Brewery Business Plan Template
Written by Dave Lavinsky
You’ve come to the right place to create your brewery business plan.
We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their craft breweries.
Brewery Business Plan Example
Below is a sample brewery business plan to help you write your own business plan:
Executive Summary
Business overview.
Mountain Craft Beer is a startup brewery located in Boulder, Colorado. The company is founded by Richard and Susan Williams, long-time craft beer enthusiasts who are ready to venture out and start their own brewing business. Richard has worked as a Brewmaster in a local brewery for over ten years. He has a Bachelor of Science degree in Food Science from the University of Colorado. Susan has a Masters degree in Business Administration from the University of New York. She has worked as a General Manager for a local restaurant and bar for the past five years. Now that the duo has obtained the experience and knowledge needed to run a craft beer business, Richard and Susan are ready to start a brewery of their own. Richard is confident in his ability to to manage the brewing process, while Susan is ready to take on the leadership role and manage all aspects of business operations. Richard and Susan will recruit a team of highly qualified professionals to help manage the day to day complexities of running a craft brewery – marketing and sales, accounting and budgeting, customer service, product management, and quality control.
Mountain Craft Beer will make unique craft beers that patrons can enjoy onsite or purchase through distributors. The Mountain Craft Beer brewery will provide a fun taproom tasting experience for guests to try out new brews. Mountain Craft Beer will be the ultimate choice in Boulder for its specialty craft beers made with premium locally sourced ingredients.
Product Offering
The following are the products and services that Mountain Craft Beer will provide:
- Craft beer tasting
- Barrel-aged beer
- Seasonal IPAs
- Seasonal Ales
- Branded merchandise and apparel
Customer Focus
Mountain Craft Beer will target all individuals over the age of 21 in Boulder, Colorado. They will target locals and tourists. They will also target all beer-drinkers from seasoned connoisseurs to individuals brand new to craft beer, and everyone in between. No matter the customer, Mountain Craft Beer will deliver the best customer service, unique product offerings, and craft beer tastings led by friendly, knowledgeable staff.
Management Team
Mountain Craft Beer will be owned and operated by Richard and Susan Williams, long-time craft beer enthusiasts who are ready to venture out and start their own brewing business. Richard has worked as a Brewmaster in a local brewery for over ten years. He has a Bachelor of Science degree in Food Science from the University of Colorado. Susan has a Masters degree in Business Administration from the University of New York. She has worked as a General Manager for a local restaurant and bar for the past five years. Now that the duo has obtained the experience and knowledge needed to open their own business, Richard and Susan are ready to start a craft brewery of their own. Richard is confident in his ability to to manage the craft brewing process, while Susan is ready to take on the leadership role and manage all aspects of business operations.
Success Factors
Mountain Craft Beer will be able to achieve success by offering the following competitive advantages:
- Friendly, knowledgeable, and highly qualified team of brewing professionals that will create unique flavors and blends, lead tasting experiences, and serve as informative guides providing the best customer service around.
- Unique product selection made with premium locally-sourced ingredients. New beers will be introduced each month and rotating seasonal selections will be renewed based on popularity.
- Mountain Craft Beer will be able to offer the best pricing in town because they will save on shipping costs by using local suppliers. The savings will be passed on to customers.
Financial Highlights
Mountain Craft Beer is seeking $500,000 in debt financing to launch its brewery business. The funding will be dedicated towards securing the facility and purchasing brewing equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and association memberships. The breakout of the funding is below:
- Build-out of the facility: $100,000
- Brewing equipment, supplies, and ingredients: $240,000
- Three months of overhead expenses (payroll, rent, utilities): $140,000
- Marketing costs: $10,000
- Working capital: $10,000
The following graph below outlines the pro forma financial projections for Mountain Craft Beer.
Company Overview
Who is mountain craft beer.
Mountain Craft Beer is a newly established craft brewing company in Boulder, Colorado. Mountain Craft Beer will be the ultimate choice for craft beer enthusiasts in the area. Mountain Craft Beer will provide an exclusive selection of craft beers, with new editions being introduced monthly and rotating seasonal selections that will be renewed based on popularity. Their exclusive, customer-centric approach combined with their use of locally sourced ingredients will make them a unique alternative to the typical craft beer experience. Mountain Craft Beer will be able to cater to their customers with unique product offerings and informative beer tasting events led by a team of highly qualified brewers. Mountain Craft Beer’s mission is to provide a fun and welcoming experience for its customers while delivering highly sought after creations that can’t be found anywhere else.
Mountain Craft Beer History
Mountain Craft Beer is owned and operated by Richard and Susan Williams, long-time craft beer enthusiasts who are ready to venture out and start their own brewing business. Richard has worked as a Brewmaster in a local brewery for over ten years. He has a Bachelor of Science degree in Food Science from the University of Colorado. Susan has a Masters degree in Business Administration from the University of New York. She has worked as a General Manager for a local restaurant and bar for the past five years.
Since incorporation, Mountain Craft Beer has achieved the following milestones:
- Registered Mountain Craft Beer, LLC to transact business in the state of Colorado.
- Has a contract in place to lease the brewing facility.
- Reached out to numerous contacts to include craft beer enthusiasts, former customers, and friends and family networks to create excitement for the new brewery.
- Began recruiting a staff of brewers, sales associates, and marketing professionals to work at Mountain Craft Beer.
Mountain Craft Beer Services
Industry analysis.
The global craft brewing industry is valued at $95BM. Beer is known for being the oldest and most broadly consumed beverage in the alcoholic category worldwide. The craft beer segment of the retail beer market in the United States has been growing steadily over the past ten years. In 2012, craft beer accounted for approximately 10% of the market. By 2021, this number increased to 26.8% of the market.
The U.S. brewery industry first became popular in the 2000s and hasn’t stopped growing since then. In 2006, there were approximately 1,400 breweries across the country. As of 2020, this number has grown to over 9,000.
The primary driver for growth in the United States craft beer market is the public’s increasing desire to find new and innovative drinks. The three most popular types of craft beers are pilsner, ale, and lager. Lager is the most popular of the three. Craft brewery industry operators can maintain a competitive advantage in the market by producing unique flavors and catering to their customers’ tastes.
Customer Analysis
Demographic profile of target market.
The precise demographics for Boulder, Colorado are:
Total | Percent | |
---|---|---|
Total population | 1,680,988 | 100% |
Male | 838,675 | 49.9% |
Female | 842,313 | 50.1% |
20 to 24 years | 114,872 | 6.8% |
25 to 34 years | 273,588 | 16.3% |
35 to 44 years | 235,946 | 14.0% |
45 to 54 years | 210,256 | 12.5% |
55 to 59 years | 105,057 | 6.2% |
60 to 64 years | 87,484 | 5.2% |
65 to 74 years | 116,878 | 7.0% |
75 to 84 years | 52,524 | 3.1% |
Customer Segments
Mountain Craft Beer will primarily target the following customer profiles:
- Residents 21 and over of Boulder, Colorado and surrounding areas
- Tourists 21 and over of Boulder, Colorado and surrounding areas
- Craft beer connoisseurs and enthusiasts (21 and over)
- Craft beer newbies (21 and over)
Competitive Analysis
Direct and indirect competitors.
Mountain Craft Beer will face competition from other companies with similar business profiles. A description of each competitor company is below.
Boulder Brewery
Boulder Brewery is a newly established craft beer brewery and gastropub located in Boulder, Colorado. Boulder Brewery is owned and operated by a team of professional brewmasters and chefs. The brewery offers onsite craft beer tastings and has a full restaurant open seven days per week. Boulder Brewery also sells its craft beer to distributors. The brewery promises to provide unique flavor blends and premium exotic ingredients.
BC Craft Beer Company
BC Craft Beer Company is a Colorado-based brewery that provides fresh craft beer blends. BC Craft Beer Company provides a comprehensive menu of ales, pilsners, lagers, and other beers on site and available to order online. The owners of BC Craft Beer Company are former brewmasters so they understand how to create fine craft beers from scratch. Customers can depend on their unique brewing process to achieve one-of-a-kind drinks. By choosing BC Craft Beer Company customers know they are getting the highest quality ingredients and specialty beverages they can brag about. BC Craft Beer Company uses holistic inspections and quality control measures to ensure each batch exceeds the most stringent quality standards.
Crafty Colorado Brews
Crafty Colorado Brews is a trusted Colorado brewery that provides superior service to patrons in Boulder, Colorado and the surrounding areas. The company makes small batches of seasonal drinks onsite. Products include pale ales, pilsners, and lagers. Crafty Colorado Brews hosts craft beer tasting events onsite and also distributes its products to local restaurants and liquor stores.
Competitive Advantage
Mountain Craft Beer will be able to offer the following advantages over their competition:
- Friendly, knowledgeable, and highly qualified team of brewing professionals that is able to create high quality, unique flavors using locally sourced ingredients and cater to customers’ preferences.
- New flavors developed each month and rotating seasonal selections that are renewed based on popularity.
- Mountain Craft Beer offers the best pricing in town. Their pricing structure is the most cost effective compared to the competition.
Marketing Plan
Brand & value proposition.
Mountain Craft Beer will offer the unique value proposition to its clientele:
- Highly-qualified team of skilled employees that is able to lead fun tasting events and provide insightful information to craft beer enthusiasts and novices alike.
- Unbeatable pricing to its customers – Using local suppliers allows the company to save on shipping costs and pass these savings on to its customers.
Promotions Strategy
The promotions strategy for Mountain Craft Beer is as follows:
Word of Mouth/Referrals
Richard and Susan Williams have built up an extensive network of craft beer enthusiasts and industry professionals. They plan to leverage this network to help them promote the new brewery.
Professional Associations and Networking
Mountain Craft Beer will become a member of Colorado Brewers Guild, Brewers Association, and the Master Brewers Association of the Americas. They will focus their networking efforts on expanding their customer network.
Print Advertising
Mountain Craft Beer will invest in professionally designed print ads to display in programs or flyers at industry networking events, magazines, direct mailers, and newspapers.
Website/SEO Marketing
Mountain Craft Beer will utilize an in-house marketing director to design the company website. The website will be well organized, informative, and list all of Mountain Craft Beer’s current product offerings. The website will also list contact information and upcoming tasting events.
The marketing director will also manage Mountain Craft Beer’s website presence with SEO marketing tactics so that anytime someone types in the Google or Bing search engine “Colorado craft beer” or “brewery near me”, Mountain Craft Beer will be listed at the top of the search results.
Social Media/Influencers
The marketing director will create a brand presence across multiple social media platforms such as Facebook, Instagram, Twitter, and TikTok. These accounts will be updated regularly to maintain an active social media presence. The company will work with social media influencers who will help to promote its products.
Pricing Strategy
The pricing of Mountain Craft Beer will be moderate and slightly lower than competitors so customers feel they receive value when purchasing craft beer from the company.
Operations Plan
The following will be the operations plan for Mountain Craft Beer.
Operation Functions:
- Richard Williams – Co-owner and Brewmaster who will oversee all brewing staff and manage the product development process.
- Susan Williams – Co-Owner and Brewery Operations Manager who will oversee all staff (outside of brewers) including sales, marketing, accounting, and maintenance employees.
- Ben Smith – Staff Accountant will provide all client accounting, tax payments, and monthly financial reporting.
- Michelle Miller – Marketing Director who will provide all marketing promotions for Mountain Craft Beer.
- John Davis – Maintenance Director who will provide all maintenance for the facility.
Milestones:
Mountain Craft Beer will have the following milestones complete in the next six months.
8/1/2022 – Finalize contract to lease facility
8/15/2022 – Finalize personnel and staff employment contracts
9/1/2022 – Begin build-out of the brewery
9/15/2022 – Begin networking at industry events
9/22/2022 – Begin moving into the facility
10/1/2022 – Mountain Craft Beer opens its brewery for business
Financial Plan
Key revenue & costs.
The revenue drivers for Mountain Craft Beer are the fees charged to customers in exchange for the products and fees charged to enter exclusive tasting events.
The cost drivers will be the overhead costs required in order to staff a brewery. The expenses will be the payroll cost, rent, utilities, craft beer ingredients, and marketing materials.
Funding Requirements and Use of Funds
Key assumptions.
The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.
- Number of Beers Sold Per Month: 3,000
- Average Fees per Month: $15,000
- Office Lease per Year: $100,000
Financial Projections
Profit and loss statement.
FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
---|---|---|---|---|---|---|
Revenues | ||||||
Total Revenues | $360,000 | $793,728 | $875,006 | $964,606 | $1,063,382 | |
Expenses & Costs | ||||||
Cost of goods sold | $64,800 | $142,871 | $157,501 | $173,629 | $191,409 | |
Lease | $50,000 | $51,250 | $52,531 | $53,845 | $55,191 | |
Marketing | $10,000 | $8,000 | $8,000 | $8,000 | $8,000 | |
Salaries | $157,015 | $214,030 | $235,968 | $247,766 | $260,155 | |
Initial expenditure | $10,000 | $0 | $0 | $0 | $0 | |
Total Expenses & Costs | $291,815 | $416,151 | $454,000 | $483,240 | $514,754 | |
EBITDA | $68,185 | $377,577 | $421,005 | $481,366 | $548,628 | |
Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
EBIT | $41,025 | $350,417 | $393,845 | $454,206 | $521,468 | |
Interest | $23,462 | $20,529 | $17,596 | $14,664 | $11,731 | |
PRETAX INCOME | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
Use of Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
Taxable Income | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
Income Tax Expense | $6,147 | $115,461 | $131,687 | $153,840 | $178,408 | |
NET INCOME | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 |
Balance Sheet
FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
---|---|---|---|---|---|---|
ASSETS | ||||||
Cash | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 | |
Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
Inventory | $30,000 | $33,072 | $36,459 | $40,192 | $44,308 | |
Total Current Assets | $184,257 | $381,832 | $609,654 | $878,742 | $1,193,594 | |
Fixed assets | $180,950 | $180,950 | $180,950 | $180,950 | $180,950 | |
Depreciation | $27,160 | $54,320 | $81,480 | $108,640 | $135,800 | |
Net fixed assets | $153,790 | $126,630 | $99,470 | $72,310 | $45,150 | |
TOTAL ASSETS | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 | |
LIABILITIES & EQUITY | ||||||
Debt | $315,831 | $270,713 | $225,594 | $180,475 | $135,356 | |
Accounts payable | $10,800 | $11,906 | $13,125 | $14,469 | $15,951 | |
Total Liability | $326,631 | $282,618 | $238,719 | $194,944 | $151,307 | |
Share Capital | $0 | $0 | $0 | $0 | $0 | |
Retained earnings | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
Total Equity | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
TOTAL LIABILITIES & EQUITY | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 |
Cash Flow Statement
FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
---|---|---|---|---|---|---|
CASH FLOW FROM OPERATIONS | ||||||
Net Income (Loss) | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 | |
Change in working capital | ($19,200) | ($1,966) | ($2,167) | ($2,389) | ($2,634) | |
Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
Net Cash Flow from Operations | $19,376 | $239,621 | $269,554 | $310,473 | $355,855 | |
CASH FLOW FROM INVESTMENTS | ||||||
Investment | ($180,950) | $0 | $0 | $0 | $0 | |
Net Cash Flow from Investments | ($180,950) | $0 | $0 | $0 | $0 | |
CASH FLOW FROM FINANCING | ||||||
Cash from equity | $0 | $0 | $0 | $0 | $0 | |
Cash from debt | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
Net Cash Flow from Financing | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
Net Cash Flow | $154,257 | $194,502 | $224,436 | $265,355 | $310,736 | |
Cash at Beginning of Period | $0 | $154,257 | $348,760 | $573,195 | $838,550 | |
Cash at End of Period | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 |
Free Business Plan Template PDF for a Brewery
You can download our free brewery business plan template PDF here. This is a brewery business plan template you can use in PDF format. You can easily complete your business plan using our Brewery Business Plan Template here .
Brewery Business Plan FAQs
What is a brewery business plan.
A brewery business plan is a plan to start and/or grow your brewery business. Among other things, it outlines your brewery concept, identifies your target customers, presents your marketing strategy, and details your financial projections.
What are the Steps To Start a Brewery Business?
Starting a brewery business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your business goals and get started faster.
1. Write a Brewery Business Plan – The first step in starting a business is to create a detailed brewery business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.
2. Choose Your Legal Structure – It’s important to select an appropriate legal entity for your brewery business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do market research and choose wisely so that your brewery business is in compliance with local laws.
3. Register Your Brewery Business – Once you have chosen a legal structure, the next step is to register your brewery business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.
4. Identify Financing Options – It’s likely that you’ll need some capital to start your brewery business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.
5. Choose a Location – Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of brewery space would be suitable for your operations.
6. Hire Employees – There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.
7. Acquire Necessary Brewery Equipment & Supplies – In order to start your brewery business, you’ll need to purchase all of the necessary equipment and supplies to run a successful operation.
8. Market & Promote Your Business – Once you have all the necessary pieces in place, it’s time to start promoting and marketing your brewery business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing strategies such as radio or print advertising.
Learn more about how to start a successful brewery business and the business planning process:
How to Start a Brewery Business
How to Start a Brewery
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Brewery business plan templates and examples [Free and paid]
- Published on August 16, 2024
- by Oguzhan Uyar
- Last updated: 2 weeks ago
Securing funding for your brewery dream in 2024? It all starts with a rock-solid business plan.
But where do you begin? How do you make your plan stand out from the crowd and convince investors to take a chance on your sudsy vision?
Fear not, aspiring brewery owner. We’ve got you covered with 7 brewery business plan templates that will help you navigate the planning process and impress potential funders.
From crafting a compelling executive summary to nailing your financial projections, these templates will guide you every step of the way.
So grab a cold one, and let’s dive into creating a business plan that will make your brewery dreams a reality.
Brewery Business Plan Templates: Key Elements for Success
Creating a comprehensive and compelling business plan is crucial for any aspiring brewery owner seeking to secure funding and establish a successful venture. By incorporating key elements and following a structured template, you can effectively communicate your brewery’s unique value proposition, target market, and growth potential to investors and stakeholders. Learn how to craft an effective plan for your brewery business , ensuring your vision comes to life by understanding what constitutes an impactful brewery business plan.
Executive Summary: Your Brewery’s Unique Value Proposition
The executive summary is the first and most critical section of your brewery business plan. It should provide a concise overview of your brewery’s mission, goals, and unique selling points. This section is your opportunity to capture the attention of potential investors and convince them to read further. Interested in structuring an effective brewery business plan? Learn how to craft a compelling executive summary and other key components for success.
Crafting a Compelling Overview
Begin by stating your brewery’s mission statement, which should encapsulate your core values and long-term objectives. Highlight your brewery’s unique selling points, such as your focus on locally sourced ingredients, innovative brewing techniques, or commitment to sustainability. Clearly define your target market, including demographics, preferences, and buying habits.
Summarizing Financial Projections and Funding Requirements
Provide a brief summary of your financial projections, including revenue, expenses, and profitability over the next 3-5 years. Clearly state your funding requirements and how you plan to allocate the funds to support your brewery’s growth and operations.
TIP: Ensure that your financial projections are realistic and well-researched. Consider using industry benchmarks and consulting with financial experts to validate your assumptions.
Company Description: Showcasing Your Brewery’s Identity
The company description section should provide a detailed overview of your brewery’s history, ownership structure, and physical location. This section helps investors understand your brewery’s background and sets the stage for your future growth plans.
Detailing Your Brewery’s History and Ownership
Begin by outlining your brewery’s history, including when and how it was founded, as well as any significant milestones or achievements. Provide information about the ownership structure, including the names and backgrounds of the key stakeholders and their roles within the company. Eager to ensure your brewery becomes a financial success ? Make sure to revisit and refine your business plan regularly to stay aligned with your profitability goals.
Describing Your Brewery’s Location and Facilities
Provide a detailed description of your brewery’s physical location, including the size of the facility, production capacity, and any unique features or amenities. Discuss the advantages of your location, such as proximity to key suppliers, distribution channels, or a thriving craft beer scene.
TIP: Include images or floor plans of your brewery to help investors visualize your facility and production capabilities.
Showcasing Your Brewery’s Core Values and Brand Personality
Discuss your brewery’s core values and how they shape your brand identity and company culture. Describe your brand personality, including the tone, voice, and visual elements that set your brewery apart from competitors. Outline your vision for growth, including plans for expansion, new product lines, or distribution strategies.
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Crafting a Winning Brewery Business Plan Outline
Creating a well-structured and engaging business plan outline is crucial for securing funding and guiding your brewery’s growth. A winning outline should cover all essential aspects of your business, from market analysis to financial projections, while being easy to navigate and compelling to potential investors.
Market Analysis: Understanding Your Target Audience and Competition
Conducting thorough market research is the foundation of a solid business plan. Start by identifying your target audience, including their demographics, preferences, and buying habits. Analyze consumer trends in the craft beer industry, such as the growing demand for unique flavors and local offerings.
Next, evaluate your competition at both local and regional levels. Identify their strengths and weaknesses, and look for opportunities to differentiate your brewery. Consider factors such as their product offerings, pricing, taproom experience, and distribution reach.
Conducting Market Research
Survey potential customers to gather insights on their preferences and expectations
Attend local beer festivals and events to observe consumer behavior and trends
Analyze sales data and market reports from industry associations and research firms, such as the Craft Beer Market Research Report by IBISWorld
Check what a detailed Market Analysis can bring to the table wth this template
Product Line and Services: Showcasing Your Brewery’s Offerings
Your product line is the heart of your brewery business plan. Describe your core beer styles, seasonal offerings, and any limited-edition or experimental brews. Highlight the unique aspects of your products, such as locally-sourced ingredients, innovative brewing techniques, or eye-catching packaging.
In addition to your beer offerings, outline any additional services or experiences your brewery provides. This may include a taproom, beer garden, or event space. Describe how these services contribute to your brand identity and customer loyalty.
Marketing and Sales Strategy: Reaching and Engaging Your Target Audience
A comprehensive marketing and sales strategy is essential for attracting customers and driving revenue. Develop a strong brand identity that reflects your brewery’s unique personality and values. Create a marketing plan that includes tactics such as social media campaigns, email marketing, and partnerships with local businesses or events.
Your sales strategy should outline your distribution channels, pricing structure, and sales targets. Consider the balance between on-premise sales (taproom) and off-premise sales (retail distribution). Establish relationships with local bars, restaurants, and liquor stores to expand your reach.
Building Your Brand
Design a memorable logo and packaging that stands out on shelves and social media
Develop a consistent brand voice and messaging across all marketing channels
Engage with your audience through storytelling, behind-the-scenes content, and user-generated content, as seen in successful campaigns by breweries like Stone Brewing
By crafting a detailed and compelling business plan outline, you’ll be well-equipped to secure funding and guide your brewery’s growth. Remember to keep your plan concise, visually appealing, and easy to navigate for potential investors and partners.
Mastering Brewery Business Plan Financials
Startup costs and funding requirements: planning for success.
Crafting a detailed breakdown of your brewery’s startup costs is crucial for securing funding and ensuring a smooth launch. Begin by listing all the necessary equipment, such as brewing systems, fermentation tanks, and packaging machinery. Include the costs of any facility improvements or renovations required to accommodate your brewery’s operations. Don’t forget to account for inventory expenses, including raw materials like hops, malt, and yeast.
Developing a Funding Strategy
Once you have a clear understanding of your startup costs, outline your funding requirements and sources. Determine how much personal investment you can contribute and explore additional options, such as business loans or attracting investors. Be realistic about the amount of funding you need and the timeline for securing it.
Average Rates: According to the Nerd Wallet , the average interest rate for business loans range from 6.14% to 12.47% as of July 2024.
Creating a Launch Timeline
Develop a detailed timeline that outlines the steps from securing funding to launching your brewery. Include milestones such as equipment installation, facility preparation, and obtaining necessary licenses and permits. This timeline will help you stay on track and demonstrate to potential investors that you have a well-thought-out plan.
This template will ensure you’re on track for your launch
Financial Projections: Forecasting Your Brewery’s Growth and Profitability
To showcase your brewery’s potential, create a 3-5 year financial projection that includes revenue, expenses, and cash flow. Start by estimating your production capacity and expected sales volume based on market research and competitor analysis. Factor in the costs of raw materials, labor, utilities, and other operating expenses. Use this information to generate projected income statements and cash flow statements.
Identifying Key Assumptions and Drivers
Be transparent about the key assumptions and drivers behind your financial projections. Explain how factors such as production efficiency, pricing strategy, and distribution channels impact your revenue and expenses. Identify potential risks and challenges that could affect your projections, and outline strategies for mitigating these risks. Industry benchmarks suggest that breweries with efficient production processes can reduce costs by up to 15%.
Scenario Planning for Financial Resilience
To demonstrate your brewery’s financial resilience, develop best-case, worst-case, and realistic scenarios. Utilizing scenario planning software can facilitate this process by allowing you to create detailed and dynamic models. The best-case scenario should showcase your brewery’s potential for rapid growth and profitability, while the worst-case scenario should address potential challenges and how you plan to overcome them. The realistic scenario should provide a balanced view of your brewery’s expected performance based on current market conditions and your competitive advantages. A break-even analysis can help illustrate when your brewery will become profitable under each scenario.
By presenting a comprehensive financial plan that includes detailed startup costs, funding requirements, and realistic projections, you’ll be well-positioned to secure the necessary funding and support to launch and grow your brewery business.
Operations and Management: Ensuring Smooth Brewery Operations
Production and quality control: crafting consistently exceptional beer.
A well-designed production process is the foundation of any successful brewery. Start by outlining your brewing process, including the equipment you’ll be using, the ingredients you’ll source, and the quality control measures you’ll implement at each stage.
Brewing Equipment and Facilities
Invest in high-quality brewing equipment that can handle your production volume and ensure consistent results. Consider factors such as:
🍺 Brewhouse size and capacity
🍺 Fermentation and conditioning tanks
🍺 Packaging equipment (bottling, canning, or kegging)
🍺 Laboratory equipment for quality control testing
Ingredient Sourcing and Quality
The quality of your ingredients directly impacts the quality of your beer. Develop relationships with reliable suppliers who can provide consistent, high-quality ingredients:
🌾 Malted grains (barley, wheat, rye, etc.)
