Brewery Equipment

How to Start a Brewery

Breweries are popular with a variety of customers, whether they're a casual beer drinker, a craft beer enthusiast, or just looking for a place to spend Friday night. As the demand and popularity of beer continues to rise, so does the interest in new breweries. If you’re considering opening a brewery of your own, we’ve compiled a list of steps and tips to help guide you through the process and successfully open your own business. Shop All Brewery Equipment Click any of the tips below to read the section that interests you: Write a Brewery Business Plan Choose a Brewery Concept Determine the Cost of Starting a Brewery Secure Brewery Funding Apply for Permits and Licenses Choose a Brewery Location Buy Brewery Equipment Create a Draft List and Menu Advertise Your Brewery Host a Soft Opening Continue reading to learn about how to open your own brewery! 1. Write a Brewery Business Plan A business plan is one of the most important steps for starting any business. Not only does it act as a roadmap that guides you through the process of opening your business, but it is essential for securing funding from investors. A good business plan includes detailed information on your concept, market, business structure, and financial situation. For additional information on this topic, consider reading our piece on how to write a restaurant business plan. 2. Choose a Brewery Concept Your concept is what defines your brewery. It influences everything from how customers will identify you as a company, to the messaging you target in advertisements, to the type of employees you’ll hire. To identify your brewery concept, you’ll have to choose a name, identify your brand, and determine what type of brewery you want to operate. Naming Your Brewery Choosing a name for your brewery can be a daunting task, not just because there are so many options to choose from, but because your choice will define your company for years to come. As you go through the process of choosing a name for your brewery, keep in mind that a good name will share the following traits: Original: The first and most obvious step in choosing a name for your brewery is making sure that it isn’t already taken. Additionally, be careful not to choose a name that is too similar to an existing name. Not only will this help you to protect yourself and secure a trademark, but it can help to avoid lawsuits from other brands who might think you’ve infringed on their intellectual property. Memorable: Choose a name that your customers will remember. A good starting point is to aim for a name that’s easy to spell and pronounce. Furthermore, choosing a name that rolls off the tongue and is fun to say can help to make your name memorable. Reflective: The name you choose should reflect your company. Try to create a list of what distinguishes your brand from others, or what defines you as a company. For example, if your brewery is located in Boston, you might choose something that reflects the culture of New England Broad: Your brewery’s name should be able to have broad appeal and lend itself to a variety of branding opportunities, themes, and products. Choosing a name that is too specific can limit the number of opportunities you have, and by extension prohibit growth. Identify Your Brand Identifying a brand is an essential part of establishing yourself as a brewery. Your brand can help you to connect with potential customers, identify target markets, hire employees, and strategize the direction of your business. To identify your brand, start by determining your company values. Understanding what matters to your company and employees is a key part of your branding. Once you’ve done this, you can discover your target audience and the emotion behind your products. It’s not enough just to identify a brand and move on. Once you’ve determined your values, key demographics, and emotional impact, you have to make an effort to create continuity. This means following through on your promises and acting in accordance with the values of your company. Doing so will allow you to truly establish yourself in the industry, within the community, and with your employees. Choose a Type of Brewery The increased demand for beer has lead to innovation in the industry, and by extension, a variety of brewery types. Though they differ in size, scale, and impact, each brewery serves a specific function and can be effective given your goals. Nano Brewery: As its name suggests, a nano brewery is the smallest type of brewery. There isn't a set amount of beer that a nano brewery is allowed to produce until they officially scale up to micro-sized. Microbrewery: A microbrewery is defined as a brewery that produces less than 15,000 barrels of beer annually. These types of breweries are typically independently owned, and sell the majority of their products onsite rather than through beer distributors. Brewpub: A brewpub is a hybrid between a restaurant and a brewery. Most of their beer is brewed for the purpose of being sold to customers at their bar. Taproom Brewery: Taproom breweries are professional breweries which sell beer onsite and through distributors, yet don't offer restaurant services to guests. Often times, the taproom will be attached to the brewery itself. Regional Brewery: A regional brewery is defined as a brewery that produces between 15,000 and 6,00,000 barrels of beer per year. Breweries which exceed this level of output are recognized worldwide. Contract Brewing Company: A contract brewing company hires other breweries to produce their beer. The hiring company retains the responsibility of marketing and distributing the beer while the company they've hired is responsible for production and packaging. 