THE INSTITUTE OF BREWING & DISTILLING

A MEETING OF THE COUNCIL WAS HELD AT THE DIAGEO OFFICE, EDINBURGHON WEDNESDAY 6 TH NOVEMBER 2013 AT 1130 HOURS

PRESENT:

Alan Barclay ( President), Ken Fairbrother (Treasurer), Charlie Bamforth (Deputy President), Graeme Hall (UK Great Northern Section), Keith Lugton (Scottish Section), Colin McCrorie (Midland UK Section),Peter Channon (Southern UK Section), Alan McKibbin (Irish Section), Nigel Fitch (IBBS), Jeff Potter (Asia Pacific Section)

IN ATTENDANCE:

Simon Jackson (Executive Director), David Quain (BoE Chairman), Steve Curtis (IBD Technical Manager), Leonard Specterman (IBD Accountant), Marilyn Seedhouse (observer)

APOLOGIES:

Apologies received from Tom Shellhammer (International Section), Greg Udeh (Africa Section), Donald Nelson (Past President), Roger Putman, Inge Russell

C13/21 WELCOME

The President welcomed Councilors to the Council meeting.

C13/22 MINUTES AND MATTERS ARISING

No comments have been received. Minutes of the last meeting were accepted as a true and accurate record and were signed by the President.

C13/23 MEMBERSHIP MATTERS

23.1–23.6 attached as Appendix A, were expanded upon. Simon Jackson highlighted that membership at November 2013 stood at 4132. Growth continued to be driven by overseas sections although the UK sections, through new members joining from the Craft Brewing sector, continue to stabilize.

A large number of non-paying members had been removed from the register at the end of July. This remains an Achilles heel for the IBD and further work would again take place in an attempt to understand this loss of members at the end of each membership year. The reasons are complex but include;

Normal industry turnover which likely accounts for 50% of the losses. People reaching the end of the Diploma examinations and then receiving no further employer

support.

Adding value as a Membership Organisation continued to be the key to resolving the high level of lapsed members.

The gender split data was reviewed as a new standing item.

The issue of the boundary between Southern and Midlands sections had been raised at the SRC as agreed.

23.7 Fellowship Nominations

Six nominations for Fellowship had been received.

Christopher Hughes SouthernRoger Ryman SouthernIan Bearpark GNSIan Hornsey SouthernXiang Yin InternationalReginald Agu Scottish

These nominations were accepted unanimously by Council

23.8 Obituary

The names of recent late members were noted by the President and Council held a short period of reflection.

Robert C Costa Asia PacificOtto S J Haag Asia PacificJohn G Smart Asia PacificJohn W M Crisp SouthernMichael A Frost Southern

23.9 Nominations for Deputy President

No new nominations received

23.10 Corporate membership

SJJ to review the need for the continuation of this category SJJ

23.11 Membership fees

Fees for 2015 have already been set - the proposal for fees thereafter to be tabled at the next Council SJJ

C13/24 FINANCE AND GOVERNANCE

24.1 2013 Management Accounts

The Treasurer invited Leonard Specterman to give a report on the latest management accounts completed to the end of September 2013.

LS reported that income to September was very encouraging and that the full year forecast for income remained unchanged. Costs were also in line with forecast.

The overall forecast remains in the order of £60K to £70K surplus.

24.2 2014 Budget

The Treasurer introduced the detail of the 2014 Budget highlighting that this included increases in income for membership, examinations and training.

The detail of the budget was provided by LS. Council noted the budgeted increases in income and also noted the potential sensitivity of these to unexpected decline in demand for examinations and training. It was agreed that offsetting such risk with reasonable increases in fees remained the prudent approach.

Nigel Fitch asked for clarity about fixed and activity based costs. The budget schedules now show income, variable costs of achievement and net income. Fixed costs (people, buildings, IT etc. sit below net income)

The 2014 budget was approved unanimously by Council

24.3 Other Financial matters

LS then reviewed the balance sheet and demonstrated that management of debtors was helping cash flow and that cash flow was positive

LS also updated Council on IBD Trading - currently the income for WDSC 2014 remains ahead of expenditure.