🌾 Hops (pellets, whole leaf, or extracts)
🌾 Yeast strains (ale, lager, or specialty strains)
🌾 Water (treated or filtered to ensure consistency)
Quality Control and Testing
Implement a robust quality control program to ensure consistency and prevent off-flavors or contamination:
🔎 Regularly calibrate and maintain brewing equipment
🔎 Conduct sensory evaluations at each stage of the brewing process
🔎 Perform laboratory tests (gravity, pH, IBU, etc.) to monitor fermentation and ensure product consistency
🔎 Implement a recall plan in case of any quality issues
Inventory Management and Supply Chain Partnerships: Optimizing Efficiency
Effective inventory management and strong supply chain partnerships are essential for optimizing efficiency and minimizing waste in your brewery operations.
Inventory Management System
Implement an inventory management system to track raw materials, finished products, and packaging supplies:
🍺 Use software solutions (e.g., BeerBoard, Ekos Brewmaster) to monitor inventory levels and automate reordering
🍺 Conduct regular physical inventory counts to ensure accuracy
🍺 Establish par levels for each item to avoid stockouts or overstocking
🍺 Analyze sales data to forecast demand and optimize production schedules
Supply Chain Partnerships
Develop strategic partnerships with suppliers to ensure a reliable and cost-effective supply of raw materials and packaging:
📈 Negotiate long-term contracts with favorable pricing and delivery terms
📈 Collaborate with suppliers on forecasting and production planning to avoid shortages or delays
📈 Explore opportunities for bulk purchasing or group buying with other local breweries to reduce costs
Sustainability and Environmental Responsibility
Highlight your commitment to sustainability and environmental responsibility in your brewery operations:
🌾 Implement water conservation measures, such as reclaiming rinse water or using low-flow fixtures
🌾 Explore energy-efficient equipment and renewable energy sources (e.g., solar panels)
🌾 Develop a waste reduction and recycling program for spent grain, packaging materials, and other byproducts
🌾 Partner with local farmers or food producers to repurpose spent grain as animal feed or compost
🌾 Get inspired by Sierra Nevada’s solar array , which generates 20% of the brewery’s electricity
🌾 Check out New Belgium’s wastewater treatment system : it produces biogas for energy production
By focusing on production quality, management structure, inventory efficiency, and sustainability, you can create a solid foundation for your brewery’s long-term success. These elements demonstrate to investors that you have a well-conceived plan for ensuring smooth and profitable operations.
Appendices and Supporting Documents: Strengthening Your Business Plan
Financial statements and projections.
A strong business plan requires detailed financial statements and projections to demonstrate the viability of your brewery. Include balance sheets, income statements, and cash flow projections for the next 3-5 years. These documents should be based on realistic assumptions and supported by thorough research.
Additionally, provide supporting documentation such as tax returns, contracts, and lease agreements. This level of transparency builds trust with potential investors and lenders, showing that you have a solid understanding of your brewery’s financial health and future potential.
Learn about your business’ future with this financial projection template
Market Research and Competitive Analysis
Investors want to see that you have a deep understanding of your target market and the competitive landscape. Include relevant market research data, such as industry reports, consumer surveys, and competitor profiles. This information should highlight the demand for craft beer in your area and identify any gaps in the market that your brewery can fill.
Provide a detailed SWOT analysis of your brewery, identifying its strengths, weaknesses, opportunities, and threats. This analysis should demonstrate your ability to capitalize on your unique selling points while mitigating potential risks.
Learn everything you need to know about your brewery with this SWOT template
Industry Reports and Consumer Surveys
📦 Craft Beer Market Size and Growth Projections
📦 Consumer Preferences and Buying Habits
📦 Local and Regional Market Trends
Competitor Profiles
🍻 Established Breweries in Your Area
🍻 Emerging Craft Beer Brands
🍻 Unique Selling Points and Market Positioning
Product and Packaging Samples
Your brewery’s products and packaging are the face of your brand. Include high-quality images of your beer labels, packaging designs, and merchandise in your business plan’s appendices. These visuals should showcase your brand’s unique identity and appeal to your target audience.
Provide samples of your marketing materials, such as brochures, flyers, and social media content. These materials should demonstrate your ability to effectively promote your brewery and engage with potential customers.
Beer Labels and Packaging Designs
👁️ Unique and Eye-Catching Artwork
👁️ Consistent Branding Across Product Lines
👁️ Sustainable and Environmentally-Friendly Materials
Merchandise and Promotional Items
🛍️ Branded Glassware and Apparel
🛍️ Custom Tap Handles and Signage
🛍️ Promotional Giveaways and Loyalty Program
Legal Documents and Permits
Demonstrating your commitment to compliance and due diligence is crucial when seeking funding for your brewery. Include copies of all necessary legal documents and permits in your business plan’s appendices, such as:
👉 Business License and Registration
👉 Federal Brewer’s Notice (TTB Form 5130.10)
👉 State and Local Alcohol Permits
👉 Food Service Licenses (if applicable)
👉 Lease Agreements or Property Deeds
👉 Insurance Policies
Having these documents readily available shows potential investors and lenders that you have taken all the necessary steps to operate your brewery legally and responsibly.
Personnel and Management Team
Your brewery’s success depends on the strength of your team. Include detailed biographies of your key personnel and management team, highlighting their relevant experience, skills, and qualifications. This section should demonstrate that you have assembled a well-rounded team capable of executing your business plan and achieving your goals.
Founder and Head Brewer
👥 Professional Background and Brewing Experience
👥 Awards and Recognition in the Craft Beer Industry
👥 Vision for the Brewery’s Future
Sales and Marketing Manager
🗣️ Experience in Craft Beer Sales and Distribution
🗣️ Proven Track Record of Building Brand Awareness
🗣️ Strategies for Expanding Market Share
By including these essential appendices and supporting documents, you will strengthen your brewery’s business plan and increase your chances of securing the funding needed to bring your vision to life. Potential investors and lenders will appreciate the level of detail and transparency provided, demonstrating your commitment to building a successful and sustainable craft beer brand.
Your Recipe for Brewery Success
You now have the essential ingredients to craft a compelling brewery business plan that will impress investors and set your brewery up for success. By showcasing your unique value proposition, understanding your target market, and developing a solid financial strategy, you’ll be well on your way to securing the funding you need to bring your vision to life.
Remember, a well-crafted business plan is more than just a document – it’s a roadmap for your brewery’s future. As you navigate the exciting world of craft brewing, refer back to your plan regularly, adjusting and refining as needed to stay on course.
Are you ready to take the next step in your brewery journey? Start by choosing one of the templates we’ve discussed and begin filling in the details of your plan. With dedication, passion, and a solid plan in place, you’ll be pouring your first pint before you know it.
Cheers to your brewing success!
What is a good brewery business plan?
Do you have a profitable brewery? review your business plan
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How to Write a Brewery Business Plan: Free Template & Guide
Thinking about having a microbrewery? Good call.
Starting your own brewery can be an exciting and fulfilling venture as the craft beer industry continues to grow at a rapid pace!
However, you will need a well-thought-out business plan to start and navigate the intricacies of the brewing process, starting from perfect recipes to scale production and handling logistics.
Need help getting your plan in order?
Not to worry. Explore this brewery business plan that will surely help you get started and guide you on every stage of your business plan writing.
Sounds good? Let’s dive right in!
What is a Brewery Business Plan?
A brewery business plan is a professional document that outlines the entire strategy for starting and running a brewery. It includes business goals, strategies to achieve them, and financial forecasts for the next few years.
It serves as a strategic roadmap for your brewery business, guiding your business’s growth, managing its operations, and securing funding from investors or financial institutions.
Simply put, it’s not just a written document; it’s a detailed blueprint to steer your brewery toward success.
Now that you know what a brewery business plan is, let’s move forward to understand why you need to write one.
Why Do You Need a Brewery Business Plan?
If you’re looking to start a new brewery or expand an existing one, you will need a business plan. It supports you in getting your business off the ground as smoothly and effectively as possible.
Here are a few key reasons why you need a business plan for your brewery:
- A brewery business plan will let you carefully provide all the details about your brewery, including its vision, mission, objectives, product offerings, and operational aspects.
- A comprehensive plan covers startup costs, revenue forecasts, and realistic financial projections that allow you to manage cash flows better and plan for brewery expenses.
- Breweries or any businesses often encounter risks and challenges. At that time, writing a business plan will help you identify potential risks and outline contingency plans for smooth operations and finances.
- Having a well-crafted business plan is vital for securing funds from investors or banks, as it demonstrates your business strategies, financial viability, marketing efforts, and a clear path for growth.
Now, without further ado; let’s explore the primary components of a good business plan.
What to Include in Your Brewery Business Plan?
Once you start preparing a brewery business plan, you should consider including these 9 key sections in your plan:
1. Executive Summary
Your executive summary is the first section of the business plan, providing a quick introduction to the concept and goals of your brewery.
The main purpose of writing an executive summary is to attract potential investors or partners and convince them to keep reading. So, ensure that you make it simple, crisp, and engaging.
Generally, it is written at the end when your entire doc is ready. This is so because it summarizes the most important elements of your brewery business plan.
You may include details about your business idea, the type of brewing company you own, vision-mission statement, target customers, USPs, market opportunity, branding & marketing approach, and financial highlights.
2. Business Overview
As the executive summary would include a brief company overview, the business overview section is your chance to provide an in-depth knowledge of your brewery.
To plan this section, you may consider answering some of the following questions:
- What’s the legal and trade name of your brewery?
- Where is your brewery located? And why have you chosen that area?
- What is the legal structure and size of your brewery?(e.g., LLC, corporation)
- Who are the company owners?
- When and why did you start the brewery business?
- What kind of brewery do you want to open—microbrewery? A brewpub? A taproom brewery? Or a contract brewing company?
Furthermore, you may include details like what milestones have you achieved and what major sales goals you want to reach.
3. Industry & Market Analysis
The industry and market analysis section of business plan provides valuable insights into the brewery industry and the specific market niche in which your brewery intends to operate.
Remember, your market analysis would really impress potential investors or partners if you provide research-backed information in it. For instance,
“The market size of the US brewery industry stood at $34.3 billion and increased 2.8% in 2023, as well as the retail sales of craft beer reaching $28.4 billion .”
In addition to that, you may give readers a thorough understanding of your target market demographics, customer needs, key competitors(both direct & indirect), industry trends, market size & growth potential, and regulatory environment.
4. Sample Menu
Your brewery needs a great product if you want to make it thrive. So, you have to carefully draft this section, as planned menus are crucial for all breweries’ business plans.
You may start by outlining what your brewery will offer, including all the types of brews you plan to produce and serve and the varieties of foods(if any).
For example, there are multiple types of beers to select from(such as sour beers, lagers, stouts, and IPAs), so determine your niche. Also, ensure that your sample menu fits your business concept, like any brewery theme or even specific beer pairings.
If your brewery provides other extra services, including tours or merchandise options, describe them as well.
5. Sales and Marketing Strategy
The sales and marketing plan provides the strategies you’ve planned to reach new customers and keep them coming back to your brewery.
It includes USPs, social media marketing, strong web presence, email marketing, brand positioning, word-of-mouth promotions, loyalty programs, collaborations & networking with other businesses, and many more.
For easy understanding, you may refer to the following marketing strategies used to promote “Hop Haven Brewing Co.”:
Marketing strategies for Hop Haven Brewing Co.
Online marketing
Hop Haven Brewing Co. will launch a professional website that offers easy navigation, showcases your beers, and includes engaging video/blog content. This establishes Hop Haven as a thought leader.
Pre-launching events
Hop Haven Brewing Co. will organize pre-opening events for potential customers, local merchants, and press contacts. This will create buzz and awareness for Hop Haven Brewing Co. in the area.
Social media marketing
Hop Haven actively uses YouTube and social media platforms to share interesting content, including behind-the-scenes brewing processes, live events, and customer experiences.
Local promotions
Hop Haven Brewing invests in advertising via local magazines, newspapers, or radio stations to grow brand recognition in our area.
Partnerships
Hop Haven Brewing Co. tries to partner with local businesses and artisans to produce unique brews or co-host events. Doing so will improve community engagement and increase the customer base.
The employees of Hop Haven Brewing Co. will initially offer free beer samples to encourage customers to taste the quality and variety of the beer.
Loyalty programs
Hop Haven presents a membership club, seasonal discounts, or loyalty cards to provide perks, exclusive beers, or discounts to repeat customers.
This section will allow potential investors and partners to understand how you’ll market or promote your brewery once it opens.
6. Operations Plan
The operations plan involves information about the day-to-day business operations required to run your brewery smoothly.
This means you will need to summarize everything from the beer production process to the inventory management and sales tracking. For instance, you may consider asking yourself these questions:
- How many employees do I need to hire?
- What type of equipment/technology is needed for brewery operations?
- How can I manage the brewery’s supply chain, from sourcing raw materials to final product delivery?
- Who will be accountable for the administrative duties?
Answering such questions will help you convey your operational aspects with great precision.
7. Management Team
A strong management team is a key part of a brewery business plan since it outlines the people behind your business. So, you will introduce your management team in this section.
You may highlight the organizational structure, describe the roles and responsibilities of key team members, and provide their resume-styled summary, along with their expertise, qualifications, and the value they bring to your brewery.
Besides, you may give brief bios of your external advisors, consultants, or board members(if applicable).
8. Financial Plan
Preparing a financial plan can be quite stressful but it is the most essential element of your business plan. It contains detailed financial projections and funding requirements, showing investors the financial viability of your brewery.
You may provide monthly financial projections for the first year at least while giving annual projections for the next few (3-5) years.
Following are a few critical statements and reports that you should consider adding to this section:
- Brewery startup costs
- Sales & revenue forecasts
- Profit and loss statement
- Cash flow estimates
- Balance sheet
- Break-even analysis
Moreover, try to explain how you plan to get funding (e.g. SBA loans, private investors, crowdfunding, or asking family or friends), as well as the clear use of those funds.
In short, make a realistic financial plan that investors appreciate and get a better idea of the financial aspects of starting and running a brewery.
9. Appendix
In the appendix, you may attach any supplementary documents or reports that don’t fit into specific sections but support your plan.
It includes location leases, zoning compliance documents, licenses & permits, market research data, resumes of your executive team, supplier contracts, etc.
Download a Sample Brewery Business Plan
Need help writing your brewery business plan? Well, here you can download our free brewery business plan pdf to get started.
This advanced business plan template has been crafted specifically for your brewery business. With step-by-step instructions and examples, it helps you draft your own plan.
Simply import data into your editor and start writing your brewery business plan.
Start Preparing Your Business Plan with AI
Creating a comprehensive business plan from scratch can be a daunting and intimidating task. But not to worry; Upmetrics could be a great help here!
Upmetrics is a modern AI business plan generator that supports small business owners and new-age entrepreneurs to build investment-ready business plans in a snap.
It will streamline the business planning process with the help of step-by-step guides, a business plan builder, 400+ sample business plans , and financial forecasting software.
So, why are you waiting? Start preparing your plan!
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Frequently Asked Questions
Do i need a business plan to open a brewery.
Yes. You will need to have a solid business plan while opening a brewery. It helps you detail your business idea, vision, operational plans, marketing strategies, and financial forecasts. So, it’s important for securing funding, handling brewery operations, and making strategic decisions.
How much does it cost to write a brewery business plan?
The cost of writing a brewery business plan can vary based on the level of detail and complexities of your plan. If you hire any experienced business plan writer , it may typically cost you a few hundred to several thousand dollars, whereas tools like Upmetrics cost you only $7/month.
What financial projections should I include in my brewery business plan?
While financial forecasting involves multiple financial statements and projections like sales forecasts and break-even analysis, the balance sheet, cash flow statement, and income statement are considered to be three major components of a financial plan.
Are there any software tools available to help me create my brewery business plan?
Yes, there are robust tools available to help you create a brewery business plan. You may consider using our business plan software —Upmetrics. It offers online resources, business plan guides, and financial forecasting features to create a comprehensive business plan for your brewery.
About the Author
Upmetrics Team
Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more
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How To Write A Comprehensive Brewery Business Plan
Starting a successful brewery is a big dream for many. To achieve this dream, you need to start with a solid brewery business plan.
Your business plan includes everything you need to organize before opening your business, from your business goals and operations to your brewery name, beer menu, and everything in-between. Getting this plan right is one of the most important steps toward your business's success.
In this guide, we’ll outline everything craft breweries should include in their business plan template.
What is a Business Plan?
A business plan is a document that lays out your entire strategy for starting a brewery. This includes business objectives, operations, and how your brewery will be profitable and viable. A business plan is a roadmap you follow when setting up your new venture.
Your business plan must include details of how you will set up your brewery and what you aim to achieve. Doing this helps you prepare for the new challenge and know what to expect throughout the entrepreneurship journey.
Why Do You Need a Brewery Business Plan?
Your business plan ensures you open up your brewery as smoothly and efficiently as possible. It helps you avoid surprises along the way, getting your establishment off the ground by following all the proper steps. A well-thought-out plan will boost the chances of your brewery’s success in a big way.
A brewery business plan is also necessary if you need to secure funding. Nobody will put money behind a new venture without a clear plan on how it will operate and what kind of revenue and profits are projected.
What to Include in Your Brewery Business Plan
There’s a lot to consider when you write a brewery business plan. To help you out, here are some of the essential features to include in this document:
Business Description Section
Start with an executive summary of your business. This should be a description with the basic outline of what your brewery business will look like, what it will do, and why it exists. The executive summary should include details like your brewery name, its purpose for being, and why you want to start it.
Also include the type of brewery you plan to start and the proposed size. Do you imagine a lively beer hall, a country brewery, a trendy gastropub? A clear concept and vision to work toward are essential. You should also include goals that you want to achieve.
The craft brewery industry is highly competitive, so it’s vital that your brewery stands out. Make sure to include your mission statement, what will make your brewery unique, and why this is important.
Business Operations Section
A vital part of the planning process is outlining exactly how your business will operate. When creating a plan for your craft brewery, try to detail exactly how the establishment will work - from sourcing ingredients to selling beer to customers.
Will you have a restaurant in your brewery? Will you sell beer to liquor stores, or will it only be available to consume on-site? If you do sell beer off premises, will you have sales reps? How far around the country do you plan to stock your beer? These are all important things to consider in your business model.
When you write a brewery business plan, include every detail of your operations. Think about transporting your beer, whether your brews will change over seasons, whether you will bottle or can your brews, and so on.
Management and Team Overview
A key part of your brewery business plan is outlining the people behind your business. You will need to have a plan for staffing and management requirements. Who will be in charge of which jobs? Having a clear management and staffing team structure will help you understand your brewery operations realistically.
You will certainly need a head brewer and a general manager. Depending on your business model, you might also need a chef/kitchen manager, a sales manager, and various support staff roles, such as assistant brewers, cooks, bartenders, and wait staff.
As a brewery owner, outline why you are the right fit for the job. Outline your brewery-related qualifications, experience, and interests. Repeat this for any other management positions that you have secured.
Menu Overview
If your brewery is going to be a success, it will need a great product. Carefully planned menus are vital parts of all breweries' business plans. Ideally, you should have already perfected your recipes and have some sample products and home brews available if you need to convince investors.
As a brewery, start with your beverage menu. Outline precisely what brews you will produce.
Will you have a flagship beer that your brewery is known for? Will you offer seasonal or limited-edition beers?
Make sure that the style of beers you brew makes sense to your location and target market. Having tried-and-tested recipes for your beers is essential. You will also need to know exactly what equipment you require for brewing all of your beers.
Then you will probably also need a food or snack menu. Some breweries are known for their food, while others serve light snacks to compliment their beers. Figure out a sample menu for your brewery and match it to your brewery concept. Will you do beer pairings? Will your brewery have a theme (like German or all-American BBQ)?
Again, testing this out and getting feedback on it is crucial. You will also need to make sure you understand the exact kitchen and equipment requirements for your menu.
You might be an amazing brewer with a killer business idea, but choosing the wrong location could be the downfall of your brewery. Location plays a massive role in the success of any brewery so try to be as specific about your location as possible in your microbrewery business plan. Take the time to carefully research different location options.
Ideally, you should open your brewery in an area with minimal competition and high demand. When choosing your business address, look for features like foot traffic, visibility, parking, and a great view. Some breweries are opened as “destination” breweries and could be in a remote or unique area that people want to travel to. Others do well in busy areas full of hungry and thirsty customers, like tourist destinations or shopping malls.
Of course, your brewery space will also need to be large enough to brew beer and seat customers or do tastings. However, some breweries have separate premises for brewing and serving the public.
Market Research
No business plan summary is complete without in-depth local market research. You need to understand your market and target customers. Use this to provide evidence of why your brewery idea will be viable. This should include an analysis of market trends, competitors, and customer segments.
Do some detailed competitive analysis of the area you plan to open your brewery. Understand who your main competitors will be and how your business will be different from them.
You will also need to understand the demand for a brewery. Asking locals and even sending out questionnaires can help here. You could also try to do a market or a “pop-up” brewery event in the area, partnering with another local business. This will help you understand demand and how people react to your craft beers.
Another central bit of market research is to create a detailed target customer persona. This should include your ideal clients' demographics, interests, income, age, and other relevant details.
Your competitive analysis section should also cover the general market price of craft beer and food in your area. When you conduct research, try to visit as many direct competitors as possible to understand how they operate, what they do well, and what you can do better.
A thorough market analysis will give you a good idea of the scale your brewery should operate at, who your potential customers are, and what new markets you could tap into.
Business Structure and Licenses
Outlining how your business will be structured is an integral part of any business plan. This needs to include who the business owners will be.
Some business structures include a sole proprietorship, a partnership, a limited liability company (LLC), and a corporation (C Corp). Choose the structure of your business based on how many people will be involved, how big the company will be, and how it will operate. The proper legal structure can have some significant personal and tax benefits.
When starting a brewery, include a plan for all of the licenses and legalities involved in the business. You will need permits for trading, selling food, and for brewing and selling beer. The specific requirements will differ between states. Contact your local government as early as you can to understand the specific legal requirements for your brewery.
Make sure to include the application process for these licenses in your timeline. You will also need to ensure these licenses, including a brewery license, are possible based on your business location.
Equipment and Setup
There’s a lot that goes into a brewery. Part of your brewery business plan is figuring out all the necessary equipment. This should be related to your menu, your brewery size, location, and how you plan to operate.
When planning your brewing equipment, consider the volume of beer you need to brew and have a clear plan for how you will be able to sell this. Your brewing capacity needs to be just right in terms of your business demand. If your capacity is too large, it will result in wastage. If it is too small, your brewing process won’t be able to hit demand, and you will miss out on revenue.
Beyond your brewing equipment, you might need kitchen equipment, a bar, tables and chairs, booths, glasses, a POS system , a coffee machine… the list goes on. Try to list every piece of equipment required for starting your business - from your mash tun right down to your coasters. All of these items need to be planned and accounted for. Getting this accurate is necessary for understanding what our realistic startup costs will be.
This might be quite a stressful part of our business plan, but it’s one of the most important things for all startups and small businesses to get right. Your brewery business plan must include accurate startup costs, predicted income statements, and financial projections. Quite simply, you will need to establish:
- How much capital is required to get the brewery started
- How much it will cost to operate the brewery
- How much revenue you can realistically expect to make each month (and year) after starting the business
- How much profit you will be able to generate
It seems simple enough, but a lot goes into this. You will need a clear profit and loss statement, realistic cash flow statements, and a pricing strategy that will work.
You also need to consider your cash reserves (you might not make a profit for a few months) and your stock and inventory. There is also packaging, software tools (accounting software, POS software, restaurant management software , etc.), payroll, and production costs. Let’s not forget to consider loan repayments, insurance, and other ongoing expenses.
If you pitch to potential investors or want to secure bank loans, you will need your financial plan to be absolutely watertight. This is what determines how viable your business idea is.
How will you attract customers once your business is open? You will need a clear marketing strategy. This could include a strong web presence , social media marketing, special promotions, eye-catching signage, a well-placed chalkboard, collaborations with other businesses, and more.
When establishing your marketing plan, keep your target customers in mind. The channels and strategies that your marketing plan includes will need to align with their interests.
Following these steps to draw up your business plan template should cover all the necessary details. Just remember that your brewery business plan is a working document. Dedicate enough time to creating your plan, and constantly update and improve it as you learn more about the market and industry.
Plan to host private events at your brewery? Get in touch with Perfect Venue to learn more about our event management software designed for breweries, independent restaurants, and hospitality groups.
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Write your business plan with help from industry experts
Use this free template to easily create a great business plan that organizes your vision and helps you start, grow, or raise funding for your brewery.
What's inside? Exclusive insights into how to:
- Build a strong brewery business plan
- Write an executive summary
- Establish a brewery operations plan
- Conduct market and financial analyses
- Create a brewery marketing strategy
Use the Brewery Business Plan Template to build a concrete plan for success
In most cases, opening a new brewery, expanding to a new location, or giving your existing concept an overhaul requires outside capital from investors. But before anyone invests in your dream, they need to see that you’ve got a concrete plan for success. The business plan provides them with a complete description of your strategy. Download the free Brewery Business Plan Template to organize your vision and ensure that nothing is overlooked. For a guide to writing a business plan specifically for a brewery, learn from this resource: How to Write a Brewery Business Plan .
Brewery Business Plan Template & Example [Updated 2024]
Brewery Business Plan Template
If you want to start a brewery business or expand your existing brewery business, you need a business plan.
You can download our brewery business plan template (including a full, customizable financial model) to your computer here.
The following sample brewery business plan template gives you the key elements to include in a successful brewery business plan. It can be used to create a business plan for a craft brewery, a microbrewery business, or another brewery business concept.
Sample Business Plan Template for a Brewery
Below is a brewery business plan example with each of the key sections to help you write a brewery business plan for your own company.
I. Executive Summary
Business overview.
Based in [Location], [Company Name] brewery makes high quality, local beer that not only enriches celebrations and traditions, but also brings a touch of the extraordinary into daily life. It combines time-honored brewing with new methods and unique recipes to create a range of classic and craft beer everyone can enjoy. [Company Name] beer is the flavor of [Location].
Customer satisfaction is [Company Name]’s highest priority, with beer for every palate. [Company Name] has ambitions to become a household name; a go-to for all occasions.
