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Bottoms Up Draft Beer Dispenser
Jason Nash
Anthony Smith
Isaiah Whitlow
6 December 2013
WRT-382
Prof. Walwema
ii
Abstract
As event ticket prices continue to increase amidst an uncertain economy, sports stadiums need
to find new and innovative ways to improve the game-day experience for each fan. This is
becoming an issue at NFL, NBA, MLB, and NHL games, as well as concerts, bars, and festivals.
This study provides a very realistic solution which can be implemented fairly quickly and
provides multiple benefits. Specifically, this descriptive study will outline the benefits from
installing a new beer dispensing system which holds the current world record for dispensing the
most beers in one minute by one person. This study discusses the Bottoms Up Beer Dispensing
System in detail and outlines the multiple benefits. A profit analysis was also performed in
order to forecast the potential increase in profit per game.
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Table of Contents
Abstract…….................................................................................................................. ii
Introduction ................................................................................................................. 1
Background .................................................................................................................. 1
Figure 1: Draft Beer System ………………………………………………………………… 2
Keg Volume and Dimensions for standard US Kegs …………………………..…… 2
Solution ……………….……………...................................................................................... 3
Figure 2: Four-Nozzle Bottoms Up Dispenser ………………..…………………….. 3
Figure 3: Cups & Magnets ………………………………………………………………….. 4
Figure 4: Revenue & Transaction Times ……………………………………………….. 5
Recommendation ………………...................................................................................... 5
Increased Beer Sales ……................................................................................. 6
Labor Savings …............................................................................................... 6
Better Keg Yield ………..…................................................................................. 6
Better Customer Service …............................................................................... 7
Marketing Tool …………..................................................................................... 7
Savings Summary ………………………..……………..……………………………………….. 7
Profit Analysis ……………………...................................................................................... 8
Conclusion ................................................................................................................... 8
Works Cited.................................................................................................................. 9
1
Introduction
The purpose of this white paper is to improve the productivity and efficiency of beer sales at
stadium concession stands. Currently, fans stand in long lines to purchase beer because
traditional beer taps are very inefficient. Some of these venues include NFL, NBA, MLB, and
NHL games. Beer sales are also very slow at concerts, bars, and festivals. If concession stands
do not improve efficiency, they stand to lose fans each and every year. A new beer dispensing
system was invented in 2009 which is much faster and more efficient. This white paper will
explain the multiple benefits of installing the new Bottoms Up Beer Dispensing System.
Background
A beer engine is a device for pumping beer, originally manually operated and typically used to
dispense beer from a cask or container in a pub's basement or cellar. It was invented by John
Lofting, a Dutch inventor, merchant, and manufacturer who moved from Amsterdam to London
in or about 1688, and patented a number of inventions including his "Sucking Worm Engine," a
fire hose and engine for extinguishing fires, and also a thimble knurling machine which
revolutionized thimble making. The London Gazette of March 17, 1691 stated "the patentee hath
also projected a very useful engine for starting of beers and other liquors which will deliver from
20 to 30 barrels an hour which are completely fixed with brass joints and screws at reasonable
rates."
Joseph Bramah, an inventor and locksmith, developed the beer engine further in 1797. Before
this development beer was served directly from the barrel and carried to the customer. By the
time Bramah's beer pumps became popular, the use of the term draught (drag, draw) to refer to
the act of serving beer was well established and transferred easily to beer served via the hand
pumps. The term "beer engine" refers to the pump itself, which is normally manually operated,
though electrically powered and gas powered pumps are occasionally used. When manually
powered, the term hand pump is often used to refer to both the pump and the associated handle.
The beer engine is normally located below the bar, and the visible handle is used to draw the
beer through a flexible tube to the spout, below which the glass is placed. Modern hand pumps
may clamp onto the edge of the bar or be mounted in a more permanent fashion integrated with
the top of the bar.
In the early 20th century, draught beer started to be served from pressurized containers.
Artificial carbonation was introduced in the United Kingdom in 1936, with Watney’s beer Red
Barrel. Though this method of serving beer did not gain popularity in the U.K. until the late
1950s, it did become the preferred method in the rest of Europe. The carbonation method of
serving beer subsequently spread to the rest of the world. By the early 1970s the term "draught
beer" almost exclusively referred to beer served under pressure as opposed to the traditional
cask or barrel beer.
In Britain, the Campaign for Real Ale was founded in 1971 to protect traditional unpressurized
beer and brewing methods. The group devised the term real ale to differentiate between beer
served from the cask and beer served under pressure. The term real ale has since been expanded
to include bottle-conditioned beer. Keg beer is a term for beer which is served from a
pressurized keg. Keg beer is often filtered and/or pasteurized, both of which are processes that
render the yeast inactive. In brewing, a keg is different from a cask. A cask has a tap hole near
the edge of the top, and a spile hole on the side used for conditioning the unfiltered and
unpasteurized beer. A keg has a single opening in the centre of the top to which a flow pipe is
attached.
2
Kegs are artificially pressurized after fermentation with carbon dioxide or a mixture of carbon
dioxide and nitrogen gas. Pressurized CO2 in the keg's headspace maintains carbonation in the
beer. The CO2 pressure varies depending on the amount of CO2 already in the beer and the keg
storage temperature. Occasionally the CO2 gas is blended with nitrogen gas. CO2 / nitrogen
blends are used to allow a higher operating pressure in complex dispensing systems. Nitrogen is
used under high pressure when dispensing dry stouts, such as Guinness and other creamy beers
because it displaces CO2 to artificially form a rich tight head and a less carbonated taste. This
makes the beer feel smooth on the palate and gives a foamy appearance. Premixed bottled gas
for creamy beers is usually 75% nitrogen and 25% CO2.
Keg beer is relatively more difficult to manage, mostly because of the method of delivery; the
draught system. Statistics indicate that between 15% and 40% of the beer in a keg is lost as
bartenders pour ounce after ounce down the drain in an effort to get a proper pour due to
foaming. Foaming can be caused by inefficient draft systems. Inefficiencies can include the
cooling of the beer tubing used to transport the beer, couplings and distance of the lines carrying
the beer. These numbers can be staggering and unacceptable to an establishment’s owner,
especially because those profits can be easily captured.
