Sanghaya IncMark Robert Bryan Peralta

Maria Josefina GonzalesWarren Jay Gamay

Presents

Lambanog Wine Manufacturing

Introduction

Coconut wine is very popular in the Philippines and many people often refer to coconut wine as “tuba”. It consists of pure sap, with no bark mixed in, and it is usually milky white in color or sometimes it will have no color at all. Unlike most wines this wine is made to drink when it is fresh because it turns sour very quickly. The longer that you let this wine ferment the stronger that it will become. If a more potent wine is desired then often times it can be distilled. This will bring out a more desired stronger drink called coconut vodka or “lambanog”. Tuba is at its finest during the first day, up to the third day when it was initially gathered. Usually after the fifth day, bacteria steps in and the tuba turns into vinegar. Many people like to let their coconut wine age about a year and then drink it while some people prefer to let it age for three to five years because if you can wait that long it will usually have excellent taste to it.

A good thing about coconut wine is that it is produced in a natural process, and thus it is chemical free. It is said that only tough men can withstand the effect of tuba that affects men’s senses and sanity.  Filipinos consider tuba as a type of hard drink. Tuba, extracted from a coconut tree has been popularly called the “Lazy man’s crop” or as they say the “Lazy man’s drink” which are very abundant in the Philippines for it is a tropical country. 

Coconut wine is among the best wines in the world which provides multiple wine benefits that your body can get. Drinking coconut wine is good for the health however extreme consumption of it may cause several health risks. It is important that every time you drink coconut wine, you drink moderately. If anybody offers you a tuba drink or coconut wine, you should try it. It is a refreshing beverage that you surely will like and feel the warm hospitality of Filipinos.

What is Coconut Wine?Some coconut farmers in the Philippines make use of coconut sap for Coconut Wine making, which is called "Tuba or Bahalina".The selection of names for Coconut Wine in the Philippines varies from the region it was produced. In Luzon, it is mostly called Lambanog where as in Visayas it is called as Tuba. The primary difference is the color and the mixture of the Coconut Wine. Tuba is the product of mixing Barok (A reddish color bark of mangrove tree) with the coconut sap, which in turn make Tuba red in color and sometimes called the Coconut Red Wine. On the other hand, Lambanog, sometimes known as Coconut Vodka - is the pure coconut sap (without Barok mix) almost colorless or milky white in color.

Vino de Coco Company ProfileDJCRATER, Inc. dba: Vino de Coco was founded by George Vacal Paraliza and Tila Paraliza. This couple shared a vision to create a legacy for their family. Born in La Paz, Leyte, and Eastern Visayas and educated in Cebu City, Central Visayas, Mr. Paraliza retired from a successful career in the oil industry and hobby wine making in the United States. His dream was to someday return to his homeland the Philippines and apply his craft to develop the

world’s finest quality coconut wine to be enjoyed by wine connoisseurs globally and to place the Philippines on the map of the wine industry.

Vino de Coco is crafted using the fresh sap from the flower of the coconut tree, an organic and naturally delicious nectar. Selected local farmers use the educational guidelines of responsible farming developed by the Philippine Coconut Authority (PCA) and the Department of Science and Technology (DOST) to harvest the coconut sap. Strict controls on how raw material is received are implemented to ensure the freshest quality from the start of the process to completion.

The Winery was first established August of 2010 in Tacloban City, Leyte and renamed Vino de Coco in April of 2011. Mr. Paraliza continues perfecting his method of producing Vino de Coco. There are three varieties of this smooth exotic coconut wine: Dry Red, Sweet Red and Sweet White. With national acceptance, this could become the Philippine’s National Drink.

The wine is export quality and FDA approved. Through entries with Local and International Trade Shows sponsored by the Department of Agriculture, Department of Trade and Industry (DTI) and his sons’ tireless efforts to bring samples to various markets,  Vino de Coco is anticipating export distribution in the coming year.

