Case Study – Deya Brewing Company

Introduction

At an industry event at the end of 2022, John of DEYA Brewing Company met up with James from Ninkasi Rentals & Finance. DEYA were looking for a CO₂ solution and were hoping that Ninkasi, having recently teamed up with Dalum Beverage Equipment, could assist. Ninkasi were already a known and trusted supplier to DEYA and could handle the import and installation of the Dalum machine, minimising the risk and providing ongoing support to ensure a smooth transition from their current CO₂ supply across to the new Dalum equipment.

DEYA’s Sustainability Journey

DEYA has always been committed to the sustainable production of their beer. So committed in fact that they completed a company carbon footprint audit back in 2020. A full analysis of their CO₂ emissions was calculated, allowing the business a real insight into the impact that their brewery has on the environment and identifying areas that the business could focus on. DEYA has continued this audit every year, refining and improving their practices alongside publishing the report on their website.

This brings us back to 2022, where DEYA were in a difficult position – the business was growing and so was their CO₂ output. CO₂ is a byproduct of the fermentation process and is usually released into the atmosphere. CO₂ is then used for packaging, traditionally being bought in on the back of a lorry, producing yet more emissions. Surely there was a way to capture DEYA’s CO₂ output and use it in the brewery?

Making CO₂ Capture Viable for Craft Brewers

The issue that DEYA, alongside most craft brewers, face is that while CO₂ is produced during fermentation, being able to reuse it within the brewery is expensive, and historically only available to the very largest breweries in the market. That was until Dalum introduced their revolutionary CO₂ Capture Technology, making the solution available and financially feasible for craft-scale breweries.

Ninkasi and DEYA collaborated extensively, analyzing DEYA’s need for around 5 tonnes of CO₂ per month relative to their brewing volume. They developed a detailed plan covering pipework layouts, construction, safety, and consumption requirements. Ninkasi also factored in local climate conditions, such as weather’s impact on CO₂ delivery, while ensuring solutions aligned with DEYA’s environmental focus. Additionally, they considered the brewery’s operational patterns, shutdown periods, and CO₂ availability, devising a contingency plan to support DEYA’s environmental goals and future growth.

The Right Solution, Backed by Data

Ninkasi and DEYA agreed upon a Dalum 15kg/hr CO₂ recapture unit with a 7T vertical storage tank providing 280kg of CO₂ per hour. This would enable DEYA to collect 10.8 tonnes of CO₂ per month (over 200% of their requirement), hold six weeks of CO₂ usage on site, and bring CO₂ into the brewery 20 times faster than their average hourly consumption. While this may seem significantly over-engineered, Ninkasi collaborated closely with DEYA to understand their demand curve — not just today, but into the future as well.

Financial and Operational Impact

For most businesses, building a sustainable future is desirable, but this must be commercially viable to ensure that the business will have a future in this ever-competitive space. With the usage of 5 tonnes of CO₂ per month, at an average price of £950 per tonne (including delivery and rent on containers), DEYA was spending £57.5k per year on CO₂. With the cost of the project being £125k, the payback on the project would be just over two years, after which DEYA own the equipment and are saving around £57.5k per year on their CO₂ costs.

These savings are based on a steady market. As recently as 2022, CO₂ prices spiked, going from hundreds to thousands of pounds per tonne. Should this happen again, payback on the CO₂ recapture project would be months, not years. Alongside this, DEYA has ensured their ability to supply for the future — an essential part of their growth plans. Craft brewers often face challenges in securing supply at this stage, as global brands tend to dominate.

A Win for the Planet and the Business

Whether this is about protecting the planet, protecting the business’ pockets, or protecting future growth plans, it is clear that investing in this technology brings multiple benefits. DEYA has removed 130 tonnes of CO₂ from the atmosphere annually — the same as taking 92 cars off the road — as well as saving themselves around £20k a year and reducing their reliance on third-party CO₂ suppliers.

Get in Touch

If you would like more information on anything discussed above, or to arrange a free installation and suitability consultation, then just drop us a message!

Time to Take Control of Your Brewery’s CO₂ Supply

There’s another CO₂ shortage on the horizon. Ensus, one of the UK’s biggest bioethanol producers and a major supplier of food-grade CO₂, has warned it may shut down soon.

This all comes off the back of the new UK–US trade deal, which removed tariffs on ethanol imports. Cheaper US ethanol is now undercutting UK producers like Ensus and Vivergo, putting them under huge pressure. Here’s the story in The Grocer.

