The craft brewery has developed into a very successful commercial industry. Because the craft brewery attracts a lot of sales and visitors every year. So it is becoming more and more popular now. With the vigorous development of the craft beer world, you have the opportunity to start your own craft beer business. But, you need to figure out how to start a craft brewery first.
If you want to start a craft brewery, not think about it. Then you have to know that achieving this goal requires a lot of planning, money, and patience.
Planning the basis for a new brewery
You need to know what kind of craft brewery you want to start. Do you need to sell your craft beer to distributors for regional sales? Do you own a Brewpub and want to sell delicious food and craft beer together?
Before starting your craft beer business, you need to understand your goals. Then adjust and refine your business vision based on the situation.
The six main components of planning a new brewery are:
- Determine the start-up cost of opening a craft brewery
- Determine the name, logo and layout of the craft brewery
- Develop a business plan
- Purchase all the equipment needed for the operation
- Legal requirements
- Create financial forecasts
Before you start planning your craft beer business, you need to understand the ultimate goal you want to achieve. Of course, you also need to develop and improve your business vision. Choosing your business model is the first step in this direction.
The Brewer’s Association for Small and Independent Craft Brewers identifies four separate market segments for the craft beer industry. They are microbrewery, brewpubs, contract brewing companies, and regional craft brewery.
Microbrewery: produces less than 15,000 barrels of beer per year. Among them, 75% or more of beer sold elsewhere. The microbrewery may also have a taproom selling beer in the store.
Brewpubs: Brewpubs is a restaurant brewery. It needs to sell at least 25% of beer on-site. In some places, Brewpubs can also sell beer, wine, and spirits from other manufacturers. Of course, there are some places where this prohibited, and you need to check your local laws for specific situations.
Contract brewing company: In this business model, a company hires another brewery to produce beer. The contract company will handle other business aspects. Such as distribution, marketing, and sales.
Regional craft breweries: This category is somewhat vague. The BA defines it as an independent regional brewery with a majority of volume in “traditional” or “innovative” beer(s).”
It is important to note that each place has its own alcoholic beverage law. If you want to understand what your business options are. You must understand your local legal situation.
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The cost of opening a craft brewery
Generally, the start-up cost of most craft breweries is between US$500,000 and US$1 million. But, the cost of starting a craft brewery depends on the size, production level, and location of your planned craft brewery.
The cost of opening a craft brewery includes rent or construction cost, beer equipment cost, raw material cost, and employee salary. Of course, there are some other costs. For example, obtaining permits/licenses/insurance costs, renovation costs, furniture costs, technology and software costs. Of course, some marketing expenses required.
If you are brewing beer for the first time and you are not sure if you can get enough funding for this project. Then starting a microbrewery is also a good choice. Because the establishment of a microbrewery does not must a lot of funds. The microbrewery is still expensive for you. But, it is easier to achieve than large craft breweries.
If you want to get the cost of setting up a microbrewery, you can contact us at any time. Our engineer will provide you the price within 24 hours.
Create a brand for your craft brewery
You need to build a brand for your craft brewery. Craft beer needs to work hard on brand promotion and expressing product personality. This will affect your customer loyalty and repeat customers. Here are some tips on how to express your beer brand.
How to establish a name for a craft brewery
A good name can be impressive. Of course, it can also give customers a good first impression of your craft brewery. It can help you get more customer contact information and orders.
8 characteristics that the name of an excellent craft brewery has:
- Meaningful: convey the essence of your brand and support the image you want to convey
- Unique: Different, but easy to remember, spell and pronounce
- Scalable: changes with the development of the brewery or the direction of marketing or products
- Protected: can have registered trademarks, and can use in the top-level domain name of the website and social media
- Visual: very suitable for graphic display (logo, packaging design, etc.)
- Persuasive: Encourage customers to interact with your brand
- Emotional: elicits emotional reactions from customers
- Discoverable: should be easy to search online
How to design a craft brewery logo
As the craft beer industry continues to develop, so does the number of your competitors. If you want to stand out, then you need to make a recognizable craft brewery logo.
When designing a craft brewery logo, it needs to design according to the name. These two need to coordinate. Only in this way can we help customers understand the brand.
To help you get inspired, here are some of the most iconic brewery logos. Many of these designs have an old-fashioned but classic look. They can give people a pleasant feeling and make beer drinkers feel relaxed and happy.
Iconic design elements found in popular craft beer logos:
- Wooden barrel
- Common animals/characters (e.g. cats)
- Any icon that can consider old-fashioned or outdated
The logo represents the image of a craft brewery. It is worth your time to think about it. It can help customers better understand your brand and bring you more orders. If you can’t think of a suitable logo, you can also find some design company to design it for you. Of course, there is a charge.
The color scheme for the craft brewery
Your color scheme is also important. Because color affects how customers experience your brand. You need to consider using more natural colors.
Choose a location for your Taproom
If you want to open a craft brewery. Then the location and size of the building also need to consider. You need to check the operating laws and regulations of the local craft brewery. Of course, you also need to investigate the market and choose the most suitable business method. So, the location you choose is the most important part of the entire business plan.
To find the best location, you need to consider the following questions. Whether they will affect your business.
- Attractions: Will tourists affect the sales of your brewery?
- Competition: Are there other craft breweries or related companies in this area?
- Demographic characteristics: What are the characteristics of your customer base? What is their lifestyle? What kind of jobs do they have?
Craft brewery floor plan and layout design
You need to remember to choose a location that provides room for growth. You might expand your craft beer business. But moving to a larger location requires more costs, which will affect your profits. When designing a craft brewery, it is necessary to design according to the floor plan of the restaurant. Of course, if you plan to buy beer equipment from us, our designer will design the layout for you.