Figure 1: Draft Beer System
Keg Volume and Dimensions for standard US Kegs:
½ Barrel holds 15.5 gallons or 1,984 ounces
Serves about 130 fifteen-ounce beers
Weighs 161 pounds full
24" high with a 16" diameter
Note: US keg dimensions may vary slightly by keg manufacturer and brewery. European kegs
vary in size, but are similar to US sizes.
3
Solution
There is a faster way for beer to be served. It is known as the Bottoms Up Draft Beer Dispenser.
It is a device that fills up cups of beer from the bottom rather than the top. The way that this is
possible is by the use of plastic cups that have circular magnets fitted into the bottom. The
dispenser pushes the magnet up in order to enter the cup and fills it with beer. The dispenser
stops filling up the cup when it reaches a certain point. Afterwards, while taking the cup off of
the dispenser the pressure of the beer causes the magnet to quickly fit back into place. Below is a
picture of the four-nozzle dispenser.
Figure 2: Four-Nozzle Bottoms Up Dispenser
This dispenser is great for many reasons. The dispenser is small and does not take up a lot of
space and causes only small spills compared to the taps that are used today. The four-nozzle
dispenser has a depth of 13.75 inches, a width of 21.5 inches and its height is four inches. The
magnets that are used for the cups are customizable, meaning that stadiums can create their
own magnets and advertise their business. The greatest thing about the Bottoms Up dispenser is
that it fills a cup in a matter of seconds. Customers then get to enjoy a foamless cup of beer.
With the four nozzle dispenser, a person can pour around 62 pints of beer in a minute. This
dispenser improves beer sales and also increases profit.
The Bottoms Up dispenser was created and invented by Josh Springer, the CEO of GrinOn
Industries. Springer first created a prototype of his invention back in 2008 and was a success.
This marked the start of GrinOn Industries. Currently Springer’s main focus is improving the
dispenser by creating additional hardware products that compliment it.
Springer’s company has found ways to improve the hardware of their dispensers. For instance,
the electronics have been redesigned so that they can withstand bad weather conditions. They
use waterproof connectors and the circuit board is encapsulated so that it can handle harsh
weather conditions. There are available countertop dispensers that use a cooling system for
short-draw keg coolers that are sold separately. The technology of the dispenser is top-notch and
sturdy.
The cost of the four-nozzle dispenser is $1,950. However, the benefits greatly outweigh the cost.
The money that is spent to purchase the Bottoms Up Dispenser will be made up by the increased
efficiency, productivity, and speed. The more you sell the more revenue you will make. It will
prove to be a great replacement for standard beer taps.
4
In order to properly use the dispenser, you are required to also purchase the cups that work with
it. These cups are made of plastic and the magnets used are made of rubber. Just as the
dispenser, both the cup and magnet have been improved. Each magnet also has a rigid metal
ring that causes a stronger magnetic seal when using the dispenser. Cups have a recessed
bottom to prevent handling accidents and makes placing the nozzle much easier and faster. The
cups cost 45 cents more than traditional cups but stadiums benefit from the possibility of
creating their own customized magnets for advertising purposes. Below is a picture of the cup
and a few custom-made magnets.
Figure 3: Cups & Magnets
The magnets are removable and can be kept by customers. Stadiums with their own magnet
logos can increase their business. These places will be known for their faster beer output and it
will attract consumers who want fast service for their beer needs without missing the big game.
Workers do not have to worry about big spills and filling the cups becomes a much easier task
than before. The stadiums are gaining more customers due to the faster service.
More than 100 stadiums and other businesses have invested in the Bottoms Up Dispenser
throughout the United States. Bottoms Up dispensers have already been installed in three
Michigan locations: Ford Field, John Louis Arena, and L.C. Walker Arena.
Many businesses in Texas greatly support the dispenser seeing as there are 16 locations that use
it.
Businesses that use the Bottoms Up Dispenser have seen an increase in sales. In a testimony
from the Hawks Memorial Stadium in Boise, Idaho, they “sold 19,160 draught beers during 38
games” using standard beer taps during the 2011 baseball season. They averaged 80 servings per
kegs that same year. After switching to the Bottoms Up Dispenser, they increased their sales to
27,237 draught beers during 38 games and averaged 120 servings per keg. They sold 8,077 more
beers than they did the year before.
5
Other places that have seen great results from this dispenser are the Coca Cola Field in New
York, the Qualcomm Stadium in San Diego, the Yum! Center and Papa John’s Stadium in
Kentucky, the Columbus Clippers, and more.
Last year, GrinOn Industries held Field Tests from May 14 to May 16 at three locations: Angel
Stadium in Anaheim, Dodger Stadium in Los Angeles, and Petco Park in San Diego respectively.
One team would watch a concession stand using the Bottoms Up Dispenser while another group
would watch another stand that used regular taps. The tests were to analyze the following:
1. Transaction Time
2. Line Queue
3. Throughput
What they found was that revenue from the Bottoms Up stand was 35% higher than traditional
tap stands. They also found that transaction times were faster by 29% and 39% shorter lines
than traditional tap stands. Lastly, they found that Bottoms Up served 29% more cups than the
traditional tap stands. Below are charts of the revenue made by traditional taps compared to
Bottoms Up. The second graph compares transaction times.
Figure 4: Revenue & Transaction Times
As the data shows, Bottoms Up shows the potential to increase both the amount of customers
and profit if their product is utilized by businesses. Springer’s invention has proven to help
many others and proves to be a game changer in competition with other businesses.
Recommendation
We highly recommend installing the Bottoms Up Draft Beer Dispensing System in each of the
concession stands in your sports stadiums. This solution will increase beer sales, provide labor
savings, less wasted beer, better customer service, and can be used as a marketing tool. Bottoms
Up is easy to install, doesn’t take up much space, and will pay for itself in less than one year.
