Microbrewery Components?

Hey,
Anyone know where I can learn more about the equipment needed in a Microbrewery? I am just now starting to think about opening a brewery or a brewpub but have never worked in a brewery so am a bit skittish to do anything with my current knowledge of the business.

I know there are schools I can attend but with a full time job I'm not sure I can do that too unless its really necessary.

Cheers,
Tim

There is some information from guys on the forum who have done it or done it in the past.

Other resources are ProBrewer.com: An Online Resource Serving The Beer Industry and there are several books on Amazon.com relating to this topic.

From personal experience (not brewery related) the best thing you can do is go work in a microbrew and see what you can learn and if you like it. What seems like a cool idea can become a nightmare when you have to meet payroll, fire & hire people, deal with irate customers, etc. I had one business for 15 years that I loved even though I had to go through many of the ups & downs. I also had one business for 1 year that seemed like it would be fun and was a nightmare from start to finish.

You can't really get any of that from a book, course or other peoples experiences - go clean out some mash tuns for a few months.

samc said:

From personal experience (not brewery related) the best thing you can do is go work in a microbrew and see what you can learn and if you like it. What seems like a cool idea can become a nightmare when you have to meet payroll, fire & hire people, deal with irate customers, etc. I had one business for 15 years that I loved even though I had to go through many of the ups & downs. I also had one business for 1 year that seemed like it would be fun and was a nightmare from start to finish.

You can't really get any of that from a book, course or other peoples experiences - go clean out some mash tuns for a few months.

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Well, working in a brewery sounds like an excellent way to gain some exposure to the business. The only problem I see with that is that I currently have a full time job and live in the sticks of TN. Unfortunately TN doesn't really have many breweries either so there's not many opportunities for this.

However, a couple of guys here in the town I live in did get their licenses to start up a brewery so hopefully I can work with them and gain some experience. The only issue is that they are just going to be doing this part time as they too have real jobs that pay the bills.

Thanks

I have been thinking about the same thing and am not far from you, just got a sabco for recipe developement. Will PM you

You could checkout MoreBeer!Pro | Professional Brewing Supplies to get an idea for larger equipment costs

Best of luck to you

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Brewery tanks, fermentation tanks | Bolz/Edel | vessels for breweries, brewing industry

Have fun
ClaudiusB

ChefyTim said:

Hey,
Anyone know where I can learn more about the equipment needed in a Microbrewery? I am just now starting to think about opening a brewery or a brewpub but have never worked in a brewery so am a bit skittish to do anything with my current knowledge of the business.

I know there are schools I can attend but with a full time job I'm not sure I can do that too unless its really necessary.

Cheers,
Tim

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Depends on what exactly you intend to accomplish and how far you're willing to go in terms of expense and mechanicals.

You can brew world-class beer on what amounts to a homebrew system writ large - direct-fire kettle, insulated (but unfired) mash/lauter tun, fermenters and conditioning tanks in separate cold rooms - to a very intricate system with steam-fired brewhouse, jacketed tanks with glycol cooling, automated grain feeding, the works.

It's not cheap, it's not easy. There's a pretty high bar to entry in this business, both in terms of knowledge and capital. People like me (see the first link in my sig) can provide the former; the latter is up to you.

NOTE: This is not a sales pitch! I'm willing to dispense general information because I'm generally a nice fella and want to help people.

Have you done any market research yet? That's your first step.

Cheers,

Bob

Did your brewer just quit without notice? I can help you through the transition. Let me keep your taps open - at the same time, I'll streamline your brewery operation, search for a new brewer and train him after you hire him.

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Automation, automation will solve some of the problems.
Bob, nice web.

Cheers,
ClaudiusB

If it helps, i'll do product testing.

The most important component is Capital.
The business plan comes second.
Facilities and employees run third and forth.

Without capital, it really doesn't matter.

thataintchicken said:

The most important component is Capital.
The business plan comes second.
Facilities and employees run third and forth.

Without capital, it really doesn't matter.

Click to expand...

Yep, that's what I was thinking. I have looked around a little at this point for any kind of grants that might help with this as I pretty much have zero capital at this point. I'm sure I can however find some investors but was hoping I could acquire most of what I needed without owing anyone anything. I know this is pretty much a pipe dream but a place to start. Also, from what I've heard our new President is giving away money to those that want to create jobs so hopefully there's something out there.

