The Institute of Brewing & Distilling

THE INSTITUTE OF BREWING & DISTILLING

A MEETING OF THE COUNCIL WAS HELD ATTHE DIAGEO OFFICE, EDINBURGH

ON WEDNESDAY 6TH NOVEMBER2013 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

C13/21WELCOME

The President welcomed Councilors to the Council meeting.

C13/22MINUTES 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.

C13/23MEMBERSHIP MATTERS

23.1–23.6attached 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.

23.7Fellowship Nominations

Six nominations for Fellowship had been received.

Christopher HughesSouthern
Roger RymanSouthern

Ian BearparkGNS

Ian HornseySouthern

Xiang YinInternational

Reginald AguScottish

These nominations were accepted unanimously by Council

23.8Obituary

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

Robert C CostaAsia Pacific
Otto S J HaagAsia Pacific
John G SmartAsia Pacific
John W M CrispSouthern
Michael A FrostSouthern

23.9Nominations for Deputy President

No new nominations received

23.10Corporate membership

SJJ to review the need for the continuation of this categorySJJ

23.11 Membership fees

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

C13/24FINANCE AND GOVERNANCE

24.12013Management 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.

24.22014 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

24.3Other 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.

24.4Appointment of Auditors

The Treasurer briefed Council on the process to appoint auditors. Along 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 11th 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

24.5Governance

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.

24.6Clarges 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 planSJJ

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

C13/25EXAMINATIONS AND TRAINING

25.1Update 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.

25.2Update 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.

25.3Examinations 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 CANDIDATEJames S Hough Award

Alan DempseyDiageo Global Supply, Dublin, IrelandIrish

DIPLOMA IN BREWING – BEST OVERALL CANDIDATEJohn S Ford Award

Benjamin SmithSurly Brewing Company, MN, USAInternational

DIPLOMA IN BREWING MODULE 1Crisp Malting Award

Jason LappeCarlton & United Breweries, Queensland, AustraliaAsia Pacific

DIPLOMA IN BREWING MODULE 1Crisp Malting Award

Agnieszka MorganHeineken UK, Hereford, EnglandMidland

DIPLOMA IN BREWING MODULE 3Brewery Engineers Award

Benjamin SmithSurly Brewing Company, MN, USAInternational

DIPLOMA IN DISTILLING – BEST OVERALL CANDIDATEWorshipful Company of Distillers Scholarship Award

Georgina BellScotch Malt Whisky Society, Edinburgh, ScotlandScottish

DIPLOMA IN DISTILLING MODULE 1Simpsons Malt Award

Tambudzai MakundeAfrican Distillers, Harare, ZimbabweAfrica

DIPLOMA IN DISTILLING MODULE 2Worshipful Company of Distillers Module 2

Richard CowleyDiageo Global Supply, Edinburgh, ScotlandScottish

DIPLOMA IN DISTILLING MODULE 3Briggs of Burton Award

RachelMarkDiageo Global Supply, Menstrie, ScotlandScottish

DIPLOMA IN PACKAGING MODULE 1Quinn Award

PatrickOngomNile Breweries, Jinja, UgandaAfrica

DIPLOMA IN PACKAGING MODULE 2Micro Matic Award

Kristin WellmanCraft Brewers Alliance, Woodinville, USAInternational

DIPLOMA IN PACKAGING MODULE 3Brewery Engineers AwardNot awarded in 2013

GENERAL CERTIFICATE IN BREWING- LiveryWorshipful Company of Brewers Award

BethanParryFuller Smith & Turner, London, EnglandSouthern - Non Member

GENERAL CERTIFICATE IN BREWINGWorshipful Company of Brewers Award

GabeMixonNC, USA (No Company)International - Non Member

GENERAL CERTIFICATE IN PACKAGING (BEER)Worshipful Company of Brewers Award

Sandeep KumarSkol Breweries, Sonepat, IndiaAsia Pacific - Non Member

GENERAL CERTIFICATE IN PACKAGING (BEER)Worshipful Company of Brewers Award

VikrantSharmaSkol Breweries, Sonepat, IndiaAsia Pacific - Non Member

GENERAL CERTIFICATE IN DISTILLINGScotch Whisky Association Award

PatrickHowleyCeltic Brew, Co Westmeath, IrelandIrish - Non Member

FUNDAMENTALS OF DISTILLINGWorshipful Company of Distillers Fundamentals Award

NaomiLaurieON, Canada (No Company)International - IBD Member

International5

Asia Pacific3

Scotland3

Africa2

Ireland2

English2

25.4IBD Qualification Development Plan

ONGOING DEVELOPMENT

Brewers Diary

Awaiting return of first completed diaries for certification.

Distillers Diary

Proposed – 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 November

• FD Learning Material with customers for final review before publishing - COMPLETE
• GCD syllabus to be simplified to allow use of QuestionmarkTM system, and removal of candidate ‘options’ during the examination. – DRAFT SYLLABUS PREPARED FOR REVIEW
• 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.
• 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)

• 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

25.5Update on BOE Activities

The following updates can be reported since last Council:

Board of Examiners Meetings

Plan 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 Preparation

An 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 11th November.