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5 Factors to Consider when Starting a Craft Beer Business

5 Factors to Consider when Starting a Craft Beer Business

Photo by Daria Shevtsova from Pexels

If you have a passion for craft beer and have always dreamed of making your own, it could be time to turn this into a reality. Setting up a brewery business can be costly, however, and not without its challenges, so you need to ensure you’re ready. You’ll need to budget for equipment, ingredients, staffing, promotion, and more as well as being prepared to work hard. Having said that, once you get your business off the ground it can be very rewarding. Here are five factors to consider when starting a craft beer business.

Business plan and budget

There are different types of craft beer businesses but most fall into one of four categories: microbrewery, brewpub, contract brewing company, and regional craft brewery. It’s important to choose the right one for you and to create a detailed business plan. Setting up a craft beer business will also require a reasonable budget to start as you’ll need expensive equipment. It’s important to ensure you have the resources. Here’s a step to step guide on how to start a brewery business.

Licensing and law

If you’re thinking of selling your own craft beer you need to do this in accordance with licensing and law. You’ll need to form a legal entity and register with the alcohol and tobacco tax and trade. You’ll also need a state liquor license. Whereas these are all easy enough to achieve it’s essential to ensure your business is compliant with regulations. Check out this guide to brewery licensing.

Outsourcing services

Running a brewery will take a lot of hard work and you might need to take on several members of staff. It’s also worth outsourcing certain business services. These include business consulting, marketing, manufacturing, and fulfillment. It’s also important to bear in mind whether you have the skills necessary to sell beer. A major part of managing your own craft beer business is selling your beer to different establishments. You could hire sales people to help you do this.

Sourcing quality ingredients

You need to source quality ingredients if you want to make the best impression on your customers. These should ideally be organic, locally-sourced, and fair-trade. Research barley and wheat varieties, for example, to understand the different types and find the best deals. The ingredients you use can be a major selling point, so it’s important not to skimp on these. 

Brand personality and promotion

If you want to get your business off the ground you need to build brand awareness and exposure. Create a personality for your brand based on the needs, values, and lifestyle of your target niche. It’s also important to outline a brand promise and clearly represent this in all marketing material. Build a top-notch website for your brewery as well. Consistency is key to your brand’s success. Consider local marketing channels such as collaborating with other businesses and promoting your beer at events. This way, you’ll create good word of mouth about your new craft beers and begin to generate business.

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