How much does it cost to open a brewery: cost calculation, equipment search, business plan
Every year, more and more people are thinking about whether it is realistic to open their own brewery and is this business quite profitable? But why is this type of business so popular? The fact is that organizing your own brewery does not require a lot of money. Let's take a closer look at what needs to be done to get your beer business up and running. Also in the article you can find the answer to the question of how much it costs to open a brewery, what documents will be required for this.
Beer is considered one of the favorite drinks of many inhabitants, which is why, with the right organization and competent approach, this type of business activity can bring considerable income to its owner. Typically, these small breweries mainly produce unfiltered live beer.
If you decide to open your own brewery, then you should not be afraid that there are many different private breweries on the market today. As a rule, such businesses will not prevent you from starting your own profitable business. What are the benefits of starting a brewery as a business? There are several reasons:
- First of all, it doesn't take a lot of money to open a mini-brewery.
- Even a novice businessman can very easily make a profit forecast from a business.
- It is rather difficult to imagine situations during which such a business could fail.
If we consider the technology for preparing a live drink, then there is no need to install filtration systems. The advantage of this technology is that the drink does not contain preservatives, and the yeast contained in beer is active. Despite the fact that ready-made live beer is allowed to be stored for several days, it will be easy to calculate how much of a drink needs to be prepared in order not to go into negative territory.
Before answering the question about how much it costs to open a brewery, you should understand in more detail what varieties exist. Such mini-factories are divided into two main types:
- With a short loop.
There are such mini-factories that are capable of producing from 5000 liters of finished drink per day. Agree, a brewery as a business is a very profitable business.
If we consider an enterprise with a full technological cycle, then such a brewery will require a very large investment of money. If we talk about how much it costs to open a brewery of this scale, then on average you will have to shell out about $ 150,000 (9,886,530 rubles). The bulk of the money will be spent on purchasing expensive equipment, as well as renting a large area for business.
Reviews of the brewery business plan ()
The main thing about the business plan of the brewery in the year
Opening a brewery: mini or micro
In such a market segment as the beer production business, there is a certain division of enterprises into categories: micro-breweries, whose maximum production volume is 5 thousand liters per day, and mini-breweries, with a capacity of 5 thousand liters per day is higher. In addition, breweries also differ in the organization of the brewing process.
Full cycle breweries are very labor intensive and require significant investment. No wonder they are called a household mini-brewery for the production of beer. Shorter cycle breweries use ready-made beer wort, which means that production requires much less equipment.
The most important thing is that such breweries can be equipped in small areas. For microbreweries, a room of 40-60 sq. m., opening a mini-brewery requires more space, especially when it comes to a full-cycle enterprise. Such a production requires large workshops with an area of at least 100-200 sq. meters.
A business like your own brewery is often considered a good option for aspiring entrepreneurs. But first impressions are often misleading. An amateurish approach to this process is unacceptable, otherwise the following result is inevitable: the first live beer was brewed, sales went sluggish, there was a shortage of funds, since the costs were not calculated quite correctly, and the sad result is complete bankruptcy. First of all, an entrepreneur who has decided to make his own business on beer needs to decide on the production format: whether it will be a micro-brewery with a shortened production cycle or a full-cycle mini-brewery.
The main difference is in production volumes, and, accordingly, in the cost of equipment. To open a full cycle mini-brewery, equipment will be required in large quantities - after-fermentation tanks, filtration devices, yeast vats, various pumps, a hydrocyclone apparatus and much more. The initial investment in setting up a mini-brewery will amount to at least 1.5 million rubles. Subject to the purchase of used equipment, the creation of a brewery of this type may be cheaper, but again, this amount will not fall below 1 million rubles. The payback period for such an enterprise is usually from six months to 2 years.
Microbreweries with a shorter production cycle are a different matter. To create such an enterprise, a businessman needs 150-200 thousand rubles. Moreover, this money can be recouped in 2 months. The organization of production at such an enterprise is significantly different from a mini-brewery. Only one person can supervise the technological process. The owner of a private brewery solves the problem of buying equipment for brewing beer on his own. But a professional example of a business plan for opening a mini-brewery with ready-made calculations will provide him with a significant help in this. Based on this document, a businessman will be able to overcome various obstacles that inevitably arise in the process of business development.
