10k USD to start a home brewing business. Possible?

[SweetAmmonia]

Salutations,

I was wondering if ten thousand dollars would be enough money to start a small home brewing business. I'd need to cover legal and equipment in Portland, OR. I've read that Dogfish Head started with just a ten gallon home brewing system. Thanks in advance for you time and advice. Also, I might be interested in teaming up if anybody is local.

 

[amandabab]

no.

 

[evrose]

Add a zero to the end of that 10K and you'll be about 20% of the way there!

 

[wubears71]

Develop a business plan and see if you can do it.

 

[BrewKnurd]

You'll need to cover a building as well, unless you have one. Part of being a licensed brewery is not doing it in your home. At least that is my understanding.

 

[IrregularPulse]

$250,000 seems to be a minimum number that gets thrown around here to start a brewery.

Can you clarify what you mean by home brewery?

 

[WesP]

Based on what i've heard from other breweries, you need to build a start-up brewery with at least 10-15 BBL of production capacity minimum if you want to be successful. This will cost you several hundred thousand dollars. Plus you're starting up in Portland, OR---the microbrewing capital of the world.

While there may be successful breweries at the nano/pico level, your chances of success are very slim.

Check out this article by soundbrew.com. They are a brewing equipment supplier. http://www.soundbrew.com/small.html

You need investors and or a business loan to make your brewery become a reality. Start with a good business plan and a line of recipes that have won some awards.

 

[Phunhog]

It can be done. Check out this thread...https://www.homebrewtalk.com/f14/things-i-learned-going-home-nanobrewer-137210/ However you have to have the right zoning so you don't have to lease a building. I have been following him for a few years now. It sounds like he covers his costs and even makes a few bucks but that is about it. I believe he is an attorney and the brewery was started as part of his MBA project? Honestly though it is probably cheaper in the short term to just give away your beer BUT sell brewery merchandise (shirts, caps, stickers, etc....) I have been pretty successful doing this!! It covers most of my brewing costs, gets people to try my beer, and best yet is that I get free publicity when people wear my logo around town. I am still years away from opening but I am building a customer base.

 

[reinstone]

make your best and then find investors.....there are two new micros near me and the beer they produce is rancid #@$$#$5!!!!!! They wont be around long.....it takes more than $......Oh yeah and this place charges $7 a bottle for a beer that tastes worse than beers I have made that I wont let anyone else try. The being said- I think that starting is expensive-the 10K should allow for the equipment to produce enough and consistent results to take you to the next level. If you are serious-Good Lucl

 

[Mongrel]

You'll need to cover a building as well, unless you have one. Part of being a licensed brewery is not doing it in your home. At least that is my understanding.

In Oregon, he can do it in his basement. He'll just have to give TTB/OLCC 24 hour access to it.

 

[VagabondBrew]

Short answer no
Could you "start" towards one yes but you will quickly need a lot more capital.

Having a property in Oregon zoned right and isn't connect to a house will cut down costs. Starting the company is $100 depending what you form. You could get a system for under 10k but then everything else needed to be successful would pass 10k pretty quick. Despite the 250k being the normal. You could do it for under 100k and depending on how quickly you realize you want to transition from nano, add anywhere from 50k - 100k more for the upgrade.

 

[SweetAmmonia]

I'd like to start off by maybe just trying to get a few of my kegs into local pubs. I was thinking about adapting my 3 car garage that is extremely clean into where I brew. I have no plans to get a separate building if I can find a way around it. I just want to start very small and simple. Maybe if things pick up and my brews are well received I'd like to do something like Captured by Porches, which is a brewery food cart here in PDX. http://capturedbyporches.com/

 

[SweetAmmonia]

"A 3 or 4 barrel microbrewery (wholesale production) is doomed to either fail, or enslave its operator with interminable hours and little compensation until he can upgrade his equipment to a large enough system to become profitable on. In many instances the venture self destructs and visits financial ruin upon the owner."

Not looking good.

 

[SweetAmmonia]

$250,000 seems to be a minimum number that gets thrown around here to start a brewery.

Can you clarify what you mean by home brewery?

I was just thinking about kegging and hustling my brews to local pubs. Just a really small operation. From what I've been reading here this might not even be profitable.

