The Brewers' Guardian by Brightsky Design Limited

The international brewing industry magazine

volume 138 • number 6 • JUNE 2009 www.brewersguardian.com

Belgium’s other multinational How Duvel Moortgat succeeds with premium brands Michel Moortgat, CEO

n Special report: brewers and suppliers increasingly at odds over payment terms

The international brewing industry magazine

volume 138 • number 6

starters

cover story 10 Duvel Moortgat

Old–style charm meets new world savvy. Welcome to Duvel Moortgat, a Belgian brewer succeeding with brand quality, an innovative culture, and a willingness to expand by acquisitions both at home and abroad. Editor Larry Nelson meets with CEO Michel Moortgat

Backgrounder Molson Coors (UK) takes hold of Cobra’s fortunes

People all change at the top amongst British brewing nationals

features

regulars

16 Industry/supplier relations

Now & Then

Editorial

Contests

AB InBev has been roundly criticised in the media for extending payment terms to 120 days but, as Brewers’ Guardian has learnt, they’re not alone, as Heineken and Carlsberg have also extended payment periods. Is this the new industry norm? Report by deputy editor Rob Brown

30 Industry news 33 Trade directory

20 Viral marketing

Welcome to the latest frontier in marketing, videos that prove to be so original that they receive the ultimate seal of approval by having people pass them on to their contacts. The catch is embracing the surrender of control – yet there are ways of improving the odds of success, explains marketing editor Pete Brown

14 Stats Snapshot

35 Classifieds

24 Filtration survey

The future is clear, at least partially, regarding filtration technology. Kieselguhr is on the way out, condemned by a desire for more eco- friendly methods. What replaces diatomaceous earth is another matter, however. Deputy editor Rob Brown surveys industry opinion

38 Guest columnist

In a consolidating industry it can be dangerous to be too inward-looking, no matter the size of the company, even those global in scope. There are diminishing returns on intellectual capital for the self-congratulatory, warns Anders Hummer

next month 38

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Brewers’ Guardian, June 2009

n Thailand’s brewing industry n The wonders of drinktec n Charlie Bamforth returns

BAckgrounder

Molson Coors buys Cobra Molson Coors (UK) says it is confident it can progress the fortunes of Cobra premium lager, entering a joint venture with a group of Cobra Beer shareholders after the company went into administration at the end of May

obra was snapped up through a so-called ‘pre-pack administration’ before the business could be offered on the open market. Molson Coors’ UK arm acquired a 50.1% share in the joint venture for £14 million. The partners, holding 49.1%, are fronted by visionary Cobra founder Lord Karan Bilimoria. “Actually Cobra is already an extremely good brand, so we probably don’t have to do a great deal to generate consumers,” said Molson Coors (UK) strategy director Simon Cox, a member of the board of the joint venture, Cobra Beer Partnership. “The business plan [for Cobra] was getting increasingly difficult to support through the credit crunch and the recession. Turning the business around is probably as simple as lifting what we consider to be a great brand and putting that in our infrastructure. We can support that fully.” The deal rose from the ashes of a failed bid by Cobra Beer to set up a Company Voluntary Agreement (CVA), which would have guaranteed all unsecured creditors some – but not all – of the money they were owed. Cobra had run up debts estimated at £75 million. Amongst the creditors is Wells and Young’s, the British regional that brewed Cobra lager exclusively for years after production was shifted from

1st German Hop Day Tettnang, 21/22 August 2009 To further the dialogue with the brewing industry the German hop growers (Association of German Hop Growers, Hop Growers Association Tettnang and HVG Hop Growers’ Cooperative) invite engineers and buyers from breweries throughout the world to participate in the event which takes place from 21-22 August 2009 and is themed “From farmer to brewer”. Renowned scientists and brewers from all over the world will present and discuss the question whether beer still needs aroma hops – and in what amount, if at all. In addition to the papers and speeches announced the comprehensive programme also includes a boat trip on the Lake Constance and a visit to the opera Aida by Giuseppe Verdi at the Bregenz Festival on Friday night and guided tours through the hop museum and hop research centre (keyword: Hop harvest – live!) on Saturday. A registration form and the detailed programme are available at www.deutscher-hopfen.de (the number of participants is limited)

India in 1997. With Cobra Beer’s debt to Wells & Young’s reaching into “seven figures” according to managing director Nigel McNally, the company had stopped brewing Cobra. On the advice of its insurers Wells and Young’s opposed Cobra Beer entering into a CVA. McNally expects that his firm will recover all amounts owed thanks to said insurance. “I think it’s very disappointing particularly since we have nurtured the brand right from the start,” he commented. “It’s a sad way to end the relationship but we wish them all the best for the future.” Launched in 1989 as an ‘exotic, less gassy’ brew, Cobra Beer experienced meteoric retail sales growth of some 40% a year in the past two decades, yet has never turned a profit. In 2007 the firm reported losses of £13 million. Volumes were in the region of 260,000 hectolitres. Cobra was put up for sale in November last year but failed to attract a bid or partnership that would allow Lord Bilimoria, an India-born peer, to realise his ambition of taking a 10% slice of the Indian market by 2012. Since its launch Cobra has poured some £40 million into marketing and the brew is exported to 50 countries. With Cobra available in some 6,000 Indian restaurants in the UK, in recent years the firm has focused on the pub trade. Molson Coors expects to bring production of Cobra to its Burton plant within the next six to nine months. For now Cobra and its brand extensions are produced by Camerons Brewery in northeast England and by Palm Breweries in Belgium. Cox added that he expects the brand to be turning a profit for the new partnership “very quickly.” Cobra Beer Partnership controls the global rights for the brand, with the exception of the Indian sub-continent. A spokesman for Lord Bilimoria told BG that he will continue “to develop” the Cobra business there. Cobra Beer bought its first brewery equity – the brand has been produced under licence from its beginnings – in 2007, a 230,000 hectolitre brewery in the north-east state of Bihar, the fruits of a controlling stake in Iceberg Industries. Cobra and Lord Bilimoria have never lacked ambition: in 2008 then CEO Adrian McKeon said Cobra would be building two or three greenfield breweries in India, to be commissioned within three years. Today that ambition lies in tatters. © Advantage Publishing Ltd

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Brewers’ Guardian, June 2009

news

Orlowski named as S&N UK head

Davies departs Molson Coors

Stefan Orlowski, Heineken’s group commerce director, has been tapped to head Scottish & Newcastle UK following the shock departure of Jeremy Blood last month. Orlowski, who takes over as managing director from the beginning of July, is a qualified barrister and solicitor of the Supreme Court of Victoria, Australia. He entered the brewing industry in 1992, working with a private brewery investment group. In 1998 he joined Heineken’s Polish business Zywiec as sales, marketing and distribution director, and has subsequently filled numerous roles within the multinational. “I’m delighted that Stefan has accepted this critical leadership role in one of our highest priority markets,” said Heineken CEO Jean-François van Boxmeer. “He has the right attributes and experience to address the considerable challenges of the UK market.” Blood quit his post with immediate effect for unexplained personal rea-

Molson Coors (UK) is in the market for a new marketing director following the announcement that Simon Davies is to leave the business at the end of September. Davies leaves Molson Coors (UK) after 13 years with the business, with plans to set up a specialist marketing consultancy. “People will say I’m crazy to be leaving at the top of my game to set up a business in one of the worst recessions in living memory, but I wouldn’t be doing it if there wasn’t a good reason,” explains Davies. His work on diversifying Molson Coors brand portfolio, as well as his strategic support behind Project 10, the alcohol industry’s response to government pressure to address irresponsible drinking, were lauded by MC(UK) chief executive Mark Hunter. “Simon has made a material contribution to Molson Coors (UK) and we are sorry to be losing him,” said Hunter. “Carling, the UK’s No 1 beer

Orlowski: joins in July

sons in mid-May. He joined S&N after graduation and became managing director of the brewer’s UK operations in December 2007, retaining the role after Heineken took control of S&N’s UK operations in April 2008. According to Heineken, a successor to Orlowski as group commerce director is to be announced in due course.

Davies: starting consultancy

brand, continues to grow its value.” Those interested in Davies’ role may have their appetites whetted by the thought of a £70 million budget, and the recent success of Carling’s 100% British Barley campaign. Also on tap is a further four-year commitment to domestic football’s Carling Cup and the number one i-phone application, the i-pint (see page 21).

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Brewers’ Guardian, June 2009

brewers’ now & then guardian

JULY 15th-17th: Propak China 2009, 15th International Processing, Packaging and End-Line Printing Exhibition, SNIEC, Shanghai, China Contact: Mark Szandrowski, Overseas Exhibition Services T: +44 (0)20 7840 2108 F: +44 (0)20 7840 2111 E: mszandrowski@oesallworld.com W: www.propakchina.com

CONFERENCES AUG 21st-2nd: 1st German Hop Day, hotel Rad, Tettnang, Germany Contact: Deutscher Hopfen T: +49 (0)7542 52 136 E: tt-hops@tettnanger-hopfen.de W: www.deutscher-hopfen.de OCT 1st-4th: 2009 Master Brewers Association of the Americas Convention, La Quinta Resort & Club, La Quinta, California, USA Contact: Beth Elliott, MBAA Education Co-ordinator T: +1 651 454 7250 F: +1 651 454 0766 E: mbaa@mbaa.com W: www.mbaa.com

EXHIBITIONS JULY 15th– 17th: China Bevtek 09, Shanghai New International Expo Centre, Pudong, Shanghai, China Contact: Marek Szandrowski T: +44 (0)20 7840 2108 F: +44 (0)20 7840 2111 E: mszandrowski@oesallworld.com W: www.chinabevtek.com

NOV 24th-28th: SIMEI 2009, Fiermilano, Rho (Milan), Italy Contact: Press & Information Dept T: +39 02 7222281 F: +39 02 866575 E: info@simei.it W: www.simei.it

FESTIVALS AUG 4th-8th: Great British Beer Festival, Earls Court Exhibition Centre, London, England Contact: Kim Carvey, marketing manager, Campaign for Real Ale T: +44 (0)1272 867201 F: +44 (0)1272 867670 E: kim.carvey@camra.org.uk W: www.camra.org.uk

Two decades ago, the industry was beginning

• In an open letter to Lord Young, the then secretary for trade and industry, Britain’s regional brewers’ reiterated objections to the MMC recommendations, which included the imposition of a 2,000 premises ceiling on the number of pubs breweries could own. The letter, printed in BG and signed by the bosses of 48 breweries, contended that, if enacted, the proposals would bring about less consumer choice, no lowering of prices, fewer and larger pub owning companies and job losses. It concluded: “We urge you to reject these highly damaging recommendations.”

to wake up to the opportunities of more

June 1999

accessible and affordable IT solutions June 1989 • A brave new world of automated brewing was taking shape, as BG’s lead feature demonstrated. In a piece entitled Automation for the Masses, Chris Partridge outlined how the micro-processor was transforming the industry. Partridge posited that programmable logic controllers and broadband would feature heavily in brewing’s future, but they would never become king. He concluded: “even the greatest fans of automation in brewing admit: there’ll be no substitute for the skilled head brewer.” • The backlash from the Monopolies and Mergers Commission’s Beer Orders – made public a month earlier – rumbled on with claims that the planned changes to the rules governing pub tenants would hit Britain’s medium-sized brewers as hard as the big players. BG editor Hazel Thompson suggested the proposals would place too much control over premises in the hands of tenants and the imposition of a duty to stock guest beers could “leave the brewer with a pub in which virtually none of his own products were being sold.” 6

SEPT 14th-19th: drinktec 09, New Munich Trade Fair Centre, Munich, Germany Contact: Messe München T: +49 89 949 11318 F: +49 89 949 11319 E: info@drinktec.de W: www.drinktec.de

• The world was bracing itself for the awakening of China. And brewers were expecting the country to be in need of a drink as it shook off its slumber. Accordingly, a number of British associations were offering advice to beer-producers looking to tap into this promising but daunting market. The Department of Trade and Industry’s Sue Laker told a meeting of potential exporters that the market, with per capita consumption of 15 litres, offered much but “open dialogue” with the Chinese authorities was essential. (Editor’s note: a decade on, Chinese drinkers are sinking nearly 30 litres each a year on average.) • Dutch group Royal Schouten bought British hop merchant Morris Hanbury Jackson LeMay out of administration in a bid to build on its activities in the global brewing sector. Operating under the name Morris Hanbury International Hop Merchants, the firm set up base at the Dutch firm’s UK home in Kent. As the merchant enjoyed a new lease of life from the takeover, David Hanbury told BG that the firm’s focus would be increasingly international over coming years. He said: “The UK market is sluggish. There are greater opportunities, in the short term, overseas, where 60% of our current business is.” © Advantage Publishing Ltd

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Brewers’ Guardian, June 2009

The Brewery Manual 2009 is your definitive guide to the UK alcoholic drinks industry. Keep abreast of a changing world – each edition is an up-to-date snapshot of the rapidly changing scene. There are hundreds of new entries and thousands of updated entries. The Manual lists every UK brewer, from micro, regional and super-regional to the national brewers. There is a complete listing of beer brands, including imports and those brewed under licence. It provides comprehensive contact details of brewing companies, maltsters, hop merchants, cider makers, wine producers, whisky distillers, pub company operators, drinks importers and wholesalers, suppliers to the alcoholic drinks industry, and many more. Unique to The Brewery Manual is the Who's Who, a listing of influential figures in the brewing, Scotch whisky distilling and alcoholic drinks retail trades. It is an invaluable resource for background on the industry’s most compelling figures.

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editorial

Dream on Volume 138, No 6 Editor Larry Nelson Tel: +44 (0)1737 221232 Email: larry@advantagepublishing.co.uk Deputy Editor Rob Brown Tel: +44 (0)1737 225870 Email: rob@advantagepublishing.co.uk Marketing Editor Pete Brown Tel: +44 (0)7941 123048 Email: petebrown@stormlantern.co.uk Contributors Anders Hummer Commerical Development Manager Kamini Dickie Tel: +44 (0)1737 225496 Email: kamini@advantagepublishing.co.uk North American ad sales Michael Wile Tel: +1 416 531 1483 Email: ads@lrcreview.com Office Manager Nigel Smith Tel: +44 (0)1737 224294 Email: nigel@advantagepublishing.co.uk Design & Production Cheeky Lobster Email: info@cheekylobster.com Published by Advantage Publishing Ltd 3rd Floor, Alma House, Alma Road, Reigate, Surrey, RH2 0AX UK www.brewersguardian.com Email: info@advantagepublishing.co.uk Subscriptions UK and Europe £75.00 US & Canada US$220 RoW £130.00 Cheques made payable to: Advantage Publishing Ltd Subscription enquiries to: Nigel Smith Tel: +44 (0)1737 224294 Email: nigel@advantagepublishing.co.uk © Advantage Publishing Ltd 2009 Printed by Newman Thomson Ltd, Burgess Hill, UK ISSN 0006-9728

The Forum of Private Business, a lobby group for small businesses in the UK, was recently angered enough to include InBev in its late payers Hall of Shame. With InBev extending payment terms for suppliers, coupled with the comment that it wanted to move from the “biggest to the best”, the FPB’s chairman, Len Collinson, saw red: “Not only was this decision taken without the consent of InBev’s suppliers but also they were given less than month’s notice of the change. Many suppliers of the firm will find it difficult to adapt and will have problems with their cash flow.” The kicker is that Collinson’s comments, and InBev’s Hall of Shame induction, date back to May 2007 when InBev moved its payment terms goalposts from 30 to 60 days. InBev, perhaps needless to say, remains in the Hall of Shame. Now, of course, the further enlarged AB InBev is demanding where it can 120 days for invoices, and in many instances is able to obtain these extensions despite the protests of suppliers. For evidence, turn to page 16 of this issue, where numerous suppliers make clear that squeezing of their cash flow is resulting in real hardships for them. AB InBev may have taken the lead, but their multinational peers such as Carlsberg, Heineken and Diageo have subsequently moved to extend their payment periods. Interestingly, Carlsberg’s leadership paid InBev a backhanded compliment, with Carlsberg Group CEO Jorgen Rasmussen recently describing its rival as a “brutal cost-cutting machine” and that more needed to be done to improve efficiency in tough times. Apparently Carlsberg’s efficiency drive includes extending payment terms, in some instances of up to 95 days. The burden of extended payment terms courses through the entire cash-infused bloodstream of the supply chain. As an integral part of the brewing industry, Brewers’ Guardian,

and its owner, Advantage Publishing, are not immune. We have received communications from a number of advertisers advising us that they need to extend their payment terms, mostly from 30 to 60 days, because they in turn are waiting for payments from brewers. In one instance we have been informed forthrightly by an advertiser that they are unable to pay until they in turn are paid by their brewing customers. One hundred and twenty days for payment, plus whatever additional days are tacked on from receipt of invoice to the end of the month, is a long time to wait for payment by anyone’s standard. One wonders how long it will be before payment terms are extended even further. The other question is whether this furore is a temporary blip, until the global economy returns to growth and/or massive loans are paid down to a point where cash flow concerns ease. The best guess is that once these measures are in place a climb down is unlikely – suppliers will adjust and cope. But the next round of negotiations will lead to sharper bargaining, perhaps with suppliers demanding higher prices to offset the cash flow hit. It’s possible to imagine the economic benefits of extended payment periods being eroded in the long term, and that’s not including an increased unwillingness on the part of some suppliers to enter into contracts at all with some multinationals. Today AB InBev’s Internet home page proudly states “Our dream is to become the Best Beer Company in a Better World.” Dream on: until something is done that recognises payment term extensions are adding undue and untold stress to suppliers who are being buffeted by the same economic headwinds as their brewing customers, this vision will never become reality.

