Post on 28-Oct-2014
CHAPTER 1
INTRODUCTION
Process costing is a form of operations costing which is used where standardized homogeneous
goods are produced. This costing method is used in industries like chemicals, textiles, steel,
rubber, sugar, shoes, petrol etc. Process costing is also used in the assembly type of industries
also. It is assumed in process costing that the average cost presents the cost per unit. Cost of
production during a particular period is divided by the number of units produced during that
period to arrive at the cost per unit.
MEANING:
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RAW MATERAIL INTRODUCED
CONVERTION OF RAW MATERIAL INTO WIP
COVERSION OF WIP INTO FINISHED GOODS
SALE OF FINISHED GOODS
Process costing is a method of costing under which all costs are accumulated for each stage of
production or process, and the cost per unit of product is ascertained at each stage of production
by dividing the cost of each process by the normal output of that process.
Definition:
CIMA London defines process costing as “that form of operation costing which applies where
standardize goods are produced”
Features of Process Costing:
(a) The production is continuous
(b) The product is homogeneous
(c) The process is standardized
(d) Output of one process become raw material of another process
(e) The output of the last process is transferred to finished stock
(f) Costs are collected process-wise
(g) Both direct and indirect costs are accumulated in each process
(h) If there is a stock of semi-finished goods, it is expressed in terms of equivalent units
(i) The total cost of each process is divided by the normal output of that process to find out
cost per unit of that process.
Advantages of process costing:
1. Costs are be computed periodically at the end of a particular period
2. It is simple and involves less clerical work that job costing
3. It is easy to allocate the expenses to processes in order to have accurate costs.
4. Use of standard costing systems in very effective in process costing situations.
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5. Process costing helps in preparation of tender, quotations
6. Since cost data is available for each process, operation and department, good managerial
control is possible.
Limitations:
1. Cost obtained at each process is only historical cost and are not very useful for effective
control.
2. Process costing is based on average cost method, which is not that suitable for performance
analysis, evaluation and managerial control.
3. Work-in-progress is generally done on estimated basis which leads to inaccuracy in total cost
calculations.
4. The computation of average cost is more difficult in those cases where more than one type of
products is manufactured and a division of the cost element is necessary.
5. Where different products arise in the same process and common costs are prorated to various
costs units. Such individual products costs may be taken as only approximation and hence not
reliable.
EXECUTIVE SUMMARY
The report is an earnest endeavor made to understand the present market scenario in beer
captured by the U B GROUP and the other competitor brands viz., Foster’s, Carlsberg &
Heineken . The researchers were required to see the coverage by U B GROUP Products Pvt.
Ltd., and bring out the potential and loyal retailers so that the company could maintain the
market leadership in the existing business scenario in the beer and the liquor. During the course
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of study the researchers visited around unorganized retail stores and organized retail stores and
analyzed all major brands of beer available as well as studied the brands, which are most
preferred among the retailers. The study encompasses the penetration of the existing U B
GROUP products (beer and liquor) and the market potential for the new products like Kingfisher
Blue - Premium Beer, Kingfisher Premium - Mild Beer , Kingfisher Strong - Strong Beer ,
London Pilsner - Premium Beer
Objectives of the Study
To find out U B GROUP Coverage in various areas.
To check the Brand availability of the company products at different stores. To
compare the Brand with its competitive Brands like Foster’s, Carlsberg & Heineken
liquoring terms of coverage, number of brands available.
To analyze that which type of beer are most preferred and demand by the customer.
To analyze the availability of new U B GROUP products launched in the market.
BEER
Beer is the worlds most widely consumed alcoholic beverage; it is the third-most popular drink
overall, after water and tea. It is thought by some to be the oldest fermented beverage. Beer is
produced by the saccharification of starch and fermentation of the resulting sugar. The starch and
saccharification enzymes are often derived from malted cereal grains; most
commonly malted barley and malted wheat. Unmalted maize and rice are widely used adjuncts to
lighten the flavour because of their lower cost. The preparation of beer is called brewing. Most
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beer is flavoured with hops, which add bitterness and act as a natural preservative, though other
flavourings such as herbs or fruit may occasionally be included.
UNITED BREWERIES GROUP OR UB GROUP
United Breweries Group or UB Group is an Indian conglomerate company based in Bangalore,
India. The company has annual sales of over US$4 billion and a market capitalization of
approximately US$12 billion. Its core business includes beverages, aviation, electrical and
chemicals. The company markets beer under the Kingfisher brand and has also
launched Kingfisher Airlines, an airline service in India, with international flights operating
recently. United Breweries is India's largest producer of beer with a market share of around 48%
by volume.
The company chairman is Vijay Mallya who had been a member of the Indian Parliament.
United Breweries now has greater than a 40% share of the Indian brewing market with 79
distilleries and bottling units across the world. Recently UB financed a takeover of the spirits
business of the rival Shaw-Wallace company giving it a majority share of India's spirits business.
The group owns the Mendocino Brewing Company in the United States.
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Chapter 2
COMPANY PROFILE
UBL has an association with brewing dating back over nine decades, starting with 5 breweries in
South India in 1915. From bullock cart-loaded barrels or 'hogsheads' of frothing ale, the beer
business has gone on to become the undisputed 'king' in the Indian beer market. UBL today
boasts an impressive spread of own and contract manufacturing facilities throughout the country.
Here, innovative, creative and aggressive marketing is complemented by a strong distribution
network.
Quality and hygiene are the key elements of the United Breweries' manufacturing philosophy. To
this end, the Central Scientific Laboratory (CSL), headquartered at Bangalore sets standards for
all its breweries. Quality Management Systems laid out along the lines of ISO 9000 are strictly
adhered to, controlling quality at every stage of production, from raw materials to the end
product. Also, besides controlling the production process, the CSL analyses the Company's beer
taken off market shelves all over the country, the competition's beers and beers from across the
world. These beers are tested as per the standards laid down by the European Brewery
Convention on 40 different parameters. By these standards, United Breweries' beers don't just
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equal, but even surpass, several Dutch and American beers.
