Economics
of Brewing Industry
Tomáš Maier, Ph.D.
SS 2015/2016
Citation
• „Beer is proof that god loves us and wants
us to be happy“
Benjamin Franklin
Office E 279 (FEM-CULS)
Officce Houres:
Tuesday 14:30 – 15:30 (only in semester)
Phone: 224 382 133
http://pef.czu.cz/~maiert/
Conditions for Credit
• To make and present the seminar work
focused on chosen topic, it will be made
in pairs
• It will be presented form 9th week of the
semester
• Can be maximum 2 absences
• Activ study approach
• The topics of seminar work will be chosen
during the 2nd seminar
Topics of seminar work
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Brewing Industry and Market in Russia
Brewing Industry and Market in USA
Brewing Industry and Market in Japan
Brewing Industry and Market in Germany
Brewing Industry and Market in Belgium
Brewing Industry and Market in China
Brewing Industry and Market in United Kingdom
Brewing Industry and Market in Ireland
…
Requirements for the work I.
• Market concentration and its development in last
10 years (approximately), the most important
companies and their brands
• Ownership structure and its development
• Legislative (law) condition, excise taxes
• Consumers restrictions
• Consumption development
• Production under licence
• Microbrewery segment (craft breweries),
development
Requirements for the work II.
• Foreign trade development of beer, hops
(products from hops) and malt
• Structure of beer production
• Market specifics, technology specifics
• Protected labeling (if some exist)
• …
• The work will be created on the base of all
disponible data
Requirements for the work II.
• Comments of all data
• Own analysis!!!
Terms
• The text will be created like professional
(expert) text
• Approximately 10 pages
• Will be uploaded to moodle in MS WORD
format
• Deadline for uploading is 4/4 2016 at 8:05 am
• After deadline not chance for corrections,
revision etc., the uploated text is final text
• The text will be tested on plagiarism
• Oral presentation will be from the 9th week
Exam
• First part is written
• Second part is oral (in the same day as written part)
• Excellent students can skip written part
• First examination is common and
obligatory for all students
Literature
Swinnen, J.: The Economics of Beer
Olivier, G.: The Oxford Companion to Beer
Daniels, R.: The Brewers Association's
Guide to Starting Your Own Brewery
Czech Ministry of Agriculture: Czech Hops
Links
http://www.brewersofeurope.org/
http://www.economist.com/topics/beer
http://www.camra.org.uk/
http://www.brewersofeurope.org/site/index.p
hp
https://www.brewersassociation.org/
Basic knowledges?
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How to produce malt?
Which component is the most important in hops?
How to produce a beer?
What are the prices of raw materials?
Which beer styles you know?
What are the most important brewing companies in
your contry?
- Leader
- second position
- third position
-…
Topic
Introduction, history, production
process, technology
History I.
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Agriculture
Fermentated drinks from crop and bread
Sumer
Egypt
Roman Empire
Earlly middle ages
Discovering of hops
Middle ages guilds
Historie II.
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Nobility
Purity law
Bottom fermentation
Scientific discoveries
Golden age of Czech brewing industry
Wars
Directive economy (communists)
New technologies
From agriculture to Egypt I.
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The origins of agriculture
Cereals growing
Bread cakes
Fermentated bread
Kaš, bapiru
Hymn to goddess Ninkasi
Epic about Gilgamesh
Malt
Epos about Gilgamesh
Enkidu was a promitive creature, he eated only
grass and drank milk from wild animals. He
wanted to have a fight with demigod Gilgamesh.
Because of Gilgamesh didnt want to fight with so
primitive desperate man, he send to him nice
woman. She had to learn Enkidu to recognize
his strength and weakness. So the woman
taught him seven days and said: „Eat the food,
Enkidu, it is the way one lives. Drink the beer, as
is the custom of the land.“ Enkidu drank seven
jugs and and became expansive and sang with
joy!
From agriculture to Egypt I.
