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Brewery Business Plan Template

Written by Dave Lavinsky

Brewery Business Plan

Over the past 25 years, we have helped over 5,000 entrepreneurs and business owners create business plans to start and grow their breweries. On this page, we will first give you some background information with regards to the importance of the business planning process. We will then go through a brewery business plan step-by-step so you can create your plan today.

Download our Ultimate Brewery Business Plan Template here >

What is a Brewery Business Plan?

A business plan provides a snapshot of your brewery or microbrewery as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.  

Why You Need a Business Plan for Your Brewery

If you’re looking to start a brewery or grow your existing brewery you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your brewery in order to improve your brewery’s success. Your brewery business plan is a living document that should be updated annually as your brewery concept grows and changes.  

Source of Funding for Breweries

With regards to funding, the main sources of secure funding for a brewery are bank loans and angel investors.

Banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

Angel Investors

The second most common form of secure funding for a brewery is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding or, like a bank, they will give you a loan.

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How to write a brewery business plan.

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, financial plan.

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of brewing company you are operating and the status; for example, are you a startup, do you have a craft brewery that you would like to grow, or are you operating a chain of brewpubs?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the craft brewery industry. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing strategy and plan. Identify the key members of your team. And offer an overview of your financial plan.

Company Analysis

In your company analysis, you will detail the type of brewing company you are operating.

For example, you might operate one of the following 6 core types of craft breweries:

• Microbrewery : which is a brewery that produces less than 15,000 barrels of beer per year and sells 75% or more of its beer off-premises.
• Nano brewery : a brewery that produces less than 15,000 barrels of beer per year
• Brewpub : this is a restaurant-brewery combination that sells 25% or more of its beer on-site and offers food service
• Taproom Brewery : which sells 25% or more of its beer on-site, but does not offer food services
• Regional Brewery : a brewery that has annual beer production of between 15,000 and 6,000,000 barrels
• Contract Brewing Company : a business that contracts with another brewery to produce its beer

In addition to explaining the type of brewery you operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include sales goals you’ve reached, new store openings, etc.
• Your business structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

In your industry analysis, you need to provide an overview of the brewery business.

While this may seem unnecessary, it serves multiple purposes.

First, researching the brewing industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards lighter beer consumption, it would be helpful to ensure your plan calls for plenty of lighter brew options.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your brewery business plan:

• How big is the brewery business (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your brewery? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local or regional population.

The customer analysis section of your brewery business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: college students, sports enthusiasts, soccer moms, techies, baby boomers, etc.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of brewery you operate. Clearly, baby boomers would want a different atmosphere, pricing, and product options, and would respond to different marketing promotions than college students.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations, and income levels of the customers you seek to serve. Because most breweries primarily serve customers living in the same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.  

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Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

With regards to direct competition, you want to detail the other breweries with which you compete. Most likely, your competitors will be other breweries and brewpubs located in your region.

Indirect competitors are other options that customers have to purchase from you that aren’t in the same target market or industry but may offer similar products or services. This primarily includes restaurants (for brewpubs) and other products (spirits, wine) for microbreweries. You need to mention such competition to show you understand that not everyone who drinks alcohol frequents a brewery.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What products do they offer?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide superior brewery products or services?
• Will you provide brewery products that your competitors don’t offer?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition or ways to make your brewery unique and document them in this section of your plan.

Traditionally, this section includes the four P’s: Product, Price, Place, and Promotion. For a brewery business plan, you should include the following:

In the product section, you should reiterate the type of brewery that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, will you brew IPAs, pilsners, stouts, etc.?

Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections, you are presenting the menu items you offer and their prices.

Place refers to the location of your brewery. Document your location and mention how the location will impact your success. For example, is your brewery located next to a heavily populated office building, or gym, etc.? Discuss how your location might provide a steady stream of customers. Also, if you operate or plan to operate kiosks, detail the locations where the kiosks will be placed.

The final part of your brewery marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Making your brewpub’s front store extra appealing to attract passing customers
• Establish a web presence
• Social media marketing
• Event marketing
• Advertising in local papers and magazines
• Reaching out to local bloggers and websites
• Local radio advertising
• Banner ads at local venues

While the earlier sections of your business plan explained your goals, the business operations section describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your brewery such as brewing beer, serving customers, procuring supplies, keeping the store clean, inventory management, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to serve your X,000th customer, or when you hope to reach $X in sales. It could also be when you expect to hire your Xth employee or launch in new markets.

To demonstrate your brewery’s ability to succeed as a business, a strong leadership team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a brewing company.

Ideally, you and/or your team members have direct experience in the brewery business. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in breweries and/or successfully running retail and small businesses.

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to create a sales forecast. For example, will you serve 100 customers per day or 200? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheet

While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $100,000 on building out your brewery, that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100.000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your projected cash flow statement will help determine how much money you need to start or grow your business and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. For example, let’s say a company approached you with a $100,000 brewing contract, that would cost you $50,000 to fulfill. Well, in most cases, you would have to pay that $50,000 now for supplies, brewing equipment rentals, employee salaries, etc. But let’s say the company didn’t pay you for 180 days. During that 180 day period, you could run out of money.

In developing your Income Statement and Balance Sheets be sure to include several of the key start-up costs:

• New location build-out including design fees, construction, etc.
• Cost of brewing equipment
• Cost of ingredients and maintaining an adequate amount of supplies
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your store design blueprint or location lease.

Free Business Plan Template for a Brewery

You can download our free brewery business plan PDF template here. Using a brewery business plan example can help you create your own business plan from scratch.

Brewery Business Plan Summary

Putting together a business plan for your brewery will improve your chances of success. The process of developing your plan will help you better understand the brewery market, your competition, and your customers. You will also gain a marketing plan to better attract and serve customers, an operations plan to focus your efforts, and financial projections that give you goals to strive for and keep your company focused.

Additional Resources For Starting a Brewery

To further help you, we have other articles on key aspects of how to start your brewery . and running it effectively. Specifically, our brewery marketing plan will help you develop the best promotions strategy. Our brewery startup costs post will let you know what costs to expect. Other resources you might might find helpful include:

• Commercial Brewing Equipment and Supplies
• Brewery Licenses & Permits
• Brewery Business Overview & Trends
• Requirements for Brewery Operations

Don’t you wish there was a faster, easier way to finish your Brewery business plan?

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Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how Growthink’s business plan services can give you a winning business plan.

Other Helpful Business Plan Articles & Templates

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

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 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

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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Wish there was a faster, easier way to finish your microbrewery business plan?

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Microbrewery Business Plan: How to write a successful plan for your Craft Beer business

posted on 7:39 pm

What do you include in your microbrewery business plan? We will take a closer look into the key components of a craft brewery business plan as well as the importance of drawing up one.

Why is a microbrewery business plan important?

A brewery business plan is a useful tool that can help you to secure the necessary funding needed to efficiently start and operate your craft brewery.  A  brewery business  requires a lot of investment, as well as high taxes, are charged and the costs of obtaining business permits and licenses to be allowed to operate in the area you have chosen as the base of your microbrewery operations

A microbrewery business plan provides a sense of direction It guides both management and employees on what to do to ensure the day-to-day operations of the business are done efficiently and effectively to contribute to the overall growth and success of the business. Remember, your craft brewery business plan is essential in increasing the likelihood of success for your microbrewery.

“Make sure you have a solid business plan and good corporate documents. They are important to properly set in place and complete so that everyone involved knows what the road map is and how you handle any disagreements should they arise.”

• Dan Schwarz , founder and CEO of Lift Bridge Brewery in Stillwater, Minnesota.

8 Components of a good microbrewery business plan

Executive summary.

This section provides an outline for the contents of the whole microbrewery business plan. It is the most important section of the business plan as it enables the reader to save time in getting the whole view of the business plan by providing a summary of the main areas of the business plan. Keep in mind that this section is to be written last after you have completed the rest of the business plan and make it convincing enough to the readers to motivate them to read through the rest of the plan.

Business overview

In this section, you are to provide a detailed description of your business including information about the microbrewery such as business legal name and trade name, business address, the nature of the business to be done, and date of registering the business. Give a list of products and services that you want to offer. When providing a description of the business, including details on the microbrewery concept and brand you have in mind that you want to bring to life. Most importantly, provide a mission statement that summarizes what your craft beer business will achieve. In addition, mention the business goals that will help you realize the mission you have set out for your craft brewery. These goals could either be short-term, mid-term, or long-term depending on the timeframe you have set to accomplish them.

Industry overview

It’s important to show that you have an inner understanding of the overall beer industry and the microbrewery sector that you want to focus your efforts. You can do this by describing the nature of the beer industry and the microbrewery sector, the main players, and industry trends.   Make sure to include the most recent statistics including demographic, economic, social, and cultural factors that will play a role in making your microbrewery business a success. Moreover, highlight the relevant government regulations and legislations that govern the industry.  Provide details on the impact that the legislation and regulations will have on your craft beer business.

Market analysis

The goal of this section is to provide proof that there is demand for your product in your target market. You want to prove that there is a demand for beer in your target market. The best way to conduct your market analysis is to do a competitor analysis where you locate your potential competitors in the microbrewery space. After identifying your competitors, list down their strengths and weaknesses. Use the information you have gotten about your competitors to explain to investors why your microbrewery will stand out from the competition.

In addition, a description of the target market that you intend to serve is important to mention in your market analysis. Use demographic characteristics such as age, gender, and income levels to give a clear picture of your customer persona. . You can get this information from external sources that are reliable e.g. Statistics Canada . When describing your target market, keep in mind that customer segments have unique profiles therefore you should select the ones that have the highest preference for your products and services.

Marketing plan

You should aim to show how you are going to attract and retain customers,  and grow the business. Returning customers are key to keeping the doors to your business open for a long time. Explain the marketing strategies you will use to keep customers coming for your craft beer. Describe the channels you intend to advertise your business. You can choose between traditional media and online/digital media to get the word out  A mix of both traditional and digital media is more effective in reaching a larger audience.

Pricing policy and selling methods should also be included in the marketing plan. Your pricing policy should factor in various costs involved in bringing your beer to the market and be competitive when compared to your competitors. Moreover, align your beer pricing to the financial projections in the financial plan section of your microbrewery business plan. Selling methods refer to the ways you will use to generate revenue from the sale of your beer products. One of the common selling methods in the beer manufacturing industry is personal selling where you sell directly to your customers. Explore other selling methods that will bring more revenue into the business.

Operations plan

Your microbrewery business plan should contain an operations plan that lays down the blueprint for the daily operations of your brewery. You will need to document the controls and systems you intend to establish in your brewery operations. This ensures that brewery operations are conducted in a systematic manner before the start of operations.

Provide details on the business suppliers and a description of the items that they will be supplying.  i.e. raw materials, manufacturing technology, and brewing equipment among others. Additional areas covered in this section include inventory management, operations workflow i.e. beer manufacture and delivery processes, distribution strategy, and logistics i.e. beer packing and shipping. Other business areas that fall under this section are business support functions such as accounting.

Include environmental compliance subsection within the operations plan showing the impact of your microbrewery business on the environment. It should also explain how the business intends to deal with waste produced from the beer manufacturing processes and other environmental issues affecting the industry. One way of demonstrating your craft brewery’s compliance to environmental regulations governing the industry is by developing an environmental code of conduct that guides everyone in the business is going about disposal of waste and conservation of the surrounding environment affected by business operations.

Management and human resources

Provide information about the people who will be required to operate your microbrewery including microbrewery/pub manager, bartenders/baristas, table attendants, accountants, and cleaners. List all of the personnel required to take charge of brewery operations at your microbrewery and the duties and responsibilities they are to be accountable for.

Your human resource policies and procedures should includeweekly operational hours, vacation programs, training and development plans, remuneration and benefits for all employees, and health & safety guidelines to be followed at the workplace.

Financial plan

A microbrewery business plan is not complete without a financial plan. This is the last section of your business plan. Provide all-important financial numbers to be reviewed by investors in order to make a decision on whether or not to put money into your craft beer business. You will need to provide financial projections for your business for the first three to five years of operations. Financial projections include estimated revenues, expenses and profits on both monthly and yearly basis within the selected timeframe. It should also have information on your revenue model i.e. how you generate sales from the beer sold, financing plan i.e. sources and amount of funds needed to start the business.

Your financial plan should have three main financial documents: profit/loss statement, balance sheet, and cash flow statement. Additionally, you can include a break-even analysis to show how long the business is expected to start making a profit and generate returns for investors. Put in relevant tables, graphs, and charts to give a pictorial representation of your financial projections. These can be placed under the Appendix section after this section.

3 Things to do before writing your microbrewery business plan

• Do research on the microbrewery industry to obtain all information you can on the industry. This will enable you to get all you need to start your very own brewery business.
• Get first-hand information from other microbrewery owners by asking as many questions about the business. It will help you to differentiate between the do’s and don’ts in establishing your craft beer business
• Figure out unique names for the various beer brands and do some research to determine whether the names you have chosen are intellectual property belonging to other microbrewery companies. This will save you time and money on marketing and promotion using intellectual property that you are not allowed to use in the first place

At  Vaisus , we create detailed, customized, and high-quality funding business plans. We have successfully helped multiple businesses develop bank, investor, and grant-ready business plans and proposals.  Schedule a callback and speak to one of our consultants.

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Microbrewery Business Plan Sample

Published Jun.18, 2018

Updated Apr.23, 2024

By: Brandi Marcene

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Table of Content

Do you want to start microbrewery business?

Are you planning how to start a microbrewery business ? There is no doubt, this is a great business venture with a lot of potential. Nowadays, a lot of people appreciate great tasting beer and for this reason, there is an increase in the number of people who need to enjoy a wide variety of quality beers. As a result, many entrepreneurs have decided to venture into the brewing industry. The eye for tasty beer has opened up new opportunities for private brewers to develop their own brands. Starting a microbrewery is the foundation to launch your own brewery business. With a great business plan for microbrewery and strategy, it’s definitely a rewarding venture that promises good profits.

Executive Summary

2.1 the business.

The microbrewery will be registered under the name Starvic Brewery and will be located in Oakland, California. The microbrewery will be owned by Thomas Anderson who is a Brewing Specialist with vast experience on microbrewery start up cost and what will be involved.

2.2 Management Team

Thomas Anderson is who is the owner of Starvic Brewery is a professional brewing specialist with sufficient experience spanning over two decades in the brewing industry. Before own a brewery, Anderson worked for various high profile brewery brands across the United States. After completing business-setup, Thomas has plans to employ professionals to assist in managing the microbrewery.

2.3 Customer Focus

Starvic Brewery has plans to set up the brewery in a strategic location to ensure the business plan for microbrewery effectively reaches out to the target market. The brewery intends to serve different kinds of customers.

2.4 Business Target

Starvic Brewery will offer various types of products in line with maintaining high brewing standards. The brewery intends to target various customer segments in Oakland.

Company Summary

3.1 company owner.

Thomas Anderson is an experienced brewing specialist who has had a successful career journey. He has achieved numerous career accomplishments and played a key role in helping to startup various brewery plants in various cities across the United States.

3.2 Aim of Starting the Microbrewery Business

Everyone loves tasty beer and nowadays, there are numerous brands of beer which have been introduced in the market. In the recent days, customers prefer having a wide variety of beers to choose from. Aside from the traditional brands, there was a need to be creative and introduce other exciting brands and flavors in the market.

3.3 How the Microbrewery Business will be Started

With over twenty years of experience, Mr. Thomas enjoys extensive experience in the brewing industry. Therefore, he understands how to start microbrewery business using the latest technologies and business practices. Additionally, he has sought the services of financial experts to help him come up with a detailed financial analysis.

Services for Customers

Starvic Brewery intends to provide its customers with diversified products in order to attract more customers and boost revenue for the microbrewery. When planning how to start your own microbrewery , there should be a defined approach that emphasizes upholding the highest standards of beer quality. In this regard, Starvic Brewery intends to offer the following products.

• Starvic Super is a special beer brand made using traditional ingredients with a fine taste
• Starvic Pilsner is a combination of the finest imported and domestic malts
• Starvic Lager is an incredible traditional brewed malt which contains European yeast and roasted specialty malts
• Starvic Light is a crisp and crystal clear beer known for its white foamy head.

Marketing Analysis of Microbrewery Business

In the recent times, many people are beginning to appreciate the value of locally brewed beers. In this craft brewery business plan, Starvic Brewery intends to capitalize on the increasing consumption of local brewed beers to attain higher revenue streams.

There is no doubt, business plan for microbrewery is flourishing thanks to steady growth in locally brewed beers. In this regard, a comprehensive market analysis was done to better understand the market and how to advertise to potential customers.

5.1 Market Segmentation

In order to ensure Starvic Brewery meets its market obligations, the business will sell four unique beer varieties that have never been sold on the market before. Even though microbreweries cannot exceed a specified amount of barrels produced, they are well placed to meet the demands of the market. With great opportunities to expand revenue such as forming partnerships with beer distribution, the future of microbreweries looks great. This microbrewery start up business plan has identified the following customer segments. Locally brewed beers are consumed by a wide range of customers.

