Is there is any way to run a packaging-only brewery and make profit? I have run all my calculations in my spreadsheets and haven't been able to get the profit to overtake the cost. Not talking startup equipment costs, but operating costs. Cost of cans + the reduction in revenue after wholesaler's cut is what is killing me. I am trying to open a brewery, but tap room locations that are affordable is extremely slim to none. I can find reasonably price leases without tap room abilities. Any advice?
Sorry for the late reply. You really need a viable tasting room where you can sell beer by the pint to provide cash flow until your BBL volume is large enough to pay the bills and profit. I think that's around 10,000 BBL's per year, which is quite a lot. I think I small tasting room brewery would be the way to go to make money, then do a small innovative packaging. A tasting room brewery doing 1,000 BBL's can be more profitable than a packaging brewery doing 10,000. More fun too in my opinion. I'll be writing about that this week.
I know you like to write for people on a budget, however I disagree on being basic on a packaging brewhouse. Having some of the fancy controls helps with consistency of the beer which is vital to a brewery as competition is more fierce. Also as labor becomes more expensive some more automation can pay for itself in the long run.
Neil you are right on all counts. You don't need a lot of controls for a 15 BBL system though, which would be your starter packaging set up. My buddies over at Telluride Brewing don't have them and they are consistent. However as you grow you are correct, on a 30 BBL system I would want more automation, etc. This system will get you to that point, growing organically, without having a million partners to pay for everything by starting big. What can I say, I probably am a wee bit too cheap!
Yeah agree with you Tom; can factor growth into the initial design if possible to help when you upgrade. Can make decent consistent beer on manual systems as long as you have good processes and follow SOP's.
The more commercial brewery training you have the better too. If you don't have much training and start on a fully manual system there will be a few teething troubles for sure.
Some automation can help, but as you say not necessarily needed.
Yes sir you know your stuff
Is there is any way to run a packaging-only brewery and make profit? I have run all my calculations in my spreadsheets and haven't been able to get the profit to overtake the cost. Not talking startup equipment costs, but operating costs. Cost of cans + the reduction in revenue after wholesaler's cut is what is killing me. I am trying to open a brewery, but tap room locations that are affordable is extremely slim to none. I can find reasonably price leases without tap room abilities. Any advice?
Sorry for the late reply. You really need a viable tasting room where you can sell beer by the pint to provide cash flow until your BBL volume is large enough to pay the bills and profit. I think that's around 10,000 BBL's per year, which is quite a lot. I think I small tasting room brewery would be the way to go to make money, then do a small innovative packaging. A tasting room brewery doing 1,000 BBL's can be more profitable than a packaging brewery doing 10,000. More fun too in my opinion. I'll be writing about that this week.
I know you like to write for people on a budget, however I disagree on being basic on a packaging brewhouse. Having some of the fancy controls helps with consistency of the beer which is vital to a brewery as competition is more fierce. Also as labor becomes more expensive some more automation can pay for itself in the long run.
Neil you are right on all counts. You don't need a lot of controls for a 15 BBL system though, which would be your starter packaging set up. My buddies over at Telluride Brewing don't have them and they are consistent. However as you grow you are correct, on a 30 BBL system I would want more automation, etc. This system will get you to that point, growing organically, without having a million partners to pay for everything by starting big. What can I say, I probably am a wee bit too cheap!
Yeah agree with you Tom; can factor growth into the initial design if possible to help when you upgrade. Can make decent consistent beer on manual systems as long as you have good processes and follow SOP's.
The more commercial brewery training you have the better too. If you don't have much training and start on a fully manual system there will be a few teething troubles for sure.
Some automation can help, but as you say not necessarily needed.
looking forward to the tasting room brewery write up!