CHAPTER I

INTRODUCTION

In this realm where people are confined with hectic affairs, people always find an escape and beer

got some of that good stuff. Recently, beer is the most popular alcoholic beverage in the world and the share

market is risen up in the Philippines and the entire Asia every year. The low price beer is the favourite

product and the alternative sources of carbohydrates such as rice are attractive for brewery.

Rice is a staple food for nearly 50% of the world’s population. According to the Food and

Agriculture Organization (FAO) of the United Nations, global paddy rice production in 2015 was of 738.2

million tons (490.3 million tons, milled basis)

1.1. Product Information

Beer is one of the oldest and most widely consumed alcoholic drinks in the world, and the

third most popular drink overall after water and tea. Beer is brewed from cereal grains — most

commonly from malted barley, though wheat, maize (corn), and rice are also used. During the brewing

process, fermentation of the starch sugars in the wort produces ethanol and carbonation in the

resulting beer. Most modern beer is brewed with hops, which add bitterness and other flavours and act

as a natural preservative and stabilizing agent. Other flavouring agents such as gruit, herbs, or fruits

may be included or used instead of hops. In commercial brewing, the natural carbonation effect is often

removed during processing and replaced with forced carbonation.

1.2. Properties of the Product

Flavor of beer is characterized of typical volatile compound profile affected principally by

the yeast metabolism. The low amount of free amino nitrogen present in rice malt wort promotes an

overproduction of fermentation by-products like higher alcohols. Indeed, higher alcohols are present
 in great amounts in the rice malt beers but they do not exceed the threshold limit. The aroma-active

esters, other fermentation by-products that are highly desired in beer because of their fruity, were

present in small amounts.

Aldehydes are generally off-flavors in beer, and they are produced by oxidation of the

corresponding alcohols or are derived from fatty acids and lipids present in the malt and formed during

the various stages along the malting and brewing process. Anyway no particular off-flavor was revealed

even though ethanal exceeded the perception threshold limit of 10–25 mg/L. The concentrations of

volatile compounds in the rice malt beers are in the range of a barley malt beer. The dimethyl sulfide

content is an off-flavor derived from malt whose content is below the threshold limit in rice malt beer.

1.3. Process Selection

A cursory understanding of what happens in the brewhouse is useful for beer connoisseurs

to have, since almost all of the flavors encountered while tasting beer were the result of what happened

while it was being brewed.

The first thing a brewer needs to do before getting to work making beer is to ensure that

their brewing grain is ready to go. Assuming they are not malting their own barley, this means milling,

or crushing, the grains. This crucially important step can make or break a beer before it has even begun.

The key is to crush the grains enough so that it exposes the starchy center of the barley seed without

damaging the grain hulls that encase them. Once the grain has been milled, it is added to a large vessel

called the mash tun, and mixed with hot water to form the mash.

Since there are several different types of enzymes within barley, each with a preferred

temperature at which they like to work, brewers monitor the mash temperatures extremely close. By

raising and lowering the temperature of the mash, brewers can control what types of sugars are

produced by the enzymes. At lower temperatures, highly fermentable sugars are created, resulting in

dry beers. At higher temperature, the sugars are not as easily digested by the yeast, resulting in a beer

with some sugars left unfermented, and thus a sweeter, more full-bodied end product. The enzymes

work quickly too. Within about an hour they will be done converting starch to sugar, at which point the
brewer will end the enzymatic activity by raising the temperature of the mash to over 200 degrees

Fahrenheit, a process known as mashing out. The next step in the brewing process is the take the mash,

and separate out the spent grain from the sugary liquid known as wort (pronounced wert). This process

is called lautering. To begin the lautering process, the mash is transfered to vessel with a false-bottom

called a lauter tun. Here the clear wort is drained away from the hulls and barley grist. Water is also

added during lautering, in order to extract even more of the fermentable sugars from the grain. This is

known as sparging. Sparging must be done very gradually as to not disrupt the grain bed that acts as a

natural filter for the wort.

Once the sweet wort has been separated from the grains, it is brought to a strong, prolonged

boil for one to two hours. This boiling process is critical for many reasons. First, and from a historical

point, most importantly, it sterilizes the beer. Boiling does more than sterilize the brew, however. Hops

introduced to boiling water will begin to break down, or isomerize, molecularly altering the

composition of the acids within the hops and releasing bitterness into the beer. The longer the hops are

boiled, the more of their alpha acids will be isomerized in order to lend bitterness to the brew. Hops

added later in the boil don’t bitter the beer all that much, but instead lend flavor and aroma. This is

because in addition to alpha acids, hops also contain highly volatile, and very pungent oils, which break

down quickly in boiling water. However if only exposed to the boiling wort for a short period of time,

or at lower temperatures, hops will release these oils and lend aromatics and flavor to the beer. To

extract flavor, brewers typically add hops about 10-15 minutes before the end of the boil.

Once the boil is completed it is sent to a whirlpool to collect any hop matter and coagulated proteins

that have accumulated. Then it is immediately cooled. Cooling the beer quickly is important, since the

beer will begin to oxidize and produce off flavors almost immediately at these temperatures.

Once the wort has been cooled, it is moved to a fermentor, which is usually just a large

stainless steel vat (or on rare occasions, oak). From the moment the yeast is added it gets to work eating

the sugars that were created during the mash. As they consume the sugar, the yeast expells carbon

dioxide and alcohol, as well as a variety of flavor compounds that vary greatly depending on several
 variables such as the specific strain of yeast, and fermentation temperature of the beer. Fermentation

time can vary greatly, from a few days for a simple ale, to over a month for lagers.

