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Old 07-20-2012, 07:01 PM   #41
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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.
I encourage you to go talk to folks on probrewer.com. I think you will find that your expected profit margins on bottles are wildly excessive.
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Old 07-20-2012, 07:03 PM   #42
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Quote:
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I encourage you to go talk to folks on probrewer.com. I think you will find that your expected profit margins on bottles are wildly excessive.
Still a profit at $3 a bottle just not as much.
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Old 07-20-2012, 07:05 PM   #43
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Still a profit at $3 a bottle just not as much.
I think you will find 3 a bottle a wildly excessive estimate as well. The consistent message from successful brewers is that it is very hard to make money in retail.
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Old 07-20-2012, 07:07 PM   #44
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Knock off the name calling and bickering. First and only warning. Next offense will lead to a 3 day ban plus thread closure. Enough!

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Old 07-20-2012, 07:16 PM   #45
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Here's a link from Oregonlive which interviews several nano breweries: http://www.oregonlive.com/mix/index.ssf/beer/nano-breweries-put-great-care-into-little-batches.html

There are links to others at the bottom of the page. They might be helpful if you contact them.

I've done a lot of research on this subject, and it seems to me that the people who think it costs 200k+ are assuming that you are opening up a brewpub. Serving beer on tap, food, with a brick and mortar building. They usually quote construction costs in that 200k budget they mention. If that's the case, then yes, 10k won't even pay rent for a year.

If you are looking to brew beer in your garage, and distribute it yourself (btw, OR and WA allow you to self distribute) than 10k is feasible. You will have to keep your day job, and you'll likely brew everyday. The Internet is full of stories about breweries who started with 1bbl and upgraded to 3, then 7 then 15, etc etc. It can be done. It's a lot of hard work though.

If you plan to sell bottles, don't forget about all the extra work that goes into that. You'll be filling and labeling bottles by hand, unless you want to spend 20k on a used automated bottler.

I once looked into going the keg route. My Pale Ale recipe would cost around $50 a keg. Micro brewery kegs sell for around 130-150 (see: http://www.maletis.com/beer-dock-sales.php) So let's say a keg cost me 75, I could still sell it for 130 and make some decent $$.

Run the numbers. Shop around. Look for used equipment. Think of EVERYTHING and EVERY possible scenario. Write up a business plan. If it still looks good. Go for it!

--cheers

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Old 07-20-2012, 07:17 PM   #46
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I think you will find 3 a bottle a wildly excessive estimate as well. The consistent message from successful brewers is that it is very hard to make money in retail.
Agreed 100%. To the OP, check out probrewer. They have a lot of online resources, guides, and a forum that is a ridiculous resource for professional and want to be professional brewers.

There are business plans for breweries floating around the internet. I'd take a look at a couple if I were you and see what you find. You may find a lot of information and costs that you hadn't expected. I hope you do it and are successful!
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Old 07-21-2012, 01:11 AM   #47
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Funny I stumbled upon this post. I live in Portland, OR and am in the process of all this now. I am into it for a while and I can tell you that $10,000.00 is not enough money. Not even for a small 1/2 bbl brewmagic system which is what I have. Feel free to PM me if you want to talk more. There is also an article in next Friday's Living section of the Oregonian that I am interviewed in that explains alot of the pains involved with it. If you are a member of the OBC, find me at the next meeting.

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Old 07-21-2012, 05:21 AM   #48
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Very nice Pono. I noticed your PM before I viewed the forum and saw your post. I'm not a member of the Oregon Brew Crew, but would be interested in checking out. Like I said I'm in the very early stages of this, mainly just asking questions and building a network of people I can talk to. Who knows, maybe I can find a few passionate people with money and the know how and we can all work together. Anything is possible with the right strategy. I just thought this forum was/is a great place ask questions.

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Old 07-21-2012, 06:32 AM   #49
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SweetAmmonia, the OBC hold monthly meetings at FH Steinbart's and will have a booth at the Oregon Brewer's Festival if you want to learn more about them.

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Old 07-21-2012, 07:00 AM   #50
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I think OR is fairly well set up for smaller breweries and I am also doing some research on nanos. I really believe you could launch one for 20k in the right area with the right equipment and a few hook ups. Up by Mt Hood the area is classified as open zoning so things are a little more lax. We also have 13 bars/restaurants, 2 gas stations, and 1 grocery store with a massive beer selection(especially 22s). The bars also sell 22s. So if you found a cheap garage or shed to rent, skipped buying kegs and only bottled 22s, got a small labeler for around $200, and self distributed you could probably start small and fairly cheap. Plus it's a tourist area where local things can be pushed harder. This would however be more like a proof of concept instead of a full blown end game. But if you planned to only stay in the local area and exploit everything available you might see a decent profit. I believe this is why so many nanos are able to do well in so many small towns in OR.

Hook ups and cheap would be little things like making your on stand and system with a friend who welds or can get cheap metal. Building a cold room like John Beere. Find a good house yeast that will work with all of your beers at the same temp so the cold room can do the work of expensive glycol systems. Making inductor tank fermenters like Hess. Having Major malt/hop distributors within driving distance. And as always, Craigslist.

Granted a lot of this is still INCREDIBLY inefficient as far as labor. But it's a labor of love. It's a lot easier to recover from failing small than blowing 250K.

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