1. Steve Ward CBE 555 Presentation October 1, 2012

2.  Brewing Background  History of Brewing in US  Large Breweries vs. Microbreweries  Conclusion and Recommendations  Questions

3.  Beer: beverage made from fermented grains  Major components ◦ Malted barley (Malt) – provides flavor, sugars for fermentation ◦ Yeast – ferments sugars into alcohol ◦ Hops – adds flavor and preserves beer

4. Air Drying Chamber Kiln Water Bath Germinating Barley Barley Grains Malted Barley (“Malt”)

5. Mash Tun Milled Malt Hot Water Mash  Mashing Steps 1. β-glucanase Rest: Polysaccharides  Sugars 2. Protease Rest: Produces nitrogen for yeast, breaks down large proteins 3-4. Amylase Rests: Starches  Sugars 5. Mash Out Decreases mash viscosity 1 2 3 4 5

6. Lauter Tun Brewing Kettle Fermentation Tank Storage (Aging) Tank Mash Wort Hops Wort Yeast Beer Spent Grain

7.  Early 1700s – late 1860s ◦ “Homebrewing” was prevalent ◦ Rise of breweries and brewpubs  1860s – 1920 ◦ Rise of “shipping (large) breweries” ◦ Decline of smaller breweries  3,200 breweries in 1870  1,300 breweries in 1915 Original Miller Brewing Company brewery, Milwaukee, 1855

8.  1920 – 1933: Prohibition (alcohol production banned) ◦ Demise of local breweries/brewpubs ◦ Large breweries adapt to other markets (soda, aluminum cans)  1933 – late 1970s: ◦ Large breweries consolidate and dominate market ◦ Approximately 101 breweries in US by 1980  Late 1970s – Present: ◦ 1978: Homebrewing beer legalized ◦ Rise of “microbreweries” and brewpubs Fritz Maytag, Anchor Brewing Co., 1965

9.  The US “Big Three”: ◦ Anheuser-Busch  Owned by Anheuser-Bush InBev ◦ MillerCoors  Joint venture, SABMiller and Molson Coors ◦ Pabst Brewing Co.  “Large breweries” produce > 6 million barrels annually ◦ 6 million barrels = 2 billion bottles ◦ ~ 22 Large breweries in US

10.  Production ◦ Typically malt grains in-house ◦ Higher % corn/rice in beer  Lightens flavor/color  Stabilizes flavors in beer  Lower cost/higher availability than barley  Economy of scale ◦ Mass production of a few styles – “American-style Lagers” ◦ Control US market: ~94% of sales volume in 2011

11.  “Craft” brands - examples ◦ Blue Moon, ShockTop, Goose Island, Leinenkugels, Batch 19 ◦ Owned by Large Breweries, but produce different styles  Catering to the “craft beer consumer”  Provide corporate backing to former craft/microbreweries

12.  “Microbreweries” – produce < 15,000 bbls annually ◦ More than 75% of beer sold offsite ◦ ~ 922 microbreweries in the US  Production: ◦ Typically purchase malted grains ◦ Use variety of ingredients, variety of styles  Higher % malted barley (or other grains)  Higher hop content  Different spices/flavors

13.  Economics: ◦ Produce wider variety of styles, but at a higher cost ◦ Distribution depends on state laws and economics  Wisconsin Microbrewery Examples (~28 total) ◦ Ale Asylum ◦ Lake Louie Brewing Co. ◦ Milwaukee Brewing Co. ◦ Sprecher Brewing Co.

14.  “Regional Craft” Breweries ◦ Produce 15,000 – 6 million bbls/year ◦ Examples:  New Glarus Brewing Co  Sierra Nevada Brewing Co  New Belgium Brewing Co  Brewpubs: minimum 25% of beer sold in-house ◦ ~ 30 in Wisconsin, 1,100 nationally ◦ Madison examples: Great Dane, Vintage, Granite City

15.  Brewing basics are similar across breweries  Microbreweries: wide variety of styles ◦ Typically higher amounts of malt and hops ◦ Local/regional distribution  Large breweries: less variety of styles, but cheaper beer ◦ Use more corn/rice to cut cost and “lighten” beer ◦ Own “Craft” brands to increase style variety and profit

16.  Drink what you like!  I recommend craft beer ◦ More flavors/styles to choose from ◦ Higher quality ingredients ◦ Support local/regional business  Check out brewpubs and do brewery tours!