Craft beer production is quite beneficial and profitable. Its sales are increasing rapidly while imported beer sales sharply decline. At the same time, the amount of small, independent brewers has grown from fewer than 400 less than a decade ago to more than 1,500 nowadays. To run a small private brewery, the amount of $2,500 to $7,000 of the initial capital is recommended. The profitability rate is about 40%, with a payback period of about two months.
There is a huge sense in launching a private or home brewery. According to latest statistics, last summer the Brewers Association registered 1,252 breweries in the stage of planning, while a year before the number was only 725. Statistics shows that the number of annual beer usage is growing by 12%. Among all beverages, beer seemed to be the most demanded and sold one.
CRAFT BEER INDUSTRY MARKET SEGMENTS
There are four distinct craft beer industry market segments: brewpubs, microbreweries, regional craft breweries and contract brewing companies.
A brewery that produces less than 15,000 barrels (17,600 hectoliters) of beer per year with 75 percent or more of its beer sold off-site. Microbreweries sell to the public by one or more of the following methods: the traditional three-tier system (brewer to wholesaler to retailer to consumer); the two-tier system (brewer acting as wholesaler to retailer to consumer); and, directly to the consumer through carry-outs and/or on-site tap-room or restaurant sales.
A restaurant-brewery that sells 25 percent or more of its beer on site. The beer is brewed primarily for sale in the restaurant and bar. The beer is often dispensed directly from the brewery’s storage tanks. Where allowed by law, brewpubs often sell beer “to go” and /or distribute to off site accounts. Note: BA re-categorizes a company as a microbrewery if its off-site (distributed) beer sales exceed 75 percent.
Contract Brewing Company
A business that hires another brewery to produce its beer. It can also be a brewery that hires another brewery to produce additional beer. The contract brewing company handles marketing, sales and distribution of its beer, while generally leaving the brewing and packaging to its producer-brewery (which, confusingly, is also sometimes referred to as a contract brewery).
Regional Craft Brewery
An independent regional brewery with a majority of volume in “traditional” or “innovative” beer(s).
Regional Brewery – a brewery with an annual beer production of between 15,000 and 6,000,000 barrels.
Large Brewery – a brewery with an annual beer production over 6,000,000 barrels.
You can start your "beer" business with $2,500. But it is highly recommended to improve and up-grade the equipment as well as technologies each time the profit allows doing so. It is advised to invest $6,000 – 7,000 to run a beer store or pub at the same time.
$2,500 PicoBrew Zymantic
Microbrewery industry is always in high demand all around the world. The market is already successfully rebounding, posting growth from 2014 to 2015, when the craft beer market saw their sales in volume increaseby 11% and an increase of retail value by 12% (Brewers Association). Craft brews now have such a strong fan base that they are no longer easily swayed by differentiations in the overall market. The advantages of opening a private brewery are low initial investment, predictable sales, and high level of profitability.
The Best Practices Guide to Quality Craft Beer is intended to provide guidelines and tips to help maintain beer in the best possible overall condition.
This 20+ page brochure will show you how to keep your beer “brewery fresh” from bright tank to the consumer’s glass. Beer is a perishable product and many things can diminish a beer’s quality from the time it is brewed to the moment of consumption.
In this guide brewers, distributors and servers will learn the skills necessary to preserve beer quality so that consumers receive a consistent product every time.
The EU now counts over 5000 breweries, showing the interest that many Europeans have for the diversity and variety of Europe’s many different beer cultures. Europe’s beer culture is also an important draw for millions of the tourists that arrive in Europe each year.
Demetrio Carceller President of The Brewers of Europe
Be ready that the necessary brewery equipment might cost you around $17,000. But this tiny package will comprise of everything required to launch an excellent beer production business (up to 400 litres of beer obtained with each brew). When you find your business effective, there will be a sense in purchasing even more prestigious kit for $25,000. This one can produce 200 litres more. After all, this «spooky” from the first sight price includes a demonstration brew in it. It is crucial for all those who have little or no experience in professional brewing.
However, what’s the point of starting-up at such high costs? It can be rather risky. For the first time, try to search for a less expensive kit.
