Imaginary brewery costs

[Nicedwar]

School project: develop a business plan for a project of your choice.
Brewery:
I'm not sure how much some equipment might cost. Any guesses appreciated:
brew kettles - large
brew kettles - industrial
5 gallon kegs
half kegs
full kegs
a beer tap for a pub
barley per pound
wheat per pound
yeast per pound

any other costs you can think of appreciated.

 

[Spyk'd]

Is this our project or your project? You can get most of this information by shopping a few homebrew shops online. That is unless you're going to do a business plan for a commercial brewery. If that's the case, a homebrew forum would be a poor place to start, so we'll assume that it's a home brewery that you're interested in.


Here's a link to some suppliers:

https://www.homebrewtalk.com/showthread.php?t=701


Good luck!

 

[bikebryan]

Is this our project or your project? You can get most of this information by shopping a few homebrew shops online. That is unless you're going to do a business plan for a commercial brewery. If that's the case, a homebrew forum would be a poor place to start, so we'll assume that it's a home brewery that you're interested in.


Here's a link to some suppliers:

https://www.homebrewtalk.com/showthread.php?t=701


Good luck!

I think it's obvious they are not talking about a home brewery. Look at the list - it includes an industrial size kettle and taps for a pub.

To the original poster: Google is your friend. Go do your own homework.

 

[Flucky07]

I think it's obvious they are not talking about a home brewery. Look at the list - it includes an industrial size kettle and taps for a pub.

To the original poster: Google is your friend. Go do your own homework.

Come on guys you can give ideas at least lol. You know you all cheated in your projects too. Anyway schools out go have a homebrew.

Anyway. Ill try and guess for you for my average brew i take my kit ~50 bucks, steel pot 44.00 (22qt) A kit for brewing for ease of project use 34.00 yeast and hops 8.00 carboy 23.00 2 cases of bottles and caps 25.00 your time -priceless- no amount generated for that. The time it takes to make the beer --priceless-- Other than that its about it. Oh and 4 dollars for ice for the batch because i dont have a wort chiller. So all in all to get a 5 gallon brew id say about for the average hombrewer to get started and make their first batch about 200 bucks give or take a lil...

5gal kegs. ~ 2 for 23.00 around me.
large brew kettle for me was 22qt about 45.00
industrial no idea.
half kegs 10.00 when you drink all the beer out of a half? lol just dont get your deposit back.!

I tried and im new so good luck

Eric

 

[Ivan Lendl]

School project: develop a business plan for a project of your choice.
Brewery:
I'm not sure how much some equipment might cost. Any guesses appreciated:
brew kettles - large
brew kettles - industrial
5 gallon kegs
half kegs
full kegs
a beer tap for a pub
barley per pound
wheat per pound
yeast per pound

any other costs you can think of appreciated.

large brew kettle: 100 bucks (converted sanke)
industrial brew kettle: 10,000 (a really sweet one)
5 gallon keg: 30 bucks
half keg :50 bucks
full keg : 50 bucks
a beer tap: 20 bucks
barley per lbs : 1 dollar (although in bulk probably way lower, maybe 20 cents?)
wheat per lbs : (same as barley)
yeast per lbs: 7 bucks (all ya need is one vial of liquid, then grow your own)

hidden costs:
liquer license; 30-50 grand
space: a few grand a month (at least)
primary/secondary/conditioning vessels/hlt/mlt/: another 10,000
roller mill/hopper: a few hundred
Hot girl to serve the beer: 6 bucks per hour
Fat guy to check id: 5 bucks per hour
200 pint glasses @ 2 bucks a pop
Tables, chairs, lights, bathroom fixtures, velvet Michael Jackson paintings, etc...2,000-5,000

 

[Desert_Sky]

Yea but do you need an actual liqour license for distribution only? I know you need to be licensed, but Im not sure exactly if you need the same liquor license as a bar would. Your not selling to the public, the distributor is.