3. Determine the Cost of Starting a Brewery Because there are so many different types of breweries, the cost of opening your own can vary quite a bit. Several factors including how much beer you plan on producing, the possibility of serving food and maintaining a dining room, and the size of the property you’ll be operating in can influence the price of your brewery. Below, we've listed the estimated costs of a brewery's various expenses. Brewery Equipment Cost: The amount you pay for brewing equipment ultimately depends on the size of your brewery and whether you buy it new or used. You can purchase brewing equipment with the smallest capacity for $100,000 or less if you buy it used, or pay up to $1 million or more for a brand-new, 30-barrel system. Furniture Cost: Depending on the style and level of quality you're looking for in your brewery, the price of. restaurant furniture in your restaurant can range from as low as $4,000 to as high as $15,000. Rent or Mortgage Payments: When you decide on retail space to operate your brewery out of, take into account how much space you’ll need. It’s essential to have enough space for your utilities and brewing equipment. Additionally, if you plan on operating a taproom, make sure there is enough space for guests to comfortably dine. Regardless, the cost of retail rent is determined by square foot and can range from anywhere from $10/square foot to as high as $30/square foot. What Is the Average Cost of Starting a Brewery? In total, the cost of opening a brewery can range from as low as $250,000 to upwards of $2 million. However, for a standard brewery, it's reasonable to expect that value to fall between the range of $500,000 and $1.5 million. The average cost of opening a brewery is dependant on a number of factors which vary based on your concept, location, needs, and preferences. 4. Secure Brewery Funding A key step in opening your brewery is to secure funding. While you may have money saved up, chances are you’ll still have to seek additional funding. Consider the following options as ways to acquire extra capital and continue the process of opening your brewery: Self-Funding: As was mentioned above, it’s possible to fund your brewery, at least in part, with your own money. However, due to the high cost associated with acquiring equipment, permits, and other expenses, you'll likely have to look for additional funding from outside sources. Investors: One possible source of funding can come through investors. With a good business plan and a strong meeting in which you pitch your plan to an investor or group of investors, they may consider giving you money to fund your brewery. Keep in mind that once they’ve invested, they’ll have a vested interest in your business and will likely want to stay informed. Loans: A variety of loan opportunities exist for people interested in opening a business. Among them are traditional bank loans, small business loans, and equipment loans. Crowdfunding: Crowdfunding is a relatively new yet effective method of securing funding. Websites such as GoFundMe let supporters donate money towards your brewery, allowing you to set funding goals and provide updates on business development. 5. Apply for Permits and Licenses To legally own and operate a brewery, or any business that produces or sells alcohol, you’ll have to apply for a liquor license. Depending on your production and serving needs, you have the option of applying for a limited license, which allows you to sell specific types or quantities of alcohol, or a full license. Cost of Liquor Licenses The cost and availability of liquor licenses can vary depending on what state you live in. In some instances, acquiring a license can cost you as low as $3,000, yet in others, it can cost upwards of $400,000. Additionally, many states require an application fee to be considered for a liquor license. In some states, such as Pennsylvania, there are only a set number of licenses in circulation, meaning that you may have to apply for a transfer or pay higher costs to acquire one. Cost of Restaurant Licenses Since many breweries choose to serve food as well as beer, you may want to investigate the cost of restaurant licenses and permits. A food service license certifies that your business meets all regulations and standards and has been deemed fit to serve food to customers. As with all fees, the amount you have to pay can vary depending on a number of factors. Nevertheless, it's safe to assume the cost will fall somewhere between the range of $100 and $1,000. Back to Top 6. Choose a Brewery Location Choosing a location for your brewery represents a significant investment. Therefore, you must consider a variety of factors to make the best decision for you and your brewery’s future. Consider the following details as you search for a location to start your brewery: Zoning: Your brewery location will be determined by local government zoning regulations. In most cases, breweries can only be located in zones designated for industry. Nevertheless, these regulations can vary depending on where you are, so check in with your local government before making a decision. Brewery Requirements: You won't be able to run a successful brewery if you choose a building that doesn't fit your needs. For example, if you plan on producing a large amount of beer, be sure to find a building where you’ll be able to efficiently carry out production. Building Space: Be sure to find a building that has enough space for you and your staff to comfortably work. Key factors to consider include storage space, space for equipment and machines, and possible dining areas for guests. Additionally, find a building that has adequate parking spots for your employees, guests, and yourself. Safety Precautions: As with any business, the most important thing to consider is safety. Make sure the building you choose will pass safety inspections and allow you to safely carry out day-to-day operations. 