Its flagship brand 'Kingfisher', has achieved international recognition consistently, and has won
many awards in International Beer Festivals. Kingfisher Premium Lager beer is currently
available in 52 countries and leads the way amongst Indian beers in the International market. It
has been ranked amongst the top 10 fastest growing brands in the UK. At the time of his father's
death, Mallya was unanimously elected Chairman of United Breweries. As part of his
modernisation bid, he consolidated the various companies under one umbrella group called the
"UB Group", spun off non-core and loss-making businesses and focused on the core business
of beverage alcohol. Kingfisher beer controls more than 50 per cent market share of India's beer
market. The beer is available in 52 countries outside India and leads the way among Indian beers
in the international market. United Spirits Ltd, the flagship of the UB Group, has achieved the
historic milestone of selling 114 million cases, becoming the largest spirits company in the world
by volume.
Kingfisher Airlines
Kingfisher Airlines, established in 2003, has been unable to pay salaries to its employees for the
past several months and is on the verge of going bankrupt. Now the airlines have officially been
asked to vacate premises and received eviction notices for defaulting on rent payments on a
Mumbai property since November 2011.
Mallya is the Chairman of public companies both in India as well as in the USA. He has been the
Chairman of Aventis Pharma India (previously Hoechst) as well as the Chairman of Bayer Crop
Science in India for over 20 years, in addition to being the Chairman of several other
corporations.
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Sports
Mallya personally and the UB Group as a whole have vast sporting interests internationally as
well as in India. He is the first Indian ever to own a Formula One Team. He is the Team
Principal and co-owner of Sahara Force India Formula 1 which is also India’s first-ever Formula
One Team and represents India's first, truly global sports foray. Mallya has been an avid motor
racing enthusiast since he was a teenager. He has taken part in several Track Racing Events in
India in the 1970s and 80s.Winner of the Sholavaram Grand Prix 1980/81 and Calcutta Grand
Prix in 1979.Has also participated in several Classic Rallies in Europe. He is a member of the
World Motor sports Council of the FIA and chairman of the Federation of Motor Sports Council
of India.
Politics
Mallya was elected to the RajyaSabha – Upper House of India's Federal parliament in both 2002
and 2010 as an independent candidate from his home state of Karnataka.
Auction purchase
Mallya has bought some items at auctions that have substantial value in the history of India. In
2004, he bought the sword of Tipu Sultan at an auction in London, and brought it back to
India. In March 2009, Mallya bought five personal belongings of Mahatma Gandhi (his iconic
eyeglasses, a pocket watch, leather sandals he had made by hand, and a plate and bowl from
which he had eaten his last meal) for US$1.8 million in a New York auction that had caused an
uproar in India; the government of India had tried and failed to prevent the sale.
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Awards
Mallya has received several professional awards both in India and overseas. He was conferred an
honorary degree of Doctorate of Philosophy in Business Administration, by the Southern
California University for Professional Studies of Santa Ana, California (a correspondence
school since renamed to California Southern University, and not to be confused with
the University of Southern California or the University of California, Irvine) in 1997. In 2010 he
was awarded the Entrepreneur of the Year award at The Asian Awards.
He has also been nominated as a "Global Leader for Tomorrow" by the World Economic
Forum. He has also received France's highest civilian award – the Legion of Honour.
ALLIANCE WITH HEINEKEN N.V.
Heineken Group (Heineken), holds 37.5% equity shares in United Breweries Ltd. The alliance
will offer consumers the best portfolio of national and international brands in India, including
Kingfisher, the number one Indian brand, and Heineken, the largest global beer brand.
UBL's outstanding skills as India's leading brewer and Heineken's global best practices will
provide further strength to the business.
The group Mission Statement embodies these objectives:
To be the recognized leader in our target markets.
To be the preferred employer wherever we operate.
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To recognize the value of our human assets.
To be the partner of choice for customers, suppliers, and other creators of innovative concepts.
Sales of United Spirits Ltd
Products are expected to exceed 60 million cases during the fiscal year 2005–06, making the
Group the third-largest manufacturer of spirits products in the world, only after Diageo PLC
and Pernod Ricard. In addition, USL is one of only three in the world to own seven millionaire
brands and at least five brands rated by Drinks International, UK, to be amongst the ten fastest
growing brands in the world in their respective categories. The market share of the Spirits
Division in India is currently 60% and exports to the Middle East, Africa and Asian countries are
growing rapidly.
The UB Group's brewing entity – called United Breweries Limited (UBL) - has also assumed
undisputed market leadership with a national market share in excess of 50%. Through a process
of aggressive acquisition and market penetration, The UB Group today controls 60% of the total
manufacturing capacity for beer in India. The flagship brand, Kingfisher, is now sold in over 52
countries worldwide, having received many accolades for its quality.
With plans to become a global player, United Spirits Ltd. (USL), the flagship of the UB group,
purchased the Scottish distiller Whyte and Mackay in May 2007 for £595 million
(Rs.4,800crore). This would bring the brands of W&M like The Dalmore, Isle of Jura, Glayva,
Fettercairn, Vladivar Vodka, and Whyte & Mackay Scotch under its portfolio.
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The UB group is also into manufacture of fertilizers. The group company Mangalore Chemicals
and Fertilizers (MCF) has a factory at Panambur in Dakshina Kannada district of Karnataka.
UB Engineering Limited is the group's engineering business arm. It undertakes EPC Projects,
Infrastructure, on-site fabrication of structures, installation, testing and Commissioning of
Electrical and Mechanical Equipments, Piping etc. for large industrial projects such as Power,
Refineries, Steel, Cement, Fertilizer, Petrochemical and Desalination Projects. The company was
initially established as Western India Erectors in 1963 and came under the UB Group in 1988.
The group entrance to the IT sector had also been marked by the formation of UBICS, Inc. The
company provides IT consulting, Bodyshopping services and professional IT products to
business companies.
In August 1999, the group made a first-of-its-kind media alliance for the promotion of NDTV
Good Times, a lifestyle television channel run by NDTV.
United Spirits Limited has 144 brands under its umbrella, including White Mischief vodka, the
market leading brand in India.
