Craft brewers can spend hours searching for the perfect balance of hops and malts, tasting new ingredients, and dreaming up the next unique signature beer. Breweries generally know how important it is to have clean tanks and lines, as the effects can be immediate and ruin an entire batch of beer. Yet, as craft breweries continue to grow, there are other risks to consider. Proactive risk management can reduce the likelihood of loss, limit the losses you suffer as a result, and, in some cases, shift the financial burden to the responsible party.
Common hazards in craft breweries
Equipment failure
Breweries use a variety of beer production equipment to produce and store beer, from brewery equipment to beer packaging equipment. If the thermometer on your cooler fails, you can spoil a batch of craft beer and ingredients, wasting money. It is recommended that breweries have professional beer equipment maintenance engineers. He can check the equipment to ensure the normal operation of the equipment as much as possible.
unsafe working conditions
Workers working on wet floors may slip or fall. Additionally, workers may trip if there are objects in their path.
Hot surfaces, steam and boiling liquids
Thermal burns are one of the most common injuries in craft breweries. Workers may come into contact with very hot metal equipment surfaces (such as brewery equipment or steam pipes) or suffer burns from contact with boiling water.
Hazardous or flammable chemicals
Cleaning solvents and disinfecting chemicals used by craft breweries can cause minor skin irritation, and some chemicals can cause serious harm to employees. Additionally, fire and explosion are major hazards for craft breweries. For example, ethanol (alcohol) vapors can leak into cans or barrels and cause a fire. Also, if steam is released into a confined space with a fire source (such as a gas boiler), it may also cause an explosion.
Risk Management
Proactive risk management can reduce the likelihood of loss, limit the losses you suffer as a result, and, in some cases, shift the financial burden to the responsible party. The best news is that a solid proactive risk management plan is often much less expensive than defending a case, paying the cost of a settlement or jury award, or paying out of pocket to rebuild if a brewery sustains damage.
Risk Management for Craft Breweries
Have the right small business insurance
Because operating a craft brewery involves unique risks, it is necessary to buy appropriate small business insurance. Protection and compensation are available when any type of accident or claim occurs.
Discuss risks with suppliers
Quality control can make or break a small business like a craft brewery. Craft breweries that use other suppliers for raw materials, brewing equipment, or piping systems should have a clear understanding of each party’s responsibilities if something goes wrong. Craft breweries should discuss risk sharing, negotiate and sign contracts with their suppliers rather than shake hands and do business. Craft beer companies must establish complete quality control documents and provide scientific training to employees.
All craft brewery employees should receive comprehensive safety training and understand all operating procedures for brewery equipment and the risks involved. craft breweries have demanding work schedules that must many tasks to be juggled at the same time. Develop a designated work task list to help each employee follow safe operations and ensure their own safety.
How craft breweries can protect themselves from risk
Protect supply chain
Do all hops used in seasonal brews come from the same supplier? This can leave you vulnerable to supply chain issues. Make sure you have a stable and available supply of ingredients in the quantities you need. Contracts with growers in specific geographic areas where hops are prevalent may be competitive. Have backup supply plans in place in case there are problems with receiving goods on time.
Plan your response to a product recall
Let’s say there’s something wrong with the label and it doesn’t mention an allergen, such as wheat, or a foreign object is found in one of your bottles. Have a plan for everything from how to notify customers and remove products from shelves to how to hire lawyers and address consumer concerns on social media.
Make sure your employment contract protects your intellectual property
The contract should ensure that if the brewmaster leaves the brewery, all recipes remain the property of the brewery and cannot be duplicated at the brewery.
Alcohol training for employees
Make sure employees are trained in serving alcohol to customers. If volunteers are not trained, assign them to other tasks instead of serving alcohol.
Consider responsibilities when hosting special events
Events can pose a range of risks, from injuries to patrons who may slip in areas not suitable for visitors to safety issues. Consider adding lighting, warning signs, and cordoning off areas of your brewery that may be trip hazards or attract children. For larger events, event management companies can provide security and help manage risk.