The Treasurer reported that the VAT situation arising from the 2012 Audit had progressed in that an agreed sum had been paid to HMRC to reflect the new partial exemption arrangements. We await final confirmation from HMRC that the matter is settled

The Treasurer reported that the Charity Commission remained concerned that the bank reconciliations in the period 2007 to 2011 lack sufficient detail. It was agreed that the reconciliation completed in 2011 that resolved earlier inconsistencies and the current process of monthly bank reconciliations was robust. LS would contact the Commission again and suggest that a meeting to review the work completed since the issue of reconciliations was identified would be a useful next step.

24.4 Appointment of Auditors

The Treasurer briefed Council on the process to appoint auditors. A long list of five firms has been reduced to three one of which being our current auditors

Presentation from the three shortlisted firms would be made at interviews week commencing 11 th November. Nigel Fitch asked for clarity of the decision making criteria

KF responded that amongst other factors the decision would be made on;

Clarity of presentation and understanding of sector specific issues. The ability of key personnel (Partner and manager) to relate to clients and be able to add value through

clear advice and follow up on any actual or emerging issues. Value for money - price and service offering.

The outcome of the selection process would need to be ratified at an EGM.

This will be set for 19th December 2013 in London. SJJ

24.5 Governance

The President reported further progress since last Council.

The number of Trustees has now been reduced to 10 and new Section Chairs had not been automatically registered as Trustees with the Commission or Companies House

It has been agreed that the Audit and Governance Committee (O and M) will report directly to Council.

GNS had nominated Kevin Mitchell as an ‘independent’ Trustee and Midlands will be nominating Colin McCrorie.

The Publications and Communications Committee has been discontinued and therefore no longer provides a Trustee.

Section Secretaries are mainly no longer Trustees of the IBD but would continue to attend Council as alternates for Section Chairs as and when required.

Now that the shape of the new Governance structures was becoming clear and agreed then next steps will be to;

Potentially harmonise the role of the Trustees and the Audit and Governance Committee. Ensure that the Trustee Welcome Pack is all encompassing. Timetable Trustee training events and workshops supported by external expertise where required. Brief solicitors regarding new Articles and Byelaws.

24.6 Clarges Street

SJJ updated Council on the sale of Clarges Street which has been completed. IBD were now tenants of the building with the lease expiring on 18th April 2014.

SJJ briefed Council on the preferred new property.The property, originally offered on an 86 year lease, would be purchased with a new 986 year lease - negotiations for which had been completed.

Photographs of the building and the location were used to describe the space and potential of the site.

It was confirmed that three Trustees had visited and inspected the site.

Unanimous approval was given by Council to proceed with the purchase subject to the normal due diligence of survey, lease conditions and searches. Council also asked that the fit out of the building should provide modern communication facilities for educational and meeting purposes (Distance Learning, Webinars, Video and Voice conferencing).

A meeting room/library for visiting members should also be factored into the plan SJJ

Exchange of contracts was scheduled for the last week of November with completion on the 20th January 2014.

Target move in date is the end of March 2014.

Once exchange for the purchase has taken place then SJJ to make an announcement through e-news and the web of the outcome to ensure that members are fully briefed.

Council thanked Leonard Specterman for the quality and clarity of his reports and supporting documentation and asked that the team at Clarges Street also be thanked for their input. SJJ

C13/25 EXAMINATIONS AND TRAINING

25.1 Update on Training Activities

SJ updated that UK training activity for 2013 had been on par with 2012.

Bookings for 2014 were encouraging and would meet budget assumptions.

Training activity overseas continues to gain momentum.

DQ stressed that as Chair of the BoE he would now be turning his attention to procedures for trainers in the same way as he addressed procedures and ways of working for examiners.

25.2 Update on Beer Academy

The Beer Academy has now appointed on a 13 week assignment a Development Director tasked with recruiting Patrons and other new customers.

Ongoing activity was on par with 2012 – but with slightly fewer delegates but more of those delegates undertaking higher level training.

Council restated that the Beer Academy should be operating at a surplus and not call cash from the IBD.

The budget for 2014 is set within the overall IBD budget and therefore that overall budget determines the flexibility that the Beer Academy has to grow and develop but within the constraints of the budget.