Businesses
Fertilizer
Engineering
Beverage Alcohol
Aviation
Formula 1 - Force India
Cricket Team - Royal Challengers Bangalore
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Beer
Kingfisher Blue - Premium Beer
Kingfisher Strong - Strong Beer
Kingfisher Premium - Mild Beer
Kingfisher Ultra
Kingfisher Red - Strong Beer
London Pilsner - Premium Beer
United Spirits
Whisky
Scotch whisky
Black Dog Reserve Scotch Whisky (18 years old)
Black Dog Deluxe Scotch Whisky (12 years old)
Black Dog Centenary Scotch Whisky (8 years old)
Dalmore
Whyte & Mackay
JURA Single Malt
Indian whisky
Antiquity Rare
Antiquity Blue
Bagpiper Whisky
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Bagpiper Gold
Director’s Special
Gold Riband
Haywards
Kannai Nelson
McDowell’s Green Label
McDowell's No.1
McDowell's No.1 Platinum
Old Tavern
Royal Challenge
Signature
Signature Premier
Brandy
Honey Bee
John Exshaw
Mr. Shah Brandy
Liquor
Glavya
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Gin
Blue Ribbon
Vodka
Romanov
White Mischief
Pinky
Vladivar vodka
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Chapter 3
PROCESS OF MAKING BEER
Raw material required for making beer
The basic ingredients of beer are water; a starch source, such as malted barley, able to be
saccharified (converted to sugars) then fermented (converted into alcohol and carbon dioxide);
a brewer's yeast to produce the fermentation; and a flavouring such as hops. A mixture of starch
sources may be used, with a secondary starch source, such as maize (corn), rice or sugar, often
being termed an adjunct, especially when used as a lower-cost substitute for malted barley. Less
widely used starch sources include millet, sorghum and cassava root in Africa, and potato in
Brazil, and agave in Mexico, among others. The amount of each starch source in a beer recipe is
collectively called the grain bill.
Water
Beer is composed mostly of water. Regions have water with different mineral components; as a
result, different regions were originally better suited to making certain types of beer, thus giving
them a regional character. For example, Dublin has hard water well-suited to making stout, such
as Guinness; while Plzeň has soft water well-suited to making pale lager, such as Pilsner
Urquell. The waters of Burton in England contain gypsum, which benefits making pale ale to
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such a degree that brewers of pale ales will add gypsum to the local water in a process known
as Burtonisation.
Starch source: Malt and Mash ingredients
The starch source in a beer provides the fermentable material and is a key determinant of the
strength and flavour of the beer. The most common starch source used in beer is malted grain.
Grain is malted by soaking it in water, allowing it to begin germination, and then drying the
partially germinated grain in a kiln. Malting grain produces enzymes that convert starches in the
grain into fermentable sugars.Different roasting times and temperatures are used to produce
different colours of malt from the same grain. Darker malts will produce darker beers.
Nearly all beer includes barley malt as the majority of the starch. This is because its fibrous hull
remains attached to the grain during threshing. After malting, barley is milled, which finally
removes the hull, breaking it into large pieces. These pieces remain with the grain during
the mash, and act as a filter bed during lautering, when sweet wort is separated from insoluble
grain material. Other malted and unmalted grains (including wheat, rice, oats, and rye, and less
frequently, corn and sorghum) may be used. In recent years, a few brewers have
produced gluten-free beer, made with sorghum with no barley malt, for those who cannot
consume gluten-containing grains like wheat, barley, and rye.
Hops
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Flavouring beer is the sole major commercial use of hops the flower of the hop vine is used as a
flavouring and preservative agent in nearly all beer made today. The flowers themselves are
often called "hops".
The first historical mention of the use of hops in beer was from 822 AD in monastery rules
written by Adalhard the Elder, also known as Adalard of Corbie, though the date normally given
for widespread cultivation of hops for use in beer is the thirteenth century. Before the thirteenth
century, and until the sixteenth century, during which hops took over as the dominant flavouring,
beer was flavoured with other plants; for instance, Glechoma hederacea. Combinations of
various aromatic herbs, berries, and even ingredients like wormwood would be combined into a
mixture known as gruit and used as hops are now used. Some beers today, such as Fraoch' by the
Scottish Heather Ales company and Cervoise Lancelot by the French Brasserie-Lancelot
company, use plants other than hops for flavouring.
Hops contain several characteristics that brewers desire in beer. Hops contribute a bitterness that
balances the sweetness of the malt; the bitterness of beers is measured on the International
Bitterness Units scale. Hops contribute floral, citrus, and herbal aromas and flavours to beer.
Hops have an antibiotic effect that favours the activity of brewer's yeast over less desirable
microorganisms and aids in "head retention”, the length of time that a foamy head created by
carbonation will last. The acidity of hops is a preservative.
Yeast
Brewer's yeast, Saccharomyces cerevisiae, and Saccharomyces uvarum
Yeast is the microorganism that is responsible for fermentation in beer. Yeast metabolises the
sugars extracted from grains, which produces alcohol and carbon dioxide, and thereby
turns wort into beer. In addition to fermenting the beer, yeast influences the character and
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flavour. The dominant types of yeast used to make beer are the top-fermenting Saccharomyces
cerevisiae and bottom-fermentingSaccharomyces uvarum. Brettanomyces ferments lambics,
and Torulaspora delbrueckii ferments Bavarian weissbier. Before the role of yeast in
fermentation was understood, fermentation involved wild or airborne yeasts. A few styles such
as lambics rely on this method today, but most modern fermentation adds pure yeast cultures.
Clarifying agent
Some brewers add one or more clarifying agents to beer, which typically precipitate (collect as a
solid) out of the beer along with protein solids and are found only in trace amounts in the
finished product. This process makes the beer appear bright and clean, rather than the cloudy
appearance of ethnic and older styles of beer such as wheat beers.
PROCEES OF MAKING BEER
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There are several steps in the brewing process, which may include malting, mashing,
lautering, boiling, fermenting, conditioning, filtering, andpackaging.
Malting is the process where barley grain is made ready for brewing. Malting is broken down
into three steps in order to help to release the starches in the barley. First, during steeping, the
grain is added to a vat with water and allowed to soak for approximately 40
hours. During germination, the grain is spread out on the floor of the germination room for
around 5 days. The final part of malting is kilning. Here, the malt goes through a very high
temperature drying in a kiln. The temperature change is gradual so as not to disturb or damage
the enzymes in the grain. When kilning is complete, the grains are now termed malt, and they
will be milled or crushed to break apart the kernels and expose the cotyledon, which contains the
majority of the carbohydrates and sugars; this makes it easier to extract the sugars during
mashing.
