What keeps you from going pro?

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mackinskor

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Title said:

If you have so many recipes, why don't you sell your beer?
 
because the three-tiered distribution laws and permitting is a PITA.....

and I don't have the money to go big. I make good beer now; but I'm not at the point where I make repeatedly great beer.....
 
because the three-tiered distribution laws and permitting is a PITA.....

and I don't have the money to go big. I make good beer now; but I'm not at the point where I make repeatedly great beer.....

Forgive my ignorance, could you elaborate on your first sentence?

Pain In The Ass got it like 3 seconds after -- what does three tiered distribution mean?
 
Forgive my ignorance, could you elaborate on your first sentence?

Pain In The Ass got it like 3 seconds after -- what does three tiered distribution mean?

the way that most states regulate how alcohol is distributed and sold prohibits lots of homebrewers from being able to go commercial.

I can't remember exactly what it is :drunk: but it has to do with the fact that you as a producer can't sell directly to a bar or store. There's a middle man....

I'm sorry, if I wasn't half in the bag I'd be able to help more.....:mug:
 
the way that most states regulate how alcohol is distributed and sold prohibits lots of homebrewers from being able to go commercial.

I can't remember exactly what it is :drunk: but it has to do with the fact that you as a producer can't sell directly to a bar or store. There's a middle man....

I'm sorry, if I wasn't half in the bag I'd be able to help more.....:mug:

I'm half in the bag if not worse :) I plan on launching my line of beer within 10-14 months MAX which is why I ask.
 
I'm half in the bag if not worse :) I plan on launching my line of beer within 10-14 months MAX which is why I ask.

Then we can effectively communicate :D :drunk:

I can't think of the dudes name on here, but he wrote many threads about what it takes to go pro.....If I remember later, I'll let you know!

Good luck!
 
I'd love to go pro once I get things nailed down. One of my dreams is to open a brewpub...need money for the building, equipment, some schooling and obviously the government BS on just about every level that needs to be waded through.
 
I'd love to go pro once I get things nailed down. One of my dreams is to open a brewpub...need money for the building, equipment, some schooling and obviously the government BS on just about every level that needs to be waded through.

My original plan was brewpub but I figure if I can have a beer that is outstanding, that everyone loves, why not brew it and sell it??
 
I'm looking to have a main selling beer within 10-14 months; I started brewing 2 months ago in the first few weeks of November. This is a new conquest of mine, and naturally I was wondering what was holding some back, and of course, I was curious what else I could find out about stepping up to the big leagues.
 
For me it's the same reason I didn't study Astronomy in College. It's one of my hobbies, and I'd hate to think of what would happen if my hobby suddenly became "work."

Also, I just started brewing, so going pro doesn't even seem like a possibility right now. :D
 
The first thing is that a brewery is a factory and I've worked in a factory and know I don't like it. The second thing is that I would not likely come close to replacing my current income.
 
There are a lot of hurdles. There is a HUGE investment required to sell bottled beer in stores (including the 25% cut your distributor is going to pocket). For this reason, I have read that most brewers go pro in one of two ways: #1 Start a brew pub (brew pubs can sell their own beer without going through a distributor; doesn't require bottling) or #2 Sell kegged beer to local bars & restaurant.

Brew pubs are iffy start ups these days. You are talking about a $3 million investment that requires not just brewing know-how but restaurant management skills. Restaurants of all kinds are struggling in this economy--I wouldn't tie my dream to a restaurant. One of the ways around these risks would be to find an established, successful restaurant that would allow you to brew on premise but then you would need to lawyer up in order to determine what party has the rights to the beer etc etc.

Nanobreweries can be easy to start up or near impossible to begin depending on state law. The tax permits are often not that expensive (relatively speaking) or as difficult to get as you might think...it's more of a time deal from what I have read. If your state will allow you to sell kegs directly to bars and restaurants without needing a distributor, you have a prayer. Obviously, your future will depend on finding bars to buy your beer. If you make the right connections and have the local watering holes pushing your product, you'll be able to stabilize.

