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Creating a beer for a restaurant

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  • Creating a beer for a restaurant

    We have been approached by a local restaurant to create a beer for them. This would be a beer that is sold exclusively in their restaurant. We haven't discussed any details about it yet. I'm assuming that our name and logo would appear somewhere on the label but it wouldn't be prominent.

    I'm just wondering if anyone has experience with this. Do you charge a fee for the development of the beer? Did you set up a contract that determined a set amount of beer or a length of time? Would you just charge them wholesale prices or include a premium?

    Thanks

  • #2
    Kegs or bottles?

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    • #3
      We haven't talked about that yet but I'm assuming bottles. It's a tiny space w/ no room for taps.

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      • #4
        other things to consider

        I have had similar inquiries and have never fully wrapped my head around it either. One of the other issues to consider is your batch size. If you brew 7 BBL batches will this restaurant be willing to buy all that beer at once (most likely no). Now you have to keep a bunch of it in inventory, tying up money and hope that they go through it all before it gets out of date. Also, do you have the capacity to deal with another SKU in your brewing rotation.

        I only do draft so its a little different but when somebody approaches me about making a special beer for them the first question I ask is can you buy 12 - 1/2 BBL's of it at a time? That usually ends the conversation right there...

        I have often seen breweries package one of their standard beers under a different name for an exclusive account. That way you aren't tying up a whole batch and they can buy whatever they need without causing you too many problems...
        Scott LaFollette
        Fifty West Brewing Company
        Cincinnati, Ohio

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        • #5
          First discussion: does your license and state law allow you to do this. If not, do not pass Go, do not collect $200.

          Secondly, I would also require customer to pay entire batch up front and also pick it up within 30 days of packaging. You are doing it for him/her and if they decide for whatever reason not to use it, you cannot sell it and get stuck with the goods. Also, it gives him/her ownership and motivates them to move the product.

          Thirdly, I would also require them to pay for label design and printing. Not a cheap endevour.

          Number four, as far as price goes, if he/she OKs said parameters, a normal wholesale price is in order. Also, IMHO recipes are not worth money. They are only as good as the guy brewing them.

          All this being said, he might be better off selling a beer you already make in kegs (a portable kegerator) and calling it his own, if you are OK with that.

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