Whats The Process To Become A Microbrewery

[BOG]

I've been searching everywhere and cannot find a documented process to follow to become a MicroBrewery.

At this point I'm not concerned about the business case, that will follow. (But if anyone has one I'd love to see the numbers)

I'd like to get "permission" to brew and sell my beer. Even if it dosn't make money it would be nice to sell it to cover my "Hobby".

Does anyone know where the process is documented so I can commence the paperwork trail to start my Micro.

2008 is the year for my own brewery!


BOG

 

[pokolbinguy]

I would assume you would have to apply through your council to get approval to use your location (house, shed, work) to run the brewery (health regs, fire ratings etc) and also apply for a liqour licence through the state government for an off licence.

Cheers, Pok

 

[SJW]

An ABN would be a start? and a good acountant!

 

[BOG]

I work in business so getting a company structure set up it less than a day. Seriously !

I know how to chase the $$ that's not an issue.

I just noticed a new Micro come up. Happy Goblin www.happygoblin.com (found it in the latest Beer and Brewer mag)

His web sit shows a business in startup. I can sell the Tinnie that's been parked on the lawn for the last 2 years to finance it if required.
I'm thinking there should be a well documented process to follow to get started.

If not why not. Can't be that hard and if it is, why is it?

I've checked out the NSW Brewers Guild Web site, nothing there. Doesn't seem to help promote new players.


BOG

 

[goatherder]

There was a post a while ago by /// which detailed the steps. Short version - total pain in the arse, 3 levels of approval (local, state and federal), all your capital up front before you can even apply for the approvals and many months before you can start brewing. Unfortunately NSW has probably the worst process in the country. If I was a cynic I'd say the process was designed by those in the business to keep new players out. Not to say it can't be done though - check out the thread about Happy Goblin.

 

[InCider]

BOG,

Start without all the flim-flammery of the legals and do it properly. Summer evenings at Shelly Beach for the underage kiddies, then DY and Longy. If you get kegs and vans, don't ignore Warriewood and Av.

Also, don't forget your local Golfie - Cromer might be tough, but Wakehurst are always up for a deal - that's how they got their landfill!

Sean.

 

[Thommo]

Found this on Amazon. Won't help you with the finer details about our legal system, etc, but I reckon it would be a good read all the same.

Link

Best of Luck, and give me a yell when you're opening.

Thommo.


EDIT: I can't post links...took me three goes to get it right.

 

[MHB]

The ATO Alcohol Industry Group
Have an information pack information that you will find useful they are available on 1300 137 290

Then you need a DA
A stale brewing licence
Then you get to do all the paperwork for the tax man.

Have lots of fun

MHB

Edit
Some of the American books might be very useful, remember that they have a very different excise system and that the information on legal/tax issue will be of little relivance.

M

 

[Doc]

Found this on Amazon. Won't help you with the finer details about our legal system, etc, but I reckon it would be a good read all the same.

Link

I've got that book.
It is a great read, and does give good insight into getting into the brewing business.
As MHB posted it is US centric when talking about industry costs/materials and legislation, but it is still a worthy read if you are serious about actually going all-in.

Here is a blog I've been following of a guy starting a brewery in California. Remember the US market for breweries is much more mature and the councils etc typically have already approved previous breweries so they have a reference for approving new ones. If there are no breweries in you council area, chances are they will be learning with you on what is required to authorise and get the appropriate paper work done.
Keeping that in mind his blog gives you all the problems he faced, and he still isn't quite open.

Adding to what others have already posted, once your site is approved etc, you still have to deal with the ATO and the EPA etc.

Doc

 

[Stuster]

A stale brewing licence

You really have to get one of these? I thought these were optional. :lol:

 

[MHB]

my big fat fingers strike again
m

 

[winkle]

You really have to get one of these? I thought these were optional. :lol:

lol, you've discovered Fosters secret :lol:

 

[Flippo]

Have you rang blokes like Murray's Brewery and other small brewery's around the joint? See how they did things. The bloke who was the brewer at the Macquarie in Wentworth Ave Sydney was/maybe still is a member here if I remeber correctly? That's a pretty small operation, even those two dickwads at that joint in Picton that was/is on Foxtel. Doubt they'd give you any real decent info though. Surely it would be worth all the hoop jumping if you're offering a quality product. I'm in a slightly similar situation myself at the moment, on the cusp of starting something but wondering if it's all worth it...... it's just that first big step.....

 

[Trent]

BOG
Might wanna get in touch with Peve (pretty sure it is Peve - or is it Punter?). I would know if I saw the face! Anyway, he is going through the process of starting up a micro, and dealing with all the governmental (should I emphasize mental?) crap at the moment. Or has been for the last year or so anyway. As others have said it takes a big pain in the arse, DA's, pretty sure ya have to get clearance from the food people, the taxman, etc... then get approval from your local council, subject to zoning laws where ya wanna have it. I believe that Happy Goblin is working out of a warehouse that may (or may not) be in an industrial area.
I think that /// once stated that to get his Vic brewers licence it was 4 pages and 3 weeks. His NSW brewers licence was something like 160 pages of affidavits, 4 to 6 court appearances with lawyers (that run $4-600 per hour) and also took 7 or 8 months. PM him and he can tell you if I am wrong on those quotes, or someone else will know how to search for that stuff.
I think that it is a very expensive foray (I know, I have looked into it briefly), but if it's what ya wanna do, and ya can get people to make things easier for you, then best of luck, mate, the more micro's the better. The wonderful work done by the Raise the Bar team is a step in the right direction aswell, and as such may make it easier for micro's to start popping up a-la Victoria and other states.
I am fairly sure that ya will wanna have at least the first year's worth of running costs behind you aswell, but I am sure you have already thought of that bit.
Keep us updated
All the best
Trent

 

[newguy]

I know 4 people who have started micros - in Canada, mind you, but the main lessons are probably applicable anywhere:
- When you've come up with a capital budget for equipment, supplies, rent, etc, double it.
- When you've come up with a detailed sales budget/growth forecast, halve it.