Read up and find out what your state laws are. This is an intriguing process, but for your sake, please don't enter it naively. It's not an impossible process like some make it sound, but it's sure as hell no walk through the park either.
 
The primary factor is money; any legalities are easily dealt with with enough money. Also, as someone else mentioned, there's the motivation. Running any business is a lot of work, and this is a hobby for most people. I have a love/hate thing for brewing, so maybe it would work for me. ;) Of course, I have no money to start such a business, so motivation isn't even a factor at this point.

I can appreciate your apparent desire. I'm the last person who would seek to quell one's dreams, but even if you were an experienced brewer that had 50 grand or so burning a hole in your pocket, 10-14 months is impossibly optimistic; it would probably take that long (or longer) just to cut through all the red tape of permits, licensing, etc. Laws vary from state to state, but generally speaking, you can't just brew beer in your garage or basement and sell it. Even if you could, you'd need a system large and efficient enough to make it worth your while. Basically, you need some sort of commercial property, with approval from the local zoning board, along with all the permits from the local, state, and federal government. This location would need to meet any applicable health codes - think commercial kitchen. IF you can acquire an existing bar or restaurant, that might put you ahead of the game if a brewpub is what you're looking for, but that's really a whole different animal. In Illinois there are various licenses and associated fees for breweries, distributors, brewpubs, etc. You'd have to research what laws apply for your location.

Anyway, this subject has been discussed here and elsewhere by people more knowledgeable than myself. To get some more insight into the biz, you can check out probrewer.com. If you truly have the desire, then by all means, go for it. Just be aware of what such an endeavour entails.
 
I have absolutely no desire to go pro.

1.) I make too much money in a job that offers me no satisfaction whatsoever.

2.) I enjoy brewing too much to want to make it a necessity.

3.) My Nigerian uncle's lawyer has yet to send me my 4 million dollar check, as promised. I already sent him my $2k. WTF? The email said I'd have my money within the month.
 
College and time.

I plan on volunteering at a brewery next semester and then hopefully getting a low-level position in a brewery after graduation. As for my own place, I don't plan on that happening for a while. I want to have a good amount of experience in a professional setting before setting out on my own.
 
Because I like actually making money, and because the recipe itself is about 1% of what you need to nail in order to be a successful brewery. Recipes are dime-a-dozen (****, many of the best breweries give the damn things away to us).
 
It's definitely possible, with enough desire and time and money. I know that start-up breweries open and close all the time. If it's something that you have a burning desire to do above all else, then go for it!

As for me, I love brewing. I like everything about it. The more I learn, the more I love it. I love trying to understand water chemistry, and I love learning new things. That's why it's my hobby. If it was my job, I doubt I'd love it so much. I also like my income right now, and would never try to start up a nanobrewery.
 
Money is the only thing stopping me.

Have enough money, you can clear all the regulatory hurdles that the states throw in our way.

Lets look at it this way. A local winery can sell directly to local businesses without a distributor and the license for production is under $2000. A brewery needs to have a distributor, cannot sell directly to consumers or restaurant/bars and needs upwards of $20k in licensing. That's alot of money to put outfront before you even have the chance of failing, as most small businesses do...

BTW, those numbers are about a year old but AFAIK they haven't changed.
 
Money is the only thing stopping me.

Have enough money, you can clear all the regulatory hurdles that the states throw in our way.

Lets look at it this way. A local winery can sell directly to local businesses without a distributor and the license for production is under $2000. A brewery needs to have a distributor, cannot sell directly to consumers or restaurant/bars and needs upwards of $20k in licensing. That's alot of money to put outfront before you even have the chance of failing, as most small businesses do...

BTW, those numbers are about a year old but AFAIK they haven't changed.

The licensing costs vary quite wildly by state. I did some research for setting up in GA (a 3-tier state) recently and the gov costs were only a couple thousand.
 
The licensing costs vary quite wildly by state. I did some research for setting up in GA (a 3-tier state) recently and the gov costs were only a couple thousand.

