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  • Contract Brewing Questions

    I am an advertising professional who has been homebrewing for a couple of years. I think there is great potential in this market for quality beer. With that said, I would like to explore the idea of contract brewing.

    After reading many posts on here, most people seem to have already got their beer contract brewed, and are now exploring the later steps in the process. I would just like to know what is typically the $$ investment in a low scale contract brew? How many barrels are usually required before moving forward?

  • #2
    Can anyone help??

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    • #3
      I'm actually in the process of starting up as a contract brewery. If you're serious about doing this, here's my advice.

      First look into the local and federal regulations that apply to you. Determine if you will be operating as a contract brewer or alternating proprietorship based on laws, and what you want to do (but keep an open mind, as one may not be an option later in your research).

      Contact local breweries that do contract brewing, or are open to the idea. If they already do contract brewing, they should be able to give you some pricing. If not, see if you can sit down and chat over a beer with the owner to discuss what you want to do.

      Keep in mind that if a brewery hits their capacity, you're not going to have your beer brewed until they have room. I'm planning on getting around this by purchasing a fermenter and installing it at the brewery that I'll be contracting with. In doing this, there will always be room for my beer, and if I'm not in need of the fermenter and the brewery needs extra room, there's the possibility of renting them the space back.

      Get some ingredient catalogs and determine what your supplies will cost. You should be able to get a rough cost for planning purposes.

      Look at the cost of packaging. Are you planning bottles? kegs?

      Look at the cost of marketing materials. Glasses, shirts, coasters, etc.

      Once you've compiled a list of expenses, go talk to some local bars and see what price they're paying for craft beer kegs. Then run the numbers.

      This should give you a rough idea of costs vs. expenses and tell you if it will be profitable.

      Sorry... no magic startup number for you, but if you're serious about doing this, hopefully my post will give you a good place to start collecting numbers that will apply to you.

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      • #4
        Beltway Brewing Company

        if you're looking for a brewery that might be able to help you out, check out Beltway Brewing Company http://www.beltwaybrewco.com

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        • #5
          Thanks a lot for your help. My initial thought was to start out as a contract brewery while we iron out the details of a brewery. This would allow us to build brand awareness before we make a large investment into space and equipment. We could also use sales measures to help discover areas of opportunity.

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