It’s not just one article, either. There have been multiple warnings. The Grocer reported that brewers are already calling it a “CO₂ gas crisis,” with rising costs and major concerns about availability. You can read that one here.

The Financial Times also covered the issue, pointing out that UK plants are being priced out by US imports. These plants supply a massive portion of the UK’s CO₂, so if they go offline, we’ll feel it. Here’s the FT coverage.

On top of that, there’s another layer of pressure. The UK is working to link its Emissions Trading System with the EU’s. That’s already driven up the price of carbon, and while it doesn’t directly set the price of CO₂ cylinders, it does show that carbon is becoming a lot more valuable. That FT article is worth a read too.

So in short, if you rely on food-grade CO₂, things could get tricky. Supply is looking shakier, prices are creeping up, and it’s getting harder to plan ahead.

 

Our CO₂ Capture System Can Help

Instead of relying on deliveries, you can capture the CO₂ your brewery already produces. Store it. Reuse it. Cut the risk and save money.

We offer a full CO₂ Capture service through Ninkasi. We handle everything—from first chat to final install. It’s about helping you cut your carbon footprint, lower your costs, and stay in control no matter what’s happening in the wider market.

The system we supply is compact (just 1m² footprint), quiet, fully automatic, and produces 99.99% pure food-grade CO₂. There’s no oil or chemical contact, and it runs cleanly and simply in the background.

 

What You Get with Ninkasi

We don’t just drop off the kit. We handle everything so you don’t have to.

  • Free site consultation
  • Full installation with our expert team managing the process
  • Ongoing servicing and maintenance
  • Support with compliance and certification

We’ll make sure it fits your site, runs smoothly, and keeps running.

 

Let’s Get Ahead of This

CO₂ capture used to be about sustainability. Now it’s also about protecting your margins, avoiding downtime, and staying ahead of supply chain issues. It just makes sense.

If you want to know whether CO₂ Capture is a good fit for your brewery, drop us a line. We’ll book in a free consultation and walk you through it.

Mainland Canning & Ninkasi

Ninkasi, a leading provider of fermentation vessel rental and financing solutions for the beverage industry, is pleased to announce its partnership with Mainland Canning. This collaboration aims to revolutionise beverage packaging capabilities across Europe by offering a comprehensive range of solutions tailored to meet the diverse needs of craft beverage producers.

The partnership brings together Ninkasi’s expertise in equipment rental and finance with Mainland Canning’s cutting-edge canning technology, providing European beverage producers with access to state-of-the-art equipment and unparalleled support services.

Ninkasi offers flexible options for a wide range of beverage equipment, including canning lines, fermentation vessels, and chilling units. With a commitment to empowering beverage producers to achieve their growth objectives, Ninkasi provides customised finance solutions designed to suit individual business needs.

Mainland Canning is renowned for its innovative canning solutions, offering a comprehensive range of canning equipment and services to beverage producers worldwide. With a focus on reliability, efficiency, and quality, Mainland Canning’s solutions enable beverage producers to streamline their packaging processes and deliver high-quality products to consumers.

Together, Ninkasi and Mainland Canning are poised to transform the beverage packaging landscape in Europe, providing craft beverage producers with the tools and support they need to succeed in today’s competitive market.

For more information about Ninkasi and Mainland Canning, please visit [Mainland Canning or Ninkasi].

End of Lease – Finance Lease

Recently we published an article about the main types of finance products available in the United Kingdom. You can read that article here.

We received a lot of positive feedback from the people who read the article. The main question they raised regarded the end of term treatment of the asset on a finance lease.

Therefore, we thought it would be useful to put together some information relating to how finance leases usually work at the end of term.

As you may expect, all finance companies have slightly different methods for treating the end of lease with their customers based on their own accounting principles, but the usual practices are listed below.

  • The hirer may enter a secondary hire period and continue the lease.
  • The hirer can be appointed as the ‘sales agent’ by the finance provider and is then able to sell the asset to a third party on their behalf.
  • The asset can be returned to the finance provider.

 

Continuation of Lease

This option usually has the lowest cost associated with it. As the asset has already had its capital outlay covered, continuing to lease an asset can be the most attractive option in terms of cash flow.

Your initial agreement should allow for your lease to continue at the end of the term, and also should show the value of continuing to do so. A finance company would normally only be looking to cover their admin costs at this stage, and all options would still be open to you in the future.

This is a great option if you are undecided about the next step for the business or the asset. You can effectively tread water for a period at your discretion, and then decide if you wish to take either of the other options or continue with the lease.