5.1.1 Corporate Executives

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Oakland is a large city with a huge working class population. Statistics have shown that a majority of beer consumers are career professionals who earn a regular income. A good number of patrons who go to entertainment spots where locally brewed brands are sold happen to be employees drawn from different careers. For this reason, Starvic Brewery has come up with a beer product line that will meet the needs of corporate executives. In this case, strategic pricing and quality assurance is critical to tap revenue from working class customers.

5.1.2 Entrepreneurs

Entrepreneurs are a key customer target for Starvic Brewery because some of them are expected to purchase locally brewed beers in large quantities. In this case entrepreneurs such as those who own bars and business plans restaurants well as beer retailers are expected to get their supplies from Starvic Brewery. This microbrewery business plan sample has outlined the techniques to be used to market the microbrewery to entrepreneurs around Oakland.

5.1.3 Sports Professionals

Starvic Brewery has a wide range of beers crafted with special ingredients to provide energy. Together with other beer varieties, the business intends to target sportsmen and women who according to statistics, are an excellent market segment for any microbrewery. Oakland is a hub for various sports activities thus providing ready market for locally brewed beers from Starvic Brewery.

5.1.4 Visitors and Tourists

As any other large city, Oakland receives numerous visitors who travel to the city both for business plan for microbrewery and leisure activities. Because of the numerous entertainment facilities built around the city, having special locally brewed beer with a unique taste will help to market Starvic Brewery across the city and its environs. In addition, many tourists come to Oakland to see the numerous points of interest.

5.1.5 College Students

Starvic Brewery products are not sold to underage consumers but college students who are above 18 years love unique blends of locally manufactured beers. Given the high number of colleges in Oakland the surrounding areas, there is a great market for local beer brands. This business plan microbrewery outlines how the microbrewery will reach out to various customers.

5.2 Business Target

Starvic Brewery has acquired the required machinery and facilities that will support the infrastructure of running the microbrewery. Oakland is a large city and this microbrewery business model intends to target the residents, entrepreneurs and special groups. The microbrewery plans to adopt modern brewing infrastructure and technologies to help to seamlessly coordinate business activities. With a good microbrewery business plan template in place, the microbrewery hopes to increase its annual sales margins by 15% – 20%.

5.3 Product Pricing

Starvic Brewery plans to come up with well-researched product pricing guidelines after carefully surveying the market. In order to survive industry competition, good microbrewery business plans place a lot of emphasis on accurately determining product prices.

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In order Stanvic Brewery to meet its objectives, Thomas Anderson has worked closely with experts devise a marketing strategy that will help the microbrewery to effectively serve its customers. When planning to start a microbrewery business , a good sales strategy should be put in place for the enterprise meet its objectives.

6.1 Competitive Analysis

Starvic Brewery intends to come up with a well-structured business plan for microbrewery model that will ensure provision of quality products. Even though there are other microbreweries in the region, the microbrewery has identified its strengths and the available opportunities to leverage on.

6.2 Sales Strategy

For the microbrewery to realize its sales targets, the following business strategy services have been identified to help market the business plan for microbrewery . While you plan how much to start a microbrewery , the following marketing action points will be of great help. Starvic Brewery intends to adopt the following plan.

• Introduce the microbrewery in a grand style by organizing a party and giving attendants free gifts such as offering them free cups of locally brewed brands for customers to have a feel of the tastes and flavors.
• Ensure the microbrewery always has various types of products at all times to offer customers the variety they need
• Place signage at strategic places within the neighboring areas to market the microbrewery
• Come up with a loyalty plan that allows rewarding of potential customers with goodies from the microbrewery
• Advertise the business on local media channels such as television, radio and newspapers
• Advertise the business on local directories such as yellow pages
• Use word of mouth marketing and referrals to reach out to potential customers
• Hire a professional marketing company to help the microbrewery effectively penetrate the market
• Organize roadshows and events in the target customer areas with a view to market the microbrewery.

6.3 Sales Forecast

In order to meet business plan for microbrewery goals, Starvic Brewery has come up with a sales forecast that will show how the microbrewery is expected to perform when it begins operations.

Personnel Plan

Starvic Brewery hopes to recruit well trained and experienced staff to run its operations on a day-to-day basis. This microbrewery start up business plan explains the kind of staff the business will need to hire in order to meet its objectives.

7.1 Personnel Plan

Starvic Brewery is owned by Thomas Anderson who is also the owner and manager of the microbrewery. As plans are put in place to start the business, the following staff will be employed in the business plan for microbrewery .

• Owner/Manager
• Bottling and Shipping Manager
• Brewing Managers
• 2 Marketing Executives
• 1 Accountant
• 4 Bottling Staff
• 3 Shipping staff
• 2 Security Guards

Successful applicants will be thoroughly trained in various areas of microbrewery operations in order to ensure a seamless flow of operations.

7.2 Average Salaries

Stanvic Brewery intends to pay its members of staff the following salaries within the first three years of operation.

Financial Plan

Starvic Brewery has come up with a comprehensive financial plan that will guide the operations of the microbrewery. In order to streamline business operations and forecast microbrewery profit margin , initial capital must be determined alongside other business plan for microbrewery expenses. In this case, Thomas Anderson will finance the microbrewery using his personal savings and will be helped by two investors. In addition, a bank loan shall be secured to provide additional capital.

Below is the key financial data for Starvic Brewery.

8.1 Important Assumptions

Financial forecast for Starvic Brewery shall be based on the assumptions below.

8.2 Brake-even Analysis

The Brake-even Analysis for Starvic Brewery is illustrated in the graph below.

8.3 Projected Profit and Loss

Profit and Loss information for the microbrewery is calculated on an annual and monthly basis as shown below.

8.3.1 Monthly Profit

8.3.2 Yearly Profit

8.3.3 Monthly Gross Margin

8.3.4 Yearly Gross Margin

8.4 Projected Cash Flow

Below is a summary of pro forma cash flow, subtotal cash spent, subtotal cash spent on operations, subtotal cash received and subtotal cash from operations.

8.5 Projected Balance Sheet

Below is a Projected Balance Sheet for Starvic Brewery that shows capital, assets, liabilities, current liabilities and long term assets.

8.6 Business Ratios

The following is the Ratio Analysis, Business Net Worth and Business Ratios for the microbrewery.

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How to Write and Develop a Microbrewery Business Plan

The start of a successful microbrewery is composed of a ton of elements working synchronously. While the beer industry is a unique one, it shares many of the same business principles as companies in other sectors; one of these principles is establishing a business plan when beginning any new company.

So what is a business plan exactly? Oxford Languages describes a business plan as “a document setting out a business’s future objectives and strategies for achieving them.” Essentially, your business plan provides the groundwork upon which you’ll build your microbrewery into what you desire it to be. Let’s explore this further.

Why Are Business Plans Important?

It helps to know why building a business plan is essential before you get started writing one. Let’s take a look at some of the most important  reasons :

• Idea Development –  A business plan gives you the opportunity to layout any ideas and goals for your new microbrewery and see how they might realistically work or need to be altered.
• Timeline Establishment –  When starting a new company, the establishment of a timeline is crucial. By setting deadlines and completion expectancy within your business plan, you can ensure you stay on course while getting your microbrewery up and running.
• Financial Guidelines –  As the old adage says, “It takes money to make money.” Finances will play a vital role in the development of your microbrewery. By laying out financial guidelines, budgets, and expectations within your business plan, you can ensure you stay on track with profits and don’t overspend.
• Marketing Planning –  With any business, especially new ones, marketing is extremely important. By laying out your business plan, you have a crucial opportunity to plan for sales and customer acquisitions and integrate with the other steps for a more fluid process.
• Business Model Development –  When you lay out the plans for your new microbrewery, how solid does it seem? Do any potential problems or flaws stick out? By developing your business plan fully before implementation, you can often gain a unique perspective and build upon it or revise it where necessary.
• Strategic Planning –  It’s crucial to know what your competitors and other microbreweries in the industry are doing. Your business plan can help you with strategizing and eventually claiming a piece of the pie for yourself.
• Investment Seeking –  Are you planning to seek funding from investors for the start-up of your new microbrewery? Potential investors will want to see a clear vision and plan for your business, which can be provided through a well-crafted business plan.

Do This First

Before you begin drafting your business plan, it’s vital that you have a clear understanding of the goals and expectations you have for your microbrewery. Setting your goals will lay the framework for the remainder of your plans to come. Take a moment to simply consider the objectives you have in mind for your microbrewery; don’t attempt to establish your plan for accomplishment yet. Here’s how to begin and what to consider with your goal development:

• Vision –  You’ll need to consider the vision you have for your new business carefully. What is the end goal of starting your microbrewery? What would you like to accomplish with your business? Why is this move important to you, and how will it be necessary to other people? Answering these and other similar questions can help provide you with clear and established expectations.
• Financial  – Finances will play an essential role in the successful launch of your new microbrewery. Specifically, it’s important to have a good idea of where you desire your financial margins to be and how you would like to see growth. Staying realistic when setting financial goals is critical.
• Expansion –  How big do you plan to go with your new business? Are you hoping to keep things small, or do you have dreams of going big? By establishing how you expect and desire for your microbrewery to grow can help you with navigating future business decisions.
• Timelines –  To keep your goals achievable, deadlines for completion must be established; doing this can help ensure you stay on track. It’s important that you revisit your goals from time-to-time to check in on completion and to make sure things are running on schedule.

What Elements Make Up a Business Plan?

The underlying construct of a business plan is generally the same across different industries. Below are the elements you’ll want to make sure are included:

• Contents –  Your business plan should begin by laying out what is to be expected within and what page each section can be found on for quick reference.
• Statement of Purpose  – The statement of purpose provides a brief summary of your business plan and your aspirations with beginning your microbrewery. Writing this portion at the end of crafting your business plan is generally more manageable since you’ll have a good grasp of all components by that time.
• Microbrewery name, including any DBA (doing business as)
• Microbrewery established date
• Contact information, including phone number and email address
• Bank information
• Website and social media information
• The mission statement of your brewery
• Legal business registration (corporation, partnership, LLC., sole proprietorship, or otherwise)
• Desired or current location of microbrewery
• Personal goals for the microbrewery
• Professional goals for the microbrewery
• Listing of products and services
• Researched market size and demographics
• Growth trends and expectations
• Target market description
• Sales expectations
• Branding plans for your microbrewery
• Analysis of competition within the industry
• Operational Plan –  The operational plan portion of your business plan will outline current and expected staff needs, day-to-day functional components, microbrewery supply needs, and licensing and insurance requirements.
• Finances –  You’ll definitely want to approach the financial section with care. Laying out the details of your financial plan will help guide you as you build your microbrewery business and provide valuable information for potential investors. You should include expected expenses, sales forecasts, start-up expenses, and day-to-day expenses in this section of your business plan.
• Summary –  The summary of your microbrewery business plan essentially ties everything together. Be sure to include final notes on why you expect your microbrewery to succeed and summarize the components you need to ensure this success.
• Corresponding Paperwork –  If you have any pertinent letters of recommendation, contracts, customer testimonials, or other legal documents, they should be included with your business plan.

Tips for Your Microbrewery Business Plan

The microbrewery industry is a unique and challenging one. To formulate a successful business plan, it’s crucial that you address the unique challenges of your microbrewery head-on. Here are five industry tips to help:

• Focus on the Equipment –  The equipment of your microbrewery is the backbone for its functionality and success. Without continued access to things like storage tanks, fermentation tanks, kegs, cleaning equipment, bottling equipment, and more, your brewery will not succeed. Be sure to layout an exact financial plan for acquiring and maintaining necessary brewery equipment.
• Location Is Important –  The location needs of your microbrewery will be anything but micro. When considering the site for your new business, be sure to take machinery and equipment needs, as well as supporting plumbing and electrical structures.
• Include a Plan for Failure –  If your brewery incurs damage, or a machine breaks down, what’s your plan to continue operations? Problems are inevitable with any business; it’s important to plan ahead for issues and demonstrate this preparedness to investors to ensure confidence.
• Start-up Costs –  Starting a microbrewery will be expensive and take a decent amount of funding upfront. Careful focus must be placed in the financial portion of your business plan so you can plan accordingly. When building your plan, consider things like loan needs, plans and timelines for repayment, lines of credit needed, and projected operational costs.
• Establish a Support Network –  Whether it’s personal motivational support, financial support, or business guidance, it’s crucial to have access to a network of support   to help you along your new business journey. It definitely won’t be easy starting your microbrewery, but it’s well worth it in the end.

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How to Write a Brewery Business Plan: Complete Guide

• January 3, 2023
• Food & Beverage

Whether you’re looking to raise funding from private investors or to get a loan from a bank (like a SBA loan) for your brewery, you will need to prepare a solid business plan.

In this article we go through, step-by-step, all the different sections you need in the business plan of your brewery. Use this template to create a complete, clear and solid business plan that get you funded.

1. Executive Summary

The executive summary of a business plan gives a sneak peek of the information about your business plan to lenders and/or investors.

If the information you provide here is not concise, informative, and scannable, potential lenders and investors will lose interest.

Though the executive summary is the first and the most important section, it should normally be the last section you write because it will have the summary of different sections included in the entire plan.

Why do you need a business plan for a brewery?

The purpose of a business plan is to secure funding through one of the following channels:

• Obtain bank financing or secure a loan from other lenders (such as a SBA loan )
• Obtain private investments from investment funds, angel investors, etc.
• Obtain a public or a private grant

How to write your brewery’s executive summary?

Provide a precise and high-level summary of every section that you have included in your business plan. The information and the data you include in this segment should grab the attention of potential investors and lenders immediately.

Also make sure that the executive summary doesn’t exceed 2 pages in total: it’s supposed to be a summary for investors and lenders who don’t have time to scroll through 40-50 pages, so keep it short and brief.

The executive summary usually consists of the five major sub-sections that include:

• Business overview : this segment will provide a high-level summary of your business and the products you will sell. For example, mention the type of brewery you want to open (such as microbrewery, brewpub, taproom brewery, regional brewery, contract brewing company, etc.). Also, briefly mention your products and services (if you offer a sit-in taproom for example) and pricing strategy
• Market analysis : summarise the market where you will operate and provide a brief about the target audience , market size , competitors , etc. No need to provide granular data here, save it for the Market Overview section later on (or the appendix). You must provide only scannable data points to keep potential investors and/or lenders hooked.
• People : introduce your brewery’s management and employee structure. Provide a brief (no more than a couple of sentences each) of the knowledge and experience of the team. Also, speak about your hiring plans.
• Financial plan : how much profit and revenue do you expect in the next 5 years? When will you reach the break-even point and start making profits? You can include here a chart depicting your key financials such as revenue, gross profits, and net profit
• Funding ask : what loan/investment/grant are you seeking? How much do you need? How long will this last?

Brewery Financial Model

Download an expert-built 5-year Excel financial model for your business plan

2. Brewery Business Overview

This is the section where you will provide details about your brewery and the chosen business model. You must address some important questions that lenders and/or investors generally ask. Here is a quick list of some of those questions you must address:

• What’s the brewery’s location and why did you select that location?
• Why did you select the type of brewery you want to open?
• What will be the beer products you will offer? Any other drinks or services?
• What will be your pricing strategy and why?
• Who is your target audience?
• How many customers can you serve at once (in case you are going for options like taproom brewery or brewpub)?
• What will be the legal structure of your company?

Let’s look at different subsections that you must include:

a) History of the Project

Any business must have two components:

• Passion & experience of the business owner
• Rationale behind starting this type of business today

Passion & experience

You may or may not have prior experience. If you have experience, speak about it and how it will help you to run your business. For instance, you may have been a brewmaster in a popular brewery for 12 years, and now you want to start your own brewery and use your knowledge to run it more efficiently.

However, if you don’t already have experience, that’s fine. You must demonstrate your passion and some industry knowledge that you have acquired through intensive research.

Is there a certain problem (or perhaps, a set of problems) that your brewery will try to solve when it comes into existence? For instance, there may not be any brewpub in the area, and you want to capitalize on the opportunity. 

However, you must understand that the market must be suitable for the business. For instance, if the target audience in the location prefers a taproom brewery, offering a brewpub instead may not be a wise decision.

b) Business Model

This sub-section of the Business Overview will explain your business model. Describe the following points briefly:

• Will you buy an existing brewery and do some remodeling, or will you start a new brewery and design it from scratch?
• The type of brewery you want to open and why
• Equipment, inventory, and storage facilities that are essential for the brewery to operate successfully

There are multiple types of breweries that you can consider:

• Nano brewery : This is the smallest type of brewery. There are no defined barrels per annum, but they produce a very limited amount of beer per year
• Microbrewery : This type of brewery will produce less than 15,000 barrels of beer a year. Most beer is sold onsite instead of using distributors. These breweries are typically independently owned
• Brewpub : A restaurant and brewery hybrid in which the beer produced is served to the bar customers
• Taproom brewery : These are professional breweries that sell beer onsite and even via distributors. However, there are no restaurant services available. Sometimes, such breweries will have attached taprooms
• Regional brewery : These are breweries that produce anywhere between 15,000 and 600,000 barrels of beer a year
• Contract brewing company : In this form, a company will hire other breweries for beer production and packaging. However, the marketing and distribution of the beer will be the responsibility of the hiring company

The type of brewery that you want to open will depend on its market size, target audience, your business expansion plans, etc. For instance, if you want to sell your products outside of your state, you may want to go for a regional brewery or perhaps, settle for a contract brewing company.

c) Products & Services

Since you want to start a brewery, you will obviously be selling beer. However, you may decide to make different flavors. Also, if you want to open a brewpub, you may also be running a full-scale restaurant and serving food to your customers.

Depending on the type of brewery you will open, you must list all the products and services that you will sell. For example, if you are selling packaged snacks (taproom brewery) or instead if you want to have a full-service kitchen (brewpub), mention the relevant products here.

d) Pricing Strategy

In this segment, you must explain your pricing strategy. The price of the beer will depend on the product itself and its manufacturing complexity. Even the raw materials and the scale of your business will also determine the pricing.

If you are creating a premium line of products with a higher price tag, make sure that there is a proper justification for that. 

It is a good practice to include a pricing chart for all possible products if you have a small menu. However, if you are offering many products, provide a sample menu with the pricing range.

3. Brewery Market Overview

A complete understanding of the market where you want to operate is important for the success of your business.

For example, if you want to open your brewery in an affluent area where people don’t mind spending extra in exchange for a unique craft beer, a specialty taproom brewery may be a successful business.

Therefore, you must cover here 3 important areas:

• Brewery Industry Status Quo : how big is the brewery industry in your area? What is its growth rate (or decline rate) and what are the factors contributing to its growth or decline?
• Competition overview : how many competitors are there? How do they compare vs. your business? How can you differentiate yourself from them?
• Customer analysis : who is your target audience? What type of breweries do they prefer? How regularly do they visit breweries? Do they prefer to sit and eat in a brewery, and if so, do they prefer brewpubs or do they prefer taproom breweries? How much do they spend on average?

a) Brewery Industry Status Quo

How big is the brewery industry in the us.

According to Brewers Association , the overall beer market in the US is $100 billion, while craft beer accounted for 27% market share ($26.8 billion).

After a decline of 9% in 2020, primarily due to the COVID-19 pandemic, the beer industry bounced back by 8% in 2021.

However, what’s interesting is that the overall number of breweries in the U.S. increased in 2021 and reached an all-time high of 9,247 breweries (+2.5% vs. 2021) of which the breakdown (in terms of production volume) is shown below:

How big is the brewery industry in your area?

Once you provide the overall picture of the US, divert your attention to the area where you want to operate. It might not be possible to find region or area-specific studies, and hence, you must estimate the size of your market yourself. For more information on how to do so, read our article on how to estimate TAM, SAM and SOM for your startup.

For example, there were 9,247 craft breweries in the US accounting for $26.8 billion in sales. Hence, the average annual revenue for each craft brewery stood at about $3,000,000.

Therefore, if there are 18 craft breweries in your area (city or region), the overall brewery market size is approximately $54 million.

How fast is the brewery industry growing in the area?

After market size, you must look into the growth rate of the brewery industry in your area. This information may not be available via online research papers. However, assessing the growth rate of the brewery industry can be assessed using the number of competitors in the area.

For instance, if there were 13 breweries in 2018 and 18 breweries in 2022, the average annual growth rate of the brewery market in your area is 8.3%.

What are the current brewery market trends in your area?

It is vital to understand the trends of the brewery industry in your area. Understanding trends will allow you to devise marketing strategies.

Understanding trends won’t be easy. You must conduct research and talk with your target audience. Additionally, you must also study your competitors to understand their target audience, the products they sell, etc.

Some common questions you may ask the target audience include:

• What type of breweries do they prefer?
• At what time of the day do they prefer to visit a brewery (evening, afternoon, late night)?
• How frequently do they visit breweries?
• What type of foods do they usually order along with beer (if they are going for taprooms having a partnership with food trucks or they are opting for brewpubs)?

You can ask as many questions as you need to understand the evolving trends.

b) Competition Overview

Studying your competitors’ business models is vital. You need to understand what makes them successful or why they fail. A clear understanding of their brew offerings, marketing strategies, etc., will allow you to provide a better service.

If your competitors are offering nearly the same products & services, then what is their market share and how do they market their products & services to attract new customers?

It is always a good idea to do some research (if necessary, physically visit your competitors without revealing your business intentions) and create a comparative table summarizing their product & service offerings, marketing strategies, target audience, etc.

Here is a sample table that you can use:

The table you will create will depend on what information you need and want to include based on your proposed business model.

Brewery SWOT Analysis

It’s always good practice to provide a SWOT analysis as part of the business plan for your brewery. It must be crisp and highly focused. SWOT stands for Strength, Weakness, Opportunities, and Threats.

Here is a sample that you can use as a reference:

• Strengths : 8 years of brewmaster experience in a reputed large (non-craft) brewery
• Weaknesses : Startup cost, zero reputation
• Opportunities : An affluent neighborhood with rising demand for a brewpub, no brewpub in a 2-mile radius
• Threats : Increasing cost of raw materials, mass-production beer manufacturers are flooding the market

A clear understanding of your strengths and weakness along with opportunities and threats in the real market can help you to design your marketing strategy. It also helps potential investors to assess the risk and reward profile of your business and is often a must have in your brewery business plan.

c) Customer Analysis

This is the sub-section where you will provide a detailed analysis of your target audience. You will expand the data points your provided earlier in the Business Overview segment.

Some important points that you must include in your customer analysis include:

• Age and gender distribution (you can get local demographic data from census.gov )
• Per capita expenditure on beer
• Frequency of brewery visits
• Average monthly income and disposable income
• Average bill size per visit
• Average yearly or monthly spending on breweries
• Type of breweries preferred
• The expected price range for brews
• Inclination towards loyalty programs
• Things they dislike about existing breweries and what they expect to be improved

You can add as many data points as required to validate your business decision. The idea here is to display your deep understanding of the target audience and their needs, preferences, and expectations. This knowledge can help you to tailor your products & services to attract new customers.

4. Sales & Marketing Strategy

This is the segment where you outline the customer acquisition strategy of your brewery. Try to answer the following questions:

• What is your USP ?
• What are the different marketing strategies you will use?
• How do you intend to track the success of your marketing strategy?
• What is your CAC or customer acquisition cost?
• What is your marketing budget?
• What introductory promos and offers do you intend to provide for attracting new customers?

Let’s expand a bit on a few questions below:

What marketing channels do breweries use?

Marketing channels are ways of communication businesses use to attract customers. Logically, not all breweries use the same marketing channels. For example, a taproom that sells craft beer will most likely rely more on social media and signage vs. a regional brewery that only sells to resellers, restaurants, bars and other business customers (they will likely use a sales team instead, along with some paid media, print ads in specialized magazines, etc.).

See below a few examples of marketing channels that breweries typically use:

• Sales representatives (only breweries selling to businesses)
• PPC ads, Facebook ads, etc.
• Customer interaction through social platforms like Instagram, Facebook, etc.
• Email marketing
• Loyalty programs
• Word of mouth, recommendations

Of course, it’s not mandatory to use all channels. Instead, you can start by focusing on a few of them, and add others as you scale up later on.

Also, you must have a fair and nearly accurate estimate of your marketing budget. Failure to display a well-planned and adequate cash flow for advertising and marketing can lead to investors losing confidence. That’s because investors are fully aware that if adequate funds are not allocated for marketing, the business will be derailed before becoming a success.

What is your unique selling proposition?

In other words, how do you differentiate yourself vs. competitors? This is very important as you might need to win customers from competitors. A few examples of USPs are:

• Quality of beer products : your craft beer(s) may be of higher quality (raw materials r transformation) vs. your competitors’
• Location : your brewery may be located closer to your customers, reducing transport costs for your customers
• Partnerships : you may have partnered with famous brands, bars, restaurant chains or franchises your customers are fond of
• Price : your beer products (and/or food if you have a brewpub) may be cheaper vs. competitors
• Extra products / services : you may be the only brewpub in the area offering food to your customers, whilst all other competitors only offer taprooms

Your USP will depend on your business model, competitor analysis , target audience, and product. The idea is to speak to customers’ emotions and needs. Whatever your USP be, it should appeal to your potential customers and attract them. Plus, The USP you offer should be convincing enough for investors and lenders.

5. Management & People

You must address two things here:

• The management team and their experience/track record
• The organizational structure: different team members and who reports to whom?

a) Management

Small businesses often fail because of managerial weaknesses. Thus, having a strong management team is vital. Highlight the experience and education of senior managers that you intend to hire to oversee your brewery business.

Describe their duties, responsibilities, and roles. Also, highlight their previous experience and explain how they succeeded in their previous roles.

It is also important that you explain how their experiences and qualifications help you in implementing the brewery you are proposing. If they have specialized training, and experience (such as a certificate in brewing technology covering concepts like wort production, fermentation, etc.; brewmaster experience, etc.), add that information.

b) Organization Structure

Even if you haven’t already hired a brewer, head brewer (or brewmaster), tasting staff, tasting room manager, marketing personnel, quality control personnel, and other relevant staff members, you must provide a chart of the organizational structure defining the hierarchy of reporting.

6. Financial Plan

The financial plan is perhaps, with the executive summary, the most important section of any business plan for a brewery.

Indeed, a solid financial plan tells lenders that your business is viable and can repay the loan you need from them. If you’re looking to raise equity from private investors, a solid financial plan will prove them your brewery is an attractive investment.

There should be 2 sections to your financial plan section:

• The startup costs of your project (if you plan to start a new brewery, purchase new equipment, renovate your brewery, add a taproom to your brewery, etc.)
• The 5-year financial projections

a) Startup Costs

Before we expand on 5-year financial projections in the following section, it’s always best practice to start with listing the startup costs of your project. For a brewery, startup costs are all the expenses you incur before you open your brewery and start making sales . These expenses typically are:

• The brewing systems and other equipment
• The leasing deposit for the space (if you rent) or to buy the real estate (if you buy)

Logically, brewery startup costs vary significantly based on factors like the size of your brewery, its capacity (in barrels), its location, the quality of equipment, etc.

On average, it costs $158,000 to $340,000 to start a 2,000 barrel craft brewery.

Note that these costs are for illustrative purposes and may not be fully relevant for your business. For more information on how much it costs to open and run a brewery, read our article here .

b) Financial Projections

In addition to startup costs, you will now need to build a solid 5-year financial model for your brewery.

Your financial projections should be built using a spreadsheet (e.g. Excel or Google Sheets) and presented in the form of tables and charts in the business plan of your brewery.

As usual, keep it concise here and save details (for example detailed financial statements, financial metrics, key assumptions used for the projections) for the appendix instead.

Your financial projections should answer at least the following questions:

• How much revenue do you expect to generate over the next 5 years?
• When do you expect to break even?
• How much cash will you burn until you get there?
• What’s the impact of a change in pricing (say 15%) on your margins?
• What is your average customer acquisition cost?

You should include here your 3 financial statements (income statement, balance sheet and cash flow statement). This means you must forecast:

• The number of barrels you produce over time ;
• The number of beers (or barrels) you sell ;
• Your expected revenue ;
• Operating costs to run the business ;
• Any other cash flow items (e.g. capex, debt repayment, etc.).

When projecting your revenue, make sure to sensitize pricing, cost of raw materials (malt, hops, packaging, etc.) and your sales volume. Indeed, a small change in these assumptions may have a significant impact on your revenues and profits.

7. Funding Ask

This is the last section of the business plan of your brewery. Now that we have explained what your brewery business model is, what types of beer you sell and to whom (individuals vs. businesses), what’s your marketing strategy, etc., this section must now answer the following questions:

• How much funding do you need?
• What financial instrument(s) do you need: is this equity or debt, or even a free-money public grant?
• How long will this funding last?
• Where else does the money come from? If you apply for a SBA loan for example, where does the other part of the investment come from (your own capital, private investors?)

If you raise debt:

• What percentage of the total funding the loan represents?
• What is the corresponding Debt Service Coverage Ratio ?

If you raise equity

• What percentage ownership are you selling as part of this funding round?
• What is the corresponding valuation of your business?

Use of Funds

Any brewery business plan should include a clear use of funds section. This is where you explain how the money will be spent.

Will you spend most of the loan / investment in paying your employees’ salaries? Or will it cover mostly the cost for the lease deposit and the renovation?

Those are very important questions you should be able to answer in the blink of an eye. Don’t worry, this should come straight from your financial projections. If you’ve built solid projections like in our Brewery financial model template , you won’t have any issues answering these questions.

For the use of funds, we also recommend using a pie chart like the one we have in our financial model template where we outline the main expenses categories as shown below.

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Technology, business, finance, health, product reviews and so much more , what do i need to start a microbrewery in canada.

If there is no craft brewery in your town yet, but you love beer, are well versed in it, and know the best types and combinations of flavors, it’s time to think of establishing a business. The chances of success are much higher if you also know that such products will be in demand and have ideas and a desire to develop and try something new.

The number of people who consume natural products is increasing every day. Many useful substances are saved in natural beer, including nutrients, vitamins, proteins, and amino acids. Large industrial giants cannot meet this demand since a variety of additives are used in production to increase the shelf life of the drink. Owners of establishments can install a microbrewery right in a bar, restaurant, or cafe and offer their visitors delicious and natural beer every day. Or you can start brewing your own beer and doing retail, selling beer in a taproom or opening a cozy bar.

Where to Begin?

The process of transforming yourself into a good brewer takes time, investment, experience, and, most importantly, knowledge. It is worth taking online courses before starting your beer journey, but it is still better to go through real training. The advantage of such training programs (courses, schools) for an inexperienced beginner brewer is a great reasonable way to produce the first type of unique beer. With such training and practice, you can not just get acquainted with the modern technological process but also directly use professional equipment. A nice bonus is a certificate that you can use to decorate the space.

Business Plan

To create a successful brewery, it is very important to come up with a realistic and proper business plan. If you are looking for investor support, it is worth recording financials for at least three years as they always want to see not just a plan of action but facts. If you have the initial capital, such a plan will become a good basis for the future business. You can try to do it yourself, but to receive recommendations on legal issues, financial management, and attracting investments, it is best to contact specialists.

What about Expenses?

When organizing a brewery, it is necessary to take into account several areas that require investment. The first thing you cannot do without is the equipment itself.

You will need boilers, barrels, cooling systems, filters, pipes, pumps, cleaning equipment, canning or filling equipment (filling lines and/or keg washers and fillers). Do not forget about containers for storing and fermenting products. When choosing the last ones, it is better to take a look at the stainless steel tank . This option is also great for transportation. You can choose the size solely according to your needs, from 300 liters up to 1,000. Also, you will find additional systems, for instance, a cooling one. To save money, you can start by purchasing used equipment or renting it with a buyout option. Over time, as production increases, you will get your own equipment.

The next thing worth paying attention to is the costs of the premises. These, as a rule, include all possible nuances related to the placement, including rental costs, various types of inspections, re-equipment of the water supply system, reinforcement of the floor. Redevelopment of premises for production, sale, and visitor services may be required. Delivery and collection of equipment are also important. At the same time, the possible extension of beer manufacturing should be kept in mind.

Also, consider utility costs, possible business and property insurance, permits and licenses, special professional services (services of a brewing consultant, accountant, marketing, legal services), and much more that may arise specifically in your situation.

A good, high-quality, tasty beer should contain three main components. Brewer’s yeast helps in the production of ethyl alcohol from sugar wort. This stage in brewing is considered the key one. The quality of the yeast forms the properties of the finished product: taste, aftertaste, smell, and aroma.

Next comes malt – rye, wheat, barley. It is a type of cereal that is first soaked and then germinated and dried in the sun during the malting process. This ingredient directly affects the aroma, smell, taste, and color of the finished product. Basically, the brewing process is associated with barley malt.

Hops belong to the hemp family. They have been a traditional part of any beer recipe for centuries in a row. This component is responsible for the formation of foam and its stability, acts as an antiseptic, removes some of the unwanted proteins from the wort, and gives the beer a delicate aroma and light bitter taste.

To attract new consumers, it is worth thinking carefully about the design of the final product. Bottles, labels, and packaging play an important role for your brewery, and they should be pleasing to the eye. They will create an association with you, and your products will be recommended and bring you more profit. The originality of the design will be beneficial if it is easy to remember and it carries a little humor and brightness. There can be costs at this stage too if you need to work with a designer. But they might not be that high if you use the offer of young professional freelancers. At this stage, think over the concept as a whole because a small room can be used as a bar where people will come for a glass of aromatic and tasty drink. The interior can be designed so that the atmosphere is a little remindful of industrial production, which makes it special. Mini-brew boilers located in restaurants or bars are decoratively coated with copper and installed behind a glass partition in full view of the visitors.