Larry Nelson editor

This publication is supplied on the following conditions: 1 All rights reserved: no part of this publication may be stored in a retrieval system, abstracted, reproduced, distributed or transmitted (which in each case includes doing so in any form or by any means, electronic, mechanical, photocopying, recording or otherwise) without the prior written permission of the publisher, or under the terms of a licence issued by the Copyright Licensing Agency whose address is 90 Tottenham Court Road, London W1P 9HE, UK or rights organisations in other countries that have reciprocal agreements with the Copyright Licensing Agency – 2 It may not without the prior written permission of the publisher be exported, distributed or circulated outside the staff who work at the address to which it is sent by the publisher – 3 While due care has been used in compiling this information, the publisher makes no claim that it is free of error or fit for any particular purpose and to the fullest extent permitted by law SPECIFICALLY DISCLAIMS ALL OTHER WARRANTIES (EXPRESS OR IMPLIED) INCLUDING BUT NOT LIMITED TO ANY IMPLIED WARRANTY OF QUALITY OR FITNESS FOR ANY PARTICULAR PURPOSE. In addition the publisher does not accept liability to anyone for the consequences of any decision or action taken (or which any person refrains from taking) in reliance on any information contained herein – 4 Further terms and conditions apply to any contract under which this publication is supplied and are available from the publisher on request

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Brewers’ Guardian, June 2009

contest

Win! Signed copies of Hops and Glory While it’s a bit of a cliche, the best, most inspired, ideas often emerge from idle moments over a pint – such is the case with Pete Brown’s latest book, Hops and Glory. This is Pete’s hilarious and touching account of his recreation of the voyage of India Pale Ale, from its birthplace in Burtonon-Trent, the heart of English brewing, to its ultimate destination of the docks of Calcutta (today’s Kolkata). Surprisingly, given its former importance as the shipping route that united Great Britain with its colonial empire, one put paid to by the opening of the Suez Canal, Pete is the first person in 140 years to follow the fabled sea route round the Cape of Good Hope off Africa’s southernmost tip. And with a hint of authenticity Pete brings with him ‘Barry’, a barrel of authentic IPA brewed in Burton by Steve Wellington of the White Shield brewery in Burton.

What transpires is a memorable four month journey of discovery, not so much about beer as about adventure itself, brought to life by Pete’s eye for observation coloured by his wry sense of humour and entertaining writing style. This is a highly recommended read. Brewers’ Guardian has five signed copies of Hops and Glory as prizes for lucky readers. To enter simply email your name, company, and snail mail address to Nigel Smith at Advantage Publishing – nigel@advantagepublishing.co.uk. The deadline for entries is 31st July. Only one entry per BG reader accepted. Hops and Glory is published in Great Britain by Pan Macmillian, hardback copies priced £14.99. Pete Brown is Brewers’ Guardian’s marketing editor. His previous beer-related books are Man Walks into a Pub and Three Sheets to the Wind.

Not your copy of Brewers’ Guardian? Keep up-to-date with industry trends and news For circulation enquiries, contact: Nigel Smith E: nigel@advantagepublishing.co.uk

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Brewers’ Guardian, June 2009

COVER story

Succeeding with quality Duvel Moortgat is an international brewer with a difference, boosting sales with an all-premium and speciality brand portfolio while protective of brewing traditions. Editor Larry Nelson reports from Belgium on an innovation success story

magine a brewer with a portfolio consisting exclusively of premium beers. Bucking recent downward industry trends, its most recent financial results indicate rude, robust health with turnover in 2008 up 15.5% over the previous year. All its key brands, save one, record sales gains. Looking ahead, the most telling indicator of financial health is the brewery’s capex forecast for 2009, at 14.7 million euros a slight increase over the 1.6m euros invested in 2008. This, of course, is in stark contrast to sharp reductions announced by other multinational brewers. The brewer in question is Duvel Moortgat, in business since 1871 and today led by CEO Michel Moortgat, a fourth-generation descendent of founder Jan-Leonard. The Moortgat brewery remains where the beer was first brewed; the family’s farmhouse remains intact, remodelled for use today as offices and the visitor’s centre. Today there’s a lot to admire about Duvel Moortgat, as a brewer and as a business. The company has been consistently profitable over the last decade. Its leadership, Moortgat and chief operating officer Daniel Krug, have been confident enough to expand both internationally and at home via acquisitions, improving long-term commercial sustainability. The brand portfolio has been fleshed out of late, with a bevy of product launches combined with brands acquired through acquisitions. And then there’s quality, front and centre: during a private brewery tour with director of quality Dimitri Staelens, a recent arrival from InBev, the discussion focuses on, well, quality. It’s evident throughout – hops, lots of aroma hops, kept chilled; a state-of-the-art Krones brewhouse that helps keep the colour of the beer pale, especially namesake Duvel. Even the arrangements for visitors are impressive, with copper cladding on the brewhouse exterior, and an enclosed aromatic cedar walkway that extends around the brewhouse, allowing viewing yet at the same time keeping thousands from traipsing through the production areas. 10

New look Liefmans: plus a brand extension

Quality is evident everywhere, and given prominence in DM’s latest annual report, with a page elaborating the company’s long-term commitment to the ideal. (Even the report speaks of quality: it is hard covered, an unusual expense in today’s cost-conscious world.) A suggestion is made that T-shirts for the staff emblazoned with ‘quality’ wouldn’t go amiss, an idea that elicits a wry laugh from Moortgat. “I repeat it every time, every time. I always repeat the same: at the end of the day it’s the quality of the beer that matters,” he says. “It’s quality of the ingredients; quality of the installations; but it’s mainly the quality of the people at the end of the day that make the beer.” The question, then, is this: how does an expansionist brewer – a multinational brewer at that – thrive with a portfolio consisting of low volume yet high margin speciality and premium beers? One that is committed to authenticity and tradition, qualities that become apparent in the immediate aftermath of the acquisitions of fellow Belgian beer specialist Achouffe and Liefmans?

The 10-year ambition First, a brief digression. Legend has it that in the 1920s a drinker described the taste of the firm’s post-World War One Victory Ale, as “a real Devil,” in Dutch “Duvel”. The 8.5% abv strong golden ale would become a byword for Belgian ales, its fame later allowing its appendage to the Moortgat name. Its distinctive glass broke new ground in the late 1960’s by being the first tulipshaped vessel for beer. The narrowing at the neck enhances aroma; etchings in the base of the glass, today patterned as a ‘D’, encourages nucleation. Fast forward to the 1970s when a partnership with Tuborg, brewing and distributing the Danish lager gave Duvel Moortgat routes to international markets. This arrangement would end in the 1980s. By the end of the 1990s there was a realisation that in a soon-to-consolidate market that Duvel Moortgat was exposed in business terms, too reliant on one brand, Duvel, and on its home market of Belgium. At that time management

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Brewers’ Guardian, June 2009

cover story

made a commitment to expand internationally, and to broaden its portfolio. The former objective was addressed more immediately than the latter. Following a capitalinfusing stock market listing in 1999 Duvel acquired a 50% stake in Vedett Extra White: Bernard Brewery in the appeals to younger drinkers Czech Republic, like itself a producer of specialist beers and production at the time of around 100,000 hectolitres. This partnership continues to this day, successfully, despite intense competitive pressures in the Czech Republic. Turnover rose by 33% in 2008, attributed to the launch of alcohol-free Bernard Fee as well as additional off-trade supermarket listings. “We certainly don’t compete on price. That’s not a way we can win,” notes Moortgat. “We compete on quality; we compete on variety and innovation. And Mr Bernard is iconic.” In 2003 Duvel bought out its partners in Brewery Ommegang, in upstate New York, a brewery founded in 1997 by Duvel’s then American beer importer. Its Belgian-style beers produced on a craft brewing scale have proven popular; turnover was up 34% worldwide in 2008. And as a bonus the brewery is located in the most quintessential of American small towns. Cooperstown is home to baseball’s Hall of Fame, attracting tens of thousands of visitors annually, many of whom stay to sample Ommegang’s Belgian-style delights. Krug estimates that there are 25,000 visitors to Ommeganag each year. Locating in Cooperstown “was maybe not a conscious decision, but a good decision.” Moortgat places DM’s current overall domestic: international sales split as 57% inside Belgium and 43% beyond its borders. Amongst the brands Duvel remains the breadwinner, accounting for 55% of sales, and is in growth with sales up 8% in 2008. Today the brand is exported to around 50 countries, although DM’s sales are concentrated in a handful of countries (see table). Moortgat remains bullish about Duvel’s prospects, citing its credentials amongst beer lovers around the world. “It’s an iconic and special beer where sometimes when we dream we think Duvel should reach the level of distribution and recognition of Guinness,” he says. “It should not be drunk on every consumer, every time. But there are some specific moments. It’s the beer you drink © Advantage Publishing Ltd

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enjoying a good meal, a good conversation, a good book.”

Expanding the portfolio The other part of Duvel’s plan, portfolio expansion, has come good more recently by acquiring two Belgian rivals. The founders of Achouffe, the quirky Ardennes-based producer of highstrength ales boasting an international reputation that exceeded its reach, gained the distribution strength they lacked in selling to DM. Moortgat explains that Achouffe, “is a very successful brewery but still small with wonderful beers. The founders knew if they joined us the development would be easier, faster. It’s the same trajectory as we are doing, but 20-30 years back.” Potentially offending the cost-conscious but delighting brewing purists, the Achouffe brewery remains in operation. Everything is as it was save that post-fermentation and maturation the beers are shipped to the DM brewery in Puurs for justin-time bottling. Production and location are too intertwined to consider a closure, notes Moortgat. “The quality of the beer comes from the specific conditions, the specific installations. But it also gives authenticity and origin to the beer and brands.” Besides, he adds wryly, Ardennes is where Achouffe’s gnomes live. Acquiring Liefmans and its distinctive fruit beers was a different story in that the company was bankrupt and in receivership, allowing DM to cherry pick (pun intended) the assets it wanted, namely the Oudenaarde site, the brewery equipment, and all the brands and recipes for a tidy 4.5 million euros. DM has retained – reintroduced, rather – production at Oudenaarde, protecting the traditional fermentation and maturation that is expected of classic sour fruit beers. And, again, the journalist persists – why not shift production to Puurs, given Liefmans modest volumes in the region of 15-20,000 hectolitres annually. Moortgat concedes that the company could close down breweries and centralise production. “But we lose speciality and authenticity of the beer,” he ripostes. “It matters for us and it matters for consumers. I am sure that if Duvel were part of a big brewing group that one day a manager somewhere would decide to close down a plant and transfer production to another more efficient brewery and that would be the start of the decline of Duvel as a brand. It would lose its speciality, its heritage.” These acquisitions have fleshed out Duvel Moortgat’s portfolio; now the challenge is to make more out of the brands. Chouffe beers, until now only available in 75cl bottles, are starting to be packaged in 33cl servings, begin-

Brewers’ Guardian, June 2009

ning with La Chouffe. It’s an SKU that DM hopes will introduce the beer to more outlets and consumers who only want a single serving. More dramatic is the overhaul of the Liefmans portfolio, with new contemporary branding to boot. A 4.2% abv fruit beer is being introduced, and branded simply as Liefmans. Staelens explains that Belgian consumers, when they order a fruit beer, expect something – redder – than the brownish shades of Liefmans Kriek. The new Liefmans, while fermented over cherries in common with all Liefmans beers, will have added a mixture of raspberry, strawberry, elderberry and bilberry juices. Strawberry adds sweetness, raspberry dryness, and elderberry helps with the colour. The beer’s aroma is cloyingly sweet, strongly reminiscent of fairground cotton candy. There’s no bitterness to speak of in the finish. And the colour is bright, bright red. It most likely is a beer that won’t satisfy those who already know Liefmans, but it may well introduce those who don’t to more challenging tastes later.

Liefmans brewery: revitalised

The launch has been muted. “Fruit beers tend to be more seasonal for the summer,” Moortgat explains. “We have both national and international ambitions with this beer but we want to grow step by step and grow very smoothly. We did not set up a big launch campaign.” Outside Belgium Liefmans will be launched first in the UK, then the Netherlands, France and United States. Moortgat is enthused about its potential, with a sales goal of 10,000 hectolitres this year. “Is that big, is that small?” he muses. “I think it’s rather small but if we achieve that I think we would be happy.” Krug adds that a brand like Liefmans could be 100,000hl someday. The introduction of the 4.2% has led to a repositioning of Liefman Kriek. It is to be renamed Liefmans Cuvée Brut, remaining at 6% abv and brewed just once a year. The distinctive packaging, a cork seal and red paper wrapper, 11

COVER STORY

Rooftop solar array: results disappoint

are intact but modernised in appearance. The long-standing white beer joint venture with Palm Breweries, Steendonk, was wound up in mid-2008 with the agreement of both parties. DM has launched its own wheat beer, 4.7% abv Vedett Extra White, in response, again with a palate accessible to younger drinkers.

Back at the brewhouse About that 14.7 million in capex – one of this year’s projects relates to the introduction of wheat beer at Puurs. Staelens says that adding a third yeast strain has, well, strained yeast propagation facilities. (At the moment Vedett Extra White’s sales are low enough that it needs to be propagated for each brew.) With the installation last year of six CCTs with stainless steel cladding – again picking up on the commitment to quality, Staelens notes, “It’s a little bit more expensive but in this way it will always remain nice on the outside” – the pinch point now is the old plate filtration unit. At the moment trials are underway with a membrane filtration system supplied by Alfa Laval. (Further

details are sketchy: Alfa Laval declined to comment when approached for interview, saying that they wanted to reveal all at drinktec this September.) What else is on the shopping list? Already on order for Puurs is a carbon dioxide recovery system supplied by Norit. This year DM is planning to order new vacuum-filling equipment and specially adapted barrel equipment for Achouffe; at Bernard in the Czech Republic and Ommegang in the US, fermentation and lagering capacities are to be expanded. At the main brewery in Puurs water usage is high, at about nine litres for every litre produced, but in part this is due to extensive cleaning regimes – Duvel’s bottles are returnables. Waste water is being targeted. Staelens says, “There are other breweries which use water recycling. It’s one of the options we are looking at.” As for intake, he adds that. “In a few years we need to expand the water treatment system but we don’t want to do it; we want to reduce our water consumption.” Generally, Puurs can be described confidently as an eco-minded brewery. Heat generated by the fermenters is used by the new adjoining office block. A proposal to install two windmills to generate electricity has stalled for the moment, over concerns that in winter ice might sheer off the blades, wreaking havoc on the brewery and its neighbours. The possibility of an off-site location is being investigated. All electricity used at the moment is “green”; hydroelectrically generated by a power plant in the Rhone Valley.

And the new brewhouse, which recently celebrated its 1,000 brew, has an array of solar panels stretched across the roof. Stalens notes that the results have been mixed so far. “It’s a little bit disappointing at the moment. It’s not as much as we hoped for; the yield is lower than we expected.” Green technologies; premium craft and speciality beers, a commitment to preserving brewing heritage – there’s even a programme for employees to have use of Duvel-branded bikes providing they use them for travel to their workplace on a regular basis. Everything about Duvel Moortgat brings to mind a recently formed aggressive, experimental American craft brewer. The comparison is intended to be a compliment. DM has a spirit of innovation one would expect in a younger company, not a fourth generation brewer. As it expands internationally and adds brands, clearly it is a compelling example of how a high-end brand strategy can be executed profitably. Yet will there be additional acquisitions? It is something, Krug notes, the company was asked continually in the wake of the Bernard transaction. “It’s not compelling for us to have a strategy to do acquisitions,” he says. “We have a very strong complimentary portfolio of beers. With this complimentary portfolio we can have a very strong compete strategy.” That said, he adds, “If this is an interesting opportunity for us, it makes sense in our strategy, why not?”