This is especially good if you potentially have a buyer lined up for a sale and need time to get the sale through. Or if you are looking at other options for equipment and wish to use the asset leased as a stop gap until you have decided.

 

Sales Agent Option

In our experience this is how the process is designed to work.

  • The finance provider appoints the lessee to act as a sales agent to dispose of the equipment on the lessor’s behalf.
  • The lessee sells the asset for Fair Market Value to an unconnected third party.
  • Most lessors will be able to introduce the lessee to an unconnected third party if needed.
  • Once the sale is complete, the hirer receives a pre-agreed percentage of the sales proceeds back from the lessor, often referred to as a “rebate of rentals”.

This is a great option if the lessee wants to be able to sell the equipment in the future and generate revenue from the proceeds. The lessee could alternatively agree their own commercial arrangement with the third party to take title if required.

 

Return

Returning the asset could have benefits for your business if you are looking to continually change your equipment, or if you have decided to take the business in a new direction and have no use for this equipment anymore.

On your agreement you will have the ability to return, however there could be costs involved in this option as you will be giving an asset back to a finance provider, who may not be able to handle it efficiently.

Ultimately the benefit of finance lease over Hire purchase is that generally the upfront capital required is a lot lower, and you have full flexibility and control with the asset at the end of the term.

 

We hope that you found this article useful, and as always if you have any questions, please just speak to us.

James, Paul, Theo, George, Oli and Liam

The Ninaksi Team

 

Some further reading and information (not affiliated or endorsed by Ninkasi Rentals) can be found by following the below links:

https://www.ukbusinessforums.co.uk/threads/finance-lease-for-van-ending-what-do-do.345456/

https://www.advanceleasing.co.uk/services/end-of-lease-services/

https://www.addleshawgoddard.com/en/insights/insights-briefings/2019/tax-and-structuring/vat-update-fmv-leases/

https://app.croneri.co.uk/feature-articles/buy-hp-finance-lease-or-operating-lease-introduction-accounting-and-tax

https://maxxia.co.uk/asset-finance/finance-lease/

https://www.bermans.co.uk/asset-finance-publications/article1/

Please note that all information contained within these articles is produced as summary of our experiences and does not constitute financial advice. Any information contained within third parties’ documents are not attributable to Ninaksi Rentals and must be read at your own discretion. Ninkasi rentals always advise that independent financial advice should be taken before signing any financial documents.

 

 

 

Ninkasi Christmas Countdown

We thought we’d do something a bit fun in the run up to Christmas and share what we’ve been enjoying over the festive period.

Day One – Theo is drinking Raspberry and Pomegranate Gin Liqueur from Bristol Distilling Co

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“I’m not the biggest beer drinker so glad that our equipment can be used by other drinks manufacturers. A great pink gin and can be mixed with Prosecco for a cheeky festive cocktail, can’t wait to try more from their range!”

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Favourite Christmas Song – All I Want for Christmas is You – Mariah Carey (obviously!)
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Day Two – George is drinking a Seriously Mixed Up Sour from Beatnikz in Manchester
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The guys at Beatnikz are really great and show a real passion for all of the beer that they brew. Their sours are both full bodied but also fruity, George says it tastes like drinking a big bag of grapes.
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Favourite Christmas Food – Pigs in Blankets
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Day Three – Paul’s dessert beer of choice is Milk Stout from Wiper & True.
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This beer is smooth, creamy and has so many wonderful flavours. Your mouth senses the chocolate and vanilla as it flows across your tongue. Not just a great beer, this is award winning stuff from the boys in Bristol.
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Favourite Christmas Present ever – Action Man with a parachute
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Day Four – Ollie is drinking one of the Christmas specials from BrewYork (Fairy tale of BrewYork).
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Ollie loves a great dark beer, and he thinks the guys at BrewYork brew some of the finest dark beers in the country – Ollie says it tastes like pudding in a cup.
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Are your presents before or after Christmas dinner? – Just continuous, they never stop, it’s all about the receiving.
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Day Five – James is drinking Crash from Salt!
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This is a regular beer in James’ house, he loves the fruity nature that the hops bring to the beer and the velvety mouthfeel that the beer creates. As you can see from the glassware, he’s a bit of a fan!
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Favourite Christmas Memory – Christmas’ in North Wales with my whole family as a kid
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Day Six – Liam is drinking Northbridge from Thornbridge, which is a 7.2% mountain IPA.
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It is hands down Liam’s all time favourite beer, it is smooth, easy drinking and tastes amazing.
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Favourite Christmas Movie – Die Hard

Christmas Brew Day

At Ninkasi today, dressed up in our Christmas jumpers and Santa hats, today we had our last review of 2020 ahead of the Christmas Holidays.