Bottom Line

Having started brewing beer, a novice brewer joins a deal that is several thousand years old. To truly become a member of the respected caste of brewers, in addition to knowledge and money, you need to feel the brewing process, give it a piece of your own soul, and sincerely love your brainchild.

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How To Write a Brewery Business Plan

Tyler Martinez Author

Tyler Martinez

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 flocking to their local breweries to taste their seasonal wares. 15 years later, breweries have continued bringing in crowds of beer aficionados, and the  craft beer industry keeps growing .

Writing a Business Plan for Breweries

Many would-be brewery owners go into it as a passion project, perhaps inspired by experience working in craft breweries, the brewing industry, or in-home brewing. It’s a potentially lucrative and profitable, if complex, business model — and in order to keep operations in order from the very beginning, you need a strong brewery business plan.

Whether you're dreaming of an open-air beer garden, a brewing company closed to the public, an industrial taproom space with cans piled high, or just a restaurant space with onsite brewery equipment, starting a brewery requires a roadmap to guide you through every step of your venture, from development to distribution.

Why You Need a Brewery Business Plan

Breweries require a complex sequence of licenses, permits, leases, and financing just to get started. There’s a lot of moving pieces, from accounting to brewing beers to renting space to finding a  POS that works with complex brewery operations. A business plan will let you get all the details sorted while simultaneously acting as a way to entice potential partners and investors.

A business plan will also prompt you to consider the market for high-quality craft beers in your location and how your brewery restaurant will fit into that market. Are you offering a unique experience to customers or are you hoping to hold your own in a robust local craft brewery scene? What’s going to be your competitive advantage?

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.

Elements of a Brewery Business Plan

Executive summary.

The first section of the business plan is an executive summary, which is a concise introduction to the concept and goals of your brewery. Use this section to introduce key elements of your business, such as the vision for the product, your mission statement, key information about the brewery space, and the distribution market.

As you write the executive summary, imagine the investors and partners that you want this plan to attract. How might you catch their attention, get them interested in your concept, and convince them to keep reading? Craft breweries became extremely popular in the early 2010s, with new breweries opening all over the country. How will your successful brewery attract a unique share of the consumers or compete with other local brands?

Are you an experienced entrepreneur trying to invest in a microbrewery business? Or are you an experienced brewer and hospitality pro trying your hand at running your own brewery?

Company Overview

The company overview works with the executive summary to provide an introduction to the rest of your business plan, but the company overview is more practical than creative, covering the nuts and bolts of your business.

Use this section to define the type of brewery and restaurant combination you envision — are you opening a microbrewery? A brewpub? A brewery plus restaurant? Will you serve food or partner with food trucks onsite? Will you forego food and just provide bags of chips?

What will your location look like? Many convert their extra warehouse space into miniature arcades or provide lawn games like cornhole for guests to enjoy while they drink at the brewery. The focus is always on the brews, but offering an experience gets people to visit and stay awhile, increasing the brewery’s on-premises sales potential.

State what kind of legal structure your business will operate as — LLC? Sole proprietorship? Corporation? — and explain the proposed ownership structure and how your potential investors will fit within it.

Define your product, the brewing process, the supply chains you’ll rely on, and how your product will stand out in the somewhat bloated beer industry.

Consider including introductory information about roles you’ll need to fill, as well as your vision for the customer’s experience. You’ll also want to include information about potential customers, the demographics you hope to appeal to, and how you plan to reach them.

Include a summary of financial projections. Like any startup, you’ll be making educated guesses here, but try to cover all potential factors that could impact your income statements and cash flow statements in the first year and beyond.

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Team and Management

The staffing needs for your brewery are unique to the business you’re building, and the role you see yourself filling within the business. Are you a brewmaster who needs funding? Will you be an owner and manager, spending all your time doing hands-on work and managing employees? Or will you hire a GM and focus your attention on the financial side of things?

Consider, too, the staffing needs of a brewery or restaurant depending on the scale of your operation. You might start by brewing a couple of drafts in a warehouse and scale up – and need very few employees – or jump into a brewery and taphouse that requires a full management team, kitchen, and front-of-house staff.

There are so many types of breweries, and just as many team structures to go along with them. Explain how you plan to find and train your team, and what traits you’ll look for in the most indispensable roles.

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Sample Menu

Outline the kinds of brews you plan to craft and serve, and the kinds of food you’ll offer, if any. The combination of types of beers and types of food served are what will bring customers back time and time again, so use a sample menu to show investors what your brewery will offer. There are so many  types of beers to choose from, from lagers to IPAs , so choose your niche.

Consider building your beer and food menu on a theme: if you plan to brew mostly Belgian-inspired beers, you might consider accompanying them with crispy french fries with mayo, shrimp croquettes, mussels with fries, and waffles.

Discuss your pricing strategy and include prices on your sample menu to show potential investors how much you’ll be able to bring in on an average check.

Market Analysis: Target Market, Location, and Competition

A market analysis is crucial to prove your brewery will have what it needs to be successful. The market analysis is about three key factors: target consumer, location, and competition. Provide research-backed information in your market analysis to really impress potential investors or partners.

In 2021, the  US Brewers Association reported there were over 9000 breweries in the country, including over 3400 brewpubs, over 3800 taprooms, over 2000 microbreweries, and over 200 regional craft breweries.

Do a competitive analysis of your city or town: how many breweries of each kind exist within a reasonable radius? Are any very similar to the concept you plan to create? How will you improve on what they already do?

If there isn’t yet a local craft brewery in your area, is there clientele that would visit one? Are you in the middle of a vibrant craft brewer scene but have a unique product that will appeal to the established consumer base? Will you plan to collaborate with existing breweries?

Market trends vary too —  double IPAs have gone up and down and up again in popularity. What’s big now, and how will you stay ahead of trends?

Outline your target market, including the demographics you hope to appeal to, and how your location and product will help you reach them.

Brand and Marketing Plan

Marketing for your brewery includes more than just eye-catching label designs, and your potential investors and partners will want to know you’ve thought through how you’ll reach new customers — and keep them coming back. Which channels will you use in your brewery marketing strategy? Social media is important, and  email marketing can be a game-changer — how will you implement them?

Develop a coherent vision for your brand that both matches the spirit of your company’s values and will be attractive to your target customers. Plan to take advantage of social media to make your customers aware of your brand and craft a cohesive and memorable online presence.

Blue Mountain Brewery is a company based in Afton, VA, and they rent the inn and venue at their picturesque brewery. Their branding is bright and brimming with local flair, ensuring brand recognition and creating a cohesive aesthetic that can be translated to their product labels for distribution to the surrounding area.

Branded Graphics

One of the most exciting aspects of planning to market your brewery is working with designers to create graphics that convey your brand to potential investors and eventually customers. Think about how your logo will represent the ethos of your brewery and how it will influence the customer’s experience of your brand.

Even if you envision scaling up to regional or national distribution, don’t shy away from building a memorable, locally influenced brand. Beer aficionados across the country will love to collect your cans, especially if they clearly represent where the beer is made.

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Business Operations

The business operations section includes information about everything from the daily routine of the brewery to the chain of command and management structure. Consider including information about sales and inventory, your onsite seating plan, your  point of sale (POS) system , accounting, and the supply chain for your beer's ingredients.

Talk about your distribution plan: Some breweries opt to only sell their beer locally — like  Alchemist Beer in Stowe, Vermont where beer lovers travel to to buy their famous Heady Topper beer. Others make enough local craft beer to warrant national distribution in beer stores and bars.

A brewery is a complex business model: unlike restaurants, you’re not just selling food and drinks — you’re also producing the drinks en masse, from scratch. Outline the beer production process thoroughly, including the team members you’ll need, and explain how your brewing operation will fit into the rest of your day-to-day taproom operations.

The business operations section will act as the north star for your operations on a daily, weekly, monthly, and quarterly basis – don’t spare any details. This is the section you’ll fall back on to answer any questions from investors or partners.

Financing and Loans

Whether you’re starting a brewery based on your passion for great pilsners or because your friends convinced you to invest in opening a local brewery so they can hang out there, you’ll likely need to secure some additional funding to cover startup costs before you start bringing in revenue. It’s crucial to carefully consider your finances and prepare to apply for any necessary lines of credit or loans.

This  financing guide is a valuable resource: look through it to learn about funding options from brick-and-mortar banks, alternative loans, Small Business Association (SBA) loans, merchant cash advances, business lines of credit, crowdfunding, asking family or friends, commercial real estate loans, equipment financing, and purchase order funding. 

Once you have a concrete plan to fund your brewery, provide potential investors with information about other partners and detailed financial plans with projections of profit and expenses of your business. Provide ways to engage: do they want to be a part-owner, or just buy equity in the business? Can they provide a personal loan? Walk through how they might be able to help financially, and what they’d get in return.

Sales Forecasts and Operating Expenses

The operating expenses of a brewery include the costs of brewing, bottling, and kegging equipment, hops, grains, labor, insurance, licenses, rent, marketing, food — the list goes on, and should be balanced against your sales forecasts.

It's typical to include a break-even analysis in this section of your business plan, which compares the sales required to break even with the cost of expenses each month. Investors will be interested in the potential for profit and loss in order to assess the risk of contributing to your business, but a profit and loss statement for a business that isn’t open yet requires that you make some informed projections. 

A cash flow analysis shows investors that the company will be able to support itself without additional investments by detailing planned spending on labor, supplies, and operations. 

How to Present Your Brewery Business Plan

As you write and edit your plan, start memorizing the key points and takeaways so you're ready to talk about it at any time. Remember that the way you talk about your business should be tailored to the situation you find yourself in — an elevator pitch at a networking event, a full presentation with a slide deck, excel sheets, and accompanying binders at a formal meeting.

Send your business plan to investors and banks far and wide – put your concept and plan in the hands and minds of as many people as possible. 

Once you secure a meeting with a potential investor or partner, you’ll want a more detailed presentation that presents all the key elements of your business plan. Lean into the why of your business: how will your brews add to the beer landscape? How will your brewery impact the community?

It’s good to anticipate potential questions and prepare answers for questions you encounter for the first time. When networking, be honest and genuine, even if you don’t have a ready answer for each question that comes your way – investors will be interested in your charisma and honesty just as much as your ability to build a detailed plan.

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Related Brewery Resources

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How Much Do Breweries Make

Brewery Ideas and Concepts

Brewery Design Ideas

Brewery Equipment List

Brewery Floor Plans

Brewery Menu Ideas

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How to Make a (Good) Microbrewery Business Plan

➡️ Here I put a business plan sample (PDF) that I made at your disposal (not all pages are included in this sample).

An Introduction

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Industry Overview: Craft Breweries & Microbreweries

• ‹‹ Previous

Craft breweries and microbreweries produce beer in limited quantities when compared to large breweries (generally under 10,000 barrels per year) and usually distribute their beer within a limited geographic region.

Craft breweries often specialize in specific styles of beer, and focus on providing customers a superior product, using traditional brewing techniques. Certain craft breweries sell beer directly on their premises, and are called brewpubs. Craft breweries are known to develop clever marketing strategies with limited budgets in order to connect with their target markets.

Industry Overview

According to Agriculture and Agri-Food Canada in their report, The Canadian Brewery Industry , approximately 10 million Canadians drink beer and the sales of goods manufactured by the Canadian brewery industry in 2009 were worth $4,671.2 million. The Brewers Association of Canada states that beer brewed in Canada accounts for 1.2% of Canada’s GDP, 190,000 direct and indirect jobs and $4.3 billion in tax revenue. Approximately 13,000 people work directly for breweries in Canada according to the Brewers Association of Canada and they estimate that “employee salaries, national distribution and retailing networks and industry sales and marketing support generate $818 million in salaries and wages to brewery employees”. Canadian brewers also buy one-third of the malting barley that is sold domestically which contributes to other segments of the economy.

Industry Trends & Challenges

One challenge this industry faces is that there are no import duties on foreign beer. Another major challenge is that of increasing energy costs which can offset gains in a brewery's productivity. Water consumption is also a challenge for brewers as it can take five litres of water to produce a litre of beer. However, by reducing water use there is the potential for brewers to reduce their costs. Finally, in British Columbia many of the liquor laws have been seen as a hindrance to craft breweries success as they have prohibited breweries from establishing on-site lounges and selling their beers in their own pubs. These challenges may be becoming a thing of the past though as Vancouver has just passed changes to zoning laws which now allow breweries to set up lounges and serve beer.  

Below are some resources to help you get started on your business research:

Associations

Brewers Association of Canada Craft Brewers Association of British Columbia Brewing and Malting Barley Research Institute (BMBRI)

Magazines & Trade Journals

Beer Advocate Magazine Brewing Techniques Draft Magazine

Directories

B.C. Business Network Canadian Companies Capabilities Frasers ( Product and Services Search - Brewery ) ThomasNet ( Directory Search: Product/Service - Brewery ) BCBusiness Guide to Breweries Around B.C. (interactive map) 

Suggested Search Terms

• Beer -- Handbooks.
• Brewing -- Handbooks, manuals, etc.
• Brewing industry.
• Microbreweries.

Additional Resources

If you want to access more resources, the Craft Brewery / Microbrewery Accelerator Guide is designed to help prospective and existing brewery owners gather information for their secondary market research. The guide is broken down into four main sections that cover how to start your research, industry information, competitive information and customer information (depending on your needs you can spend as much or as little time as necessary in each section).

If you find that you need more guidance before starting your secondary research, check out our Business Research Basics Guide , it will help you focus on what types of information you will need to gather and why it is important.

PHOTO CREDIT: Beer Sampler , created by J R on October 9, 2009. Image made available under Attribution 2.0 Generic license . Last viewed on July 10, 2013.

PHOTO CREDIT: Granville Island , created by Hideyuki KAMON on February 6, 2009. Image made available under Attribution-ShareAlike 2.0 Generic license . Last viewed on July 10, 2013.

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Business Plan Resources for Breweries

I started with the Brewers Association in 2014. My goal is to engage with as many members as possible, help them maximize their membership benefits, and act as the resident resource-Sherpa to assist in navigating through the mountain of information.

In my free time I like to sip on IPAs and pilsners while playing bass loudly or petting my dogs. I openly welcome pup-pictures and all heavy/loud/noisy music suggestions.

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. Yet, there is a foundation to breweries, brewpubs, and taprooms alike, that is the common thread of all businesses. That foundation is a well-constructed business plan.

Learn How to Create and Maintain Your Business Plan

I’m often asked what business planning resources the BA provides, and I point members to our production statistics , benchmarking surveys , insight & analysis articles , and a myriad of Craft Brewers Conference (CBC)  presentations covering specific business-related topics. Additionally, Brewers Publications offers The Brewers Association’s Guide to Starting Your Own Brewery , which includes guidelines for business planning and a sample business plan. Despite all this information, though, I still hear questions about the root of the business plan – where to start and how to create one. So, I’ve compiled a handful of resources to help breweries create and maintain a business plan.

We all have preferences on how we digest educational materials. So, the information below comes in multiple formats from a variety of sources. These resources are helpful whether you are looking to create your first business plan or simply want to update your current one. A business plan is a living document that should be updated regularly, rather than a ‘one and done’ springboard for prospective businesses. This is by no means a comprehensive list of resources on this topic, as there are hundreds of them available. Rather, it’s a jumping off point for members who want to establish and expand their knowledge. These resources can help us establish and refresh business plans, in addition to highlighting components we wish to explore further.

Business Plan Resources:

• Writing Your Brewery Business Plan  is a step-by-step review of the necessary elements within a business plan and why those things are important.
• Successfully Planning, Starting and Operating a Nano Brewery  offers a broad overview of the planning process with highlights on fundamental considerations for both launching and growing a brewery.
• The Nuts & Bolts of Great Business Plans – An often cited (and very comprehensive) guide to the broader and finer points of creating your business plan. This 30-page PDF document is updated yearly and provides excellent details on the what and why of each section in the outline.
• The U.S. Small Business Administration (SBA) is a great general resource for businesses. They offer a step-by-step tool that explains each section of the business plan template, along with a place to input your specific business information along the way.
• SCORE , a nonprofit resource partner with the SBA, has a variety of resources geared toward creating business plans and starting small businesses. This includes a 60-minute webinar on One Page Business Plans , an on-demand Developing a Business Plan course , articles about business plans , and even mentorship opportunities .
• For those who prefer educational videos, BizPlanTemplate.com offers a free business plan template paired with a 10-minute tutorial explaining each section.
• If learning on the go is of interest, scribendi.com offers a very succinct podcast outlining How to Write a Business Plan . For those starting from scratch, this is a good primer for the deeper dive into more detailed templates.

Don’t Forget to Use Your Community

As a final note, I’d be remiss not to mention the Brewers Association Forum . This is an excellent place to ask questions and engage with fellow brewery owners as you create and revise your business plans. While each brewery (and therefore business plan) will be unique, there is much to be learned from those around us. I am constantly reminded of the community mindset amongst many breweries, and this a fantastic way to connect and share resources with one another.

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Explore the Brewers Association's most high-value resources and tools in one click. Need some additional guidance? Click here to setup a resource meeting with Graham, the BA's Engagement Coordinator.