To get the best design layout, you need to consider the following questions:
- Do you need a restroom?
- Is the brewery the only place where beer can brew?
- How much space do the brewery itself and customer seats need?
- How many guests do you plan to accommodate in the building?
Develop a craft beer business plan
A complete craft beer business plan can help you get start-up capital. A good craft beer business plan can impress investors to provide you with start-up capital. Make sure you have a complete craft beer business plan. Because investors will ask to see it.
Here are the nine most important parts of your craft beer business plan:
Executive summary: This section is the most important part of the craft beer business plan and should not exceed one page. The purpose is to summarize the main points of the plan.
Business overview: This section should include a list of basic information about your craft beer business. Such as legal name, address, and contact information.
Business description: This section specifies your vision and goals for the craft brewery. It should also include detailed information about the structure, mission statement, concept, and location.
Market analysis: This section presents relevant statistics on past and current trends in the target market. It includes everything related to the needs of the brewery.
Consumer analysis: This section uses qualitative and quantitative data to detail statistics about the target audience and customer base.
Competitor analysis: This section specifies who you think is a competitor. You will compete and within the selected community.
Marketing: This section outlines what will include in the beer marketing strategy. It includes pricing, positioning, and promotion strategies.
Operation: This section outlines the daily operations of the brewery. It includes related personnel, suppliers, and details of brewery insurance to brewery license requirements.
Finance: This part is the most important part of your craft beer business plan. Especially if you need debt financing or are trying to advertise to investors. Include forecasted revenues, costs, and expenses.
Your craft beer business plan is the key to getting your business approved. For entrepreneurs who invest, the quality of the business plan is the key to deciding whether to invest. It shows investors that you have considered all the factors for starting a craft brewery and have conducted research. The business plan is your guide to starting the brewery and ensuring success. It is important to be clear and concise and should update when changes occur. With a proper business plan, you will be one step closer than realizing the winery’s dream.
Craft brewery equipment
When starting and operating a craft brewery, you will need the appropriate craft brewery equipment to complete the job.
The equipment required for a craft brewery will depend on a variety of factors, including:
- How much space is available in the craft brewery? Does it need to extend?
- What type of beer are you going to produce?
- What production level do you need?
- Do you want to buy new or second-hand equipment? Or a specific brand of beer equipment?
- What kind of equipment do you want?
The cost of beer equipment is likely to account for a large part of your budget. Because this is a big decision. So please communicate with suppliers who specialize in beer equipment. If you have a limited budget and want to choose second-hand equipment. I want to tell you that the price of our beer equipment is very competitive. Your brewing system is also critical to the success of your craft beer business. The larger the system, the more beer you produce. Of course, the more beer you can sell. If you want to know the price of Micet Craft beer equipment, you can contact us at any time. We will provide you with the best guidance on the equipment that best suits your needs and constraints. Of course, it also enables you to compare prices.
Here is a list of some of the most essential brewery equipment to prioritize when purchasing:
- Malt miller
- Bottling and canning lines
- Cooling systems
- Storage tanks
- Fermentation tanks
- Bright tanks
- Refrigeration equipment
- CIP Cleaning equipment
- Beer pump
- Beer filling system
- Yeast breeding system
- Beer tap handles
- Waste treatment systems
- Beer-labelling machines
Micet Group can provide you with these types of equipment. You need to tell us your needs, and our engineers will provide you with a turnkey solution within 24 hours.
Legal requirements for craft brewery
Think that the production and sales of alcohol-related. So, local regulations and laws must follow. You may need permits, licenses, insurance.
The federal and state regulate the alcohol industry. State laws have many requirements for the way craft breweries operate.
You need to research based on the location of the craft brewery. Each state has its own requirements for the opening and operation of craft breweries. You need to prepare basic legal documents.
When starting a new craft beer business, you need to resolve the following six important legal issues:
Federal Brewery License: This license authorizes you to produce an unlimited amount of beer. Of course, it is also possible to allow restaurants to opened inside the brewery.
- State Liquor License: This license allows you to sell liquor to customers. Laws vary from state to state, so be sure to research the liquor licensing laws in your state before opening them to the public.
- Brewer’s Bond: This is another form of liquor license required for the operation of a winery. Make sure your craft brewery will pay all government and state taxes.
- Operating Agreement: This document outlines all the rules and regulations of LLC (Limited Liability Company).
- Insurance (such as property, casualties, and liability): the scope of compensation for damages.
- Retailer License: This license allows you to sell other products on your own premises. Such as clothing and accessories.
- *Note: This is not legal advice. We provide you with suggestions for starting a craft brewery. If you need more information about the document, it recommended that you consult the relevant lawyer. They will help you complete the documentation related to the craft brewery.
Financial projects and forecasts of craft beer
Omit to determine how to start the brewery, you need to calculate your forecasted sales. This is a very important step.
Help from professional winemakers and financial experts
Professional winemaker: He can provide you with industry knowledge that you may lack. It can also help you predict sales as possible. If you are looking for investors, they can also help you grow your business.
Financial expert: He can help you convert sales into financial forecast numbers. Of course, you need to provide him with the variables that affect sales.
These experts can provide a wealth of industry knowledge and research. They can help you stand out from other craft breweries. Of course, they can also save you precious time and allow you to focus on brewing quality beer.
One thought on “How to build a Craft brewery?”
It’s very helpful to know what we must ask ourselves about what equipment we’ll need when starting a craft brewery business. My brother and I want to learn how to brew craft beer as a hobby and maybe open a business in the future if everything goes well, so I’ll read and share your article right away. Thank you for the insight on how the type of beer that we’ll craft affects the kind of equipment we’d get.