All 4 of them said words to this effect. And half said to go it alone, it will save heartache in the end. The other half said that investors are the way to go. So there you have it - a definitive roadmap to success!

 

[bigfridge]

Just to summarise what others have said in a round about way.

To open a commercial brewery in NSW you need to do 3 things:

- Lodge a Development Application with the local Council. Your proposed brewery will need to comply with their requirements for a food premises and satisfy them on things like pollution, trade waste, fire safety, parking etc. You will need to contact your council to get their requirements. You may even have to move your brewery to a different Local Government area if your council has strict requirements or may even be against the idea entirely.


- Obtain a Brewers License from the NSW Office of Liquor, Gaming and Racing to allow you to make beer. The Brewers License is issued by the NSW Licensing Court and the application process can take up to 6 months with multiple court appearances being required.

- Obtain an Excise license from the Australian Tax Office to allow you to sell your beer. You will need to submit detailed floor plans with your application, get your tanks calibrated for volume ($2,000 each) and have a site audit where they look at everything from your recipes, stock control, measurements, purchasing and down to the locks on your doors and windows to ensure that they comply.

Each step will take 3-6 months and end up costing you $10,000 to $100,000 depending on how much work you do yourself.

HTH,
David

 

[Ducatiboy stu]

Bigfridge is pretty much on the money.


You will need FULL compliance and permission from council before you can go anywhere near the Office of Liqour,Gaming & Racing. This will be a difficult step with council, as you will most likely get a reply of " You want to build a what....mate, we have never delt with one before....we will get back to you". There actually is a book that councils go by ( I have seen it ) for things like breweries, abbattiors, factories etc and they may refer to that...if they do...man you are up for a lot of hassle, if you can show it is only going to be small scale and waste etc is not an issue it may be easier.but you will need EVERYTHING sorted from cleaning chemicals to trub disposal.

You then go to the NSW OLGR and apply. If it is only for a brewery that has no retail license ( ie you are not selling to the public ) then life will be easier, once you want to sell from your brewery to the public, life gets impossible as any other license holder can object to it. A brewers license ONLY allows you to sell direct to retail or wholesale licensee's. You will find that most Micro's are set up within or as part of an existing licensed premises, this allows them to sell beer from the brewery via a retail outlet. Murry Brewery at Taylors Arm is an an example. They sell their beer thru the pub, which has its own license, you dont actually buy from Murry's

The ATO

Start here

http://www.ato.gov.au/businesses/pathway.a...001/003/043/003

They will want to know everything and then some. There primary purpose is to collect exise tax so you will have to account for every bit of grain and beer to make sure you are not cheating them. You will only need to have calibrated fermenters, as they collect exise on the brewed volume, not bottled. So if you brew 1000ltrs, but only bottle 750ltrs you pay excise on 1000ltrs. They will also take into account efficiency as well and will check your methods and recipies.

Finally, there is everything else like bottles,labels, transport etc. this is the most expensive part of it. The actual cost of the beer accounts for about 30% of the actuall total cost

Try this basic spreedsheet that I made up. You can fiddle with the number
View attachment beer_cost_sheet.xls

 

[Gerard_M]

You will need FULL compliance and permission from council before you can go anywhere near the Office of Liqour,Gaming & Racing. This will be a difficult step with council, as you will most likely get a reply of " You want to build a what....mate, we have never delt with one before....we will get back to you". There actually is a book that councils go by ( I have seen it ) for things like breweries, abbattiors, factories etc and they may refer to that...if they do...man you are up for a lot of hassle, if you can show it is only going to be small scale and waste etc is not an issue it may be easier.but you will need EVERYTHING sorted from cleaning chemicals to trub disposal.

It is always easier to let somebody else to all the "trail blazing" with local council, you will get a better reception from a council that already has a brewery with-in its boundaries as they already know what to expect.
Cheers
Gerard

 

[BOG]

Would the process have changed with the latest licencing laws changes in NSW?
What if you produce less that say 1000L per year. (Like a hobby farm, but a hobby brewery)

I've just finished a renovation of a 100 year old semi in Crows Nest.
Having now expeirenced North Sydney Council and taking 1 year to get a DA through I'm no longer scared of paperwork.

I've completed the project , which took over 2 years and i'm on a roll.
I need a new chalenge and I'm at least going to find the process and document it (as a minimum).

Thanks for the posts. I'll let you know how I go.

BOG

 

[Doc]

The new legislation is for the sale of alcohol in small cafes/restaurants.
It does not change the existing laws for the manufacture of alcohol.

Doc