I went "pro" - What it actually takes to do so

[cdubbaya]

Cool thread, way to take a risk for a dream Cape!

We're also in the process of starting a brewpub here in Minneapolis, just filed the TTB license last month. We're thinking somewhere in the 7-10BBL range, brewing twice a week to start. Nothing special on the food side, probably grilled sandwiches, burgers, pizza, etc.

Do you mind if I shoot you some questions as we move along? We've got a location and will be sourcing equipment by the end of the month. I'd love to stay in contact with you and any other HBT members that have gone the nano (or bigger) route.

Again, great job! I liked your FB page so I can keep up with what you've got going on.

Cheers! (Go Pack)

 

[Cape Brewing]

Absolutely. Would love to help.


Ps. Packers!! Cute.

 

[bob1852]

psssssst. Just add honey.

 

[Cape Brewing]

psssssst. Just add honey.

I will freaking punch you... SO HARD!!!!!!!!!!!!!!!!!!!

Don't you, Moto, and Hoppy have some deep thoughts to hash out somewhere!!!?!?!?




... and PS... laugh it up all you want... We've had that beer on tap a few times now and the longest it has taken a 1/6th keg to kick is about 30 minutes. So take that and your cute little NHC medals and cram em up your cramhole!

 

[bob1852]

You know I'm just jealous. (Just don't tell PTN)

How's the pipeline holding up?

A new brewery here is having all sorts of problems meeting demand so their hours are all over the place and they've resorted to rushing beers to try to keep the taps flowing (vegetal four week trippels are not good).

 

[Cape Brewing]

Pipeline is brutal. We cant keep up. We have gone the ither way though and just simply prepped our accounts letting them know volume is very limited. We are being invited to beer fests and turning them down due to volume constraints. We will not put a beer out that isnt exactly what we want. We have a blonde right now we aren't 100% happy with (juat didnt fully attenuate) and we immediately pulled it.

 

[LoloMT7]

Pipeline is brutal. We cant keep up. We have gone the ither way though and just simply prepped our accounts letting them know volume is very limited. We are being invited to beer fests and turning them down due to volume constraints. We will not put a beer out that isnt exactly what we want. We have a blonde right now we aren't 100% happy with (juat didnt fully attenuate) and we immediately pulled it.

Keep up the good quality control work. It will payoff in the end

 

[Cape Brewing]

Reality is we are such small volume that pulling a batch, while certainly not a fun thing to do, isnt a huge money loss issue for us.

We are absolutely making sure the beer is exactly how we want it before we put it on tap

 

[AVLbrewing]

Reality is we are such small volume that pulling a batch, while certainly not a fun thing to do, isnt a huge money loss issue for us.

We are absolutely making sure the beer is exactly how we want it before we put it on tap

Are you guys doing smaller test batches on the side still (like with the blonde), or are you maxed out with production?

 

[KeyWestBrewing]

Are you guys doing smaller test batches on the side still (like with the blonde), or are you maxed out with production?

Not to answer his question but he did mention them having the same system at home as in the brewery IIRC. So they probably do testing on their home setups and bring the recipe over when its ready. Just guessing here though.

 

[Cape Brewing]

Right now we are flat out just trying to keep the fermenters fill with our three initial beers. We have some ideas for another beer or two but just haven't had the time to dive into them yet.

Yeah, we all have our home systems that. We'll fun test batches on. One nice thing is that because there are three of us, we can run multiple, slightly varies recipes and pick the best... And then do another round until we get it the way we want it.

 

[Lagunitas]

So do you think at some near point you will be turning a profit? Guessing you may already know this, but if you don't make a profit, in 3 of the next 5 years, then the IRS will consider the brewery as a hobby, so any deductions you make for equipment, etc will be disallowed.

I've seen some people run into this issue before (well they actually expected to make a profit) then get blindsided with a big tax bill when they don't make it. Not trying to be a downer, but just giving you a heads up.

This is true. If you don't make a profit in a certain number of years, it could be considered a hobby which will prevent you from taking "for" agi deductions on losses and force you to take them as itemized deductions subject to a 2% floor


good luck in the future. You can do it

 

[Cape Brewing]

I'm not worried about it. We're already profitable... just not on some huge scale. We are in the black already, but again, just not like we are raking in millions of dollars.

 

[HeavyKettleBrewing]

I'm not worried about it. We're already profitable... just not on some huge scale. We are in the black already, but again, just not like we are raking in millions of dollars.

Nope, more like raking tons of grains. Keep mashing, blue is only a tip jar away.

 

[Ryush806]

Nope, more like raking tons of grains. Keep mashing, blue is only a tip jar away.

Speaking of raking tons of grain...what are you doing with all your spent grain?

 

[doubletapbrewing]

Love to read this thread as an accountant myself. I am in the very beginning stages of opening a brewpub myself and these tax issues are the first thing I thought about. Once I get into it a little more, I would lov to talk with you about how you got started with the licensing process.

 

[Cape Brewing]

Speaking of raking tons of grain...what are you doing with all your spent grain?

Donchooworryboutit.

 

[Cape Brewing]

Love to read this thread as an accountant myself. I am in the very beginning stages of opening a brewpub myself and these tax issues are the first thing I thought about. Once I get into it a little more, I would lov to talk with you about how you got started with the licensing process.

No problem. PM me when ever

 

[Ryush806]

Donchooworryboutit.

Haha that doesn't sound shady or anything...

 

[T-Dan]

Wendell's wings suck. Their sauce is the best in NE but they pour that sauce over tiny, overlooked pieces of cardboard. 3.5 is for Nancy's. Suicidal is so much better and Double Dare makes you forget how bad the wings are. Now you know the truth.