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How To Write a Business Plan for Microbrewery in 9 Steps: Checklist

By alex ryzhkov, resources on microbrewery.

• Financial Model
• Business Plan
• Value Proposition
• One-Page Business Plan
• SWOT Analysis
• Business Model
• Marketing Plan
• Bundle Business Plan & Fin Model

Are you a beer lover with dreams of starting your own microbrewery? You're not alone! The craft beer industry is booming in the US, with consumers showing a growing preference for locally sourced and artisanal products. According to the Brewers Association, there were over 8,000 craft breweries operating in the US in 2020, contributing $82.9 billion to the economy. If you're ready to dive into this exciting industry, here's a checklist to help you write a business plan for your microbrewery in 9 easy steps.

Step 1: Identify your target market and conduct market research.

Step 2: Assess the competition and analyze market trends.

Step 3: Define your brewery's unique selling proposition.

Step 4: Determine the location and research local regulations and permits.

Step 5: Develop your business model and financial projections.

Step 6: Source funding and secure necessary capital.

Step 7: Assemble a team of experts and professionals.

Step 8: Create a branding and marketing strategy.

Step 9: Outline the operations and logistics of your microbrewery.

By following these steps and creating a well-rounded business plan, you'll be well on your way to opening a successful microbrewery that caters to beer enthusiasts and creates a welcoming community hub. So grab a pint, gather your ideas, and let's get started on this exciting journey!

Identify Your Target Market And Conduct Market Research

When starting a microbrewery, one of the first steps you need to take is identifying your target market and conducting thorough market research. This essential step will help you understand the demand for craft beer in your area and identify your potential customer base. By understanding your target market, you can tailor your products and marketing strategies to meet their specific needs and preferences.

Here are some important factors to consider when identifying your target market:

• Demographics: Consider the age, gender, income level, and interests of your potential customers. Are they primarily young professionals, beer enthusiasts, or locals looking for a new hangout spot?
• Geographic Location: Determine the area in which your microbrewery will operate. Consider both the local population and the number of tourists or visitors your area attracts.
• Market Trends: Keep up with the latest market trends and consumer preferences in the craft beer industry. This will help you identify potential opportunities and stay ahead of the competition.
• Consumer Behavior: Understand how your target market makes buying decisions. What influences their beer choices? Is it the taste, the branding, or the overall experience?

Tips for conducting market research:

• Survey potential customers to gather insights on their preferences and habits.
• Analyze data from industry reports, local breweries, and online resources to gain a deeper understanding of the market.
• Visit competitor brewpubs or taprooms to observe their target audience and gather insights on their offerings and customer experience.
• Engage with local beer enthusiasts and attend beer festivals or events to network and gather feedback on your potential business.

By conducting thorough market research, you can gather valuable insights that will shape your business strategy and help you create a microbrewery that resonates with your target market. Remember, understanding your customers is key to success in the craft beer industry.

Assess The Competition And Analyze Market Trends

When starting a microbrewery, it is crucial to assess the competition and analyze market trends. Understanding the landscape in which you will be operating will provide valuable insights and help you make informed decisions for your business. Here are some key steps to follow:

• Research Local Competitors: Identify other microbreweries in your area and study their offerings, target market, pricing, and customer feedback. This will give you a sense of the competition you will be facing and help you differentiate your brewery.
• Analyze Consumer Preferences: Dive deep into market trends and consumer preferences within the craft beer industry. Look at factors such as popular beer styles, flavors, and packaging formats. This will help you align your offerings with the demands of your target market.
• Identify Market Gaps: Look for gaps in the market or untapped customer segments that you can cater to. This could involve experimenting with unique flavors, offering niche beer styles, or catering to specific dietary preferences like gluten-free or low-alcohol options.
• Monitor Pricing Strategies: Pay attention to the pricing strategies of your competitors. This will help you establish competitive pricing for your own products while ensuring profitability.
• Study Distribution Channels: Understand how other microbreweries distribute their products and establish relationships with retailers, bars, and restaurants. This will help you determine the most effective distribution strategy for your own brewery.
• Visit local microbreweries and taprooms to experience their offerings firsthand and observe customer behavior.
• Participate in industry events, such as beer festivals and craft beer conferences, to network with other brewers and gain insights into emerging trends.
• Stay updated with industry publications, online forums, and social media groups to stay abreast of the latest market trends and developments.

By thoroughly assessing the competition and analyzing market trends, you will be well-equipped to position your microbrewery in a unique and compelling way. This knowledge will guide your decision-making process and help you create a successful business plan.

Define Your Brewery's Unique Selling Proposition

Defining your brewery's unique selling proposition (USP) is crucial in setting yourself apart from the competition and attracting your target audience. Your USP is the distinctive factor that makes your microbrewery stand out and gives customers a compelling reason to choose your craft beer over others. Here are some key steps to help you define your brewery's USP:

• Identify your niche: Start by identifying a specific niche or focus for your brewery. This could be a particular beer style, ingredient, or brewing technique that sets you apart.
• Highlight your quality and craftsmanship: Emphasize the quality and craftsmanship of your brews. Use high-quality ingredients, pay attention to detail in the brewing process, and consistently deliver exceptional taste.
• Showcase your local and artisanal approach: Capitalize on the growing trend of locally sourced and artisanal products. Highlight your connection to the local community, use locally grown ingredients when possible, and promote the unique flavors of your region.
• Focus on the taproom experience: Taprooms and brewpubs are known for providing an inviting atmosphere for customers to enjoy craft beers. Enhance the experience by offering cozy seating, knowledgeable staff, and a friendly environment that encourages interaction.
• Create innovative and unique flavors: Experiment with different flavors, ingredients, and brewing techniques to create beers that are distinct and memorable. Be open to customer feedback and continuously refine your offerings.
• Research your competition to understand their USPs and find ways to differentiate yourself.
• Survey your target market to get insights on what they value in craft beer and what might attract them to your microbrewery.
• Consider collaborating with local businesses or hosting events that align with your USP to further enhance your uniqueness.

By defining your brewery's USP, you can effectively position yourself in the market, attract the right customers, and build a loyal following for your microbrewery.

Determine The Location And Research Local Regulations And Permits

Choosing the right location for your microbrewery is critical to its success. You need to find a spot that's accessible to your target market and aligns with your business model. Conduct thorough research on the demographics, foot traffic, and nearby competition to make an informed decision.

Once you've identified potential locations, it's crucial to understand the local regulations and permits required to operate a microbrewery in that area. This includes obtaining the necessary licenses for brewing, selling alcohol, and serving food. Researching and complying with these regulations will help you avoid costly delays, fines, or even being shut down.

• Contact the local zoning department or planning commission to understand if your chosen location is zoned for a microbrewery.
• Review the specific regulations regarding brewing, storing, and serving alcohol in the area to ensure you're in compliance.
• Check if there are any restrictions on operating hours or noise levels that may impact your business.
• Research the application process and timeline for obtaining the necessary permits and licenses, as well as any associated costs.
• Consider consulting with a legal professional or industry expert to navigate the complex regulatory landscape and ensure a smooth start to your microbrewery.

By thoroughly researching the location and understanding the local regulations and permits, you can position your microbrewery for success and minimize potential obstacles along the way.

Develop Your Business Model And Financial Projections

Developing a solid business model and financial projections is essential for the success of your microbrewery. It serves as a roadmap for your operations and helps you make informed decisions about the future of your business. Here are some key steps to follow:

• 1. Determine your revenue streams: Identify the different ways your microbrewery will generate income. This may include sales from the taproom, merchandise, tours, events, and potentially wholesale distribution.
• 2. Estimate your costs: Evaluate the expenses involved in operating your microbrewery, including brewing equipment, ingredients, utilities, permits, labor, marketing, and packaging. Consider both fixed costs (rent, insurance) and variable costs (ingredients, utilities).
• 3. Calculate your pricing strategy: Based on your costs and desired profit margin, determine the pricing for your craft beer, food options, merchandise, and other offerings. Ensure the prices are competitive yet profitable.
• 4. Project your sales volume: Analyze market research and competition to estimate the demand for your craft beer. Consider factors such as seasonality, local demographics, and consumer preferences.
• 5. Create financial projections: Develop a comprehensive financial plan that includes forecasts for revenue, expenses, profits, and cash flow over a specified period (typically 3-5 years). Use tools such as spreadsheets or specialized software to project your financials.
• Regularly review and update your financial projections to reflect changing market conditions and business performance.
• Consider seeking advice from a financial consultant or accountant experienced in the craft beer industry to ensure accuracy and reliability of your projections.
• Research and understand the tax implications and regulations related to the brewing industry to avoid any surprises or compliance issues.

Developing a robust business model and financial projections requires careful research, analysis, and attention to detail. By taking the time to outline your revenue streams, estimate costs, calculate prices, project sales volume, and create financial forecasts, you will have a solid foundation for your microbrewery's success.

Source Funding And Secure Necessary Capital

Securing funding is a crucial step in turning your microbrewery dream into a reality. To ensure the financial sustainability and success of your business, you need to carefully consider your funding options and create a solid plan for securing the necessary capital.

1. Determine your funding needs: Before approaching potential investors or lenders, it's essential to have a clear understanding of how much capital you will require. Calculate your startup costs, including equipment, leasehold improvements, licensing fees, and initial working capital. It's also important to account for ongoing operating expenses until your brewery gains traction and starts generating sustainable revenue.

2. Explore financing options: There are various funding sources available for microbreweries, including traditional bank loans, Small Business Administration (SBA) loans, crowdfunding platforms, and private investors. Each option comes with its own advantages and considerations, so research and compare the terms, interest rates, repayment schedules, and eligibility criteria associated with each alternative.

• Consider leveraging your personal savings or assets to invest in your microbrewery. This demonstrates your commitment and could make potential lenders or investors more inclined to support your venture.
• Prepare a comprehensive business plan and financial projections to present to potential funders. This will showcase your understanding of the market, your brewery's unique selling proposition, and your ability to generate sustainable revenue.
• Network with other professionals in the brewing industry to potentially find angel investors or venture capitalists who specialize in funding microbreweries. Attend industry events, join brewing associations, and connect with local craft beer enthusiasts.

3. Create a compelling investment proposal: When seeking funding, you need to convince potential investors or lenders that your microbrewery is a sound investment. Craft a professional and persuasive investment proposal that clearly articulates your business model, financial projections, target market, competitive advantages, and growth strategies. Be prepared to answer questions and address any concerns or risks associated with your industry or business.

4. Build relationships and negotiate: When approaching potential funders, focus on building long-term relationships rather than simply asking for money. Attend industry conferences and events, connect with local investors, and establish a solid network of supportive contacts. Take the time to understand your funders' interests, needs, and expectations, and tailor your pitch accordingly. Be prepared to negotiate terms and seek legal advice to ensure any agreements protect your interests and align with your long-term goals.

Securing funding for your microbrewery may require time and effort, but with a well-prepared plan, determination, and a compelling pitch, you can increase your chances of obtaining the necessary capital to launch and grow your business.

Assemble A Team Of Experts And Professionals

Building a successful microbrewery requires a team of knowledgeable and experienced individuals who can contribute their specialized skills. Assembling a team of experts and professionals is crucial in ensuring the smooth operation and sustainable growth of your microbrewery. Here are some key roles and skills to consider:

• Brewmaster: Hire a skilled brewmaster who has extensive knowledge of the brewing process, recipe development, and quality control. A brewmaster will be responsible for maintaining the consistent taste and quality of your unique craft beers.
• Production Manager: A production manager will oversee the day-to-day brewing operations, ensuring that the production targets are met efficiently, and managing the inventory of raw materials.
• Sales and Marketing Manager: A sales and marketing manager will help promote your microbrewery's taproom, events, and merchandise, attracting customers and generating revenue. They should have a deep understanding of the craft beer industry and be able to develop effective marketing campaigns.
• Chef or Food Coordinator: If you plan to offer simple food options at your taproom, hiring a chef or food coordinator who can create delicious and complementary menu items is essential. They will be responsible for menu planning, sourcing ingredients, and maintaining a high level of food quality.
• Finance and Accounting Professional: Managing the financial aspects of your microbrewery is crucial for its long-term viability. Hiring a finance and accounting professional can help with budgeting, cash flow management, tax compliance, and financial analysis.
• Consider hiring individuals with previous experience in the craft beer industry, as they will bring valuable industry insights and networks.
• Look for team members who are passionate about craft beer and share your vision for creating a local community hub.
• Don't underestimate the importance of strong communication and teamwork skills in your team members.
• Consider outsourcing certain functions, such as legal or HR services, to experts if it's not feasible to hire them as full-time employees.

By assembling a team of experts and professionals who are committed and knowledgeable, you can ensure the overall success of your microbrewery. Each team member will contribute their expertise to different aspects of your business, helping you create exceptional beer, attract customers, and achieve your financial goals.

Create A Branding And Marketing Strategy

A strong branding and marketing strategy is crucial for the success of your microbrewery. It will help you establish a unique identity, attract customers, and build a loyal following. Here are some important steps to consider:

• Define your brand: Clarify your brewery's mission, values, and personality. Determine what sets you apart from competitors and how you want to be perceived by your target audience. This will guide all aspects of your branding and marketing efforts.
• Create a compelling brand story: Craft a story that tells the story of your brewery, its founders, the brewing process, and the passion behind your craft. This will resonate with customers and help create an emotional connection.
• Design a memorable logo and visual identity: Your logo and visual identity should reflect your brand's personality and values. Hire a professional designer to create a visually appealing and cohesive identity that will attract attention and leave a lasting impression.
• Develop a consistent brand voice: Determine the tone and voice you want to use in your marketing communications. Whether it's casual and friendly or more formal and informative, consistency is key to building brand recognition and trust.
• Utilize online and social media platforms: Establish a strong online presence through a user-friendly website and active presence on social media platforms. Engage with your audience, share behind-the-scenes content, and promote your events and new releases.
• Implement targeted marketing campaigns: Identify the most effective channels to reach your target audience, whether it's through print ads, online advertising, promotional events, or collaborations with local businesses. Develop creative and compelling campaigns that highlight your unique selling proposition and attract new customers.
• Consider partnering with influencers or local organizations to expand your reach and exposure.
• Offer special promotions or incentives to encourage customer loyalty and repeat business.
• Engage in community events and sponsorships to strengthen your brand's presence and connections.
• Regularly gather customer feedback and adapt your branding and marketing strategy accordingly.

Outline The Operations And Logistics Of Your Microbrewery

Once you have identified your target market, analyzed the competition, defined your unique selling proposition, determined the location, developed your business model, secured funding, assembled a team, and created a branding and marketing strategy, it's time to outline the operations and logistics of your microbrewery.

1. Production and Brewing Process:

• Specify the types of beers you plan to produce and their recipes.
• Outline the brewing equipment and infrastructure needed.
• Prepare a production schedule to ensure consistent supply.
• Establish quality control and testing procedures.

2. Inventory Management:

• Create a system to manage ingredient inventory and ensure timely reordering.
• Track finished beer inventory to avoid stockouts or excess stock.
• Implement a proper storage and rotation system.

3. Taproom Operations:

• Design an inviting and functional layout for your taproom.
• Establish operating hours and determine staffing requirements.
• Define a pricing strategy for your beers and food options.
• Develop a system for ordering, serving, and payment processing.
• Train your staff to provide excellent customer service and educate customers about your beers.
• Consider implementing a loyalty program to reward frequent customers.

4. Food Options:

• Decide on the food offerings that complement your beers.
• Source local and fresh ingredients to create a unique menu.
• Establish relationships with trusted suppliers or consider in-house food production.

5. Tour and Event Management:

• Develop a schedule and guidelines for brewery tours.
• Organize events such as beer tastings, special releases, or themed nights.
• Manage reservations, ticket sales, and event logistics.
• Promote your events through social media, local partnerships, and email newsletters.
• Consider collaborating with other local businesses or breweries to attract a wider audience.

6. Regulatory Compliance:

• Ensure your microbrewery complies with all local, state, and federal licensing and permitting requirements.
• Understand and adhere to regulations related to production standards, labeling, and packaging.
• Stay informed about any changes or updates to relevant laws and regulations.

7. Supply Chain Management:

• Establish relationships with reliable suppliers for ingredients and brewing equipment.
• Negotiate favorable pricing and terms with suppliers.
• Monitor and analyze supplier performance to ensure timely and quality deliveries.

8. Health and Safety:

• Develop and implement health and safety protocols for brewery operations and taproom.
• Train staff on proper handling and storage of hazardous materials.
• Regularly inspect and maintain equipment to prevent accidents or health risks.

9. Waste Management:

• Create a waste management plan to minimize environmental impact.
• Implement recycling initiatives for spent grains, packaging materials, and other waste.
• Comply with local regulations for waste disposal and recycling.

By outlining the operations and logistics of your microbrewery, you can ensure smooth and efficient day-to-day operations while delivering an exceptional experience to your customers.

