Brew shack Associates

Brew Shack Associates

What is a Brew-pub &Microbrewery

A brewpub combines the efforts of a microbrewery or craft brewery with the concept of a traditional English pub or "public house." Brewmasters work within the confines of a pubstyle restaurant in order to provide customers with unique beers on tap. Restaurant owners provide traditional beer or regional favorites to accompany the beer samplings. It can be challenging to distinguish a true brewpub from a local microbrewery, but many times the name of the establishment will provide clues. A typical brewpub might call itself "John Barleycorn's" or "Hopper's Pub," or else it will advertise itself directly as "Maggie's Olde Towne Brew Pub." Local microbreweries may also offer pub grub or a limited food menu, or they may simply lease space to a separate restaurant operation. Microbreweries are small producers of beer that serve local or regional markets, Brewpubs are a natural progression of microbreweries. Selling only their own brewed beer, the first to open in USA was in an Opera house in Yakima, Washington in 1982. The most famous brewpub and microbrewery is Redhook Ale and was opened in an old trolley barn by a former Starbucks executive and a winemaker.

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Since 2005 the initiative towards setting up Indias first microbrewery/Brewpub was seen in different states, thought the first state to come out with any policy was Kerla but eventually the first microbrewery came up in Pune, in 2007 named Martin Judds Microbrewery, and the first Brewpub named Howzzat in Gurgaon. At present there are almost 6 brewpubs operational in India, and new projects are always on discussion in new cities like Bangalore, Kolkata, Pune, Mumbai and Goa etc. However Haryana & Maharashtra being the first two states to develop a functional excise and licensing rules for Microbreweries/Brewpubs, other states are also catching up fast, however the excise since governed individually by different states the policy could however change from city to city.
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WHAT WE DO
Brew shack Associates undertake end to end project consultancy starting from project report and place selection, we provide you with the best possible equipment, take care of those pesky business problems like regulatory issues and organize you a brewer or brew master along with providing necessary training and delivery of raw materials such as malt and hops. Brew shack Associates provides on-the-ground consulting for setting up Micro brewery or brewpub. They have expertise in evaluating, optimizing and developing solutions. Brew shack Associates consultants have an average of more than 30+ years experience in executive positions, at end-user and vendor corporations. We specify the necessary infrastructure, provide you the layout plans and assist you with your preparations with your professionals. Brew shack Associates plans your equipment layout, you benefit from our experience. Under our supervision our suppliers manufacture your plant, our presence make sure that you get the best possible equipment. We ship you the plant. We also do the installation works with our technicians. Brew shack Associates trains you the experts of your choice to operate the brewing plants under the highest quality standards. On request we also organize you a brewer or brew master for a limited period of time Brew shack Associates organizes you the delivery of the necessary raw materials such as malt and hops. The malt is usually packed in 50kg-bags, the hops is vacuum packed.

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Elements that determine the cost of the brew

Batch Size Yearly Capacity Finishes Automation
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Basic Brewing Process

The brewing process according to the German Purity Law ( Deutsches Reinheitsgebot ) from year 1516: ( Deviations from the German purity law are of course possible and will be applied according to local requirements ) 1. Water + Malt + Hops + Heating energy = Wort In the Brew-House vessels pure brewing water and light / dark malt are mixed together to give the mash. In several temperature steps this mash is heated-up and finally lautered (filtered). The result is sugarcontaining wort, a sweet juice which is cooked together with hops to give the necessary bitternes and aroma. This first part takes approx. 78 hours. 2. Wort + Yeast + Cooling energy = Beer In the fermenting tanks brewers yeast (top-or bottom-fermenting depending on kind of beer ) is added to the cooled wort. Sugar is converted into both alcohol and CO2 ( carbonic acid ). After the ripening process at low temperatures and high pressure the typical taste of beer is developed. Within approx. 2-3 weeks from the begin of brewing the beer is ready to be served.

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Who is able to brew ?

It is easy for everybody to learn brewing - reliability, cleanliness & ability to operate a PC is a precondition. You or your personal does not need to be a brewmaster right from the beginning ! With the help of our training and our brewery management software we are creating excellent brewers. With today's modern technology it is easy for you to produce and reproduce successfully premium beers. Only for bigger brewery capacities ( higher than 1000 litres/brew ) we recommend to employ a professional brew master.