Mashing converts the starches released during the malting stage, into sugars that can be
fermented. The milled grain is mixed with hot water in a large vessel known as a mash tun. In
this vessel, the grain and water are mixed together to create a cereal mash. During the mash,
naturally occurring enzymes present in the malt convert the starches (long chain carbohydrates)
in the grain into smaller molecules or simple sugars (mono-, di-, and tri-saccharides). This
"conversion" is called saccharification. The result of the mashing process is a sugar rich liquid
or "wort" (pronounced wert), which is then strained through the bottom of the mash tun in a
process known as lautering. Prior to lautering, the mash temperature may be raised to about 75
°C (165–170 °F) (known as a mashout) to deactivate enzymes. Additional water may be
sprinkled on the grains to extract additional sugars (a process known as sparging).
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The wort is moved into a large tank known as a "copper" or kettle where it is boiled
with hops and sometimes other ingredients such as herbs or sugars. This stage is where many
chemical and technical reactions take place, and where important decisions about the flavour,
colour, and aroma of the beer are made. The boiling process serves to terminate enzymatic
processes, precipitate proteins, isomerize hop resins, and concentrate and sterilize the wort. Hops
add flavour, aroma and bitterness to the beer. At the end of the boil, the hopped wort settles to
clarify in a vessel called a "whirlpool", where the more solid particles in the wort are separated
out.
After the whirlpool, the wort then begins the process of cooling. This is when the wort is
transferred rapidly from the whirlpool or brew kettle to a heat exchanger to be cooled. The heat
exchanger consists of tubing inside a tub of cold water. It is very important to quickly cool the
wort to a level where yeast can be added safely as yeast is unable to grow in high
temperatures. After the wort goes through the heat exchanger, the cooled wort goes into a
fermentation tank. A type of yeast is selected and added, or "pitched", to the fermentation
tank. When the yeast is added to the wort, the fermenting process begins, where the sugars turn
into alcohol, carbon dioxide and other components. When the fermentation is complete the
brewer may rack the beer into a new tank, called a conditioning tank. Conditioning of the beer is
the process in which the beer ages, the flavour becomes smoother, and flavours that are
unwanted dissipate. After conditioning for a week to several months, the beer may
be filtered and force carbonated for bottling, or fined in the cask.
MASHING
Mashing is the process of combining a mix of milled grain
(typically malted barley with supplementary grains such as corn, sorghum, rye or wheat), known
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as the "grain bill", and water, known as "liquor", and heating this mixture in a vessel called a
"mash tun". Mashing allows the enzymes in the malt to break down the starch in the grain into
sugars, typically maltose to create a malty liquid called wort. There are two main methods
– infusion mashing, in which the grains are heated in one vessel; and decoction mashing, in
which a proportion of the grains are boiled and then returned to the mash, raising the
temperature. Mashing involves pauses at certain temperatures (notably 45 °C, 62 °C and 73 °C),
and takes place in a "mash tun" – an insulated brewing vessel with a false bottom. The end
product of mashing is called a "mash".
Mashing usually takes 1 to 2 hours, and during this time the various temperature rests activate
different enzymes depending upon the type of malt being used, its modification level, and the
intention of the brewer. The activity of these enzymes convert the starches of the grains
to dextrins and then to fermentable sugars such as maltose. A mash rest from 49–55 °C (120–
131 °F) activates various proteases, which break down proteins that might otherwise cause the
beer to be hazy. This rest is generally used only with undermodified (i.e. undermalted) malts
which are decreasingly popular in Germany and the Czech Republic, or non-malted grains such
as corn and rice, which are widely used in North American beers. A mash rest at 60
°C (140 °F) activates β-glucanase, which breaks down gummy β-glucans in the mash, making
the sugars flow out more freely later in the process. In the modern mashing process, commercial
fungal based β-glucanase may be added as a supplement. Finally, a mash rest temperature of 65–
71 °C (149–160 °F) is used to convert the starches in the malt to sugar, which is then usable by
the yeast later in the brewing process. Doing the latter rest at the lower end of the range favors β-
amylaseenzymes, producing more low-order sugars like maltotriose, maltose, and glucose which
are more fermentable by the yeast. This in turn creates a beer lower in body and higher
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in alcohol. A rest closer to the higher end of the range favours α-amylase enzymes, creating more
higher-order sugars and dextrins which are less fermentable by the yeast, so a fuller-bodied beer
with less alcohol is the result. Duration andpH variances also affect the sugar composition of the
resulting wort.
Boilers at the Samuel Adams brewery
Lautering
Lautering is the separation of the wort (the liquid containing the sugar extracted during mashing)
from the grains. This is done either in a mash tun outfitted with a false bottom, in a lauter tun, or
in a mash filter. Most separation processes have two stages: first wort run-off, during which the
extract is separated in an undiluted state from the spent grains, and sparging, in which extract
which remains with the grains is rinsed off with hot water. The lauter tun is a tank with holes in
the bottom small enough to hold back the large bits of grist and hulls. The bed of grist that settles
on it is the actual filter. Some lauter tuns have provision for rotating rakesor knives to cut into
the bed of grist to maintain good flow. The knives can be turned so they push the grain, a feature
used to drive the spent grain out of the vessel. The mash filter is a plate-and-frame filter. The
empty frames contain the mash, including the spent grains, and have a capacity of around one
hectoliter. The plates contain a support structure for the filter cloth. The plates, frames, and filter
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cloths are arranged in a carrier frame like so: frame, cloth, plate, cloth, with plates at each end of
the structure. Newer mash filters have bladders that can press the liquid out of the grains between
spargings. The grain does not act like a filtration medium in a mash filter.
Boiling
Boiling the malt extracts, called wort, ensures its sterility, and thus prevents a lot of infections.
During the boil hops are added, which contribute bitterness, flavour, and aroma compounds to
the beer, and, along with the heat of the boil, causes proteins in the wort to coagulate and
the pH of the wort to fall. Finally, the vapours produced during the boil volatilise off flavours,
including dimethyl sulfide precursors.