Duvel Moortgat’s expansion timeline

Duvel Moortgat: expanding geographies

1989 Founding of Steendonk Brewery, a 50-50 joint venture with Palm Breweries

Sales by country 2008

1997 Founding partner in Brewery Ommegang in Cooperstown, upstate New York 1999 Goes public, with 25% of shares floating and the reminder retained by the family. Today listed on NYSE Euronext, symbol DUV 2001 Acquires 50% stake in Bernard Brewery, premium niche player in the Czech Republic

56.9%

Belgium

10.6%

USA

Netherlands

8.3%

Czech Republic

7.7%

France

7.2%

2003 Becomes sole owner of Brewery Ommegang 2006 Acquires Belgian specialist brewer Brasserie D’Achouffe 2008 Exits from Steendonk joint venture; develops own white beer 2008 Acquires Belgian fruit beer brewer Liefmans

Other

3.5%

5.8% Source: NYSE Euronext

•

Brewers’ Guardian, June 2009

stats snapshot

EUROPEAN MARKET LEADERS Despite the advertising spend and resulting visibility enjoyed by premium international brands, beer remains a ‘national’ product, as evidenced by the variety of brands by country

Market Snapshot (Major Markets) Market

Market Size (000’s HL)

CAGR 99-008P

Key players

Leading brands

Austria

9,162

0.3%

Brau Union (Heineken); Steiglbrauerei; Ottakringer

Puntigamer; Steigl; Zipfer; Goesser

Belgium

9,137

-1.4%

InBev; Alken-Maes (Heineken)

Jupiler; Maes; Stella Artois; Leffe

Bulgaria

5,783

4.9%

Brewinvest (Heineken); Carlsberg Bulgaria; InBev Bulgaria

Kamenitza; Ariana; Shoumensko; Zagorka

Czech Republic

16,547

-0.2%

Heineken (Starobrno, Krusovice); Pilsner Urquell (SABMiller); Staropramen (InBev)

Gambrinus; Radegast; Kozel; Staropramen; Pilsner Urquell

Denmark

4,491

-2.8%

Carlsberg; Harboes; Royal Unibrew

Tuborg; Carlsberg; Royal; Harboes

Estonia

1,280

3.3%

Le Coq (Olvi); Saku (Carlsberg); Viru Olu (Harboes)

Le Coq; Saku; Saku Rock

Finland

4,636

0.9%

Hartwall (Heineken); Olvi; Sinebrychoff (Carlsberg)

Koff; Karhu; Lapin Kulta; Karjala; Olvi

France

19,561

-2.0%

Brasseries Heineken; InBev France; Kronenbourg (Carlsberg)

Kronenbourg; Heineken; Amstel; 33 Export

Germany

90,820

-1.5%

Bitburger; BrauHolding (Paulaner, Kulmbacher, Karlsberg, Furstenberg etc.); Carlsberg Deutscheland; InBev Deutscheland; Krombacher; Radeberger; Warsteiner

Oettinger; Krombacher; Bitburger; Beck’s; Warsteiner; Hasseroeder; Veltins

Greece

4,531

0.2%

Athenian Brewery (Heineken); Mythos (Carlsberg)

Amstel; Mythos; Heineken; Henninger

Hungary

7,969

1.0%

Borsodi (InBev); Dreher (SABMiller); Heineken Hungaria

Borsodi; AranyAszok; Soproni

Ireland

5,468

0.0%

Guinness (Diageo); Heineken Ireland

Guinness; Heineken; Budweiser

Italy

18,146

1.5%

Carlsberg Italia; Heineken Italia; InBev Italia; Peroni (SABMiller)

Peroni; Moretti; Heineken; Dreher; Beck’s

Latvia

1,503

5.1%

Aldaris (Carlsberg); Cesu Alus (Olvi); Livu Alus (Royal Unibrew)

Aldaris; Cesu; Apinitis

Lithuania

3,008

4.3%

Kalnapilis (Royal Unibrew); Ragutis (Olvi); Svyturio-Utenos (Carlsberg)

Svyturys; Utenos; Tauras; Kalnapilis

Netherlands

12,642

-0.8%

Bavaria; Grolsch (SABMiller); Heineken; InBev Nederland

Heineken; Amstel; Grolsch; Bavaria

Poland

35,590

5.2%

Carlsberg Polska; Kompania Piwowarska (SABMiller); Zywiec

Tyskie; Zubr; Zywiec; Lech; Tatra; Warka; Harnas;

(Heineken)

Okocim

Portugal

6,614

-1.3%

Centralcer (Heineken); Unicer (Carlsberg)

Sagres; Super Bock

European Drinks; Heineken Romania; InBev Romania; United

Timisoreana; Bergenbier; Golden Brau; Burger; Ursusl

Romania

19,757

7.4%

Romanian Bereprod (Carlsberg); Ursus (SABMiller)

Bucegi; Noroc; Neumarkt; Ciucas

Slovak Republic

4,471

-0.4%

Heineken Slovakia; Topvar Pivovary (SABMiller)

Saris; Zlaty Bazant; Corgon

Slovenia

1,767

0.9%

Pivovara Lasko; Pivovara Union (Lasko)

Zlatorog; Union

Spain

37,680

3.2%

Damm; Heineken Espana; Mahou-San Miguel

Mahou; Cruzcampo; Damm; San Miguel; Amstel; Heineken

Sweden

4,851

-1.0%

Carlsberg Sverige; Spendrups

Pripps; Falcon; Norrlands; Carlsberg; Spendrups

United Kingdom

54,776

-1.6%

Carlsberg UK; Molson Coors (UK); InBev UK; S&N (Heineken)

Carling; Foster’s; Carlsberg; Guinness; John Smith’s

Canadean is the world leader in beverage market research, producing more than 300 reports annually across all categories. For the brewing industry Canadean delivers regular country and regional reports as well as its Global Beer Report, covering more than 200 markets, and its annual Global Brewer Handbook. For more information, contact Kevin Baker on +44 (0)1256 394220 or by email: kevin.baker@canadean.com

All data printed on this page is copyright of Canadean Limited. No reproduction is allowed without prior permission. Forecasts are indicative only and act as a guide to possible future volumes.

•

Brewers’ Guardian, June 2009

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brewers’ guardian

Brewers suppliers a fractured relationship The business of being a brewing supplier became headline news earlier this year when A-B InBev was widely castigated for extending payment periods for suppliers to 120 days – and beyond, depending when the supplier’s invoice was received An investigation by Brewers’ Guardian has revealed that A-B InBev, while the first to implement such changes, is not alone, with its multinational peers also extending payment periods. The result is that additional stresses are being placed on the supply chain, with smaller companies the hardest hit. Report by deputy editor Rob Brown

ow long is it reasonable to expect suppliers to wait for payment? Amongst the giants of our industry there is anything but unanimity. But one thing is for sure; the age of 30-day payment periods is fast fading. Suppliers face ever longer waits for payment as brewers move to keep cash flow on an ever tighter rein. The issue has made headlines across the world in recent months, with A-B InBev bearing the brunt of the negative publicity. Earlier this year the brewer unilaterally doubled the maximum time suppliers must wait for their dues to 120 days, prompting the Belgian economy minister Vincent van Quickenborne to suggest publically an anti-competition probe, which was later aborted. But A-B InBev is not alone in extending payment periods to suppliers. BG has discovered that Heineken has upped the maximum time suppliers could wait for payment to 120 days in “some countries.” Clearly a prickly subject, the brewer had kept this fact under wraps until now and tersely insists “there is no standard payment period.” The maximum period SABMiller’s suppliers could wait for payment remains unclear. SAB’s global sourcing services manager Alison Collier will not define an upper limit for payment periods because “terms vary from supplier to supplier.” She adds: “There is no blanket ruling for all of SABMiller’s suppliers.” 16

Globally Carlsberg Group’s suppliers now face a wait of up to 95 days – upped from 62 in March - after the end of the month billed. While A-B InBev and Diageo, which had earlier upped payment periods from 45 to 60 days, pledged to help suppliers through the difficulties, there has been no such assurance from Carlsberg. “We don’t as such do anything to ease suppliers through this crisis,” Carlsberg deputy CEO and chief financial officer Jørn Jensen told BG. “It’s very important for us to increase our working capital management, which I guess is the case for the market. That’s what’s driving this and nothing else.”

Scale makes difference Undoubtedly these are tough times for all, but it would appear more so for the smallest. The moves by the big players demonstrate one thing; scale equals strength and, in this brave new world of brewing, strength is everything. These are particularly perilous times for smaller outfits. The case of Barth-Haas, the world’s largest hop supplier with around 50% market share through its German, British and American operations, illustrates this point. When approached by brewers looking to extend payment terms, BarthHaas, bolstered by its global reach and market share, simply said ‘no’. “We’ve rejected any requests for longer payment terms from all those who have approached us,” says Thomas Raiser, BarthHaas’ head of sales. “We have existing contracts

“It’s very important for us to increase our working capital management, which I guess is the case for the market. That’s what’s driving this and nothing else.” Jørn Jensen, Carlsberg Group deputy CEO and CFO

in place with most of our customer(s) and these clearly stipulate the payment terms that are to be applied and we expect our customer(s) to adhere to these. “We pay our growers immediately after harvest and finance the crop until delivery to the

•

Brewers’ Guardian, June 2009

SUPPLY CHAIN

brewery, which in some cases can take up to 18 months. Any further extension of payment terms would put an unreasonable burden on us, which we could not bear.” Of course many do not enjoy the luxury of Barth-Haas’ scale. They are, as one leading malt supplier puts it, “over a barrel”. Refusal of the new terms could result in lost contracts. If they join forces with the competition to make a stand, they risk being seen in the eyes of the law as a cartel. “It’s mid-stream, we’re in the middle of a contract period and they are changing their terms and conditions,” adds the malt supplier, speaking on condition of anonymity. “I’ve tried to go back and renegotiate and they just say ‘no’. Obviously next time we’ll have to renegotiate the price, if they’re going to take longer to pay.” Consolidation means that suppliers to the industry are doing an increasing amount of business with a diminishing number of players. Understandably, few are willing to go on the record to speak out about the tactics now being employed, potentially antagonising their biggest clients. “They have a big corporate stick and basically we have no option – it shouldn’t be legal,” comments the managing director of one packaging solutions supplier, again on condition of anonymity. “We’re not even allowed to get together with other suppliers to discuss this because then we are called a cartel. “We’re getting bitten by the EU because we can’t talk together as suppliers and A-B InBev, because of their size, can just do what they want. It completely destroys cash flow. We’re almost at the point where we can’t do the job. Given the choice we wouldn’t do the job for them.” The steps taken by brewers are having a knock on effect, straining cash flow along the supply chain. But, as a senior executive at one of the Big Four brewers recently suggested to BG, could it be that the less shrewd suppliers are using these steps as an excuse for their own underperformance and late payment? Not according to our packaging supplier, who says the cost of stalled payments has been written into new contracts. He adds: “We’re lucky because there’s not an awful lot of competition in our business. It ends up costing them because we put it into our costs. But I can certainly see companies in more competitive markets going bust over this.”

Emerson above the parapet In April American electronics supplier Emerson, headquartered in St Louis, as is Anheuser-Busch, caused a furore locally over a leaked internal memo. Senior VP Bob Cox warned colleagues of “negative things happening in the St Louis community and in regard to Emerson doing business with InBev.” © Advantage Publishing Ltd

•

Cox went on to complain that, “InBev payment terms with Emerson have now been stipulated as 120 days – take it or leave it! Numerous St Louis not-for-profits have lost all or most of their Anheuser-Busch funding – United Way, Boy Scouts, Girl Scouts, and the list goes on!” Emerson chose to fight back with Cox ordering with immediate effect a ban on Anheuser-Busch products at Emerson’s world headquarters, conference centre, corporate jets, and in Emerson suites at local sports stadiums. Cox stressed that, “We want all divisions to comply and not purchase or stock any Anheuser-Busch InBev products,” and suggested Coors, Miller, Modelo/Corona and Heineken as alternatives. A-B InBev’s response to the Emerson memo was forceful, to say the least, with

“We pay our growers immediately after harvest and finance the crop until delivery to the brewery, which in some cases can take up to 18 months. Any further extension of payment terms would put an unreasonable burden on us, which we could not bear.” Thomas Raiser, Barth-Haas’ head of sales community relations at the forefront of their statement. Attributed to A-B president Dave Peacock, it opened with, “We are surprised and disappointed at the statement from Emerson and its inaccurate portrayal of us as a company and of our discussions with Emerson as one of our suppliers.” Peacock went on to play the community leader card. “Our beers are made by thousands of hardworking Americans, and Emerson’s misguided and unfounded comments impact the employees and families of Anheuser-Busch and our area distributors ... Our beers are appreciated by St Louisans, and nothing has changed about us, or our beers, that should change their minds.” Peacock added that many suppliers similar to Emerson already have renegotiated payment terms that are agreeable to all parties. Whether Emerson has overcome the impasse is not clear, and the matter still appears to be a touchy subject. “We don’t have any comment. We’re done talking about it,” is the firm’s official line on the matter now, according to spokesman Mark Polzin. But the ability of suppliers to renegotiate terms – i.e., resist the extended periods unilaterally put in place by the big brewers – appears to depend on the suppliers’ weight. It is the large to midsized suppliers that have the muscle to stand up to the moves. The little guys have fewer options and are forced to play ball. “It’s very difficult to resist,” said a source at a leading international process aids

Brewers’ Guardian, June 2009

supplier, who again spoke on the condition of anonymity. “We have to declare the cost, we say you either have a low price and your pay fast or you have a higher price and you pay late but the only one we really have problems with is InBev.” As beer sales contract in the face of the recession, forward contracts for raw materials are not being honoured. One malt supplier refers to the phenomenon as “call-offs” – a situation which sees brewers reducing its agreed intake of a raw material in response to falling demand. The supplier explains: “They are forcing your hand. You call them up and say ‘we’ve got a problem, we’re getting behind here’ and they always say it will pick up but it doesn’t. We’ve already allocated the barley and the production on them and then they are coming back and saying we don’t need it or they are asking for discounts. It certainly makes life less profitable.” To some this behaviour may be verging on unethical; for others it is simply unsustainable. And it is clear where the cracks in the supply chain will begin. “Forget whether it’s right or wrong or ethical, it’s not sustainable. That’s the issue,” comments the CEO of one major engineering firm and supplier to the industry. “If the biggest in the supply chain drag terms out in that way then the whole chain becomes pressured and it’s just not sustainable. It will get passed down the supply chain and you will have the little guy working in a small unit ... who won’t be able to cope.” 17

SUPPLY CHAIN

Weight of the law What legal recourse, then, do suppliers have? There appears to be little, if any, according to a disconsolate Ruth Evans, CEO of UK trade body the Brewing, Food and Beverage Industry Suppliers Association (BFBI). She comments: “There is no protection for suppliers. I’ve tried the Competition Commission, I’ve tried the Office of Fair Trading and they both say they are there to protect consumers and it’s not their position to get involved in commercial trade issues. It’s outrageous. The supply chain should have somewhere to go.” Frustrated by the lack of legal recourse, Evans

“We don’t want to stop the brewers making money; if their sales suffer our sales suffer but they have to allow us a little bit of success otherwise we can’t afford to live.” Ruth Evans, CEO BFBI suggests that brewers and their partners should sign up to a code of best practice that would set out mutually acceptable maximum payment periods. She adds: “We don’t want to stop the brewers making money; if their sales suffer our sales suffer but they have to allow us a little bit of success otherwise we can’t afford to live.” Governments seem to be powerless to stop businesses writing their own rules when it comes to paying their suppliers. Our engineering supply firm CEO puts it like this: “People are asking whether governments can stop it; the EU might be able to do something in some markets. But of course they can’t stop it worldwide when you have global brewers. Of course they can’t.” One UK supplier BG spoke to seems to be putting some hope in government intervention after the firm contacted its MP. But the government’s Department of Business only recommends that brewers sign up to the voluntary Prompt Payment Code, an agreement to pay up within pre-agreed terms, and a pledge to not attempt to change terms at a later point. A department spokesman adds: “Cash flow is the lifeblood of business and one of the key causes of business failure in the UK. That’s why it is critical that all responsible companies, 18

including brewers, sign-up to the Prompt Payment Code and commit to pay their suppliers within their agreed contractual terms.” Latest government figures show there are some 200 signatories to the code, including some key suppliers to the brewing industry. There are no brewers listed, however. Under the EU’s EC Directive 2000/35 payment should be made, “within a maximum period of 30 days for commercial transactions if there is no agreement otherwise between the parties.” Further, Article L 441-6 states “any delay will give rise to the application of interest for late performance at least equal to the rate of interest most recently applied by the European Central Bank and increased by seven points.” In short, it’s down to suppliers to chase the brewers for compensation for late payment. Yet suppliers in competitive markets may well think twice about biting the hand that feeds it, however late. Consolidation has magnified multinational’s importance to the industry and suppliers are treading carefully. One source describes the matter thus: “When you are dealing with these huge organisations this can have a huge effect on your business. You are talking about outstanding payments of half a million, a million dollars. “We might survive it, being a reasonable size player, but when you are talking about smaller companies that employ three, four or five hundred people, they will really have trouble with that. They have a choice; accept the new terms or go bust.”