The supportive equipment may comprise of arch that has to be up-dated from time to time. It will result into no less than $24,000 for electrics, flooring, plumbing and drainage, but it is optional. Most of the entrepreneurs invest into it only after receiving the warranty of brewery profitability.
What you might need from the very beginning is some bottling equipment, which price is not that huge: the machine itself is sold for $800.
Frankly speaking, the one can start his brewery business even bottling by hand. That means labelling, cleaning, filling and capping each one. Think yourself: are you ready to face this challenge? Another alternative that seems more attractive is to make enough income to be able to buy a giant at the cost of $105,000. Only then your business will be able to go large-scale.
small beer kit - $17,000 (no more than 400 litres);
professional beer kit - $25,000 (+200 litres more);
They do not take much space and do not require special conditions. The small size of the equipment allow it to be placed even in an apartment.
Easy to transport.
The use of durable materials ensures long-lasting operation.
Ease of production. You can learn how to brew beer alone without any special education.
In fact, this is a mini brewery plant, which observes the standard procedure of brewing. The difference is only in the volume of production. A personal micro brewery, the price of which shall surprise you, allows you to cook a variety of beers.
How does a mini brewery work?
The mini-brewery "Heirich Schulz" performs three main stages of the technological process: 1) Preparation of hopped and clarified wort 2) Fermentation of wort and after fermentation of beer 3) Filling of naturally clarified beer.
1). Malt is weighed and ground in a grinding mill. In the mashing and wort boiling machine water is poured, the mixed machine is switched on and ground malt is filled in. Mashing (preparation of converted mash) is carried out by the infusion mash method in a particular mode (increase of temperature and keeping temperature pauses). Converted mash is pumped into the filter machine, where the separation of mash is carried out - separation of wort from grains. After the filtration of the first wort, grain is washed with water. The resulting wort, collected in the mashing and wort boiling machine, is boiled with hop for about 1.5-2 hours. Hopped wort is pumped into the hydrocyclone machine, at that hop and other suspended matters precipitate in the center and the wort is clarified. The clarified wort is cooled to a temperature of 12-14 ºC, by pumping through the counterflow heat exchanger.
2). The cooled wort is pumped into a fermenting machine, where at the same time beer yeast starter is added. Fermentation of wort is carried out in fermentation machines at 6-8 ºC for 4-6 days. The young beer produced at the end of fermentation, is transferred to the sealed after fermentation machines (CCT). After fermentation is carried out under overpressure of carbon dioxide at a temperature of 1-2 ºC. Beer is saturated with carbon dioxide and matures during 14-21 days, turning into a finished beverage.
3). Since it is not profitable to fill the microbrewery production in glassware, it is not subject to filtration and pasteurization and therefore retains all its invaluable healing properties. Filling of beer is carried out from CCT through a system of communications in kegs or directly to the bar. At a temperature of 2-4 ºC beer can be stored up to 3 months. Brew process is regulated and controlled by remote control. A manual switch of all drives, plants and mechanisms is also possible.
Valves and pipes for brewing compartment â€“ 1 set
Areometr â€“ 2 pcs; Flask; alcohol thermometer; Dropper (iodine), other
What can be counted as the primary raw material for any private brewery? Of course, bottles. The bottles for this initial business idea cost no more than $300 - $350 (the pack is enough for the first portion). Other raw materials include malt, hops, yeast, and water.
For the production of 100 liters of beer, you’ll need:
Clean water – about 88 liters, $0.10 per each;
Malt hop extract – 15.43 lb, $12-13 per 2.20 lb;
Yeast – 0.08 lb, $2.5 per 0.22 lb;
Sugar – 13.23 lb, with the average price of $1.5 per 2.20 lb.
Hint: a small private brewery is able to produce from 50 to 500 liters per day. Manage your resources!
What you will need to buy/source:-
Additional hydrometers/ sacchrometers. (You will break them with annoying regularity)
Stock of malt & hops
Casks and a device for cleaning them
Good yeast supply. We can supply yeast direct, upon request
Qualified electrician to prepare the brewery site and be there for the first day of installation. All electrical appliances are supplied without wiring.