 

[Ivan Lendl]

Yea but do you need an actual liqour license for distribution only? I know you need to be licensed, but Im not sure exactly if you need the same liquor license as a bar would. Your not selling to the public, the distributor is.

well he wanted a "beer tap for a pub" so im assuming its gonna be a brewpub.

Id say the minimum cost to start a brew pub would be 50,000. (thats starting from scratch, in an empty restaraunt with no equipment already there) Thats NOT including the license. Just an out-of-the-garage brewery could be done for around 2,000. Theres an article in the new byo that has a guys pro-set up he made for around 2 grand.

 

[brewhead]

http://probrewer.com/

 

[Ivan Lendl]

http://probrewer.com/

ther ya go, everything you need...cool site btw!

 

[Cheesefood]

First off, what grade is this for (college? High school?) and what class is this for?

Setting up a commercial brewery - whether a micro or a brewpub - is not even sort of cheap.

First off, let's define the constraints:

1. Where will it be located?
2. What is your budget?
3. What are your available resources?
4. What are your assets on-hand?
5. How many partners will you have, and what are their specialties (aka what is your human capital?)

Then you need to define additional constraints:

1. If it's a brewpub, will it be all-grain or extract brewing? AG is cheaper, but requires more holding space, which means you lose seating in your restaurant.
2. If its a microbrewery, will it have a bar or retail outlet?
3. Dependant on geographic location, what is the water profile and what needs to be done to maintain a consistant water standard?
4. How close are you to major transportation routes? This will affect shipping (if you're a microbrew) and deliveries, as well as customer influence.
5. Do you plan on buying or leasing equipment?
6. Are you planning on paying for your insurance in full or financing it?
7. Who will do your book-keeping?
8. Where will you procure your packaging? (including bottles, cans, 6-pack holders, case design, 12er design, etc.)
9. If you're a pub, you'll need to factor in TVs, satellite dish, sports packages (which can cost bars thousands of dollars per sport).
10. If you're a pub, you'll need furniture, a kitchen, glassware, coasters, napkins, etc.
11. A pub will also require contracts with other liquor, beer and wine distributors to meet the needs of the non-house-brews.
12. A microbrewery will need a shipping method, inventory management system, cold storage and processing facility.
13. A micro will also need QA labs.
14. ATF regulations need to be adhered to, as well as FDA and health inspection.
15. You'll need a lab for yeast cultures.
16. You'll need buyers for grain.

I can keep going on and on, but the fact it that producing a selling beer is FAR more complicated than, say, computers. You can legally sell a computer built in your garage. There are no government agencies regulating how a computer is built. There's no spoilage with computer parts. A black-out during a heatwave won't force you to toss tens of thousands of dollars with of computer gear. You don't need cold storage...

You get it.

Based of your questions posed below, you don't have insider experience running a brewery of any scale. Therefore, you're not nearly capable of running an operation as risky as a regulated consumable. In other words, you're going to get a lousy grade if you choose "beer" as your idea. Your teacher will easily rip your plan to shreds.

Try something easier.

 

[the_bird]

That's a really good list, Cheese. Something you've spent a little bit of time thinking about?

 

[Desert_Sky]

That's a really good list, Cheese. Something you've spent a little bit of time thinking about?

I think thats something everyone has thought of at one point or another

 

[Cheesefood]

That's a really good list, Cheese. Something you've spent a little bit of time thinking about?

Thanks. Actually, I'm working towards my MBA and this is the kind of stuff that the program gets you to think about. Buy vs. Rent, Risk and Return, Profit vs. Reinvestment, how much to charge and how much to pay yourself. Then you have to think about how the barriers to entry affect your business, how long to depreciate your assets and how to judge your business to determine whether you are losing money or making money.

In the case of a brewpub or microbrewery, you're far better off to look at buying and existing establishment rather than start your own. At least until you've been in business for a dozen years.

