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Economics of Brewing Industry

Economics of Brewing Industry. Tomáš Maier, Ph.D. WS 2019/2020. Citation. „ Beer is proof that god loves us and wants us to be happy “ Benjamin Franklin. Office E 357 (FEM-CULS) Officce Houres: Friday 12:00 – 13:00 (only in semester) Phone: 224 382 133 https://home.czu.cz/maiert/.

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Economics of Brewing Industry

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  1. Economics of Brewing Industry Tomáš Maier, Ph.D. WS 2019/2020

  2. Citation • „Beer is proof that god loves us and wants us to be happy“ Benjamin Franklin

  3. Office E 357 (FEM-CULS) Officce Houres: Friday 12:00 – 13:00 (only in semester) Phone: 224 382 133 https://home.czu.cz/maiert/

  4. Important dates!!! • 25th October: Festival of Monastery Breweries http://augustiniani.cz/sites/default/files/documents/final_plakatpivobrani_297_420.pdf • 29th – 30th November: Prague Festival of Beer https://www.pbfest.cz/

  5. Beer Bars in Prague • Zlý Časy http://zlycasy.eu/index.php?page=2 • Pivní Jistota https://www.facebook.com/pivni.jistota/ • Breweries in Prague https://pivni.info/pivovary/praha/

  6. Beer places - culture • Hops Museum Saaz http://www.chmelarskemuzeum.cz/en/museum.htm • Beer Museum Pilsen https://www.prazdrojvisit.cz/en/tours/brewery-museum-tour/ • Museum U Fleků https://en.ufleku.cz/program/museum/

  7. Czech Brewing Industry 2018

  8. Temperature

  9. Beer news • The cheapest European countries for a pint

  10. Conditions for Credit – for English students • To make and present the seminar work focused on chosen topic • It will be presented form 7th week of the semester • Can be maximum 2 absences • Activ study approach • The topics of seminar work will be chosen during the 3nd seminar • The seminar work will be created in pairs, it means two students will create one seminar work

  11. Topics of seminar work • 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 • …

  12. Requirements for the work • 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

  13. Requirements for the work • Production of malt and hops (hops products) • 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

  14. Requirements for the work • Comments of all data • Own analysis!!!

  15. Terms • The text will be created like professional (expert) text • Approximately 10 pages • Will be uploaded to Moodle in MS WORD format • Deadline: 13th of November 2019!!! at 18:00 (6pm) • 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 7th week (14th of November), this week all students must be prepared for oral presentation!!!

  16. 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

  17. 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 Garavaglia, CH., Swinnen, J.: Economic Perspectives of Craft Beer

  18. Literature Kratochvíle, A.: Pivovarství v proměnách 20. století Basařová, G. a kol.: České pivo Basařová, G. a kol.: Pivovarství

  19. Literatura Pivovarský kalendář Ječmenářská ročenka Chmelařská ročenka Panorama potravinářského průmyslu Sitační a výhledová zpráva Chmel a pivo Český chmel Pivo, Bier & Ale

  20. Links http://www.brewersofeurope.org/ http://www.economist.com/topics/beer http://www.camra.org.uk/ https://www.brewersassociation.org/ https://www.independent.co.uk/topic/Beer https://www.theguardian.com/food/beer http://allaboutbeer.com/news/ https://www.thedrinksbusiness.com/tag/beer/

  21. Webs http://www.ceske-pivo.cz/ http://www.beerresearch.cz/ http://www.brewersofeurope.org/ http://www.minipivo.cz/ http://www.lidovky.cz/pivo.aspx

  22. Basic knowledges? • 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 - … • http://www.pividky.cz/

  23. Topic Introduction, history, production process, technology

  24. History I. • Agriculture • Fermentated drinks from crop and bread • Sumer • Egypt • Roman Empire • Earlly middle ages • Discovering of hops • Middle ages guilds

  25. Historie II. • Nobility • Purity law • Bottom fermentation • Scientific discoveries • Golden age of Czech brewing industry • Wars • Directive economy (communists) • New technologies

  26. From agriculture to Egypt I. • The origins of agriculture • Cereals growing • Bread cakes • Fermentated bread • Kaš, bapiru • Hymn to goddess Ninkasi • Epic about Gilgamesh • Malt

  27. 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!

