Increase Draught Beer Profitability: How to Make More ...€¦ · Brewers Association Draught Beer...

Increase Draught Beer Profitability: How to Make More

Money by Focusing on Draught Beer Quality

Neil Witte

Draught Quality Ambassador

On tap…

Tackling the Biggest Quality Issues in Draught Beer

• How and Why

• The costs and benefits of doing it right – Crunching the numbers

Obstacles to Draught Quality

Improving Draught Quality

http://www.draughtquality.org/f/CleaningLog.pdf

http://www.draughtquality.org/f/One-Pager-The-Facts-About-Draught-System-Cleaning.pdf

Line CleaningEvery two weeks

• Caustic chemical solution at 80-110F

• 2% caustic solution, 3% for old or problem lines

• Recirculate with an electric cleaning pump 15 minutes

• Disassemble and clean faucet at every cleaning

• Scrub Coupler at every cleaning

• Always pre-rinse and post-rinse with fresh water

• Always use proper PPE

Quarterly

• Acid line cleaner – descaling

Bi-Annual

• Disassemble and detail FOBs

• Disassemble and detail couplers

Common Objections to Line Cleaning

“My lines don’t need to be cleaned that much.”

“Line cleaning costs me too much money.”

“It wastes too much beer.”

“I only clean my lines once a month and my customers don’t seem to know the difference.”

The Case for Line Cleaning

1. Dirty lines ruin beer’s flavor

2. Line cleaning is inexpensive

3. Cleaning lines regularly will increase sales

Investment in Quality = Increased sales

$305,000.00

$310,000.00

$315,000.00

$320,000.00

$325,000.00

$330,000.00

$335,000.00

$340,000.00

$345,000.00

4% Growth 7% Growth

Profit Growth from Line Cleaning


• Perfect environment for microorganisms

• Food• Protein

• Sugar

• Aerobic and anaerobic

• Rough areas• Beerstone

• Splices

• Older generation tubing

• Rapid growth


• Pediococcus• Produces diacetyl –

butter/butterscotch

• Lactobacillus• Produces lactic acid - sour

• Pectinatus• Cloudy• Acetic acid – vinegar• Sulfur – rotten eggs

• Acetobacter• Acetic acid - vinegar


Source: E.Storgards, “Microbiological Quality of Draught Beer – Is

there Reason for Concern”


Cost of Cleaning

1. Loss of beer

2. Line cleaning fee (non distributor-clean states)


Beer lost = beer contained in the line + .10%

3/8”ID tubing – 3/4 oz./ft.


1/4” ID tubing – 1/3 oz./ft.


50 ft / 3/8” tubing system – 41oz

Line Cleaning – Distributor Cleans

Keg size 1/2 bbl

Cost/keg 150.00$

oz/keg 1984

Cost/oz 0.08$

Glass size 16

Head % 10

Actual Serving 14.4

Kegs/week 1

Servings/Keg 137.8

Cost/serving 1.09$

PTC/Serving 5.00$

Profit/Serving 3.91$

Gross/Keg 688.89$

Net/Keg 538.89$

Net/Month 2,155.56$

Net/Year 25,866.67$

Draught ProfitSystem Length 50

oz/ft 3/4

oz loss per clean 41.25

oz loss per month 82.5

Line Cleaning Fee -$

Cost per cleaning 3.12$

Cost per month 6.24$

Cost per keg 1.56$

Cost per serving 0.01$

Differenceadjusted for cleaning 3.90$ 0.01$

adjusted for cleaning 687.33$ 1.56$


adjusted for cleaning 2,149.32$ 6.24$


Cleaning Cost

System Length 50

oz/ft 3/4



Line Cleaning Fee -$



Cost per keg 1.56$







Cleaning Cost

Line Cleaning – Distributor Cleans

Line cleaning

beer loss costs

about a penny

per serving!