An uncertain future Some doubt the permanence of the steps being taken by the brewers. As we have heard, they say keeping suppliers waiting for four months, or failing to honour pre-agreed contracts as sales start to wane, is unsustainable. For that very reason this strangle-hold on payments will not last, they say. Carlsberg’s Jørn Jensen’s assertion that “this is a permanent change” offers no succour, then. It appears that if the brewers can get away with it, get away with it they will, and suppliers, like any business faced with challenging economic conditions, will have to adapt to survive. But for others the recession – and the breakneck pace of consolidation that brewing has experienced in recent years – has brought about the end of a centuries-old way of doing business. “There was a lot of trust within the brewing, malting and distilling industries,” recalls our source in the malt supply sector. “There was a lot of trust and a lot of business was done on a handshake. Until recently it has all been pretty honest. That has changed now.”

A-B InBev on payment periods Brewers’ Guardian approached A-B InBev regarding this feature, requesting an interview to discuss the issues at hand. In response, a request came from A-B InBev’s headquarters in Leuven, Belgium for our questions to be submitted in writing; the following brief, yet pertinent list was submitted: • We’ve had comments from suppliers that a 120-day payment term is both “unsustainable” and an “abuse of power.” How does A-B InBev respond? • Following on from this, InBev has said in a statement that “we will do what we can to help [suppliers] with the transition.” Can examples be provided as to how InBev is working with suppliers? • Does InBev see moving payment terms to 120 days as potentially counter-productive, that suppliers will be reluctant to develop business relationships, or hike prices/charge interest to offset delayed payment terms? • Is this a permanent measure, or is it a temporary response to the on-going recession and/or debt load? InBev, in reply, declined to put anyone forward for interview supplied a statement, the contents of which will be familiar to most by now and for the most part failed to address the questions posed: Like many other multinational companies, we decided to review our standard terms and conditions of payment. (These are the terms and conditions of payment that will apply to an AB InBev supplier if no other terms and conditions are agreed upon.) Following this review, we concluded that we would aim to evolve, where appropriate, to 120 days upon receipt of invoice. Our standard payment terms and conditions were not aligned globally in the past, so we are now moving to a global approach of aiming for 120 days, where possible. It is important to remember that payment terms are set as part of commercial negotiations between client and supplier and are established in mutual agreement. We partner with suppliers in many ways that benefit their business. Projects range from optimizing the supply chain, over the elimination of unnecessary costs, to market innovations. Our objective is to increase the business, offering wins for both parties. See editorial, page 8

Additional reporting by Larry Nelson © Advantage Publishing Ltd

•

Brewers’ Guardian, June 2009

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viral marketing

A virus worth catching Viral marketing is the brave new world for self-confident brands, ones unafraid to lose control and let their audiences take responsibility for their success or failure. Yet there are ways of improving the odds of success: marketing editor Pete Brown offers here a five-point checklist for viral bliss

he was on a British TV programme for a little under six minutes. Days later she was the most famous woman in the world. Her performance was viewed over 23 million times on YouTube in less than a week. Before she had even given a second performance, she had been on Oprah, featured in a new episode of the Simpsons, and had even – get ready for this – been approached to feature in an LA porn movie. By the time she sang again to progress to the semi-finals of Britain’s Got Talent, Susan Boyle’s performance of I Dream a Dream had been watched by more people on YouTube than Barack Obama’s inauguration speech. So you can see why, if someone mentions the words ‘viral marketing’ to a business, the response tends to be “I’m listening.” The problem is, the Boyle phenomenon wasn’t planned (not unless you’re even more cynical about Simon Cowell than the rest of us). She wasn’t trying to sell us anything. Neither was the fat Star Wars kid, the original Numa Numa boy, the film grad who edited footage of The Shining to create a trailer for a feelgood comedy, or any of the other misfits and auteurs who became global stars on the back of little more than a webcam and an idea. Even with high budgets and trained creative minds, it’s much harder for a brand to create a viral phenomenon than it is for a teenager in a bedroom in Wisconsin. 20

Katie Streten, head of digital planning at communications agency Imagination, explains, “The attachment of a brand to a viral, and the increased production values, paradoxically make the audience more critical. People are so tuned in to advertising that the bar for their respect is raised – you have to be twice as clever, twice as subversive, because the consumer understands you aren’t giving your viral free – you want payback in the form of positive feeling towards your brand.”

But what exactly is viral marketing? “Viral is an adjective, and recently people have been using

voucher” which was supposedly for staff only and leaked by accident to the public, was in fact a carefully

it as a noun – ‘make me a viral’,” says Andrew Allen of Digital Agency Search International. “You can’t ‘make a viral’. You can make a video. Then you just have to hope people will pass it on.” A video becomes a viral when people enjoy it so much, they want to pass it on to their friends. As soon as they do so, they’re giving it their seal of approval. The receiver opens

orchestrated campaign produced by an agency. A viral could even be something self-created, such as a review. This year’s most successful viral campaign so far is the Three Wolf Moon T-shirt. This is remarkable because it led to a 2,300% sales increase, but mainly because it happened entirely without the shirt manufacturer’s knowledge. An allegedly satisfied customer left a review for the shirt on Amazon, saying it “Fits my girthy frame, has wolves on it, attracts women.” but you “cannot see wolves with arms crossed.” This prompted a further 783 lessthan-serious reviews, each trying to outdo the last in its ironic humour. The shirt is now the best-selling item of clothing on Amazon – it’s spontaneous, original, and entirely user-driven. So, how can you emulate success like this if you’re actually trying to create a viral phenomenon?

“A video becomes a viral when people enjoy it so much, they want to pass it on to their friends. As soon as they do so, they’re giving it their seal of approval” And the risk of failure is not just being ignored, like it is with mainstream advertising – it could actually damage the brand.

Here longer than imagined Viral ads have been around for well over a decade. One of the originals was the Budweiser ‘Whassup’ commercial, which was painstakingly passed between friends on dial-up 56k modems because it was deemed worth the wait. But the advent of YouTube and high-speed internet connections has seen viral marketing turn into a growth industry. Viral advertising was worth $20 billion in the US in 2008, and that figure is expected to triple by 2012.

it because it’s from a trusted source. But then if it’s no good, they’ll blame the person who sent it to them. “We talk about owned media, bought media and earned media,” says Allen. “Viral is the latter – it’s got the biggest potential reach, but you have the least control over making it work.” A viral can be more than a video – essentially it’s anything people want to pass on to their friends. “The Carling iPint was a very good viral”, says Allen. “It had lots of touch points – not just the internet – and you’d see people playing with it in the pub.” A viral could be a game, a piece of information, or an e-mail – the Threshers “40% off everything

1) Know your market The key to viral success is to know not just who you want to see the ad, but who you want to pass it on. Careful seeding of the ad is crucial. “The days of just sticking it out there and hoping people will forward it are gone,” says Tim Gibbon of Elemental, an agency that prefers to talk more accurately about ‘social media’ than the term ‘viral’. “Twenty

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Brewers’ Guardian, June 2009

viral marketing

hours of new video content are uploaded every minute to YouTube alone, so there is infinite content available to capture the interest of consumers.” Will those likely to receive the viral be opening it at work or at home? Most people check personal e-mail at work, or use work e-mail to communicate with friends, and a thoughtfully placed ‘NSFW’ (not suitable for work) can save people from disciplinary action. Diesel clothing paid tribute to this, and made one of the most successful viral ads of recent years, when it produced a SFW porn movie by drawing animated characters and objects over anything that might offend. Thus we see a montage of scantily clad couples riding horses together, eating bananas, shaking maracas, playing a harmonica and pouring Skittles into each other’s mouths. Bud Light also created a very successful SFW-inspired viral. An office worker asks a secretary what a jar is for, and she replies that it’s a swear jar, the proceeds of which will be used to buy something for the office, such as a case of Bud Light. The man thinks about this for a second before replying “F***ing awesome,” and putting a dollar in the jar. Cue thirty seconds of bleeped profanity, including a woman who says “Poop” as she struggles with the copy machine. “Doesn’t count”, a co-worker tells her. “Shut the f*** up!” she fires back. If you are aiming for a more niche or specialist audience, you can be more risqué. But in any case, it’s important to identify who the influencers are in the target audience, who the people are who are most likely to pass something on. Most successful viral agencies now test content in a small group before moving to a full launch.

2) Entertain – and how Consumers expect entertainment in return simply for watching your ad. Most ads aren’t, which is why the battle between bombarding people with advertising and offering people ways of avoiding this bombardment is an arms race like nothing we’ve © Advantage Publishing Ltd

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seen since the Cold War. If you want someone to choose to watch your content and then pass it on, as opposed to viewing it passively, it has to be very good indeed. In the ‘earned media’ world of viral marketing, you have to sacrifice any attempt to communicate sales information about your brand and go for pure entertainment. It’s not enough to place a TV ad online and hope people will make it viral – not unless it’s already completely iconoclastic. Greig McCallum, strategic managing partner at Balloon Dog, an integrated marketing agency, says that “aside from genuine filth”, a successful viral must contain at least one of the following: • A genuine sense of humour – “you can’t take your brand too seriously” • A sense of “I can’t believe what I’m seeing” • A sense of rebellion or defiance – “Their sheer naughtiness is usually a key factor” Poor old Susan Boyle. She probably has a lucrative singing career ahead of her, but nothing she ever does again will have the impact of that first appearance. What made her debut so compelling? Surprise. Drama. Having your expectations turned on their head. As she introduces herself on stage, the audience is jeering a modern-day village idiot. By the time she’s finished singing the first line they are cheering. Before she gets to the end of the second line, the whole theatre is giving her a standing ovation. There’s some judicious editing, of course, but it’s a tearjerker the likes of which Hollywood could never produce, because in Hollywood it’s entirely expected. This thirst for the illicit or the just plain surprising is why many brands mistake banned TV ads for viral ads – see here what you couldn’t see on TV! ‘Banned beer commercial’ brings up 405 hits in YouTube, one of the most famous being Tuborg’s Danish ‘Beer goggles’ ad, in which a woman across a bar becomes more alluring each time the man drinks his lager. Clearly not acceptable, but

Brewers’ Guardian, June 2009

VIRAL VIDEOS YouTube is the place to look for the best of viral marketing, including the three ads below. Simply type in the text below, and click search

Carling and Mentos

Bud Light Swear Jar

Carling ipint 21

viral marketing

after being shown on one of those ‘banned ads’ TV programmes, it was uploaded to YouTube and has received more than 1.1 million views in three years. But for most brands, this is no longer a viable strategy. Tim Gibbon

would they?” asks Andrew Allen. With a viral, you’re not just asking someone to watch – you’re asking them to put their name to it. People have to really want to pass something on, and if they don’t want to, it’s not viral. The Three Wolf Moon

Viral marketing can be used to direct people to websites. They can offer an opt-in mailing list for future communications. says, “Long gone are the days where the internet served as a Plan B to drop content that couldn’t be published or broadcast in traditional media. The law, industry bodies and consumers have caught up. It’s no longer a ‘place’ to drop content that has no place anywhere else.” Entertainment is also about topicality. When Barclaycard launched a megabucks global campaign featuring a man travelling around the city on a giant waterslide, Specsavers filmed a spoof version on a shoestring budget in which the slide leads straight to the office skip – should have gone to Specsavers – and had it online within days of the Barclaycard ad breaking. Carlsberg displayed a deep understanding of viral culture when they created an unexpected spot that looked like a homemade video of someone conducting an experiment by dropping Mentos into a glass of beer, in homage to the viral phenomenon of a similar film about the explosive meeting of a packet of the mints and a bottle of Coke. The guy drops the mint in the beer, steps back off the pavement in anticipation of the reaction… and is mown down by a Carlsberg truck flashing past, after which a stark line appears, “You don’t put sweets in Carlsberg.”

3) Understand the psychology of passing something on “Consumers will very rarely have your brand’s interests at heart. A few hero brands or super cool exceptions aside, the vast majority of people will not want to be seen as walking/clicking advertisement for a corporate organization – and why 22

T-shirt worked because everyone wanted to join in, and demonstrate their own cleverness. Bowmans Poker spent a mere £25,000 on a viral from agency Kerb that reaped huge rewards by understanding why people might pass something on. A video Strip Poker application allowed young men to play against a beautiful woman who removed an item of clothing each time she lost a hand. When she got down to the bare essentials, it was revealed that the ‘woman’ was in fact a pre-op transsexual. The agency’s argument was “if somebody got their rocks off playing strip poker against a women who turned out to be a man, they would feel compelled to validate their own sexuality by ensuring that their peers were also “fooled” and would forward it to them in accordingly.” Of course, beer could never get away with anything similar – but this example does demonstrate that there can be many reasons for forwarding something, most of them bound up in different aspects of the sender’s ego.

4) Whassup! Embrace your loss of viral control Once a video goes viral, the creator has no control over it. ‘Whassup’ has been parodied in versions featuring grandmas, rabbis (“Shalooooom!”), and four year-olds (in a campaign for milk). It has been mashed up by fans with the soundtrack accompanied by footage of The Simpsons, Teletubbies and Nintendo characters. There was even a two-minute “eight years later” sequel featuring the original

actors in significantly less laid back circumstances, with one phoning in from Iraq, another watching his savings wiped out in a stock market crash and a third caught in a climate change hurricane, which turns out to be an Obama election ad. Anheuser-Busch seemingly takes a relaxed attitude to the vandalism of their commercial, understanding that it helps the original remain fresh years after normal ads have been forgotten. Virals are a great opportunity for two-way interaction which, if done correctly, can build far stronger relationships than simply watching an ad. Cadbury’s recent commercial featuring a gorilla playing the drums to Phil Coilins’ ‘In The Air Tonight was a rare exception to the rules above because it was a TV ad that was so good, it went viral of its own accord. But it did so because it was so different and unexpected. Viewers immediately paid tribute to it by creating their own versions. Cadbury’s released a follow up version of their own, but it wasn’t nearly as successful as those amateur events created by viewers. Remember – apart form anything else, people love an underdog. But not everyone is as happy with losing control. I first found reference to the Carlsberg Mentos ad on a blog, only to find the video had been removed ‘due to rights violation’, which if true would seem to a show total misunderstanding of what viral is all about. Customisation can be a problem if the brand is not careful. General Motors got more than they bargained for when they embraced the digital medium by putting online the elements of a commercial for the Chevy Tahoe SUV and inviting browsers to create their own commercials. Many did… creating ads with taglines such as “Yesterday’s technology today” and “Global warming isn’t a pretty SUV ad – it’s a frightening reality” and circulating them at GM’s expense. “Big businesses attract this,” says Andrew Allen, “They have to accept that not everything that happens in viral is going to be to their liking.”

Does this mean that viral as a medium is more suitable for small craft brewers rather than powerful corporations? Well, yes – but only if they have a great idea, says Allen. “It’s best to go to small digital agency for help. Plenty of big brands have spent £140,000 on a film no one has seen. But you can spend a lot less and have some success with people who know their way around the medium.”

5) Follow through “Too often,” says Tim Gibbon, “We see brand aimlessly jumping from one viral to another, which results in a brand that appears disjointed because they do not conclude or bridge the messaging between their campaigns properly.” It’s important for a brand to remember that your aims are entirely different from those of the Three Wolf Moon T-shirt. The most popular virals are one-offs, whereas you’re using the medium to build a brand in the long term. Even if people enjoy your ad and pass it on, if they then ask, “So what?” and move onto the next one, it hasn’t really done anything for your business. Viral marketing can be used to direct people to websites. They can offer an opt-in mailing list for future communications. “Flat and forgettable messaging isn’t healthy for brands,” says Gibbon. “Especially in volatile and challenging economic times.” Marketing seeks to turn any form of communication into a source of brand profit, and always will. It’s obviously possible to create successful branded virals, but it’s doubtful whether they will ever have the same success as Star Wars kid or Susan Boyle. Success is possible but by no means guaranteed, and failure could be very costly. What’s great about the medium is that multinational and micro have an equal chance of success. No amount of budget can guarantee success – the only thing that can is a great idea. If you don’t have one, don’t do it. As Katie Streten says, “Being funny is really difficult. Otherwise we’d all be Jo Brand or Billy Connolly.”

