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Operation Process at Lion Breweries

1945 words (8 pages) Business Assignment

26th Oct 2020 Business Assignment Reference this

Tags: Business AssignmentsInternational Business

INTRODUCTION

Alcoholic beverages

Alcoholic beverages are drinks which contain ethanol and ethyl alcohol. Alcoholic drink Fermented from berries, fruits, grains plant, and saps. Alcoholic beverages slow down the brain process. Mail alcoholic drinks are Beer, Wine, Vodka and hard liquor. Hard liquor includes vodka, whiskey, gin and other drinks which contain high alcohol. The percentage of alcohol is different in every drink. For example, beer contains 4-6% alcohol, wine contains 9-16% alcohol and hard liquors contain around 40% alcohol.

Overview of Lion Breweries

It was established in the year 1977 in New Zealand. Lion breweries are New Zealand and Australia’s biggest alcoholic beverages company. In New Zealand, it is the second largest company for wine production and distribution. The main objectives of lion breweries are increasing production, contribution, and marketing of alcoholic drink and non-alcoholic drinks in Australia and New Zealand. It Contributes about $818m to the New Zealand economy and provides employment to approximately 4500 kiwi peoples. Lion has 39 Liquor King retail alcohol stores throughout New Zealand. The mail Product of lion breweries is beer, wine, spirits, and cider. They include New Zealand favorite brands like Steinlager, Corona, Mac’s, Stella Artois and Speight’s.

Overview of United Breweries Limited 

United Breweries was developed in the year 1915 in India. It has 30 production unit in India. It is India’s largest alcoholic beverages company. It provides employment around 5000 people in India. It controls 60% manufacturing capacity of beer production in India. Recently, in India 89,763 outlet sell beer in which one brand from United Breweries. The main product is Beer, wine and spirit. The favorite brand of UB group is Kingfisher, Zingaro, Bullet, and Guru. Kingfisher is the flagship brand for the company. Now Kingfisher is sold in 52 countries in the world.

OPERATION MANAGEMENT PROCESS OF ALCOHOLIC INDUSTRY

Alcohol industry’s operation process includes main 3 steps is as follow: -

  1. Input- input is a raw material used for production. Companies collect raw material from suppliers and put that material for the production process.
  2. Process- The process is to convert raw material into the final product. For the alcohol industry process include fermentation process and packaging of the product.
  3. Output- Output is a step where the product is ready to sell and distribute.

Lion Breweries Operation Process (Input-Process-Output)

The input of lion beer

  1. Raw material- They use ingredients like Cereal grains, Barley, Hops, Water, and Yeast as a raw material. They purchase approximately $96m worth of ingredients from New Zealand farmers.
  2. Packaging material- Lion use Glass bottles, aluminum cans, labels and plastic bottles for packaging the products.
  3. Utilities- In utility lion breweries uses water, electricity, natural gas, biogas, coal, and Liquid Fuels. From that 86% of the energy used from coal and natural gas.

 

Process of lion beer

Step 1- Milling- malted barley is not any type of barley but in this step, barley is malted for the brewing process.

Step 2- Mashing- Malted barley mixed with the hot water. For mashing the malted barley, the mixing bowl is used.

Step 3- Lautering- After the mashing process, the sweet liquid is separated from the mixture. In this step, the wort is divided from the mixture. Wort is sugary water gain from the malted barley. 

Step 4- Boiling- The wort is added on the kettle for boiling. In this step hopes and honey, spices and fruits added.

Step 5- Whirlpool- In this step, the wort and added ingredients are spin and mixed.

Step 6- Cooling- The hot wort temperature reduced at 8 to 15 degree Celsius.

Step 7- Fermentation and conditioning- In the fermentation tank, the wort is mixed with yeast. The yeast converts the sugar into alcohol.

Step 8- filtering- The last step is filtering. In this step, the unwanted particles are filtered from the beer.

Packaging

Lion brewers are producing the bottle. They have not used a bottle from outside. They use 88% bottle from recycling the used bottles. they Collect used bottles from New Zealand waste management. They also use the Love NZ logo for increasing waste awareness.

The output of lion beer (product and distribution)

Product of lion brewers

•        Speight’s

•         Steinlager

•         Corona Mac’s

•        Emerson’s

Distribution of product

They distribute their product to the restaurants, hotel, pubs, and supermarket. They have 39 Liquor King retail alcohol stores throughout New Zealand.