I grudgingly agree about the wing size, but it is the best sauce. tried suicidal; they are good but not when i want a lot. the best time to be there is when they are making contest wings. you can't even breathe.

I get a pint or tow of 3.5 and hotter when i am up there and mail it back to myself in florida. then i put it on big ole wings!

 

[TrickyDick]

Donchooworryboutit.

I wanted to ask this question too! I only do 10 gal at a time, but unexpectedly had two weeks off and brewed up just shy of 100 gal. I tried to coordinate with local farmers to pick up grains.
Each day I'd have 20-25 lbs dry weight wet grain to get rid of. One guy came to pick it up and never came back the other agreed upon days. I think he was expecting way more grain. In the two weeks I had over 200 lbs of spent grains that went to the curb and garbage truck. Felt depressed that I couldn't be ecologically responsible?

Great thread BTW. I am not gonna quit my day job anytime soon, but got to respect the passion and guts to go for glory doing something that you love.

TD

 

[brewmcq]

Amazing post, and I friggin LOVE your website design..

A few things..

I cannot wait for my next trip to MA.. I'm going to track you down (or, at least, your beer).. better yet, a brewery tour.. ;-)

My partner and I are working towards doing a nano with a tasting room.. 5-year plan, so this is a great read.

Oh.. re: website: get your Twitter, Facebook and G+ displayed on the header somewhere so we, your new visitors, can quickly access them... I just happened to stumble across the links for them in your blog.

Keep up the great work!! As a born, bred and dyed-in-the-wool New Englander, I do grow weary of hearing about mini-, micro-, nano-brew explosion in the Pacific Northwest. No offense to them, but the Atlantic Northeast is pretty friggin cool too.

Cheers!

 

[Komocabo]

Yah, I want to go this route too, but I live in Eugene Oregon and it is just saturated with breweries around here... I still plan to.give it a shot in the next few years, but it will be hard to make a name for myself, especially starting out.

Great thread! This was some great insight

 

[KVANTAN]

Congrats! Yeah the paperwork and bureaucracy is a major deterrent for me, not to mention paying rent on a property for months without being able to operate. Good luck!

Complying with all this senselessness is as bad as endorsing it. Unfortunately this is the same story in EVERY industry in the USA. It's just as hard to open a bank as a bakery. In fact I could open an investment bank for less than a bakery. Where are all the Rosa Parks?

 

[paulthenurse]

Are your followers in this thread really comparing you to Rosa Parks, Brian?

Seriously?



That's right, Cape! Refuse to go to the back of the brewery bus! Stand up to the man! Screw Jim Koch, Adolphus Busch and Vinny! You're there, you brew beer!

Lets everyone join hands and sing Kumbaya!

 

[paulthenurse]

I had to go away for a bit just to try to get my head around this. Couldn't quite do it.

Brian S being mentioned in the same conversation as Rosa Parks! Even for this thread that brings ball washing to a new low.

 

[mendesm]

Wow, I missed this thread. Congratulations!!!!

Can I get in touch with you and take a few minutes of your time?

I'm about to start the TTB paperwork for a nano too.

 

[pdxal]

Amazing post, and I friggin LOVE your website design..

A few things..

I cannot wait for my next trip to MA.. I'm going to track you down (or, at least, your beer).. better yet, a brewery tour.. ;-)

My partner and I are working towards doing a nano with a tasting room.. 5-year plan, so this is a great read.

Oh.. re: website: get your Twitter, Facebook and G+ displayed on the header somewhere so we, your new visitors, can quickly access them... I just happened to stumble across the links for them in your blog.

Keep up the great work!! As a born, bred and dyed-in-the-wool New Englander, I do grow weary of hearing about mini-, micro-, nano-brew explosion in the Pacific Northwest. No offense to them, but the Atlantic Northeast is pretty friggin cool too.

Cheers!

God, it's awful here, 52 breweries in Portland, Oregon and 69 in the metro area. Horrible.
http://oregonbeer.org/facts/
Get the NE working on the same thing, will you?

 

[Cape Brewing]

Just as a quick update... things seem to be going pretty well (knock on wood). We have been officially opened for about 3 months and have sold, by our standards, a lotta beer. At this point, all of our beer sales have basically been unsolicited. We approached two places (really just one and the other suggested it) about having release parties and the beer has flown out of the brewery from there. One release party location has put us in the permanant rotation while the other has given us two whole taps. All of the other beer we've sold (a couple special events, supplying the rotational and permanent taps, and now possible more accounts) has all been bars/people basically coming to us, which is pretty cool.

Everyone we talk to brings up expansion and we're really trying to fight that urge. We're focused right now on slowly growing and managing the brewery as an actual business... steadily growing sales (although we're basically at capacity now), controlling expenses to ensure profitability on a monthly basis, trying to maintain what feels like a good reputation so far...

so... so far so good.

mendesm... if you want to swing through the brewery some time, I'll answer any questions I can. We constantly update our Facebook and Twitter pages on when we're brewing and it is pretty rare that we aren't brewing on a Saturday morning.

 

[Cape Brewing]

I cannot wait for my next trip to MA.. I'm going to track you down (or, at least, your beer).. better yet, a brewery tour.. ;-)


Cheers!

Absolutely! Stop in whenever. you might wanna PM me and make sure we are going tobe there but yeah, stop in!

I can give you the VIP tour... "turn your head to your right... see those pots two feet in front of you? That's the rig. turn your head to the left. see those tanks three feet in front of you? Those are the fermenters. This concludes our tour. That'll be $9."