Business

How Much Does It Cost to Start a Brewery?

Do you love a great beer? Have you ever thought about creating a brewery of your own?

If you have, you’re not alone. Today, more people than ever are starting to create regional and national brands of craft beer.

According to reports from the Brewers Association, the number of breweries increased 4.5% from 2019 to 2020. That’s over 300 new breweries in the U.S. in one year.

If you’ve ever wondered how much does it cost to start a brewery, stick around! We’re going over the costs associated with starting your own brewery in 2021.

The Plain Facts: How Much Does It Cost to Start a Brewery?

It seems like the million-dollar question these days. You can’t go a week without hearing about a brand new microbrew you’ve never heard of knocking your socks off with its tasty hops.

Before you run off and start branding yourself the next king of microbrews, it’s important to know that starting a small business takes a lot of planning, dedication, and hard work. Not only that, breweries are highly capital intensive.

Many factors go into starting a brewery. Here are a few:

  • The cost of the equipment
  • Location and construction
  • Other costs and issues

In all, the cost to start a brewery can be anywhere from $500.000 to $2.5 million!

To determine your overall brewery startup costs, let’s look at each of these factors individually.

The Cost of Brewery Equipment

According to online reports, the cost for equipment to start a brewery can run anywhere between $100,000 to $1,000,000. But, of course, it all depends on what you’re willing to spend.

For $100,000, you can get a used 1 barrel – 31-gallon system. That will allow you to create batches of 320 12-ounce bottles. On the other hand, you could spend $1 million or more on a brand new 30 barrel system. That would allow you to make batches of 9,600 21-ounce brews.

Then there’s other equipment that goes along with a brewery, such as:

  • Kettles
  • Casks or barrels
  • Boilers
  • Bottling and canning lines
  • Conveyors
  • Storage tanks
  • Fermentation tanks
  • Filters and beer-labeling machines
  • Piping and tubing
  • Refrigeration equipment
  • Cleaning equipment
  • Waste treatment systems
  • Tap handles

If you’re stuck on what tanks to buy, we highly recommend Glacier Tanks.

Location and Construction

Beyond the costs of equipment, there’s the cost of location and construction. The amount you pay largely depends on your location. Chances are you’ll need enough for the first month’s rent and a security deposit if you plan on signing a lease to rent a building.

Even then, you’ll most likely have to do some construction within the building to prepare it for a brewery. For example, you may have to consider new plumbing, electrical needs, and ceiling elevation.

You also have to factor in the size of your building as well as room to grow.

Other Costs and Issues

On top of the normal costs, there are other costs to consider, such as:

  • Flooring to withstand the impact, temperatures, and acid of brewing beer
  • Licenses and fees
  • Insurance – property, casualty, and liability

On top of the cost, there is also the time it requires to obtain licenses to do business.

Build Your Dream Brewery

How much does it cost to start a brewery? Cost range from half a million to up to $2.5 million. The dream of starting your own brewery is possible, but it takes a lot of work, planning, and capital.

With the right plan, the right beer, and the right business strategy, you could be America’s next king of beers.

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