25.3 Examinations report

Exam Results and Awards

The 2013 results can be summarised as follows (with 2012 figures in parentheses):

Diploma in Brewing: Candidates Average Mark Pass Rate

Dipl Brew 1 410 (287) 49.7% (46%) 71.2% (61%)

Dipl Brew 2 287 (209) 43.1% (42%) 53.3% (50%)

Dipl Brew 3 183 (174) 51.8% (55%) 63.9% (70%)

Overall 880 (670) 48.0% (47.1%) 63.8% (59.9%)

A total of 107 (98) candidates were awarded their Diploma in Brewing.

For the first time we examined the Diploma in Brewing in French:

Dip Brew 1: 21 Candidates Average Mark 44% Pass Rate 52%

Dip Brew 2: 21 Candidates Average Mark 44% Pass Rate 57%

Thanks in particular to Marc Schmitt and Jacques Mayance for their work in making this happen.

Diploma in Distilling:Candidates Average Mark Pass Rate

Dipl Distil 1 38 (21) 57.9% (62%) 89.5% (86%)

Dipl Distil 2 31 (14) 46.4% (55%) 58.1% (71%)

Dipl Distil 3 16 (20) 56.3% (55%) 81.3% (75%)

Overall 85 (55) 52.8% (57.7%) 73.3% (78.2%)

A total of 11 (14) candidates were awarded their Diploma in Distilling.

Diploma in Packaging: Candidates Average Mark Pass Rate

Dipl Pack 1 32 (38) 57.9% 68.8% (87%)

Dipl Pack 2 33 (2) 56% 81.8% (100%)

Dipl Pack 3 1 (9) --- 100% (78%)

Overall 66 (49) 57% 75.8% (85.9%)

One candidate was awarded their Diploma in Packaging. We expect a record number of candidates on the revised syllabus to get their Dipl. Pack next year!

Master Brewer: Candidates Average Mark Pass Rate

MB1 34 (41) 51.2% (54%) 55.9% (51%)

MB2 40 (43) 52.8% (52%) 55.0% (58%)

MB3 27 (25) 50.5% (59%) 48.1% (60%)

MB4 18 (16) 52.1% (61%) 61.1% (88%)

MB5 16 (10) 100% (90%)

Overall 135 (135) 51.7% (54.7%) 60.0% (62.2%) A total of 15 (6) candidates were awarded their Master Brewer.

Award Winners for Examination Year 2013 were as follows:

MASTER BREWER – BEST OVERALL CANDIDATE James S Hough AwardAlan Dempsey Diageo Global Supply, Dublin, Ireland Irish

DIPLOMA IN BREWING – BEST OVERALL CANDIDATE John S Ford AwardBenjamin Smith Surly Brewing Company, MN, USA International

DIPLOMA IN BREWING MODULE 1 Crisp Malting AwardJason Lappe Carlton & United Breweries, Queensland, Australia Asia Pacific

DIPLOMA IN BREWING MODULE 1 Crisp Malting AwardAgnieszka Morgan Heineken UK, Hereford, England Midland

DIPLOMA IN BREWING MODULE 3 Brewery Engineers AwardBenjamin Smith Surly Brewing Company, MN, USA International

DIPLOMA IN DISTILLING – BEST OVERALL CANDIDATE Worshipful Company of Distillers Scholarship AwardGeorgina Bell Scotch Malt Whisky Society, Edinburgh, Scotland Scottish

DIPLOMA IN DISTILLING MODULE 1 Simpsons Malt AwardTambudzai Makunde African Distillers, Harare, Zimbabwe Africa

DIPLOMA IN DISTILLING MODULE 2 Worshipful Company of Distillers Module 2Richard Cowley Diageo Global Supply, Edinburgh, Scotland Scottish

DIPLOMA IN DISTILLING MODULE 3 Briggs of Burton AwardRachel Mark Diageo Global Supply, Menstrie, Scotland Scottish

DIPLOMA IN PACKAGING MODULE 1 Quinn AwardPatrick Ongom Nile Breweries, Jinja, Uganda Africa

DIPLOMA IN PACKAGING MODULE 2 Micro Matic AwardKristin Wellman Craft Brewers Alliance, Woodinville, USA International