Safety equipment for you and/or brewer i.e. chemical proof gloves, goggles, eye wash station, capped wellingtons etc
Before you can become operational in the UK you will need:-
Permission to brew from Customs & Excise which should be a formality but could take some time
Permission to brew from environmental health. Equipment specification has never been a problem with any EHO, but you will need to clear the external environmental impact and the building specification.
Permission to dispose of trade effluent, usually provided by you water suppliers.
Consent from planning authorities, if necessary.
Assistance will be given with the above bodies but rest assured that negotiations are not as onerous as you may think, especially with proper guidance
Adequate single-phase electricity supplies and points, preferably waterproof sockets that must be protected with RCDs
3 phase electricity supply for greater than 4BBL installations
Adequate site drainage to mains. It is the customers complete responsibility if mains drainage is not available
Adequate access to atmosphere for an exhaust chimney for fumes and steam
Adequate (volume & quality) mains water supply
Suitable collection of spent malt, (this can involve some income)
Suitable collection of spent hops, (these can usually be biodegraded for plant mulch)
Competent person/s dedicated to become your brewer/s
If you don’t have the opportunity to locate your kit inside your apartment, you’d better find other alternatives as far as the rent might be high. As long as your rent is fixed for the foreseeable future, you can relax and stop worrying.
Selling a craft beer is all about location. Most of the heavy users are not worried about the quality or label. When they want to drink, nothing will keep them fromk doing that. So, the only issue is the first place that will appear in their sight. Here is your chance to win your customers.
The production area will fit enough on the space of 20.0 square meters. You may decide that you would like to open a beer point within industrial area. When you launch a web-based store, you don’t need a real space. Another popular option as for today is selling the beer through other outlets. On a commission basis, you can make partners with some local dealers. It will help to progress fatser.
On the whole, the size of brewery premise depends on the amount of beer to be produced. A plant with a production capacity of fifty litres per day will require no less than 30 square meters, for each 200 - 600 square meters.
When we’re talking about home brewery, you need to evaluate your space objectively and decide on the type of brewery machine or kit to purchase.
Area requirements obviously differ with each brewery. Ideally the brewery should be split into two distinct areas, one for the 'brewhouse' and the other for the fermenting room. Most breweries can be squeezed into suitable areas. If space or access is a problem then please contact me and I'm sure we will be able to come to some configuration to fit.
There will also be a requirement for additional areas for cask washing, malt store, cold room (optional), and empty cask storage.
Area requirements for standard breweries will depend upon a lot of variables, like the position of windows and doors, as well as roof height and drainage. Having outside secure or off-site storage also helps to reduce the area requirements. If there is room for a mezzanine floor then this obviously helps. The below table is operational area and does not include toilets or office space.
Brewery Size (Barrels)
Area feet² Min - Max
Total Electricty Required
250 - 500
400 - 700
700 - 1000
800 - 1100
1000 - 1200
1200 - 1400
1400 - 1600
If there is an intension of real ale bottling, then another 200-300 feet² will be needed
The preparation of the Memorandum and various Association articles, notarization of constituent documents and signatures, state registration, registration in the bodies of state statistics and tax authorities may cost $200-300. You can find the list of all necessary documents here: http://thompsonhall.com/licensingbrewery/
One person can combine the responsibilities of the Director and accountant. For the retail sale, you will need to hire one or two sellers. They should be aware of different tastes and productions technologies. The cleaning process can be ordered from a cleaning agency but still it is worth to hire an individual.
Courses on brewing should be undertaken primarily in South Africa, preferably with the established and reputable firms, such as YY Breweries. This will ensure that your personnel are exposed to the latest production techniques and are able to set their standards.
In general, to run a small brewery, you will need:
Up to three bottlers;
A couple of packagers;
Some sellers (up to 3).
Or… You can do everything yourself with having a compact brewery machine!
Simply contact us, and describe the business you plan to open. We will send your inquiry to hundreds of suppliers. Those, who are interested – will send you their quotes for suggested equipment package.