Going Commercial - Small Scale

[bignath]

Hi brewers,

have a few friends who would like to go into business on a very small scale and get our beers out into the local market.

One is a banker who is also my brewing buddy, the other has his own hugely successful distribution/wholesale business.

they have asked if i think it's possible, and i've told them it's a massive undertaking both from a production and legal viewpoint.

I am the most experienced brewer of the trio (by a long way). I've been brewing for 10 or so years, the other brewer started this year with brewing my recipes that i've given him, and he knocks out good consistent beer based on my recipes.

We intend to do a couple of micro tours and maybe brewpubs to get an idea of what we would need to do.
I've mentioned there may be food handling courses/inspectors involved aswell.

My main question is, what sort of cost would we need to consider for equipment only, before we even get too far down this track with the other stuff.
We are looking at brewing on a 500 - 1000lt scale - Very small. I suspect neither of us have the time from our day jobs to go any bigger.

The other two are really keen on this venture. I'm keen too, but as i've been around brewing for a while now, i'm also the one most likely to add some common sense and a dose of reality to the situation.
I know there will be government taxes and things like that involved. I know one of the biggest things will be cleaning equipment etc...

Really only after opinions on costings of the equipment at this stage before we continue thinking about ticking all the other boxes.

Will be bottling only at this stage. Kegging would be good, but i'm assuming the start up costs of commercial kegging would be huge....

Cheers in advance for any opinions on setup costs..

Nath

 

[pk.sax]

I think mercs own's recent radio interview had a lot to say on the issue, his past try etc... From that, I gathered it's a much better idea to start off as a brewpub with a face and bar to the beer rather than hazard bottling straight away.

Saves you from (acc to that radio interview):

- bottling issues
- cost of bottling plant at start
- up front advertising costs
- costs of distributing

Also gives you a couple of extra streams of income from food and take away bottle sales and helps build up the brand in prep for expanding later.

 

[Silo Ted]

http://www.caseysbeer.com.au/?page_id=423

from Pat @ Absolute Home Brew, St Marys, Sydney

Plenty of other good stuff elsewehere in the blog too.

 

[mxd]

another way to "test" the water is to have a beer or so made by a contract mfg, you won't make much money but you'll see all the other issues, getting the product into the market etc..

 

[BOG]

There was a 600litre brewery for sale on the internet for $160,000.
Don't think it's still available. Brand New.

Should give you some idea of startup costs.


BOG

 

[Bizier]

I'd suggest that volume reduces amount of time input, and would personally never consider going under 10HL. Check out the most basic 10BBL Premier Stainless setups.

 

[manticle]

Nath - PM fents or trav (or both). Neither seem to visit the forum much these days but Fents is still around.

Both part of Kooinda which started as a homebrewer's dream a few years back and is still going strong. They will know the exact ins and outs and I would guess be more than happy to help.

Others here such as Hargie (stone and wood), Alex T (little creatures) Simon from Hargreaves Hill (guess), taj (True South) and stephenkentucky have all been there and should be able to help too. There'll be others I haven't mentioned.

 

[Bizier]

Bottling is a lot more expensive and involved than kegging, I'd look at scoping your options for local tap points. Perhaps even places like restaurants currently with no taps where you could instal a basic draught setup for your product.

 

[peas_and_corn]

There were two episodes on Brew Strong that went into this- the economics and things to consider. They reckoned you'd need to make at least 5000 barrels before you cover your costs.

Episode 1

Episode 2