DIPLOMA IN PACKAGING MODULE 3 Brewery Engineers Award Not awarded in 2013GENERAL CERTIFICATE IN BREWING- Livery Worshipful Company of Brewers AwardBethan Parry Fuller Smith & Turner, London, England Southern - Non Member

GENERAL CERTIFICATE IN BREWING Worshipful Company of Brewers AwardGabe Mixon NC, USA (No Company) International - Non Member

GENERAL CERTIFICATE IN PACKAGING (BEER) Worshipful Company of Brewers AwardSandeep Kumar Skol Breweries, Sonepat, India Asia Pacific - Non Member

GENERAL CERTIFICATE IN PACKAGING (BEER) Worshipful Company of Brewers AwardVikrant Sharma Skol Breweries, Sonepat, India Asia Pacific - Non Member

GENERAL CERTIFICATE IN DISTILLING Scotch Whisky Association AwardPatrick Howley Celtic Brew, Co Westmeath, Ireland Irish - Non Member

FUNDAMENTALS OF DISTILLING Worshipful Company of Distillers Fundamentals AwardNaomi Laurie ON, Canada (No Company) International - IBD Member

International 5Asia Pacific 3Scotland 3Africa 2Ireland 2English 2

25.4 IBD Qualification Development Plan

ONGOING DEVELOPMENT

Brewers DiaryAwaiting return of first completed diaries for certification.

Distillers DiaryProposed – based upon the Fundamentals of Distilling notes.

General Certificate in Malting- GCM available to candidate for examination from November 2014. 47 candidates sitting exam next week.- Plan to continue work with MAGB towards a Diploma in Malting.

GCP / GCB- Review of learning material ongoing. GCB (mainstream brewery) complete, work started on incorporating

traditional cask beer into a GCB (craft brewery) version.- Work being identified for revisions to GCP material.- Agreed timescale is completion by November 2013 (GCB) for exam candidates May 2014.

GCB (Spanish)- Request from Africa that MCQ questions are reviewed / translated into Spanish for examination candidates.

Independent examiner has been appointed to assist with this on an ongoing exam by exam basis . PLAN TO EXAMINE GCB IN SPANISH IN MAY.

- Need to review availability / affordability of translation of Learning Material into Spanish (est. £15 – 25k).

GCB (Japanese)- Request from Japanese client that MCQ questions are reviewed / translated into Japanese for examination.- Client will translate Learning Material into Japanese at own expense.- Need to establish IBD and Questionmark software ability to use Japanese character sets.- Need to appoint independent examiner.

GCB (Portuguese)Request from Africa that MCQ questions only are reviewed / translated into Portuguese. HOLD.

Diploma in Brewing (French)- Diploma in Brewing modules 1 and 2 examined in French in June, results / pass marks largely in line with the

English version. - Plan to expand to include module 3 next year.- Similar requests for Spanish examination for future year using this same model.

Diploma in Packaging of Beer- Work ongoing with final set of revision notes for ‘new’ module 3, including new unit 3.1 Resource

Management. Currently being formatted for release to candidates (complete this week)- Huge uplift in candidate numbers for 2013/14 examination.

Diploma in Brewing- Funding for this review project has been approved from the Grant Fund. - David Quain / Steve Curtis to schedule first steps in early 2014. - Keen to establish a ‘best practice’ diploma module, which can be standardised across all of our Diploma

Qualifications. Mix of short / long answer questions (breadth / depth of syllabus) and review use of assignments at this level.

Distilling Qualifications- Further meeting held in May with Distilling BoE members, to progress with updates of distilling examinations

with view to supporting a Master Distiller qualification. Next meeting planned for late Novembero FD Learning Material with customers for final review before publishing - COMPLETEo GCD syllabus to be simplified to allow use of QuestionmarkTM system, and removal of candidate

‘options’ during the examination. – DRAFT SYLLABUS PREPARED FOR REVIEWo Diploma in Distilling syllabus to be re-worked; current format of separate options for cereal, molasses

and grape thought to be heavily biased towards cereal (barley through malting) and a common format proposed for future.

o Diploma in Packaging to include a Module two option for Spirits Packaging, preferred option to running a separate Diploma in Spirits Packaging qualification.

