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andyi

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Hey everyone!

I know this a home-brewing forum but since a lot of people seem quite knowledgeable here, I hope my post isn't considered too off topic or unrelated to this forum.

I want to start a microbrewery. I've looked at the costs, equipment, permits, etc so I know what I'm up against. I'm still not fazed or overwhelmed since I've run a business before and I actually find that challenging in a good way.

The one thing I don't want to do is make the beer. That means I want somebody who has the expertise to make a good brew and the experience of dealing with the large and expensive equipment. How would I find somebody like that?
 
Here's a question for you andyi; Do you actually like beer? I mean, it's wonderful and all to want to start up a business that can be successful, but we beer snobs are a cranky bunch and can tell if the product itself is shoddy or mismade. Another reason is if you hire a brewmaster that makes beer that tastes like cheese and beef tallow you'd want to have a discriminating palate tell him so, eh?
 
Here's a question for you andyi; Do you actually like beer?

I've got nothing against beer. :D

I mean, it's wonderful and all to want to start up a business that can be successful, but we beer snobs are a cranky bunch and can tell if the product itself is shoddy or mismade.

The business plan is to make a really cheap beer so it's not aimed at the sophisticated crowd. I got the idea when a few friends got together and we had a cheap beer tasting contest. The results were that "they all tasted the same" and "cheap, cold, and intoxicating = good."

Another reason is if you hire a brewmaster that makes beer that tastes like cheese and beef tallow you'd want to have a discriminating palate tell him so, eh?

If friends and I like it (see criteria above), it'll be good enough.
 
I've got nothing against beer. :D



The business plan is to make a really cheap beer so it's not aimed at the sophisticated crowd. I got the idea when a few friends got together and we had a cheap beer tasting contest. The results were that "they all tasted the same" and "cheap, cold, and intoxicating = good."



If friends and I like it (see criteria above), it'll be good enough.

Methinks this smells of troll post....

Just in case I'm gonna don one of these here flame retardent suits.

trell2.jpg
 
*scratches head* :confused:

How in the world do you see being able to compete monatarly against all the big guys that make crappy beer? Only way a small timer can do it is with product differentation, ie making a high qaulity product.
 
You want to make really cheap beer??? Dude that is already sold on tap at basically every bar in America.

Cheap as in price. The cheapest beer I've found in any store came out to just under 50 cents per 12 oz can (sales tax included). I've looked at the variable costs for the ingredients, packaging, cans, taxes, etc and I think that's simply way too much. If you can cut out the middleman and sell it yourself, I think you can reduce the cost considerably.

That's also another reason I'd need a brewer: my calculation for ingredients comes from looking at wholesale prices for malt, hops, etc and obviously prices vary considerably depending on which kind and how much you need.

How in the world do you see being able to compete monatarly against all the big guys that make crappy beer? Only way a small timer can do it is with product differentation, ie making a high qaulity product.

See above.
 
"If you can cut out the middleman and sell it yourself, I think you can reduce the cost considerably."

So you are going to open hundreds of stores in multiple states to get economies of scale? Because economies of scale is how they make cheap beer. You would have to be cranking out tens of thousands of cans a day, if not more.
 
Wow...just wow. I am glad Revvy put on the flame suit cuz here i go. Last time i got introuble because of a tread like this and will try to keep thisas nice as possible. This is just a bad idea...how are you going to cut out the middle man? One batch of beer on a large scale brewery can cost over $1,000 and can go waaaayyy higher and then you want to sell all the beer yourself?? IF you have been doing so much research have you not seen something called a distributor? Where i live you can't sell commercial beer WITHOUT a distributor by law...but without a distributor there is virtually now way you will get your beer sold. And you dont know one thing about beer. Im sorry but this is just not a good idea. And i am saying this because in this economy i don't want to see you loose all this money. Cheap beer...its called miller lite, budweiser, natura light, and many many more.
 
Sorry man but I just dont see this working. Most people already love Bud, Miller and Coors.
I live right outside of Boston and there are a few bars that already sell most of those beers from the cost of $1.00 to $2.50. I cant see you selling beer for 50 cents. The reason I cant see you doing this is because even when making cheap/crap beer you will have to pay for water, rice/malt, crap hops, and crap yeast. You will also have to pay for a brewer, the equpiment and a place to do this all in. See the reason good micobreweries/brewpubs do well is because they offer/sell something different that you cant find in a store or in a cheap/crappy 30 pack. Now dont get me wrong, im sure there is a ton of people out there that would love to drink nice tasty watered down crap beer for very very cheap as long as it got them drunk. The thing I dont think you are understanding is that more and more people today are finding out about taste and quality beer and there is a quiet beer movement going on.

Good luck though.

You give me $100,000 a year and ill brew whatever cheap beer you want :)
 
Here is a starting recipe for your crap beer....run it through some software to get the right amount:

5 gallon recipe:
10lbs of 2 row
.5 oz of Hallertauer
i pack of US-05

that will give you a beer over 5% ABV

Good luck
 
how are you going to cut out the middle man?

Sell it myself instead of having others sell it. Grocery/corner store markups are huge.

One batch of beer on a large scale brewery can cost over $1,000 and can go waaaayyy higher and then you want to sell all the beer yourself??

That's another middleman to cut out.

IF you have been doing so much research have you not seen something called a distributor? Where i live you can't sell commercial beer WITHOUT a distributor by law...but without a distributor there is virtually now way you will get your beer sold.

If I'm not mistaken, that's a small fee.

And you dont know one thing about beer. Im sorry but this is just not a good idea.