 

[BrewKnurd]

In Oregon, he can do it in his basement. He'll just have to give TTB/OLCC 24 hour access to it.

Interesting.... I don't know if that's a worthwhile tradeoff or not, but interesting option!

 

[Mongrel]

Check out Below Grade Brewing in Bend. The guy started amazingly small, brews in his basement, and sold all his initial beers at local farmer's markets with $15 day permits from the OLCC. You'll probably have to keep the day job, but you can start small. I don't think he even has a website yet, he was still just using his facebook page last time I searched for a site. (ok, still no site)

According to this, he had to only allow access to the basement brewery from an outside door. So, there might be some additional home improvements involved.

 

[Phunhog]

I think it ultimately comes down to what your goals are for having a brewery. Do you want a career change or just take brewing to another level. This article deals with "nano" winemakers but I think it has a lot of relevance for us brewers.http://ventanamonthly.com/article.php?id=668&IssueNum=74 I think they are on the right track!! They are starting small vineyards not to make money but rather because they love it!! Some readily admit that they will never be profitable and they are ok with that. I see operating a nanobrewery the same way..if you aren't doing it out of love why are you doing it at all?

 

[BrewKnurd]

According to this, he had to only allow access to the basement brewery from an outside door. So, there might be some additional home improvements involved.

Ah, so that might be the key to the basement thing. Its in the same building, but is essentially completely isolated from the residence.

 

[ReverseApacheMaster]

Ah, so that might be the key to the basement thing. Its in the same building, but is essentially completely isolated from the residence.

That's how New Belgium started, at least according to the brewery tour.

 

[integra93ls]

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?

 

[omokoro]

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?

Read Sam Calagione's Book, "Brewing Up a Business". You're missing the part where the distributor takes his piece, and the retailer takes their piece. Unless you're going to self-distribute. And beer doesn't sell itself. The beer business is extremely low margin. This means you need volume to turn a profit.

 

[davidr2340]

Foggy Noggin Brewing. Pretty damn good brewery about 5 miles from my house... 1/2bbl set-up... Tonight he's on tap at Pike Brewing.

 

[evrose]

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?

This is so stunningly oversimplified that it's sort of cute, right down to the use of "u" instead of "you".

 

[onthekeg]

You most totally can if you contract brew! Thats what I am doing. I am working on the brand, but its only 6k for me to get my first batch of beer brewed and packaged.
I figure if the beer does well, I will add a couple and build by brewery with an established market. If not, I spent some hobby money.

 

[ReverseApacheMaster]

You most totally can if you contract brew! Thats what I am doing. I am working on the brand, but its only 6k for me to get my first batch of beer brewed and packaged.
I figure if the beer does well, I will add a couple and build by brewery with an established market. If not, I spent some hobby money.

Does that include your licenses, taxes and approval for labels?

 

[slamram99]

http://www.probrewer.com/vbulletin/showthread.php?t=24441&highlight=nano

read this article. It will help you. This is a local guy down here in louisiana.

 

[onthekeg]

Does that include your licenses, taxes and approval for labels?

The 10K does.

 

[SweetAmmonia]

Check out Below Grade Brewing in Bend. The guy started amazingly small, brews in his basement, and sold all his initial beers at local farmer's markets with $15 day permits from the OLCC. You'll probably have to keep the day job, but you can start small. I don't think he even has a website yet, he was still just using his facebook page last time I searched for a site. (ok, still no site)

According to this, he had to only allow access to the basement brewery from an outside door. So, there might be some additional home improvements involved.

I contacted Dean the other day. He has been super accommodating to my questions about the brewing business. Thanks for the source.

 

[ChuckO]

Always nice to have a holes around. YOU are so worried about how people spell!!!!!! Does it make a difference ?

It certainly would make a difference to a banker if he were thinking of loaning you money based on a business plan.

 

[midfielder5]

Read Sam Calagione's Book, "Brewing Up a Business". You're missing the part where the distributor takes his piece, and the retailer takes their piece. Unless you're going to self-distribute. And beer doesn't sell itself. The beer business is extremely low margin. This means you need volume to turn a profit.

I also recommend this book. Sam was brewing two (or was it 3?) times a day on his 10 gallon system.