Products Served
The following are the types of beer that [Company Name] produces:
- Belgian Witbier
Customer Focus
[Company Name] will primarily serve the residents who live within the city. The demographics of these target customers are as follows:
- 302,145 residents
- 79,567 workers
- Average income of $51,031
- 40% married
- 38% in Mgt./Professional occupations
- Median age: 39 years
Management Team
[Founder’s Name]’s expertise and experience is the [Company Name]’s most valuable asset. After graduating from the University of ABC where he earned a degree in Business, [Founder’s Name] worked at Samuel Adams. In his long experience in the industry, he acquired an in-depth knowledge of the ins and outs of running a brewery before he started [Company name].
[Company Name] will also employ an experienced assistant to help with production. He will also be trained by [Founder’s Name] so he can take over the brewery business when [Founder’s Name] is away.
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
- There is currently no brewery in the community we are entering. In addition, we have surveyed the local population and received extremely positive feedback saying that they explicitly want to purchase our beer when launched.
- The management team has a track record of success in the craft brewery industry.
- The brewery business has proven to be a successful business in the United States.
Financial Highlights
[Company Name] is seeking a total funding of $400,000 to launch its brewery. The capital will be used for funding capital expenditures, manpower costs, marketing expenses and working capital.
Specifically, these funds will be used as follows:
- Brewery design/build: $200,000
- Working capital: $200,000 to pay for Marketing, salaries, and equipment costs until [Company Name] reaches break-even
II. Company Overview
Who is [company name].
[Company Name] is a [Location]-based brewery that produces high quality, local beer that not only enriches celebrations and traditions, but also brings a touch of the extraordinary into daily life. It combines time-honored brewing with new methods and unique recipes to create a range of classic and craft beer everyone can enjoy. [Company Name] beer is the flavor of [Location].
[Company Name]’s History
Born in Portland, the beer capital of the world, [Founder’s Name] grew up brewing beer. In keeping with family tradition, he was trained in the art and science of handcrafting beer using family recipes and techniques. Upon relocating to [Location], [Founder’s Name] was dismayed to discover a lack of local craft brews. It didn’t take long for him to seize the opportunity to open his own brewery, [Company Name].
Since incorporation, the Company has achieved the following milestones:
- Acquired land
- Developed the company’s name, logo and website located at [website]
- Determined building, equipment and fixture requirements
- Began recruiting key employees
[Company Name]’s Products/Services
Iii. industry analysis.
Over the past five years, the brewwery industry has experienced significant change, with the rise of craft breweries, wineries and distilleries. Smaller, regional operators experienced substantial growth, provoking a slew of new operators to enter the industry.
The industry is also seeing heightened competition. Over the past decade, the industry experienced a substantial rise in industry players, mostly craft breweries. As these breweries continue to expand over the next five years, competition is expected to increase, and historically dominant players will likely struggle to maintain their control of industry revenue. As a result, the development of brand names over the next five years will be critical to major players’ success, both in competition among brewers and against substitute products, such as wine and spirits. Such developments will benefit larger players that run more cost-effective promotional campaigns. At the same time, younger beer drinkers, aged 21 to 30, are expected to increasingly experiment with and seek out unusual brews, which will provide opportunities for craft breweries and microbreweries to expand their market reach.
As competition escalates between breweries and the craft beer boom continues to normalize, the number of new entrants is projected to slow. Still, the number of industry enterprises is expected to increase at an annualized rate of 9.4%.
Over the next five years, the industry is forecast to have steady growth. Operators are expected to experience increases in demand from their largest markets, particularly on-premise channels, such as restaurants, bars and event spaces. Moreover, smaller operators that rely on in-person transactions through in-house bars and tasting rooms are expected to see demand, as many people seek social drinking experiences.
IV. Customer Analysis
Demographic profile of target market.
[Company Name] will serve the restaurants, hotels, grocery stores, and households within [location] and the immediately surrounding areas.
The precise demographics of the town in which our location resides is as follows:
Wilmette | Winnetka | |
---|---|---|
Total Population | 26,097 | 10,725 |
Square Miles | 6.89 | 3.96 |
Population Density | 3,789.20 | 2,710.80 |
Population Male | 48.04% | 48.84% |
Population Female | 51.96% | 51.16% |
Target Population by Age Group | ||
Age 18-24 | 3.68% | 3.52% |
Age 25-34 | 5.22% | 4.50% |
Age 35-44 | 13.80% | 13.91% |
Age 45-54 | 18.09% | 18.22% |
Target Population by Income | ||
Income $50,000 to $74,999 | 11.16% | 6.00% |
Income $75,000 to $99,999 | 10.91% | 4.41% |
Income $100,000 to $124,999 | 9.07% | 6.40% |
Income $125,000 to $149,999 | 9.95% | 8.02% |
Income $150,000 to $199,999 | 12.20% | 11.11% |
Income $200,000 and Over | 32.48% | 54.99% |
Customer Segmentation
We will primarily target the following three customer segments:
- Local residents: Approximately 80,000 people live in the area, 80% of which are over the age of 21.
- Wholesale accounts: We will target restaurants, hotels and grocery stores to set-up wholesale accounts. These establishments will then sell our beer downstream to end consumers.
- Businesses: Local corporations hold parties and celebrations for special events and milestones. Although a small segment, this is a good place to increase the company’s brand awareness and market reach.
V. Competitive Analysis
Direct & indirect competitors.
The Gold Liquid Brewing Co. Established in 2017, The Gold Liquid Brewing Co is a family-owned and -operated craft microbrewery and gastropub. The operation consists of an 8 bbl brew house, 2 bbl pilot system, a small batch PicoBrew system, and a 3 kg coffee roaster.
In its taproom, Gold Liquid serves 34 in house brews on tap, as well as additional taps for guest ciders and 6 wines on draft. Its gastropub food menu features high-quality food designed to complement Good Liquid brews. Guests may eat in the bright dining room, or in the large, dog-friendly outdoor beer garden, which features picnic tables and outdoor games.
Midwestern Brewing Co. Established in 1998, Midwestern Brewing Co. is a brewpub offering its beers, both bottled and on tap, and serving lunch and dinner from locally-sourced ingredients whenever possible. Midwestern operates seven locations in Indiana, though not all serve food. The brewery offers complimentary tastings and monthly guest brewmasters.
Better Brewing Co. Established in 2018, Better Brewing Co. is a family-friendly, small batch brewery with a full kitchen on site serving gourmet style pub fare. It typically offers a weekly list of entertainment, music and food and drink specials. Guests may eat in the dining room, or in the dog-friendly beer garden.
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. These advantages include:
- Client-oriented service: [Company Name] will have a full-time sales manager to keep in contact with our wholesale customers.
- Management: [Founder’s Name] has been extremely successful working in the industry and will be able to use his experience to create the best tasting beers. His unique qualifications will serve customers in a much more sophisticated manner than [Company Name’s] competitors.
- Transparency: To continue to assure customers of the quality of [Company Name]’s products, customers are welcome to tour the brewery for a beer tasting and brewery experience.
VI. Marketing Plan
The [company name] brand.
The [Company Name] brand will focus on the Company’s unique value proposition:
- Offers the finest beer at a competitive price
- Has a convenient location in the heart of the city
- Provides excellent customer service
Promotions Strategy
[Company Name] expects its target market to be individuals working and/or living within [state]. [The Company’s] promotions strategy to reach these individuals includes:
Sampling [Company Name] employees will initially give free beer samples to enable customers to taste the quality and variety of our beer and learn about us.
Ongoing Customer Communications [Company Name] will maintain a website and publish a monthly email newsletter to tell customers about new events, products, and more.
Pre-Opening Events Before opening the brewery, [Company Name] will organize pre-opening events designed for prospective customers, local merchants and press contacts. These events will create buzz and awareness for [Company Name] in the area.
Online Marketing [Company name] will invest resources in two forms of geographically-focused internet promotion—organic search engine optimization and pay-per-click advertising. The Company will develop its website in such a manner as to direct as much traffic from search engines as possible. Additionally, it will use highly-focused, specific keywords to draw traffic to its website, where potential clients will find a content-rich site that presents [Company name] as the trustworthy, well-qualified brewery that it is.
VII. Operations Plan
Functional roles.
In order to execute on [Company Name]’s business model, the Company’s employees divide the following roles:
Operation Functions
- Production/brewing
- Deliveries and business operations
- Sales and Marketing
Administrative Functions
- General & administrative functions including marketing, bookkeeping, etc.
- Hiring and training staff
[Company name]’s long term goal is to become the dominant producer of quality beer in the [Location] area. We seek to be the standard by which other brewers are judged.
Date | Milestone |
---|---|
[Date 1] | Finalize lease agreement |
[Date 2] | Design and build out [Company Name] |
[Date 3] | Hire and train initial staff |
[Date 4] | Kickoff of promotional campaign |
[Date 5] | Launch [Company Name] |
[Date 6] | Reach break-even |
VIII. Management Team
Management team members.
[Founder’s Name]’s expertise and experience is [Company Name]’s most valuable asset. After graduating from the University of ABC where he earned a degree in Business, [Founder’s Name] worked for a major national brewer. In his long experience in the industry, he acquired an in-depth knowledge of the ins and outs of running a brewery before he started [Company name].
[Company Name] will also employ an experienced assistant to help with production. He will also be trained by [Founder’s Name] so he can take over the business when [Founder’s Name] is away.
Hiring Plan
[Founder’s Name] will serve as [Company Name]’s manager. In order to launch the brewery, we need to hire the following personnel:
- Brewery workers: 5 full-time to start
- Assistant Manager: 1 full-time to handle the day-to-day operations
- Delivery personnel: 1 full-time
IX. Financial Plan
Revenue and cost drivers.
[Company Name]’s revenues will come primarily from the sales of beverages to its customers.
The major costs for the company are packaging costs, salaries and supplies. In the initial years, the company’s marketing spend will be high, as it establishes itself in the market.
Capital Requirements and Use of Funds
- Store design/build: $200,000
Key Assumptions
Number of customers per day | Number of wholesale contracts per year | |||
---|---|---|---|---|
FY 1 | 45 | FY 1 | 5 | |
FY 2 | 55 | FY 2 | 10 | |
FY 3 | 65 | FY 3 | 15 | |
FY 4 | 75 | FY 4 | 20 | |
FY 5 | 85 | FY 5 | 25 | |
Average order price | $28.00 | Average order | $250 | |
Annual Lease ( per location) | $60,000 |
5 Year Annual Income Statement
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
---|---|---|---|---|---|---|
Revenues | ||||||
Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
Expenses & Costs | ||||||
Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
PRETAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
---|---|---|---|---|---|---|
ASSETS | ||||||
Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
LIABILITIES & EQUITY | ||||||
Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
Share Capital | $0 | $0 | $0 | $0 | $0 | |
Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
---|---|---|---|---|---|
CASH FLOW FROM OPERATIONS | |||||
Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
CASH FLOW FROM INVESTMENTS | |||||
Investment | ($246,450) | $0 | $0 | $0 | $0 |
Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
CASH FLOW FROM FINANCING | |||||
Cash from equity | $0 | $0 | $0 | $0 | $0 |
Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
SUMMARY | |||||
Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
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Brewery Business Plan Template
Take the first step towards building a successful brewery with our comprehensive and user-friendly template designed for aspiring entrepreneurs. From market analysis to financial projections, our template covers all the essential components for creating a solid brewery business plan. Download it now and start your journey towards brewing excellence!
Download the template today!
Features of the brewery business plan template.
Our brewery business plan template includes key features to help you build a robust business plan:
- Market Analysis : Conduct a thorough assessment of the craft beer market, identify target demographics, and analyze consumer preferences. Our template provides a structured approach to conducting market analysis specific to the brewery industry.
- Business Model: Define your brewery's unique value proposition, choose the right brewing techniques, and identify your target market. Our template offers insights and guidance to help you select the most suitable business model for your brewery.
- Financial Projections : Estimate your revenue streams, costs, and profitability with our comprehensive financial projections section. This helps you make informed decisions and set realistic goals for your brewery's financial success.
- Marketing Strategy: Develop a marketing plan that effectively promotes your brewery and attracts loyal customers. Our template assists you in creating a strategic marketing strategy, including brand positioning, advertising campaigns, and customer engagement initiatives.
Benefits of Using Our Template
By utilizing our Brewery Business Plan Template, you can enjoy several benefits:
- Time and Effort Saving: Save valuable time and effort by leveraging a pre-designed template that streamlines the planning process. Focus on refining your brewery concept and business strategy instead of starting from scratch.
- Clarity and Direction : Our template provides a clear roadmap, ensuring you address all critical aspects of your brewery business plan. Stay focused on your goals and avoid overlooking essential elements of your brewery's success.
- Increased Success Potential: A well-structured and comprehensive business plan increases your chances of success in the competitive brewery industry. Our template equips you with the necessary tools to present your brewery concept professionally and attract potential investors or lenders.
Brewery Business Plan Frequently Asked Questions
Q: why do i need a brewery business plan.
A: A brewery business plan is crucial as it helps you analyze the market, define your business goals, and develop a strategic approach to succeed in the industry. It serves as a roadmap for your brewery, guiding decision-making and attracting potential investors or lenders.
Q: What are the key components of a brewery business plan?
A: A brewery business plan should include a market analysis, business model, financial projections, marketing strategy, and operations plan. These components enable you to understand your target market, assess profitability, plan your finances, and create effective strategies for promoting and growing your brewery.
