The full text of this article
New development opportunities for the craft brewing segment: the case study of a micro-malthouse
by Vincenzo Alfeo; Aldo Todaro; Antonio Asciuto; Valeria Borsellino; Emanuele Schimmenti
International Journal of Globalisation and Small Business (IJGSB), Vol. 9, No. 2/3, 2017
Abstract: In Italy in the past few years, the number of small breweries penetrating the craft beer sector has grown exponentially. Craft producers intend to give a strong added value and a local character to their production in different ways. One of these is the use of malt derived from small batches of local cereals and pseudo cereals. The aim of this study is the assessment of investment profitability, through a cost-benefit analysis (CBA), for a compact and a modular micro-malting plant in Sicily (Southern Italy). The CBA for a micro-malthouse was carried out considering both installation and operating costs. Net present value (NPV), discounted benefit-cost ratio (DBCR) and internal rate of return (IRR) highlight the feasibility of an investment in a compact 2-tonnes micro-malthouse. Sensitivity analysis shows positive results of the above financial indices up to a 15% increase in the raw material costs, while with a 10% reduction of malt selling price, the same indices start being negative.
Online publication date: Tue, 19-Dec-2017
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