• Babylon
• Beer varieties
• Conquer cities
Chamurapi
• „Who will mix beer with vater, he will be drowned
in a barrel or by the funnel will be filled by water
until we will not be dead.“
• „The innkeeper (she) who will for the beer
accept silver instead barley, she will be
drowned. The same penalty is for the innkeeper
(she) who sells wrong beer.“
• „The inkeepred (she) who tolerates in the inn
political conversation or other conversation with
wrong influence to the state, so she will be
killed.“
• „The priestess who visits inns or even operates
some, she will be burned.“
Egypt
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Re
Osiris
Menket
Tenemit
Rituals
Funerals
Medicine
Indians
• Chica
• Alkoholdehydrogenase
Jewish
• Secha
• Wine
• Hops?
Greece, Roma
• Hippokrates
• Hops
• Chládek: Aristoteles: They who have drunk beer
— fall on their back — for they who get drunk on
other intoxicating liquors fall on all parts of their
body — it is only those who get drunk on beer
who fall on their backs and lie with their faces
upwards.“
• Cervisia
• Caesar: „beer is respectable and poweful drink“.
• Julianus: „who drinks a wine, he smells like
nectar, who drinks a beer, he smels like billy
goat“.
• Sabaiarius
Barbarians
• Korma
• Barrels
• Tacitus: „(Barbarians) lies on the bearskins not
abstemiously overindulge in horrible drink, which
is produced by fermentation from barley or
wheat; this drink is very dofferent form wine…
And this ugly beverage they dring until they are
not totally legless. They drink it from big ox
horns.“
• Kalevala
• Eisbock
• Slavs
Middle Ages I.
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liquida non fragunt lentum
Monasteries
Ora et labora
Homewort - Trappist
Justitia Civitatis: „Who sells bad beer or
gives lower amount, he will be punished“
• Reinheitsgebot
Weihenstephan a Weltenburg
Middle Ages II.
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Monastery of St. George
Břevnov Abbey
Monastery in Ostroh
Foundation act of duke Břetislava I.
Brewing-rights houses or old brewing
privilege houses
• Factor houses
• Brewery in Teplá
• Vladislav II.
Middle Ages III.
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Nobility
St. Wenceslav agreement
Jus educilli
Mile priviledge (perimeter)
1848
1869
Patrons
Taxes and Fees
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Ungelt
Fee from a brew
Tax from cereals
Malt millers
Brew tax
Malting tax
1852
1920
1946
1953
1991
1996
Scientific discoveries
• František Ondřej Poupě
• Josef Groll ( http://wolferstetterbrauerei.de/produkte/ )
• Louis Pasteur
• Karel Josef Napoleon Balling
Scientific discoveries
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Karel Osvald
Emil Christian Hansen
Carl von Linde
Fritz Maytag
Beer face
Victor Cibich
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11. 12. 1856
1884
Railway company
1891 – Velké Březno
Stationmaster, Railway inspector
29. 1 1916
1906 - 30 l/week in Tivoli
Technology
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Only fermentation, not malting
Maltin, fermentation
Brewing, malting, ermentation
Hops
Bottom fermentation
Decoction
Filtration, pasteurisation
Extracts
CKT
HGB
Raw materials
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Water
Malt (surogation)
Hops (granuls, extracts)
Yeasts
Hops
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Reasons
Hops cones
Granuls
Pressed
Extracts
Malt
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Enzymatic processes
Breakdown
Steep - soak
Germination
Klin dry
Grind
Brew house
Brew house
Beer making
Infusion
Single decoction
Double decoction
Triple decoction
Cooling
Fermentation
Fermentation
• Saccharomyces cerevisiae subsp. uvarum
(carlsbergensis)
• Saccharomyces cerevisiae subsp.
cerevisiae
Lagering
Filtration
• Kieselguhr
Modern methods
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Brew house
Cylindroconic tanks (CKT)
HGB High Gravity Brewing
High pressure boiling (brewing)
Surogation
Extracts