This beer dispensing system is already being used in hundreds of sports stadiums with great
success.
6
Increased Beer Sales
By installing the Bottoms Up dispensing system, we will be able to increase beer sales by
reducing the amount of time it takes to pour a beer. Bottoms Up has set the world record for
being the fastest dispenser in the world. One person using a four cup dispenser was able to pour
62 pints of beer in one minute. These faster transaction times help to increase revenue quite
drastically. According to Geno George, Director of Food Services for the Boise Hawks in Idaho,
they installed Bottoms Up in 2012 and increased beer sales by 8,077 cups in just 38 games. The
increased beer sales will offset the price of the dispenser in less than one season.
Bottoms Up performed a field test at three stadiums in California in May 2012: Angel Stadium,
Dodger Stadium, and Petco Park. They measured three key metrics: transaction times, line
length, and throughput. Utilizing Bottoms Up, transaction times were 29% faster, lines were
39% shorter, revenue was 35% higher, and they served 29% more cups than traditional beer
taps. These statistics are very much in line with what other sports stadiums are also realizing.
Now, the beer stations are moving much faster which allows for more beer sales.
Labor Savings
Another great benefit of the Bottoms Up dispensing system is that you’re able to pour more beer
with fewer employees. The system pours four beers at a time and is hands-free; it automatically
stops pouring when the beer is full. This combination allows for fewer employees which
translate to a savings in payroll. A smaller payroll means more money in the bank. Todd
Homon, General Manager of the Columbus Clippers, is currently enjoying the many benefits of
Bottoms Up. He has seen a large increase in productivity and a reduction in labor costs. They
were able to break a sales record with one employee that was set by two employees using
traditional taps. He boasts they were able to sell almost 450 beers in only four hours.
The success stories are becoming quite plentiful as more stadiums begin to install the new
system. The Verizon Center in Washington DC recently purchased Bottoms Up and is
benefitting from the increased productivity. Josh Springer, inventor of Bottoms Up, says that
stadiums “have gone from using eight beer pourers for every two cashiers to having one beer
pourer for every eight cashiers.” This revolutionary innovation by Josh Springer has solved
many problems when it comes to pouring beer.
Better Keg Yield
Another problem Bottoms Up has solved is the issue of wasted beer. According to
BeerAdvocate, many bartenders use the over-pour method. This is where they hit the tap hard,
tip the glass deep, and allow beer to foam up and spill over until the beer is full. The problem
with this method is that it wastes a lot of beer. When using this method, roughly 30% of the
beer in the keg is wasted. In other words, the keg yield is only 70% and profitability is greatly
reduced. Rob Free, Director of the Buffalo Bisons baseball team, is seeing a 95% keg yield with
the Bottoms Up system. This is approximately 25% better than the yield from using traditional
taps. Brad Johnson, Concessions Manager at Qualcomm Stadium, is also seeing greater yields
from each keg which has led to an increase in gross sales. His employees actually prefer to work
in the section with Bottoms Up because they say it’s the fun section to work.
7
Better Customer Service
The fun factor of Bottoms Up is actually translating to better customer service and improving
the fan’s game day experience. The thrill of watching Bottoms Up at work is winning repeat
customers across the nation. It generates buzz and excitement from fans while also increasing
speed of service. According to Rob Free, Director of the Buffalo Bisons Baseball, “People loved
to watch the system work, and would bring their friends back to see it pour. I can’t wait to add
more units next year.” Fans are so excited to see Bottoms Up in action that YouTube videos
have already gone viral.
As ticket prices continue to rise, great customer service and a great fan experience become quite
important. As Leena Rao points out, “Visiting concession stands at sports venues and concerts
can be a frustrating experience. Not only do you often have to face long lines but you miss parts
of the event you are watching.” Without a doubt, Bottoms Up has solved the frustration of long
beer lines.
Marketing Tool
Another great aspect of Bottoms Up is that it creates a lot of buzz because it is so unique. This
word of mouth advertising can be used as a marketing tool. Rob Free, Director of Buffalo Bisons
Baseball, does a great job with this. He actually has a sign on the beer kiosk that reads, “The
fastest draft you’ll ever get.” Faster beer pours are leading to more beer sales and a better game
day experience; it’s a win-win-win scenario.
Seungbum and Soonhwan Lee from The University of Akron have studied concession
management in detail. They point out that, “Concession plays a crucial role in that it is one of
the components of a fan’s game day experience and is a huge source of revenue to the team.”
Fans increase their expectations from year to year as ticket prices go higher and higher.
Bottoms Up is a great solution as it exceeds these expectations.
Savings Summary
The spreadsheet below will explain the potential savings we will realize after installing the
Bottoms Up beer dispensing system. The average beer price comes from Team Marketing
Report. Every year, they put together a Fan Cost Index which lists the average beer prices. The
MLB price is from 2011 and the other three are from 2010. The average attendance comes from
ESPN.com; this is an average attendance per stadium from their most recent full season. The
number of beers is based on the Fan Cost Index from Team Marketing Report. They calculate
two beers for every four fans. The current Cost of Goods Sold is based on an existing tap
yielding 80 beers per keg at a price of $105 per keg. The current labor cost is based on the Field
Test performed by Bottoms Up in May 2012. With a traditional tap, they were able to serve 553
beers in three hours with two employees. Six hours of labor at $7.25 per hour equals $43.50.
This equates to $0.07866 per beer in labor costs. The current profit per game in beer sales is
simply revenue minus expenses.
After installing Bottoms Up, the numbers in each column shift in our favor significantly. Beer
sales are increased by 20% as stated in Captain’s Beer Blog. This is a very realistic number since
the Boise Hawks experienced a 42% increase in 2012. The new Cost of Goods Sold is based on
120 beers per keg at a price of $105 per keg. This equates to a 95% keg yield as experienced by
both the Buffalo Bisons and Boise Hawks. The new labor cost is based on the 29% increase in
productivity as witnessed at the Bottoms Up Field Test. During this study, Bottoms Up served
8
713 beers while the traditional tap only served 553. Again, the new profit is simply revenue
minus expenses.