Brewery organization: the importance of equipment
The domestic market offers entrepreneurs who decide to create a beer business a huge selection of equipment. An even wider assortment is presented by foreign manufacturers. All this complicates the choice, since the price is not always determined by quality, and quality - by the manufacturer's fame. Meanwhile, the safety of the brewing process depends on the quality of the brewery equipment.
Where to start
A craft brewery is a miniature workshop for the production of unfiltered live beer. The main feature is the creation of a unique recipe that would have a bright, memorable taste. Business in this direction should be done very carefully and prudently in order to avoid mistakes.
Despite the fact that craft breweries are not widespread in Russia, there is a lot of competition in the brewing industry.
The problem is that most people are afraid to try new things and prefer well-known stamped brands. The task of an entrepreneur is to study the market, find out what people really like and do it even better and better.
The first question to be answered is "For whom will the product be manufactured?" Bars, restaurants, cafes and shops and other retail outlets become the main source of income. Try to decide in advance on the class of products to be produced. The upper class can be sold in high-end restaurants at a higher cost, but the demand for it is usually lower. Differs in the addition of refined ingredients to the composition, for example, honey, pumpkin, rare hops or malt. In this connection, the price increases.
The middle class is designed for the average person, this is the "price / quality" option. The drink should be of high quality and tasty, but at the same time the manufacturer no longer uses expensive additives, and the recipe is closer to the classic one.
It is not recommended to create cheap products due to low demand. Because low demand + low cost = ruin. The business will have a poor return on the initial investment.
Remember that if the demand for your products at the points of sale is high, then the required volume will increase, and, consequently, the profit will grow. Therefore, the manufacturer must consider the tastes of regular customers in bars, restaurants, etc. Usually these are people from 20 to 40 years old with a stable income, both men and women.
This type of business is considered one of the most costly, because in addition to initial costs, constant investment in the business plays an important role. Let's take a closer look at the main cost items.
Brewery Business Plan
Craft breweries began to actively develop on the Russian market six years ago. Nowadays a small private enterprise is a trend that takes away the target audience from the brewing giants such as Baltika, Heineken, Efes.
Craft beer means craft beer. Small companies stick to individual recipes to delight customers with a unique product.
In the US, the market for craft is about 12%. In our country, the share is much lower - about 2%. The main advantages of beer offered by an independent brewer:
- a wide variety of varieties;
- new flavors are constantly emerging.
Large producers mass produce a limited number of varieties with low selling prices. The private brewer concept does not allow for mass production, which is reflected in the price of the product.
Today in our country there are about a thousand mini-factories and breweries at restaurants. The geography of product delivery is not limited only to the region of their location. For example, entering the Moscow market is an important task for many manufacturers.
Consider the potential of opening a craft brewery in a million-plus city. At the first stage, all manufactured products can be sold at home, which will reduce logistics costs. The main sales channel are bars and live beer shops. In order for the end consumer to know about the product and start buying it, it is necessary to carry out marketing support:
- blogging on social networks and introducing consumers to the launch of the facility and all production processes;
- inviting customers to taste new beers;
- active work with bartenders and product sellers;
- participation in exhibitions and festivals.
Table 1 shows the general concept of a craft brewery, excluding marketing support costs.
Brewery financial model
Brief Investment Memorandum
The brewery is a fast-growing and promising business that is gaining more and more popularity in Russia. Our country is one of the leaders in beer consumption. The demand for this product is high at any time of the year. In restaurants, cafes and bars, visitors prefer live beer. Therefore, most establishments are constantly in search of a local manufacturer of a quality drink.
With a competent business structure, you can start earning high profits from the very first months of work. In order to take into account all the nuances, it is necessary to draw up a competent business plan.
This project is designed for a city with a population of over one million people. There is potential for business scaling over time.
Key Success Factors:
- High demand for the product;
- Product quality;
- Affordable prices;
- Minimal risks; li >
- Affordable entry price.
The amount of initial investment is 1 882 800 rubles.
The break-even point is reached for 4 months of work.
Payback period - 20 months.