ABLE - Leeds School of Businessleeds-faculty.colorado.edu/marlattj/acct45405540... · considered a...

20

Transcript of ABLE - Leeds School of Businessleeds-faculty.colorado.edu/marlattj/acct45405540... · considered a...

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TABLE OF CONTENTS

1

2

3

4

5

6

7

8

9

11

12

13

14

15

16

17

Executive Summary…………………………

Process and Industry……………………….

Business Objectives…………………………

Process Objectives…………………………..

Key Performance Indicators……………

As-Is Process Maps

Cleaning and Sanitation…………..

Brewing……………………………………

Opportunities for Improvement……..

Objectives, Risks, and Controls……….

To-Be Process Maps

Clean-in-Place………………………….

Brewing……………………………………

Sanitation Checklist………………………..

Mashing Checklist…………………………..

Whiteboard Schedule……………………..

Supporting Research……………………….

Presentation Slides………………………….

Peer Evaluations

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EXECUTIVE SUMMARY

Humans have been brewing beer since the beginning of recorded history. Though ignorant to the microbiological ramifications of the boiled and fermented beverage, the ancients understood that beer did not spread illness the way their water sources fre-quently did. Since then, beer has evolved from a bitter, highly viscous drink to an as-tounding array of ales, lagers, porters, stouts and hundreds of other grain-fermented brews. Today, the popularity of microbreweries has swelled enormously and many breweries have struggled to keep pace with the burgeoning demand. This report shows that operation at full capacity to meet demand creates significant risks that can threaten the objectives of microbreweries if not meticulously controlled.

Microbreweries often operate with thin margins to compete on price with other microbreweries in the market. Therefore disposal of a tainted batch of beer connotes wasted raw materials, forfeited brewing vat space and squandered labor hours. Most sig-nificantly, however, batch disposal can be a significant blow to a brewery’s revenue stream. Due to the adverse impact of batch disposal, batch waste is a major risk inherent in a brewery’s process objective of consistent brewing precision. Four specific sources of risk can lead to a ruined batch.

First is the use of tainted or expired raw material inputs. Inferior raw materials can compromise taste, sanitation, carbonation level and other beer attributes. Secondly, insufficient sanitation procedures throughout the brewing process can similarly defect the final brewing output. Third, errors made on the bottling line can cause an entire batch to be incorrectly packaged. Under-filled or incorrectly filled bottles can lead to sanitation issues and consumer dissatisfaction. Finally, employee error is a factor at many points in the brewing process, and can lead to a ruined batch. Due to the manual nature of the brewing process and the laid-back environment of most microbreweries, employee risk is a top concern in many of the microbreweries investigated for research purposes. This reportidentifies the occurrence of employee error as the greatest risk to achieving the brewery’s objective of brewing precision.

In the following pages, you will find an overview of the brewing process. To sup-port this overview, there is a process map detailing the steps of the sanitation sub-process due to its complexity and relative significance to successful batch production. Additionally, a sample of a hypothetical brewery’s checklist control system shows the power of a simple checklist to ensure that all pertinent tasks have been fulfilled. Check-lists should be posted in the warehouse, and initialed by the applicable employee when the process step has been completed. Managerial assessment of the lists at the end of the shift ensures that employees exercise due diligence in their roles. Finally, a thorough-but not exhaustive-chart of a brewery’s objectives, risks and controls highlights some of the major areas for managerial attention during day-to-day supervision.

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PROCESS AND INDUSTRY

The microbrewing industry, also known as the craft brewing industry, has been

growing steadily in the United States over the past twenty years, increasing from 211

brewpubs and microbreweries in 1990 to over 7 times as many today. The number of

barrels produced per year by the industry has thus also naturally increased, from about

600,000 barrels produced in 1990 to well over 9,000,000 produced in 2009. A brewery is

considered a microbrewery if they produce less than 15,000 barrels a year, as designated

by the Brewers Association. Microbreweries also generally sell their goods, or a majority

of their beer produced (about 75% or more), off site. A brewpub both brews and sells its

beer (at least 25%) directly on site.

