Contract brewing and packaging is an popular option for craft breweries looking to increase production and distribution. A contract brewery, also known as a cooperative brewery, is a brewery that agrees to produce beer for a business that does not have a brewing facility. Likewise, contract packaging involves working with a third-party supplier for packaging. While this approach has its advantages, there are also some potential disadvantages to consider. This blog post will explore the pros and cons of contract brewing and packaging beer.
What is contract brewing?
Contract brewing, an arrangement in which a company brews and packages beer on equipment it does not own. Although this arrangement has long been common among large breweries. With contract brewing, you can hire another brewery to brew and package beer for you, or you can rent another brewery’s facilities and brew the beer yourself. It’s still your beer, you own the recipe and decide how it’s made.
This option is especially popular among craft breweries that don’t have the capacity to produce beer. Contract brewing can also be used by larger companies looking to expand their reach and increase production capacity. Contract brewing is a cost-effective way to produce beer. It eliminates the need for breweries to buy and maintain equipment. It also allows access to proven expertise and capabilities from established breweries.
The meaning of contract brewing
- The brewery needs to increase production. This may be temporary before purchasing more equipment or making a large order.
- Companies wishing to increase their product portfolio.
- Individuals who want to establish a brand before purchasing equipment.
- Institutions that must customized beer (i.e. pubs, bars, hotels, restaurants, attractions).
- Hope to provide more varieties of beer bars.
Contract brewing is a cost-effective way to produce beer. Small-batch contract brewing is an especially popular option for those looking to try new recipes or enter new markets without incurring the costs associated with setting up a full-scale brewery.
Advantages of contract brewing
Contract brewing can be an attractive option for brewers looking to increase production capacity, expand geographic coverage and grow their brand. It also offers brewers the benefits of professional packaging. Pure contract brands can be successful in the market and can expand or even get breweries.
Contract brewing also allows people to enter the brewing industry with a low-risk investment. It involves much less capital expenditure than setting up and operating a production brewery. This is helpful for start-ups with limited budgets.
Small-batch contract brewing has very low operating costs and can provide startups with the opportunity to succeed in the competitive beer market.
Disadvantages of contract brewing
One of the main disadvantages of contract brewing is that it can result in your brand having less of a presence in the community. Since contract brewing involves working with an outside brewery, you may have less control over the brewing process and where the beer is produced. Contract brewing can also be more expensive than traditional brewing.
Contract brewing can result in a lack of brand image. Our advice is to show transparency from the start and market to create a positive impact. Finally, there are quality control risks when contract brewing. You have to trust the contract brewing company to deliver high-quality beer. This can often be avoided by adding lab testing to the agreement to protect both parties. All these factors must be weighed before deciding whether to pursue contract brewing options for your business.
How much does contract brewing and packaging cost?
Start-up costs for a craft brewery with an automated packaging line can exceed £250,000. This can be a significant hurdle for startups that are new to the industry and may not have the financial resources to make such investments. it’s possible to launch a beer brand that offers contract brewing services at a fraction of the cost. Around £5,000 or less.
More established breweries can also turn to contract brewing to save money. For example, they can work with contract brewers to produce small batches of beer faster and more rather than investing in equipment.
Contract Brewing FAQs
What is contract brewing and/or packaging?
put, contract brewing is where you (the buyer) provide the recipe to the brewery (the supplier), and they brew the beer and package it for you on their equipment. Or, the beer can be shipped to the brewery for packaging only.
Is there a least or most volume?
The least brewing capacity is usually 1000L and the small packaging capacity is 600L, in some cases more. The largest volume can reach tens of thousands of liters.
Do I have to provide ingredients?
No, there is no need to provide ingredients as the brewery will include the cost of these ingredients in the quote. But, if you do have your own ingredients or wish to use unusual additives or hop types, you can specify this when you contact us and we will discuss this with you at the time of quote.
What packaging options are available?
Our contract brewing/packaging offers a full range of packaging options (bottles, cans, kegs, kegs, bulk containers, mini kegs, etc.). Least quantities for each option may apply, but if the order is larger than 1600 litres, we can split into many packaging types.
How do I make sure the beer tastes the same as when I brewed it?
This may depend on many variables. Clear, concise recipes are a key ingredient. You should also discuss with us any possible changes in ingredients (e.g. water conditions and pH, ingredient suppliers, equipment design, specific processes, etc.). We will always work hard to ensure your beer is as close to the original taste as possible.