Line Cleaning – Retailer Pays Fee

Keg size 1/2 bbl

Cost/keg 150.00$

oz/keg 1984

Cost/oz 0.08$

Glass size 16

Head % 10

Actual Serving 14.4

Kegs/week 1

Servings/Keg 137.8

Cost/serving 1.09$

PTC/Serving 5.00$

Profit/Serving 3.91$

Gross/Keg 688.89$

Net/Keg 538.89$

Net/Month 2,155.56$

Net/Year 25,866.67$

Draught Profit

System Length 50

oz/ft 3/4



Line Cleaning Fee 7.50$



Cost per keg 5.31$







Cleaning Cost

System Length 50

oz/ft 3/4



Line Cleaning Fee 7.50$



Cost per keg 5.31$







Cleaning Cost

Line Cleaning – Retailer Pays Fee

Total line cleaning

costs are about 4¢ per

serving!

Going from monthly to

bi-weekly cleaning

costs about 2¢ per

serving!

3. Cleaning Lines Regularly Will Increase Sales

Recent Studies:

D. Quain, “Draught Beer Quality – Challenges and Opportunities”

• 7% decrease when cleaned every 5-8 weeks


Recent Studies:

White Paper, Draught Beer Quality Subcommittee, “The Economic Benefits of Line Cleaning”

• Study of wholesaler who purchased line cleaning company

• Shows 4% - 7% sales increase with accounts who moved to 2 week line cleaning cycle

$24,500.00

$25,000.00

$25,500.00

$26,000.00

$26,500.00

$27,000.00

$27,500.00

$28,000.00

4% Growth 7% Growth

Profit Growth from Line Cleaning


4% - 7% Growth = 5 - 8 New Pints/Keg

At $3.87 profit/serving, that’s an extra $15.48 a

week!

$154.48 on a 10 line system!

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Per Month

$212.40 line cleaning cost

$619.20 in new profit

Per Year

$2,548.80 line cleaning cost

$7,430.40 in new profit

Dispense Gas

Dispense Gas

Two main goals of dispense gas:

1. Keep the beer properly carbonated

2. Push the beer from the keg to the faucet

CO2 – Measuring Carbonation

CO2 is measured in Volumes per volume (v/v)

=

2.5 v/v 2.5 v/v

CO2 – Maintaining Carbonation

A balanced keg will maintain the same carbonation throughout the life of the keg.

Two main factors control this:

1. Pressure

2. Temperature2.5 v/v

11 psi @ 38F

Effects of Temperature/Pressure ChangesWarmer Colder

Lower psi Higher psi

Short Draw

Accomplishes both goals:

1. Keeps beer carbonated

2. Pushes beer to faucet100% CO2

2.5 Volumes

38F

11

psig

Long Draw

11

psig

100% CO2

2.5 Volumes

38F

Accomplishes only one goal:


2. Pushes beer to faucet

Long Draw with Blended Gas

2.5 volumes

38F

70% CO2 /

30% Nitrogen

22

psig

• Nitrogen adds the extra “push”.

• Lower % CO2 at higher pressure

maintains carbonation.

Accomplishes both goals:


2. Pushes beer to faucet

Long Draw with Blended Gas

2.5 volumes

38F

70% CO2 /

30% Nitrogen

22

psig

Nitro Pour

1.2 volumes

38°

• Creamer faucet has high resistance

to flow

• Beer at this low CO2 v/v (1.2-1.4)

will absorb 100% CO2 at any

pressure

Nitro Pour

1.2 volumes

38°

25% CO2/75%

Nitrogen

35

psig

Correct Gas for a Regularly Carbonated Beer

CO2-rich blend: 60%-70% CO2

Accomplishes both goals

1. Beer stays carbonated

2. Pushes beer to the faucet

Long Draw

60-70%

Wrong Gas for a Regularly Carbonated Beer

Nitro blend: 25% CO2

Does not accomplish both goals

1. Beer stays carbonated

2. Pushes beer to the faucet

Long Draw

25%

Up Front Costs

$50 $900

or

The Case for the Correct Blend

1. 25/75 Gas has a high operating cost

2. Flat beer leads to expensive overpouring

3. Quality beer increases profit

Gas Type Price Cu. Ft.

