Modernization of production plant and production processes implemented in Zagrebačka pivovara in period from 1995 till 2012 Borislav Šćulac Zagrebačka pivovara 1

Introduction History of Zagrebačka pivovara Modernization of production equipment in period Implementation of modern brewing processes in period Results of equipment and brewing processes modernization Development so far and plans for future

History of Zagrebačka pivovara Founded in 1892 at current location –Small brewers manufacturers couldn’t cover increasing demand –Initiators for new brewery were count Gustav Pongratz i baron Petar Dragutin Turković –Production buildings were designed by architect Kun Weidmanna –Initial capacity was hl/year Opening celebration was 12 July 1893 –Beer garden had electric lights, first in town and 15 years before than city of Zagreb –Ozujsko brand launch, today the most popular beer in Croatia A large modernization of the brewery happened during sixties and seventies following the growth of beer sales Privatization in 1994 –Interberew became major shareholder –Today is part of MolsonCoors Zagrebačka pivovara is the biggest Croatian brewery

Modernization of production equipment in period Privatization in 1994 was followed by huge capital investment scope –Replacement of obsolete brewing & packaging equipment –Production capacity increase –Key performance Indicators increase  efficiency increase –Quality Assurance of processes and final products –Assurance of environment protection –Assurance of safety on work Total Capital Expenditure in 17 years was €

The most important capital investments –Brewhouse renewal: Meura Mash filter, hammer mill, wort decantation tank, wort cooler, CIP and other related equipment –New fermentation building with 17 cylindrical conical tanks, yeast propagation and yeast storage tanks, CIP and other related equipment –New beer filtration line with candle filter, pVpp, carbonation and blending unit –Automation, Energy and Fluids recoveries –Renewal and reconstruction of glass filling lines –Renewal and reconstruction of KEG line with capacity increase –Installation of PET filling line –Installation of can filling line –Decreasing of noise emission : new facades and noise protection walls –Renewal and reconstruction of cooling plant with increase of safety –CO2 purification plant –Complete replacement of sewer system with separation of technical and rain water including new buffer basin for waste water Wide modernization of production equipment has been done Modernization of production equipment in period

Implementation of modern brewing processes in period High Gravity Brewing –High Gravity wort in brewhouse - 15 Plato to 20 Plato –Adjustment on final gravity after beer filtration phase Wort fermentation till diacetyl reduction –HG wort fermentation  3 do 4 Plato/day –Diacetyl reduction on fermentation temperature –Green beer cooling starts when diacetyl reduction is finished Cold maturation –Colloidal stability assurance by maturation on -1 ºC Implementation of modern brewing processes resulted with better control of brewing processes and with standard quality of finish goods

Results of equipment and brewing processes modernization Increase of production capacity enabled increase of sales volume –Capacity increase from hl/y in to hl/y today Technical productivity increase  lower industrial cost

Lower Energy & Fluid consumption  lower industrial cost Results of equipment and brewing processes modernization

Development so far and plans for future Resources management –Wide modernization of production equipment done in period –Strengthened Sales and Marketing teams –Brands development – leading brands in core, premium and value segments –Management System developed for brewing industry Focus on innovations –First on Croatian beer market with branded crates made of polyethylene –First on Croatian beer market with complete replacement of old bottles –First on Croatian beer market with PET packaging –Complete beer portfolio – 11 beer and beer-mixes brands Market share increase from 29% in 1995 to 43% in 2013 Plans for future –Continuation of production equipment modernization related with technology development –Continuation of innovations both liquid and packaging –Already in 2013 capital expenditure of € related with new bottles launch

Conclusion Zagrebačka pivovara today has modern and efficient production –Wide modernization of production equipment done in period Total Capital Expenditure of € –Implemented modern brewing processes –Realized capacity increase and efficient production –Realized sustainable development with care about environment Realized leading position on Croatian beer market –Zagrebačka pivovara is market leader with 43% market share –Continuous focus on innovations

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