When fermentation is over, and the yeast have worked their way through the off-flavors, it

becomes dormant and begins to settle to the bottom of the fermentation vessel. From here, the brewer

can easily remove the yeast, leaving only bright, clear beer. To help this process along, many brewers

also filter the beer mechanically, or by adding filtering agents which help collect the yeast into larger

groups, which then fall out of suspension at a faster rate.

1.4. Site Selection

Water is a principal ingredient of beer, and plays an essential role in beer production

process at commercial brewery sites. Main water supply to your brewery is recommended to be 60 psi

at 25-30 GPM. Uniform water flow to the brewhouse is critical and should not be affected by water

demand elsewhere in the building. Hot and cold bibs are required in all brewery spaces and large areas.

If kegging or bottling will be done, a water supply will be needed in these areas. Filtration may be

necessary for city water. A water analysis will determine if a filter is required.

Drains are required in the brewhouse, fermentation, walk-in cooler, boiler room, and any

other area where water and spillage may occur. Floors should have recommended pitch of ¼ per foot

towards drains. Channel drains with stainless steel or fiberglass grating is recommended. All drains

should be sized adequately to handle 4-6 barrels of effluent for every 1 barrel of beer produced.

Brewery floors should be sealed and resistant to both mild acids and strong alkaines. Due

to the nature of brewing process, walls and ceilings should be washable.

Standard electrical for our equipment is 208VAC, 4 phase, 60 hertz, 4 wire. A 200 Amp

service is generally acceptable for the brewery, but may be affected based on customer power supply.

*Note: these electrical guidelines are for planning purposes only. Complete detailed electrical

requirements will be based from Specific Mechanical.

of 12’ to 15’ in the brewhouse and cellar areas. Microbreweries and production breweries will require

additional ceiling heights due to larger sizes of the vessel.

Typically, a flue is needed to vent the steam form the brew kettle. If a steam fired system

is selected, an exhaust flue is required in the boiler room for the gas-fired boiler. If a direct gas-fired

system is selected, an exhaust flue will also be needed for the kettle firebox. Make-up air is required in

the brewhouse area for a direct gas-fired system. For unloading and installation, a forklift should be on

site. Forks should be extendable and padded to protect the equipment. All electrical conduits and wiring

are to be run and ready to connect to equipment. Ensure there is an entryway into the building to

accommodate the largest vessel. (6848 Kirkpatrick Cres. Victoria, Copyright 2017)

1.4.1. Political and Strategic Considerations

Alcohol Policies

Irresponsible consumption of alcohol can have detrimental effects on society, so there are

numerous social policies that exist to regulate the alcohol industry in general and the beer industry

in particular. Beer is unlike other consumer goods because it cannot be freely advertised, sold or

consumed. The beer industry players have to adhere to advertising norms that generally prescribe

the content and hours when beer advertisements can air to minimize instances of underage drinking.

Taxation

The beer industry is a significant tax contributor because of its revenue-generating capacity

in the market. The tax code classifies brewers according to their size, defining those that produce

up to two million barrels per year as small brewers and any amount above that as a large brewer,

although taxes are paid on every barrel they produce. There have been initiatives to expand the

classification of small brewers to a ceiling of six million barrels per year and calls for the reduction

of excise tax per barrel, pitting large brewers against small brewers.
 Political Lobbying

Since there are various policy and legislative concerns relating to the beer industry,

political lobbying is an integral part of the industry business. One may refer to Republic Act

No. 8240, an avt amening sections 138, 139, 140 and 142 of the national internal revenue,

as amended, and for other purposes. (Robles, November 1996)

Anti-Trust Issues

The proliferation of craft beer that is not mass-produced has intensified competition

in the beer industry and brought about market shifts that Congress and regulatory agencies

have to constantly monitor in order to prevent the creation of monopolistic enterprises.

1.5. Market Study

2016 cemented the recovery of the beer category after the increase in the excise tax, thanks

to the election-driven demand for domestic mid-priced and economy lager. The category benefited

from the higher consumer spending typical of an election period. In 2016 total volume sales of beer

increased by 16%, to reach 1,817 million litres.

1.5.1. Competitive Landscape

With a 93% total volume share in 2016, San Miguel Brewery dominated beer, and also

saw the fastest growth of 17%. More than having strong brand equity and a wide distribution

network, the company banks on its above-the- line and trade marketing campaigns, which mean

that San Miguel brands are continuously relevant. For instance, the company successfully

held its annual San Miguel Oktoberfest, a festival that brings together beer and music

enthusiasts. Event-goers sampled San Miguel brands of their choice.

Over the forecast period beer is expected to see a negative total volume CAGR of 1%.

Following an exceptional year for beer in 2016 because of the elections, manufacturers will find it

challenging to generate the same demand in the forecast period. However, the marketing efforts

and cost-containment measures of manufacturers will ensure the decline is marginal. Meanwhile,

as consumers, particularly middle-income young consumers, will look for more unique drinking

experiences, this will help to drive sales of premium beer and craft beer over the forecast period.

Domestic premium lager and imported premium lager are expected to increase by total volume

CAGRs of 1% and 4% respectively in the forecast period, despite the decline expected in overall

beer volumes.
Bibliography

6848 Kirkpatrick Cres. Victoria, B. C. (Copyright 2017). Building Requirements. SPECIFIC Brewing

Distilling.

Robles, C. (November 1996). PHILIPPINE LAWS, STATUTES & CODES . Virtual Law Library.

Church, Richard L. and Murray, Alan T. 2009. Business Site Selection, Location Analysis, and GIS.

Hoboken, New Jersey: John Wiley & Sons, Inc.

Murray, Alison. 2012. Factors Influencing Brand Loyalty to Two Microbreweries in North Carolina. M.S.

Thesis. East Carolina University: Greenville, North Carolina. UMCIRB 12-000542.