  28. Epos o Gilgamešovi „Enkidu, primitivní bytost, který jedl pouze trávu a pil mléko divokých zvířat, chtěl změřit síly s polobohem Gilgamešem. Protože Gilgameš se nechtěl srovnávat s takovým primitivním troufalcem, poslal mu krásnou ženu, která měla Enkidua naučit rozeznávat svoje přednosti a nedostatky. Tato žena jej učila po dobu sedmi dní slovy: „Jez chléb, Enkidu, neboť ten patří k životu, pij pivo, neboť je to zvyk této země.“ Enkidu vypil sedm džbánků piva a srdce jej zabolelo. Poté se vykoupal a stal se člověkem.

  29. From agriculture to Egypt I. • Babylon • Beer varieties • Conquer cities

  30. Chamurapi • „Who will mix beer with water, 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.“

  31. Chamurapi • „Kdo bude míchat do piva vodu, bude utopen v sudu nebo trychtýřem bude lito do něj tak dlouho pivo, dokud nezemře.“ • „Šenkýřka, která si nechá proplatit čepované pivo stříbrem, místo aby přijala ječmen, bude utopena. Tentýž trest čeká šenkýřku, která prodává špatné pivo.“ • „Šenkýřka, která ve své krčmě trpí politické debaty nebo jiné řeči poškozující stát a neudá tyto lidi vrchnosti, bude usmrcena!“ • „Kněžka, která navštěvuje pivnice, nebo dokonce některou otevře, bude upálena!“

  32. Egypt • Re • Osiris • Menket • Tenemit • Rituals • Funerals • Medicine

  33. Indians • Chica • Alkoholdehydrogenase

  34. Jewish • Secha • Wine • Hops?

  35. 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“.

  36. Řecko, Řím • Hippokrates • Chmel • Chládek: Aristoteles: „…pokud se někdo napije mnoho piva, kácí se směrem dozadu, pokud však pije mnoho vína, kácí se na všechny strany.“ • Cervisia • Caesar: „pivo je vážený a mocný nápoj“. • Julianus: „kdo pije víno, je cítit nektarem, kdo pije pivo, smrdí po kozlu“. • Sabaiarius

  37. 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

  38. Barbaři • Korma • Sudy • Tacitus: „…polehávajíce na medvědích kožešinách nestřídmě holdují strašnému nápoji, vyrobenému kvašením ječmene nebo pšenice, velmi nepodobnému ušlechtilému vínu... a tento ohavný nápoj pijí až do němoty z velkých tuřích rohů“ • Kalevala • Eisbock • Slované

  39. Middle Ages I. • liquida non fragunt lentum • Monasteries • Ora et labora • Homework - Trappist • Justitia Civitatis: „Who sells bad beer or gives lower amount, he will be punished“ • Reinheitsgebot

  40. Weihenstephan a Weltenburg

  41. Middle Ages II. • 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.

  42. Middle Ages III. • Nobility • St. Wenceslav agreement • Jus educilli • Mile priviledge (perimeter) • 1848 • 1869 • Patrons

  43. Taxes and Fees • Ungelt • Fee from a brew • Tax from cereals • Malt millers • Brew tax • Malting tax • 1852 • 1920 • 1946 • 1953 • 1991 • 1996

  44. Scientific discoveries • František Ondřej Poupě • Josef Groll ( http://wolferstetter-brauerei.de/produkte/ ) • Louis Pasteur • Karel Josef Napoleon Balling

  45. Scientific discoveries • Karel Osvald • Emil Christian Hansen • Carl von Linde • Fritz Maytag

  46. Beer face

  47. Victor Cibich • 11. 12. 1856 • 1884 • Railway company • 1891 – Velké Březno • Stationmaster, Railway inspector • 29. 1 1916 • 1906 - 30 l/week in Tivoli

  48. Technology • Only fermentation, not malting • Malting, fermentation • Brewing, malting, fermentation • Hops • Bottom fermentation • Decoction • Filtration, pasteurisation • Extracts • CKT • HGB

  49. Raw materials • Water • Malt (surogation) • Hops (granuls, extracts) • Yeasts

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