Cost is one of the first things to consider when looking to start a brewery business. If you’ve considered this business idea, you might know by now that it comes with high startup costs. In fact, it’s one of the most expensive small business ideas you can pursue.
But how much does it cost exactly? In this guide, you will learn about the specifics of a business startup costs.
We cover the cost of brewery equipment, ingredient overheads, including lease costs, insurance and more.
The equipment needed to set up your brewery
The high initial start-up costs for a brewery are mainly spent on the brewing equipment. There is simply no way to get around these specific operating costs as you have to invest in quality equipment to make the best tasting beers.
You probably already have in mind a size of surgery you want to start with. The number of beers you want to brew per batch and then working back to the size of the machines you need. The material costs will therefore depend on this.
Here is a list of the brewing equipment you will need to start your own brewery. This is not a complete list, so you may need more depending on the type and size of the brewery you want to open.
- Fermentation system (fermentation tank, yeast adding equipment, etc.)
- Cooling system (cooling machine, glycol tank)
- Mash system (electric steam generator, malt mill, mash tank, plate heat exchanger, lauter tun, etc.)
- Control system (PLC control board, refrigerator board, meter control board)
- Cleaning system (alkaline liquid tank, washing pump, etc.)
The ingredients needed to brew your beers
You also need to purchase special ingredients needed to brew your beers. These ingredients are the basics and essentials you need to make a beer. To make a bar complete, you usually need four basic ingredients:
- Malted barley
You can easily find these ingredients in major retail stores and online, including through numerous homebrew stores such as The Brew Shop and Australian brewers just to name two. However, the cost of acquiring them will largely vary based on the volume you need them for.
Choose your brewery building/location wisely
In addition to equipment and ingredients, the location where your beers are brewed must also be considered. You need a large building to store and place all your brewing equipment in it. The building itself should be placed so that it is in the ideal condition for brewing.
Again, depending on the size of your homebrew aspirations, the space you need will differ. A home garage is a common place for the first brewer start-up, while commercial spaces are only needed for larger scale operations.
Wherever you are, remember that the brewery must be maintained at an accurate temperature. To be precise, it must be kept cool enough to allow for an efficient brewing process. There are different methods of cooling for a brewery and these are not necessarily cheap for a procedure or maintenance.
Therefore, it is probably not suitable for installation in an area with no cooling controls or in a warm, generally warm climate.
Making sure the brewery is properly set up and kept in ideal brewing condition is critical to getting not just the best tasting beers. It is also vital in the interests of safety and hygiene.
There are plenty of things to plan and build when making your own brewery, such as the plumbing, electrical system, floor, and tap system. Knowing the magnitude of the work that needs to be done should give you an idea of why starting your own brewery is considered one of the most expensive business startup ideas.
We recommend that you keep your first surgery down to a simple little kit for the home, but make sure you do good research and follow all safety precautions so that your home is safe and the finished product can be safely consumed as well.
Your first batch may not be the best tasting beer you’ve ever tried, but as long as it’s safe to drink, you’re on the right track.
Cost of making beer brewery
In general, most breweries are made in the range between $500,000 to $1 million† Many brewery startups can cost you that much money. However, the cost of starting a brewery can depend on many factors such as how big a brewery you plan to start your own brewery, what the production levels will be and the location.
Brewery insurance to reduce the risks
Building a brewery may be the dream of many, but it is not without risks. All small, medium and large businesses in Australia require some level of insurance.
For insurance programs specific to the brewery, companies read this guide from Midland Insurance: Brewery Insurance Programs
The initial investment cost is something to consider when planning to start this type of business. But if you have access to capital and the skills and knowledge to match it, then you should have no problem venturing into these types of business ideas. Be sure to analyze market demand so that you can also develop a unique value proposition for your products that will increase profitability.
Because you are reading this
I would recommend two different articles depending on your location:
If you have any questions, feedback, or additions to this post, please leave a comment below.
ah!! My name is Chris O, I am a professional creative copywriter. My writing process frees me from expectations, opens up space for my creativity and allows me to download all the thoughts, feelings and tensions floating around in my head.