Sanghaya Inc

Mark Robert Bryan Peralta

Maria Josefina Gonzales
Warren 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 mens senses and sanity. Filipinos consider tuba as
a type of hard drink. Tuba, extracted from a coconut tree has been popularly
called the Lazy mans crop or as they say the Lazy mans 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 Profile

DJCRATER, 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 worlds 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 Philippines 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 Cocos 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 Cocos 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 Cocos 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.

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

Filtration of coconut sap

The coconut sap is filtered and manually transferred to the fermenting
vats.

Fermenting
Coconut 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 Holding

The 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.

Distillation
The 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.

Storing
The finished products will be stored in the storage room where they are
stored in 20-25 degrees Celsius.
Manufacturing Process Flowchart
Storing

Collecting

Packaging

Receiving

Distillation

Filtration of the
coconut sap

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

Facilities

Description

Production Area

This is the area where the fermentation and distillation

process of making Lambanog is done.

Storage Room

This is the area where the finished products are stored

in 20-25 C.

Office

This 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-out
This describes the floor plan of the Lambanog Manufacturing Plant.

Waste Disposal

The 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
Water

Electricity

Heat
TOTAL

Description
It is a necessity of the
business for sanitary
purposes (washing and
cleaning
of
the
equipments and etc.)
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.
It is used in cooking the
coconut
sap
for
fermentation.

Estimated Cost
Php
3,800.00 per
month

Php
6,000.00
month

Php
month

per

1,500.00 per

Php
11,300.00
month

per

Raw Materials
Raw 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.
Depreciati
Useful life
on
Depreciation
Equipments
Cost
(in years)
/year
/month
P2,2
P
Alcohol hydrometer
50.00
8
281.00
P
23.44
Distillation
300,00
1
Equipment
0.00
5
20,000.00
1,666.67
2,10
1
Empty Containers
0.00
0
210.00
17.50
15
19.0
Strainer
0.00
8
0
1.56
90
1
90.0
Graduated Cylinder
0.00
0
0
7.50
5,99
1
Copper pot
0.00
5
437.50
33.28
60,00
2
Generator
0.00
0
3,000.00
250.00
105,00
2
Aircon
0.00
0
5,250.00
437.50
P
Total
29,249.50
P 2,437.45
Depreciation of Factory Building
Factory Building
P 1,500,000.00

Useful life (in

years)
20

Depreciation
/year
P 75,000.00

Depreciation
/month
P 6,250.00

*Factory Building are depreciated using the straight line method.

Equipments
Equipment

Quantit Cost
y
Production Based Equipments
Alcohol
Hydrometer

3 pcs

Computer Set

3 pcs.

Telephone

2 pcs.

Description

Php
750.00 Alcoholmeters
are
for
each
reading alcohol content in
(Php 2,250.00)
distilled spirits only. 12"
(30cm)
Very
accurate
Alcoholmeter.
Professional
grade. 0 - 200 Proof and 0100% abv reading.
Distillation
2 pc.
Php150,000.00e Used
for
distilling
the
Equipment
ach
fermented coco sap.
(Php
300,000.00)
Empty
30 pcs.
Php
70.00 This is where the collected
Containers
each
sap is stored for about 2-4
(Php 2,100.00)
days.
Strainer
5 pcs.
Php
30.00 This is used to filter the
each
coconut sap.
(Php 150.00)
Graduated
3 pcs.
Php
300 This is where the distilled
Cylinder
each
coconut sap is measured
(Php 900.00)
after.
Cutted Bamboo
900 pcs. Php
3.00 This is where the sap is
each
collected while it is still in
(Php 2,700.00)
the coconut tree.
Copper Pot
2 pcs.
Php
Used
for
fermentation
2,995.00each
process.
(Php 5,990.00)
Administrative Equipment

Office Supplies

Php
21,000.00each
(Php 63,000.00)
Php
1,189.00
each
(Php 2,378.00)
Php
1,049.00

Used for keeping records of

the business and also for
communication.
Used for communication.
Used for office works in the
flow of the business.

Furniture
Fixtures

&

Php
28,350.00each

Air Condition

3 pcs.

Generator

1 pc.

Php
35,000.00each
(Php
105,000.00)
Php
60,000.00

Total

Php
573,867.00

Used for the accommodation

of guests and people inside
the office.
Used for the convenience of
the emlpoyees in the office
and in the conference room
and in the storage area.
Used for the continuation of
production
in
case
of
electricity loss or black-out.

Personnel and their Duties and Responsibilities

Position
Production Supervisor

Duties and Responsibilities

Time-Keeper

Supervises production and quality control.

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.