7. Buy Brewery Equipment A key step in starting a new brewery is investing in the right equipment and supplies to start brewing beers and serving customers. While the quality and amount of equipment you need will vary depending on the size of your business, there are a few essential categories of equipment and supplies that you'll have to buy before you can get to work. Beer Brewing Equipment: You can't start brewing beer if you don't have the right equipment. Be sure to invest in fermenters, boiling equipment, and brew kettles to make sure you’re ready to start making your own brews! Beer Bottling and Packaging Supplies: Bottling and packaging supplies can help to simplify the packaging process and make sure that every customer is satisfied with their order. Commonly used bottling and packaging supplies can range from equipment such as growler fillers to simple packaging products such as labels and beverage shippers. Keg Tapping, Dispensing, and Serving Equipment: If you plan on serving beer on-site, make sure you invest in your own keg tapping, dispensing, and serving equipment. This can include beer dispensers, tap towers, nitro infuser boxes, and pump keg taps. Refrigeration Equipment: It’s essential to invest in refrigeration equipment to keep your brews cool and refreshing. Depending on the size of your brewery, your refrigeration equipment can range from countertop bottle coolers to walk-in refrigerators. Keg Storage: Keep your brewery organized by shopping for keg storage products. Consider investing resources into keg racks to improve your storage capacity and stay organized. Additionally, purchase hand trucks and drum handling equipment to safely and efficiently transport kegs throughout your brewery. Beer Making Accessories: While they may not be required for the brewing process, beer making accessories can make your brewing experience easier and help you to further customize your brews. Consider buying your own test strips and meters, stock pots, and portion scales to upgrade your brewing experience. Beer Glasses: Keep your brewery stocked with a variety of beer glasses to accommodate any new brews you might plan on introducing. Examples of the different types of beer glasses include Belgian beer glasses, pilsner beer glasses, and IPA beer glasses. Beer Ingredients and Flavorings: Stock your kitchen with a variety of beer ingredients and flavorings to make sure you have everything you need to customize your brews. This includes honey, cocktail bitters, wood chips and chunks, liquid malt extract, and a variety of other products. 8. Create a Draft List and Menu Once you’ve acquired equipment and established what kind of brewery you want to open, you’ll have to create a draft list and menu. A balanced draft list allows your guests to choose from a variety of beers and helps you to showcase your products. Consider keeping at least one of each of these types of beer characteristics on tap: Light: The definition of a light beer varies depending on where you are in the world. In general, it’s described as a pale beer that features has a reduced alcohol content or amount of calories. Additionally, light beers typically feature a lower amount of carbohydrates. Malt: Malt beers often feature a rich combination of flavors, often with a hint of sweetness or nuttiness. Despite what their rich flavors may suggest, malt beers come in a variety of colors and alcohol percentages. Roast: Roasted brews are often dark in color, are made from highly roasted malt grains, and are distinguishable by their rich flavors and deep colors. Common flavors of roasted brews include coffee and cocoa. Tart: Tart brews, as their names suggest, feature a sour, almost acidic taste. While many tart beers are lighter in color, it's possible for them to have medium or even darker shades. Their earthy and sometimes fruity taste differentiate them from other brews. Hoppy: A hoppy beer is defined by it’s prominent sweetness, bitterness, flavor, and aroma. You're likely to get the most intense flavors in hoppy beers, with the most common being pine, herbal, and fruity. High IBU: IBU stands for International Bitterness Units scale, and exists to measure a beer’s bitterness. A beer with a high IBU will be more bitter than one with a lower IBU. High ABV: ABV stands for Alcohol by Volume, and is a standard measurement to assess the strength of a beer. A higher ABV means that your beer is more alcoholic. Brewery Menu When creating your menu, it’s important to choose foods that pair well with beer. Consider adding the following foods to your menu if you plan on serving food in your brewery: French Fries Onion Rings Nachos Wings Mozzarella Sticks Sliders Chips and Dip 9. Advertise Your Brewery Before you open your new brewery, it’s essential to start advertising your new business to increase public awareness and drum up excitement for your grand opening. The cost of marketing can vary depending on which forms you use, but in general, the average small business spends 1-2% of their annual revenue on advertising. Consider using the following forms of advertising as you establish a marketing campaign for your new brewery: Print Advertising Billboards and Signage Radio Commercials Television Commercials Online Advertising Additionally, depending on your location, you may have the opportunity to enter into a beer festival. Events like these allow a variety of breweries to showcase their brews for a large number of people, and often feature music, entertainment, and food. 10. Host a Soft Opening Once everything is in place, it’s time to prepare for your grand opening. Before you officially open your doors to the public, consider hosting a soft opening. Not only does this allow you to continue generating excitement for your new brewery, but it allows you and your staff to prepare for what a normal work day will be like. Though it may seem like an intimidating task, the process of developing and opening your own brewery is possible to complete as long as you have a strong plan, stay prepared, and are ready to work hard. Follow the steps and tips outlined above to guide yourself through the process and successfully open your new brewery! Back to Top The information provided on this website does not, and is not intended to, constitute legal advice. Please refer to our Content Policy for more details.

