How to Start a Brewery Business

Starting a brewery requires both extensive planning and brewing talent.

More than 1,700 breweries operated in the United States in 2010, providing about 100,000 jobs, according to the Brewers Association, a research and promotion agency for the craft brewing industry. Starting a brewery involves the planning elements of a traditional business operation combined with the artistic vision of a brewer. Both the business and art components blend in a successful brewery.

Things You'll Need

• Brewery building
• Brewing equipment
• Business licenses
• Tax identification numbers

Instructions

1. Attend brewing school to learn how to brew. Even if you have experience in at-home brewing techniques, a professional brewery operation requires knowledge of the large-scale brewing and bottling processes. The selection of a high-quality school typically requires research to attend classes or a full-training program under the direction of a master brewer.

2. Determine the scope of your brewery business, shop for equipment and develop your business plan. A comprehensive business plan details the mission and focus of your brewery. The plan also projects your costs, sales and investments necessary to operate your brewery on both short- and long-term periods. The equipment search itemizes the exact equipment necessary to match your projected beer menu and details the initial equipment purchases, as well as equipment purchases for future expansion.

3. Incorporate your brewery business and apply for an official federal tax identification number, open a business bank account and apply for funding or attract business partners to invest in your brewery. Business or family financial partners help fund equipment, building rent or mortgage payments and promotion. But your options also include applying for a business loan from a commercial bank. Use your business plan to illustrate your overall goals and the economic plan for the first few years of operation to qualify for loans. File for a federal tax identification number for your business. This number allows you to keep separate tax records for your retail business. Business funds require a separate account to prevent co-mingling personal and business funds.

4. Establish a location, by renting or buying a brewery, and take out state-mandated business and brewing licenses. Compare and contrast rental or property prices and any local taxes before committing to a location for your brewery. Confirm that the area zoning laws allow your business. If your brewery also includes a sales room, research laws for any alcohol sale and distribution restrictions and any limits on customer parking or retail traffic. File for business and brewing licenses before leasing or buying your building.

5. Buy and install your brewing equipment, begin brewing your product, register to accept credit cards and open for business. Begin brewing test batches of your products and conduct informal taste tests with your friends to select your best products for promotion at your brewery. Determine the payment options for your brewery and apply to accept credit cards. This option allows you to sell to out-of-state buyers, if permitted in your state. Open for business with a grand opening promoted with advertising.

References

• New York State Liquor Authority: Definition of License Classes
• Brewers Association: Brewing Schools
• Brewers Association: Facts
• Siebel Institute of Technology: World Brewing Academy Master Brewer Program
• Compliance Service of America: Brewpubs - Caught in the Regulatory Crossfire; Sara Schorske

Resources

• Brewers Association: Federal Excise Taxes
• "Wall Street Journal"; A Stout Dream; David Kesmodel; March 2009
• Brewers Association: Self-Distribution Laws
• IRS: Employer ID Numbers (EINs)