We can thank the "Local Option" provision of repeal for this particular form of bureaucratic crap...
 
I took one passion, music and sound, and made it a career. I have never looked back. I've opened two recording studios and absolutely love what I do. Brewing is something that I do for pure enjoyment, it's mine to share or keep completely to myself. There is no pressure to do it or any reason for me to not want to do it. I started brewing because I love beer and wanted learn more about it. I have a career that I love but that can quickly still become "work". I don't want to ever look at brewing as work. I'm good at it, I enjoy it and my friends and family get to enjoy the fruits of my labor.

I am of the school of thought that you should go for your dreams, but be very aware of what you are getting in to. I've owned three companies and wish I had never opened two of them. Not because they were not successful (one was not), but because once I started REALLY doing all that was involved in them, I realized that I did not like it! The one company that I maintain today happens to be the one that I spent the most time researching, understanding the business and all that is involved AND started the slowest.

Best of luck to you!
 
Not sure why some of you are so scared of the three tier system (producer, distributor, retailer) with the proper licensing and business structure you can be all three. Many brewery owners form a seperate entity to be the distributor......brewery sells beer to the distributor, distributor sells to retail....more of a paper trail and proper licensing than anything, either way the brewer/dist owner keeps more of the profits. On the retail side, again with the proper licensing, you can sell your product on site. Haven't you ever seen 6 ers or bombers being sold at a brewery/tasting room?

Oh, and I agree with whoever said that recipies are the least of your worries. Having $100,000-$500,000 in startup money, CONSISTANTLY making top notch beer, having a good location, having good staff, having a viable business plan....all things to consider.
 
In my experience don't turn a hobby that you enjoy into an every day job. I did it for about 2 years with customizing motorcycle's. I made good money at it but after the initial high of doing what I loved every day it started to get to the point that I started to just think of it as a job . So I shut it down and it took a couple of years for me to start enjoying it again. I now only do 1 or 2 bikes a year for friends.


I have been doing homebrew a few years and have yet to come to the point that the beer is consistent enough that I would even consider selling it. I even have a place where I could brew and sell it friend is part owner of a very successful brewpub .
 
Not sure why some of you are so scared of the three tier system (producer, distributor, retailer) with the proper licensing and business structure you can be all three. Many brewery owners form a seperate entity to be the distributor......brewery sells beer to the distributor, distributor sells to retail....more of a paper trail and proper licensing than anything, either way the brewer/dist owner keeps more of the profits. On the retail side, again with the proper licensing, you can sell your product on site. Haven't you ever seen 6 ers or bombers being sold at a brewery/tasting room?

Thats not true in every state. In Missouri, no entity can have ownership in businesses on multiple tiers (brewpubs excepted). I assume some other states are the same. This is why Gordon Biersch had to sell its restaurants. Boulevard Brewing in Kansas City had to start making wine in order to be allowed to sell beer on premises.
 
In Colorado, individuals can form a seperate entity to be the ditributor.....so if 2 guys own the brewery, those 2 guys can form another entity that is a distributor....brewery sells to dist....same 2 guys still get all the money!

Or another easy workaround if indeed the same people can't own the distributorship...have the 2 guys wives form the 2nd entity.
 
In Colorado, individuals can form a seperate entity to be the ditributor.....so if 2 guys own the brewery, those 2 guys can form another entity that is a distributor....brewery sells to dist....same 2 guys still get all the money!

Or another easy workaround if indeed the same people can't own the distributorship...have the 2 guys wives form the 2nd entity.

Wouldn't work in Missouri. There is a reason some states have more small breweries than others, and it isn't the water.
 
In order to appeal to the masses at some point you wind up dumbing down your product so that more people want it. Triple hopped blueberry wheat beer with cardamon might not be a big hit everywhere. I've been through this problem with other businesses and have no desire to go through it again. Sticking with home brew unless someone throws a few million at me and says the world must have your beers. LOL
 

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