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

Transporter

Personnel Salary Structure

Position

Minimum

Total (PhP)

Production Supervisor

Rate
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

Php 5,000.00

Security Guard

250.00/day
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 entrepreneurs 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
Total
Allocation of Factory Overhead
Distillation
Factory
Filtration
Departme
Overhead
Department
nt
P
Indirect Labor
P21,274.50 20,632.50
Utilities
1,695.00
2,825.00
Depreciation Factory bldg.
937.50
3,125.00
Depreciation Factory
Equipment
114.84
1,752.61
Repair and
Maintenance
1,882.275
6,274.25
Total
P
P

5,520.00
P

Packaging
Departme
nt
P13,716.2
5
1,130.00

65,316.32

Storage
Department

Total

P 20,815.23
5,650.00

P 76,438.48
11,300.00

625.00

1,562.50

6,250.00

70.00

500.00

2,437.45

1,254.85
P

3,137.125
P

12,548.50
P

25,904.11
5

34,609.3
6

16,796.1
0

31,664.855
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
Miguel, Gale
Kane, Sadie

Position

Classificati
on

Regular
Pay

Cleaner

Indirect

P6,132.72

Over
Time Pay

Total Cost
P6,132.72

P
349.72

Cleaner

Indirect

6,066.06

McKinley, Jack

Security Guard

Indirect

5,520.00

Goinzalez, William

Security Guard

Indirect

5,520.00

5,520.00

Rodondon, Jaime

Security Guard
Warehouse
Clerk

Indirect

5,520.00

5,520.00

Indirect

7,667.28

7,667.28

Time Keeper
Production
Supervisor

Indirect

9,200.00

9,200.00

Indirect

11,500.00

11,500.00

Janitor

Indirect

5,520.00

Gamay, Warren Jay

Gonzales, Maria Josefina
Peralta, Mark Robert
Bryan
Quasimodo, Jhon
Employer's Share

Total

6,415.78
5,520.00

5,520.00
13,442.70
P76,438.4
8

Sanghaya Inc.
Cost of Production Report
For The Month of July 2015

Quantity Schedule
Units Started
Units completed and
transferred
Units in process, end

Filtration Department
Materials
Actual
WD
EP
8364.64
7528.18
836.464
8364.64

100%
100%

Conversion Cost
WD
EP

7528.18
836.46
8364.64

100%
60%

Cost charged to the department

Cost added in the dept
Materials
Labor
Overhead
Total added
Total cost to be accounted for
Cost accounted for as follows:

P41
8,232.00
23
,000.00
25
,904.12
P46
7,136.12

Labor
Overhead
Total cost as accounted for

2.86
3.23
P
56.09
P
422,256.41

Completed and transferred

In process, end
Materials

P
50.00

P41,82
3.20
1
,437.50
1
,619.01

44,879.71
P
467,136.12

7528.1
501.8
8030.0

Quantity Schedule
Units received
Units Completed and
trasferred
Units in process, end
Cost charged to
department
Cost from preceding
department
Cost added in the
department

Distillation Department
Materials
Actual
WD
EP
7528.18
6022.54
1505.64
7528.18

100%

P42
2,256.41

Materials
Labor
Overhead
Total added
Total cost as accounted
for
Cost accounted for as
follows
Completed and
transferred
In process, end
Cost from preceding
Materials
Labor
Overhead
Total cost as accounted
for

Conversion Cost
WD
EP

6022.54
1505.64
7528.18

100%
80%

P
56.09

P1
8,398.16
34
,609.36
P5
3,007.52
P475,2
63.93

P 2.55
4.
79
P 7.33
P
63.42

P
381,978.06
P 84,451.28
3
,066.36
5
,768.23

93,285.8
7
P475,263.
93

6022.5
1204.5
7227.0

Packaging Department
Materials
Quantity Schedule

Actual

WD

EP

Units received

6022.54

Units Completed

4215.78

100%

Units in process, end

1806.76

100%

6022.54
Cost charged to
department
Cost from preceding
department
Cost added in the
department
Materials

Conversion Cost

P
381,978.06
P
120,060.00

WD

4215.
78
1806.
76
6022.
54

100%
90%

P
63.42

19.94

Labor

18,398.16

3.15

Overhead

16,796.10

2.88

Total added
Total cost as accounted for

P
155,254.26
P
537,232.32

P
25.96
P
89.38

Cost accounted for as

follows
Completed and transferred

P376,824.5
6

EP

4215
7
1626
0
5841
8

In process, end
Cost from preceding
Materials

36,018.00
5,1
21.14

Labor
Overhead

45,81
4.34
P422,638.
90

4,675.20

Total cost as accounted for

Storage Department
Materials
Quantity Schedule

Actual

Units received

4215.78

Units Completed

2951.04

Units in process, end

1264.73

WD

EP

WD

2951.0
4
1264.7
100%
3
4215.7
8

EP

2951.0
4
1138.2
90%
6
4089.3
1

100%

4215.78
Cost charged to department
Cost from preceding
department
Cost added in the
department

Conversion Cost

100%

P
376,824.56

P
89.38

Materials

Labor

Overhead

Total added

Total cost as accounted for

P
376,824.56

P
89.38

Cost accounted for as

follows
P
263,777.19

Completed and transferred

In process, end
Cost from preceding
Materials

Labor

Overhead

Total cost as accounted for

P263,777.
19

Alcohol Hydrometer

Empty Container

Generator

Copper Pot

Distillation Equipment

Air Conditioner

Strainer

Graduated Cylinder