I understand and thank you for your concern. :)

And i am saying this because in this economy i don't want to see you loose all this money.

I've read an article recently that said sub-premium beers are going up in sales actually.
 
Or lure people to a single or very few locations.


People that buy cheap beer aren't going to drive any distance at all for cheap beer. You dont drive even an extra mile down the road when the beer costs the same where you're at. Only way people will travel for beer is if it is HIGH quality.
 
When i said "One batch of beer on a large scale brewery can cost over $1,000 and can go waaaayyy higher and then you want to sell all the beer yourself??" how is that another middle man to cut out?? I am saying it is going to be YOU pying $1,000 per batch of beer. And agreed a distributing liscence is cheap but let me get this straight. You are going to brew, open a store, load up your pick up truck and distribute, and run a business. Have fun
 
Do your research. Know your business, and do it better than anyone. You can succeed at anything you want in life. Last time I checked this is America. There are rules to follow and laws that you just can't get around when you’re talking about beer, the three tier law is one of them. Contact your local ABC or ATTB if you don’t know who they are you still have a ton of work to do.
Good luck to you, you are going to need it! (Along with a deeeeeep pocket)
Cheers
JJ
 
Where did you read this??? Do you not see that Bud, Miller and Coors are starting to market Ales and better quality brews because they are losing money?!

Look man I think you should take most fellow brewers/beer geeks information and opinions very seriously here. Most of us know what we are talking about when it comes to beer. We are all not full time brewers and most of us dont own a brewery but im sure at some point we have all thought about opening one or at least dreamed about it and it is very hard to do, especially if you are brewing cheap/crap/watered down brew.
 
People that buy cheap beer aren't going to drive any distance at all for cheap beer. You dont drive even an extra mile down the road when the beer costs the same where you're at. Only way people will travel for beer is if it is HIGH quality.

You stole the words right out of my mouth :)
 
I agree with most here though, if you believe you will make money and go forward with this then do it and dont listen to anyone but yourself.
 
Where did you read this??? Do you not see that Bud, Miller and Coors are starting to market Ales and better quality brews because they are losing money?!

Look man I think you should take most fellow brewers/beer geeks information and opinions very seriously here. Most of us know what we are talking about when it comes to beer. We are all not full time brewers and most of us dont own a brewery but im sure at some point we have all thought about opening one or at least dreamed about it and it is very hard to do, especially if you are brewing cheap/crap/watered down brew.

Thank You. The article he read must have been from like 1999. We arn't trying to be mean but this is just a TERRIBLE idea. I can GURANTEE that you will loose A LOT of money
 
Just a quick question to the OP....do you happen to be a college student writing a paper and are having us list out all the downside factors? This is just about the only way I can see it.
 
Well im sure if you have alot, and I mean alot of money to spend that you dont mind letting go then you could make this work. Unless you have though like $500,000 to a million dollars to spend you better think twice about going through with this. Also if you have that kind of money in my opinion please let me know and I will happily fly out to where ever you are tonight and we can sit down and talk about opening up a great place. :)
 
You want to open a brewpub that produces cheap watered down beer and sell it at a premium price?

Sorry but Rock Bottom already beat you to it.
 
Man, if you are dead set on this, you will need to be VERY close to a BIG college, preferably with a large graduate school (year round customer base). And don't forget you actually have to make some profit, so if the beer is dirt cheap, that means selling a lot of food.

Honestly I think you could buy kegs of BMC for the same cost that you could make your own swill beer for. This will also drastically reduce overhead and then if/when you have to shut down, you will have less equipment to liquidate.

Good luck.
 
Man, if you are dead set on this, you will need to be VERY close to a BIG college, preferably with a large graduate school (year round customer base). And don't forget you actually have to make some profit, so if the beer is dirt cheap, that means selling a lot of food.

Honestly I think you could buy kegs of BMC for the same cost that you could make your own swill beer for. This will also drastically reduce overhead and then if/when you have to shut down, you will have less equipment to liquidate.

Good luck.

I agree with the big college thing...no doubt.
 
Seriously man....there is no talking you out of it...you should just go for it.

It's not that. If on paper I can see that this is an unprofitable enterprise, then I'll go no further. So far though, everything I've looked at indicates that this is still try-worthy but there remain many unknowns hence my OP.
 
Well man as I said if you got the loot then we should sit down and talk because I live in the Boston area where good beer is a key $$$$$$ maker. I would love to open my own place someday but dont see myself haveing that kind of money anytime soon as im getting married next year, finishing up school and working all the time.
 
Um, I think it is a great idea, contrary to everyone else here. I think that the business plan is pure genious. NO other micro has ever attempted making cheap beer and selling it for less than BMC. You have a niche and should exploit it.
Id be up for an apprenticeship under your head brewer when you get this thing going!
 
Just a quick question to the OP....do you happen to be a college student writing a paper and are having us list out all the downside factors? This is just about the only way I can see it.

No, I'm genuinely interested in opening a brewery. I originally wanted info on finding brewers since then I could pin down the exact costs of everything and see if that's feasible. The "downside factors" were unsolicited :)

I understand the general difficulties of running a business since I run one right now.
 
Well man as I said if you got the loot then we should sit down and talk because I live in the Boston area where good beer is a key $$$$$$ maker. I would love to open my own place someday but dont see myself haveing that kind of money anytime soon as im getting married next year, finishing up school and working all the time.

i wouldn't even liek brewing this beer. day in and day out you would be brewing **** beer. That is un-homebrewer like :mug:
 
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