BCBusiness

(Top) CoURTESY oF phILLIpS BREWIng & MALTIng Co. Pimp That Ride N u m e r o l o g y by Melissa Edwards DECEMBER 2015 BCBusiness 15 For those not in the know, malting converts the starches in raw grains into sugars that can then be fermented by yeast dur- ing the brewing process. Barley is the grain most commonly used in brewing, but wheat, rye and oatmeal are also found in some recipes. Malted grains are also necessary for distilling, and provincial legislation around craft distilling gives a signi†cant tax break if all the ingredients come from B.C.—another impor- tant factor for Phillips. Phillips's malting facility took two years to build, from design through construction, and cost more than $1 million. It features two 50-tonne grain silos and four 20-tonne malt bins, producing 18-tonne batches of malt in about a week. Since 2014, the brewery has purchased about 340 tonnes of raw barley and wheat from local farmers, which represents about 30 per cent of its malt needs over the next 12 months. Eventually, Phillips hopes local farmers will grow enough grain for all of his brewing and distill- ing needs—but until then he will purchase grain from elsewhere to †ll the gap. "Malting plugs into so much of what we do," says Phillips, who is looking forward to tasting his own beer made with locally grown and malted barley. As for what drives him, he says it's more about a commitment to stick close to his roots than any †nancial consideration. "There's not a really good business argument for it. It wasn't a good business argument to start a brewery in the †rst place, either, but it's worked out." RAW TALENT Matt Phillips in front of his new Phillips Brewing malting facility Although Phillips Brewing does not release its revenues or production levels, the B.C. Liquor Distribution Board's most recent ˆnancial statements show the brewery sold more than in beer in 2013/14– which, accord- ing to one estimate, amounts to more than hectolitres of beer produced annually. $17,000,000 50,000 Drink Up That's the estimated after-tax cost, assuming no delays, of a 10-km trip with Ripe Rides, Vancouver's lat- est–and legal–taxi alternative. After a year of lobbying, bylaw amendments and vehicle shipment delays, the app-based ride company, co-founded by local tech entrepreneur otis perrick, has put its 20 Cadillac XTS cars on the road, just in time for the annual holiday taxi crunch (when plenty of partygoers will be happy to pay roughly twice the cost of a cab for a ready drive home). While Uber waits outside the gates and suburban taxis are still restricted by region–which Ripe isn't–the startup man- aged to win over B.C.'s public Transportation Board by arguing, with the backing of SFU and UBC professors, that its new, semi- luxury product will create demand, not compete for it. "I was on the stand for four hours, at the mercy of lawyers from the limo companies, the Vancouver Taxi Association and the suburban taxis," says perrick of last year's hearings. "We were able to prove the economic conditions are changing in Vancouver." Average number of taxis per 1,000 people 1.08 in Canadian cities 0.72 in Metro Vancouver 0.43 in the greater Victoria Area $53.12 for all of his brewing and distill ing needs—but until then he will brewery in the †rst place, either, but it's worked out." home). While Uber waits outside the gates and suburban taxis are still restricted by region–which Ripe isn't–the startup man

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