The leap from home to commercial brewing??

[mickeyt69]

Hi have any of you ever thought about setting up in business as a micro brewery i was just wondering if you would know any advice on how to go about it. several have just opened near me with government grants. Its just a pipe dream at the moment but i would like to look into it seriously so any advice/info would be geat. sorry i dont know if this is the right area of the foum to post a question like this :wha:

: :drink:

 

[adrianmole72]

I would absolutely love it ! I went to Derventio Brewery near me, and I was totally in love..

Stephen

 

[graysalchemy]

Read this clicky

I have often thought of it but looking at the figures in that article it has confirmed my suspicions.

I also have written about this before in this post clicky. Having my own business and working for myself for the last 7 years, I know how hard it is to set up a business and its not easy and definitely not at the moment. A micro near me has set up over the summer. It is doing well but cost the main backer £250,000 . Thats alot of profit to be made to get your investment back. Also at the moment as Hardknott Dave's blog suggests it is only viable for micro's to exist because of the small brewery beer duty and if that went it will by bye bye for a lot of micro's.

Pipe dreams are great but usually difficult to put into practice, and more expensive than first thought, especially beer related ones. My personal opinion is that the odds are stacked against you. Most of your profit has gone in Duty before you sell the stuff.

I don't mean to be a damp sqibb, I'm just a pragmatic business men.

Good Luck

:

AG

 

[Wendy1971]

Sounds amazing we would love to have a go

 

[timbim]

Problem is too many people drink for the alcohol content and not the taste...

 

[markp]

Get yourself a copy of 'The Microbrewers Handbook' by Ted Bruning.
If you read through that, by the end of it you will have a pretty good idea as to if you fancy taking it further.

Good luck

 

[mickeyt69]

Thanks for the advice mark cheers

 

[Aleman]

Running a brewery is only about 5% brewing, and 95% business. I enjoy brewing . . . Business :nono: :nono:

 

[graysalchemy]

Well said Aleman, business is not easy, it has massive plus points but a lot of the time the negatives take over. Its no fun waking up worrying how you are going to pay people. Being in profit is one thing cash flow is another and it is cash flow which determins in you survive.

Cheers

AG

 

[mickeyt69]

Thanks aleman I have an experienced successful business man in the family who was wanting to come in on it so hopefully I would have a head start their :thumb: greysalchemy are you unhappy in your business I thought running one would be quite rewarding ?

 

[MEB]

I brew twice a month or so at my local micro brewery. It's the only micro brewery in Northland, NZ. I do it for the experience and I get my malt and hops for personal use FOC. I also get on personally very well with the owner/brewmaster and get to work alongside him. He has said you need a surrounding population of 100,000 to make a micro possible. Without any competition other than pubs supplying major commercialy brewed beers. Having about two years experience with the turnover of beer and the amount of malt used etc I'd say it's something that I wouldn't jump into. It's probably a lot harder than a brewmaster makes it and I know how hard it is tipping 300kg of malt into the tun and then cleaning it out. We brew 2400L about 2-4 times a week depending on the season. The brewery is in the pub and so you brew in full view of the public. We normally start at 6am and finish at midday - inc chilling and pitching. As the brewmaster is a German the first thing is a beer. Sometimes not ideal at 6am....

I'd really seriously think long and hard about it. But if you decide to I wish you the best of luck :thumb:

 

[graysalchemy]

greysalchemy are you unhappy in your business I thought running one would be quite rewarding ?

No I am very happy running one the best thing I ever did, freedom to do what I want no one to answer to however it is just not easy at the moment. As Aleman said breweries are 5 % brewing 95% business. I have thought about it myself, I even have a partner with incredible sales experience and possible a multimiliionair backer. The problem is, looking into it I have found the returns would be to low and a business like that would most likely have to support more than one person as you would be unlikely to have all the skills required to run a business like that and you would thus require business partner(s). There are far easier ways of making a living and the one I am in is definately more rewarding.

Most people who set up in business themselves, and certainly sucessful ones have already worked in the industry they are wanting to set up in and thus have inside knowledge and the business acumen to boot.

Not trying to put you off just making you have a look at the tough realities. Anyone can set up a business but only a few survive. Leisure and food sector industries probably have the highest failure rate of any other business sector.

Perhaps I was a bit abrupt in my first post, and probably made one too many assumptions. Sorry for that.

Good luck :thumb: :thumb:

AG

 

[paulpj26]

I totally agree AG, the other big problem is the state of the pub trade, with so many pubs closing and those pubs that are still around are almost certainly tied in with a brewery, it makes it very hard to get your beer into pubs. On top of that any beer you do sell you make very little profit from.

However, if you do decide to go ahead I wish you good luck :thumb:

 

[graysalchemy]

Good Point, I forgot that one you should always look at your potential market ad see if it can support your business.

:thumb: :thumb:

AG

 

[Cyclops]

Have a factory shop in the town also, or do markets with the brew. Good way to sell the beer to the public who do not visit pubs much.

 

[Lobes]

Does anyone know if it'd be more viable to open a microbrewery abroad anywhere? The mrs has got her heart set on moving abroad in a few years, New Zealand being her top choice and Holland being mine. Any ideas on where to look for info on beer duties around the world?

 

[graysalchemy]

I think you need to see if there are any trade associations in the countries you are looking.

Just googled this for New Zealand clicky.

Remember that this recession is global and it won't be over any time soon. I go on a my trade forum (picture framing) and all The Australian framers are experiencing all the same problems we are over here.

I think if you are set on it you need to do your research big time and ultimately the best place business wise ie best market, tax/duty, regulations should ultimate determine where you go, but the best place may not necessarily be the most picturesque or ideal for you and your family. Perhaps try getting a job brewing in your chosen country first?

Good Luck

:

 

[Lobes]

I think if you are set on it you need to do your research big time and ultimately the best place business wise ie best market, tax/duty, regulations should ultimate determine where you go, but the best place may not necessarily be the most picturesque or ideal for you and your family. Perhaps try getting a job brewing in your chosen country first?

Cheers for the link! Yeah, at the moment this is definitely long-term pipe dream territory, but doesn't hurt to dream!

 

[robsan77]

I thought this when i was in egypt. they could do with a really good micro to supply the resorts.

 

[graysalchemy]

They could do with a bit of piece first I think.

More pipe dreams....

enough pipe to make the Trans Siberian Gas line jealous. :lol: :lol: