Most of the topics have really been touched upon already...attitude, honesty, etc.
I think the biggest thing for me is that if a local brewery gets an unexpected burst of expansion then contract brewing is the best way to handle it. Lancaster Brewing Co here in southern PA was pretty small time until they got a contract with semi-recently built baseball stadium. All of a sudden they've now got this huge unexpected demand and no way to fill it. They are located in the city, where do they expand? Do they shut down the restaurant and just brew for the stadium? Of course not. Allow your excess demand to flow over to someone with the capacity to brew your recipe to accommodate this demand. If the demand continues consistently then building another brewery or expanding your existing one would prove beneficial, but with the finicky tastes of the average consumer you really don't know what might be in store for the next 5 years. Contract brewing is a great way for a small brewery to get into the game without a huge cost up front....as long as the recipes are original and (as others have said) they're honest about it, I think it's not only "okay," but wise.
I think the biggest thing for me is that if a local brewery gets an unexpected burst of expansion then contract brewing is the best way to handle it. Lancaster Brewing Co here in southern PA was pretty small time until they got a contract with semi-recently built baseball stadium. All of a sudden they've now got this huge unexpected demand and no way to fill it. They are located in the city, where do they expand? Do they shut down the restaurant and just brew for the stadium? Of course not. Allow your excess demand to flow over to someone with the capacity to brew your recipe to accommodate this demand. If the demand continues consistently then building another brewery or expanding your existing one would prove beneficial, but with the finicky tastes of the average consumer you really don't know what might be in store for the next 5 years. Contract brewing is a great way for a small brewery to get into the game without a huge cost up front....as long as the recipes are original and (as others have said) they're honest about it, I think it's not only "okay," but wise.