Q: How can a brewery business plan help secure funding?
A: A well-crafted brewery business plan demonstrates to investors or lenders that you have a comprehensive understanding of the industry, a viable business model, and a strategy for profitability. Financial projections play a crucial role in showcasing the potential return on investment. Sharing your business plan with potential funders increases your chances of securing the necessary financing for your brewery.
We Know a Good Business Plan When we See One
Collectively, our team has reviewed thousands of business plans and has nearly 20 years of experience making SBA loans. We've also helped more than 50,000 businesses create financial projections across many industries and geographies.
Adam served as Executive Director for a SBA microlender in Indiana for over 10 years helping businesses and reviewing thousands of business plans.
Grace has built hundreds of custom financial models for businesses as well as our projection templates which are used by thousands of businesses every year.
Kyle served as an SBA loan officer for 7 years working directly with startups and business owners to review their business plans, projections, and prepare their loan package.
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How to Start a Brewery: Growing Your Own Craft Beer Business
Anthony St. Clair
28 min. read
Updated May 10, 2024
Free Download: Sample Brewery Business Plan Template
In 2018, there were more than 7,450 breweries in the U.S.—well over than the historic high of 4,131 breweries in 1873, according to the Brewers Association . In such a crowded market, making good beer and opening the doors isn’t enough anymore.
But, the good news is, if all those people could start a brewery, then you can too—as long as you know what you’re getting into and have a solid business plan for your brewery.
From running coolant pipes to navigating regulations, starting a brewery is a messy, convoluted job full of twists, turns, delays, setbacks, and surprises—but it’s also one heck of a ride.
In this guide to starting a brewery, we’re going to talk with brewers who’ve been-there-done-that, and we’ll get insights from experts in supporting industries such as insurance and finance, as well as discuss regulatory issues.
While it may be your dream to brew great beer, this guide will help introduce you to the business side of craft beer.
This guide will cover the seven essential steps to starting a brewery:
- Planning a brewery
- Finding a brewery location
- Choosing brewery equipment
- Building relationships with vendors and the local community
- Funding a brewery
- Obtaining insurance before opening a brewery
- Keeping regulations in mind when starting a brewery
- Step 1: Planning a brewery
No matter its size or age, every brewery was once a startup.
ColdFire Brewing , a 10-barrel brewery, came online in December 2015, founded by Dan Hughes and his brother Stephen. They’re constantly hard at work on business development and recipe formulation, navigating bureaucracy, and enduring the inevitable delays that come with brewery construction, equipment delivery, and regulatory approval.
“We began to get serious about starting our brewery several years ago, and we were still working out details as we prepared to open our doors,” says Dan.
The Hughes brothers developed a solid business plan and built a core team to bring their vision to reality. Backed by a team of private local investors , ColdFire gained access to additional capital through an SBA loan .
While Dan heads up operations, his brother Stephen is head brewer, and their team also includes directors of finance and brand, respectively.
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Watch your finances
Having a key financial person in place has helped them get better at monitoring cash flow and their overall financial status and needs, says Dan. Most small businesses and startups that are looking to grow— hire a new employee , or buy a new piece of equipment, or open a new location —need to think hard about cash flow, or making sure they have enough money in the bank to meet payroll and other financial obligations.
Review your business plan regularly
Committing to regularly reviewing your business plan and financials is a good step toward making more informed, smarter spending decisions, that can have a big impact on a new business’s long term viability. Forcasting, and then comparing your actual results against your projections on a regular basis, will help you spot any issues before it’s too late to do something.
If you don’t have a business plan yet, don’t skip it
If you don’t have a business plan for your brewery just yet, don’t skip it. Planning is proven to help you grow 30 percent faster . Plus, if you’re going to seek a loan or investment, your funders will expect you to have one. If you’re not sure what you should include in your plan, check out brewery sample business plans on Bplans. You can download them for free to help you get started. Here are two of our most popular example plans:
Sedibeng Breweries
About the plan: Sedibeng Breweries is a medium-scale brewery located in the growing industrial center of Selebi Phikwe, Botswana. Initial plans are to produce three main lines of beer. These products will be distributed to remote yet extremely viable areas, where the market is appreciative of readily-available, good-quality brew.
Martin Cove Brewing Company
About the plan: Located in Medford, Oregon, Martin Cove Brewing Company has been a successful microbrewery for the past three years. This year, Martin Cove Brewing Company will gross $520,000 in sales. With this money, they plan to expand its distribution to selected metro areas within the state of Oregon. In addition, they will introduce a new product, a traditional German Marzen-style lager.
Dan Hughes’ advice on starting a brewery
1. the most important detail is defining a clear vision.
“We know what kind of brewery we want to create and we have tried to let that vision drive all of our decisions.”
2. There has to be a commitment to the craft
“We find this opportunity to open a brewery a privilege, and we certainly aren’t doing this for the money. In fact, we’re taking a significant pay cut to have the privilege to open a brewery. We do so with a vision toward creating a quality brewery that honors the traditions of those that have gone before us.”
3. Every relationship is important
“When you build a few good relationships, suddenly they open the door for more relationships, and that pattern has only continued to hold true.
“Our bank had heard of us before we ever met them, and our landlord had been approached by other breweries in the past. Fortunately, we have always found it important to treat people well and listen to good people who have good advice. That has ended up serving us well.”
4. Prepare for license and regulation challenges
“They take time—so much time—to file, follow through, and gain approval. Having been planning this for so long, we kind of knew what we were getting into and have thus far been able to get through most of these challenges to-date. But they all take so much time.
“With that said, the federal license, or TTB [Alcohol and Tobacco Tax and Trade Bureau] permit, was the longest and most arduous. The more complex the operating structure of a business , the more information and time required.”
- Step 2: Finding a brewery location
From land use to public taste, the location where you plan on opening a brewery is a crucial decision. Generally, brewers want to set up shop in their own backyard.
Here are some questions to consider:
- What are the relevant local and state laws affecting breweries? (And there will be plenty—brewing is one of the most regulated industries in the country.)
- Where in your area will you find land or a building with the right zoning, size, facilities, and access for bringing in raw materials, attracting customers, and/or shipping out finished beer for distribution?
- What local favorites will you need on tap to appeal to the market, and where can you innovate to stand out?
- Will you only brew ales, or will you also make space for lagers, a barrel-aging program, and so on?
- What type of brewery will you be: production brewery or brewpub?
- How wide do you want to grow production and distribution, or do you want to focus on selling over your own bar?
- Do you want to scale to multiple locations?
- What construction will be needed to get the doors open on your first location?
All these questions and more will influence the right space for your brewery. However, the main thing is to start with the right space—and one that will be bigger than what you think you will need, says Jason Jordan of Propel Insurance.
“I cannot tell you how many brewers I have talked to in year two to three in business,” he says, “and they all said their biggest regret was not getting a bigger space that they could grow into.”
However, brewers also need to be willing to take a hard look at where they want to locate and do their homework to make sure they can establish a successful brewery there. Word of mouth is no substitute for market research , says Ben Price, co-founder of Hard Knocks Brewing, a small brewpub in its second year of operation.
“The single biggest mistake I have made was locating my business in a town that could not care less about craft beer,” says Ben. He recommends brewers use data firms such as Insightics to see where and how people spend their money in an area.
“You’re looking for a number of 70 percent or more within five miles of the zip code you desire,” says Ben. “I made the mistake of trusting in word of mouth. You want locally oriented people, people who want a good product, made local.”
- Step 3: Choosing brewery equipment
Your initial system will likely be seven to 15 barrels, but run your own numbers. Figure out how much you’ll need to have in production at a time to be profitable.
What you need to know about buying new
A new system might be subject to delays, especially if demand from other breweries is high, but you’ll be able to design to your needs and specifications, and you’ll have support when issues arise (and they will).
“You’ll probably start with a seven-barrel system, spend anywhere between $130,000-$175,000 new,” says Patrick McCarthy, who works in the financial sector and aids breweries with capital and business planning.
Is it a good idea to buy used brewing equipment?
A used system might be through the door quicker and might save you money up front, but make sure you’ve thoroughly reviewed the system and seller—and remember that when you have problems, you’ll likely be on your own to fix them.
“Used systems are almost as expensive, so you’re really not saving anything, but you might get it sooner than ordering new. Some folks cut corners by ordering equipment made offshore. Many brewers avoid that due to perceived qualitative differences,” says Patrick.
How Ninkasi Brewing grew their brewing capacity
Ninkasi Brewing began in 2006 on a 15-barrel system and produced 1,650 barrels. In 2018, Ninkasi sold 90,000 barrels and was the thirty-fifth largest brewery in the U.S., and the fourth largest in its home state of Oregon, after powerhouse brands such as Deschutes, Rogue, and Full Sail. In April, 2019, the brewery sold its majority stake to a larger organization.
Co-founders Jamie Floyd and Nikos Ridge leased their startup system from a family running a German restaurant out of a former brewpub. While brewing and self-distributing their beer, Floyd and Ridge purchased property where they could relocate and expand operations. They moved into their current location with a 20-bbl brew system, three 60-bbl fermenters, and one 20-bbl fermenter. A year later, they replaced the 20-bbl brew system with a 30-bbl system, followed by another expansion a year and a half later to 50 barrels. Today they use an 80-100-bbl brew system, but the 50-bbl is still online for special brewing projects and research-and-development beers.
“We continually planned for growth and capacity, catching up the entire first seven years of being open,” says Jamie. “In a way, it’s easy to build out in this way, as you always need something, so it becomes more about the funding and the logistics.
“We continually made beer while switching out new systems and adding capacity and infrastructure. One of our greatest strengths was our ability to work around the construction we were doing.”
- Step 4: Building relationships with vendors and the local community
Starting a microbrewery and brewing great beer is not a solo endeavor. It is a constantly coordinated, ongoing set of relationships with customers, government officials, craftspeople, and your internal people.
Find trusted advisors
“The number one piece of advice I give new brewery clients that are in startup stages is to engage your main business vendors early on in the process and find the right people to serve your needs,” says Jason Jordan.
“You need trusted advisors that are proven in the beverage industry and have a decent portfolio of brewery clients. This would be the architect, business lawyer, intellectual property attorney, banker, insurance broker, real estate agent, label maker, hop grower, malt supplier, tank fabricator, and accountant.”
Hire the right team
Relationships and keeping an ear to the ground are key not only to establishing your brewery, but in how and when you grow. Jason Carriere, the owner of Falling Sky Fermentation Supply Shop and co-founder of Falling Sky Brewing , has gone through many twists and turns since Falling Sky opened its first Eugene, Oregon brewpub location in 2012. Since then they’ve opened a second location, a pourhouse that focuses on food production, and a third location, a pub and pizzeria on the University of Oregon campus.
“I’d been running the homebrew shop for a while,” says Jason. “I’d already seen several of my best employees move on to become brewers around town, so I thought I’d look seriously at making that expansion ourselves, keep the team together, make it so homebrewers who worked at the shop could have a way internally to go pro.”
In their first year of production, Falling Sky produced 800 barrels, and they produced 1,300 in 2015—and that’s while getting underway on construction for their third location, moving the homebrew shop, and expanding their current brewhouse.
Know your customers and your financials
Jason believes strongly in “knowing who your customers are and what they want,” balanced with skill and consistent craftsmanship instead of novelty. “I’m not a big believer in recipes, or special combinations of hops no one has thought of,” he explains. “Breweries don’t really win customers with one beer, but they can lose customers with one beer.”
When it comes to growth, Jason advises a thorough understanding of the brewery’s production numbers and financials , balanced with an on-the-ground understanding of daily operations.
That then informs your instincts and intuition. And all this must be tied together with ongoing communications with staff, business partners, vendors, and other key people affecting your business.
“You wouldn’t want to expand if your brewery is at 60 percent capacity and you have empty tanks sitting around,” Jason says. “You also have to have your pulse in the community and the industry to know whether or not you’re saturating certain things, or if you hear about people wanting your beer but not getting it. But it’s all about how we’re going to expand. Just because someone in a market wants your beer, doesn’t mean it’s part of your strategy.”
Be open to opportunities
You also have to be aware of opportunities that arise, though, even if it’s unexpected—and that brings intuition, opportunity, and relationships back in play.
“We had no five-year plan to open a third restaurant, but when we got approached by the University of Oregon, we listened,” says Jason. “It was one of those things where we didn’t really want to expand, but it was far enough in the future that we could plan it through without a rush. Our second location was more rushed.
We were busting at the seams at the brewpub, especially with the kitchen, so the deli expansion was more to let the pub do more of what it needed to do again. The second location had a bigger kitchen, cold storage, etc., to handle making fries and ketchup. It was a combination of good opportunity and vision.”
But that doesn’t mean it was easy. “It was scary, I’m not gonna lie,” says Jason. “When we first did the deli, it looked like a very bad idea for a few months. But it turned around.”
Don’t second guess—trust your team
Jason and his team are not prone to regrets or second-guessing. Not that everything has always been easy or rosy, but he credits solid planning and teamwork with being able to make key moves without looking back and wondering.