The boil must be conducted so that it is even and intense. The boil lasts between 15 and 120
minutes, depending on its intensity, the hop addition schedule, and volume of water the brewer
expects to evaporate.
Boiling equipment
Brew kettles at Coors Brewing Company.
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The simplest boil kettles are direct-fired, with a burner underneath. These can produce a vigorous
and favourable boil, but are also apt to scorch the wort where the flame touches the kettle,
causing caramelisation and making clean up difficult.
Most breweries use a steam-fired kettle, which uses steam jackets in the kettle to boil the wort.
The steam is delivered under pressure by an external boiler.
State-of-the-art breweries today use many interesting boiling methods, all of which achieve a
more intense boiling and a more complete realisation of the goals of boiling.
Many breweries have a boiling unit outside of the kettle, sometimes called a calandria, through
which wort is pumped. The unit is usually a tall, thin cylinder, with many tubes upwards through
it. These tubes provide an enormous surface area on which vapor bubbles can nucleate, and thus
provides for excellent volitisation. The total volume of wort is circulated seven to twelve times
an hour through this external boiler, ensuring that the wort is evenly boiled by the end of the boil.
The wort is then boiled in the kettle at atmospheric pressure, and through careful control the
inlets and outlets on the external boiler, an overpressure can be achieved in the external boiler,
raising the boiling point by a few Celsius degrees. Upon return to the boil kettle, a vigorous
vaporisation occurs. The higher temperature due to increased vaporization can reduce boil times
up to 30%. External boilers were originally designed to improve performance of kettles which
did not provide adequate boiling effect, but have since been adopted by the industry as a sole
means of boiling wort.
Modern brewhouses can also be equipped with internal calandria, which requires no pump. In
essence, it works on the same principle as external units, but relies on convection to move wort
through the boiler. This can prevent overboiling, as a deflector above the boiler reduces foaming,
and also reduces evaporation. In general, internal calandria are difficult to clean.
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Whirlpooling
At the end of the boil, the wort is set into a whirlpool. The so-called tea leaf paradox forces the
denser solids (coagulated proteins, vegetable matter from hops) into a cone in the center of the
whirlpool tank.
In most large breweries, there is a separate tank for whirl pooling. These tanks have a large
diameter to encourage settling, and is flat bottomed or with a slope of 1 or 2° towards the outlet,
a tangential inlet near the bottom of the whirlpool, and an outlet on the bottom near the outer
edge of the whirlpool. A whirlpool should have no internal protrusions that might slow down the
rotation of the liquid. The bottom of the whirlpool is often slightly sloped towards the outlet.
Newer whirlpools often have "Denk rings" suspended in the middle of the whirlpool. These rings
are aligned horizontally and have about 75% of the diameter of the whirlpool. The Deck rings
prevent the formation of secondary eddies in the whirlpool, encouraging the formation of a
cohesive trub cone in the middle of the whirlpool. Smaller breweries often use the brew kettle as
a whirlpool. The trub being the solids that the brewer wants to remove from the wort.
Hopback
A hopback is a sealed chamber that is inserted in between the brewing kettle and counter-
flow wort chiller. Hops are added to the chamber, the hot wort from the kettle is run through it,
and then immediately cooled in the wort chiller before entering the fermentation chamber. It
facilitates maximum retention of volatile hop aroma compounds that would normally be driven
off when the hops contact the hot wort. Because it is a sealed chamber, the volatile hop
compounds are trapped in the hot wort, and then the wort is immediately cooled, which keeps the
volatile compounds in solution.
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In the United Kingdom, it is common practice to use a hopback to clear the green wort (green
wort is wort to which yeast has not yet been added). This device has the same effect as, but
operates in a completely different manner than, a whirlpool. The two devices are often confused
but are in function, quite different. While a whirlpool functions through the use of centrifugal
forces, a hopback uses a layer of fresh hop flowers in a confined space to act as a filter bed to
remove trub. Furthermore, while a whirlpool is useful only for the removal of pelleted hops (as
flowers do not tend to separate as easily), in general hopbacks are used only for the removal of
whole flower hops (as the particles left by pellets tend to make it through the hopback).
Wort cooling
After the whirlpool, the wort must be brought down to fermentation temperatures (20–
26°Celsius) before yeast is added. In modern breweries this is achieved through a plate heat
exchanger. A plate heat exchanger has many ridged plates, which form two separate paths. The
wort is pumped into the heat exchanger, and goes through every other gap between the plates.
The cooling medium, usually water, goes through the other gaps. The ridges in the plates ensure
turbulent flow. A good heat exchanger can drop 95 °C wort to 20 °C while warming the cooling
medium from about 10 °C to 80 °C. The last few plates often use a cooling medium which can
be cooled to below the freezing point, which allows a finer control over the wort-out
temperature, and also enables cooling to around 10 °C. After cooling, oxygen is often dissolved
into the wort to revitalize the yeast and aid its reproduction.
While boiling, it is useful to recover some of the energy used to boil the wort. On its way out of
the brewery, the steam created during the boil is passed over a coil through which unheated
water flows. By adjusting the rate of flow, the output temperature of the water can be controlled.
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This is also often done using a plate heat exchanger. The water is then stored for later use in the
next mash, in equipment cleaning, or wherever necessary.
Another common method of energy recovery takes place during the wort cooling. When cold
water is used to cool the wort in a heat exchanger, the water is significantly warmed. In an
efficient brewery, cold water is passed through the heat exchanger at a rate set to maximize the
water's temperature upon exiting. This now-hot water is then stored in a hot water tank.
FERMENTING
Modern fermentation tanks
Fermentation in brewing is the conversion of carbohydrates to alcohols and carbon dioxide or
organic acids using yeasts, bacteria, or a combination thereof, underanaerobic conditions. A
more restricted definition of fermentation is the chemical conversion of sugars into ethanol. The
science of fermentation is known aszymurgy.
After the wort is cooled and aerated – usually with sterile air – yeast is added to it, and it begins
to ferment. It is during this stage that sugars won from the malt are metabolized
into alcohol and carbon dioxide, and the product can be called beer for the first time.
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Fermentation happens in tanks which come in all sorts of forms, from enormous cylindro-conical
vessels, through open stone vessels, to wooden vats.