As you can see, the average NFL team should expect to see a profit increase of $56,270 per
game. The average NBA team can expect to see a profit increase of $14,220 per game. The
average MLB team should see a profit increase of $22,075 per game and the NHL should see an
increase of $14,418.
Profit Analysis
Avg. Beer Price Avg. Attendance # of beers per game
NFL $6.90 67,579 33,789
NBA $6.77 17,348 8,674
MLB $5.81 30,504 15,252
NHL $6.71 17,720 8,860
Current Profit Using Traditional Beer Taps
Current Beer
Sales
Current
COGS
Current Labor
Cost
Current Profit Per
Game
NFL $233,146 $44,348 $2,658 $186,140
NBA $58,724 $11,385 $682 $46,657
MLB $88,615 $20,018 $1,200 $67,397
NHL $59,451 $11,629 $697 $47,125
Potential Profit Using Bottoms Up
New Beer Sales New COGS
New Labor
Cost
New Profit Per
Game
Profit
Increase
NFL $279,776 $35,479 $1,887 $242,410 $56,270
NBA $70,468 $9,108 $484 $60,876 $14,220
MLB $106,338 $16,015 $852 $89,471 $22,075
NHL $71,341 $9,303 $495 $61,543 $14,418
Conclusion
Event ticket prices are higher than ever and fans deserve an excellent game-day experience.
Concession stands need to provide fast service so fans can get back to their seat and watch the
game. Not only does Bottoms Up add to the excitement of the game, but it makes complete
financial sense. The profit increase easily offsets the cost of installing the new dispensers.
Although this product is new, it’s already been installed in hundreds of stadiums across the
United States. Any solution can provide one benefit, but it’s not very often that one product can
provide multiple benefits like the Bottoms Up Beer Dispenser delivers.
9
Works Cited
Beer Engine. iFood.TV, 2009. Web. 6 Dec. 2013. <http://www.ifood.tv/network/beer_engine>.
Bottoms Up beer dispenser fills the record. The Captain's Chair, 18 Jan. 2013. Web. 6 Dec. 2013.
<http://captainsbeerblog.com/?p=16>.
Cohen, Brad. The Story Behind The Greatest Invention Ever: Beer Cups That Fill Up From The
Bottom. SportsGrid LLC, 19 Jan. 2011. Web. 6 Dec. 2013.
<http://www.sportsgrid.com/media/the-story-behind-the-greatest-invention-ever-beer-
cups-that-fill-up-from-the-bottom/>.
Cups. GrinOn Industries, 2013. Web. 6 Dec. 2013.
<http://www.grinonindustries.com/products/view/2>.
Dispensers. GrinOn Industries, 2013. Web. 6 Dec. 2013.
<http://www.grinonindustries.com/products/view/1>.
Draft Beer Technology. WaylandWorks, 2012. Web. 6 Dec. 2013.
<http://www.waylandworks.com/draftbeer.htm>.
Draft Beer 101. KegWorks, 2013. Web. 6 Dec. 2013.
<http://www.kegworks.com/company/kegworks-community/home-bar/draft-beer-
systems/101>.
Fan Cost Index. Team Marketing Report, 2013. Web. 6 Dec. 2013.
<https://teammarketing.com/btSubscriptions/fancostindex/index>.
"Field Test Analysis." Learning Center. GrinOn Industries, May 2012. Web. 6 Dec. 2013.
<http://www.grinonindustries.com/resources>.
How Draft Beer Systems Work. KegWorks, 2013. Web. 6 Dec. 2013.
<http://www.kegworks.com/company/kegworks-community/home-bar/draft-beer-
systems/how-they-work>.
How to evaluate your percentage of lost beer. Auper Electronic Controls Inc., 2013. Web. 6 Dec.
2013. <http://draftbeermeters.com/lost-beer-25.html>.
Joseph Bramah. Encyclopædia Britannica Inc., 2013. Web. 6 Dec. 2013.
<http://www.britannica.com/EBchecked/topic/77465/Joseph-Bramah>.
Lee, Seungbum, and Soonhwan Lee. "How Much Do We Know about Concession Management?
What Outsourcing Can Explain About Concession Management." Current Contents.
International Journal of Developmental Sport Management, 10 Apr. 2013. Web. 6 Dec.
2013. <http://www.internationaljournalofdevelopmentalsportmanagement.com/>.
MLB Attendance Report - 2013. ESPN.com, 2013. Web. 6 Dec. 2013.
<http://espn.go.com/mlb/attendance>.
NBA Attendance Report - 2013. ESPN.com, 2013. Web. 6 Dec. 2013.
<http://espn.go.com/nba/attendance/_/year/2013>.
10
Works Cited
NFL Attendance - 2012. ESPN.com, 2013. Web. 6 Dec. 2013.
<http://espn.go.com/nfl/attendance/_/year/2012>.
NHL Attendance Report - 2012-13. ESPN.com, 2013. Web. 6 Dec. 2013.
<http://espn.go.com/nhl/attendance/_/year/2013>.
Rao, Leena. FanGo Lets You Avoid Long Concession Stand Lines At Sports Events And
Concerts. AOL Inc., 10 Oct. 2010. Web. 6 Dec. 2013.
<http://techcrunch.com/2010/10/10/fango-lets-you-avoid-long-concession-stand-
lines-at-sports-events-and-concerts/>.
Seeking the Proper Pour. BeerAdvocate, 6 Jan. 2005. Web. 6 Dec. 2013.
<http://beeradvocate.com/articles/621>.
Testimonials. GrinOn Industries, 2013. Web. 6 Dec. 2013.
<http://www.grinonindustries.com/testimonials>.
The Century Club. GrinOn Industries, 2013. Web. 6 Dec. 2013.
<http://www.grinonindustries.com/locations>.
Warrener, Brian. Deliver Quality Beer While Minimizing Waste. Questex Media Group LLC, 15
Oct. 2013. Web. 6 Dec. 2013. <http://www.nightclub.com/bar-management/deliver-
quality-beer-while-minimizing-waste>.
Wetzel, Dan. The Death Of The Beer Line. Sports Media Ventures Inc., 18 Jan. 2011. Web. 6 Dec.
2013. <http://www.thepostgame.com/features/201101/death-beer-line>.

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WRT White Paper - Bottoms Up - FINAL DRAFT

  • 1. i Bottoms Up Draft Beer Dispenser Jason Nash Anthony Smith Isaiah Whitlow 6 December 2013 WRT-382 Prof. Walwema
  • 2. ii Abstract As event ticket prices continue to increase amidst an uncertain economy, sports stadiums need to find new and innovative ways to improve the game-day experience for each fan. This is becoming an issue at NFL, NBA, MLB, and NHL games, as well as concerts, bars, and festivals. This study provides a very realistic solution which can be implemented fairly quickly and provides multiple benefits. Specifically, this descriptive study will outline the benefits from installing a new beer dispensing system which holds the current world record for dispensing the most beers in one minute by one person. This study discusses the Bottoms Up Beer Dispensing System in detail and outlines the multiple benefits. A profit analysis was also performed in order to forecast the potential increase in profit per game.
  • 3. iii Table of Contents Abstract…….................................................................................................................. ii Introduction ................................................................................................................. 1 Background .................................................................................................................. 1 Figure 1: Draft Beer System ………………………………………………………………… 2 Keg Volume and Dimensions for standard US Kegs …………………………..…… 2 Solution ……………….……………...................................................................................... 3 Figure 2: Four-Nozzle Bottoms Up Dispenser ………………..…………………….. 3 Figure 3: Cups & Magnets ………………………………………………………………….. 4 Figure 4: Revenue & Transaction Times ……………………………………………….. 5 Recommendation ………………...................................................................................... 5 Increased Beer Sales ……................................................................................. 6 Labor Savings …............................................................................................... 6 Better Keg Yield ………..…................................................................................. 6 Better Customer Service …............................................................................... 7 Marketing Tool …………..................................................................................... 7 Savings Summary ………………………..……………..……………………………………….. 7 Profit Analysis ……………………...................................................................................... 8 Conclusion ................................................................................................................... 8 Works Cited.................................................................................................................. 9
  • 4. 1 Introduction The purpose of this white paper is to improve the productivity and efficiency of beer sales at stadium concession stands. Currently, fans stand in long lines to purchase beer because traditional beer taps are very inefficient. Some of these venues include NFL, NBA, MLB, and NHL games. Beer sales are also very slow at concerts, bars, and festivals. If concession stands do not improve efficiency, they stand to lose fans each and every year. A new beer dispensing system was invented in 2009 which is much faster and more efficient. This white paper will explain the multiple benefits of installing the new Bottoms Up Beer Dispensing System. Background A beer engine is a device for pumping beer, originally manually operated and typically used to dispense beer from a cask or container in a pub's basement or cellar. It was invented by John Lofting, a Dutch inventor, merchant, and manufacturer who moved from Amsterdam to London in or about 1688, and patented a number of inventions including his "Sucking Worm Engine," a fire hose and engine for extinguishing fires, and also a thimble knurling machine which revolutionized thimble making. The London Gazette of March 17, 1691 stated "the patentee hath also projected a very useful engine for starting of beers and other liquors which will deliver from 20 to 30 barrels an hour which are completely fixed with brass joints and screws at reasonable rates." Joseph Bramah, an inventor and locksmith, developed the beer engine further in 1797. Before this development beer was served directly from the barrel and carried to the customer. By the time Bramah's beer pumps became popular, the use of the term draught (drag, draw) to refer to the act of serving beer was well established and transferred easily to beer served via the hand pumps. The term "beer engine" refers to the pump itself, which is normally manually operated, though electrically powered and gas powered pumps are occasionally used. When manually powered, the term hand pump is often used to refer to both the pump and the associated handle. The beer engine is normally located below the bar, and the visible handle is used to draw the beer through a flexible tube to the spout, below which the glass is placed. Modern hand pumps may clamp onto the edge of the bar or be mounted in a more permanent fashion integrated with the top of the bar. In the early 20th century, draught beer started to be served from pressurized containers. Artificial carbonation was introduced in the United Kingdom in 1936, with Watney’s beer Red Barrel. Though this method of serving beer did not gain popularity in the U.K. until the late 1950s, it did become the preferred method in the rest of Europe. The carbonation method of serving beer subsequently spread to the rest of the world. By the early 1970s the term "draught beer" almost exclusively referred to beer served under pressure as opposed to the traditional cask or barrel beer. In Britain, the Campaign for Real Ale was founded in 1971 to protect traditional unpressurized beer and brewing methods. The group devised the term real ale to differentiate between beer served from the cask and beer served under pressure. The term real ale has since been expanded to include bottle-conditioned beer. Keg beer is a term for beer which is served from a pressurized keg. Keg beer is often filtered and/or pasteurized, both of which are processes that render the yeast inactive. In brewing, a keg is different from a cask. A cask has a tap hole near the edge of the top, and a spile hole on the side used for conditioning the unfiltered and unpasteurized beer. A keg has a single opening in the centre of the top to which a flow pipe is attached.
  • 5. 2 Kegs are artificially pressurized after fermentation with carbon dioxide or a mixture of carbon dioxide and nitrogen gas. Pressurized CO2 in the keg's headspace maintains carbonation in the beer. The CO2 pressure varies depending on the amount of CO2 already in the beer and the keg storage temperature. Occasionally the CO2 gas is blended with nitrogen gas. CO2 / nitrogen blends are used to allow a higher operating pressure in complex dispensing systems. Nitrogen is used under high pressure when dispensing dry stouts, such as Guinness and other creamy beers because it displaces CO2 to artificially form a rich tight head and a less carbonated taste. This makes the beer feel smooth on the palate and gives a foamy appearance. Premixed bottled gas for creamy beers is usually 75% nitrogen and 25% CO2. Keg beer is relatively more difficult to manage, mostly because of the method of delivery; the draught system. Statistics indicate that between 15% and 40% of the beer in a keg is lost as bartenders pour ounce after ounce down the drain in an effort to get a proper pour due to foaming. Foaming can be caused by inefficient draft systems. Inefficiencies can include the cooling of the beer tubing used to transport the beer, couplings and distance of the lines carrying the beer. These numbers can be staggering and unacceptable to an establishment’s owner, especially because those profits can be easily captured. Figure 1: Draft Beer System Keg Volume and Dimensions for standard US Kegs: ½ Barrel holds 15.5 gallons or 1,984 ounces Serves about 130 fifteen-ounce beers Weighs 161 pounds full 24" high with a 16" diameter Note: US keg dimensions may vary slightly by keg manufacturer and brewery. European kegs vary in size, but are similar to US sizes.
