the fermentor). Our keg cleaner automatically does the same process on our sanke kegs, including air and CO2 purges to recapture the caustic and sanitizer.
When it comes to cleaning and sanitizing though, we've had to relearn the entire process. You really can't fill a fermentor with 360 gallon of Oxiclean Free and soak overnight or swirl and scrub... I miss those days. First, let's talk about chemicals and what they do. Our main supplier is AFCO, but Berko, Five-Star, and Loeffler all have fans. Prices seemed similar, we just didn't think about ordering until a couple weeks before we started brewing and picked the one with the quickest turnaround time. We buy most of the chemicals in 5 gallon jugs, and pump them into beakers to measure and dose.
Chemicals
Caustic (5229 Caustic) - Caustic is the primary cleaner used by most breweries. Usually sodium hydroxide based and heavily alkaline. It is ideal for breaking down and removing organic deposits (e.g., krausen rings). You can do a bit of trading-off between time, temperature, pressure, and concentration. That said, 2-3% caustic at ~150F (66C) for 20-30 minutes through the sprayball has been a pretty good place to start for us. Caustic is dangerous because it is capable of breaking down your skin (the lye used in soap making is similar). We started with a powdered caustic (Wash-It), but given the price and efficacy we transitioned to liquid.
Phosphoric-Nitric Acid Blend (5397 Microlex Special 30) - Acid helps to remove inorganic deposits, i.e., beerstone (calcium oxalate). It also helps to neutralize any residual caustic (not that there should be any with adequate rinsing) and to passivate stainless steel. Acid blend is used at similar temperatures and cycle lengths as caustic, although slightly cooler, ~130F (54C).
Five Star Peroxyacetic Acid (PAA) - While there are many sanitizers available, PAA is the most popular for breweries. At the right concentrations it is a robust sanitizer with high effectiveness. It breaks down to acetic acid, so it can be used no-rinse. It is a powerful oxidizer, which makes it important to drain any residual before fermented beer enters a tank or keg. Our bucket was leftover from the old brewery in our space, so we bought a pack of test strips and it still reads the expected concentration after dilution.
Five Star PBW - We have a bucket of this alkaline powered cleaner for soaking hot-side equipment and other gear where we don't want to have to be as careful as we would with caustic. We both used it at home, so were more comfortable with it than the Chlorinated Manual Cleaner we started with.
Iodophor (4330 Spark I2) - Similar to the PBW, it is nice to have a less hazardous sanitizer for spraying ports or soaking fittings. It is only effective on clean surfaces, so it is important to remove of detritus before expecting it to work.
Grain Alcohol - Given its quick kill times and evaporation ethanol is the ideal sanitizer for spray bottles and any surfaces that are highly sensitive (e.g., yeast culturing). Isopropyl alcohol is another option.
General Concepts
Pre-Heating - At this scale a tank has so much thermal mass that you can't simply put 15 gallons (57 L) of hot water to a tank and expect it to still be hot after circulating. As a result if you want the caustic or acid to stay hot, you need to pray hot water into the tank. A tank with an electric element (like our keg washer has) helps too.
Sprayball - Most tanks have a port that leads to a sprayball, a small metal orb that spins and sprays when liquid is forced through. These aren't always perfect, and can have blind spots, especially in ports and above it. In addition, it isn't effective at cleaning its own exterior.
Passivation - This is what makes stainless steel stainless, a thin layer of chromium atoms at the surface that prevents iron from rusting or leeching into the beer (which weakens the equipment and shortens its lifespan). With a pristinely clean surface, the oxygen in the atmosphere is enough to accomplish this, but acids (especially nitric) are more effective.
Safety
These chemicals aren't anything to joke about. Many brewers have scars gained from caustic or acid dripping onto their skin . Safety glasses, long gloves, chemical resistant boots and pants are a must when handling them. Read the safety data sheet for each chemical you are using and know what to do if some gets on your skin or in your eyes. I don't get to drink as much beer as I used to because the end of the day is usually the most dangerous time.
Scott and I prefer to have all of the tank's arms connected from the start, allowing us to use valves to direct the flow of the cleaning and sanitizing solutions. We started off using a manifold coming off the pump, but have changed to daisy-chained T's between the arms. Many brewers prefer to simply move a single output line from the pump between the arms. This requires less setup time, but more active effort once cleaning begins (moving the hose from arm to arm ~10 times through the process). It also carries additional risks if you move the hose without closing a valve.