Most breweries today use cylindro-conical vessels, or CCVs, which have a conical bottom and a
cylindrical top. The cone's aperture is typically around 60°, an angle that will allow the yeast to
flow towards the cone's apex, but is not so steep as to take up too much vertical space. CCVs can
handle both fermenting and conditioning in the same tank. At the end of fermentation, the yeast
and other solids which have fallen to the cone's apex can be simply flushed out of a port at the
apex.
Open fermentation vessels are also used, often for show in brewpubs, and in Europe in wheat
beer fermentation. These vessels have no tops, which makes harvesting top-fermenting yeasts
very easy. The open tops of the vessels make the risk of infection greater, but with proper
cleaning procedures and careful protocol about who enters fermentation chambers, the risk can
be well controlled.
Fermentation tanks are typically made of stainless steel. If they are simple cylindrical tanks with
beveled ends, they are arranged vertically, as opposed to conditioning tanks which are usually
laid out horizontally. Only a very few breweries still use wooden vats for fermentation as wood
is difficult to keep clean and infection-free and must be repitched more or less yearly.
Fermentation methods
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There are three main fermentation methods, warm, cool and wild or spontaneous. Fermentation
may take place in open or closed vessels. There may be a secondary fermentation which can take
place in the brewery, in the cask or in the bottle.
Brewing yeasts may be classed as "top-cropping" (or "top-fermenting") and "bottom-cropping"
(or "bottom-fermenting"). This distinction was introduced by theDane Emil Christian Hansen.
Top-cropping yeasts are so called because they form a foam at the top of the wort during
fermentation. They can produce higheralcohol concentrations and in higher temperatures,
typically 16 to 24 °C (61 to 75 °F), produce fruitier, sweeter beers. An example of a top-cropping
yeast isSaccharomyces cerevisiae. Bottom-cropping yeasts are typically used to produce cool
fermented, lager-type beers, though they can also ferment at higher temperatures if kept under
34C. These yeasts ferment more sugars, creating a dryer beer, and grow well at low
temperatures. An example of bottom-cropping yeast is Saccharomyces pastorianus, formerly
known as Saccharomyces carlsbergensis.
For both types, yeast is fully distributed through the beer while it is fermenting, and both
equally flocculate (clump together and precipitate to the bottom of the vessel) when fermentation
is finished. By no means do all top-cropping yeasts demonstrate this behaviour, but it features
strongly in many English yeasts that may also exhibit chain forming (the failure of budded cells
to break from the mother cell), which is in the technical sense different from true flocculation.
The most common top-cropping brewer's yeast, Saccharomyces cerevisiae, is the same species as
the common baking yeast. However, baking and brewing yeasts typically belong to different
strains, cultivated to favour different characteristics: Baking yeast strains are more aggressive, in
order to carbonate dough in the shortest amount of time; brewing yeast strains act slower, but
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tend to produce fewer off-flavours and tolerate higher alcohol concentrations (with some strains,
up to 22%).
To ensure purity of strain, a "clean" sample of brewing yeast is sometimes stored, either dried or
refrigerated in a laboratory. After a certain number of fermentation cycles, a full
scale propagation is produced from this laboratory sample. Typically, it is grown up in about
three or four stages using sterile brewing wort and oxygen.
Warm-fermenting
In general, yeasts such as Saccharomyces cerevisiae are fermented at warm temperatures
between 15 and 20 °C (59 and 68 °F), occasionally as high as 24 °C (75 °F), while the yeast used
by Brasserie Dupont for saison ferments even higher at 29 °C (84 °F) to 35 °C (95 °F). They
generally form foam on the surface of the fermenting beer, as during the fermentation process
its hydrophobic surface causes the flocs to adhere to CO2 and rise; because of this, they are often
referred to as "top-cropping" or "top-fermenting" – though this distinction is less clear in modern
brewing with the use of cylindro-conical tanks. Generally, warm-fermented beers are ready to
drink within three weeks after the beginning of fermentation, although some brewers will
condition them for several months.
Cool fermenting
Main article: Lager
Lager is beer that has been cool fermented at around 10 °C (50 °F), compared to typical warm
fermentation temperatures of 18 °C (64 °F). It is then stored for 30 days or longer close to
the freezing point, and during this storage sulphur components developed during fermentation
dissipate.
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Though it is the cool fermenting that defines lager, the main technical difference with lager yeast
is its ability to process raffinose (a trisaccharide composed of the sugars galactose, fructose,
and glucose), which means that all sugars are fermented, resulting in a well attenuated beer;
warm fermenting yeast only cleaves and ferments the fructose portion of raffinose,
leaving melibiose, which it cannot further cleave into two monosaccharides due to its lack of
melibiase, so ale remains sweeter with a lower conversion of sugar into alcohol. Raffinose is a
minor dry component of Carlsberg barley, but once malted is practically nonexistent.
While the nature of yeast was not fully understood until Emil Hansen of the Carlsberg brewery in
Denmark isolated a single yeast cell in the 1800s, brewers in Bavaria had for centuries been
selecting cold-fermenting lager yeasts by storing ("lagern") their beers in cold alpine caves. The
process of natural selection meant that the wild yeasts that were most cold tolerant would be the
ones that would remain actively fermenting in the beer that was stored in the caves. Some of
these Bavarian yeasts were brought back to the Carlsberg brewery around the time that Hansen
did his famous work.
Today, lagers represent the vast majority of beers produced. Examples include Budweiser
Budvar, Birra Moretti, Stella Artois, Red Stripe, and Singha. Some lager-style beers market
themselves as Pilsner, which originated in Pilsen, Czech Republic (Plzeň in Czech). However,
Pilsners are brewed with 100% barley malt and aggressive hop bitterness, flavor, and aroma.
Lager yeast normally ferments at a temperature of approximately 5 °C (40 °Fahrenheit). Lager
yeast can be fermented at a higher temperature normally used for top-fermenting yeast, and this
application is often used in a beer style known as California Common or colloquially as "steam
beer". Saccharomyces pastorianus is used in the brewing of lager.
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Spontaneous fermentation
Lambic
"Wild yeast" redirects here. For the role of wild yeast in winemaking, see Yeast in winemaking.