  • 6. 3 Solution There is a faster way for beer to be served. It is known as the Bottoms Up Draft Beer Dispenser. It is a device that fills up cups of beer from the bottom rather than the top. The way that this is possible is by the use of plastic cups that have circular magnets fitted into the bottom. The dispenser pushes the magnet up in order to enter the cup and fills it with beer. The dispenser stops filling up the cup when it reaches a certain point. Afterwards, while taking the cup off of the dispenser the pressure of the beer causes the magnet to quickly fit back into place. Below is a picture of the four-nozzle dispenser. Figure 2: Four-Nozzle Bottoms Up Dispenser This dispenser is great for many reasons. The dispenser is small and does not take up a lot of space and causes only small spills compared to the taps that are used today. The four-nozzle dispenser has a depth of 13.75 inches, a width of 21.5 inches and its height is four inches. The magnets that are used for the cups are customizable, meaning that stadiums can create their own magnets and advertise their business. The greatest thing about the Bottoms Up dispenser is that it fills a cup in a matter of seconds. Customers then get to enjoy a foamless cup of beer. With the four nozzle dispenser, a person can pour around 62 pints of beer in a minute. This dispenser improves beer sales and also increases profit. The Bottoms Up dispenser was created and invented by Josh Springer, the CEO of GrinOn Industries. Springer first created a prototype of his invention back in 2008 and was a success. This marked the start of GrinOn Industries. Currently Springer’s main focus is improving the dispenser by creating additional hardware products that compliment it. Springer’s company has found ways to improve the hardware of their dispensers. For instance, the electronics have been redesigned so that they can withstand bad weather conditions. They use waterproof connectors and the circuit board is encapsulated so that it can handle harsh weather conditions. There are available countertop dispensers that use a cooling system for short-draw keg coolers that are sold separately. The technology of the dispenser is top-notch and sturdy. The cost of the four-nozzle dispenser is $1,950. However, the benefits greatly outweigh the cost. The money that is spent to purchase the Bottoms Up Dispenser will be made up by the increased efficiency, productivity, and speed. The more you sell the more revenue you will make. It will prove to be a great replacement for standard beer taps.
  • 7. 4 In order to properly use the dispenser, you are required to also purchase the cups that work with it. These cups are made of plastic and the magnets used are made of rubber. Just as the dispenser, both the cup and magnet have been improved. Each magnet also has a rigid metal ring that causes a stronger magnetic seal when using the dispenser. Cups have a recessed bottom to prevent handling accidents and makes placing the nozzle much easier and faster. The cups cost 45 cents more than traditional cups but stadiums benefit from the possibility of creating their own customized magnets for advertising purposes. Below is a picture of the cup and a few custom-made magnets. Figure 3: Cups & Magnets The magnets are removable and can be kept by customers. Stadiums with their own magnet logos can increase their business. These places will be known for their faster beer output and it will attract consumers who want fast service for their beer needs without missing the big game. Workers do not have to worry about big spills and filling the cups becomes a much easier task than before. The stadiums are gaining more customers due to the faster service. More than 100 stadiums and other businesses have invested in the Bottoms Up Dispenser throughout the United States. Bottoms Up dispensers have already been installed in three Michigan locations: Ford Field, John Louis Arena, and L.C. Walker Arena. Many businesses in Texas greatly support the dispenser seeing as there are 16 locations that use it. Businesses that use the Bottoms Up Dispenser have seen an increase in sales. In a testimony from the Hawks Memorial Stadium in Boise, Idaho, they “sold 19,160 draught beers during 38 games” using standard beer taps during the 2011 baseball season. They averaged 80 servings per kegs that same year. After switching to the Bottoms Up Dispenser, they increased their sales to 27,237 draught beers during 38 games and averaged 120 servings per keg. They sold 8,077 more beers than they did the year before.
  • 8. 5 Other places that have seen great results from this dispenser are the Coca Cola Field in New York, the Qualcomm Stadium in San Diego, the Yum! Center and Papa John’s Stadium in Kentucky, the Columbus Clippers, and more. Last year, GrinOn Industries held Field Tests from May 14 to May 16 at three locations: Angel Stadium in Anaheim, Dodger Stadium in Los Angeles, and Petco Park in San Diego respectively. One team would watch a concession stand using the Bottoms Up Dispenser while another group would watch another stand that used regular taps. The tests were to analyze the following: 1. Transaction Time 2. Line Queue 3. Throughput What they found was that revenue from the Bottoms Up stand was 35% higher than traditional tap stands. They also found that transaction times were faster by 29% and 39% shorter lines than traditional tap stands. Lastly, they found that Bottoms Up served 29% more cups than the traditional tap stands. Below are charts of the revenue made by traditional taps compared to Bottoms Up. The second graph compares transaction times. Figure 4: Revenue & Transaction Times As the data shows, Bottoms Up shows the potential to increase both the amount of customers and profit if their product is utilized by businesses. Springer’s invention has proven to help many others and proves to be a game changer in competition with other businesses. Recommendation We highly recommend installing the Bottoms Up Draft Beer Dispensing System in each of the concession stands in your sports stadiums. This solution will increase beer sales, provide labor savings, less wasted beer, better customer service, and can be used as a marketing tool. Bottoms Up is easy to install, doesn’t take up much space, and will pay for itself in less than one year. This beer dispensing system is already being used in hundreds of sports stadiums with great success.