The implementation of a database is not currently a widespread practice in the

microbrewing industry. Although this seems to present an opportunity for differentia-

tion and improvement, the use of a database in conjunction with brewing operations

would prove inefficient. The small scale of a microbrewery often means room is limited;

the database entry point would likely be located inconveniently for recording daily

measurements. Even if building space permitted, having expensive electronic equipment

in the same room where brewing occurs, from a risk perspective, would not be wise. A

high risk of interaction with liquids and chemicals would not be worth substantially

more than the convenience provided. A simple checklist system meets the need of track-

ing the process inexpensively and efficiently.

Since one of the microbrewery’s most valuable assets are its recipes, some form of

electronic storage with secured access would be appropriate; the use of a database where

queries are retrieved by SQL, however, would prove to be a bad fit. Normalization of rec-

ipe data would result in a complex query requiring the joining of numerous tables. Addi-

tionally, the database format itself is not entirely conducive to recording notes or the

long and detailed instructions inherent in having a particular, specialized recipe.

The brewing process examined in this project begins with receiving raw materials

and concludes with bottling of the finished product. The aim of the proceeding recom-

mendations is to support the microbrewery’s most important business objectives dealing

with production. Issues such as disaster recovery plans, procure to pay methods, and

others, are out of scope.

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BUSINESS OBJECTIVES

The main business objective

of any microbrewery is to pro-

duce high quality, consistent

beer. Whether the brewery

wishes to produce enough to

meet demand or drive prices by

under -producing is a strategic

decision left to management. In line

with this goal of production is the

business objective of eliminating the

cost of batch waste. A wasted batch

results in direct and indirect opportunity

costs, such as wasted batch materials, wa-

ter, power, time, and employee wages.

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PROCESS OBJECTIVES

Given a microbrewery’s business objective to reduce batch waste to a

5% batch failure rate, several process objectives are necessary to achieve this

benchmark. These objectives apply to all parts of the brewing process be-

ginning with raw materials and concluding with bottling.

Top Quality Ingredients Used

Shipments received are of required quality

All ingredients are stored accordingly, accurately, and consistently

Materials inspected upon brewing initiation have maintained quality

Cleaning and Sanitation Prove Thorough, Consistent, and Accurate

Temperatures required for relevant processes are kept within optimal range

Cleaning procedures are performed for minimum established times

Optimum amount of cleaner or sanitizer is implemented, avoiding equipment

damage, ineffective work, and chemical waste

Solution pH levels are at par and recorded

Microbiological sampling assures quality and detects any emerging problems

Bottling Machinery Supports Production

Specified settings confirmed and utilized when in use

Up-to-date log of past machinery problem and resolution methods kept

Multiple employees trained to be knowledgeable of operation and mainte-

nance of system

Regular maintenance and proper care reduces or eliminates major emergency

breakdown problems

Employee Error Minimized

Utilization of a CIP system eliminates much of human error aspect

Detailed manual is created, available, and followed

Checklist system ensures thoroughness of daily required processes

Limitation of “E” Beer to further minimize employee error

Insufficient labor availability avoided by having on-call employees

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KEY PERFORMANCE INDICATORS

A major business objective of microbreweries is to reduce the costs

related to forfeited raw materials and labor. This can be achieved through

the reduction or elimination of spoiled beer batches. In order to measure

and track a microbrewery’s success in disposal reduction, several qualitative

and quantitative metrics can be applied on a daily, monthly and periodical

basis.

Daily Indicators Process checklists are completed and initialed by designated employees at day

end Sanitation temperature readings are verified to be maintained in optimal

range Daily pH, chemical and microbiological readings on current brew are within

acceptable ranges. Initialed by designated employee Sanitizer concentration at correct level “E” beer inventory at expected level when verified by manager at day end to

account for distribution

Monthly Indicators Raw ingredient disposal due to spoilage is not greater than 2% of total ingredi-

ent shipments received Raw ingredient disposal due to contamination is 0% of total ingredient ship-

ments received Yeast used up to 85% of its maximum useful life: 6 of 7 yeast generations Damaged cans or bottles returned for recycling and remolding limited to 5%

of total packaging materials used during month

Yearly Indicators Emergency maintenance reduced to 10% over regularly scheduled mainte-

nance No employee write-ups for improper conduct while on duty written for the

period 0% batch spoilage due to downtime related to insufficient labor availability 0% batch spoilage due to incorrect machinery settings ≤ 5% batch disposal