Brew Shack Associates

Kinds of beer

However it is not possible to create 100% copies of existing beers (because of certain deviations like water, raw materials, filtering, pasteurization etc. ). A pub brewery invites to create and produce its own unique taste, adapted to the customer's wishes. Later you may develop you own beers. Storability of unfiltered beers at 6C - several months. For filtered beer somewhat less Low alcohol beers are not really recommendable for a micro brewery - the usual alcoh content of 4-5% is an additional safety for good storability. Stronger beers can be easily produced. Alcohol-free beer cannot be produced in a small scale in a feasible way

- as per today's technical possibilities.

Brew Shack Associates

Excise, License, tax, duty & other legal requirements

Up till now only we have 3-4 Indian states with complete excise policy, but Maharashtra and Haryana were the first ones in this field - Excise policies deal with any kind of narcotics or intoxicants in alcohol/liquor industry, fo which they levy taxes on the production based on fixed set of standards and guidelines. Generally this is done on per bulk liter for packaged beer in cartons and for microbrewerie where there is no packaging involved, this taxes are put over the weekly or monthly production and also depends on the ABV, which is fixed for a tax rate and goes up with increase in ABV, but generally ABV in beers in microbreweries is not allowed over 8%. - A microbrewery/brewpub license is issued by the state excise government, allowing the company to start operations in its microbrewery for commercial use. The price for this license was similar to the normal commercial large scale breweries which was over Rs. 10 lacs/ year, however due to recent developments it has gone to as much as Rs. 25,000/ year. But this figures may vary from state to state, because the excise regulations are state regulated an not centralized. An average of Rs. I -2 lac/ year should be taken in to account while plannin the investment of the project. - A separate bar license need to be applied for the pub in premises, and needs to be applied separately so that it follows state regulations. For details read the latest version of Excise rules handbook of the particular state of concern.

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EXCISE DUTY CONSIDERATIONS

Microbrewery License is issued by State Excise Rs 25,000 to 2.5 lac per year. A separate bar license will be required Tax liabilities will depend on the business model

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Other Regulatory Compliances

Commercial Electricity line Commercial water line/Underground water supply Land registrations/Lease sanction Company Registration Waste water disposal certificate from pollution control board Water quality testing certification QC certification of finished beers from govt. approved labs done randomly.

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ARCHITECTURE, FLOOR PLANNING AND INTERIORS

FACTORS SHOULD INCLUDE: Equipment positioning Electrical panels and control systems Water proof flooring and skirting Exhaust Systems Temperature control systems for various stages of brewing Drainage systems with drain cleaning provisions Number of tanks and sizes to be factored while making the floor plan

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OVERALL BREWPUB OPERATIONS

This includes, but not limited to, aspects of sourcing and procuring raw materials and inventory management Establishing and managing the various aspects of brewing operations Storage of brewed products Dispensing beers Standardizing and maintaining brew types Quality Management Systems Safety and Hazard Management Systems Training and Supervision

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Project Cost

Plant Cost ( 3 HL or 300 liters /day) 56 Lac Deposit for rentals ( may differ from place to place) 50 Lac Consultancy Charges (Micro Brewery, F&B, Interior) 20 Lac Civil Construction, Interior and Furnishing 90 Lac Kitchen Equipment 12 lac Water Softening Plant 05 lac Misc. Payments 08 lac Microbrewery and Pub License (may differ from state to state) 07 Lac Cost of Master Brewer ( 6 month) 12 lac Publicity expense 15 Lac Working Capital 3 month 50 lac TOTAL 325 Lac Total project cost may vary between 3.25 to 6.5 Cr.( Depending on origin of equipment).

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RoI
Total Carpet area of 4500 sq feet. Rental Rs.150 Rs/sq. feet. Equipment size 3hl ( 300 liters /day) Beer sale 200 liters/ day. Sale Price of beer Rs. 480 / liter Profit from food INR 30,000/day. Profit from hard liquor and other beverages INR 35,000/day. ROI between 15 to 20 month.
Assumptions: Historic data from running units.

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For More Information

Contact : Brew Shack Associates For India: Shop no: 03, Shiv Palace (Civil Lines) Gurudwara Road, Gurgaon, India Jitender Yadav. Ph: +91-8130011279. E-mail: rao_jeetu@yahoo.com

Brew Shack Associates