  • 9. 6 Increased Beer Sales By installing the Bottoms Up dispensing system, we will be able to increase beer sales by reducing the amount of time it takes to pour a beer. Bottoms Up has set the world record for being the fastest dispenser in the world. One person using a four cup dispenser was able to pour 62 pints of beer in one minute. These faster transaction times help to increase revenue quite drastically. According to Geno George, Director of Food Services for the Boise Hawks in Idaho, they installed Bottoms Up in 2012 and increased beer sales by 8,077 cups in just 38 games. The increased beer sales will offset the price of the dispenser in less than one season. Bottoms Up performed a field test at three stadiums in California in May 2012: Angel Stadium, Dodger Stadium, and Petco Park. They measured three key metrics: transaction times, line length, and throughput. Utilizing Bottoms Up, transaction times were 29% faster, lines were 39% shorter, revenue was 35% higher, and they served 29% more cups than traditional beer taps. These statistics are very much in line with what other sports stadiums are also realizing. Now, the beer stations are moving much faster which allows for more beer sales. Labor Savings Another great benefit of the Bottoms Up dispensing system is that you’re able to pour more beer with fewer employees. The system pours four beers at a time and is hands-free; it automatically stops pouring when the beer is full. This combination allows for fewer employees which translate to a savings in payroll. A smaller payroll means more money in the bank. Todd Homon, General Manager of the Columbus Clippers, is currently enjoying the many benefits of Bottoms Up. He has seen a large increase in productivity and a reduction in labor costs. They were able to break a sales record with one employee that was set by two employees using traditional taps. He boasts they were able to sell almost 450 beers in only four hours. The success stories are becoming quite plentiful as more stadiums begin to install the new system. The Verizon Center in Washington DC recently purchased Bottoms Up and is benefitting from the increased productivity. Josh Springer, inventor of Bottoms Up, says that stadiums “have gone from using eight beer pourers for every two cashiers to having one beer pourer for every eight cashiers.” This revolutionary innovation by Josh Springer has solved many problems when it comes to pouring beer. Better Keg Yield Another problem Bottoms Up has solved is the issue of wasted beer. According to BeerAdvocate, many bartenders use the over-pour method. This is where they hit the tap hard, tip the glass deep, and allow beer to foam up and spill over until the beer is full. The problem with this method is that it wastes a lot of beer. When using this method, roughly 30% of the beer in the keg is wasted. In other words, the keg yield is only 70% and profitability is greatly reduced. Rob Free, Director of the Buffalo Bisons baseball team, is seeing a 95% keg yield with the Bottoms Up system. This is approximately 25% better than the yield from using traditional taps. Brad Johnson, Concessions Manager at Qualcomm Stadium, is also seeing greater yields from each keg which has led to an increase in gross sales. His employees actually prefer to work in the section with Bottoms Up because they say it’s the fun section to work.
  • 10. 7 Better Customer Service The fun factor of Bottoms Up is actually translating to better customer service and improving the fan’s game day experience. The thrill of watching Bottoms Up at work is winning repeat customers across the nation. It generates buzz and excitement from fans while also increasing speed of service. According to Rob Free, Director of the Buffalo Bisons Baseball, “People loved to watch the system work, and would bring their friends back to see it pour. I can’t wait to add more units next year.” Fans are so excited to see Bottoms Up in action that YouTube videos have already gone viral. As ticket prices continue to rise, great customer service and a great fan experience become quite important. As Leena Rao points out, “Visiting concession stands at sports venues and concerts can be a frustrating experience. Not only do you often have to face long lines but you miss parts of the event you are watching.” Without a doubt, Bottoms Up has solved the frustration of long beer lines. Marketing Tool Another great aspect of Bottoms Up is that it creates a lot of buzz because it is so unique. This word of mouth advertising can be used as a marketing tool. Rob Free, Director of Buffalo Bisons Baseball, does a great job with this. He actually has a sign on the beer kiosk that reads, “The fastest draft you’ll ever get.” Faster beer pours are leading to more beer sales and a better game day experience; it’s a win-win-win scenario. Seungbum and Soonhwan Lee from The University of Akron have studied concession management in detail. They point out that, “Concession plays a crucial role in that it is one of the components of a fan’s game day experience and is a huge source of revenue to the team.” Fans increase their expectations from year to year as ticket prices go higher and higher. Bottoms Up is a great solution as it exceeds these expectations. Savings Summary The spreadsheet below will explain the potential savings we will realize after installing the Bottoms Up beer dispensing system. The average beer price comes from Team Marketing Report. Every year, they put together a Fan Cost Index which lists the average beer prices. The MLB price is from 2011 and the other three are from 2010. The average attendance comes from ESPN.com; this is an average attendance per stadium from their most recent full season. The number of beers is based on the Fan Cost Index from Team Marketing Report. They calculate two beers for every four fans. The current Cost of Goods Sold is based on an existing tap yielding 80 beers per keg at a price of $105 per keg. The current labor cost is based on the Field Test performed by Bottoms Up in May 2012. With a traditional tap, they were able to serve 553 beers in three hours with two employees. Six hours of labor at $7.25 per hour equals $43.50. This equates to $0.07866 per beer in labor costs. The current profit per game in beer sales is simply revenue minus expenses. After installing Bottoms Up, the numbers in each column shift in our favor significantly. Beer sales are increased by 20% as stated in Captain’s Beer Blog. This is a very realistic number since the Boise Hawks experienced a 42% increase in 2012. The new Cost of Goods Sold is based on 120 beers per keg at a price of $105 per keg. This equates to a 95% keg yield as experienced by both the Buffalo Bisons and Boise Hawks. The new labor cost is based on the 29% increase in productivity as witnessed at the Bottoms Up Field Test. During this study, Bottoms Up served
  • 11. 8 713 beers while the traditional tap only served 553. Again, the new profit is simply revenue minus expenses. As you can see, the average NFL team should expect to see a profit increase of $56,270 per game. The average NBA team can expect to see a profit increase of $14,220 per game. The average MLB team should see a profit increase of $22,075 per game and the NHL should see an increase of $14,418. Profit Analysis Avg. Beer Price Avg. Attendance # of beers per game NFL $6.90 67,579 33,789 NBA $6.77 17,348 8,674 MLB $5.81 30,504 15,252 NHL $6.71 17,720 8,860 Current Profit Using Traditional Beer Taps Current Beer Sales Current COGS Current Labor Cost Current Profit Per Game NFL $233,146 $44,348 $2,658 $186,140 NBA $58,724 $11,385 $682 $46,657 MLB $88,615 $20,018 $1,200 $67,397 NHL $59,451 $11,629 $697 $47,125 Potential Profit Using Bottoms Up New Beer Sales New COGS New Labor Cost New Profit Per Game Profit Increase NFL $279,776 $35,479 $1,887 $242,410 $56,270 NBA $70,468 $9,108 $484 $60,876 $14,220 MLB $106,338 $16,015 $852 $89,471 $22,075 NHL $71,341 $9,303 $495 $61,543 $14,418 Conclusion Event ticket prices are higher than ever and fans deserve an excellent game-day experience. Concession stands need to provide fast service so fans can get back to their seat and watch the game. Not only does Bottoms Up add to the excitement of the game, but it makes complete financial sense. The profit increase easily offsets the cost of installing the new dispensers. Although this product is new, it’s already been installed in hundreds of stadiums across the United States. Any solution can provide one benefit, but it’s not very often that one product can provide multiple benefits like the Bottoms Up Beer Dispenser delivers.