Beer Production Carbonated Soft Drinks Spirits (proposed)

Cider (proposed)o Master Distiller qualification to follow outline of successful M.Brew syllabus.

MD1 – Materials and Wort Production MD2 – Fermentation and Distillation MD3 – Maturation and Packaging of Spirits MD4 – Resource Management and Regulatory Compliance MD5 – Workplace Project.

FURTHER DEVELOPMENT POTENTIAL (NOT SCHEDULED)

General Certificate in Cider (GCC)- Further requests made from Brewing Industry for a General Certificate in Cidermaking (GCC). Likely to plan

start on this next year when additional resource is available. Potential examination in 2014 ( November?) Possible link-up with NACM as per General Certificate in Malting.

General Certificate in Brewery Engineering (GCE)- Requests made from Brewing Industry via the Brewery Engineers Association for a General Certificate in

Brewery Engineering. Likely to plan start on this early next year for potential examination in 2014 (November?)

- Draft syllabus has been prepared by the BEA; IBD has requested that it includes distillery operations if at all possible.

General Certificate in Soft Drinks - Meeting held with BSDA to wrap-up work done on providing the unit within our Diploma in Packaging. They

are very keen to work together with us to produce a stand-alone GCSD, based upon work already completed, for use with their member (UK) and internationally (IBD). LOW PRIORITY

25.5 Update on BOE Activities

The following updates can be reported since last Council:

Board of Examiners MeetingsPlan for the November meeting is a ‘Strategy style’ meeting with representatives from the key groups – GCB/P, Dip Brew, Dip Distil, Dip Pack, M.Brew – rather than the usual full attendance (now over 30 examiners and growing). Key outputs to be minuted and distributed to the team.

Meeting of full BoE planned for Monday 3rd through Wednesday 5th February 2014, including dinner on the Monday evening.

Candidate PreparationAn online ‘Candidate Welcome Pack’ for entrants to the IBD qualification program is in preparation. This will provide a holistic overview of ‘all things examinations’. This will include the required level of preparation and study, training and/or further reading, as well as highlighting the importance of mentoring and the Examiner’s Report for guidance. Draft has ben completed and will be reviewed at examiners strategy meeting on 11 th

November.

C13/26 PUBLICATIONS AND COMMUNICATIONS

26.1 B&DIThe BDI remains in good order. SC is gradually taking on more from Roger Putman. The advert for a Technical Officer will be in the November BDI with a view to recruiting in spring 2014 to ensure a good overlap between new resource and the retirement of RP in September 2014.

26.2 The Journal of the Institute of BrewingSummaryThe Journal is very healthy and there are a large number of papers under review. Work with Wiley as a publisher continues to go smoothly and there are no journal problems to report.

We have no lack of manuscripts. Ninety-five manuscripts have been submitted within the past year. We have many manuscripts coming from regions of the world where traditionally we have not received manuscripts and we continue to receive increasing numbers of manuscripts in the distilling area. The quality of the papers from these new global locations varies from outstanding science to very poor science. The written English is a serious problem with many of the manuscripts written by authors who struggle with the English language.

The number of downloads of our JIB papers continues to increase. This is due to the popularity of the 125 th Anniversary Reviews, the increasing numbers of research papers being published and the opportunity for the general brewing public to access the JIB archives.

Downloads have gone from 1,263 in May of 2012 to 26,948 in August of 2013. Wonderful news!

Here is typical feedback from one user “the ability to browse through papers dated well back (when many basic things were first reported) and then seeing the evolution of a certain topic/area makes it very much easier to get down to writing something new. So well done and thanks (from me and on behalf of the thousands of users)!”

JIB JournalMay-2012

Jun-2012

Aug-2012

Sep-2012

Oct-2012

Nov-2012

Feb-2013

Mar-2013

Apr-2013

May-2013

Aug-2013

Paper downloads 1,263 2,051 3,952 4,101 7,143 7,610 8,919 9,583 21,139 26,893 26,948

Status of upcoming issues Papers continue to be available with ‘online early view’ as soon as typeset. Volume 119 issue 3 has been mailed and volume 119 issue 4 is going to print shortly. Volume 120 Issue 1 is in the production phase.