Brewery Licensing & Safety Regulations

Starting a brewery is an exciting process, allowing you to pursue your passions of making alcoholic beverages while simultaneously providing you with a profitable business opportunity. There is great potential in owning your own brewery and brewing different types of beer, but the industry is heavily regulated by the government. For this reason, breweries must receive a variety of licenses and follow many safety protocols just to operate. Understanding these legal requirements can be confusing, so if you’re looking to start your own brewery check out our guide to brewery licensing and safety regulations. Looking for supplies and equipment for your brewery? Click below. Shop All Beer Brewing Equipment Use these links to learn more about each aspect of brewery licensing and safety regulations. Commercial Licenses TTB License Brewery Business Plan TTB Bond Liquor License Alcohol Beverage Control Board Federal Food Safety Modernization Act Brewery Health and Safety Regulations What is OSHA? OSHA Compliance Brewery Safety Checklist Commercial Licenses Before you can apply for brewery-specific licenses like a liquor license, you first need to establish your brewery as a legal entity and a business. To do this, there are several commercial licenses that you'll have to apply for and receive. The most important commercial licenses you'll have to acquire for your brewery are listed below: Business License - A business license is a document issued by the government that allows a business to conduct operations. To legally operate as a business, you are required to obtain a business license. EIN - Every business in the United States requires a nine-digit Employee Identification Number for easy tax identification. Seller's Permit - A seller’s permit authorizes your business as a collector of sale’s tax, a requirement if you’re selling alcohol directly to consumers. Trademarks - It's important to trademark the name you choose for your brewery and the names of the beer you plan to make, securing your brewery's brand and its potential products. TTB License The Alcohol and Tobacco Trade and Tax Bureau (TTB) must approve of your brewery’s operations before you are allowed to legally operate. Applying for a TTB license can be long and complicated, as the TTB will sift through all aspects of your brewery before approval. Important documents like financial estimates will be required to be approved. The application process could also include background checks on owners and management, a thorough analysis of the brewery's location, and a review of beer recipes, labeling, and marketing. Applying for this license requires no fee and can be done through the TTB website, but the approval process can take anywhere from a few months to a year to complete. Brewery Business Plan To increase the likelihood of being approved for a TTB license, you should create a business plan that outlines the different aspects of your brewery. While the document doesn’t have to be as extensive as a restaurant business plan, it should still contain critical information that gives insight into your brewery’s future plans and potential success. Some of the most important aspects to include in your brewery business plan are listed below: Executive Summary - Provide a brief overview of your business and outline the information included in your business plan. Company Description - Give a written description of your brewery of your brewery, typically expanded on from the one given in the executive summary. Management and Ownership Structure - Cover what type of ownership structure your brewery will have, as well as what your management will look like. Location - Include the prospective location of your brewery, outlining the advantages of the location and how it fits within government regulations. Employees and Staffing Needs - Outline the number of employees your brewery will need initially, as well as their responsibilities and requirements. Financial Projection and Summary - Provide financial estimates for your brewery, including a break-even analysis. Back to Table of Contents TTB Bond When you are approved for a TTB License, you’ll have to get a TTB bond in tandem. A TTB bond is a type of surety bond, a guarantee that your brewery will pay all taxes the government requires. The bond is a legally binding agreement between three entities: your brewery, the government, and an insurance company that guarantees the bond. Under a TTB bond, the government can make a claim if you fail to pay the required taxes. If you default on your tax payments, initially the responsibility falls on the insurance company that guarantees the bond. However, your brewery will quickly be on the hook for that money on top of any other fees and fines for tax evasion. TTB bonds typically insure an amount somewhere between $1,000 to $50,000 and will require a premium of around 1-15% of the insured amount. Liquor License For breweries looking to open a taproom or take advantage of on-site sales, a liquor license is required. A liquor license gives a