Our Fermentor CIP Process
1. Once the beer is out of a tank, we turn off the glycol jackets and open the dump valve. We then shoot high-pressure cold water through the sprayball to remove most of the hops/yeast struck to the sides and bottom.
2. We use our on-demand hot water heater to generate 130F (54C) water to spray through the sprayball and manually through a hose to dislodge the bulk of the crud stuck to the sides/top of the fermentor. We'll run it through the pump to get good coverage.
3. We briefly remove the lower fittings on the tanks (including manway, racking arm, thermometer, sample port) to spray out the trub caught in them.
4. We blow compressed air through the sprayball at ~30 PSI with the bottom valve open for 30 minutes. CO2 neutralizes caustic, so best to remove as much as possible before proceeding. This long is likely overkill for a 10 bbl tank, but can't hurt.
5. We assemble our cleaning rig, usually a pump running to the sprayball, with a T to connect it to the racking arm and another to the blow-off.
5. We preheat the tank for a couple minutes by spraying 160F (71C) water in and letting it drain. We hook the water line in right before the pump so we can immediately go to cleaning once it is preheated. Our goal is to get the tank to read ~130F (54C).
6. We then use the hot water heater's built-in meter to send 10-15 gallons of 160F (71C) water into the tank. We dose in 3 oz of caustic per gallon (2.3%) using a stainless steel elbow on one of the ports (chasing the caustic with water to ensure it get in). We then turn the elbow down to allow that port to equalize the pressure inside the tank, while preventing caustic from spitting out.
7. I like to send a little flow through the blow-off and racking arm first to soak them during the 20-25 minutes sprayball at full pressure (60 hz on our pump - or a bit slower if it cavitates). Then five minutes through the other arms, before a final five through the sprayball.
6. Dump the caustic. Rinse each arm with hot water, then burst rinse 10 times for 10 seconds at 130F (54C) through the sprayball, allowing it to drain before each successive rinse. I'll often put 10-15 gallons (38-57 L) into the tank once or twice and recirculate at the end to make sure there is enough pressure to spray all the surfaces. You can check the pH of the drained rinse water to ensure it has returned close normal before proceeding.
2. We then take off all of the fittings (including the sprayball itself), soak them in PBW or caustic. We inspect the fittings and gaskets, rinse and put into a bucket of iodophor. For the ports we spray, scrub and spritz with iodophor before reassembling. We also take the chance to inspect the interior with a flashlight to ensure there are no deposits.
7. We run acid blend at 2 oz per gallon (1.5% by volume) using roughly the same process and times as the caustic. Significantly higher concentrations should be used on new equipment and once a year to ensure adequate passivation.
8. Usually we'll air-dry at this point unless we need the tank the following day. In that case we'll rinse and then sanitize with peroxyacetic acid in cool water at 200 PPM using the same rig, and pressurize the tank to 4 PSI of CO2 to ensure it holds. The next morning we'll dump any residual sanitizer from each port before running wort or beer in.
The whole process including sanitation takes three hours, but most of that time isn't active (just waiting for a purge, or cycle). Going longer on any of the times isn't a big deal, so it is easy to run while working on other things if you keep track of your progress and don't miss a step.
We haven't gotten a CIP cart with dedicated vessels and pump, so our biggest issue currently is that it is difficult for one of us to clean a tank while the other person brews because they require some of the same equipment. Luckily our current schedule of two batches a week doesn't make that too much of an issue.
I am by no means holding this up as a perfect or ideal process. It'll likely be viewed as overkill by some, and inadequate by others. But if you have constructive suggestions, I'd love to hear them! I'd rather err towards overkill because we're dealing with several yeast strains (including killer wine yeast, Saccharomyces cerevisiae var. diastaticus, not to mention Brettanomyces and Pediococcus in a dedicated tank), although we do have the advantage of only dealing with kegs stored cold.
Other Pieces
We addition we'll pump the same chemicals through our heat exchanger and carbonation stone. For the heat exchanger we also heat pasteurize by running 180F (82C) water for 20 minutes inline once we assemble our knock-out rig (we discard the water until we see wort before sending to the fermentor). Our keg cleaner automatically does the same process on our sanke kegs, including air and CO2 purges to recapture the caustic and sanitizer.