Vino de Coco Products

Vino de Coco is a wine endorsed by various government departments as the “Official Wine”

of Eastern Visayas!  The Vacal brand brings you the highest quality of Vino de Coco you can

find anywhere.  Made from the sweet sap of the coconut blossom, Vacal Vino de Coco has

three distinct varietals to enjoy.  Tagay!

Dry Red Coconut Wine

Hearts get warmer.  Vacal Vino de Coco’s original varietal, Dry Red, offers a smooth entry

with a delightful finish.  Preferred amongst most wine enthusiasts, the Dry Red is often

described as a pleasant heart warmer.

Sweet Red Coconut Wine

Smiles get wider.  Vacal Vino de Coco’s succeeding varietal, Sweet Red, provides a semi-

sweet version of the original Dry Red.  The Sweet Red delivers the right amount of

sweetness that will make your smile nice and wide.

Sweet White Coconut Wine

Stories get shared!  The newest varietal, Vacal Vino de Coco’s Sweet White, brings a crisp

and refreshing addition to our lineup.  Sure to please, this white wine is sweet and flowery

evoking a positive feeling that makes you want to share fun stories.

Manufacturing Process

This section will tell how the Lambanog Manufacturing works. Collecting

Coconut sap is the liquid tapped from the unopened flower (spandex) of coconut tree. The sap when collected must be pearly white in color and sweet in taste and has the characteristic coconut sap smell.

ReceivingCoconut sap packed in carboys (20-L capacity) is received at the production area.

Filtration of coconut sapThe coconut sap is filtered and manually transferred to the fermenting vats.

FermentingCoconut sap is allowed to ferment in large plastic drums. Fermentation period takes about 3-4 days to produce an alcohol content of approximately 7-8%

Transferring and HoldingThe alcoholic liquor is transferred to a holding tank that is usually located near or beside the distillation area. The alcoholic liquor stays in the holding tank until distillation set-up is ready for the next batch.

DistillationThe traditional process of distillation is the batch type pot-still process with rice hull or wood as source of fuel. The alcoholic liquor is heated. The initial distillate (head or ‘bating’) which contains the undesired methanol and other components is separated and set aside for other purposes. It has a high proof of content (concentration: 110 proof). The succeeding distillates that are lambanog have lower alcohol content. However, as distillation proceeds, the desired alcohol content of 80-90 proof must be achieved. The distiller uses an alcohol meter (hydrometer) to check the alcohol content. It varies from 80 to 90 proof.

The remaining liquor in the distillation vat, which is the tail, is discarded. It is composed of high alcohol like fusil oil that boils at higher temperature.

Packaging The product is transferred to containers (HDPE-high density polyethylene) in full capacity for delivery or storage.

StoringThe finished products will be stored in the storage room where they are stored in 20-25 degrees Celsius.

Manufacturing Process Flowchart

Filtration of the coconut sap

Storing

Collecting Packaging

DistillationReceiving

Transferring and Holding

Fermenting(2-4 days)

Production Needs

The production needs describes the facilities, the equipment, the utilities, and the waste disposable that will be using in manufacturing of lambanog.

FacilitiesBelow are the facilities that would be established in completing the normal operating cycle of the proposed business.

Facilities Description

Production AreaThis is the area where the fermentation and distillation process of making Lambanog is done.

Storage RoomThis is the area where the finished products are stored in 20-25 ºC.

OfficeThis is where the transactions of the business are being recorded. This is also the place where the records of the business were kept.

Establishment Lay-outThis describes the floor plan of the Lambanog Manufacturing Plant.

Waste DisposalThe business shall have a proper waste disposal in order to maintain a clean healthy

environment. The main wastes that will eventually produce by the production area are the

waste materials from fermentation and distillation process. The waste will be disposed in a

certain area since it is not harmful because it is a biodegradable waste.

Utilities

To make the business operational, it will have the following utilities and with its

corresponding description and estimated cost per month. The estimated total of the

utilities expense would be Php 11, 300.00

List of Factory Utilities

Utility Description Estimated CostWater It is a necessity of the

business for sanitary purposes (washing and cleaning of the equipments and etc.)