For Falling Sky, that includes a strategic decision to focus on location sales instead of wider distribution. “I’m not a big second-guesser. When I make a decision, it’s because I feel confident about that decision, and I’ve thought through the consequences and I’ve come to terms with the consequences of choosing one option over another,” says Jason. “I’m confident in our decision to focus on selling beer over our bar versus the shelf wars and SKU wars.”
Step 5: Funding a brewery
Sure, at its heart beer is made from water, malt, yeast, and hops—but there’s an invisible yet crucial fifth ingredient: money.
Form a relationship with the right bank
Raising capital for any business can be a difficult process, and breweries are no exception. In his various roles in the financial industry, Patrick McCarthy has most recently worked as Vice President Commercial Relationship Manager with Bank of the Cascades , which has 35 companies from the craft beverage industry as customers.
Over the years, institutions he’s worked with have directly banked six breweries, a cidery, and a kombucha producer, and Patrick has also advised dozens of startup breweries, from reviewing business plans to helping prospective brewers network with key people.
Patrick sees his role not just as analyzing a business plan or crunching numbers. “You want to be helpful and move the whole business along,” he says. “If a business comes into the bank that’s wonderful, but at the least you’ve made some friends.”
Here is Patrick’s overall advice for startups to make sure they’re not only brewing quality beer, but keeping solid books:
1. Banks are not consistent sources of startup capital
A new brewery is probably not going to a bank for a startup loan (banks usually come into play for capital to fund growth once a brewery is more established). Friends and family are the most common backers, and many startups bootstrap . Some cities, such as Portland, Oregon also have what Patrick calls “beer angels”—private angel investors who understand the beer business and invest in select breweries and cideries.
Loans from the Small Business Administration (SBA) can also be a good avenue, but from “bank to bank the SBA program is used differently,” says Patrick. “Some bankers have a great deal of interest, knowledge, and depth, and can be a champion for a startup brewery. But a lot of banks look at breweries as restaurants and avoid them, or want to see them in business three to four years before they invest.”
2. Be realistic about your business potential
When Patrick looks at a new business, here are some of the things he looks for to inform his sense of the brewery’s chance of success:
- Do they know how to make good beer? Have they made good beer elsewhere? Won awards?
- What is their brewing experience? If someone’s been a garage brewer for five years, that’s different from someone who’s been brewing at an established brewery for the past 15 years.
- Do they have good credit? If not, why not?
- How much skin do they have in the game financially? Will they be able to handle delays? Do they have access to contingency capital?
3. There’s no one model—or one business plan—for breweries
Each brewery will have its own unique business model and business plan . Before opening a brewery, prospective brewers have to figure out the right business model for their plans, location, interests, startup resources, and long-term vision.
Typical models include taphouses, production breweries, and full brewpubs. There’s also a new phenomenon called an “alternating proprietorship,” says Patrick, where brewers brew part-time on someone else’s system.
Within any model, there are things breweries can focus on to stand out and increase revenue. “Some brewers emphasize food in part because the food dollar can translate into more dollars profit for beer,” says Patrick. “Managing your own distribution is ideal. There are overhead tradeoffs, but I’m seeing it more and more.” Exports are becoming another component, he observes, with international markets such as Japan becoming thirstier and thirstier for American craft beer.
“Everyone’s trying to find what they can afford, what works,” he explains. “Merely making good beer isn’t enough anymore. There’s way too much good beer out there to stand out immediately.”
Even if you’re not seeking funding, it’s still a really good idea to create a Lean Business Plan that you can use to help navigate your business as challenges and opportunities arise. The benefit of a Lean Plan is that it’s meant to be reviewed and changed regularly, so you’re not just taking a snapshot of your business and goals once, and then shelving it for five years.
4. Cash must be available to cover costs and offset delays
On an industry-wide basis, for small to medium-sized breweries, the ratio between sales and fixed assets is typically for every $6 of sales, a brewery has $1 of fixed assets.
Estimate brewery startup costs
Start with estimating your startup costs . A new and growing brewery’s biggest costs tend to be the brewing system (e.g., $130,000–$175,000 for a new seven-barrel system) and tenant improvements to the property (which in Patrick’s experience in Oregon, including Portland markets, has typically ranged $200,000–$350,000).
“It’s expensive to alter a commercial space that doesn’t have drains, certain water lines, the required electrical, ventilation, etc.,” he explains. “Many also put in a back bar, seating, etc.” Costs vary by scope, location, and market.
Anticipate delays and setbacks
“Problems with licensing or permitting with the city that cause delay of opening can be extremely expensive,” says Patrick. “Every day they can’t pour their own beer is catastrophic financially. That’s the biggest risk I’ve seen in startup stages: timing.”
Delays are a reality in startup breweries. Brew system fabrication and delivery can take longer than the agreed timetable. Regulatory or permit approvals can drag on for months. Construction can hit unexpected snags. Make sure your financial reserves can handle delays and extra costs.
“Seasonality matters too,” explains Patrick. “You want to have the doors open when the beer-drinking season gets started. Winter months are usually the slowest for a brewery. You want to be open by April or May. Ideally, that’s not always in your control due to startup delays, but starting with April to May you want to operate during those busier months.”
5. Treat your accounting with as much respect as your brewing
“I’ve passed on a brewer that didn’t respect the accounting process,” says Patrick. “The brewers are focused on their first love, which is making delicious beer. Accounting isn’t necessarily the top and foremost in everyone’s mind, but in this situation, it was irresponsibly ignored. You can’t let the accounting take a distant back seat.”
Just as quality control is essential for good beer, you have to make sure the books are balanced and the financials are being tracked well. “Accounting keeps you out of trouble,” says Patrick. “It helps you plan, helps you get a return, and ultimately helps you generate revenue.”
Metrics: Know your numbers
Okay, so understanding your financials is important, but what do you need to track in order to understand the financial health of your brewery?
Here are the numbers, metrics, and other indicators Patrick says brewers should monitor:
- Breweries should typically break even or generate a small profit by the first six to 12 months of operation. “They’re at least breaking even, but they’re not paying themselves much yet.”
- Between 12 to 18 months, there should be a 10 to 15 percent bottom-line profitability . “If I’m used to seeing all models being profitable two years out by at least 10 to 15 percent,” says Patrick, “then if you’re not, I need to understand why or how you’re going to get there.”
- Beyond that, examine year-round profitability on a quarterly basis, with a focus on being profitable annually, and at least breaking even quarterly.
- If food is part of the business, are food costs (food-cost-percent and food labor) being contained at 20 to 25 percent of food revenues?
- Are you at capacity or will you be at capacity soon? What do you need for equipment for the next six months to keep up with demand?
- Cash flow. What is your financial liquidity, especially at the end of each quarter and at the beginning of the fourth quarter, given that winter is often a slower season?
- What is your leverage, the ratio between total liabilities and net worth? “There’s no magic number,” says Patrick, “but the greater the leverage the greater the risk in the business model. If someone is exceeding three-to-one, two-to-one, I have to take a harder look at it. Sometimes that can be a fleeting ratio and adjusts. If the leverage is pushed out, I need to understand why. Is it losses? Is it mismanagement?”
- Is it time to scale? If the balance sheet is showing that you have $7 to 8 sales for every $1 assets (and $6 sales for every $1 assets is typical), Patrick says it’s time to examine scaling.
As you find your stride in a profitable bottom line , you’ll also examine increasing efficiency. For example, as production volume increases, breweries typically purchase a grain silo. “They can buy in bulk, easily cut grain expense by two-thirds,” says Patrick. “Grain silos tend to pencil out quickly. It’s an exciting step up.”
The same thinking applies across the brewery. “At some point when you get larger, you’ve got more money to squeeze that remaining five percent profit out of your beer.”
Putting together a sales forecast and a cash flow forecast that you monitor at least monthly can be really helpful. Running a business or Lean Plan review meeting that also covers your financials is a great way to hold yourself accountable.
- Step 6: Obtaining insurance before opening a brewery
Breweries need various insurance, just like any other business. A brewery with a large employee roster and a fleet of self-distribution vehicles will have different needs from a three-person production-only startup. Find an insurance agent you can trust who preferably has experience working with breweries or wineries.
No, insurance is not as sexy as deciding which new “it” hop is going to be the feature of your new IPA, but if a brewery doesn’t keep current on their insurance needs, says Jason Jordan at Propel Insurance, then they are asking for trouble.
Note: Insurance and bond requirements vary by state, locality, and type of brewery, so make sure you’re talking with your insurance agent and even your lawyer for what’s right for your operation and where you’re planning on starting a brewery.
The biggest concern is the lease contract with the landlord, says Jordan. “That can be boilerplate or have a myriad of different insurance coverage and limit requirements to comply with.”
Here are other areas of coverage Jordan says a brewery might need, which will vary depending on the operation:
- Business income and extra expense coverage
- Backup of sewer and drains
- Equipment breakdown coverage (depending on the age of their brew system)
- Property insurance on all equipment and business property
- Key man insurance via a buy-sell agreement (if the brewery has multiple partners)
- Market valuation coverage (for offerings such as a barrel aging program)
- Product recall coverage “is sometimes a concern”
- Crime coverage for theft of money and securities
- Commercial auto insurance is key if expanding into or starting to self-distribute product
- Workers comp is mandatory if employees are on the payroll, which also necessitates employment practices liability insurance (known as EPL insurance or EPLI) to cover hiring and firing practices
A brewery’s most common claims tend to relate to workers comp injuries, such as employees straining a muscle or hurting their back lifting heavy items, says Jordan. Lost product from a power outage or mechanical breakdown of a glycol chiller is another common problem, as are backups of sewers and drains (causing damage to the space and interruption of business, equating to lost revenue.
Luckily, once you are up and running with your insurance, “the needs don’t change a lot from a brewery or brewpub that produces 500 barrels a year to 25,000 barrels a year,” says Jordan. “The biggest concern is keeping up with values on equipment for new purchases and expansions to make sure the brewery is adequately insured at the time of a loss. Brewery owners are notorious for brewing good beer and not for keeping up to speed on calling their agent to make changes.” Stay on top of it to help keep your costs lower in the long run.
- Step 7: Keeping regulations in mind when starting a brewery
Of course, there are laws and regulations—and brewing is a highly regulated industry. Your brewery will need approvals and compliance with relevant local, state, and federal authorities, such as your state’s alcohol oversight organization and the federal Alcohol and Tobacco Tax and Trade Bureau, or TTB.
In Oregon, for example, the Oregon Liquor Control Commission (OLCC) mandates a producer carry a $300,000 limit for liquor liability. At the federal level, the TTB requires all new breweries that want to offer beer for sale to submit a Brewer’s Notice. The TTB has a Beer FAQs webpage outlining what you’ll need to do when starting a brewery to have the proper federal approvals.
[Tweet ““No matter how much you think you know, you will have more to learn.”- Jamie Floyd, @Ninkasi”]
“No matter how much you think you know […] you will have more to learn,” says Jamie Floyd, co-founder of Ninkasi Brewing. “It changes and evolves and you have to know the people who are making the changes and you have to be ready to change as a company. If the FDA decides we need to put nutritional info on our bottles you have to do it. It’s the law. You will have to figure it out and pay for it.”
Get to know your legislators
Jamie also recommends getting to know your legislators at all levels of government and working with trade groups that try to update and influence state and federal policies related to the regulation and taxation of beer.
The growth of the industry is also leading to regulations being modified state to state, says Patrick, “if not to encourage craft beverages then to make it a more viable business model.”
Be ready for compliance and paperwork-based delays
In the meantime, compliance is not necessarily easy or fast. “Some of it is more the tediousness of the paperwork. Make one small change, file everything over again,” says Jason Carriere, co-founder of Falling Sky Brewing.
“TTB is known for a lack of timely responses. We submitted our application for the third expansion nearly two months ago, and we’re not even supposed to call and check the status for ninety days. Then when you do call, you sit on hold for two hours to find out where your application is in someone’s stack.”
Don’t forget federal obligations
Breweries also need the Brewer’s Notice. “That’s a brewery’s permission from the federal government to brew commercially,” says Jason. “It involves taxes, a bond you have to pay that serves as insurance for paying beer taxes. You complete an environmental impact statement for water and environment. It’s permission to make an alcoholic beverage and pay the taxes on it in the U.S.”
While starting a brewery requires lots of dedication, capital, vision, and red-tape navigation, it is also a booming industry and brewers who have a solid plan and stay their course have a solid chance of success. “The numbers are proving themselves: Craft beverages are here to say,” says Patrick. “There’s bound to be a slowdown eventually, but there’s one to two breweries a day opening across the country. People want it, and if people want it, people will supply it.”
And that someone could be you.
Anthony St. Clair is a business copywriter, author of the Rucksack Universe travel fantasy series, and a craft beer writer specializing in Oregon. Learn more at anthonystclair.com.
Table of Contents
- Dan Hughes’ advice on starting a brewery
- Step 5: Funding a brewery
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How To Write a Successful Microbrewery Business Plan + Template
Creating a business plan is essential for any business, but it can be especially helpful for microbrewery businesses that want to improve their strategy and/or raise funding.
A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.
This article provides an overview of the key elements that every microbrewery business owner should include in their business plan.
Download the Ultimate Microbrewery Business Plan Template
What is a Microbrewery Business Plan?
A microbrewery business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.
Why Write a Microbrewery Business Plan?
A microbrewery business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.
Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.
