Managing contract packaging (when you package on behalf of someone else)

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:warning: Breww can handle contract packaging on behalf of others, with a minor workaround. We have an open feature request (New batch type for packaging only (for contract packaging on behalf of others)) to improve this functionality, so if you use this, please vote for that request. In the meantime, the below process will work well for you.

Contract packaging is a common practice in the brewing industry, and you can use Breww’s contract brewing function to handle it through these steps:

  1. Create the customer you are packaging for as a customer in Breww.

  2. Create the customer’s beer that you are about to receive for packaging, where you can also use the “Quick-create products” functionality to quickly create the products you are packaging for them.

  3. Then create a new batch for that beer, select the Brew type as “Contract brewed in-house”, select the customer you are packaging for, the volume they are sending to be packaged as the planned volume and select the appropriate duty option. You might also want to give the batch a prefix like “CP” to keep the batch numbers separate from your own batches.

  4. Next, start the batch, which will move into your brew kit as if you were brewing it yourself, then immediately transfer it to the vessel you are storing the received beer in. This part doesn’t exactly match what has happened in real life, as it hasn’t actually moved through your brewing system.

  5. Finally, you can package the beer as usual, add it to an invoice for that customer and send it back to them.

  6. If you don’t expect to package this beer for this customer again, you can then obsolete the beer and the related products.

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Please can you remind me/ explain how we make sure that this volume of beer we’ve fictionally created as a batch to get it into vessel ready to pack, is not added onto our production figures for the year?

Is it because of the contract brewed in house option on the batch so the packed items don’t get included with our production totals? Not talking about duty here just the production figures that our duty rate for the next year is based upon.
The brewery that sent the bulk IBC to us will obviously have the full bulk volume to include on their production as I understand when sent off-site for packaging the full amount is included not just the yield volume but how does Breww know not to include it from our packaging if it believes we brewed it onsite?

Thanks

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Hi Claire,

Sure, it is probably best if I explain production volumes in Breww to add some context and then come around to your question.

Production figures in Breww are fundamentally in two categories. HL of pure alcohol produced under your license and HL of pure alcohol produced under another license. The production figures that your duty rate for the next year is based upon is that produced under your license, whether on or off-site.

What is considered as produced under your own license in Breww?

This is where the duty settings on a batch and contract brewer make an impact, and the set-up will vary depending on whether it is produced in-house or off-site.

How to set whose license a batch is produced under for batches that are Contract brewed in-house or Collaboration in-house.

When creating a batch and selecting that it is Contract brewed in-house - Brewed in your own brewery for someone else as a contract brew or Collaboration in-house - Brewed in your own brewery for someone else as a collaboration, you will then see an option to select the Brewery/customer brewing for and under the header Duty a field to select the Duty payment option.

The options for Duty payment options are as follows:

  • We pay the duty at our duty rate
  • We pay the duty at their duty rate
  • We pay the duty at the full duty rate
  • Partner brewery is liable for the duty (brewed under their licence)

Selecting any of the following options will mean the batch is considered produced under your license and, therefore, added to your production figures.

  • We pay the duty at our duty rate
  • We pay the duty at their duty rate
  • We pay the duty at the full duty rate

Selecting that the Partner brewery is liable for the duty will mean the batch is considered as produced under another license and will not be considered in your annual production figures.

How to set whose license a batch is produced under for batches that are Contract brewed by 3rd party or Collaboration at 3rd party.

When creating a batch and selecting that it is Contract brewed by 3rd party - Brewed by someone else for you as a contract brew or Collaboration at 3rd party - Brewed by someone else for you as a collaboration, you will not see an option to select the duty payment option. This is because the duty arrangement for these batches is determined by what is selected when setting up the contract brewer.

When setting up a contract brewer under the header Contract brewer and packager options, you will find the option to set the Contract brewer duty payment option, and the options here mirror those on batches that are Contract brewed in-house or Collaboration in-house, and work in the same way, so selecting any of the We pay the duty options will mean batches contract brewed for you by the contract brewer are under your license and selecting that the Partner brewery is liable for the duty (brewed under their licence) will mean batches they produced under their licence will mean batches contract brewed for you by the contract brewer are under their license and do not contribute towards your annual production figures.

So, back to your question, if you are contract brewing or packaging in-house for another brewery and do not want these batches to contribute to your annual production figures (that produced under your license), then you will want to select Partner brewery is liable for the duty (brewed under their licence) on any batches that are Contract brewed in-house or Collaboration in-house batches.

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