Php 3,800.00 per month

Electricity It is a necessity of the business to start its operation. Electricity will provide light to the whole area especially at night (for security purposes). Furthermore, it is used to generate the equipments use in making lambanog.

Php 6,000.00 per month

Heat It is used in cooking the coconut sap for fermentation.

Php 1,500.00 per month

TOTAL Php 11,300.00 per month

Raw MaterialsRaw Material Quantity Cost

Coconut Sap 80 gallons/ day Php 227.30 per gallon

Empty Bottles 240 bottles/ day Php 20.00 each

Bottle Cap 240 caps/ day Php 1.00 each

Labels 240 labels/ day Php 0.75 each

Depreciation of Factory Equipments

*Factory Equipments are depreciated using the straight line method.

Depreciation of Factory Building

Factory Building Useful life (in years)

Depreciation/year

Depreciation/month

P 1,500,000.00 20 P 75,000.00 P 6,250.00

*Factory Building are depreciated using the straight line method.

Equipments Cost Useful life (in years)

Depreciation/year

Depreciation/month

Alcohol hydrometer P2,250.

00 8 P 281.00 P 23.44

Distillation Equipment 300,000.0

0 15 20,000.00 1,666.67

Empty Containers 2,100.0

0 10 210.00 17.50

Strainer 150.0

0 8 19.00 1.56

Graduated Cylinder 900.0

0 10 90.00 7.50

Copper pot 5,990.0

0 15 437.50 33.28

Generator 60,000.

00 20 3,000.00 250.00

Aircon 105,000.0

0 20 5,250.00 437.50

Total     P 29,249.50 P 2,437.45

Equipments

Equipment Quantity Cost Description

Production Based Equipments

Alcohol Hydrometer

3 pcs Php 750.00 each(Php 2,250.00)

Alcoholmeters are for reading alcohol content in distilled spirits only. 12" (30cm) Very accurate Alcoholmeter. Professional grade. 0 - 200 Proof and 0-100% abv reading.

Distillation Equipment

2 pc. Php150,000.00each(Php 300,000.00)

Used for distilling the fermented coco sap.

Empty Containers 30 pcs. Php 70.00 each(Php 2,100.00)

This is where the collected sap is stored for about 2-4 days.

Strainer 5 pcs. Php 30.00 each(Php 150.00)

This is used to filter the coconut sap.

Graduated Cylinder 3 pcs. Php 300 each(Php 900.00)

This is where the distilled coconut sap is measured after.

Cutted Bamboo 900 pcs. Php 3.00 each(Php 2,700.00)

This is where the sap is collected while it is still in the coconut tree.

Copper Pot 2 pcs. Php 2,995.00each(Php 5,990.00)

Used for fermentation process.

Administrative Equipment

Computer Set 3 pcs. Php 21,000.00each(Php 63,000.00)

Used for keeping records of the business and also for communication.

Telephone 2 pcs. Php 1,189.00 each(Php 2,378.00)

Used for communication.

Office Supplies Php 1,049.00 Used for office works in the flow of the business.

Furniture & Fixtures

Php 28,350.00each Used for the accommodation of guests and people inside the office.

Air Condition 3 pcs. Php 35,000.00each(Php 105,000.00)

Used for the convenience of the emlpoyees in the office and in the conference room and in the storage area.

Generator 1 pc. Php 60,000.00 Used for the continuation of production in case of electricity loss or black-out.

Total Php 573,867.00

Personnel and their Duties and Responsibilities

Position Duties and Responsibilities

Production Supervisor Supervises production and quality control.

Time-Keeper

Records the time spent by the employees in the factory.

Responsible for completing and maintaining clock cards, time tickets, and production report.

Warehouse Clerk Stores all finished products, raw materials, and supplies.

Schedules delivery of goods to buyers.

Transporter Does loading and unloading of raw materials and

finished products. Does the delivery of the product. Transfer the finished products to the storage room.