We also had the opportunity to play with one of our rental products, the Pilot Brew Kit, and create our very own Christmas beer – a 7.2% ‘Big Bold Stout’.

George is a brewer by trade and our operations manager. We had a Pilot Kit sitting in the warehouse, so we thought why not use it to bring some Christmas cheer to everyone and in the process, learn all about the trials and tribulations our customers go through when brewing themselves.

Have fun out there guys, and remember….. keeeeeeep brewing!!

The Ninkasi Elves

Types of Finance Agreements

A lot of our customers ask us how equipment finance works in the industry and the difference between the various finance options.

There are quite a lot of myths and misunderstanding, below is a simple guide which we hope will help you better understand the terms that finance companies use, and importantly the difference between them.

There are three main finance options offered in the United Kingdom, we have listed them below.

 

Operating Lease

With an operating lease, the lease will normally run for less than the economic life of the asset, as such the finance company (the lessor) will continue to have an economic interest in the asset. It is therefore expected that the asset will have a significant residual value at the end of the primary lease period.

The customer (lessee) gets to use the asset over the agreed lease/rental period, but the payments made do not cover the full economic life of the asset. As opposed to a finance lease where the full cost of the asset is charged over the life of the agreement.

An Operating lease is likely to also include other additional services, some examples of which would be realising procurement risks, the stocking of goods ‘off the shelf’, delivery/installation of items, insurance and replacing faulty goods from stock.

At the end of the lease period the lessee may have all/any of the following options:

  • Return the asset to the finance company
  • Continue to rent the asset in terms agreed in an extension period
  • Negotiate a custom deal with the finance company

With an Operating lease the assets remain on the lessor’s balance sheet and the rental is treated as a cost item in the lessee’s profit and loss.

A rental agreement is a form of Operating Lease.

 

Finance Lease

With a finance lease the finance provider (the lessor) buys a specific asset and rents it to the hirer (the lessee) for an agreed period.

The finance lease commits the lessee to make payments for the cost of the asset. As the asset is still owned by the finance company, the lessor manages the VAT and accounting principles for the agreement.

At the end of this period of leasing (usually called the primary hire period) there will normally be several possible options open to the hirer.

  • The hirer can sell the asset to a third party on behalf of the finance provider.
  • The asset can be returned to the finance provider
  • The hirer may enter a secondary hire period, typically for a “peppercorn” amount

Note – A lessor cannot give the lessee a documented right to purchase the asset at the end of the lease for a pre-determined value. This would change the lease into a hire purchase agreement changing the VAT and accounting treatment with negative cash flow implications for the lessee.

For more information about end of term options on a finance lease, please see this article.

 

Hire Purchase (sometimes called lease purchase)

The point of a hire purchase agreement is that the asset is on hire from the finance provider until the final payment, at which time the title passes to the hirer. As it is understood between both parties that title will pass to the hirer at the end of the initial agreement, a hire purchase agreement is treated as a purchase for tax purposes, accountancy, etc.

With a hire purchase agreement, the hirer is therefore required to pay all the VAT due on the asset purchase up front, in addition to any deposit required by the finance company.

The hirer must treat the asset as owned, so it must be shown on its balance sheet and depreciated in line with its usual accounting standards. Of course, this this has implications in terms of other borrowing or covenants that the bank may have on the business.

 

We hope that you found this article useful, and as always if you have any questions, please just speak to us.

 

James, Paul, Theo, George, Oli and Liam

The Ninkasi Team

 

You can read more about different finance products by following any of the links below:

https://www2.deloitte.com/uk/en/pages/audit/articles/ifrs-16-leases.html/

https://www.ukbusinessforums.co.uk/threads/finance-lease-for-van-ending-what-do-do.345456/

https://www.advanceleasing.co.uk/services/end-of-lease-services/

https://www.addleshawgoddard.com/en/insights/insights-briefings/2019/tax-and-structuring/vat-update-fmv-leases/

https://app.croneri.co.uk/feature-articles/buy-hp-finance-lease-or-operating-lease-introduction-accounting-and-taxhttps://maxxia.co.uk/asset-finance/finance-lease/

https://www.bermans.co.uk/asset-finance-publications/article1/

Please note that all information contained within these articles is produced as summary of our experiences and does not constitute financial advice. Any information contained within third parties’ documents are not attributable to Ninaksi Rentals and must be read at your own discretion. Ninkasi rentals always advise that independent financial advice should be taken before signing any financial documents.