These beers are brewed primarily around Brussels, Belgium. They are fermented in oak barrels
after being inoculated with wild yeast and bacteria while cooling in a Koelship. Wild yeast and
bacteria ferment the wort in the oak barrels. The beers fermented from yeast and bacteria in the
Brussels area are called Lambic beers. These bacteria add a sour flavour to the beer. Of the many
styles of beer very few use bacteria, most are fermented with yeast alone and bacterial
contamination is avoided. However, with the advent of yeast banks and the National Collection
of Yeast Cultures, brewing these beers – albeit not through spontaneous fermentation – is
possible anywhere. Specific bacteria cultures are also available to reproduce certain styles.
Brettanomyces is a genus of yeast important in brewing lambic, a beer produced not by the
deliberate addition of brewer's yeasts, but by spontaneous fermentation with wild yeasts and
bacteria.
CONDITIONING
After initial or primary fermentation, the beer is now conditioned, matured or aged, in one of
several ways, which can take from 2 to 4 weeks, several months, or several years, depending on
the type of beer. The beer is usually transferred into a second container, so that it is no longer
exposed to the dead yeast and other debris (also known as "trub") that have settled to the bottom
of the primary fermenter. This prevents the formation of unwanted flavours and harmful
compounds such as acetylaldehydes.
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Kräusening
Kräusening is a conditioning method in which fermenting wort is added to the finished beer. The
active yeast will restart fermentation in the finished beer, and so introduce fresh carbon dioxide;
the conditioning tank will be then sealed so that the carbon dioxide is dissolved into the beer
producing a lively "condition" or level of carbonation. The kräusening method may also be used
to condition bottled beer.
Lagering
Lagers are aged at near freezing temperatures for 1–6 months depending on style. This cold
aging serves to reduce sulphur compounds produced by the bottom-fermenting yeast and to
produce a cleaner tasting final product with fewer esters. Unpleasant flavours such as phenolic
compounds become insoluble in the cold beer, and the beer's flavour becomes smoother. During
this time pressure is maintained on the tanks to prevent the beer from going flat. If the
fermentation tanks have cooling jackets on them, as opposed to the whole fermentation cellar
being cooled, conditioning can take place in the same tank as fermentation. Otherwise separate
tanks (in a separate cellar) must be employed. This is where aging occurs.
Secondary fermentation
During secondary fermentation, most of the remaining yeast will settle to the bottom of the
second fermenter, yielding a less hazy product.
Bottle fermentation
Some beers undergo fermentation in the bottle, giving natural carbonation. This may be a second
or third fermentation. They are bottled with a viable yeast population in suspension. If there is no
residual fermentable sugar left, sugar may be added. The resulting fermentation
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generates CO2 that is trapped in the bottle, remaining in solution and providing natural
carbonation.
Cask conditioning
Cask ale or cask-conditioned beer is the term for unfiltered and unpasteurised beer that is
conditioned (including secondary fermentation) and served from a cask without additional
nitrogen or carbon dioxidepressure.
FILTERING
Filtering the beer stabilizes the flavour, and gives beer its polished shine and brilliance. Not all
beer is filtered. When tax determination is required by local laws, it is typically done at this stage
in a calibrated tank.
Filters come in many types. Many use sheets or candles. Others use a fine powder such
as diatomaceous earth, also called kieselguhr. The powder is added to the beer and recirculated
past screens to form a filtration bed.
Filters range from rough filters that remove much of the yeast and any solids (e.g., hops, grain
particles) left in the beer, to filters tight enough to strain colour and body from the beer.
Filtration ratings are divided into rough, fine, and sterile. Rough filtration leaves some cloudiness
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in the beer, but it is noticeably clearer than unfiltered beer. Fine filtration removes almost all
cloudiness. Sterile filtration removes almost all microorganisms.
Sheet (pad) filters
These filters use sheets that allow only particles smaller than a given size to pass through. The
sheets are placed into a filtering frame, sterilized (with boiling water, for example) and then used
to filter the beer. The sheets can be flushed if the filter becomes blocked. The sheets are usually
disposable and are replaced between filtration sessions. Often the sheets contain powdered
filtration media to aid in filtration.
Pre-made filters have two sides’ .One with loose holes, and the other with tight holes. Flow goes
from the side with loose holes to the side with the tight holes, with the intent that large particles
get stuck in the large holes while leaving enough room around the particles and filter medium for
smaller particles to go through and get stuck in tighter holes.
Sheets are sold in nominal ratings, and typically 90% of particles larger than the nominal rating
are caught by the sheet.
Kieselguhr filters
Filters that use a powder medium are considerably more complicated to operate, but can filter
much more beer before regeneration. Common media include diatomaceous earth and perlite.
Packaging
Packaging is putting the beer into the containers in which it will leave the brewery. Typically,
this means putting the beer into bottles, aluminium cans and kegs, but it may include putting the
beer into bulk tanks for high-volume customers. Most beers are cleared of yeast
by filtering when packaged in bottles and cans. However, bottle conditioned beers retain some
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yeast—either by being unfiltered, or by being filtered and then reseeded with fresh yeast. It is
usually recommended that the beer be poured slowly, leaving any yeast sediment at the bottom
of the bottle. However, some drinkers prefer to pour in the yeast; this practice is customary
with wheat beers. Typically, when serving a hefeweizen wheat beer, 90% of the contents are
poured, and the remainder is swirled to suspend the sediment before pouring it into the glass.
Alternatively, the bottle may be inverted prior to opening. Glass bottles are always used for
bottle conditioned beers.
Many beers are sold in cans, though there is considerable variation in the proportion between
different countries. In Sweden in 2001, 63.9% of beer was sold in cans. People either drink from
the can or pour the beer into a glass. Cans protect the beer from light (thereby
preventing "skunked" beer) and have a seal less prone to leaking over time than bottles. Cans
were initially viewed as a technological breakthrough for maintaining the quality of a beer, then
became commonly associated with less expensive, mass-produced beers, even though the quality
of storage in cans is much like bottles. Plastic (PET) bottles are used by some breweries.
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Temperature
The temperature of a beer has an influence on a drinker's experience; warmer temperatures reveal
the range of flavours in a beer but cooler temperatures are more refreshing. Most drinkers
prefer pale lager to be served chilled, a low- or medium-strength pale ale to be served cool, while
a strong barley wine or imperial stout to be served at room temperature.
