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RUM, VERMOUTH AND VODKA



PRODUCT DESCRIPTION AND APPLICATION

Rum is alcoholic beverage produced by the distillation of various fermented cane sugar products. The most common mixtures used in making rum consist of molasses and water or sugar and water. Another type of rum is made by fermenting a mixture of the scum formed when the raw juice of the sugarcane is heated with molasses, water, and “dunder,” the residue left after the refining of sugar.

Vermouth is aromatized wine consisting of a combination of 4 types of natural ingredients: wine, botanicals, sugar and alcohol.

Vodka, distilled alcoholic beverage known traditionally as the Russian national drink. It is distilled usually from a wheat mash and sold in concentrations of 40 percent alcohol, or 80 proofs, and of 50 percent alcohol, or 100 proofs.

 

MARKET STUDY

The annual average level of import during the period 1998-2000 was about 28,113 liters.  This has increased to an annual average of 94,137 liters during the period 2001-2003, which is more than three times higher than the previous three years average.   The annual average quantity imported in the last three recent years, i.e., 2004-2006 has shown a slight increase and reached to 94,642 liters.

 

RAW MATERIALS

Grains especially wheat is the basic raw material as a source of carbohydrate for the fermentation. Wheat is grown in most parts of the country mainly in Oromia, SNNPRS, and Amhara regional states by state farms and peasants.  Malt can be obtained from Assela Malt Factory while yeast and flavouring will be imported. Bottle and label can be obtained from Addis Ababa Bottle and Glass S. Co. and from the printing presses operating in the city.

 

TECHNOLOGY

§         Mash preparation

§         Keeping the mash sterile

§         Vodka fermentation

§         Distillation

§         Liquefying the alcohol gases

§         Filtration

§         Packing and labeling

§         Environment

 

INVESTEMENT

The total investment requirement is estimated at Birr 14.29 million, out of which Birr 8  million is required for plant and machinery. The plant will create employment opportunities for 34  persons.

The project is financially viable with an internal rate of return (IRR) of   19.26 % and a net present value (NPV) of Birr 7.68 million, discounted at 8.5%.

 

 

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