CASE STUDY – Bristol Distilling Co

Bristol Distillery choose Ninkasi Tanks

Founded in early 2017 Bristol Distilling Co was created with the intention to set itself apart from an industry bloated with ‘on-topic’ acronyms and hyperbole created by a team of marketers in fancy offices. Bristol Distilling Co wanted to show from the drinks it creates, to the way it thinks and how it expresses itself – they were a different type of company.

In 2018 the distillery was borne using a 500L copper pot still custom built for the business in Nebraska. The first gin ‘77’ was bottled in May 2018 and was quickly awarded in the International Wine and Sprits competition, followed up by another award in the same competition in 2020 for the 77 Black, a cold brew coffee and vanilla liqueur.

Refusing to accept conventional wisdom that large retailer listings can only come after years of slow and painful growth, the business now has contracts with Europe’s largest grocer.

With the business continuing to support and grow locally as well as through retail, expansion and strategy became more and more prevalent to the business leaders. The directors of the company wanted to bring more of the production in house, however recognised that growing the business through traditional methods was both capital intensive and slow.

So Bristol Distilling Co. reached out to Ninkasi rentals, and started to rent Fermentation Tanks to allow for their kegged Gin and Tonic to be blended under their expert tutelage.

From then it has been a match made in heaven with Ninkasi able to provide the equipment and support which allows Bristol Distilling Co. the room to grow organically without the worry of capital being tied up in assets which don’t drive a return.

What Bristol Distilling Say:

“Excellent service from the team at Ninkasi. They were able to understand our needs, support us through the decision-making process, no hard sell, no hassle, just an honest company trying to help another. When the tank arrived they had it installed where we wanted it, no mess, no fuss – just great service – and then when we noticed a small leak on one of the valves, they were down the next day and sorted everything out. We judge businesses on the way they are after a sale not before it, and Ninkasi have been great to us. We are also a small company with big ambitions and I think that entrepreneurial attitude and willingness to support and help your customers shines through everything that Ninkasi does – all, in all, very very happy to recommend them and their service to anyone out there that is thinking of tanks for their business.”

Jake Black – Director – Bristol Distilling Co.

“As Jake says the guys at Ninkasi have just been great, they always respond when you ask a question and when we needed support during the Covid pandemic, they didn’t hesitate. They are easy to talk if you have a question on invoicing or something similar – but to be honest the best thing about them is that you don’t even know that they are there. They don’t constantly email you or push like other companies, they just sit in the background, and if we need them, they are always there to help.”

Clare Neath – Director – Bristol Distilling Co.

 

 

Pilot Brew Kit – Our Thoughts

We asked George (our resident brewer), why he choose the Sabco pilot Kit to work with.

This is what he had to say:

“The Ninkasi Pilot kit is a fusion of Sabco’s excellent BrewMagic, and Ninkasi’s knowledge of the UK craft brewing sector. Here are some of my favourite things about the equipment;

  1. The brewhouse is built upon a series of ¾” Tri clamp stainless pipes. Consigning poor-quality hoses to a thing of the past.
  2. The Brewmagic pilot kit can be run on different power feed inputs, making it a suitable for a wide range of breweries.
  3. The built-in heat exchanger allows you to re-use your hot water for your next brew. So it allows you to complete multiple brews back to back.
  4. The whole system is controlled by a handy touch screen.
  5. You can manage the heat and pump on each vessel, and easily set the controller to manage recipe times. This gives you the flexibility to brew how you brew, whether that’s step mashing through the RIMS system, hitting the perfect strike and sparge temperature or getting the perfect rolling boil.
  6. This gives you true repeatability whether your prototyping new styles or recreating a winning formula.
  7. Ninkasi have added flexibility to the system, allowing wort to circulate through the mash resulting in a good vorlauf.
  8. By adding a back plate and places for your brewing equipment to be stored, Ninkasi have made the brewers life slightly easier.

When I’ve brewed on the kit I have found it to be very user friendly. I enjoy the control that I get, and the fact that everything I need is easily accessible. My favourite thing about brewing on this kit is the temperature control elements, this is a game changer for pilot breweries.

Would I have one? Hell yes! But you’ll have to find me room to store it!”

So there you have it straight from our brewer himself, what the Pilot Kit is, what it does…. and importantly, why he likes it.

Keeeeeeeep brewing

The Ninaksi Team