Beer writer Michael Jackson proposed a five-level scale for serving temperatures: well chilled
(7 °C/45 °F) for "light" beers (pale lagers); chilled (8 °C/46 °F) for Berliner Weisseand other
wheat beers; lightly chilled (9 °C/48 °F) for all dark lagers, altbier and German wheat beers;
cellar temperature (13 °C/55 °F) for regular British ale, stout and mostBelgian specialities; and
room temperature (15.5 °C/59.9 °F) for strong dark ales (especially trappist beer) and barley
wine.
Drinking chilled beer began with the development of artificial refrigeration and by the 1870s,
was spread in those countries that concentrated on brewing pale lager. Chilling beer makes it
more refreshing, though below 15.5 °C (59.9 °F) the chilling starts to reduce taste awareness and
reduces it significantly below 10 °C(50 °F). Beer served unchilled—either cool or at room
temperature, reveal more of their flavours. Cask Marque, a non-profit UK beer organisation, has
set a temperature standard range of 12°-14 °C (53°-57 °F) for cask ales to be served.
Vessels
Beer is consumed out of a variety of vessels, such as a glass, a beer stein, a mug,
a pewter tankard, a beer bottle or a can. The shape of the glass from which beer is consumed can
influence the perception of the beer and can define and accent the character of the
style.Breweries offer branded glassware intended only for their own beers as a marketing
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promotion, as this increases sales. The pouring process has an influence on a beer's presentation.
The rate of flow from the tap or other serving vessel, tilt of the glass, and position of the pour (in
the centre or down the side) into the glass all influence the end result, such as the size and
longevity of the head, lacing (the pattern left by the head as it moves down the glass as the beer
is drunk), and turbulence of the beer and its release ofcarbonation.
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Chapter4
Swot analysis
SWOT analysis (alternately SWOT Matrix) is a strategic planning method used to evaluate
the Strengths, Weaknesses/Limitations, Opportunities, and Threats involved in a project or in
a business venture. It involves specifying the objective of the business venture or project and
identifying the internal and external factors that are favorable and unfavorable to achieve that
objective. The technique is credited to Albert Humphrey, who led a convention at the Stanford
Research Institute (now SRI International) in the 1960s and 1970s using data from Fortune
500 companies.
Setting the objective should be done after the SWOT analysis has been performed. This would
allow achievable goals or objectives to be set for the organization.
Strengths: characteristics of the business, or project team that give it an advantage
over others
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Weaknesses (or Limitations): are characteristics that place the team at a disadvantage
relative to others
Opportunities: external chances to improve performance (e.g. make greater profits) in
the environment
Threats: external elements in the environment that could cause trouble for the
business or project
Identification of SWOTs is essential because subsequent steps in the process of planning for
achievement of the selected objective may be derived from the SWOTs.
First, the decision makers have to determine whether the objective is attainable, given the
SWOTs. If the objective is NOT attainable a different objective must be selected and the
process repeated.
Users of SWOT analysis need to ask and answer questions that generate meaningful
information for each category (strengths, weaknesses, opportunities, and threats) in order to
maximize the benefits of this evaluation and find their competitive advantage.
SWOT ANALYSIS
STRENGTHS
Nascent stage, few players.
Growth rate per annum 30%.
Urban population increasing every year.
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WEAKNESSES
Inconsistent quality of beer.
Poor awareness on beer.
Stringent and regressive government rules with different taxation across various states.
High customs duties for foreign players.
OPPORTUNITIES
large domestic market with increasing disposable income.
Population changing lifestyle accepting new trends.
Export potential to rest of the world.
Growing tourism in India.
THREATS
New players entering market at fast pace.
Foreign players entering with tie-ups with local players.
Better quality.
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FINDINGS / SUGGESTIONS&CONCLUSION
Findings / suggestions
Majority of consumers are in the age group 20-40.
For every2 men that consume beer there are 3 women who consume beer.
Beer is primarily brought by consumers who earn above 4 lakh per annum
Most consumers learn about beer and beer drinking from friends and family, television and
books thus; this could provide an opportunity for beer labels to promote themselves
through such media through unique marketing campaigns.
Consumers most likely would consume beer at least once a week the number going upon
the weekends.
Buying of beer on an average is restricted to only once a month or for an occasion
Consumption per month is two bottles on an average
Consumers believe drinking beer is a healthy drink.
72% of the consumers know the ingredient used in making beer And the rest of the people
consume beer for social needs
People like to consume beer in various locations70%of them prefer to consume at pubs,
restaurants, bars etc. and prefer consuming at home.
On an average consumer spend around 50 0 t o 1 0 0 0 on beer.
Most of the consumers prefer K F Premier i.e. 60%, 33% prefer Heineken and7%K F Ultra.
But all the consumers in the sampling prefer corona but only on special occasion.
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CONCLUSION
I conclude that U B GROUP is the first preference of both the customers and retailers (organized
and unorganized both) because of its price and brand image.
Brand U B GROUP dominates the volume-dominated beer market. Even in today’s time when
multinationals are beefing up their operations and trying to change the dynamics of the market,
U B GROUP numerous positions is unchallenged. Its competitors have roped in superstars like
King Khan, but U B GROUP has only gone from strength to strength, Brand KINGFISHER is
iconic and has evolved over the years. Trust, relevance, affordability are it hallmarks, which have
withstood pressures from the hyper-competitive market place.
The U B GROUP beer brands, such as KINGFISHER enjoy a strong imagery and appeal
amongst consumers across the world, which has resulted into U B GROUP being the “world
third largest selling beer”.
U B GROUP is now lagging in services to retailers because of improper supply and distribution
in some areas and competitors taking advantage of these points
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BIBLIOGRAPHY
Reference books
Steven M. Bragg - cost accounting, 3rd Ed
Costing ,10th Ed
Cost Management - Saravana Prasad
Costing - Saxena & Vashish
WIBLIOGRAPHY
http://www.theubgroup.com/
http://www.indiadiets.com/Health_flash/News/Beer_ better_than_milk.htm3.
http://www.drinks-business-review.com/4.
www.ratebeer.com5.
www.drinkingbeer.net6.
http://indiabrew.blogspot.com/7.
http://www.thehind
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