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Brewers’ Guardian, June 2009

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filtration survey

Becoming clearer If one thing is clear in brewing, it is that beer, with apologies to aficionados of wheat beers, should be just that: clear. Yet achieving that clarity at the right price is a conundrum increasing in perplexity as technologies develop and ecological and legislative pressures mount. Cross-flow and centrifugal technologies, returnable filter aids and kieselguhr all still vie for brewers’ attention as they look to improve their filtration and clarification processes in coming years. Deputy editor Rob Brown surveys the state of play with some of the world’s foremost experts

Pall Food and Beverage provides filtration, separation and purification solutions globally, with its activities encompassing gas filtration, water treatment, yeast management, stabilisation, clarification and water recycling. Dirk Weber is global marketing manager for Pall’s beer division.

Dirk Weber

What are the main factors that will affect brewers’ filtration and clarification considerations in coming years? Topics like environmental aspects, consumer protection, water shortages, variations in raw material quality, labour costs or an increasing sort variety (wide brand portfolio). In terms of environmental aspects it’s necessary to replace CO2-intensive production methods like DE-filtration or pasteurisers. This also ensures saving money. Increasing consumer protection, under EC directives, results in ever stricter regulations for both final product and filtration. Water shortages increase the need to reduce the amount of water needed to produce 24

each litre of beer and to consider new possibilities for water re-use. Climate change results in changing raw material quality, which also influences filterability and filtration costs. A continuous brewing process ensures reduced fixed asset costs as well as labour costs and the increasing sort variety requires a higher flexibility in production equipment. Many breweries today boast completely kieselguhr-free production. How far off is this from becoming the norm? From a technical point of view, completely kieselguhr-free, state-ofthe-art production is already here and the share of DE-free cross-flow filtration systems will increase. Pall clearly supports this trend with the PROFI system (a combined separator/membrane system allowing continuous beer clarification and separation developed with GEA) with several systems installed over the world by big players in the brewing industry. This is reinforced by the fact that most customers applying PROFI have already installed additional systems. The advantages of cross-flow membrane filtration include reduced operational costs, DE-free production with all the related environmental and health advantages, minimal waste handling, flexibility – especially in terms of brand changes, continuous, 24/7 operation and consistently high quality beer production. Bert De Wit oversees Alfa Laval’s filtration and separation business. The

firm has broad interests in the field, investing in cross-flow filtration with business partner Sartorius, supplying sterile filtration technology and continuing development of separators and green beer clarification techniques. Another focus is beer recovery and wastage reducing separators.

Bert De Wit

How do you view future technologies in the sphere of filtration and clarification and how are legislative and environmental issues shaping these? For all brewers the environment and sustainability is high on the agenda, but current applications and new technology always have to go hand in hand with the cost picture. As we want to be a key player in filtration and separation, we’re always looking at our product portfolio and the equipment and applications that can give benefits in terms of energy consumption, product losses and waste reduction. These will give a direct impact on production costs and assist in the sustainable development of any brewery.

A major application for us in that respect is membrane beer filtration. There’s a general consensus that kieselguhr filtration won’t remain. However, we cannot yet speak of a general technology conversion. Most major brewing groups as well as smaller breweries are now evaluating the performance and cost levels of recently installed plants. The main challenges for membrane filtration will be in the ability to cope with different beer types, raw materials etc. and to further drive the membrane cost down in order to open up the market further. Again, cost per hl is key. When we started looking at membrane filtration together with brewers, one of the views was legislation, certainly in Europe, would drive up the cost of getting rid of the kieselguhr. In general that’s not come through; however, we’re putting a lot of focus now on providing simple and cost-effective separation equipment to brewers to reduce their waste significantly. Alfa Laval recently installed sterile filtration at Poland’s Kasztelan Brewery (since then the firm has sold similar systems in Poland). How long will this remain a niche solution? What’s driving the success in Poland is the simplicity and low investment cost of these sterile filtration systems. Kastelan is using sterile filtration for a specific beer that is promoted on the market as non-pasteurised. In Japan and China, sterile filtra-

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Brewers’ Guardian, June 2009

filtration survey

tion isn’t really a niche market. Also here, these beers are marketed as ‘cold filtered with fresh taste’; brewers get a premium for that. How long will sterile filtration remain a niche? We’ve been looking at how to export that success from China and Japan, but still a lot of brewers are hanging on to pasteurisation. Marketing will play an important role, but it’s also a matter of balancing the advantages of no heat treatment versus the degree of security in relation to the stability of the beer for its expected lifetime. Draft beer is different than export beer in that respect. Also hygiene conditions for beer packaging should be well controlled, but that also applies to flash pasteurisation. There is still some conservatism in the brewing industry, but you do have a lot of brewers turning from tunnel pasteurisation to flash pasteurisation and the next step could be to go to sterile filtration. In Japan and China at least they’re showing that it’s possible. Switzerland-based micro-filtration specialist Filtrox has worked with the world heavyweights of brewing, primarily using membrane filtration and returnable filter aids. Juerg Zuber is Filtrox’s chief technical officer.

Juerg Zuber

How do you view future technologies? There are two different approaches; membrane filtration and returnable filter aids. The big advantage of returnable filter aids is you don’t have DE handling, either on the dry side or in disposal of sludge. The second advantage is you have the filtration and the stability in one step. The brewery © Advantage Publishing Ltd

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that’s using PVPPs can really save a lot of money by changing to returnable filter aids. The main question on the membrane side is, ‘what is the best membrane for filtration?’ We’ve been working with membrane filtration for 15 years and we’ve worked with nearly every membrane that’s available from plastic and steel to ceramic. I would say that still the main focus now is to find the membrane that’s the best solution. These are the two possibilities. One is you replace the kieselguhr with something else; a polymer probably. The second is that you use membranes. But at the end of the day it’s always the cost that decides. As long as a solution is more expensive than DE, the overwhelming number of breweries will stay with DE. What impact will environmental factors have in the future? They’ll have an increasing influence. I’ve had interesting discussions with SABMiller because they have a high priority with environmental issues like water and energy consumption. If you compare membrane filtration with traditional DE, then membrane filtration is far worse because it’s consuming much more energy and water. The question is, what’s more important, the problems with DE disposal or the overall environmental impact you have with energy and water consumption? What are the pros and cons of cross-flow membrane filtration and which issues are impeding its wider use? The advantage is it’s a system that can work without filter aids. The disadvantage you have is on the process side; a membrane system is not flexible at all. If your beer’s changing because your raw materials are changing you can’t adjust the system at all. It’s absolutely rigid. There’s no flexibility. Membrane filtration doesn’t work very well with PVPPs. We know Heineken do that and you can use a silica gel but that’s pretty risky because you can block the cells. So stabilisation is difficult.

Brewers’ Guardian, June 2009

Before joining German brewing centre of excellence Weihenstephan, Jens Voigt worked for both Huppmann and Steinecker. The now assistant professor in mechanical engineering and process technology sees membrane filtration replacing kieselguhr in the next 20 years as the material falls out of favour.

Jens Voigt

How do you view future technologies? Kieselguhr is still by far the most common way of filtering beer. There is some work on better calcination for performance and also for reducing health risks. Of course there are problems with disposal, involving more and more cost. Membrane and cross flow filtration involves relatively high investment costs. The technology is still being improved and this will provide more reasonable conditions. At this stage it is predominantly used in larger breweries. Return on investment is difficult for smaller brewers. With cellulose fibres lately there have been new efforts to provide economic systems. They give very good filtration performance but have high running costs and therefore very bad ROI. Research and development on beer handling prior to filtration (decanting, centrifuge, and yeast separation) is ongoing, likewise work on stabilisation. Long term development is necessary since use of kieselguhr may be completely unattractive in 20 years. The problem there is simply cost. There are people who have been misusing landfill, driving cost up.

What do you see as the most likely replacement for kieselguhr? I think it will be the membranes because membrane construction is getting better and better. There will be development; membrane structures will become cheaper to make. At the moment the cost of membranes is higher as they’re too brittle and can break and then need to be replaced. Ceramics is still too costly but as it gets cheaper, the use of membranes will rise. Cellulose and other types of fibres also have a high degree of handling costs because they are completely recyclable. For secondary use you always have to add fibres to keep the cellulose package in a constant condition so what you’re basically doing is washing it and that means high handling costs. Filtration aids are giving extremely good filtration performance but the cost of operation is high. Overall the main driver is cost, not only in investment on plant but also in the life-cycle costs of a system. Quality of filtration is really high already. PQ Corporation is one of the world’s leading suppliers of stabilising silica gels. The firm’s Britesorb stabilisers absorb chill-haze forming proteins before being filtered out of beer. Commercial manager Arnd Oppermann says stabilising choices will be of increasing importance as filtration methods change.

Arnd Oppermann

What are the main factors that will affect brewers’ filtration and clarification considerations in coming years? The top one is price. When I have investigated the market and 25

filtration survey

“The question you might ask is how much risk people want to take. When you look at the operational costs you need to look at what the water and power costs are and we know that this has an impact on membrane filtration” Arnd Oppermann, PQ Corporation

looked at kieselguhr disposal and cost, I’ve seen that the cost is still not a big issue. Sometimes kieselguhr is mixed with silica gels and you don’t get any problems with that. For the next 20 to 30 years we will have kieselguhr filtration but we will also have more interest in membrane filtration. The big deal with membrane filtration and kieselguhr filtration is that brewers have 70 years experience with kieselguhr but less than five years with membrane filtration. Your choice of silica gel for use with membranes is reliant on you being able to wash it off the membrane. It can be profitable but you need to select the right silica gel. It has to be soluble in caustic. If it blocks the filter you need to dissolve it in caustic. There is also a fear that silica gel will affect centrifuges in a negative way. People are scared of it but we know that they are not negatively affected. Many breweries today boast completely kieselguhr-free production. How far off is this from becoming the norm? The question you might ask is how much risk people want to take. On the one hand brewers are experienced with kieselguhr filtration. When you look at the operational costs you need to look at what the water and power costs are and we know that this has an impact on membrane filtration. If water and power were to become cheaper we know that would have an important impact on membrane filtration. But by using this technology more we will of course get much more experience and we can use that experience for further developing the technology.

BASF is the company behind Crosspure, a polystyrene/PVPP compound and two-in-one filtration and stabilisation aid that claims 80% savings from kieselguhr. Gero Spika is head of global sales at BASF’s beverage processing polymer unit – also with responsibility for the Divergan PVPP range.

Gero Spika

In your view, what are the main factors that will affect brewers’ filtration and clarification considerations in coming years? Why? Sustainability, eco-friendliness and cost savings in filtration and stabilisation are already today and will be important topics in the future. The main challenge is to produce a high-quality product at lowest costs. Those breweries prepared to actively address the challenges of the future in an entrepreneurial and innovative way should have a clear advantage over those just reacting to these emerging trends. Crosspure is perfectly suited to address these challenges. How large a role will legislation play in coming years? Legislation will play a significant role. One example is the ongoing discussion about kieselguhr usage and especially about kieselguhr waste. Certain additives might fall

under the obligation of declaration on the label. Consumers demand from producers more transparency and this will be reflected in stronger legislation. Crosspure and Divergan attend to all these needs from the brewers’ side as well as from the legal point of view. Many breweries today boast completely kieselguhr-free production. How far off is this from becoming the norm? There are a limited number of membrane filtration lines installed (globally) and on the other side there still are an estimated 10,000 kieselguhr filters which are in use. Completely kieselguhr-free beer filtration is not yet the norm, but within the next decade this is expected to change to kieselguhr-free systems and applications. We assume that kieselguhr-free technology will not be used by all breweries, but a significant part of the beer production will be filtered and stabilised by these alternatives like our Crosspure. Last year German filtration and stabilisation specialist Begerow launched what is claimed to be the world’s first 100% mineral-free depth filter, Becopad. Alfons Witte, head of sales at the firm’s brewing and mineral water arm, says this technology is an attractive DE-free alternative to membrane filtration.

Alfons Witte

In your view, what are the main factors that will affect brewers’ filtration and clarification considerations in coming years? Changes of consumer requirements and habits will most likely affect these considerations. Besides the global brands, I see enormous

challenges to serve customers with individual and regional requirements. Sustainability and cost saving requirements will affect brewers’ considerations in terms of technological developments and new investments in breweries. Saving natural resources, especially water, will dramatically impact the brewing industry. Environmental aspects will be one major subject for diversification, i.e. so called “green production” will (become) a huge marketing factor for the established beer market. How large a role will legislation play in coming years in the sphere of filtration and clarification? Legislation plays a big role. For all amendments, products and corresponding applications have to be checked. In my opinion clarification products like silica sol, silica gel and PVPP won’t be touched by future legislation changes. DE is already in discussion, but future scenarios are unpredictable. Many breweries today boast completely kieselguhr-free production. How far off is this from becoming the norm? Especially for craft brewers, we‘re able to offer an alternative to DE filtration, using a combination of centrifuges and the 100% mineral-free Becopad. Once the marketing of the brewing industry switches to key words like ‘sustainability’, ‘environmental resources’ and ‘energy-saving’, consumers will require beers filtered with alternatives to DE. Cross-flow filtration will be among the technologies, but there are alternatives. We see a combination of centrifuge and Becopad succeeding, due to the reliability of the technology and lower investment cost. Cross-flow in beer production is still a new technology. It has all the advantages of an automated system, (but the) main disadvantages are high investment cost and significantly higher filtration cost per hl. Stabilisation is more difficult to adjust. High energy & cleaning costs are also an issue.

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Brewers’ Guardian, June 2009

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filtration survey

ISP Corporation is a leading supplier of specialised stabilisers, including PVPP-silica and PVPP-carrageenan blends. The firm is responsible for Polyclar PVPP – now modified for membrane filtration – and the revolutionary ISO Mix system. Mika Unting is beverage business unit leader with ISP.

Mika Unting

In your view, what are the main factors that will affect brewers’ filtration and clarification considerations in coming years? For small-scale breweries this will continue to be the quality aspect.

Throughput and costs may play a role but key is to provide a first class product with a clean image and a modern “story” of the traditional product, beer. Although the consumer may not always understand such details, the application of true processing aids - insoluble, removable with physical and not chemical interaction - will contribute to a ‘clean’ story. We believe high throughput at low capital expenditure will be key for industrial-scale beer production. Low complexity set-ups will dominate that result in minimum downtime, with high throughput, while requiring low maintenance and therefore low cost and manpower. Many breweries today boast completely kieselguhr-free production. How far off is this from becoming the norm? Membrane filtration has proven to meet highest quality standards and even seems to deliver improvements for haze and flavour stability.

We believe it will continue to play an increasing role in beer filtration, although the cost competitiveness of DE-filtration has improved since membrane filtration entered the market. Changes in environmental legislation and increases in disposal costs can certainly boost membrane filtration advantages. One could say that ISP’s development of a membrane PVPP grade with >20% higher adsorptive capacity has partly facilitated making membrane filtration a more economic and less complex filtration & stabilisation solution. From a stabilisation point of view membrane filtration has several positive effects: lower oxygen and heavy metal impact, full usage of stabiliser capacity due to long contact times in the un-filtrate loop, application option of micronized high adsorptive capacity PVPPs. We haven’t experienced downsides in the matter of stabilisation with the indirect exception of not all silicas are compatible with current membrane types or designs.

Global solutions provider Norit supplies activated carbon, membranes, pumps, aseptic and hygienic valves, carbon dioxide systems, and quality control equipment. The Dutchheadquartered firm has R&D, engineering and manufacturing facilities in seven countries. Dick Meijer, commercial director for Norit Beverage, says that their 22 full-scale operational Beer Membrane Filters (BMF) make Norit Process Technology the leader in Diatomaceous Earth (DE) free beer clarification.

