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Old 07-20-2012, 03:10 PM   #31
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Always nice to have a holes around. YOU are so worried about how people spell!!!!!! Does it make a difference ?
Only if you want people to take you seriously.
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Old 07-20-2012, 03:29 PM   #32
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The brew magic system that Sam got started on is now ($7,000 + with shipping.) He said he had to turn out three batches a day, so you're looking at $200+ a day in just your base cost, doesn't include rent, insurance, lost beer due to infection… etc…
Working on such a small scale would require you to have a bunch of smaller fermentation vessels for each batch that you’ll do. You’ll need kegs, kegs washers, bottling equipment, fermentation temp control. The list just goes on and on.

I think dogfish already had a very rich family and had a lot of help to get his brewery off of the ground. It's not as easy to get a loan like it was back then.

Sabco does make a 2 bbl system but it will cost a lot more than 10k.
https://brewmagic.com/blog/nano-magi...rims-brewhouse

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Old 07-20-2012, 04:24 PM   #33
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I guess I can see how you get $10k into a batch or two of a contract brew but I don't see how you reach sustainability with that model, let alone profitability. Sure, you can get the beer packaged but then what? It seems much harder to get accounts with bars or bottle shops if you only have one or two runs of your beer than a stable brewery or at least stable output. If you burn through your cash then you have to sell enough beer to have the money to start another batch and then wait for that to make it's way back to you. This is impossible in a state like Texas where the tiered distribution system controls but it also seems challenging in a state that allows you to self-distribute or at least distribute direct to retailers.

I hear that there are some breweries that produce beer entirely by contract and have no physical location, so it is a feasible model.

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Old 07-20-2012, 04:32 PM   #34
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I guess I can see how you get $10k into a batch or two of a contract brew but I don't see how you reach sustainability with that model, let alone profitability. Sure, you can get the beer packaged but then what? It seems much harder to get accounts with bars or bottle shops if you only have one or two runs of your beer than a stable brewery or at least stable output. If you burn through your cash then you have to sell enough beer to have the money to start another batch and then wait for that to make it's way back to you. This is impossible in a state like Texas where the tiered distribution system controls but it also seems challenging in a state that allows you to self-distribute or at least distribute direct to retailers.

I hear that there are some breweries that produce beer entirely by contract and have no physical location, so it is a feasible model.
Here in MN we can self distribute. I have 3 bars that will have kegged beer and the rest will be sold regionally, (all within MN) currently. The money from the first batch will finance the 3rd batch, so there will be a little more than 10k invested for the first month or two, but that will taper off if sales go well.

I am just doing it the opposite direction that most do it, where they start with brick and mortar then try and get their brand established. I will go the brick and mortar when it becomes feasible.
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Old 07-20-2012, 06:40 PM   #35
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According to this http://probrewer.com/vbulletin/showthread.php?t=24441, running a nano brewery is no money, no fun, but somehow rewarding anyway. Read it.

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Old 07-20-2012, 06:45 PM   #36
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Subd I'm looking into it also but in ny. I found a building for $10,000 rent for the yr ($833 mo). I figured start with either 1bbl or if I can get money 3.5 bbl. Brew like 5-7 times a week. If its 1bbl n I sell 750ml bottles . U get about 165 bottles from 1bbl. Most places sell that size beer around here from $7-10 ea. So let's say I sell for $5 ea. 165 x $5. $825 for that 1bbl batch. Minus cost. I would say around $325 at most. So a profit of around $500x5(times a week) is $2500 week x4 weeks is $10,000 mo. I'm sure u can still make a decent profit out of that after all cost. Am I right?
I believe that NYS requires a distributor, and that cuts into the profit.
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Old 07-20-2012, 06:49 PM   #37
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I believe that NYS requires a distributor, and that cuts into the profit.
Yes but that's why I said sell for $5 a bottle. There is still $2-5 more profit they can make on each bottle.
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Old 07-20-2012, 06:49 PM   #38
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I'm putting together a business plan of my own for a microbrewery here in North Carolina and $10,000 is not even close to covering costs. You need to factor in construction costs (drains, venting, electrical work), permitting, zoning, and licensing before you can even think about the production side. A 1 BBL or 2 BBL system might seem large to a homebrewer but on the production side it's tiny. Sure you could brew 3 times a day 7 days a week, but when are you going to be package, selling, and distributing your beer? If you are successful, how are you going to handle increased demand? You can't add more hours to the day....

I'm not trying to rain on your parade, but if you are going to do this seriously (and you want serious answers) then you need to do a business plan. Or at least start one and see where it takes you.

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Old 07-20-2012, 06:56 PM   #39
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Unbelievable. Are you really debating if he's a jerk on the internet? Grow up. It's the internet. If your feelings are hurt, well, I don't know what to say. I'm sorry. It's the internet.

Oh, and I'm a banker, and spelling does matter. And use at least a 50% discount rate on cash flows...tell me if you're profitable now. Only way to make it work is equity. You're operationally leveraged out the wazoo, so financial leverage is disaster, IMHO.

EDIT: Denny's link is a must read. If you enjoy it, go for it. If you're doing it as an investment...might think twice.

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Old 07-20-2012, 06:59 PM   #40
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I think you can for close to $10,000.
You can get most of the equipment for around $3000 that's your new stand,pots,pumps,etc. You could get some plastic fermenters for around $200 ea. So maybe another $1500 for around 7 fermenters. RSent for a place (I found a place for $833 mo) not permits. Ttb cost $0 just have to get a brewers bond. Now ny state the annual fees cost less then $1000 for everything u need. And to start a corp around $300. So that's around $6600 and u have about $3400 left for odds and ends n unexpected stuff. So I think if u put the work into making the stand n putting everything together yourself u can save a ton of money.

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