The Operation Process of United Breweries Limited

The input of United Breweries Limited 

  1. Raw material- They used barley, rice flakes, sugar, hops, yeast, and water. They purchase barley from 7000 farmers in India. They imported hops from Germany.
  2. Packaging material- They use Glass bottles, Aluminum cans for packaging.
  3. Utilities- They use Water, Electricity, and coal as utilities. Industrial Development Corporation helps to supply the water.

Process of united beer

Step 1- Mash kettle - In this step the malted barley mixed with water and boiled with 102 deg Celsius

Step 2- Lauter tun- The wort is pumped in to lauter tun. The wort is a mother liquid.

Step 3- Wort Kettle- In this step other ingredients like honey and hopes are added manually.

Step 4- Whirlpool- In this step, the wort is separated from the other particles.

Step 5- Fermentation- The final wort is mixed with yeast and yeast convert the liquid into alcohol.

Step 6- Laggering- After fermentation, the temperature reduced at 0 degrees and the beer are ready for packing.

Packing

They use 3 types of packing media

  1. Keg- keg is like container. This keg is used for beer supplied to pubs, bars, and hotels.
  2. Cans- the cans are imported from Thailand. sometimes they produce own cans.
  3. Bottles- they used second-hand bottles for packaging. They purchased those bottles from local scrap dealers. after that, they recycle these bottles and cleaned with water.

Outputs (product and distribution)

Product

•        Kingfisher

•        Zingaro

•        Bullet

•        Guru

Distribution

They have 90,000 outlets selling beer in India. They also supply the beer in Restaurants, hotel, pubs, and supermarket.

Differences (Which Affect the Company’s Growth)

The following country law regarding alcohol affects both the company’s growth.

Differences

Lion New Zealand

United Breweries Limited (India)

Advertising

      For advertisement of alcohol licensed permission is required in New Zealand.

      The license is provided by the Association of New Zealand Advertisers (ANZA).

      Advertising of alcohol is not permitted in the media

Selling

Selling of alcohol permitted at the Supermarket, shops, and bar in all regions of New Zealand.

      In India different rules for the different state for alcohol selling.

      In some state alcohol distribution is banned.

      Example- Gujarat, Kerala, and Bihar states are banned from alcohol selling.

Alcohol Consumption age

In New Zealand, alcohol consumption and purchase age is 18 year

      India has Different age in every state for alcohol consumption

      For example- Assam has a 21-year, Goa 18 years, Delhi 25 year

      In Bihar, Gujarat consumption of alcohol is illegal.

  • In New Zealand, the alcohol law is the same for every state and because of that the selling and production of lion breweries is higher.
  • In India, alcohol law is different in every state which reduces the selling and production of United Breweries.

Similarities

  • Both company using the same fermentation process and the same ingredients but the way of using steps are a little bit different.
  • Both using the same supply chain which is three-tier supply chain.
  • For making the environment clean both are using the recycled bottle for packing alcohol.
  • Both are the biggest alcohol production in their country.

Conclusion

  • For alcohol industry time to time, raw material supply is an important part because of the beer the fermentation process takes longer time.
  • Countries Law impact most in the growth of the alcohol companies because of the selling, production, consumption, and distribution of the beer is depending on government regulation.
  • The beer the brewing process is longer. It includes a long process that’s why it takes approximately 3 to 4 weeks for converting malt into beer. 
  • Both companies using the same ingredients for beer production and both collect the raw material from the farmers.
  • The lion beer produces own hops, but the United breweries imported hopes from Germany because the Indian weather is not suiting the hops plantation process.

References

  • Alcohol Beverages. (2014). Retrieved from https://www.lionco.com/our-brands/alcohol-beverages-nz/beer-nz
  • Alcohol law. (n.d.). Retrieved from https://www.alcohol.org.nz/management-laws/nz-alcohol-laws/advertising-alcohol
  • Sustainability report. (2011). Retrieved from https://www.lionco.com/content/Lion-Sustainability-Report-2011.pdf
  • UB. (2019). Retrieved from http://unitedbreweries.com/about-us
  • UBL Annual report. (2016). Retrieved from http://unitedbreweries.com/pdf/InvestorReport/UBL_Annual_Report_2015-16.pdf
  •  Augustyn, A. (2019, 05 27). Alcoholic beverages. Retrieved from https://www.britannica.com/topic/alcoholic-beverage

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