About Microbreweries

Beer is a popular beverage in the United States, and the popularity of microbrews among 21-and-older adults has increased significantly over the past decade. More microbreweries are producing seasonal beers, including those that have fruit flavors, hints of coffee or chocolate notes, and the popularity of microbrewery restaurants, or brewpubs, continues to increase alongside the popularity of microbrews.

Significance

Microbreweries hold an important niche in the retail industry. These breweries do not mass produce their beer, but instead seek to differentiate their product by brewing in small batches. Microbreweries are generally defined as those breweries that produce less than 15,000 barrels per year. The costs of producing microbrewed beer tend to be higher than mass produced beer, but microbreweries can charge more for their beer because of the limited quantity of their products and the fewer competitors in the industry.

Types

Deciding on the type of microbrewery to operate can be a challenge for the operator of a microbrewery. Consider whether you will just brew beer, or if you would like to operate a restaurant as well. You must also consider whether you will serve your microbrews at your physical location only, or if you will ship your product for wider distribution. If you decide to ship your beers, you need to decide where to ship, either by sticking to local or regional retailers or sending your microbrews nationally or even internationally.

Geography

Determining the location of a microbrewery is extremely important. The location will depend on the type of microbrewery you are operating. Brewpubs--those that combine microbreweries with restaurants--tend to be very popular near large cities and near tourist areas. If you are looking to ship your beer, you will want to be near major interstates to reduce the shipping costs. If you are just brewing beer and not operating a restaurant or bar, the ideal location is in an industrial area because shipping options are convenient and buildings are cheaper to rent or purchase in industrial parks. These areas do not work well for restaurants, though, as they tend to be far away from heavily populated areas.

Features

One of the major assets a microbrewery has when compared with its competition is specialization. Producing small batches of beer gives a microbrewery the opportunity to specialize in unique types of beers. Microbreweries also spend more time on the marketing of their product to help it compete against the larger producers. This can include having artists on staff to design their labels and boxes so they stand out on the shelves of a liquor store. Some will also design their bottling facility to produce specially shaped bottles to add to the marketing of the microbrewery.

Warning

Starting a microbrewery is not easy. The cost of the equipment is very high, and making a mark in the beer industry is extremely difficult. Conduct a market assessment before starting a microbrewery. Even if you have a fantastic product, it's best not to enter a market where several other microbreweries are well known and have high customer reviews. The market is open to microbrews, but you will be fighting for a foothold in an already established microbrew market.