My retirement dream is to own a brewpub in a quaint little vacation area (think Bed and Breakfast land). If I can save enough up to do this in my retirement to augment my savings, it'll be run a lot differently than if I do it for sustainable reasons. (Basically, is it a profitable hobby or a means for survival?)

 

[olllllo]

My retirement dream is to own a brewpub in a quaint little vacation area (think Bed and Breakfast land). If I can save enough up to do this in my retirement to augment my savings, it'll be run a lot differently than if I do it for sustainable reasons. (Basically, is it a profitable hobby or a means for survival?)

I would love it if you had a jacuzzi made from a lauter tun.

Please book me in the Wort Room.

 

[Cheesefood]

I would love it if you had a jacuzzi made from a lauter tun.

Please book me in the Wort Room.

Hops on in! http://www.ananova.com/news/story/sm_1415257.html

 

[Walker]

No surprise there... Cheesey knows where to find pictures of naked men in a tub of beer.

-walker

 

[Cheesefood]

No surprise there... Cheesey knows where to find pictures of naked men in a tub of beer.

-walker

Yeah, your basement Rulez!

 

[drost]

Here's a good link for commercial equipment:

http://www.dmebrewing.ca/index.asp

 

[bikebryan]

Come on guys you can give ideas at least lol. You know you all cheated in your projects too. Anyway schools out go have a homebrew.

Anyway. Ill try and guess for you for my average brew i take my kit ~50 bucks, steel pot 44.00 (22qt) A kit for brewing for ease of project use 34.00 yeast and hops 8.00 carboy 23.00 2 cases of bottles and caps 25.00 your time -priceless- no amount generated for that. The time it takes to make the beer --priceless-- Other than that its about it. Oh and 4 dollars for ice for the batch because i dont have a wort chiller. So all in all to get a 5 gallon brew id say about for the average hombrewer to get started and make their first batch about 200 bucks give or take a lil...

5gal kegs. ~ 2 for 23.00 around me.
large brew kettle for me was 22qt about 45.00
industrial no idea.
half kegs 10.00 when you drink all the beer out of a half? lol just dont get your deposit back.!

I tried and im new so good luck

Eric

Actually, I NEVER cheated on projects. I always did my own research and wrote my own papers. Also, not everybody is out of school. Many places have year-round schools, not to mention summer school and the fact that most colleges run year-round.

 

[NEPABREWER]

Thanks. Actually, I'm working towards my MBA and this is the kind of stuff that the program gets you to think about. Buy vs. Rent, Risk and Return, Profit vs. Reinvestment, how much to charge and how much to pay yourself. Then you have to think about how the barriers to entry affect your business, how long to depreciate your assets and how to judge your business to determine whether you are losing money or making money.

In the case of a brewpub or microbrewery, you're far better off to look at buying and existing establishment rather than start your own. At least until you've been in business for a dozen years.

My retirement dream is to own a brewpub in a quaint little vacation area (think Bed and Breakfast land). If I can save enough up to do this in my retirement to augment my savings, it'll be run a lot differently than if I do it for sustainable reasons. (Basically, is it a profitable hobby or a means for survival?)

Hey - I cant exactly get my MBA for a myriad of reason right now, but what book, in your opinion would be a good read to touch on some of the things you mentioned here?

Thanks

 

[Cheesefood]

Hey - I cant exactly get my MBA for a myriad of reason right now, but what book, in your opinion would be a good read to touch on some of the things you mentioned here?

Thanks

Freakonomics by Steven Levett, The World is Flat by Thomas Friedman, and then some textbooks on Economics, Finance, Accounting, Marketing, Ethics, and a variety of mathematics. 90% of an MBA is bullshat, but the remaining 10% is extremely good stuff. What that 10% is can only be determined by your experience and needs.

The most important thing you gain from going through the program is a piece of paper that says "I did it." That piece of paper, as trivial as it is, opens a lot of doors. It's just one more thing you can say you've done.

 

[Cheesefood]

http://www.jvnw.com/brewing.html