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ASanitize with Heat

or Chemicals

Boiling Water/Steam

Sanitation

Iodophor

Add equipment to boiling

water

Let Boil for 10 Minutes

Add boiling water to

Large equipemnt

Measure 1 Tbl. Spoon per 5 gal.

water

Let equip. sit for 2

min

Do Not Rinse

Heat

Chemicals

End

Sanitation

Cleaning

Flush Containers and beer lines with hot water

Pressurized or recirculating

Alkaline or Detergent

Flush Containers and beer lines with hot water

Alkaline or Detergent

Let stand

Thoroughly rinse all chemicals from

equipment

A

Scrub All Equipment

Start

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AS-IS BREWING PROCESS MAP

Raw Materials Warehouse Mashing Tank Fermentation Tank Bottling

No

Yes

Yes

No

Cleaning/Sanitation of Equipment

Boil and add hops

Record Hydrometer

reading

Add yeast

From Supply Process

Heat water to desired

temperature

Move beer to Bottling Facility

Cleaning/Sanitation of Equipment

CSTART

End

Transfer beer into bottles

Check taste and color

Correct Taste and

color?

Ale recipe

A

Dissolve and add Priming

Sugar

Extract solid grain leaving

wort

Raw Materials Storage

Ferment

Apply Label to bottle

B

Dispose of batch

Decide Recipe

Recipe Book

Add malted barley

C

Quickly cool wort

B

Package for Delivery

Specialty Recipe

A

Cleaning/Sanitation of Equipment

Move wort to fermentation

tank

Correct Gravity?

Put bottle caps on bottles

Lager Recipe

Gravity Log

Check gravity

Steep

Extract Yeast if younger than 5

Generations

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OPPORTUNITIES FOR IMPROVEMENT

Though the brewing process has been around for thousands of years, it continues

to evolve in response to changes in consumer tastes, new technology, and market com-

petition. Due to growing demand for the unique and premium beer produced in micro-

breweries, many new breweries have recently entered the market. This has increased

the competitiveness of an industry that already operates at a high capacity. While out-

side the brewery competition remains strong, inside we have found most breweries have

an extremely laid-back culture. This schism in environments has proven to be a source

of significant process risk to many breweries, and thus is an area for improvement.

In several breweries visited for research purposes, we found they had two risky

attributes in common. First, they have very laid-back atmospheres, and second, the easy

availability of “E” beer, or beer that is unfit for sale. While these attributes are relatively

harmless individually, when paired, they can indicate a source of employee error. Con-

sumption of the product while on the job was a major source of error in the bottling

process for Oskar Blues brewery in Longmont, CO, since employees became complacent

after a few too many “E” beers. This led to error in bottling machine settings, which

could cause under or over-filling, or timing errors. Additionally, complacency could be a

significant risk to the sanitation process. The necessity for significant attention to detail,

and the adherence to strict sanitation procedures ensures that a batch is not lost to con-

tamination. Any lapse of responsibility due to indiscretion could potentially result in

the loss of a batch since sanitation is a significant issue throughout the entire process.

Simply by limiting access to the “E” beer, managers can control this problem eas-

ily and inexpensively. Either through keeping an updated inventory of the “E” beer, se-

curing it during work hours, or disposing of “E” beer completely, managers can ensure

that beer is being safely consumed after hours only.

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OBJECTIVE, RISKS AND CONTROLS O

bje

ctiv

e

Are

a

Ris

k

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ater

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icro

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aw m

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anit

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on

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trat

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in

-su

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ow

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est

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on

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bia

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ven

tive

9

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Ob

ject

ive

A

rea

R

isk

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isk

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ev

el

Co

ntr

ols

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on

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l T

yp

e

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e-T

un

ed

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ott

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g

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cess

Mac

hin

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ttin

gs

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rop

erly

set

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to

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ch r

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der

ate

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eck

mac

hin

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bat

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ype

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ith

em

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yee

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tive

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igh

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to "

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can

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ead

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in

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cati

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e jo

b a

nd

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ror

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acc

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to "

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l af

ter

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rk s

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ts e

nd

; w

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ly

allo

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ce f

or

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bee

r. S

ecu

rity

of

"E"

bee

r in

th

e co

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no

ny-

mo

us

rep

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sys

tem

to

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by

fell

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em

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.