Dick Meijer

What impact will environmental

FOR THE LATEST INDUSTRY NEWS, VISIT OUR WEBSITE WWW.BREWERSGUARDIAN.COM

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Brewers’ Guardian, June 2009

filtration survey

In most areas of the world, we have passed the sustainability point of no return. Replacing

3M Cuno Filtration 3M Cuno Filtration

ancient technologies with clean technologies will happen either as a result of a corporate decision or adherence to evolving regulation. Dick Meijer, Norit

aspects have and why? Breweries around the world are rapidly becoming more conscientious about their environmental footprint. Certainly they are working hard to adhere to regulations, protect their brand/reputation and secure longterm operations in terms of the availability of the key ingredients for their production process. However, the most striking driver for long-term commitment to sustainable operations is when breweries recognize that sustainability measures make good business sense from a cost standpoint. For example, in several countries DE is considered a chemical waste with high disposal costs and requires additional handling. As a result, this ancient technology is quite cost-prohibitive. Furthermore, sustainable thinking in breweries is extended to the working conditions of their employees. A working environment with special measures to avoid exposure to DE dust and its alleged health risks no longer fits the sustainability vision of leading-edge breweries. The focus on sustainability has led most breweries to appoint environmental managers and formulate clear environmental targets. Because of growing public awareness as well as strong interest from the financial world, breweries elaborate on their sustainability targets and performance in Corporate Social Responsibility reports. Reporting will become even more important when product labelling with carbon and water footprints becomes common practice as is already the case in the UK and Japan. How large a role will legislation play in coming years in the sphere of filtration and clarification? In most areas of the world, we have passed the sustainability point of no return. Replacing ancient technologies with clean technologies © Advantage Publishing Ltd

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will happen either as a result of a corporate decision or adherence to evolving regulation. There where regulation is not yet in place, breweries recognize the cost and reputation opportunities or may take action based on increased scarcity of key ingredients such as water in the immediate vicinity of their production plant. Membrane filtration contributes to a better sustainability, with health and safety arguments playing an important role. Many breweries boast completely DE-free production. How far off are we from this becoming the norm? At the moment we see already that the leading brewing companies have the ambition to get DE- free in the near future. Of course, it will take time to replace the existing DE filters as an average DE filter is depreciated over 20 years. But based on the announcement of all major brewers to become DE-free before 2015 – 2020 and the overwhelming interest in a competitive and sustainable solution, we conclude that the industry has already decided to go completely DE-free and make it the new standard. As stated before, breweries can simply not afford to continue investing in an outdated technology such as DE filtration. Especially since the investment costs for BMF have decreased in the last decade while investments for DE filtration have increased due to legislation and DE-disposal costs. Aside, BMF already shows better figures for e.g. beer losses. Today, the investment costs of a Norit BMF are comparable to a DE-filter while the operating expenses are lower. This is especially the case when the brewer has to pay for the environmental impact of DE.

Cost-effective Cost-effective filtration filtration

that won’t affect taste that won’t affect taste

When you install a 3M filtration system you’re guaranteed more than high quality and great tasting beverages. As a When you install a 3M filtration system you’reof guaranteed world leader in the design and manufacture filtration more thanourhigh quality and great tasting beverages. As a systems advanced technologies will filter out unwanted world leader the design manufacture costs at everyinstage of yourand filtration processof filtration systems our advanced - from source to bottle.technologies will filter out unwanted costs at every stage of your filtration process - from source to bottle. Reduce total filtration costs without compromising quality. Reduce total filtration costs without compromising quality. To find out more, call us or visit us online. 0845 602 5237 To find out more, call us or visit us online. www.3M.co.uk/filtration 0845 602 5237 www.3M.co.uk/filtration

Brewers’ Guardian, June 2009

29 (9758)CUN_Beverage_adv.indd 1

21/1/09 14:51:29

Industry news

Jenway offers versatile flame photometers

Two new Jenway flame photometers for industrial, clinical or educational applications offer accurate determination of up to five elements and automatic flame failure detection. The Jenway PEP7 and PEP7/C are low temperature, single-channel flame photometers designed for routine determinations of sodium, potassium, calcium, barium and lithium. The industrial model PEP7 is supplied with filters for all five elements; the PEP7/C measures Na, K and Li. Both versions feature electronic ignition and fine and course sensitivity controls. Fuel options are propane, butane, natural gas or LPG. Specifically designed for clinical applications, the PEP7/C has

in-built lineariser circuitry enabling readings of Na and K, from serum samples diluted to 1:200 or 1:100, to be displayed directly in mmol/l. Accurate dilutions can be efficiently prepared using the Jenway Series 7 Diluter. User notes cover a range of sectors, from food and drink to agriculture and clinical applications. Contact: Sales Dept Bibby Scientific Ltd Beacon Rd Stone Staffordshire United Kingdom T: +44 (0)1785 812121 E: info@bibby-scientific.com www.bibby-scientific.com

IWM offers recessionbeating value

Offering value for money and tailormade, cost-efficient solutions is the tactic of UK firm Industrial Washing Machines (IWM) for weathering the current economic storm. And the tactic seems to be bearing fruit. In the past two months the Birmingham-based firm has secured 10 orders for new machines, representing a 75% increase from the same period last year. “In the present economic climate potential purchasers of washing machines are looking more closely than ever at value for money and

low lifetime costs – our equipment delivers in both these crucial areas,” said IWM boss Carl Hollier. IWM’s standard range offers high efficiency, reliability and low running costs. The firm can also manufacture competitively priced, tailormade solutions. Current orders include crate and utensil washers and a sanitary bin washer for medical applications. Despite the recent surge in demand, IWM is committed to short delivery times. Contact: Carl Hollier Industrial Washing Machines Ltd Facet Road Kings Norton Birmingham B38 9PT United Kingdom T: +44 (0)121 459 9511 E: carl@indwash.co.uk www.indwash.co.uk

Infor bags $1.2 million SABMiller deal South African Breweries (SAB) has invested $1.2 million in Infor’s Supply Chain Management System (SCM). The system will be installed throughout SAB’s operations, including 70 warehouses and 12 production plants, before being rolled out in SABMiller’s overseas operations. The SCM Advanced Planner and Scheduler will optimise and integrate operations in five soft drinks plants and seven breweries across South Africa. “Infor SCM Demand Planning will be used to drive our sales and operations planning, enabling shorter, easier planning cycles and quicker responses to market changes,” said SAB programme manager Rudi Van Schoor. SCM takes a holistic view of the entire supply network to simplify SAB’s increasingly complex operations. Optimisation includes reverse logistics, enabling consistent supply of empty bottles to breweries.

Infor’s Andrew Kinder said: “With seven of the top 10 global brewers using our solutions, Infor has extensive experience in this sector.” Contact: Sales Dept Infor The Phoenix Building Central Boulevard Blythe Valley Park Solihull West Midlands B90 8BG United Kingdom T: +44 (0)121 615 8000 E: ukmarketing@infor.com www.infor.com

Logopak overcomes space restrictions

A gantry-mounted labeller from Logopak is performing at speeds of up to 80 cases a minute, 40 per lane, in tight space at Lancashire soft drinks filler Cott Beverages. Two 525F print-and-apply labelling machines have been mounted on a gantry over a case-packer outfeed at Cott’s factory in the town of Nelson to overcome limitations on space. Factory layout leaves no space for pack-turning or conventional labelling by floor-standing equipment, so the purpose-built solution directs

cases into two lanes around a 180 degree conveyer. As each case leaves the packer it is labelled on the front using specially designed carbon-fibre arms with blow-on applicators. Logopak says lightweight carbon-fibre strengthens the arms while blow-on applicators minimise pack contact to reduce mechanical strain on the equipment. Mounted on slides to allow maximum accessibility for stock replenishment, the machines are equipped with jumbo-size reel-holders for extended running periods. Contact: Wilson Clark Logopak International Ltd Enterprise House George Cayley Drive Clifton Moor York YO30 4XE United Kingdom T: +44 (0)1904 692333 E: salesonweb@logopak.net www.logopak.com

Companies appearing in this review have contributed to the cost of production 30

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Brewers’ Guardian, June 2009

Industry news

Hubbard expands England operations

Hubbard Products has opened a new transport refrigeration service centre in the Northwest of England and is developing a new sales and administration facility in the West Midlands. The new 4,000 square foot service centre, situated close to the M61 in Chorley, offers full maintenance and installation for Hubbard and Zanotti vehicle refrigeration systems and will serve as a base for the firm’s engineers. Serving Cumbria, the Northwest and North Wales, the site offers installation packages, full servicing programmes, refurbishment services and preventative maintenance. The new West Midlands facility, in Tipton, is designed to create

additional growth for Hubbard by drawing on the wealth of engineering skills being released as the automotive and engineering industries downsize. Hubbard managing director Pat Maughan says: “The establishment of our Tipton facility means that we can access a wider and more diverse range of highly trained skill sets.” Contact: Dougie Stoddart, Commercial Director Hubbard Products Ltd Hillview, Church Road Otley, Ipswich Suffolk IP6 9NP United Kingdom T: +44 (0)1473 892289 E: commercial@hubbard.co.uk www.hubbard.co.uk

ELGA softens up water applications ELGA Process Water’s Berkoion water softeners are suitable for a range of industrial applications from low pressure boiler feeding to reverse osmosis pre-treatment. Using high-capacity cation exchange resins, corrosion-resistant GRP resin vessels and polyethylene brine tanks, three ranges are available. The Berkoion Compact range (0.5 to 3.0m3/h) boasts integrated brine tanks and volume or time-based automatic regeneration. Multiplex versions ensure continuous output and flexibility. ‘A’ Series units automatically regenerate after four days without use. The Berkoion Classic range (up to 17m3/h) comes in simplex or duplex configurations. Auto-regeneration models are time, volume or censor© Advantage Publishing Ltd

•

controlled. Units boast LCD interfaces and can be integrated with central control systems. The Berkoion High Flow Duplex range (up to 68m3/h) incorporates multiple valves to cut pressure loss by 50% compared to single-valve systems. As with Classic models, this range uses Bercore counter current regeneration to improve quality and cut operating costs. Contact: Marketing Communications ELGA Process Water Marlow International Parkway Marlow, Bucks SL7 1YL United Kingdom T: + 44 (0)1628 897000 E: sales.uk@veoliawater.com www.elgaprocesswater.co.uk

Brewers’ Guardian, June 2009

Filton extends Autotilt’s reach The resurgence of cask ales is fuelling interest in Autotilt stillages, according to Filton Brewery Products, the only UK firm to offer such products with mechanical lifetime warranties. Now the firm is expanding beyond its heartland in the Southeast of England. Managing director Martin Hughes says the recession, scarce credit and spiralling costs are eroding margins in the off-trade. But he adds: “One key area where money can be saved is in the cellar. “Whilst many of our products are standard industry items, we’re constantly developing new ideas and equipment. It’s all aimed at making life easier for the user and improving profits.” The Filton Autotilt comes with a mechanical lifetime warranty and can reduce wastage to half a pint per cask. The firm specialises in outof-cellar cask and keg cooling using

cooling saddles and jackets and low profile immersion coolers. Contact: Sales Department Filton Brewery Products Ltd 42A Mill Road Hailsham East Sussex, United Kingdom BN27 2HT T: +44 (0)1323 847386 E: sales@filton.net www.filton.net

Cut kieselguhr and costs with GEA’s PROFI System

Breweries looking to boost their green credentials by ditching kieselguhr are increasingly turning to the PROFI System, according to GEA Westfalia Separator. The combined separator/membrane system allows continuous beer clarification and separation whilst cutting out the need for kieselguhr. Non-aggressive cleaning media are adequate for the membranes in the system. The system uses a unique centrifugal polisher to deliver consistent filtration and aids brewers’ bottom-lines by cutting out the substantial material and disposal costs associated with environmentally damaging kieselguhr. Romania’s Borsec Brewery has

reaped the benefits of the PROFI System, enjoying reduced water and energy consumption and upped system flexibility and beer quality. Compared to rival kieselguhr-free solutions, the PROFI System can separate more than 99% of solids in shorter filtration times with very low losses. With no retentate cycle (including cooling) or processing, energy use and costs are cut. Contact: John Cook Westfalia Separator Ltd Old Wolverton Milton Keynes Buckinghamshire MK12 5PY United Kingdom T: +44 (0)1908 576512 E: john.cook@geagroup.com W: www.gea-westfalia.co.uk 31

Industry news

Submersible pumps an exceptional class

The new Grundfos SL range of submersible pumps offers durable and service-friendly solutions to industry, while employing many unique innovations. This recently extended range was specifically designed to optimise system performance whilst cutting maintenance requirements. The SL1 range of channel impellor options are ideal for sewer applications while the SLV Super Vortex range is designed for liquids with high solids, fibres and gassy sludge content.

All options include features such as a moisture-proof plug, double mechanical seal, Eff1 motors and an easy-to-operate clamp enabling 180-degree rotation for motor positioning. Add these features together and you have the sum of an exceptional new class of submersible pump. For more information on this and other members of the extensive water utility solutions package available from Grundfos, visit www.water-utility. grundfos.com Contact: Grundfos Pumps Ltd, Grovebury Road, Leighton Buzzard, Bedfordshire LU7 4TL United Kingdom T: +44 (0)1525 850000 E: ukindustry@grundfos.com www.grundfos.co.uk

Lab M appoints new export sales manager

Microbiology specialist Lab M has appointed a new export sales manager as the firm continues its international expansion. Veronica Ponnuthurai takes over the role from Colin LeGood, who has become Lab M’s global sales and marketing manager. An MSc-educated microbiologist with sales experience gained with firms such as Thermo Fisher Scientific and Eppendorf, Ponnuthurai has relocated from Malaysia to the UK to take up the position. 32

“Veronica’s product and market knowledge mean that she will be making an immediate contribution to Lab M’s continuing drive to develop existing markets and open up new ones,” says LeGood. The firm’s oversees network was recently boosted by the arrival of four new distributors: Dana Pharma in Iraq; KD3 Medical in Mali; Labquip in Lebanon and Ardeola in the Baltics. Integrated research, development and quality manufacturing allows Lab M to provide fast and accurate micro-organism detection, isolation and identification methods. Contact: Colin LeGood, Lab M Limited, Topley House, 52 Wash Lane, Bury, Lancashire BL9 6AS United Kingdom T: +44 (0)161 797 5729 E: info@labm.com www.labm.com

ABB enhances drive module capabilities

ABB’s new drive module boasts an in-built energy-saving calculator, an embedded Modbus and drive-todrive link, an intelligent user interface and a host of further features to up efficiency and ease-of-use. Energy consumed and saved is displayed in KW hours and money by the system’s calculator, which also shows duration curve and load profile. An automatic energy optimiser ensures best drive efficiency. The drive’s internal fan has an automatic on/off switch. The user interface ends the need for constant manual referrals, increas-

ing ease-of-use. The embedded Modbus serial link allows high speed master/follower functionality while maintenance and diagnostic assistants minimise downtime. A Safe Torque Off feature provides safety by removing torque from the motor shaft while Direct Torque Control gives higher efficiency. Extremely compact and modular with removable memory units and flexible software configuration, the system offers many benefits to users. Contact: Steve Ruddell, ABB Limited, Daresbury Park, Daresbury, Warrington, Cheshire WA4 4BT United Kingdom T: +44 (0)1925 741111 E: energy@gb.abb.com www.abb.co.uk/energy

Can seamer lubricant gains recognition

Petro-Canada’s PURITY FG SEAMER-E Fluid is recognized by PneumaticScaleAngelus – one of the world’s largest Original Equipment Manufacturers of can seamer machines. The recognition includes no objection for the use of PURITY FG SEAMER-E Fluid in seamers of the series: 61/62H, 80/81L, 100/101L, 120/121L, 140S, 180S and 12M. Purity FG SEAMER-E Fluid is a mineral oil based product formulated for use in high-speed continuous lubrication seaming units. FG SEAMER-E Fluid also meets

the highest in food industry safety standards and fits perfectly in Hazard Analysis and Critical Control Point and Good Manufacturing Practice plans. All components comply with FDA regulation 21 CFR 178.3570. The product is also registered by NSF as an H1 lubricant for use in food processing plants where incidental food contact may occur. “Maintenance managers in food processing facilities know just how hard it is to find a seamer fluid that is both recognized by PneumaticScaleAngelus and carries NSF H1 approval,” says Colleen Flanagan, Specialty Fluid Category Manager, Petro-Canada. Contact: Petro-Canada T: +1 800 268 5850 (English Canada) T: +1 800 576 1686 (French Canada) T: +1 888 284 4572 (United States) T: +44 (0)2476 247294 (Europe) E: sales@petro-canada.ca W: lubricants.petro-canada.ca

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Brewers’ Guardian, June 2009

International Trade Directory Industry news

Supplies & services for the brewing industry Keep your company’s name in front of the international brewing industry every month with an entry in Brewers’ Guardian’s Trade Directory. For details, email kamini@advantagepublishing.co.uk or visit www.brewersguardian.com

