Whats The Skinny On Brewing Commercially ?

[Ducatiboy stu]

When it comes to equipment and costs, this is where it becomes an absolute nightmare. It costs about 25-28c per bottle (330ml )and 10-30c per label. Add about $1.20 for the carton, 80c for a six pack holder. Half the cost of the beer.

You will need to start thinking outside the square for the brewing gear. No need to spend mega bucks on a second hand turnkey micro, when, if you search the net, you can buy second hand stainless drums, tanks and vats,pumps, heat exchangers rather cheaply. Just think of it as a BIG all grain setup, not a Tooheys factory

Bottling, capping and labeling is horrifyingly expensive.A complete automatic machine will be about the same price as a new ( expensive) car. Or you can manually do it

It is possible and the more money you have the more money you can spend on it, but you have to think what happens when you spend $250,000 on a micro, make great beer and cant sell it. or spend $25,00 make great beer and cant sell it.You can start small and get big. Or you can start big and end up bust.

And a bit of market research is essentiall, for instanace, a few local pubs here want stout and cant seem to be able to buy enough of it.And they also liked the idea of a regional product that could be a tourist attraction.

Just a few thoughts on the matter...

Shall let you know when the first bottle rolls out of the shed...

 

[GMK]

Thansk Ducatiboy...

Where in NSW are you setting up....

Would like to come by and visit when i am out that way again.

 

[johnno]

Thats about right GMK.
Here you are telling me you cant get together on chat re your "Melbourne get together" thread.
And here you are running of to the bush just because Ducatiboy has a micro.
hmmmpppffff
:lol:

johnno

 

[Plastic Man]

Doc

In the vein of Ducatiboys Stu's post - drop into Matt's brewery at St Peters and have a chat. He has basically set it up from second hand bits and home made parts. His tip is to scour diary auctions / sell offs. Stainless with temp control - same needs as brewing.

From what you read - the brewing part is the easy bit. Its the selling that is the hard part. I had a crack at my own business a few years ago. It was a surf / skate clothing label. Getting the clothes made up was pretty easy. After calling on 140 shops from Sydeny to Noosa I realised that the selling part was going to be the hardest. I had $30K of clothes sitting in boxes but not many customers.

I ended up opening my own small shop. It basically meant that I had my stock on show and available for sale. Worked pretty well. I retailed and wholesaled at the same time. In a good month I'd take $15K. Sounds OK but still not enough to pay a wage.

Point being - if you go into Brewing it would be good to do it in a location where you can offer your "stock" for sale, but also do some kegging and maybe some bottling for wholesale bsuiness. This may mean finding a pub with some room and doing a deal with them. The pub gives you a cash flow from day one, and you go out and try and build up a wholesale business with other pubs at the same time - and establish a brand.

Take these thoughts as ramblings from someone who hasn't done it of course - but they may help some ideas.

good luck - richard.

PS - if you go to the Fairfax Web site and search Willie Simpsons stories - he has interviewed most of the well known micros at some time. Not a bad source of info.

 

[Mercs Own]

I have attatched some quotes I have recieved for new breweries. Interesting reading.

View attachment bavarian_quote.xls

View attachment DME_quote.doc

 

[Mercs Own]

One more quote and the micro brewery guide mentioned above.

View attachment Microbrewery_EMGuide.doc

View attachment Specific_quote1.xls

 

[roach]

Great info Paul. Amazing how they all work out to between US220K and US230K

 

[Mercs Own]

I meant to put this one in also as you can purchase it from Paul Biaggio in Aus. The Stockade brewery I mean Matilda Bay Garage Brewery is a Pivo system.

The other frightening thing to remember is the figures that I have quoted regarding bring in my 5o litre B3 mash system - duty, gst etc

View attachment 6hl_brewery_plant.xls

 

[Mercs Own]

Last one is for a 18hect Pivo.

Sure you can buy second hand breweries and you can also buy ex dairy equipment but there are stories to go with all of them - ie what didnt come in the container, what doesnt match up, power supplies etc

I reackon if you are seriously contemplating buying a brew house (which I am) then getting the advice of a brewing consultant - one preferably actively brewing in this country is a fairly postive first step.

View attachment Sales_Quote_18HL_Fielding.xls

 

[Gough]

Thanks for the interesting info Paul.

Shawn.

 

[Tim]

Excellent Info Paul.
All the best to everyone looking at going down the Micro path.
I'd love to have a Micro branded through a Boutique beer Cafe one day.

 

[arctopia]

You know, after reading all of this thread I have come to realise something: The best way to ruin a perfectly good hobby is to turn professional.

I enjoy cooking and I'm reasonably good at it. People have often asked me why I don't open a cafe or something and my reply is always that I won't do it because I like cooking too much. I'm not as good a brewer as I am a cook (and really I'm not that great a cook), but I've also had the romantic dreams of brewing commercially and basking all the glory that would inevitably come with it.

The trouble starts, I guess, when you are brewing for everybody else instead of yourself. How many artists make a decent buck if they stay true to themselves? I know plenty of arts and crafts people that say that the only stuff that sells is the stuff that they don't like. When you brew at home, you are an artist. You are creating something beautiful that is first and foremost for yourself. Once you go commercial, that all changes.

I think I'll hang up my dreams of commercial brewing and just concentrate on keeping the beer making fun, interesting and tasty.

 

[Ducatiboy stu]

Yes the idea of getting in a consultant and getting a full turnkey system is by far the easiest and most expensive. Consultants work on the " Unlimited budget theory"


The dairy route is a very good option, depending on what you want to do. Dairy suppliers also have great food grade santizers, fitting, hoses, pumps, temp gear tanks, vats etc. You just have to be creative when you build it.As we all are.

But if you wanted a showcase brewery, that sat being the bar for people to look at, the complete polished and shiny system would be the only way it could be done without scaring the customers. For me, the cows wont give a sh*t what it looks like, and the consumers will only see the bottled product. I could even do it in big plastic drums if need be. 10,000ltr poly tank is only about$2500....but a lot of hassle....but it will be all stainless for me.

It all comes down to budget and location basically...and sh*t loads of hard work

 

[Plastic Man]

If you look at some of the brands that have hung around for a while, most have fairly humble beginnings.

The Holgate guy started in a shed next to his house and kept his day job till it took off. The goat boys used to use the grand ridge brewery. Got a start with minimal outlay, then set up there own. (ref Willie Simpsons story Melb Real Ale Revival - I think its on teh reel beer web site)

I remember seeing a story on 9's morning show about the guy in Braidwood brewing and bottling in his garage. He's now grown bigger.

Lesson seem to be - Start small, try and keep your day job while establishing the business, unless you have heaps of dollars or rich backers, keep costs as low as possible, but don't skimp on the important stuff, and try and get cash flowing through the business asap. With cash flowing through you have some freedom to do some things. Without it things tend to grind to a halt. If you do a business plan with a cash flow - double the time you reckon it will take you to get to a certain stage. Oh - and buy your equipment cheap !!

Or forget about all that conservative crap and just do a Stone Brewing. Spend big and hope for the best !!