Market research? Well, there's not many breweries in the state of Tennessee so the majority of microbrew comes from out of the state. I know we have had two brew-offs in our little town of Cookeville and have had a pretty good turnout. Although I would say most of the beer swillers are the Miller Lite type of drinkers. The further you go back into the woods the more Miller and Bud cans you find under the leaves. However I am seeing a bit of change towards the more flavorful brews so I do think there is a market.

Anyway, I know I have a lot of research to do on funding, equipment, market, etc... before I can really get knee deep into getting serious about this.

Thanks for the input,

Tim

Well, unless you've got a source of pretty much unlimited operating capital, it sounds like your market would best support a nice restaurant that just happens to have a brewery in it.

That means location, location, location. That's slightly different than the tired old saw you hear about simple real estate.

First, study the proposed area(s). Pull out a good old paper map, stick it on the wall and draw 5-mile rings at 5, 10, 15 and 20 miles. Then contact your census bureau to get population density data for those areas. You're looking for a rule-of-thumb concentration of ~150,000 people within 15 miles of your place. If you've only got 20,000 people, it doesn't make much sense to go to the other Locations.

Second, is your proposed location in the right neighborhood? You could have great population density, but a hip, upscale brewpub in Boca Raton doesn't make sense - even bringing in Benny Goodman as a live act isn't going to move $3.50-4.50 pints in a place like that. You're looking for a different demographic.

Third, how easy is it to get to you? Can you get to the bar from the major flow routes with a minimum of turns? Is there sufficient parking, and if so what's it like? Is there a traffic signal? Is there a lot of foot traffic? Is there an office complex close by?

There's a list of other things to consider. I think you get my point.

Bob

thataintchicken said:

The most important component is Capital.
The business plan comes second.
Facilities and employees run third and forth.

Without capital, it really doesn't matter.

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flip 1 and 2 and you have it right.

WW450 come over, bring the girls, and you can test my product batches Heh cool, just noticed your in Sparta too, small world.

thataintchicken said:

The most important component is Capital.
The business plan comes second.
Facilities and employees run third and forth.

Without capital, it really doesn't matter.

Click to expand...

Usually, potential investors would like to see a business plan. I think a business plan is the very first thing you do in any business venture. That and a partnership agreement if you will have any partners.

ChefyTim said:

...

I know there are schools I can attend but with a full time job I'm not sure I can do that too unless its really necessary.

Cheers,
Tim

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As far as I know the only brewing related distance learning course is by the American Brewers Guild.

American Brewers Guild

Brewers currently working in breweries are able to study for an industry-respected brewing qualification, and those looking to switch careers can study and train while keeping their day jobs.

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While the romance of starting a brewery is great but the reality is pretty harsh if you have to purchase and operate a small system. It is not as glamorus but makes more economic sense to have your beer produced with your recipe by someone else until the restaurant side can support the beer production. A tenative budget figure for a 3 barrel system installed in a building not setup for brewing would be around $100K+ after state permits and tax bonds, ATF permits and tax bonds, local building permits for renovations, building contractors, and equipment purchase. It appears the golden age of the brew pub has passed and there are more of the bud light/coors light group than folks who will pay $3.50+ for a pint, the money is in the food sales side.

If you want to see how it all works, and dont want to work in a microbrewery first..... go on all the brewery tours that you can find... from BMC all the way to the local shop that sells to 1 or 2 local stores. Trust me they exist.

This would give you a much better view of the ups and downs and the whole spectrum of the business types. From the billion dollar enterprises to the mom and pop shops that barely make ends meet each month.

Just some thoughts. since the wife and I have been talking about just what it would take to open a pico-brewery on the side. Sell to one or two bars for a year or so, then see how it feels and works.

Dont need too much money to do that... just read all the threads of people who are doing just that!

Disclaimer - I could be all wrong about everything I say!

Cheers

Lucas

Be extremely careful if you are entertaining the idea of opening a microbrewery. Although alot of people will discourage the idea by saying most microbreweries/brewpubs fail, in reality, it is like 1 out of 7 or 8, but those ones that do fail falter because the people who started them didn't do their homework and weren't prepared for the inevitable problems (some catastrophic in nature) that are certain to occur when opening a brewery.