Writing an Effective Microbrewery Business Plan
The following are the key components of a successful microbrewery business plan:
Executive Summary
The executive summary of a microbrewery business plan is a one to two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.
- Start with a one-line description of your microbrewery company
- Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.
Company Description
This section should include a brief history of your company. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.
If you are just starting your microbrewery business, you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your microbrewery firm, mention this.
You will also include information about your chosen microbrewery business model and how, if applicable, it is different from other companies in your industry.
Industry Analysis
The industry or market analysis is an important component of a microbrewery business plan. Conduct thorough market research to determine industry trends and document the size of your market.
Questions to answer include:
- What part of the microbrewery industry are you targeting?
- How big is the market?
- What trends are happening in the industry right now (and if applicable, how do these trends support the success of your company)?
You should also include sources for the information you provide, such as published research reports and expert opinions.
Customer Analysis
This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.
For example, the customers of a microbrewery business may include:
- Adult beer drinkers who are looking for new craft beer experiences
- Restaurant and bar owners who are looking to add local microbrews to their menus
- Retailers who want to sell local microbrews in their stores
You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.
Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or microbrewery services with the right marketing.
Competitive Analysis
The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.
For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.
Below are sample competitive advantages your microbrewery business may have:
- Unique brewing process and flavors
- Strong brand identity and loyalty
- Quality ingredients and high standards
- Local focus and support of the community
- Innovative marketing
Marketing Plan
This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps.
- Product/Service : Detail your product/service offerings here. Document their features and benefits.
- Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
- Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
- Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, launch a direct mail campaign. Or, you may promote your microbrewery business via a PR or publicity campaign.
Operations Plan
This part of your microbrewery business plan should include the following information:
- How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
- What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?
The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.
Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a microbrewery business include reaching $X in sales. Other examples include brewing a specific number of barrels of beer or expanding to a new location.
Management Team
List your team members here including their names and titles, as well as their expertise and experience relevant to your specific microbrewery industry. Include brief biography sketches for each team member.
Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.
Financial Plan
Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix).
This includes the following three financial statements:
Income Statement
Your income statement should include:
- Revenue : how much revenue you generate.
- Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
- Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.
Sample Income Statement for a Startup Microbrewery Business
Revenues | $ 336,090 | $ 450,940 | $ 605,000 | $ 811,730 | $ 1,089,100 |
$ 336,090 | $ 450,940 | $ 605,000 | $ 811,730 | $ 1,089,100 | |
Direct Cost | |||||
Direct Costs | $ 67,210 | $ 90,190 | $ 121,000 | $ 162,340 | $ 217,820 |
$ 67,210 | $ 90,190 | $ 121,000 | $ 162,340 | $ 217,820 | |
$ 268,880 | $ 360,750 | $ 484,000 | $ 649,390 | $ 871,280 | |
Salaries | $ 96,000 | $ 99,840 | $ 105,371 | $ 110,639 | $ 116,171 |
Marketing Expenses | $ 61,200 | $ 64,400 | $ 67,600 | $ 71,000 | $ 74,600 |
Rent/Utility Expenses | $ 36,400 | $ 37,500 | $ 38,700 | $ 39,800 | $ 41,000 |
Other Expenses | $ 9,200 | $ 9,200 | $ 9,200 | $ 9,400 | $ 9,500 |
$ 202,800 | $ 210,940 | $ 220,871 | $ 230,839 | $ 241,271 | |
EBITDA | $ 66,080 | $ 149,810 | $ 263,129 | $ 418,551 | $ 630,009 |
Depreciation | $ 5,200 | $ 5,200 | $ 5,200 | $ 5,200 | $ 4,200 |
EBIT | $ 60,880 | $ 144,610 | $ 257,929 | $ 413,351 | $ 625,809 |
Interest Expense | $ 7,600 | $ 7,600 | $ 7,600 | $ 7,600 | $ 7,600 |
$ 53,280 | $ 137,010 | $ 250,329 | $ 405,751 | $ 618,209 | |
Taxable Income | $ 53,280 | $ 137,010 | $ 250,329 | $ 405,751 | $ 618,209 |
Income Tax Expense | $ 18,700 | $ 47,900 | $ 87,600 | $ 142,000 | $ 216,400 |
$ 34,580 | $ 89,110 | $ 162,729 | $ 263,751 | $ 401,809 | |
10% | 20% | 27% | 32% | 37% |
Balance Sheet
Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:
- Assets : All of the things you own (including cash).
- Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
- Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.
Sample Balance Sheet for a Startup Microbrewery Business
Cash | $ 105,342 | $ 188,252 | $ 340,881 | $ 597,431 | $ 869,278 |
Other Current Assets | $ 41,600 | $ 55,800 | $ 74,800 | $ 90,200 | $ 121,000 |
Total Current Assets | $ 146,942 | $ 244,052 | $ 415,681 | $ 687,631 | $ 990,278 |
Fixed Assets | $ 25,000 | $ 25,000 | $ 25,000 | $ 25,000 | $ 25,000 |
Accum Depreciation | $ 5,200 | $ 10,400 | $ 15,600 | $ 20,800 | $ 25,000 |
Net fixed assets | $ 19,800 | $ 14,600 | $ 9,400 | $ 4,200 | $ 0 |
$ 166,742 | $ 258,652 | $ 425,081 | $ 691,831 | $ 990,278 | |
Current Liabilities | $ 23,300 | $ 26,100 | $ 29,800 | $ 32,800 | $ 38,300 |
Debt outstanding | $ 108,862 | $ 108,862 | $ 108,862 | $ 108,862 | $ 0 |
$ 132,162 | $ 134,962 | $ 138,662 | $ 141,662 | $ 38,300 | |
Share Capital | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Retained earnings | $ 34,580 | $ 123,690 | $ 286,419 | $ 550,170 | $ 951,978 |
$ 34,580 | $ 123,690 | $ 286,419 | $ 550,170 | $ 951,978 | |
$ 166,742 | $ 258,652 | $ 425,081 | $ 691,831 | $ 990,278 |
Cash Flow Statement
Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:
- Cash Flow From Operations
- Cash Flow From Investments
- Cash Flow From Financing
Below is a sample of a projected cash flow statement for a startup microbrewery business.
Sample Cash Flow Statement for a Startup Microbrewery Business
Net Income (Loss) | $ 34,580 | $ 89,110 | $ 162,729 | $ 263,751 | $ 401,809 |
Change in Working Capital | $ (18,300) | $ (11,400) | $ (15,300) | $ (12,400) | $ (25,300) |
Plus Depreciation | $ 5,200 | $ 5,200 | $ 5,200 | $ 5,200 | $ 4,200 |
Net Cash Flow from Operations | $ 21,480 | $ 82,910 | $ 152,629 | $ 256,551 | $ 380,709 |
Fixed Assets | $ (25,000) | $ 0 | $ 0 | $ 0 | $ 0 |
Net Cash Flow from Investments | $ (25,000) | $ 0 | $ 0 | $ 0 | $ 0 |
Cash from Equity | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Cash from Debt financing | $ 108,862 | $ 0 | $ 0 | $ 0 | $ (108,862) |
Net Cash Flow from Financing | $ 108,862 | $ 0 | $ 0 | $ 0 | $ (108,862) |
Net Cash Flow | $ 105,342 | $ 82,910 | $ 152,629 | $ 256,551 | $ 271,847 |
Cash at Beginning of Period | $ 0 | $ 105,342 | $ 188,252 | $ 340,881 | $ 597,431 |
Cash at End of Period | $ 105,342 | $ 188,252 | $ 340,881 | $ 597,431 | $ 869,278 |
You will also want to include an appendix section which will include:
- Your complete financial projections
- A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
- Any other documentation which supports what you included in the body of your business plan.
Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your microbrewery company. It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.
A well-executed business plan will offer the best chance at success and keep you organized and on track as your microbrewery company grows.
Now that you understand how to write a microbrewery business plan, it’s time to get started on yours.
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Here you'll describe how you will put the plan you've described so far in place. This means outlining everything from your business team to suppliers, insurance, and licensing: Team structure: Identify the members of your business team. You can include their years of experience, qualifications, and responsibilities.
Brewery Business Plan Template. Use this free template to easily create a great business plan that organizes your vision and helps you start, grow, or raise funding for your brewery. In the 90s and early 2000s, microbreweries started popping up all over the country. By the 2010s, craft beer madness was in full swing, with beer aficionados ...
Business Plan Resources for Breweries. Many of the discussions we have at the Brewers Association (BA) revolve around resources and ideas that are specific to the beer industry. We focus on technical brewing, acquiring the right ingredients, building a brand, marketing beers, passing OSHA inspections, and complying with the TTB, among other things.
Below is a sample brewery business plan to help you write your own business plan: Executive Summary Business Overview. Mountain Craft Beer is a startup brewery located in Boulder, Colorado. The company is founded by Richard and Susan Williams, long-time craft beer enthusiasts who are ready to venture out and start their own brewing business ...
Brewery Business Plan Templates: Key Elements for Success. Creating a comprehensive and compelling business plan is crucial for any aspiring brewery owner seeking to secure funding and establish a successful venture. By incorporating key elements and following a structured template, you can effectively communicate your brewery's unique value ...
Once you start preparing a brewery business plan, you should consider including these 9 key sections in your plan: 1. Executive Summary. Your executive summary is the first section of the business plan, providing a quick introduction to the concept and goals of your brewery. The main purpose of writing an executive summary is to attract ...
Example: "CraftHaven Brewery," nestled in Downtown Riverdale, features a 5,000-square-foot space with a cozy taproom. Equipped with a 10-barrel brewing system, the brewery has an initial production capacity of 2,000 barrels annually, scalable to 5,000 barrels. CraftHaven's beer lineup, including the popular "Hop Heaven" IPA and ...
When writing your business plan, document the following information to show that you understand your market: The size of the 21-and-over population in the area you want to serve. The number of licensed breweries in the area. The number and types of other competitors (bars and restaurants, grocery stores that serve alcohol, etc.)
Total start-up capital and expenses (including legal costs, logo design, stationery and related expenses) came to approximately $41,700. Start-up assets required and utilized included brewing plant and machinery, pick-ups, office furniture, personal computers and other office equipment. This figure comes to $840,000.
The executive summary of a brewery business plan is a one to two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan. Start with a one-line description of your brewery company. Provide a short summary of the key points in each section of your business ...
A brewery business plan template is a customizable document that guides you through writing a winning business plan for beer-related enterprises, like a craft brewery, brew pub, or microbrewery. This kind of template covers topics like an executive summary, marketing plan, operations plan, financial plan, and others. ...
Part of your brewery business plan is figuring out all the necessary equipment. This should be related to your menu, your brewery size, location, and how you plan to operate. When planning your brewing equipment, consider the volume of beer you need to brew and have a clear plan for how you will be able to sell this.
Download the free Brewery Business Plan Template to organize your vision and ensure that nothing is overlooked. For a guide to writing a business plan specifically for a brewery, learn from this resource: How to Write a Brewery Business Plan. Sales: (857) 301-6002; Customer Care: (617) 682-0225; 333 Summer Street. Boston, MA 02210;
The following sample brewery business plan template gives you the key elements to include in a successful brewery business plan. It can be used to create a business plan for a craft brewery, a microbrewery business, or another brewery business concept. Sample Business Plan Template for a Brewery. Below is a brewery business plan example with ...
Step 3: Create a Brewery Business Plan Structure. Follow a ready-made structure to organize your business plan for brewery effectively. This structure should cover sections like: Summary: A short overview of your brewery, highlighting its most important aspects. Business Idea: Explain your brewery's idea, who your customers will be, and how ...
Follow these tips to quickly develop a working business plan from this sample. 1. Don't worry about finding an exact match. We have over 550 sample business plan templates. So, make sure the plan is a close match, but don't get hung up on the details. Your business is unique and will differ from any example or template you come across.
Example 3: pre-sale "beer of the month" or mugs for a "mug club" to provide a discount for the first year (or lifetime) based on a pre-launch subscription fee. Example 4: Social Media & Email signups. Build a local (and broader) following by documenting/sharing the process of brewing, building, launching the brewery.
A brewery business plan should include 10 key elements as follows: Executive Summary. Company Overview. Industry Analysis. Customer Analysis. Competitive Analysis. Marketing Plan. Operations Plan. Management Team.
For aspiring brewery business owners, having access to a sample brewery business plan can be especially helpful in providing direction and gaining insight into how to draft their own brewery business plan. Download our Ultimate Brewery Business Plan Template. Having a thorough business plan in place is critical for any successful brewery venture.
The real version of Growthink's Ultimate Brewery Business Plan Template is much more than a fill-in-the-blanks template. That template professionally guides you step-by-step so you can quickly, easily and expertly complete your business plan. Perhaps most importantly, it includes complete financial projections.
Our brewery business plan template includes key features to help you build a robust business plan: Market Analysis: Conduct a thorough assessment of the craft beer market, identify target demographics, and analyze consumer preferences. Our template provides a structured approach to conducting market analysis specific to the brewery industry.
Free Download: Sample Brewery Business Plan Template. In 2018, there were more than 7,450 breweries in the U.S.—well over than the historic high of 4,131 breweries in 1873, according to the Brewers Association. In such a crowded market, making good beer and opening the doors isn't enough anymore.
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A microbrewery business plan is a formal written document that describes your company's business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders ...
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