In conclusion, writing a business plan for a microbrewery requires careful consideration and research. By following the nine steps outlined in this checklist, you can lay a solid foundation for your microbrewery and increase your chances of success. By identifying your target market, analyzing the competition, defining your unique selling proposition, and securing necessary funding, you can position your microbrewery as a thriving community hub that offers high-quality, locally sourced craft beer. The key is to create a comprehensive plan that outlines your operations, marketing strategy, and financial projections, while also assembling a team of experts and professionals to support your venture. By doing so, you can navigate the challenges of the microbrewery industry and stand out in a crowded market.

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How to Start a Microbrewery in Ontario

Helping Canadian Businesses Get Licences, Stay Onside And Resolve Their Legal Challenges.

Starting a microbrewery in Ontario can be an exciting and rewarding venture. The craft beer industry in the province has experienced a significant rise in recent years, making it an opportune time to enter the market. However, before embarking on this journey, it is essential to have a thorough understanding of the microbrewery business and the key elements that contribute to its success.

Understanding the Microbrewery Business

The Rise of Craft Beer in Ontario

Craft beer has seen a surge in popularity across Ontario in recent years. Consumers are increasingly seeking unique and flavorful beer options, creating a demand for locally brewed craft beer. This growing interest in craft beer provides an excellent opportunity for aspiring microbrewery owners to enter the market and carve out a niche for themselves.

Key Elements of a Successful Microbrewery

In order to thrive in the microbrewery industry, several key elements must be considered. First and foremost, it is essential to have a passion for brewing and a commitment to producing high-quality beer. Microbreweries are known for their dedication to craftsmanship and attention to detail, so aspiring owners must be willing to invest the time and effort required to create exceptional brews.

Moreover, having a solid business plan is crucial. This includes defining your target market, understanding your competition, and identifying your unique selling proposition. Crafting a well-thought-out business plan will not only help you secure funding but also provide a roadmap for success.

Understanding the Market

When starting a microbrewery, it is important to have a deep understanding of the market. Researching consumer preferences and trends will help you identify opportunities and develop products that resonate with your target audience. Consider conducting surveys or focus groups to gather valuable insights into what beer enthusiasts are looking for in a craft beer.

Additionally, understanding the competitive landscape is essential. Take the time to study other successful microbreweries in your area and beyond. Analyze their branding, product offerings, and marketing strategies. This knowledge will help you differentiate your microbrewery and position it uniquely in the market.

Investing in Quality Ingredients

One of the hallmarks of a successful microbrewery is the use of high-quality ingredients. From malt and hops to yeast and water, each component plays a crucial role in the flavor and character of the beer. As an aspiring microbrewery owner, it is important to source the best ingredients available to ensure the excellence of your brews.

Consider establishing relationships with local farmers and suppliers who can provide you with fresh, organic ingredients. This not only supports local businesses but also allows you to create unique and distinctive flavors that set your microbrewery apart from the competition.

Creating an Engaging Taproom Experience

While the quality of the beer is paramount, creating an inviting and engaging taproom experience can greatly enhance the success of your microbrewery. A well-designed taproom can attract customers, encourage repeat visits, and foster a sense of community among beer enthusiasts.

Invest in comfortable seating, stylish decor, and a friendly and knowledgeable staff. Consider offering brewery tours and tastings to educate customers about the brewing process and the unique qualities of your beers. Additionally, hosting events such as live music performances or trivia nights can further enhance the overall experience and keep customers coming back for more.

Marketing and Promotion

Effective marketing and promotion are crucial for the success of any business, and microbreweries are no exception. Develop a comprehensive marketing strategy that includes both online and offline tactics to reach your target audience.

Utilize social media platforms to showcase your brews, engage with customers, and promote upcoming events or special releases. Collabourate with local restaurants and bars to feature your beers on their menus or host tap takeovers. Consider participating in beer festivals and competitions to gain exposure and build brand recognition.

Starting a microbrewery is an exciting and challenging endeavor. By focusing on quality, market understanding, ingredient sourcing, taproom experience, and effective marketing, aspiring microbrewery owners can position themselves for success in the thriving craft beer industry. With dedication, passion, and a commitment to excellence, the possibilities for growth and recognition are endless.

Legal Requirements for Starting a Microbrewery in Ontario

Obtaining the Necessary Licenses and Permits

Before starting a microbrewery in Ontario, it is important to navigate the necessary legal requirements. This includes obtaining the required licenses and permits from the Alcohol and Gaming Commission of Ontario (AGCO). These licenses and permits may include a manufacturer’s license, a retail authorization , and a license to sell beer for on-site consumption.

Understanding Ontario’s Alcohol Laws

Familiarizing yourself with Ontario’s alcohol laws is crucial for operating a microbrewery in the province. Ontario follows a regulated system for alcohol distribution, including the Beer Store and the LCBO . Understanding the regulations surrounding distribution and retail sales will help you navigate the industry more effectively and ensure compliance with the law.

Crafting Your Business Plan

Defining Your Brewery’s Concept

One of the first steps in starting a microbrewery is defining your brewery’s concept. This involves determining the type of beer you want to produce, the target market you want to cater to, and the brand image you want to portray. Understanding your niche and creating a unique brand identity will set you apart from the competition and attract loyal customers.

Market Research and Competitive Analysis

Thorough market research and competitive analysis are essential to understand the industry landscape and identify opportunities for growth. Analyzing consumer preferences, market trends, and competitor strategies will enable you to position your microbrewery effectively and make informed business decisions.

Financial Projections and Funding Options

Developing realistic financial projections and exploring funding options is crucial when starting a microbrewery. Calculate your startup costs, including equipment, supplies, licensing fees, and marketing expenses. Consider seeking financing through banks, investors, or government funding programs specifically tailored to the craft beer industry.

Finding the Perfect Location

Factors to Consider When Choosing a Location

The location of your microbrewery plays a significant role in its success. Consider factors such as foot traffic, proximity to potential customers, accessibility, and available space for expansion. Additionally, be aware of local zoning regulations that may impact the establishment of a brewery in a particular area.

Zoning Laws for Breweries in Ontario

Understanding the zoning laws for breweries in Ontario is essential to ensure you can legally operate in your chosen location. Consult with local authorities and review zoning regulations to ensure compliance and avoid any potential setbacks in the future.

Equipment and Supplies

Essential Brewing Equipment

Investing in high-quality brewing equipment is critical for producing top-notch beer. Ensure you have the necessary equipment, such as brewing kettles, fermentation tanks, a cooling system, and bottling or canning equipment. Proper maintenance and regular upgrades will help maintain consistency and quality.

Sourcing Quality Ingredients

To create exceptional beer, sourcing quality ingredients is essential. Establish relationships with reliable suppliers who provide fresh grains, hops, yeast, and other necessary ingredients. Emphasize the importance of using local ingredients whenever possible to support Ontario’s agricultural industry and promote a sense of community.

Starting a microbrewery in Ontario requires careful planning, a passion for brewing, and a commitment to excellence. By understanding the microbrewery business, meeting legal requirements, crafting a solid business plan, finding the perfect location, and investing in quality equipment and supplies, you can successfully embark on this exciting entrepreneurial journey.

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How to Write a Brewery Business Plan + Free Sample Plan

Makenna Crocker

8 min. read

Updated February 7, 2024

Free Download:  Sample Brewery Business Plan Template

Are you captivated by the craft of brewing beer? Enticed by the idea of making a living pouring your own beers for a crowd of enthusiasts? 

Sales of craft beer in the United States have continued to rise despite a slight downtown in overall beer sales, according to industry statistics. But to transition from craft beer aficionado to profitable brewery owner, you need more than just a robust ale — you need a solid business plan.

Need more guidance? Download our free sample brewery business plan .

Creating a detailed business plan is an indispensable step in your entrepreneurial journey.

In this article, we’ll tap into the process of writing a brewery business plan, helping you navigate from market research to financial forecasts and beyond.

• Why write a brewery business plan?

Starting a brewery without a business plan is like brewing without a recipe — risky and unpredictable. The plan is where you take stock of your market opportunity, assess the competition, document your day-to-day operating needs, and more.

But it’s more than a document to lay out your vision and objectives. You’ll need a clear, comprehensive business plan if your vision hangs on securing a bank loan or getting an outside investor to fund you .

They need evidence that you understand the market, have a sound financial strategy , and a plan to grow sustainably .

Without a business plan, you’re more likely to misjudge your inventory needs.

You might miss an opportunity to pivot based on changing tastes among customers or lose sight of tactics to set yourself apart from competitors in a crowded industry. 

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• 1. Research the market

The competition you’re likely to face from other brewers reinforces the importance of understanding your position in the market. Especially if you’re starting a new brewery business in a larger, urban area, you’ll need to devise a strategy for entering and growing within that market.

You can start simple. Visit some of those breweries in your geographic area. What sets the popular ones apart?

Be sure to talk to customers as well.

You can also gather insights from your competitors’ social media presence and gauge how customers are interacting with them online. You should also show that you understand broader trends in the craft beer industry, such as the seasonal popularity of different beer styles.

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.)
• Food offerings (some states legally require breweries to provide food)

Surround yourself with the community you plan to serve to really get an idea of what excites and draws in local beer enthusiasts. Notice the kind of beer they offer, how they market their products, and the type of people that tend to enjoy what they have to offer.

Looking at your competition isn’t about trying to copy them. It’s about understanding what is already offered and determining how you can ultimately stand out.

Define your target market

Now that you’ve compiled your market research, it’s time to zoom in on the demographics of your clientele.

Are the people frequenting breweries in your area mostly younger, like college students? Or maybe they tend to be workers looking for a fun afternoon out, or tourists stopping by after taking in the main attractions in your area?

Identifying your target market is not just about knowing who will be walking through your doors, but understanding their preferences and what causes them to choose you over your competitors. Doing this effectively requires considering the demographics of your potential customers:

• Occupations

And their psychographic characteristics:

Are your potential customers seasoned beer experts or casual drinkers? Do they value a broad selection, or would they prefer locally sourced and sustainable ingredients?

Defining these characteristics allows you to tailor your brand’s voice, marketing strategies, and even your beer selection to resonate with your desired audience.

• 2. Create an operational plan

The heart of your brewery business lies in its day-to-day operations. Begin with detailing the brewing schedules, capturing the intricacies of beer production, and then customer service operations.

Your operations plan should extend beyond brewing. Include managing supply chains , maintaining brewing equipment, and ensuring a smooth workflow in areas like marketing, sales, and distribution. Address the staffing plan too, outlining roles, responsibilities, and the team structure necessary to keep the brewery running smoothly.

As you navigate through these operational aspects, it’s important to keep in mind the broader picture: stay updated with regulations and compliance standards , but more importantly, ensure these guidelines are seamlessly integrated into your daily operations.

Your operational plan should paint a comprehensive picture of how your brewery functions on a daily basis, highlighting the systems and processes that drive its success.

• 3. Market your brewery

Even if you have the most flavorful beer, without the right marketing, nobody will know it exists.

You need to craft a marketing strategy as carefully as you do your beer. Utilize both traditional methods, like:

• Hosting beer release parties
• Local partnerships
• Advertising
• Loyalty programs

And digital tactics, such as email marketing and engaging with your community on social media , to spread the word about your brewery.

Don’t forget to look at competitors’ presence online as well. How they engage with their followers on social media and what online reviews say will tell you a lot.

Consider these marketing tips:

Develop a strong brand.

Your brewery’s brand should encapsulate what you stand for and what you offer that no one else does. Having a consistent theme across all aspects of your business, from the design of your logo and labels , to the interior of your brewery and the tone of your communication , will help solidify your brand. 

Example: If your brewery focuses on organic ingredients, this should be clear in your branding, and your marketing materials should educate customers on the benefits of organic beer.

Engage through events 

Events are a practical way to bring people to your brewery and get them talking about your beer. Consider planning events like these that are aligned with your brand:

• Beer release parties
• Homebrew competitions
• Local music nights

If you have a brewery that prides itself on being family-friendly, consider hosting family-oriented events like game nights. Events like these can not only attract regular customers but also create opportunities for social media sharing and word-of-mouth marketing.

Build a digital presence

A well-designed website is crucial for a positive online presence , providing information on your beers, the story of your brewery, and details about visiting or touring. Make your website easy to navigate and update it with the latest news about your products and events.

Use social media platforms to connect with your audience by sharing news, responding to customer feedback, and promoting upcoming events.

Regular updates and active engagement on platforms like Instagram and Facebook can help maintain your customers’ interest and encourage them to visit your brewery or try your beers.

• 4. Financials and pricing

To run a sustainable brewery operation, you have to do much more than just craft the perfect beers — your business has to be financially viable. A strong financial plan lays out a roadmap for turning your dream into a financially successful reality.

Begin by estimating your startup costs , considering everything from brewing equipment to licensing fees.

Appropriate pricing of your beers is crucial for business profitability – it’s a balancing act that involves setting a price that covers production costs and generates profit while also being attractive enough to keep customers from choosing competitors.

When penciling out your financial plan, remember:

• Cost Analysis: Know the cost of your ingredients and production to price your beers profitably.
• Sales Projections : Use your market research to forecast your sales. Be realistic, but don’t forget to plan for growth.
• Regular Reviews: Keep an eye on your financial health by reviewing your costs and prices regularly , ensuring your brewery remains profitable.
• 5. Set milestones and goals

Establishing clear milestones and specific goals is important for your brewery’s success. Your short term, three-month goals might include:

• Finalizing your beer menu
• Selling your first batch
• Hosting a successful grand opening

These early goals focus on launching your operations and establishing your brand in the local market.

Looking further out, your three-year objectives could involve more ambitious goals like:

• Reaching a certain production milestone
• Expanding your distribution to multiple states
• Opening a second taproom

Long-term goals should also include financial benchmarks, like achieving a break-even point and possibly hitting specific revenue targets .

For example: By the end of the first quarter, you might hope to have a solid customer base and consistent foot traffic with regular events driving sales.

After three years, your goals could shift toward sustainability and growth, like implementing a barrel-aging program or securing a spot in regional beer festivals. Milestones like these not only chart a path for growth but also help in measuring the health of your business.

Download your free brewery business plan template

If you’re ready to start your own brewery business, you can download our free brewery business plan template from our library of over 550 sample business plans . Get started today, and discover why businesses that plan grow 30% faster than those that don’t.

Makenna Crocker is the Marketing Specialist at Richardson Sports. Her work focuses on market and social trends, crafting gripping and authentic content, and enhancing marketing strategy to foster stronger B2B and B2C relationships. With a master’s degree in Advertising and Brand Responsibility from the University of Oregon, she specializes in generating a strong and responsible brand presence through content that positively influences and inspires others.

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Key Elements of a Brewery Business Plan

Whether you’re in the initial phases of starting a brewery or looking for expansion opportunities to grow your brewery’s footprint, a business plan can help you get there. The business plan is a written document that outlines every detail of your brewery business. It includes goals, products and inventory, organizational structure, sales, accounting, and more.

Before hitting the ground running, it’s important to understand where your business sits currently. Then create a plan for what you want to achieve over the next few years. A business plan not only allows you and your team to be on the same page but also offers a look behind the curtain for potential investors or loan providers you might be considering for additional funding .

Keep in mind that your business plan shouldn’t be set in stone. As your brewery grows, you may need to tweak and pivot your growth plans — and that’s alright! Think of your brewery’s business plan as a living document that needs to be updated annually to align with your growing company.

As you navigate this guide, fill out and share this free business plan worksheet to set goals for your brewery in stone.

Table of contents

Executive summary, company description & analysis, market analysis, organizational structure, product inventory, marketing and sales, funding request, financial projections, pro tip: stick to your brewery’s business plan with business management software, business decisions, what to include in your brewery business plan.

When crafting your brewery’s business plan, there are a few elements that should always be included. But it’s important to remember that while there are general templates to follow, your business plan is for your brewery. Which means you can customize it however you see fit.

A few sections you should consider including in your brewery business plan are: 

Every business plan should begin with an executive summary. This provides a high-level overview of your brewery’s history, mission, team, location(s), growth goals, and financial goals. Remember that this is a summary. You don’t need to go into too much detail in this section because you’ll be digging deeper into these topics throughout the rest of the business plan. 

What makes your brewery unique in today’s market? Think of what was your motivation behind opening your doors in the first place? What benefits are you trying to provide to your customers? Are you a microbrewery, a taproom brewery, or a regional brewery? Does your brewery or staff have any awards or achievements that help you stand apart from competitors? What milestones have you achieved or major sales goals have you hit? Use this section to share who your brewery is and what the motivations are behind what you do.

Over the past few years, the craft brewing industry has become more and more saturated. Whether you were the first or the last brewery to join your local market, it’s important to know where you stand among them. It’s helpful to include a market analysis in your brewery business plan to understand what your competitors are doing well and where there might be gaps that you can take advantage of. How many beers are they offering on their menu? How often does their menu rotate? Do they offer monthly beer clubs or memberships? Do they have a customer loyalty program? Are they offering tours of the brewing process? Are their craft beverages in local grocery stores or only for purchase from their taproom? Understanding where your competitors stand allows you to make informed business decisions and successfully navigate a competitive market.