BREWING ANALYSIS & CONSULTANCY

beer, soft drinks and wine dispense

CIP detergents & disinfectants

www.bri-advantage.com Tel: +44 (0) 1737 822272

No 1 in Britain for drinks dispense International House, Penistone Road, Fenay Bridge, Huddersfield, HD8 OLE www.brewfitt.com Tel: 01484 340800 Fax: 01484 340900

England Worthside Ltd. Manufacturers and Suppliers of Drinks Dispense Equipment to the Beer and Soft Drinks Industry. Hope Mills, South Street, Keighley, West Yorkshire BD21 1AG. Tel: 01535 682222. Fax: 01535 682223 email: enquiries@worthside.co.uk

: Analysis : Consulting : Information : Training

BEER FLAVOUR

HOP AROMA EXTRACTS HOP BITTER EXTRACTS NON-HOP FLAVOURS HOP POCKET LANE, PADDOCK WOOD, KENT TN12 6DQ T: +44 1892 833415 F: +44 1892 836987 E: intray@botanix.co.uk Member of Barth-Haas Group

BREWERY AUTOMATION

Campden BRI

food and and drink drink innovation food innovation

Meura (Brewery Equipment) Ltd

CODING & MARKING MACHINES INK JET PRINTERS & LASER CODERS FOR PRODUCT CODING AND MARKING

Linx Printing Technologies Ltd, Burrel Road, St Ives, Cambridgeshire PE27 3LA. Tel: 01480 302100. Fax: 01480 302116. Website: www.linx.co.uk

BREWING SUGARS

CONDUCTIVITY MEASURING EQUIPMENT

Ragus Sugars Manufacturing Limited 193 Bedford Avenue Slough SL1 4RT England +44 (0)1753 575353 +44 (0)1753 691514 sales@ragus.co.uk www.ragus.co.uk

Unit 4, Holmewood Business Park, Chesterfield Road, Chesterfield Derbyshire S42 5US Tel: 01246 599760, Fax: 01246 599778 E-mail: uksales@hachultra.com www.hachultra.com

CARBON DIOXIDE MEASUREMENT & CONTROL EQUIPMENT

Conveyor lubrication Sopura Ltd

Unit 4, Holmewood Business Park, Chesterfield Road, Chesterfield Derbyshire S42 5US Tel: 01246 599760, Fax: 01246 599778 E-mail: uksales@hachultra.com www.hachultra.com

St Andrews House, 26 Brighton Road, Crawley, Sussex RH10 6AA. Tel: +44 (0)1293 538471 • Fax: +44 (0)1293 537965 Email: uk@sopura.com • www.sopura.com YOUR RELIABLE PARTNER FOR CUSTOMISED HYGIENE SOLUTIONS IN THE BREWING INDUSTRY

CARBON DIOXIDE MONITORS & ALARMS

Automated Control Solutions Ltd. Lancaster Park, Newborough Road, Needwood, Burton upon Trent, Staffs. DE13 9PD T: +44 (0)1283 575995 F: +44 (0)1283 575996 www.acs-ltd.uk.com

Tel: +44 (0)1293 538471 • Fax: +44 (0)1293 537965 Email: uk@sopura.com • www.sopura.com

BREWING EQUIPMENT

Telephone: Facsimile: Email: Web site:

Flavour control

St Andrews House, 26 Brighton Road, Crawley, Sussex RH10 6AA.

YOUR RELIABLE PARTNER FOR CUSTOMISED HYGIENE SOLUTIONS IN THE BREWING INDUSTRY

1 Park Farm, Ermine Street, Buntingford, Herts SG9 9AZ Tel: 01763 272680. Fax No: 01763 272321. Email: info@meura.co.uk www.meura.com

Refurbishment and supply of cooling & dispense equipment LIVERPOOL STREET, SHEFFIELD S9 2PU • Tel: 0114 243 1721 Fax: 0114 256 0130 • E-mail: sales@hallamshire.co.uk • www.hallamshire.co.uk

Sopura Ltd

for the Beer, Wine and Spirit Industries

Analox Sensor Technology Ltd.

dispense EQUIPMEnt

Portable & fixed infra-red monitors. The solution to your CO2 hazards from the innovators in gas measurement techniques

Drinks Dispense Group Limited Lakeside house I Burley Close Chesterfield I Derbyshire I S40 2UB Tel: +44 (0) 1246 273166 I Fax: +44 (0) 1246 273166 Web: www.drinksdg.com Email: enquiries@drinksdg.com

15 ELLERBECK COURT, STOKESLEY BUSINESS PARK, NORTH YORKSHIRE TS9 5PT Tel: 01642 711400 Fax: 01642 713900 Web: www.analox.net Email: info@analox.net

BGCellar Directory 09- 55 Systems x 20:Layout 1 Cooling

20/

DISSOLVED OXYGEN ANALYSERS

Green Award Winning, ECA approved, energy efficient Cellar Cooling & Econ-O-Mate cost effective heat recovery module. +44 (0)1473 892289 commercial@hubbard.co.uk www.hubbard.co.uk

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Brewers’ Guardian, June 2009

Unit 4, Holmewood Business Park, Chesterfield Road, Chesterfield Derbyshire S42 4US Tel: 01246 599760, Fax: 01246 599778 E-mail: uksales@hachultra.com www.hachultra.com

International Trade Directory Supplies & services for the brewing industry

dripmats

FILTERS

GAS MEASURING SYSTEMS

Unit 4, Holmewood Business Park, Chesterfield Road, Chesterfield Derbyshire S42 4US Tel: 01246 599760, Fax: 01246 599778 E-mail: uksales@hachultra.com www.hachultra.com

Coasters, Ash Trays, Clocks, Playing Cards, Pump Clips, Bar Runners and Leisurewear Tel 0113 393 6390 info@thekatzgroup.com www.thekatzgroup.com

VELO Beverage Processing

Contact:

ENZYMES

Amigase ®

Brewers Clarex

Brewers ® Chill

Filtrase ®

Brewers ® Fermex

BATS ®

Isona ®

MATS ®

Dexlo ®

Mycolase ®

GLASS DESIGN FOR BRAND IDENTITIES RASTAL GmbH & Co. KG PO Box 1354 D-56194 Höhr-Grenzhausen Phone: +49 26 24-16-0 Fax: +49 26 24-16-107 rastal@rastal.com www.rastal.com

Kemtile Ltd. DSM Food Specialties Beverage Enzymes PO Box 1 2600 MA Delft The Netherlands

Brewers Protease ® Collupulin ®

PO Box 25, Ledbury HR8 1YL Tel: 01531 631948 Fax: 01531 635966 E-mail: info@beverageprocess.com Web:www.beverageprocess.com

flooring – industrial

Experts in enzymes & beer ingredients

Brewers Flow ®

Beverage Process Ltd

GLASSES, DRINKING, COLOUR 17.10.2008 DECORATED13:47 Uhr S

Anz. 55x30mm

Phone +31 15 279 4001 Fax +31 15 279 4020 email: info.beverageingredients@dsm.com

Unit C3 Taylor Business Park, Warrington Road, Risley, Warrington WA3 6BL. e mail: all@kemtile.co.uk Tel: 01925 763045 Fax: 01925 763381

HEAT EXCHANGERS Specialists in hygienic applications!

www.dsm-foodspecialties.com

West Carr Road, Retford, Nottinghamshire, DN22 7SN E: info@moodysystems.co.uk T: +44 (0) 1777 701 141 W: www.moodysystems.co.uk

FLOW MEASUREMENT The Kerry product range includes enzymes to enhance process efficiency and beer quality, clarification process aids, yeast based cloud systems, foam control, foam stabilisers, speciality yeast, yeast foods, and anti-oxidants systems.

Brewing Technology Centre, Cork, Ireland TEL +353 21 437 6400 www.brewing-solutions.com

FILTER SHEETS

CARLSON FILTRATION LTD Butts Mill, Barnoldswick, Lancs BB18 5HP. Tel: 01282 811000. Fax: 01282 811001.

Web site: http://www.carlson.co.uk e-mail: sales@carlson.co.uk

FILTERS

 

HOPS, HOP EXTRACTS & HOP PELLETS

   

FLOW MEASUREMENT, BLENDING, ON-SITE CALIBRATION

Hop production and processing R&D of hops and hop compounds Joh. Barth & Sohn GmbH & Co. KG Freiligrathstr. 7/9, 90482 Nuremberg t: +49 911 54890 e: info@johbarth.de www.barthhaasgroup.com

FLOWMETERING AND PROCESS CONTROL Cross Edge Works, Green Haworth, Accrington, Lancashire BB5 3SD. Tel: 01254 395651. Fax: 01254 237349 Email: info@meteringsystems.bit8.net

Charles Faram & Co Ltd The Hop Store, Monksfield Lane, Newland, Malvern, Worcestershire WR13 5BB England

15 Moorbrook, Southmead Ind Park, Didcot, Oxon OX11 7HP England

T: +44 (0)1905 830734 F: +44 (0)1905 831790 E: enquiries@charlesfaram.co.uk

Tel: 01235 512951 Fax: 01235 512900 www.fluid-management.co.uk

foam detergents Sopura Ltd

St Andrews House, 26 Brighton Road, Crawley, Sussex RH10 6AA.

Europa House, Havant Street, Portsmouth, Hants, PO1 3PD United Kingdom Tel +44 (0)23 9230 3303 • Fax +44 (0)23 9230 2509 processuk@europe.pall.com • www.pall.com

Tel: +44 (0)1293 538471 • Fax: +44 (0)1293 537965 Email: uk@sopura.com • www.sopura.com YOUR RELIABLE PARTNER FOR CUSTOMISED HYGIENE SOLUTIONS IN THE BREWING INDUSTRY

Hop Breeding Services China Farm Office, Upper Harbledown, Canterbury, Kent CT2 9AR T/F: +44 (0)1227 781056 E: Peter.Darby@wyehops.co.uk Supported by Shepherd Neame, brewers of Spitfire Ale

•

Brewers’ Guardian, June 2009

HRS Heat Exchangers Ltd, Part of the Barth-Haas Group PO Box 230, Watford WD18 8TX Tel: 01923 232335 Fax: 01923 230266 E-mail: adeel@hrs.co.uk www.hrs.co.uk Worcester and Midland

Cold Stores Limited

KEG WASHING DATA LOGGER

in hygienic applications! 174Specialists Bromyard Road, Worcester WR2 5EE. Tel/fax: 01905 422552. E-mail: wmcs@nascr.net West Carr Road, Retford, Nottinghamshire, DN22 7SN E: info@moodysystems.co.uk T: +44 (0) 1777 701 141 W: www.moodysystems.co.uk

Supplies & services for the brewing industry

Flavour control

P R O C E S S A NHOP D PABITTER C K A G I NEXTRACTS G S O www.comacgroup.com LUTIONS FO R S M A L LFLAVOURS , NON-HOP MEDIUM & LARGE BREWERIES

HOP POCKET LANE, PADDOCK WOOD, KENT TN12 6DQ

LOWFIELDS ROAD, LEEDS, LS12 6BS Tel: 0113 244 5225 Fax: 0113 244 5226 Part of the Barth-Haas Group Turnkey keg plants sales@microdat.co.uk www.microdat.co.uk

T: +44.1892.833415. F: +44.1892.836987. E: intray@botanix.co.uk

Brand Consultancy & development

Company & Brand identity & strategy

Impactful campaigns across all media

r pro 38 f e s s i o n . “ www.comacgroup.com

Tasting notes and creative copy-writing

T: +44 (0) 1142 667 333 E: info@redapple-pmc.com

W: www.redapple-pmc.com S

point of sale

MASH FILTERS

PIPEWORK Enhance your brand image with & a point of sale high SERVICES) (HYGIENIC

AM KREUZSTEIN 5 D-95326 KULMBACH PHONE: +49(0)9221 / 708-0 Bespoke marketing solutions from a W W W. T Obrewing E P F E industry R . D E specialist team E-MAIL: INFO @ TOEPFER.DE

gloss, vibrant colour 3D

enamelled brandofbadge Fabrication and installation stainlessmade steel tanks and vessels, including stainless and carbon to high quality specifications steel pipework, and general fabrication work, for the food, brewery and process by industries. experts. BS EN ISO 9002: 1994

Meura (BreweryBrand Equipment) Ltd Consultancy & development

HI-LINE S E R V Igloss C E S finish (LICHFIELD) TD Low cost, durable prints alsoLavailable. 56 Britannia Way, Lichfield, Staffs WS14 9UY

1 Park Farm, Ermine Street,Company Buntingford, Herts& SG9 & Brand identity strategy9AZ Impactful campaigns all media Tel: 01763 272680. Fax No:across 01763 272321. clips, TV/DVD, Web, Print Email: info@meura.co.uk Labels, H/Pwww.meura.com

01543 250925. gg@leawood.co.uk Call 01623 512Tel: 46601543 • Fax258741. 01623 Fax: 512 866 • E-mail: E-mail: info@hilineservices.co.uk

MARKETINGBeerSERVICES Sommelier, Beer & Food pairing

Tasting notes and creative copy-writing

T: +44 (0) 1142 667 333 E: info@redapple-pmc.com

PR, event-hosting and presentation

W: www.redapple-pmc.com S

Sowing the seeds of inspiration...

Bespoke marketing solutions from a brewing industry specialist team

kegs and casks

Company & Brand identity & strategy Impactful campaigns across all media Tasting notes and creative copy-writing Beer Sommelier, Beer & Food pairing PR, event-hosting and presentation

the seeds of inspiration... Meura (BrewerySowing Equipment) Ltd

1 Park Farm, Ermine Street, Buntingford, Herts SG9 9AZ Tel: 01763 272680. Fax No: 01763 272321. Email: info@meura.co.uk www.meura.com

Tel 01484 653011 info@thekatzgroup.com www.thekatzgroup.com process spare parts

MASH FILTERS

Enhance your brand image with a point of sale high gloss, vibrant FREEcolour PHONE 3D 0800 666 397 +44 (0) 1777 869 983 enamelled F:brand badge made E: info@moodydirect.co.uk to high quality specifications Spare parts and by service for: experts.

MEASUREMENT systems

Over 15,000 lines in stock, same or next day delivery!

email: info@khs-till.de internet: www.khs-till.de

KEG WASHING DATA LOGGER

ADVERTISE HERE!

email: kamini@advantagepublishing.co.uk

• Alcohol Measurement • Brix Measurement • CO2 Measurement Meura (Brewery Equipment) • Density &Ltd Concentration Anton Paar Ltd., Measurement 1 Park Farm, ErmineCourt, Street, Buntingford, Herts SG9 9AZ 13 Harforde Hertford, • Wort SG13 7NW. GB Tel: 01763Herts 272680. Fax No:Measurement 01763 272321.

• Pumps • Valves • Homogenisers

• Fillers • General processing equipment Low cost, durable gloss finish prints also available. Call 01623 512 466 • Fax 01623 512 866 • E-mail: gg@leawood.co.uk

: 44 1992 514731 • FAX : 44 1992 514739 Email: Phone info@meura.co.uk www.meura.com e-mail : info.gb@anton-paar.com

Swindon • Limited Unit 18, Blackworth Industrial Park, Highworth, Swindon, Wilts, SN6 7NA

MILLING EQUIPMENT

Brewers’ Guardian, December/January 2008 POINT OF SALE

call +44 (0) 121 523 8437 fax +44 (0) 121 551 7032 enquiries@ruddmacnamara.com Coasters, Ash Trays, Clocks, Playing Cards, www.ruddmacnamara.com Pump Clips, Bar Runners and Leisurewear

Labels, H/P clips, TV/DVD, Web, Print

T: +44 (0) 1142 667 333 E: info@redapple-pmc.com W: www.redapple-pmc.com S

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Front and back of bar branded promotional plaques and labels made to the highest quality. Over 20 years experience in the industry for major UK and international brands

Brand Consultancy & development mash filters

Turnkey Keg Plants for the brewery and soft drinks industry

profession.“

PR, event-hosting and presentation

T Ö P F E R K USERVICES LMBACH GMBH Marketing

Unit 7 College Farm Buildings, Barton Road, Pulloxhill, Beds, UK Tel: 0044 (0)1525 718288 Fax: 0044 (0)1525 718580 email: sales@enterprisetondelli.co.uk

Brewery Support Services Container Management Division Suite 39, Anglesey House, Anglesey Road, keg plants Turnkey Burton on Trent, Staffordshire DE14 3NTbrewery and for the T: +44 (0)1283 743734soft drink industry E: justin.raines@kammac.com Kapellenstr. 47-49 phone: +49 6192 491-0 65830 Kriftel fax: +49 6192 491-144 www.kammac.com

Beer Sommelier, Beer & Food pairing

Sowing the seeds of inspiration...