Wiley is currently adding a ‘strapline’ under the main Journal name on the front cover to ensure that authors and readers know that the Journal also covers distilling topics (see layout below).

Journalof

The Institute of BrewingPublishing research from the brewing, distilling and fermentation industries

Changing the title of a Journal is a long and complicated process, with both advantages and disadvantages, so this ‘strapline’ is a simple measure that will help transmit the desired information until other possibilities are discussed further.

The potential to update the JIB to the JIBD was considered and debated. It was concluded that a move from JIB at this stage would not be prudent. Further information on the quantity of distilling related papers published is required. It was agreed that the ‘strapline’ is an appropriate action and that the word ‘malting’ could also be inserted. SJJ

C13/27 CONVENTIONS

27.1 Africa Section ConventionNo update available albeit that Mozambique remains the preferred venue.

27.2 Asia Pacific ConventionHCMC Vietnam 23rd to 28th March 2014Jeff Potter reported that momentum is now building. Sponsor and Exhibitor support is growing and delegate registration is now open with registrations taking place every day.

The technical programme has been published and well received.

27.3 WDSC 2014Glasgow – 8th to 12th September 2014, Glasgow Hilton.Keith Lugton confirmed that plans continued to develop well with excellent sponsor and exhibitor support. Abstract submissions have opened. A key note speaker to close the conference is required.

27.4 UK 2015This is progressing with an outline plan to be held in Harrogate in October 2015CMcC, KM, PC and Kl all agreed to be part of a steering group.

SJJ will arrange an initial meeting

27.5 YSS 2014No further information currently available.

Charlie Bamforth suggested that UCD could host in 2016 and will approach Ken Grossman for potential support.

C13/28 IBBS

28.1The latest quarterly meeting was held at Clarges Street on Friday 27th September 2013.The meeting followed our usual agenda: Finance; Grants; other Business.Finances remain healthy with the portfolio standing at just under £2 million. This is up marginally on the last quarter. This value is almost £200k above the same time last year (+11%). This just demonstrates the market recovery. Our income from these holdings remains at a similar level to last year.7 cases were considered. Sadly, one of our recipients has died since the last meeting. Our total grants for the quarter were £9,520, which included one exceptional item.The Joseph Rowntree report mentioned at our last Council meeting was circulated to the Committee.

Our current guidelines are £200 per week for a single person and £250 for a couple, remarkably close to these figures. This source will also give us guidance for cases falling outside these parameters It was agreed the Walter Finch Memorial Fund grants, named after the first Benevolent Society Chairman would continue at £200. This grant was originally given as a hamper, or its equivalent, at Christmas. This given to all current cases, be they in receipt of grants or just visited. The Committee has set up a sub group to look at how the IBBS can move forward. This will look primarily at how to increase the relevance of the IBBS to the Brewing and Distilling Industry personnel and their dependents.

The next IBBS meeting will be held on 5h December 2013 at Clarges Street.

C13/29 THREE YEAR PLAN

SJJ presented the draft three year plan and financial forecasts.

In general this was accepted as presented with the following comments:

The needs of older members should be factored in. From an educational perspective we should be aiming to become a ‘supplier of choice’ and to do this we need to

build credible connections with key decision makers and continually ‘add value’. Retention of membership – some objectives and actions should be added. Chartered Scientist provided us some momentum but how can we better communicate what CSCi is to non-

academic members.

C13/30 ANY OTHER BUSINESS

30.1 The Hon Treasurer suggested that the Byelaws be reviewed so that the notice period for General Meetings could be reduced to 14 days rather than 35 days

C13/31 DATES OF NEXT MEETINGS

Spring Council – Wednesday 30th April 2014, LondonSummer Council – Wednesday 25th June 2014, Burton (11.00)AGM - Wednesday 25th June 2014, Burton (16.00)SRC Meeting – Wednesday 25th June 2014, Burton (14.00)Fellows Dinner – Wednesday 25th June 2014, Burton (19.00)Autumn Council – Wednesday 5th November 2014 (11.00)Autumn SRC – Wednesday 5th November 2014 (14.30)