Whether you manage a small team of brewers or run a larger scale operation with a team of 20+ individuals, there is likely some form of organizational structure in place. Clearly outline the structure of your team based on the business sectors of your craft brewing business. List out the leadership team and those that report to them.

As a product-based business, having a pulse on your inventory is of the utmost importance. Without the right materials in stock, you won’t be able to brew your products or package the beer for consumption. Having a proven process in place for product inventory ensures that your brewery will remain operational. Avoiding the potential for a pause in production that could stunt your growth goals.

Create a plan that improves the visibility of inventory for every member of your team. If you’re low on a product, how will your team find out about it? What will be the process to ensure that additional supplies and materials are purchased? Along with being able to track your inventory quickly, a strategic brewery business plan also needs a process for you to accurately forecast inventory orders. While inventory management will help you know when things are low, inventory reorder forecasting will help you determine the most effective timeframe for when purchases need to be made.

When it comes to marketing your business to drive additional revenue, take the time to ask yourself the following questions:

• What is your current marketing strategy to drive new business?
• How do you plan to make a new customer a repeat customer?
• What will you do to stay top of mind with your existing customers?
• Where should you be marketing your brewery within the community?
• How will your brewery distribute your products?
• Is there a process in place to handle sales orders and invoices?
• Where will you house important customer order history details?

Think through the above questions so you can fill in any gaps that will help you accomplish your goals quicker.

If the purpose of your business plan is to attract additional funding to help you expand or grow your brewery’s reach, then you will want to include a funding request section. In this section, you would explain how much funding you are requesting. Also how the funding will be put to use. This allows investors to get complete visibility into where their money is going.

As a brewery owner, you understand that your success is often defined by the company’s profits and revenue. Gather a few bank statements, income statements, cash flow statements, loan information, and any additional documents that can help demonstrate your brewery’s profitability. Keep in mind that there’s a lot that goes on behind the scenes of running a brewery. With so much on your plate, using accounting software is vital to keeping accurate records and checking in on how the business is doing.

While these will clearly show where your brewery currently stands, it’s also helpful to include projections of where you expect to be financially in the next five years, ten years, etc. Using these projections, you can create realistic goals. Broken down into quarterly sprints, that will help you reach them more successfully.

To wrap up your brewery business plan, attach any supporting materials within the appendix. This can be anything related to your business, ranging from awards and certifications to resumes of the leadership team.

Watch this short video from CPA Kary Shumway for his expert advice on creating a brewery business plan. For more detailed guidance — including sample plans, templates, and financial planning worksheets — you can sign up for his Brewery Business Plan course.

There are a lot of moving pieces that need to remain in sync if your brewery is going to successfully reach your business goals. From inventory management to sales and accounting, brewery management software allows you to track every aspect of your business more quickly and effectively — keeping you on track.

While there isn’t a one-size-fits-all product out there, your brewery management software should be able to help:

• Track your inventory and prompt you when you’re running low
• Monitor your inventory with the click of a button to confidently fulfill orders
• Calculate production costs for upcoming batches using historical cost data
• Create sales invoices and sync them with your company’s accounting software
• Report on and track your sales and production metrics in high-level dashboards
• Provide visibility into business metrics when on the go via any device

Even with the best staff, mistakes can happen that jeopardize sales and hurt your revenue. Utilizing brewery management software equips your team with everything they need to make informed decisions that benefit your brewery.

Read more: How to know when you’re ready to invest in tech »

Why Your Brewery Needs a Brewery Business Plan

Experiencing growth is exciting for any business owner. It can also leave you with long days and sleepless nights if growing pains are involved. Crafting a solid business plan for your brewery helps equip you with a sensible growth strategy for you and your team from day one. While it’s a great tool to use to ensure you’re on track to meet your goals, your business plan can also be used to show your team and potential investors how profitable and successful your brewery is. 

As a brewery owner, you want to do everything in your power to keep your business operating smoothly. In order to maintain a successful and profitable business, you need to outline growth goals to work toward. Do you plan to stay in one location? Are you looking to expand the number of taprooms over the next few years? Consider how many individuals you currently employ and the number you expect to hire as your sales targets are met. Will you distribute your beer only onsite at your location? Will you offer your selection across regional grocery stores and restaurants as well? Determine realistic goals for your brewery and set a timeframe in which you hope to achieve them. This added layer of visibility into your business’s future will hold you more accountable as you work to hit quarterly benchmarks. Creating the perfect roadmap for success. 

Whether you plan to expand production within your current facility or invest in additional locations, the financial feasibility of these strategies will depend on how much revenue you bring in over the next few years. You have the option to extend the timeframe on your growth goals if sales aren’t hitting the mark. You can also outsource additional funding opportunities to help you grow your brewery. With a solid business plan in place, you’ll have the toolkit needed to demonstrate to loan providers why they should feel comfortable betting on your craft brewing business.

Owning a brewery is an extremely rewarding opportunity, but that doesn’t mean it’s always going to be a breeze. Throughout the years, you’re going to need to make tough decisions — and sometimes you need to make them quickly. By taking the time to put together a business plan for your brewery and updating it regularly, you’ll have a pulse on operations and goal tracking at all times. Because of your visibility into every aspect of the business, you’ll be able to make confident and informed decisions that benefit your brewery.

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How to Start a Microbrewery in 6 Simple Steps

Andrew Moran

This article is part of our “Starting Business” series, an in-depth look at how to start a company in a particular niche or industry.

In today's alcoholic beverages market, something intriguing is happening: even though overall beer sales remain flat, the number of independent breweries and microbreweries is growing.

Average beer consumers are unhappy with the quality and taste of the average corporate-controlled product on the market, and while craft-brewed alcohol can be a bit pricier, aficionados are proving that they will shell out that little bit extra for quality, flavour and technique. Therefore, there's never been a better time to enter the brewing market.

How do you go about launching your own venture, though?

Starting a Microbrewery

Whether you have an incredible beer recipe in your arsenal, or you have noticed a market opportunity in your city, the first thing you need to do is commit to the process. The resources required are huge, the brewing itself is complex, and it will mean taking on industry titans and the corporate juggernauts; in short, it's not a niche for the faint-hearted.

However, if you have a passion for beverages and are determined to make things work, then why not brew up some competition. To help get you started, here is a step by step guide to setting up a microbrewery.

Step 1: Conduct Market Research

To determine how, when and where you should set up operations, it is crucial to assess your local marketplace. You should conduct in-depth local market research , although as a broad indicator, craft beer popularity is booming across North America and Europe. 

In the US, for example, independent breweries rose 4% in 2018 , accounting for about one-fifth of the overall beer market. They are responsible for producing around 26 million barrels of beer, which is a fraction of the 200-million-barrel annual total. However, despite representing a small part of the market, microbreweries possess a retail value of just under $28bn.

"Small and independent brewers continue to serve as job creators, strong economic contributors, and community beacons," said Bart Watson, chief economist at the Brewers Association, recently. "There are still pockets of opportunity both in terms of geography and business model, but brewers need to be vigilant about quality, differentiation, and customer service".

In the Eurozone, meanwhile, the number of active breweries blossomed by around 1,000 last year and more than 6,000 in the last decade. Output is up by about 5% , and demand is holding steady. At the same time, analysts say that it is becoming increasingly difficult for these businesses to balloon simultaneously because craft beer sales have somewhat levelled off.

Is the Global Microbrewery Market Sustainable?

A lot of local and international companies have been expanding their distribution network and continuing to diversify their flavours, tastes and recipes. These businesses have also been paying attention to a vital consumer preference: low alcohol by volume (ABV). This has contributed significantly to the growth of the global craft beer market.

Step 2: Conduct Company Research

When you are in the beginning stages of establishing your microbrewery business, it is imperative to ensure that your company can survive and thrive in a burgeoning market. It would be better to outline these elements before you officially open the doors to your company, rather than researching and verifying this data as you go along.

Here are several elements to consider:

Typically, microbreweries raise capital by borrowing from the bank , although there are numerous other options available, including self-funding, venture capital and even crowdfunding. Depending on your jurisdiction, you could also receive a windfall from the government. In the province of Ontario in Canada, for instance, the federal and provincial government has announced $562,000 in funding for companies to create local jobs and improve productivity. Therefore, it is always worth researching the possibility of receiving loans or grants from the state.

How Much Does It Cost to Start a Microbrewery?

The level of funding required to start and run a brewery can vary; some brewers insist that an investment of at least $1m is necessary so as not to compromise on quality and safety, while other microbreweries have achieved success with initial startup costs of around $250,000. If you can find used equipment and minimise your overhead costs, it is entirely possible to get your business off the ground at the lower end of the funding scale.

Many brewers talk about having passion for the beer that you are creating but, in reality, this alone isn't going to cut it. Unless you are hiring experts to manage and oversee the production, you need to have a comprehensive, in-depth understanding of how brewing works. This may involve studying a degree, while developing first-hand experience through small-scale brewing is also a good place to start.

If you build it, they will come? Yes and no. If you have relevant contacts in the hospitality and retail industry, such as independent (i.e. non-brewery-owned) public houses and bars, then it may be easier to convince owners and managers to trial your product.

You may even need a couple of small contracts to justify scaling and opening a microbrewery. This is the difference between starting with a three-barrel brewhouse and expanding to a 25-barrel system.

For a microbrewing business, there are three essentials: location , equipment and workforce. The location should fit within your budget and support your infrastructure, while your equipment should be sufficient to balance your production with demand and facilitate your quality objectives. Your staff should also have experience in brewing. This triumvirate is crucial to growing your brand's footprint in regional markets and, hopefully, the global marketplace. 

Licensing / Legal

Licensing requirements will vary by jurisdiction, but what is certain is that you will have to jump through a wide variety of bureaucratic hoops. As well as quality assurance tests and trading licenses, there is a wealth of health and safety assessments you will need to conduct, and numerous forms of insurance that you will have to take out. Many of these processes can take a significant amount of time, too. 

Step 3: Prepare Business Documentation

If you want to obtain external funding , then a business plan is critical. Considering the numerous investments and paperwork involved in opening a brewery, you will need this blueprint to map out all your endeavours correctly.

This is where you need to marry your passion and expertise for beer with a business mind. You need to break down, step by step, what your company goals are, how it is going to operate, and how you will turn a profit. This means understanding the technical aspects of starting and running a business, such as how you plan to  manage cash flow , overhead costs and operational expenses.

Don't forget to include a mission statement and a vision statement in your plan, either. A mission statement focuses your company's objectives (as well as its approach to achieving these objectives), while a vision statement outlines the business's desired future position. For example, your mission might be to sell high-quality craft-brewed beer at a low price, while your vision may be to break into the top three sellers in your regional market within the next five years.

Step 4: Brand Your Company

One of the chief tenets of marketing is that your brand is your public identity, which might explain the incremental exodus from corporate beer to craft. Indeed, what makes microbreweries so appealing to customers is that these brands are unique and creative with their marketing strategies; this is an apparent trend in many industries, where new players can unseat established brands by offering something original and unique.

Of course, your brand strategy needs to rely on more than just being a new kid on the block, though. Pay careful consideration to your:

Name : In any industry, your company name is important; it has to be unique, and you will likely want to trademark it . In the alcoholic beverages industry, however, your name is doubly crucial to your brand. It has to be creative and intimate a backstory .

Website : In the 21st century, it's near impossible to grow and expose your band without some form of online presence. A business website can serve multiple purposes in this regard, from establishing your story and your brand to providing important information about your key people and your contact details. Ensure that the design of your site accurately reflects your brand in terms of aesthetics, too.

Aesthetics : The “look” and feel of your bottling, packaging and advertising should be consistent and representative of your brand. Consider the example of Guinness, for instance, who utilise the colour black heavily throughout their online presence, product casing and promotional materials. This reflects the iconic shade of their beer, ensuring consistency and setting the company apart from its competitors.

Social Media : Social media accounts are an invaluable way to expose your brand and provide updates on what your brewery is producing – especially if you are savvy with your approach.

Step 5: Cover the Legal Bits

If you want to trade legally beyond selling bottles out of your shed, then you need to register your company as a legal entity. Depending on the size of your operation and the level of liability you are willing to take on, you will need to select one of the following legal structures:

• Sole proprietorship
• Partnership
• Limited liability company (LLC)
• Corporation

Other important legal considerations include vendor and employee agreements. The former lays out the terms and conditions of selling your craft beer through different retailers, while the latter protects your intellectual property (IP). This is particularly vital, as non-disclosure provisions prevent your staff from revealing recipes to competitors should they decide to leave. You should enlist professional legal expertise when structuring these documents.

"It can be difficult to anticipate the shifting regulatory landscape that is involved in opening a brewery," says Amy Cartwright of Independence Brewing. "While most businesses have to deal with some basic licensing, beer comes with a host of federal and state laws that can be difficult to navigate and are subject to change. Changes in a state's laws related to distribution, on-site sales, and marketing rules can be unpredictable and could result in a startup brewery having to quickly alter its business plan".

Step 6: Attract Customers

According to market research agency Nielsen, the makeup of a regular craft drinker looks like this: male, Caucasian, 21-34 and earning between $75,000 and $99,000 per year. So, does this mean that you should tailor your marketing campaign to this demographic? Not at all. In fact, according to the agency's  2019 study  – presented at the fourth annual Craft Beer Insights Poll – an opportunity exists to reach a more diverse clientele.

For instance, the report found that 31% of women said they drink craft beer – up from 25% in 2015. It also discovered that 70% of women identified themselves to be craft beer consumers, which is slightly less than the 82% of male respondents who said they were craft shoppers. In some locations, such as Portland in the US, there are more female craft consumers than male ones.

The survey revealed some other interest facts about consumer preferences, too. One key takeaway is that brewery and tasting room experiences typically lead to increased purchasing of a particular brand; 34% of consumers reported buying 'a little more', while 15% said they purchased 'a lot more.' Another takeaway is that most craft drinkers are more interested in so-called 'third-space' drinking environments, including brewery tasting rooms and taprooms.

Overall, the industry is finding that branding is playing more of an important role than ever before. As consumers – serious or passive – become more acquainted with microbrewery products, they identify more with particular companies. This is an incredible opportunity to promote and expose your business, meaning that you should identify your demographic and target them accordingly. Key channels for this can include:

• Social media campaigns on relevant platforms, including Instagram , Facebook and Snapchat
• Local SEO marketing (including Google My Business and an active blog )
• Relevant offline platforms (including print, radio and even television advertising)
• Alternative engagement platforms, such as a YouTube channel or a podcast

Get out there and showcase your product, too; after all, the single most crucial selling point of any beer is how it tastes. Attend local trade fairs, public events and sporting events (ensuring beforehand that you are not infringing on any exclusivity agreements that other breweries may have). Negotiate with independent shops, off-licenses, bars and cafes to trial your product in-store, and don't be afraid to give out free samples to journalists and craft beer bloggers to gain publicity. Get in touch with subscription companies that send craft beer selections to their customers, as well.

Case Studies

MadTree Brewery is an excellent example of a successful nano-brewery startup. Just two years after leaving their corporate jobs and starting the venture, owners Brady Duncan and Kenny McNutt saw their business land in the top 5% of all regional craft breweries in the US by volume. This included attracting 15,000 people to their second facility in Cincinnati to sip beer, meet fellow craft aficionados and enjoy the atmosphere.

The overnight success of MadTree Brewery isn't necessarily a marker for all craft breweries, but the three key indicators behind their success should be: Duncan and McNutt claim that a quality product, progressive employee management and continuous participation in their local community has been responsible.

The microbrewery industry has been brewing a boom for the last few years now, and, as a result, the data suggests that things may be frothing over. That does not mean you cannot enter the industry and try to sell a delicious craft beer to a thirsty public, though; it just means that it might be harder to secure financing and compete in a crowded market.

Indeed, long-term, the signs are positive: microbreweries will continue to account for a more significant share of the beer market. Your brand can imbibe a percentage of this by taking the advice of MadTree Brewery: offer quality beer, treat your staff members well and be pillars in your area. If you can combine your passion for brewing with an entrepreneurial mindset, there is no limit on where your company can go.

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Craft breweries: The challenges of doing business in a crowded market

The last decade has seen an explosion of craft beer entrepreneurs in Canada, but with so many new microbreweries popping up, the market is quickly getting crowded. As overall beer sales decline, what do breweries need to remain viable and solvent while competing for a share of the beer market? We look at the market dynamics and challenges facing the microbrewery industry as well as what support is available to tackle them. 

Beer enthusiasts have never had so much choice – as a result of the decade-long expansion of the craft beer industry, there are now more brewing facilities per capita than ever before in Canada, offering consumers a greater variety of suds. According to data from the Canadian Craft Brewers Association, there were 1,005 craft breweries in operation nationwide as of June 2019, with an additional 195 expected to open for business in 2020.

This success is appreciated by consumers, but this growth is also breeding anxiety. The market is showing signs of overcrowding, potentially putting at risk the stability and viability of new start-ups as well as more established microbreweries as they’re all vying for a share of a retreating consumer base. While beer still accounts for nearly 40% of total alcohol sales in Canada, data from Statistics Canada show there is a growing taste for wines and spirits.