Pre

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tive

/ C

orr

ecti

ve

10

OBJECTIVE, RISKS AND CONTROLS CONT’D.

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11

Dedicated Rinse Water Tank

CIP Tank

CIP Supply Pump

Start

Adjust T.A.C.T (Time, Action, Temperature,

Chemicals) settings for CIP

system

Start the automatic operation

Fill tanks with water

Add chemicals

Heat Water with heat exchanger

Tank needing cleaning

Tank needing cleaning

Tank needing cleaning

CIP Return Pump

CIP Return Pipeline

Modeled after the Niro Inc. Clean-In-Place System

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Raw Materials Warehouse Mashing Tank Fermentation Tank Bottling

Raw Materials Storage

Decide Recipe

Steep

Extract solid grain leaving

wort

Boil and add hops

Add malted barley

Quickly cool wort

Add yeast

Ferment

Record Hydrometer

reading

Correct Gravity?

Check gravity

Move wort to fermentation

tank

Heat water to desired

temperature

Dissolve and add Priming

Sugar

Move beer to Bottling Facility

Check taste and color

Correct Taste and

color?

Dispose of batch

CIP (Clean-In-Place

Process) on all

Equipment

CIP (Clean-In-Place

Process) on all

EquipemntCIP (Clean-

In-Place Process) on

all Equipment

Transfer beer into bottles

Put bottle caps on bottles

Apply Label to bottle

Ale recipe

Lager Recipe

Specialty Recipe

A

A

B

B

No

Yes

Yes

No

C

CSTART

From Supply Process

Package for Delivery

End

Database

Database

Record New inventory

Database

Extract Yeast if younger than 5

Generations

TO-BE BREWING PROCESS MAP

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# Instruction Check 1 Prepare brewing area, making sure all supplies, equipment, and ingredients are at hand. Budget at

least 5 hours for a brewing session.

2 Check propane tank volume (at least 1/3 full).

3 Inspect HLT, mash tun, and boil kettle for cleanliness.

4 Install mash tun and boil kettle false bottoms.

5 Attach water supply hose to manifold.

6 Check all valves- OFF

7 Main water supply (hose)- FULL ON

8 HLT siphon / (water inlet) valve- ON

9 Fill HLT to desired sight glass level.

10 HLT siphon / (water inlet) valve- OFF

11 Add water salts to HLT as required.

12 Main propane tank master valve- FULL ON

13 HLT burner needle valve- CRACK ON

14 Ignite HLT burner and adjust to desired level, checking that no hoses are in proximity to flame.

15 Lower (boil kettle plumbing) manifold water supply valve- FULL ON (to fill boil kettle with fresh water)

16 Boil kettle whirpool valve- FULL ON (second valve needs to be open for fresh water to run into boil kettle)

17 Fill boil kettle with water equivalent to batch size +25%

18 Lower Boil Kettle manifold water supply valve- OFF

19 Add appropriate volume of sanitizer to boil kettle, stir to mix. (recommended to use iodophor sanitizer)

20 Place chiller wort outlet hose in fermenter.

21 Wort chiller inlet valve- FULL ON (see boil kettle manifold)

22 Fill fermenter with sanitizer solution drained through boil kettle, chillers and chiller wort out hoses

23 Wort chiller wort inlet valve- OFF

24 Boil kettle dump valve- OPEN

25 Drain remaining sanitizer solution.

26 Boil kettle dump valve- OFF

27 Lower (boil kettle) manifold water supply valve- FULL ON

28 Refill boil kettle with rinse water.

29 Lower (boil kettle) manifold water supply valve- OFF

30 Boil kettle dump valve- OPEN

31 Drain rinse water from boil kettle.

32 Boil kettle dump valve- OFF

33 Boil kettle whirlpool valve- OFF

Date: Batch ID: Employee:

SANITATION CHECKLIST EXAMPLE

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MASHING CHECKLIST EXAMPLE

# Instruction Check

1 Check HLT thermometer for target temp.

2 When HLT temp at target, open mash tun E-Z fill Arm valve and monitor HLT sight glass for proper volume.

3 HLT burner valve- OFF (turn off burner)

4 Mash tun E-Z fill valve- OFF (when desired volume reached)

5 Mount step ladder and dump crushed grain into mash tun, mixing thoroughly. (you can use a wooden dowel or special "brewer's spur-tle" to break up all clumps and expose to the hot liquor (water).

6 Place lid on mash tun. Temp/Time

7 Check and record strike temp.

8 Note time (start of mash).

9 Stir mash every 15 minutes.

10 At 15 minutes prior to end of mash: HLT burner valve- CRACK ON (make sure there is still water in the HLT) Temp

11 Ignite HLT burner and bring liquor (water) up to lauter temp. (approx 168F - recommended mash-out temp)

12 At end of mash, remove mash tun lid.

13 Perform starch conversion (iodine) test, if desired. Color

(Iodine test must be performed by taking a disposable sample in a cup, and adding a few drops of iodine. If the sample turns blue, starch conversion is not complete. If it remains it's yellow color, starch conversion is complete. Dispose of sample and do NOT add back to mash.)

14 Install lauter/sparge arm.

15 Lauter/sparge arm valve- OPEN ½ Level

16 Record HLT sight glass level.

17 When liquid level is 2 inches above grain bed, crack open mash tun drain hose valve and drain wort into clean container until it runs clear (approximately 1-2 quarts).

18 Mash tun drain hose valve- OFF

19 GENTLY return drained wort to top of mash tun.

20 Install mash tun drain hose into boil kettle.

Date:

Batch ID: Start: Employee: Stop:

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Page 18: ABLE - Leeds School of Businessleeds-faculty.colorado.edu/marlattj/acct45405540... · considered a microbrewery if they produce less than 15,000 barrels a year, as designated by the

Mountain Sun Pub 303-546-0886

[email protected]

Brewery Tour 9/25 notes

Sourcing: Hops from Hops Union.

Yeast: used for 5 generations (cost effectiveness, flavor consistency) (collected from top of brew, generally can be used for 7 generations max)

Water: Boulder Municipal water

Grain: after wort extracted, grain byproduct donated to nearby farm for feed/compost (picked up by farm, no transport costs incurred)

Success: “Hippie” space/culture, trying to stay small, closely-held. No TVs, put out Scrabble/board games.

Variety: 20 beers on tap at all times (which is uncommon, most other brewpubs have no more than 10 on tap)

Bottlenecks:

Time: It takes 2 weeks for an ale and 2 days for a lager to properly brew/age. (brewing is usually done 2 -4 times a week)

Space: Have 6 barrels on location, and can’t start a new batch until the bar-rels are transferred to fermentation tanks, then kegged (2 kegs/tank).

Storage: Share a warehouse with Avery, store kegs there.

Cleanliness: of utmost importance. Bacteria hurts yeast and can mottle a batch. Cleaning can take as long as brewing and is done by all employees.

Hoses, tanks, tools sterilized after every batch.

Almost no wasted batches due to spoilage. They are very proactive about cleanliness. Beer not meeting the quality set by the brew master can be ad-justed; most common problem can be solved by recharging, a process where CO2 or nitrogen can be pumped into the serving tanks.

No filtering, except natural “flocculation” through Irish Moss.

Avery Brewing Co. Jon Moldenhauer, CFO [email protected] 303-440-4324

Daily Tours 4 PM weekdays, 2 Pm weekends

Oskar Blues Jim Weatherwax

[email protected]

303-823-6685

Boulder Beer Company Dan Weitz

[email protected]

CU Going Local: Brewing Workshop Taught by: Brewmaster Mike

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SUPPORTING RESEARCH

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PRESENTATION SLIDES

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PRESENTATION SLIDES CONT’D.