I recognize that this is a volume business and manufacturers suggest starting a production brewery with at least a 15 barrel system. Nonetheless, I am planning to start a 7 barrel brewery without any investors or taking on any debt (i.e, all start up expenses are coming out of my own pockets) and am hesitant to invest the additional funds necessary to purchase and operate a 15 barrel system. In fact, when I initially started my business plan, I planned to operate a 3 barrel system, but when I ran the numbers, I had to brew at least 6 barrel batches to make a profit.
Therefore, I have planned to operate a 7 barrel system myself, brewing twice a week to produce 700 barrels in year one. If the brand grows beyond 1500 barrels a year, I would ultimately purchase 14/15 barrel fermenters to complement the existing 7 barrel fermenters.
Naturally, I could fill this post with pages and pages of costs, vision, projections, and over all business plan analysis. However, my question is more specific to those of you who have started out with 7 barrel production breweries. Did your model work? What was your experience? Would you do it again?
I am hoping to get some real world feedback before I take the plunge and begin construction on a warehouse and installation of the 7 barrel brewery. Again, I understand that bigger systems allow for greater growth, more efficient operation, etc., but another mantra I seem to hear from many successful breweries is that they started extremely small and grew slowly. I have found opportunities and success in other industries when the majority of people in the industry all thought one way and I went another. The bottom line is that there are so many breweries opening up right now that they will not all succeed. As a consequence, I am trying to invest amounts that I can live with losing completely. So those of you who have taken similar paths, let me know your thoughts.
Thanks,
Michael
Peticolas Brewing Company
Therefore, I have planned to operate a 7 barrel system myself, brewing twice a week to produce 700 barrels in year one. If the brand grows beyond 1500 barrels a year, I would ultimately purchase 14/15 barrel fermenters to complement the existing 7 barrel fermenters.
Naturally, I could fill this post with pages and pages of costs, vision, projections, and over all business plan analysis. However, my question is more specific to those of you who have started out with 7 barrel production breweries. Did your model work? What was your experience? Would you do it again?
I am hoping to get some real world feedback before I take the plunge and begin construction on a warehouse and installation of the 7 barrel brewery. Again, I understand that bigger systems allow for greater growth, more efficient operation, etc., but another mantra I seem to hear from many successful breweries is that they started extremely small and grew slowly. I have found opportunities and success in other industries when the majority of people in the industry all thought one way and I went another. The bottom line is that there are so many breweries opening up right now that they will not all succeed. As a consequence, I am trying to invest amounts that I can live with losing completely. So those of you who have taken similar paths, let me know your thoughts.
Thanks,
Michael
Peticolas Brewing Company
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