Starting Costs for Breweries
How much does it cost to start a brewery? The cost of opening a brewery could be around $250,000 but could reach up to $750,000 for a small one. A medium–scale brewery, on the other hand, can cost around $1.5 million at startup. The cost is made up of four major expenses: equipment, location and construction, permits and licenses, and marketing.
Starting small and growing over time can help reduce initial costs.
Most breweries range from $250,000 to $1 million to open. Other factors impacting costs include location, licensing, permits, and raw materials.
The minimum startup costs for a brewery is $12. The maximum is $27,209. The average is $13,936. Costs include:
- Equipment
- Location
- Licenses
- Marketing
- Labor
Labor can cost $3,000 per month plus a head brewer salary. Marketing budgets average $1,000 per month.
Nano-breweries can cost between $10,000 to $250,000 to launch. Microbreweries generally cost $250,000 to $500,000. Regional craft breweries cost $500,000 to $1 million. Large-scale production breweries have the highest startup costs at $1 million to $100 million.
Profitability of Small Breweries
Are small breweries profitable?
How much does it cost to start a brewery? Small breweries can cost between $250,000 to $500,000, while larger breweries can cost up to $2 million.
When starting a brewery, you can decide to start at a micro level or at a bigger level. Starting a brewery requires serious planning and understanding of the beer market and business.
Some costs include registration and licensing. One of the most significant is the cost of equipment. For larger breweries with more varied craft beer offerings, startup costs can reach as high as $2 million.
Running smart calculations will allow you to plan. Plan for everything to take twice as long and cost three times as much. With this in mind, careful research, conservative estimates, and planning for contingencies can help make the brewery startup process smoother. Focusing on quality, community, and smart operations from the beginning can pave the way for profitability.
How Much Capital to Start a Brewery?
How much capital is required to start a brewery? The cost is made up of equipment, location and construction, permits and licenses, and marketing.
There are myriad factors that dictate costs, including how much you intend to produce, your location, and what equipment you buy. For large-scale production, it can cost between £50,000 and £100,000.
How much does it cost to start a microbrewery? There is no fixed amount when it comes to the cost of setting up a microbrewery. Expenses can vary from £1,000 to as much as £1 million.
The cost of opening a brewery ranges from $250,000 to upwards of $2 million. However, for a standard brewery, expect between $500,000 and $1.5 million.
Here is a sample Microbrewery business plan template. Starting microbreweries is generally more accessible than standard breweries because of lower startup costs.
Anybody setting up a microbrewery will need to ensure they can expand. Make sure your premises have sufficient space unless you are prepared to set up from scratch again. Know your legal obligations and consider current brewery trends.
One of the essential elements of setting up a microbrewery is getting access to funding and obtaining specialist microbrewery insurance. Public liability insurance is also crucial if you offer tours, host events, or have a taproom.
On average, craft breweries have a slightly higher startup cost than microbreweries—around $100,000 to $2 million. A craft brewery planning to distribute 30-barrels (930-gallons) will cost around $1 million to start.