Think big, brew small

The culture of beer drinking appears to be changing as Canadians are consuming less beer than in the past. Statistics from Beer Canada show beer sales fell 4% in 2019, the most significant drop since Prohibition. What may play in favour of craft breweries is that they tend to emphasize flavour over volume, providing a broader diversity of taste to satisfy consumers.  

More than 90% of breweries in Canada are small, local operations producing less than 15,000 hectolitres (or about 176,000 cases of 24 12oz beers) a year. Rather than going toe-to-toe with the economies of scale of global beer companies, the success of microbreweries is based on producing authentic and quality brews, winning over consumers by introducing them to flavourful and innovative styles of beers. The margin for error in this market is slim as patrons may not give a bad product a second chance considering the wealth of other options available to them. Quality control is key to building and maintaining a loyal customer base.

In addition to offering customers flavourful beers, some craft breweries are trying to stand out by building an experience around their brews. Many are opening restaurants, fill-stations or tap rooms, even renting facilities for special events and creating social gatherings around beer tasting to bring customers to their products.

The cost of brewing

A significant number of craft beer start-ups have been created by home brew enthusiasts who wanted to turn their hobby into an enterprise. But establishing a new brewing operation requires considerable capital investment in the form of equipment like boil kettles and stainless-steel fermenters, as well as systems to facilitate processes such as mashing, sparging and bottling. Then there is also the cost of ingredients (e.g. malt and hops), as well as the human resources required to run the brewing operations. In addition, it often takes several years for a craft brewery to generate cash flow as a result of set up timelines as well as the time needed for licencing and establishing distribution channels.

Not everyone in craft beer has the same ambitions for their business, however. Some microbrewery owners run their operations part time as a side gig or hobby, some others are only looking to run a small brewing operation to earn a living for themselves or their family. But the hard truth is that only about 50% of all Canadian breweries are profitable, according to data from Statistics Canada.

Many microbreweries struggle to establish a good financial flow, and some end up in receivership as a result of heavy debt and limited revenue. In some instances, this is because they have adopted a “wing and prayer” approach to launching their enterprise, foregoing a business plan and sales strategy. With the right guidance, some manage to turn things around, finding a more stable footing in the market or making their business appealing enough to attract potential buyers or investors.

Barriers to expansion

There are a number of challenges to growth that reinforce the tendency of craft brewers to stay small. Expanding into multiple provinces, for example, is difficult as it implies additional production and distribution costs. Most microbreweries, especially in places removed from highly populated urban areas, do not possess the means of transportation to distribute their product. Furthermore, the ability of microbreweries to expand in their own jurisdiction is also complicated or restrained by a simple fact of geography: Canadian population centres are often separated by great distances. Some microbreweries operate in communities that are not populous enough to sustain more than a limited number of craft beer establishments, limiting the potential for successful expansion at a local level.      

Provincial tax and regulatory considerations come into play as well. In certain provinces, microbreweries are almost encouraged to remain small. For instance, Ontario has a tax system in place that can penalize breweries once they produce a certain volume of beer. This creates an issue when breweries that try to scale up cannot grow large enough to create economies of scale.

Then there is the challenge of getting products on store shelves. Shelf space is shrinking as more and more brews are making it to market, making it imperative to focus on gaining and keeping shelf space for established products. Yet many breweries prioritize new product development instead. In addition, the selling price is often dictated by stores or the provincial regulator. Liquor stores may choose not to purchase a craft beer that it feels is overpriced or too niche, as they are motivated by products that sell quickly with higher margins. As such, craft brewers may not be able to price to quality when selling to stores. That is why some only distribute their beer to local bars, or prefer to open their own taprooms or filling stations.

Looking for the warning signs

Whether you are a seasoned craft brewer, a new start-up or someone considering getting into the market, understanding the state of play – and how your business is performing within it – will help you remain viable and in control.  For brewers concerned about current or future viability, here are some of the warning signs to look for:

• Inability to gain market share despite your best efforts to do so
• Lines of business or products that are unprofitable
• An increase in local competition
• A downward pressure on price as you struggle to sell inventory
• Operating at a loss as a result of your high level of expenses
• Your core business experiencing negative or declining margins;
• Your operations facing negative or downward trend in cash flow

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Halifax brewery facing lawsuit for allegedly botching 59,000 cans of beer

Good robot says n.b. company was involved in every step of the process.

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A New Brunswick beverage business is accusing a Halifax brewery of screwing up the recipe for tens of thousands of cans of beer and jeopardizing the company's future, according to court documents.

Lawyers for Think Fermentation, which operates as Think Brewing, said in a statement of claim filed in the Supreme Court of Nova Scotia in April that the company entered into an agreement with Halifax's Wrought Iron Brewing Company, which operates as Good Robot Brewing, in January 2023. 

The Moncton-based company claims Good Robot was supposed to produce and package 59,000 cans of beer involving five different flavours as part of a first batch, according to the documents.

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The deal was supposed to help "reinvigorate" Think Brewing, which was purchased in 2022 by a new owner who wanted to restructure the company to sell and produce more alcoholic beverages but did not have brewing facilities, the documents said.

"Good Robot was aware that Think's plans for a successful relaunch depended on the batch of beer being identical to what had previously been sold at NB Liquor outlets," the statement of claim said. 

Think Brewing claims Good Robot failed to follow product specifications, recipes and ingredients, resulting in a beer that differed from its previous product — and losses of around $150,000, the documents said.

Good Robot claims it's owed over $25K

In a statement of defence filed last week, lawyers for Good Robot said the brewery followed specific instructions agreed upon before brewing began and representatives of Think Brewing were involved in every step of production and packaging.

Think Brewing agreed to changes in specifications in order to scale production to Good Robot's facility, according to the statement. The documents said these types of adjustments are common in the brewing industry.

The Halifax brewery "specifically denies" the quantity of beer involved in the first batch and that all beers being brewed had previously been sold at New Brunswick liquor stores, according to the documents. The statement of defence said total production in the first batch was 46,728 cans. 

Think Brewing owes Good Robot thousands of dollars as part of the initial agreement between the two companies, according to a counterclaim filed by the Halifax brewery on the same day as the statement of defence.

Good Robot alleges Think Brewing is still liable for at least $25,000 to cover the costs of production and packaging, the counterclaim said, as well as costs related to things such as increased labour due to improper labelling, packaging, shipping insurance and storage fees.

Think Brewing has not picked up the finished first batch, which remains at Good Robot's facility, the documents said. 

Good Robot's plan to brew for others

The lawsuit against Good Robot comes after the company has tried to increase production, including contract brewing or making beer for other breweries .

The company moved its brewing operations from its Robie Street facility in north-end Halifax to a location in Elmsdale, N.S., a few years ago to allow for more production.

Management said the move was to "future-proof," after Good Robot had to lay off most of its staff when the pandemic arrived .

Lawyers for both companies did not respond to requests for comment by publication time.

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Josh Hoffman is a reporter for CBC Nova Scotia. Josh worked as a local radio reporter all over Canada before moving to Nova Scotia in 2018.

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$57.5 million in funding to support 51 emergency and transitional housing projects in Montreal

From: Infrastructure Canada

News release

Rachel Bendayan, MP for Outremont, on behalf of Canada's Minister of Housing, Infrastructure and Communities, the Honourable Sean Fraser, and the Quebec Minister responsible for Social Services, Lionel Carmant announced today joint funding of $57.5 million per year, for the years 2024-2025 and 2025-2026, to support and develop 51 emergency and transitional housing projects for people experiencing homelessness.

Montreal , Quebec , June 21 2024 — Rachel Bendayan, MP for Outremont, on behalf of Canada's Minister of Housing, Infrastructure and Communities, the Honourable Sean Fraser, and the Quebec Minister responsible for Social Services, Lionel Carmant announced today joint funding of $57.5 million per year , for the years 2024-2025 and 2025-2026 , to support and develop 51 emergency and transitional housing projects for people experiencing homelessness.

Thanks to this funding, the Montreal region will see a significant increase in the number of emergency and transitional housing places by 2026. The call for projects not only allowed to renew and enhance all existing spaces, but also to add 521 new spaces . This represents a 30% increase in the number of places, given that by December 2023 there was 1,526 places in Montreal.

Faced with the increasingly complex situation of homelessness in the metropolis, the Government of Canada, the Government of Quebec and all their partners are today sending out a strong message of collaboration. Indeed, too many Montrealers and Quebecers are confronted with the unacceptable reality of homelessness, when everyone deserves to have a safe and stable home. It's important to continue to unite all the forces at work, to invest more to help the most vulnerable and to ensure the development of housing projects for these clienteles. In this respect, the inauguration of the Au pied de la Montagne project is a convincing example.

Au pied de la Montagne

It was also an opportunity for the assembled dignitaries to inaugurate the Au pied de la Montagne project, spearheaded by the Old Brewery Mission organization. Located at 4544 avenue du Parc on Plateau Mont-Royal, this is a 24-unit community housing project for homeless men. A former hotel has been transformed into a rooming house, including community spaces and areas for tenant support and accompaniment services. The Government of Canada invested more than $6.5 million in the project as part of the Rapid Housing Initiative (RHI). The Government of Quebec is also helping to finance the project, valued at over $8 million , through its Rent Supplement program.

"The Government of Canada recognizes the importance of reducing and preventing homelessness across the country. That's why I'm proud to announce a contribution of over $25 million to fund projects that will help improve the regional capacity for emergency and transitional housing services in Montreal. We continue to work with all the partners involved to enhance resources and help address the issues facing people experiencing homelessness." The Honourable Sean Fraser, Minister of Housing, Infrastructure and Communities

"This new investment testifies to the real efforts being made by the Government of Quebec to better support people experiencing homelessness. Organizations, too, will now be able to count on funding that will offer them stability and predictability for their future activities. Our actions are aimed at improving access to emergency and transitional housing services, in conjunction with the teams in place in Montreal, while continuing to support transitional housing and the creation of supportive housing, as demonstrated by our support for the Au pied de la Montagne project. I would remind you that these three components are necessary to promote the full reintegration of people experiencing homelessness. This is a priority for us.” Lionel Carmant, Minister Responsible for Social Services

"Everyone deserves access to a safe, affordable home. Our federal government is proud to fund the creation of 24 new housing units for those who need them most, here in our beautiful Mile End neighbourhood. The values of mutual aid and solidarity are fundamental to the residents of our neighborhood, and this project demonstrates our commitment to ensuring that no one is left behind." Rachel Bendayan, Parliamentary Secretary to the Deputy Prime Minister and Minister of Finance and Member of Parliament for Outremont

"To fight homelessness effectively, we need to work together. The funding announced today is a fine example of this. It will enable projects like Au pied de la Montagne to offer homeless men a roof over their heads, the affordability of which will be guaranteed by the addition of rent supplements offered to tenants by the Société d'habitation du Québec. It will also provide the support needed to get these men off the streets and back on their feet. I'm proud of our government's contribution, and I salute the participation of our partners in this concerted initiative." France-Élaine Duranceau, Minister responsible for Housing

"Today, as a Montreal MNA , I'm proud of our Quebec government and of this wonderful collaboration between all these partners, who are combining their efforts to support a cause that is particularly close to my heart, that of Quebecers facing the reality of homelessness. The needs in this area are enormous, and today's announcement is a significant message of our governments' determination to support our society's most vulnerable citizens. Everyone must be able to count on a stable and secure home. It's a basic necessity of life." Karine Boivin Roy, Member of National Assembly for Anjou-Louis-Riel and Government Assistant to the Minister Responsible for the Metropolis and the Montréal Region

"To overcome the crisis of vulnerability and combat homelessness, all levels of government must invest in opening up more adapted resources. Today's announcement is proof that we are all united to make this happen. I would like to sincerely thank the federal and provincial governments for these important investments. It's imperative to be able to open up resources that are well distributed throughout the Montreal area. Moreover, for us, the long-term solution lies in housing, and to this end, our administration is putting in place robust measures with Loger+ and the new urban planning and mobility plan. The City of Montreal is committed to leaving no one behind.”    Robert Beaudry, responsible for homelessness, urban planning and the OCPM on the Executive Committee of the City of Montreal

"The main solution to simple homelessness is housing. Whether it's social, community, affordable or private market housing, we need to both increase and diversify the supply of housing across the metropolis. The Old Brewery Mission is pleased to be able to count on the financial support of key partners such as Canada Mortgage and Housing Corporation through the Rapid Rehousing Initiative. Over the next few years, The Bash Shetty Residence and its 24 housing units will bring many men one step closer to residential stability and a decent place to call home." James Hughes, President and CEO, Old Brewery Mission

Quick facts

The realization of these projects is made possible by the financial contribution of the Government of Canada and the Government of Quebec, through the Canada-Quebec Agreement on Reaching Home and funding from the Plan d’action interministériel en itinérance 2021-2026.

Of this amount, approximately $30 million comes from the Plan d’action interministériel en itinérance 2021-2026 , and about $25 million from the Reaching Home program.

The granting of this contribution follows a call for projects divided into three sections, as follows:

• Component A ($39.5 million): renewal and enhancement of 19 emergency and transitional housing services projects and 12 complementary measures projects.
• Component B ($4.6 million): increased funding for emergency and transitional housing services projects for 20 organizations . This component will provide regular beds for groups such as youth, men, women and Indigenous people;
• Component C ($13.4 million): development of eight new emergency and transitional housing services projects, including the transition of the Hôtel-Dieu project to two permanent sites.

In addition to improving access to emergency and transitional housing services, the funding will make it possible to increase the 24/7 services offered on a regional scale, support an ecosystem of complementary reception and intervention resources, and promote access to services for remote populations.

Reaching Home is a community-based program aimed at preventing and reducing homelessness across Canada. This program provides funding and support to urban, Indigenous, territorial, rural, and remote communities to help them address their local homelessness needs. 

Funding under this program is allocated to 64 Designated Communities (urban centres), three territorial capitals, 3 0 Indigenous communities, and rural and remote communities across Canada. The program also makes funding available to Indigenous partners to support distinctions-based approaches to homelessness services.

All eligible tenants will be able to benefit from the Société de l’habitation du Québec's Rent Supplement Program, which will enable them to pay 25% of their income towards housing. This additional assistance, spread over five years , is paid 90% by the SHQ and 10% by the City of Montreal.

Associated links

• Reaching Home: Canada’s Homelessness Strategy
• Canada’s National Housing Strategy
• Infrastructure Canada - Funding Delivered under the Investing in Canada Plan

For more information (media only), please contact:

Micaal Ahmed Communications Manager Office of the Minister of Housing, Infrastructure and Communities 343-598-3920 [email protected]

Media Relations Infrastructure Canada 613-960-9251 Toll free: 1-877-250-7154 Email: [email protected] Follow us on Twitter , Facebook , Instagram and LinkedIn Web: Infrastructure Canada

Lambert Drainville Press Secretary Office of the Minister Responsible for Social Services 418-264-4146

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Another beer garden is coming to downtown Worcester. Here's what to know

WORCESTER — Another beer garden is coming to downtown Worcester this summer, and it will be hosted at a familiar green space in the area.

Franklin-based brewery 67 Degrees Brewing plans to operate the beer garden at the CitySquare at Eaton Place, a patch of open space situated between Mercantile and Front streets, next to Worcester Common Garage.

"We are looking to operate a beer garden and activate the space at Eaton Place, CitySquare," said Olivier Edouard, owner and co-founder of 67 Degrees.

According to the agenda of the June 13 License Commission meeting, the beer garden will operate from July 4 to Oct. 13.

The beer garden will be open Thursdays through Sundays and the hours will largely be 3 to 9:30 p.m. on Thursdays, noon to 9:30 p.m. on Fridays and Saturdays and noon to 4 p.m. on Sundays.

The managers of 67 Degrees received one-day liquor and live music licenses for all of the days the beer garden is scheduled to be open during the June 13 License Commission hearing.

Edouard addressed the License Commission via Microsoft Teams.

The brewery plans to work with local businesses such as food trucks and artisans and provide entertainment.

The space will also include security, a wristband system to ensure that nobody underage is served alcohol, and portable toilets, Edouard said.

The beer garden may not open on certain dates depending on the weather, Edouard said.

The boundaries of the beer garden will be defined by a series of ropes and a cement base. The entrance will be on Front Street across from 110 Grill.

"We're really excited about the opportunity," Edouard said.

67 Degrees also hosts a beer garden at Wrentham Village Premium Outlets and was selected to operate Boston City Hall's temporary beer garden in 2022.

According to its website , 67 Degrees is named after the optimal temperature to ferment ale. The brewery features an assortment of ales.

The area around the Worcester Common is set to be a hub for beer and other drinks this summer.

Notch Brewing opened the Notch Biergarten at the Mercantile Center in June.

The Worcester Beer Garden has also reopened under new ownership. However, the new owners are planning changes to the operation with an emphasis on cocktails.

Odd By Worcester Brewing also opened at the Midtown Mall earlier this year as an "urban beer garden" with a '90s theme and retro video games.