Kegs

Dispensed

Gas Cost

per Keg

Pre-Mix (25/75) 40.00$ 244 45.2 0.88$

CO2 (50lb.) 21.00$ 405 75 0.28$

N2 40.00$ 244 45.2 0.88$

70% CO2, 30% N2 Mix 66.06 0.46$

Gas Cost Analysis For Draught Beer Dispensed at 25psi

Operating Cost Comparison

Costs almost 2x as much as

30% 70%


Kegs

Dispensed

Gas Cost

per Keg

Pre-Mix (25/75) 40.00$ 244 45.2 0.88$

CO2 (50lb.) 21.00$ 405 75 0.28$

N2 40.00$ 244 45.2 0.88$

70% CO2, 30% N2 Mix 66.06 0.46$


Operating Cost Comparison

Pours 2/3 as many kegs

as

30% 70%

40

0.42$

16.94$

203.27$

Kegs sold/mo

Savings per keg

Savings per mo

Savings per year

Money Saved on Dispense Gas


Kegs

Dispensed

Gas Cost per

Keg

Pre-Mix (25/75) 40.00$ 244 45.2 0.88$

CO2 (50lb.) 21.00$ 405 75 0.28$

N2 40.00$ 244 45.2 0.88$

70% CO2, 30% N2 Mix 66.06 0.46$


Profit increase

of $203.27

from dispense

gas costs!

Flat Beer Increases Pouring Cost

Noticeably flat in 3-4 days. That’s half of every keg!

Keg size 1/2 bbl 1/2 bbl

Cost/keg 150.00$ 150.00$

oz/keg 1984 1984

Cost/oz 0.08$ 0.08$

Glass size 16 16

Head % 12.5 0

Actual Serving 14.0 16.0

Kegs/week 1 1

Servings/Keg 141.7 124.0

Cost/serving 1.06$ 1.21$

PTC/Serving 5.00$ 5.00$

Profit/Serving 3.94$ 3.79$ 0.08$

Gross/Keg 708.57$ 620.00$ 44.29$

Net/Keg 558.57$ 470.00$ 44.29$

Net/Month 2,234.29$ 1,880.00$ 177.14$

Net/Year 26,811.43$ 22,560.00$ 2,125.71$

Draught Profit

Increase

Profit x .5

Flat Beer Increases Pouring Cost

Profit increase

of $2,125.71

from pouring a

proper head!

$21,257.10 for

a 10 line

system!

Quality Beer Increases SalesReasonable to expect similar growth:

4% Growth = 5 New Pints/Keg

At $3.87 profit/serving, that’s an extra $15.48 a

week!

$154.48 on a 10 line system!






Quality = ProfitSavings from dispense gas purchase - $203.27

Savings from not overpouring beers - $21,257.10

Extra profit from selling better beer - $8,032.96

$21,493.33 from using the proper dispense gas!

Industry Efforts/ResourcesBrewers Association Draught Beer Quality Subcommittee

• Comprised of brewers, both BA-defined craft and others• ABI and MillerCoors

• Started in 2007

• Published the Draught Beer Quality Manual in 2009

• Version 3 published in 2017

• Version 4 available now!!

Draught Beer Quality Manual

• Comprehensive Draught Line Cleaning Guidelines


• One pagers at www.draughtquality.org


• Published Draught Beer Quality

Manual in 2009

• Published Draught Beer Quality

for Retailers in 2014

• Targeted retailer information

Draught Beer Quality for RetailersCleaning Frequencies and Procedures

Draught Beer Quality for Retailers

Line Cleaning Profit Picture

Draught Beer Quality For Retailers

Dispense Gas Cost Analysis

Distributor Staff Training

Draught Technicians/Line Cleaners• Classroom Training – Suppliers, MicroMatic, Craft Quality Solutions

• Line Cleaning

• Draught System Design Basics

• Off-Flavor Training

• In-market Training – Craft Quality Solutions

• Line Cleaning

Sales Teams• Classroom Training – Suppliers, MicroMatic, Craft Quality Solutions

• Draught System Basics

• Off-Flavor Training

Questions?

[email protected]

[email protected]

mailto:[email protected]

mailto:[email protected]

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