According to flavor characteristics, liquor (Baijiu) can be divided into three main types: Qing-flavor liquor, Luzhou-flavor liquor, and Maotai-flavor liquor. Luzhou-flavor liquor is the most popular and best-selling liquor among these types, accounting for more than 70% of all Chinese liquor production. Ethyl caproate, as the characteristic flavor of Luzhou-flavor liquor, presents an apple-like taste and determines the quality of Luzhou-flavor liquor.
In the traditional fermentation process of Luzhou-flavor liquor, it is mainly produced in the pit mud by aroma-producing yeast, bacteria, and mold in the later stage of fermentation. However, the formal brewing process is not only long and expensive but also very complicated and wastes a lot of grain.
We realize that the production efficiency of ethyl caproate is low, the production procedure is cumbersome, and the production cost is high, therefore we aim to solve this problem by using gene-edited yeast to synthesize ethyl caproate. It will not only improves production efficiency but also reduces grain consumption. In addition, we will further develop a new liquor with more apple flavor by utilizing our gene-edited yeast, and we believe this liquor will be more attractive to young people.
Our company will focus on using yeast to produce more ethyl caproate during the liquor fermentation, which makes our liquor the aroma of apple, and we will cooperate with the brewing factory to produce it.
Most of the target customers of liquor in the market are almost middle-aged or older people. High-end liquor companies, such as Moutai and Wuliangye, almost monopolize the liquor market. High cost and price caused by brand effect and traditional fermentation production make high-quality liquor not affordable for ordinary people. By utilizing our gene-edited yeast, we could produce more ethyl caproate for our liquor without costing many grains compared to traditional fermentation procedures. All in all, the price of our liquor will be more attractive than those high-end liquor but with well flavor and quality, even better. Per suggestion from Dr. Liu, rather than competing with those high-end companies on the same consumer group (middle-aged or older people), we focus on customers who are not willing or able to pay a lot for liquor, mainly young adults. In addition, since our liquor contains more ethyl caproate which will make more apple flavor, it will be more attractive to the young generation. Starting from small things, we will first position our target market in the Chinese Mainland.
The final product of E.H-Cheers, as shown in the below picture, will be Luzhou liquor with our special flavor, which is produced through fermentation with our gene-edited yeast. We will adopt an apple-shaped appearance. To deliver the message that we do not recommend overdrinking, the net volume will be 300ml which is less than the average of current Luzhou -flavor liquor, and meantimes it will be more suitable for young people to try especially for the first time
Concept drawing of our product
In order to promote environmental awareness, we will also print an environmental slogan on the inside of the bottle cap. The streamlined appearance of the bottle is not only convenient to take but also represents the uniqueness of our products. To avoid being squeezed during transportation, the container will be made of glass, and there is a frosted leaf pattern on the top of the bottle body to make the shape closer to the apple. We will also print our logo and unique security label on the bottle body and bottom to prevent the appearance of counterfeit products from damaging our products in the market.
Synthesis principle of ethyl caproate
Per the graph shown above, in order to produce fatty acid ethyl ester (FAEE) and free fatty acid (FFA), we will construct FAS1, FAS2, and ACC1 plasmids which will be transformed into yeast for fermentation tests. Under the function of Malonyl-CoA, ACC1, FAS1, and FAS2 synthesize fatty acids and fatty Acyl-CoAs produce FAEEs. Therefore, as long as we successfully construct one of the three plasmids, the production of FAEEs can be significantly increased.
Safety is one of the fundamental requirements and a priority for any working environment.
Throughout the experimentation process, our team has worked hard to establish a protected working space. In the laboratory, we strictly follow general safety rules such as wearing appropriate protective gear, frequency of sanitization, waste disposal, etc. Although experimental procedures expose us to the bacteria E. coli Top 10, it is non-pathogenic and shouldn’t pose risk to students. Even so, safety precautions were taken to ensure no further contamination. After extraction of our recombined bacteria, any waste liquid should be sterilized by placing them into a pressure sterilizer to sterilize at 122℃ for 50 minutes with its container before being disposed of.
In addition, since our gene-edited yeast will be applied directly to the fermentation of liquor means that we still take more tests to prove the total safety of our engineered yeast until it meets the relevant standards in the food processing industry. Also, we will prioritize safety when we carry out the industrial production of our liquor and acquire the necessary licenses.
After analyzing the current market shares of the wine market, we have found that our main competitors are companies that have reached economies of scale. Among them were Wuliangye, Luzhoulaojiao, and Guizhoumaitai. These strong companies propose a significant challenge for us without any doubt, not to mention they have already possessed a great market share and a lot of loyal customer groups. Even though we switch to target the young generation, it is very challenging to attract them.
For the core technology, the production of ethyl caproate of our gene-edited yeast still requires modification on increasing the production capacity. To meet the requirement of the yeast for the liquor brewing industry, there will be more tests to be conducted however we are still not very familiar with these.
Firstly we will still continue our product development in the laboratory. Firstly, we will duplicate more fermentation tests to assess the production capacity of our gene-edited yeast on ethyl caproate and further explore the optimal fermentation conditions.
In the meantime, we plan to make our gene-edited yeast patented, and further register us as a liability company. If it's possible, we hope to cooperate with factories and warehouses in Gansu Province in 2023. By studying various regions, we found that Gansu has many breweries, and this is beneficial for us to have a complete transportation system to ensure that the products arrive safely and quickly. And will gradually set up a division of labor in other areas and expand our division progressively.
In order to vividly display our future company, we have designed a game <An Adventure to E.H-Cheers Company> to construct the future image of our company that we envision. Details could be found on the Software wiki page.
In order to build our brand reputation and attract more consumers, we will also conduct many promotion campaigns, including online advertising, online entertainment, peripheral selling, offline entertainment promotion and brand linkage promotion.
In regards to the detailed business plan, we have drafted a file to list all sections for implementing our project and our product in the real world, including marketing plans. This file can be found on the Entrepreneurship wiki page.