I have been discussing opening a microbrewery with a couple of friends and the discussions and homework are approaching a year and we're just now about ready to draw up the business plan. Knowing what you're getting yourself into is the most important step. You have to remember that opening and running a successful microbrewery takes time, dedication, and back-breaking work. It seems most peoples first mistake when deciding to open a brewery is they get too caught up in the romance of "owning a brewery" and think of it as homebrewing on a larger scale when it is anything but. In order to keep the microbrewery economically viable for the important first years while you are getting your brand off the ground, you will likely have to do most of the work yourself. That includes brewing 3-4 days per week and marketing your product to bars and liquor stores the other 3-4 days per week. It means potentially working 12+ hours a day, seven days a week. To create the next Sam Adams or Dogfish Head you will have to work your arse off to get the brand noticed - all the while producing top notch brew with a taste and richness that will appeal to the general consumer as well as the beer snob. You have to factor in the costs of sewage, plumbing, electrical, taxes, forms, fees, inspections, on and on and on which can FAR exceed the costs of new copper 15bbl or 20bbl brewing system. You have to look at securing starting capital that can exceed a $1 million and could even move into the $2 million realm.

It is a HUGE undertaking that will no doubt yield crushing debt for years to come, but if your smart and have done your homework and you work your tail off the rewards could far exceed the work it takes to get there.

The approach my partner and I have taken is starting small and working in steps. We are opening a taphouse first. We will be brewing 3bbl batches on a system Designed and Built by me. We plan to run the bar for a year or two while we finalize the business plan. Our operating agreement is laid out for investors and managers (US) and my partner and I will not be using any of our own money. Zero financial risk to us personally to start.

We have figured this two ways.
1. This will give us time to work on recipes and promote our brand locally
2. This will allow us time to find a larger amount of money to get the business where we really want it. Which is Kegs, Cans, and statewide distribution.

If you have the ability to do most of the work yourself then you can start out this way. According to our numbers right now, we will have spent about $30,000 when the doors open, (not including the brewing system). The brewing system is being built with money from a friend. He wanted to help in the building process and also wanted some of the equity shares in the company. This is not a great deal of money. We have it laid out in 10k shares and our goal is 100k. We have secured about half of that which will get us moving and the doors opened. 100k will insure our survival for 1 year with zero profits.

Weigh your options. It is a heavy burden to look for, get, and manage $1-2 Million. If things don't work out at that level it is very hard to changes things fast enough to recover. Starting small will allow you the flexibility go down the path that is right for you based on how business is currently working.

thataintchicken said:

The most important component is Capital.
The business plan comes second.
Facilities and employees run third and forth.

Without capital, it really doesn't matter.

Click to expand...

Sorry, but this is way off.

Kinda hard to get the kind of capital you need to open a microbrewery without a strong, solid business plan. Unless your planning on hitting up your rich uncle for the dough, most people will have to build the necessary capital from investors (who will want to see some sort of a business plan before investing their hard earned money) and banks (who will require a complete and professional business plan before even considering your proposal).

In reality, you need to draw up a strong business plan FIRST (this is coming from a business major who has run his own businesses before).

In order to make a strong business plan then you need to have a handle on location/facilities (i.e. a breakdown of leasing costs vs. buying the property outright, what location, square footage and ability to expand operations in the same location), equipment, raw materials/inventory for the first year, utilities, plumbing, electrical, payroll, taxes, licenses, fees, etc. BEFORE you begin to write out the plan. No bank will even touch an idea like this without a solid, REALISTIC, 2-3 year business plan with every variable accounted for - especially if you have less than stellar credit.

I too am working on going pro. Doing all the reading and studying I can before I start putting up money.

Have you thought about going the nano route? That is my plan. I figure for less than 5K I can have a pretty rockin' nanobrewery. That way you can really gauge how well your beer will be received and any problems can be dealt with on a smaller scale. So what if you are only selling to a few bars, restaurants, and liquor stores. The other thing is that I really intend to make more money off of merchandise (T-shirts and Hats), at least in the beginning. Of course my nanobrewery is strictly a side business and I have no plans of quitting my job. Good Luck!! Al

Check out this thread for my nano brewery build.


https://www.homebrewtalk.com/f11/aussie-brewery-build-248072/