  • 12. 9 Works Cited Beer Engine. iFood.TV, 2009. Web. 6 Dec. 2013. <http://www.ifood.tv/network/beer_engine>. Bottoms Up beer dispenser fills the record. The Captain's Chair, 18 Jan. 2013. Web. 6 Dec. 2013. <http://captainsbeerblog.com/?p=16>. Cohen, Brad. The Story Behind The Greatest Invention Ever: Beer Cups That Fill Up From The Bottom. SportsGrid LLC, 19 Jan. 2011. Web. 6 Dec. 2013. <http://www.sportsgrid.com/media/the-story-behind-the-greatest-invention-ever-beer- cups-that-fill-up-from-the-bottom/>. Cups. GrinOn Industries, 2013. Web. 6 Dec. 2013. <http://www.grinonindustries.com/products/view/2>. Dispensers. GrinOn Industries, 2013. Web. 6 Dec. 2013. <http://www.grinonindustries.com/products/view/1>. Draft Beer Technology. WaylandWorks, 2012. Web. 6 Dec. 2013. <http://www.waylandworks.com/draftbeer.htm>. Draft Beer 101. KegWorks, 2013. Web. 6 Dec. 2013. <http://www.kegworks.com/company/kegworks-community/home-bar/draft-beer- systems/101>. Fan Cost Index. Team Marketing Report, 2013. Web. 6 Dec. 2013. <https://teammarketing.com/btSubscriptions/fancostindex/index>. "Field Test Analysis." Learning Center. GrinOn Industries, May 2012. Web. 6 Dec. 2013. <http://www.grinonindustries.com/resources>. How Draft Beer Systems Work. KegWorks, 2013. Web. 6 Dec. 2013. <http://www.kegworks.com/company/kegworks-community/home-bar/draft-beer- systems/how-they-work>. How to evaluate your percentage of lost beer. Auper Electronic Controls Inc., 2013. Web. 6 Dec. 2013. <http://draftbeermeters.com/lost-beer-25.html>. Joseph Bramah. Encyclopædia Britannica Inc., 2013. Web. 6 Dec. 2013. <http://www.britannica.com/EBchecked/topic/77465/Joseph-Bramah>. Lee, Seungbum, and Soonhwan Lee. "How Much Do We Know about Concession Management? What Outsourcing Can Explain About Concession Management." Current Contents. International Journal of Developmental Sport Management, 10 Apr. 2013. Web. 6 Dec. 2013. <http://www.internationaljournalofdevelopmentalsportmanagement.com/>. MLB Attendance Report - 2013. ESPN.com, 2013. Web. 6 Dec. 2013. <http://espn.go.com/mlb/attendance>. NBA Attendance Report - 2013. ESPN.com, 2013. Web. 6 Dec. 2013. <http://espn.go.com/nba/attendance/_/year/2013>.
  • 13. 10 Works Cited NFL Attendance - 2012. ESPN.com, 2013. Web. 6 Dec. 2013. <http://espn.go.com/nfl/attendance/_/year/2012>. NHL Attendance Report - 2012-13. ESPN.com, 2013. Web. 6 Dec. 2013. <http://espn.go.com/nhl/attendance/_/year/2013>. Rao, Leena. FanGo Lets You Avoid Long Concession Stand Lines At Sports Events And Concerts. AOL Inc., 10 Oct. 2010. Web. 6 Dec. 2013. <http://techcrunch.com/2010/10/10/fango-lets-you-avoid-long-concession-stand- lines-at-sports-events-and-concerts/>. Seeking the Proper Pour. BeerAdvocate, 6 Jan. 2005. Web. 6 Dec. 2013. <http://beeradvocate.com/articles/621>. Testimonials. GrinOn Industries, 2013. Web. 6 Dec. 2013. <http://www.grinonindustries.com/testimonials>. The Century Club. GrinOn Industries, 2013. Web. 6 Dec. 2013. <http://www.grinonindustries.com/locations>. Warrener, Brian. Deliver Quality Beer While Minimizing Waste. Questex Media Group LLC, 15 Oct. 2013. Web. 6 Dec. 2013. <http://www.nightclub.com/bar-management/deliver- quality-beer-while-minimizing-waste>. Wetzel, Dan. The Death Of The Beer Line. Sports Media Ventures Inc., 18 Jan. 2011. Web. 6 Dec. 2013. <http://www.thepostgame.com/features/201101/death-beer-line>.