The Beer Chronicles

All about beer

How to set up a microbrewery – step 1 – Conceptual examination

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In my last post I discussed and drafted nine key functions that we must address when we are setting up a microbrewery. Since the steps involved are many, this would become a very lengthy post. So I have broken down the content in small posts. In case you want any detailed information, you can always write to us.

As all good project start, the first step is to do an ‘conceptual examination’. Here we generally answer the questions which starts from how, why, where, etc. Answering these questions, gives you clarity and a sense of purpose to the entire thing.

Some of the factors (along with some pointers) that you should have answers to, are mentioned below:

  • Why do you want to start a microbrewery?
  • A microbrewery or a brewpub – Apart from size, the main difference is that a brewpub is an installation that brews its own Beer for the  consumption at its premises like club, pub, hotel etc.  While a microbrewery is a small independent brewing operation that sells to local market, club, pub  with or without their own brand name.
  • Will it be a partnership or own venture? – Who are your potential partners, their strengths/weakness in your business
  • What will be the size, capacity of microbrewery? – 1000L or more per batch of brewing
  • Where will the micobrewery located? – Land cost, aquisition etc.
  • What are the kinds of Beer that will be produced – What flavours
  • Where will you source the raw materials – Agencies, Distributors, locally/ internationally
  • What kind of documentation will be required? – Licensing, paperwork etc.
  • How will the packaging, brand naming etc.work? – Branding agencies,
  • How will the logistics (distributions) work? – Through agents or wil you bee selling to a larger brewery.
  • Where will the financing come from? – Though this is complete step in our process which only can be analysed once the market is defined, type of Beer to be produced, raw material,  equipments have been selected and their cost. However a rough estimate about costs and form where the money is coming from, should be known to go ahead for the project.
  • Malt extract or whole grain – Based on your objective, target audience, you can take your decision.
  • What are your manpower requirements? – Brewmasters, Accountant, Engineer, Logistics, Admin etc.
  • Where to find expert advice? – Hire a consultant, contact to some existing microbrewery owners.

In my next post I shall discuss about the Market examination/Intelligence required before setting up a microbrewery.

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