Mangagarit/ Mananaggot(tappers)

Does the climbing/collection of coconut from trees Transferring of coconut sap to containers

Tagaluto(Distiller)

Manages the fermentation and distilling process Skims the upper layer of tuba of floating impurities Maintains the cleanliness of the machinery

Bottler/Packer/Cleaner

Bottles the lambanog from distillation Packs bottles in boxes Checks final product

Security Guard Keeps the vicinity safe. Safe guards the properties, employees and vicinities

Janitor Maintain the cleanliness of the surroundings

Personnel Salary Structure

Position Minimum Rate Total (PhP)

Production Supervisor Php 62.50/hr Php 10,000.00

Timekeeper Php 50.00/hr Php 8,000.00

Warehouse Clerk Php 41.67/hr Php 6,667.20

(Tagaluto, Bottler, Packer/Cleaner) Php 33.33/hr Php 5,332.80

Transporter Php 30.00/hr Php 4,800.00

Manggagarit Php 250.00/day Php 5,000.00

Security Guard Php 30.00/hr Php 4,800.00

Janitor Php 30.00/hr Php 4,800.00

The minimum wage in Tacloban, Leyte is Php 241.00 per day relating to agricultural manufacturing firms.

The mangagarit/manananggot climbs the trees without protective harnesses to prune the coconut flowers before they turn into fruits. The sap is allowed to drip into bamboo receptacles. Like high-wire performers, the tappers navigate a network of bamboo bridges connecting the trees nine metres (30 feet) above the ground, with blades on their waists and bags tightly strapped to their shoulders. Pruning is mostly done in the afternoon, and the climbers return at dawn to collect the liquid. Farmhands then deliver the sap to the distillery in big plastic containers that are carried behind their backs or on pack horses.

The manananggot takes charge of periodically cleaning the farm and the palms, prepares the palms for tapping, trains the spadices to yield sap, taps daily approximately 110 spadices, and delivers the collected sap to the fermentation and distillery plant. The distiller or tagaluto who works seven hours daily supervises the deposition of the sap in the fermentation contatiners, manages the fermentation of the sap, gathers fuel for the distillery, distills the tuba, and packs the lambanog. The hauler delivers the lambanog from the production area to the entrepreneur’s house and then to the customers.

Allocation of Direct Materials

Direct Materials Cost

Filtration Department P 418,232.00

Distillation Department -

Packaging Department 120,060.00

Storage Department -

Total P 538,292.00

Allocation of Direct Labor

Direct Labor Cost

Filtration Department P 23,000.00

Distillation Department 18,398.16

Packaging Department 18,398.16

Storage Department 5,520.00

Total P 65,316.32

Allocation of Factory Overhead

Factory OverheadFiltration

DepartmentDistillation Department

Packaging Department

Storage Department Total

Indirect Labor P21,274.50 P 20,632.50 P13,716.25 P 20,815.23 P 76,438.48Utilities 1,695.00 2,825.00 1,130.00 5,650.00 11,300.00Depreciation - Factory bldg. 937.50 3,125.00 625.00 1,562.50 6,250.00Depreciation - Factory Equipment 114.84 1,752.61 70.00 500.00 2,437.45Repair and Maintenance 1,882.275 6,274.25 1,254.85 3,137.125 12,548.50Total P 25,904.115 P 34,609.36 P 16,796.10 P 31,664.855 P 108,974.43