business the right to serve alcohol on-site and regulates items such as the type of alcohol a business can sell, the legally allowed ABV of beverages, what time they can sell alcohol at, and what packaging the alcohol is sold in. Each state issues its own liquor license, meaning the scope of liquor licenses varies from state to state. It’s important to research your state’s alcohol laws and understand what type of liquor licenses are required for your brewery. In some cases, individual municipalities and local governments have their own liquor licenses that need to be obtained in addition to state liquor licenses. Applying for a liquor license can be just as long and difficult as obtaining a TTB license, so be sure to apply early in the process of starting your brewery. To get the application process started, contact your state's alcohol control board to properly understand the requirements required for a liquor license. Alcohol Beverage Control Board In the United States, each state has the power to regulate the production, sale, and distribution of alcohol. Due to this, many states have different laws regarding the topic, with some being more strict than others. Each state has its own Alcohol Beverage Control Board, dictating state alcohol laws. Following prohibition, some states sought to continue to regulate some portions of the alcohol industry, leading to the creation of these governing bodies. Before starting your brewery, get in contact with your state’s Alcohol Control Board and ensure you understand all the requirements and regulations your state has regarding the sale of alcohol. Back to Table of Contents Federal Food Safety Modernization Act On January 4th, 2011, President Barack Obama signed the Federal Food Safety Modernization Act into law, placing breweries under the regulation of the U.S Food and Drug Administration (FDA). Under this law, alcohol like beer is classified as food items. Breweries are now subject to FDA approval and random FDA inspections to ensure compliance. FDA Inspections Similar to health inspections, failing an FDA inspection has major repercussions, resulting in fines, reputational damage, and disruption of business. To be safe, your brewery should always be prepared for random FDA inspections. Here are a few steps you can take to ensure that your establishment is always ready to face FDA inspection: Keep all important safety documents up to date and easily accessible. Ensure all materials in your brewery are clearly and accurately labeled. Train staff on proper safety and hygiene techniques with frequent refresher courses. Maintain a clean and sanitary environment within all areas of your brewery. Brewery Health and Safety Regulations Due to the heavy equipment and hazardous chemicals required to brew alcohol, many health and safety regulations are in place in breweries. Brewery health and safety regulations are in place to prevent workplace accidents and protect your employees. Understanding these health and safety regulations and OSHA, the governing body that oversees them, is key to creating a safe workplace. What Is OSHA? The Occupational Safety and Health Administration also referred to as OSHA, is a regulatory agency of the United States Department of Labor. The agency was created by the Occupational Safety and Health Act of 1970 to ensure safe, sanitary, and risk-free working conditions for employees. OSHA helps ensure a safe environment for workers by setting and enforcing workplace regulations and standards, as well as outlining safety training and educational courses for employees. Back to Table of Contents OSHA Compliance To ensure workplaces are safe and reduce accidents for employees, OSHA has a variety of safety regulations in place that workplaces must follow. These regulations are mandatory and most of the private sector must follow them, including factories, restaurants, and breweries. Failure to comply with OSHA regulations results in massive fines or even the complete shut down of your brewery, so compliance is key. In order to ensure your brewery complies with OSHA regulations, here are some of the most common violations that you should look out for: Safety Equipment Brewery employees work with dangerous heavy machinery and hazardous chemicals, so the protection of your employees is key. To ensure your employees are well protected from the potential dangers of working in a brewery, OSHA mandates that employees are provided with the proper protective clothing. Here are some of the most important safety equipment you should outfit your employees with: Hearing Protection - Headphones and other hearing protection is important to protect workers from noise exposure and excessive sound levels from machinery. Eyewear - Employees should wear protective eyewear like safety goggles to ensure eyes aren’t exposed to particles from harmful chemicals and acids. Gloves - To prevent lacerations and chemical burns, brewery employees should wear protective gloves to shield their hands from injury. Masks - Respiratory protection in the form of masks is important, shielding