T: +44(0)1283 564936, W: darleylimited.co.uk

S A L E Swww.enterprisetondelli.com TEAM, TÖPFER KULMBACH

www.comacgroup.com

Unit 4, Holmewood Business Park, Chesterfield Road, Chesterfield Derbyshire S42 5US Tel: 01246 599760, Fax: 01246 599778 Coasters, Ash Trays, Clocks, Playing Cards, E-mail: uksales@hachultra.com www.hachultra.com Pump Clips, Bar Runners and Leisurewear Unit 4, Holmewood Business Park, Chesterfield Road, Chesterfield Derbyshire S42 5US Tel 01484 653011 Tel: 01246 599760,info@thekatzgroup.com Fax: 01246 599778 E-mail: uksales@hachultra www.hachultra.com www.thekatzgroup.com

Labels, H/P clips, TV/DVD, Web, Print

internet: www.khs-till.de

KEG HANDLING PLANT

NITROGEN ANALYSERS

Darley - make leading wet-glue label supplier to the brewing, brands water and soft drinks work industries.

Specialists in temperatur e contr olled hop and hop pr oduct storage.

Unit 7 College Farm Buildings, Barton Road, Pulloxhill, Beds, UK Tel: 0044 (0)1525 718288 Fax: 0044 (0)1525 718580 email: sales@enterprisetondelli.co.uk

www.buhlergroup.com NITROGEN ANALYSERS POINT OF SALE

Bespoke marketing solutions from a brewing industry specialist team

Kapellenstr. 47-49 Midland phone: +49 6192 491-0 Worcester and 65830 Kriftel fax: +49 6192 491-144 KEG HANDLING PLANT Germany email: info@khs-till.de Cold Stores Limited

email: Turnkey Keg kamini@advantagepublishing.co.uk Plants for the brewery and soft drinks industry

Tel: +44 (0)20 7055 6650 • Fax: +44 (0)20 7055 6651 E-mail: buhler.london@buhlergroup.com

LABELLING LABELLING

for the brewery and soft drink industry

174 Bromyard Road, Worcester WR2 5EE. Tel/fax: 01905 422552. E-mail: wmcs@nascr.net ADVERTISE HERE!

56 Britannia Way, Lichfield, Staffs WS14 9UY Tel: 01543 258741. Fax: 01543 250925.

Bühler Ltd., 20 Atlantis Avenue, London E16 2BF E-mail: info@hilineservices.co.uk

MARKETING SERVICES

& HOP PELLETS

Unit 7 College Farm Buildings, Barton Road, Pulloxhill, Beds, UK Tel: 0044 (0)1525 718288 Fax: 0044 (0)1525 718580 HOP AROMA EXTRACTS email: sales@enterprisetondelli.co.uk

HI-LINE S E R V I C E S (LICHFIELD) L T D

The Keg Monitoring Specialist

KEG & CASK Process & HOPS, HOP EXTRACTS PACKAGING SOLUTIONS Turnkey Keg Plants for the brewery and soft drinks industry

Unit 6 Shepherds Grove Industrial Estate, Stanton Bury St Edmonds, Suffolk IP31 2AR Phone +44 (0)1359 250989 Fax: +44 (0)1359 253429 Fabrication alanruddockeng@btconnect.com and installation of stainless steel www.brewing-equipment.co.uk tanks and vessels, including stainless and carbon steel pipework, and general fabrication work, for the food, brewery and process industries. BS EN ISO 9002: 1994

• Tel: +44 (0)1793 764700 • Fax: +44 (0)1793 764554 • E-mail: enquiries@rotechkeg.com • www.rotechkeg.com

KEG HANDLING PLANT

(HYGIENIC & SERVICES)

International Trade Directory

Specialists in temperatur e contr olled hop and hop pr oduct storage.

Germany

Manufacturers of Two and Four Roll PIPEWORK Precision Malt Mills and Intake Systems

TÖPFER KULMBACH GMBH AM KREUZSTEIN 5 D-95326 KULMBACH P H O SWINDON N E : + 4 9 (•0LIMITED )9221 / 708-0 Unit Park, W W 18, W. TBlackworth O E P F E RIndustrial .DE Highworth, Swindon, Wilts, SN6 7NA E-MAIL: INFO @ TOEPFER.DE

•

project managers/ ENGINEERS2008 Brewers’BREWERY Guardian, December/January

S A L E S T E A M , T• Ö PTel: F E R K+44 U L M B (0)1793 ACH

764700 • Fax: +44 (0)1793 764554 • E-mail: enquiries@rotechkeg.com • www.rotechkeg.com

The Keg Monitoring Specialist

LABELLING • Self Adhesive Labels • Flexible Packaging • UV Flexographic Print • Rotary Silk Screen • Thermal Print Systems

d, they communicate an uy a particular product. xpress values and conerience and specialisa-

OPM GROUP (Keighley), Speedprint House, Halifax Road, Cross Roads, Keighley, West Yorkshire BD22 9DH T: +44 (0)1535 642528 E: sales@opmlabels.com www.opmlabels.com

and finishes in order to regard to quality and solution yest communicate an for you.

particular product. ss values and connce and specialisa-

aging • Wrap-around labels •

inishes in order to ard to quality and olution for you.

TÖPFER KULMBACH GMBH AM KREUZSTEIN 5 D-95326 KULMBACH PHONE: +49(0)9221 / 708-0 W W W. T O E P F E R . D E E-MAIL: INFO @ TOEPFER.DE

TÖPFER KULMBACH GMBH AM KREUZSTEIN 5

printing • Flexographic D - 9 5 3 2 6 printing KULMBACH

• Wrap-around labels •

ng • Flexographic printing

S T I C K T O T H E B E S T.

•

Manufacturers of Two and Four Roll Precision Malt Mills and Intake Systems

Unit 6 Shepherds Grove Industrial Estate, Stanton Bury St Edmonds, Suffolk IP31 2AR Phone +44 (0)1359 250989 Fax: +44 (0)1359 253429 www.brewing-equipment.co.uk alanruddockeng@btconnect.com

Specialists in malt and dry goods intake systems, storage silos, malt milling and destoning

PROCESS ENGINEERING AND PROJECT MANAGEMENT ... TO THE BEVERAGE AND HYGIENIC PROCESS INDUSTRIES

Unit 14, Hardwicke Stables, Hadnall, Shrewsbury, SY4 4AS

Tel: 01939 211 058 Fax: 01939 211 048 sales@m-projects.uk.com www.m-projects.uk.com

project managers 16/5/08 & consultants

M-Projects BG Advert.indd 1

14:24:08

Bulk Storage and Process Systems Ltd No.1 Colekitchen Lane, Gomshall, Surrey GU5 9LH Tel: +44 (0)1483 202211 Fax: +44 (0)1483 205110 Email: bill@bulksystems.co.uk www.bulksystems.co.uk

Bühler Ltd., 20 Atlantis Avenue, London E16 2BF

Tel: +44 (0)20 7055 6650 • Fax: +44 (0)20 7055 6651 E-mail: buhler.london@buhlergroup.com

Brewers’ Guardian, June 2009

www.buhlergroup.com

International Trade Directory Supplies & services for the brewing industry

project managers & consultants

SPENT GRAINS HANDLING Specialists in spent grains and draff handling, silo storage and loading systems Bulk Storage and Process Systems Ltd

email: kamini @advantagepublishing.co.uk

No.1 Colekitchen Lane, Gomshall, Surrey GU5 9LH Tel: +44 (0)1483 202211 Fax: +44 (0)1483 205110 Email: bill@bulksystems.co.uk www.bulksystems.co.uk

STABILISATION REFRIGERATION Gordon Refrigeration Ltd. Unit 1 Whisby Way, Whisby Road Lincoln LN6 3LQ. Tel: 01522 694455 • Fax: 01522 694477 email: info@gordonrefrig.com • www.gordonrefrig.com

Specialists in optimisation, application, design & build, service & maintenance of brewery refrigeration systems.

SACCHAROMETERS & THERMOMETERS

systems integration

ISP EUROPE

STAINLESS STEEL ENGINEERING

British Bung Manufacturing Co Ltd Lowland Works, Mirfield, W. Yorks WF14 8LY Tel: 01924 493071 Fax: 01924 480632

TANK LININGS & COATINGS

Specialists in the installation of new internal tank lining systems and the repair of existing linings. All vessel types treated. National and international work undertaken.

• Maintenance

• Installation

• Pipework

Unit 2c & 2g, Underlyn Farm, Underlyn Lane, Marden, Tonbridge, Kent TN12 9BQ Tel: 01622 831008 Fax: 01622 833360 kgmaint@supanet.com

SHIVES, SPILES & FAUCET PLUGS

Lancaster Park, Newborough Road, Needwood, Burton upon Trent, Staffs. DE13 9PD T: +44 (0)1283 575995 F: +44 (0)1283 575996 www.acs-ltd.uk.com

Specialist Industrial Coatings Ltd Stainless Steel Engineering K&G Maintenance Services Ltd

40 Oxgangs Bank, Edinburgh EH13 9LH Tel: 0131 445 7151 Fax: 0131 445 7323 www. stevenson-reeves.co.uk

Automated Control Solutions Ltd.

Waterfield, Tadworth, Surrey KT20 5HQ, UK Tel: +44 (0) 1737 377000 Fax: +44 (0) 1737 377100 Website: http://www.ispcorp.com

• Stainless Steel Fabrication

Stevenson Reeves Ltd.

INCREASE YOUR VISIBILITY advertise here!

Tel: +44 (0)1424 893444 Fax: +44 (0)1424 893471 www.specialist-coatings.co.uk

UV DisinFECTION STAINLESS STEEL PUMPS Hygienic Centrifugal Pumps in Stainless Steel MDM PUMPS LTD

Spring Lane, Malvern Worcs, England WR14 1BP

Hanovia Limited, 780 Buckingham Avenue, Slough, Berkshire SL1 4LA. Tel: +44 (01753) 515300. Fax: +44 (01753) 534277. sales@hanovia.com / www.hanovia.com

Tel: +44 (0)1684 892678 Fax: +44 (0)1684 892841

yeast

e-mail: info@mdmpumps.co.uk website: www.mdmpumps.co.uk

STEAM GENERATORS Manufacturers of Plastic shives, keystones & spiles Roe Head Mill, Far Common Road, Mirfield West Yorkshire WF14 0DG Tel: 01924 496671 Fax: 01924 480257

www.eurobung.co.uk

Clayton Thermal Products Ltd.,

5, Boleyn Court, Manor Park, Runcorn, Cheshire WA7 1SR, Tel: 01928 579009. Fax: 01928 571155 E-mail adress: sales@claytonindustries.co.uk

FOR BREAKING BREWING INDUSTRY NEWS VISIT

www.brewersguardian.com 36

•

Brewers’ Guardian, June 2009

Classified

SECOND HAND EQUIPMENT

BUYING?

SELLING?

CALL US!

Brewing Fermentation Beer treatment Packaging

Tel: (+33) 320 93 66 71 - Fax: (+33) 320 92 80 74 www.wallart.fr - email: info@wallart.fr

Books

ON BREWING

available through Brewers’ Guardian Brewing Author: Ian S Hornsey A historical look at the changes in brewing over the centuries and the up-to-the-minute developments in the brewing process. Chapters on all aspects of brewing including malting, hops, wort boiling and cooling, fermentation, post-fermentation and microbiology. Written by a practising brewer, the book is aimed at all those with an interest in beer – whether already in the industry or students in the food or biological sciences. Paperback, 240 pages, 1999. £23.95.

Malts and Malting

We understand what brewers talk about. Literally. Specialist English-Polish translation in brewing technology, engineering, quality systems and other areas related to beer. Over 10 years experience. TECHNICAL TRANSLATION BUREAU, TYCHY, POLAND Contact: Liliana Bujala Tel/fax: +48 (32) 219 8170 Mobile: +48 506 199 255 Website: www.rosterbiuro.com E-mail: biuro@rosterbiuro.com

Leak Detection Spray

Author: Dennis E Briggs

and ozone layer o valve – spray at any angle from upright to inverted • NATO Stock No: 4910-99-930-4489 ambient temperatures down • For sub-zero o to -45 use GOTEC LT45

Hardback, 824 pages, 1998. £61.50.

•

Brewers’ Guardian, June 2009

CFCs (since 1973)

• Propellant: Compressed Air • Totally safe to user, equipment, environment • Can with 360

An essential up-to-date account of malt manufacture, with an emphasis on barley as the most used cereal grain. Of value to students and practitioners in the malting and malt-using industries, as well as to those interested in industrial biotechnologies or concerned with cereal production.

For details on how to order these books, and for information about the full range available through Brewers’ Guardian, please contact Nigel Smith on Tel: +44 (0)1737 735 018, or visit www.brewersguardian.com

• Non-inflammable • With corrosion inhibitor • Non-toxic and biodegradable • Free oils, halogens, salts, metals and

At the press of a button – GOTEC LDS is instantly ready to locate the smallest low pressure leaks from compressed air and every other gas – quickly, reliably, safely and conveniently.

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Guest columnist

Intellectual currency rates Illustration by Sophie Allsopp

Anders Hummer is vice president of international consultancy Alectia Brew

Brewers who recognise the true value of intellectual exchange will reap bottom line benefits, explains Anders Hummer

The current financial turbulence in the global economy is naturally having a noticeable impact on the global brewing industry. Previously, it has been a standard saying that “cash is king” but it could seem like the king has been upgraded, so the saying has changed to “cash is god.” The cost for financing investment projects has risen and the simple availability of cash has been reduced with the consequence of an increased focus on current operating conditions. When it is windy some people build wind breaks, others build wind mills and unfortunately some are forced to go fly a kite. Nevertheless, the only currency which is not being devalued during a financial downturn is intellectual currency, which is being traded globally. The importance of continuously developing the intellectual currency system cannot be overstated: some of the strongest levers for this could be by amalgamating various facets of international brewing competence in conjunction with competences from outside the brewing industry. The winners in the brewing industry today are those who are troubled by a fear of not being up-to-date, and who speculate upon what can be learned from other industries. Some years ago, I was in close contact with about 20 procurement managers from large brewing groups who all believed that they were the best and achieving the best prices in the industry. It goes without saying that only one could be the best, and therefore 19 were wrong. Personally, I would put my money on the one who was most in doubt whether he was best and was therefore observing all parameters around him. As a generalisation, as global industry consolidation continues and multinational players grow in size,

these groups will, either by force of circumstance or by design, look inwards. Initially there are ideas to exchange, process variations to note and consider. After all, for example, you as a Western European-based brewer may suddenly have access to new counterparts in distant lands, be in South America, Southeast Asia, or South Africa. Multinational groups will develop a new culture all their own: there are systems to harmonise and best production practices to agree, and then implement. So far, so good, but at some point there are decreasing returns on the intellectual exchange rate within brewing groups. The biggest threat is the risk that success leads towards inward looking contentment and complacency. The demand for this particular currency will disappear, with a drop in value as a natural consequence. The best in class brewers, then, will be those that also continue to interact with their peers, at wellestablished international conferences, and at trade shows, the latter with the adding bonus of insights on offer from suppliers, with their product and service innovations increasingly important as brewers strip out centralised support service costs.

Predicting the winners The breweries who take advantage of the current situation by increasing focus on new operating procedures and technologies will for sure be the winners when the weather has stabilised. By combining the accumulated industry technical know-how with robust financial arguments, breweries should be able to contribute value growth of their companies which could exceed the budgeted expectations to profit contribution deriving from volume growth. In this way those breweries

will be able to deliver at least the budgeted profit expected for the next fiscal year. Experience of focussing on all costs that can be ‘compressed’ – normally characterised as all production costs minus the raw and packaging material costs, adjusted for costs related to material losses – shows that compressible costs can be reduced by 20-25% over a short period of time. This is often achieved by creating a window where all internal ideas are blended with global best practise, with all opportunities being carefully discussed, financially analysed, and lastly prioritised according to the difficulty of implementation. The excellence in combining different types of competences is of paramount importance when looking for drivers that can support a strong compression of operating costs in combination with an open attitude to accept changes to yesterday’s best practises. In the brewing industry where intellectual currency is being traded, the request for know how regarding sustainability is often on the lips of the active traders, who may not be in a position to specify their perspective in greater detail. It seems that sustainability know-how regarding how various energy systems impact on operating costs in combination with raw water, treated-water and waste-water, could be the essence of these sustainability discussions. I personally believe that breweries who combine the focus areas mentioned above with aspects relating to health and safety conditions will become role models for other brewery groups. The exchange rate for intellectual currency is being optimised when it is protected by cross-functional competences based upon a strong platform for social responsibility.

•

Brewers’ Guardian, June 2009

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