Factory Overhead Summary

Factory Overhead Cost

Indirect labor P 76,438.48

Utilities 11,300.00

Depreciation - Factory Building 6,250.00

Depreciation - Factory Equipment 2,437.45

Repair and maintenance 12,548.5

Total P 108,974.43

Summary of Indirect Labor

Indirect Labor Position Classification Regular Pay Over

Time Pay Total Cost

Miguel, Gale Cleaner Indirect P6,132.72   P6,132.72

Kane, Sadie Cleaner Indirect 6,066.06 P34

9.72 6,415.78

McKinley, Jack Security Guard Indirect 5,520.00

- 5,520.00

Goinzalez, William Security Guard Indirect 5,520.00   5,520.00

Rodondon, Jaime Security Guard Indirect 5,520.00   5,520.00

Gamay, Warren Jay Warehouse Clerk Indirect 7,667.28

- 7,667.28

Gonzales, Maria Josefina Time Keeper Indirect 9,200.00

- 9,200.00

Peralta, Mark Robert Bryan Production Supervisor Indirect 11,500.00

- 11,500.00

Quasimodo, Jhon Janitor Indirect 5,520.00 5,520.00

Employer's Share         13,442.70

Total   P76,438.48

Sanghaya Inc. Cost of Production Report

For The Month of July 2015

Filtration Department Materials Conversion Cost

Quantity Schedule Actual WD EP WD EP Units Started 8364.64 Units completed and transferred 7528.18 100% 7528.18 100% 7528.18 Units in process, end 836.464 100% 836.46 60% 501.88

8364.64 8364.64 8030.05

Cost charged to the department Cost added in the dept

Materials P418,23

2.00 P 50.00

Labor 23,000.

00 2.86

Overhead 25,904.

12 3.23

Total added P467,13

6.12 P 56.09 Total cost to be accounted for

Cost accounted for as follows: Completed and transferred P 422,256.41 In process, end

Materials P41,823.2

0

Labor 1,437.

50

Overhead 1,619.

01 44,879.71 Total cost as accounted for P 467,136.12

Distillation Department Materials Conversion Cost

Quantity Schedule Actual WD EP WD EP Units received 7528.18 Units Completed and trasferred 6022.54 100% 6022.54 100% 6022.54 Units in process, end 1505.64   1505.64 80% 1204.51

7528.18 7528.18 7227.05

Cost charged to department Cost from preceding department

P422,256.41 P 56.09

Cost added in the department Materials -

Labor P18,39

8.16 P 2.55

Overhead 34,609.

36 4.79

Total added P53,00

7.52 P 7.33

Total cost as accounted for P475,263.9

3 P 63.42

Cost accounted for as follows Completed and transferred P 381,978.06 In process, end Cost from preceding Materials P 84,451.28

Labor 3,066.

36

Overhead 5,768.

23 93,285.87 Total cost as accounted for P475,263.93

Packaging Department

Materials Conversion Cost

Quantity Schedule Actual WD EP WD EP

Units received 6022.54

Units Completed 4215.78 100%4215.7

8 100%4215.7

8

Units in process, end 1806.76 100%1806.7

6 90%1626.0

9

6022.546022.5

45841.8

6

Cost charged to department

Cost from preceding department P 381,978.06 P 63.42

Cost added in the department

Materials P 120,060.00 P 19.94

Labor 18,398.16 3.1

5

Overhead 16,796.10 2.8

8

Total added P 155,254.26 P 25.96

Total cost as accounted for P 537,232.32 P 89.38

Cost accounted for as follows

Completed and transferred P376,824.56

In process, end

Cost from preceding

Materials P 36,018.00

Labor 5,121.14

Overhead 4,675.20 45,814.3

4

Total cost as accounted for P422,638.90

Storage Department

Materials Conversion Cost

Quantity Schedule Actual WD EP WD EP

Units received 4215.78

Units Completed 2951.04 100% 2951.04 100% 2951.04

Units in process, end 1264.73 100% 1264.73 90% 1138.26

4215.78 4215.78 4089.31

Cost charged to department

Cost from preceding department P 376,824.56 P 89.38

Cost added in the department

Materials - -

Labor - -

Overhead - -

Total added - -

Total cost as accounted for P 376,824.56 P 89.38

Cost accounted for as follows

Completed and transferred P 263,777.19

In process, end

Cost from preceding

Materials -

Labor -

Overhead - -

Total cost as accounted for P263,777.19

Copper Pot

Generator

Empty Container

Alcohol Hydrometer

Strainer

Distillation Equipment

Air Conditioner

Graduated Cylinder