employees from breathing in harmful gasses and vapors. General Duty Clause Under the General Duty Clause of the OSHA Act of 1970, workplaces are mandated to provide an environment that is free of hazards that have the potential to cause serious injury or death. The biggest problem breweries face under this mandate is ergonomic hazards involving lifting and transporting. In a brewery, employees will be required to lift large kegs and heavy sacks of grain, something that is considered an ergonomic hazard under the General Duty Clause. To lessen the ergonomic hazards your employees face from lifting, provide training and refresher courses covering safe and proper heavy lifting techniques. Also, provide employees with the proper machinery and equipment to lift heavy objects so that employees don’t always have to lift heavy objects by hand. Lastly, set your own rules dictating that items over a certain weight need to be handled by either multiple employees or by heavy equipment. Process Safety OSHA has regulations and requirements in place regarding the handling of hazardous chemicals in the brewing process. The Process Safety Management of Hazardous Chemicals not only outlines proper handling methods for these items but also requires businesses to keep paperwork and information on each hazardous chemical. Breweries frequently deal with dangerous chemicals like acids and caustics so process safety is important to protect employees and prevent accidents such as spills. Control of Hazardous Energy When heavy machinery like brewery equipment requires maintenance work or repairs, OSHA mandates that the machinery be turned off and disabled. If not disabled, machinery can inadvertently turn on or release hazardous energy, potentially injuring the maintenance crew. OSHA has outlined a procedure know as lockout tagout (LOTO) to ensure that equipment is shut down and inoperable before any maintenance work can be completed. Permit-Required Space Entry OSHA mandates that certain spaces, known as permit spaces, must have special precautions taken before anyone is allowed to enter. OSHA defines permit spaces as confined spaces with the following characteristics: Contains a hazardous atmosphere Has the potential for entrapment or asphyxiation Holds dangerous material such as exposed live wires Spaces with these characteristics always require a permit to enter. Before entry, employees must be aware of all dangers. A permit verifies that all proper steps have been taken to ensure the space is safe for entry and that the proper equipment is being worn by the employee. A permit also outlines the roles of the permitted attendees and provides a step-by-step process for leaving and sealing the space. Once completed, the permit needs to be handed to higher-ups to ensure no changes occurred in the space and to identify any extra measures that need to be taken to protect employees. Brewery Safety Checklist To ensure that your brewery is a safe environment for employees, you should create a brewery safety checklist to follow. Outline important areas to address and work on to mitigate risk and reduce the potential of workplace accidents. Here is a list of ideas that you may want to include on your safety checklist: Emergency Evacuation Plan - Have an emergency evacuation plan in place to protect all employees. Make sure a plan is in place in case of extreme emergency so that every employee knows how to exit the area safely. Ensure that the plan is up-to-date and that employees are trained to know the evacuation plan. Safety Data Sheets - You should keep safety data sheets on all of the hazardous chemicals and liquids you have housed in your brewery. A safety data sheet is a document that lists information relating to the safety risks associated with a material. The information includes how to safely use the material and instructions on what to do in case of an accident such as a spill. Safety Violations Reports - Ensure that there is a direct line of communication for employees to report potential safety violations and hazards without fear of repercussions. An open line of communication between employees and management is key in identifying potential hazards and quickly dealing with them. Employee Safety Training - OSHA regulations require employees to receive basic training, but you can take this a step further. Regular safety training and meetings help to keep employees refreshed on safe workplace practices. Understanding the licensing and safety requirements for breweries is key to running a successful business and avoiding trouble. Although opening a brewery presents an amazing business opportunity, in the U.S the alcohol industry is heavily regulated at both the state and federal level. For your brewery to fully realize its potential, you’ll have to take the proper steps when it comes to licensing and safety, allowing you to avoid legal trouble and create a safe and successful workspace. The information provided on this website does not, and is not intended to, constitute legal advice. Please refer to our Content Policy for more details.