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Posts Tagged ‘Microbrewery development life cycle

How to set up a microbrewery – step 2 – Market examination/Intelligence

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market research for beerIn my previous post I discussed about the various functions/steps to go through before setting up a microbrewery. I also discussed the first step, ‘Conceptual examination’ in detail.  In this post I shall discuss the importance of market examination and various questions need to be answered.

Before starting any business we have to do an extensive market examination. Market intelligence can help to understand where opportunities lie for the business, how big a challenge they represent, and what we need to do to succeed.

Some of the important factors which need to be considered while doing a market examination for your microbrewery, are mentioned below:

  • Target market and the market segmentation based on your initial objectives.
  • What is the structure and size of your target market and their purchasing power.
  • What all kinds of Beer are available and popular in your target market
  • How significant is size of target market to size of your microbrewery project.
  • What are the localization of demand for specialty Beers and the level of competition
  • What kind of Beer people prefer in your target area.
  • Income groups and price range of your target market.
  • What are the distributive trade practices, restrictions, preferences.
  • Regulatory requirements, local approvals, product approvals etc.
  • Estimates of sales revenue, costs of sales, distribution costs.
  • Have I forgotten anything? Do write me a note

Some of the answers you may already have in your mind, and for some you would have to do your research. It would be good that you spend some time seeking these answers, because they will become the backbone to your operations. A good consultant/ market research firm can help you document these answers.

In next post I shall discuss the third step/function which is feasibility study.


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 – 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.

How to set up a Microbrewery – A complete approach to planning, building and running

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set up microbrewery So you want to set up and operate a Microbrewery? Well this blog post is intented to  provide a summary of all the steps to setting up a successful Microbrewery operation, from starting to serving. You must be having some unanswered questions on how to go about setting up a Microbrewery and brewing industry. I shall try to address all of them one by one.

Its not too long when the first microbrewery was established in Gurgaon, Haryana, India. Since then people have responed/appreciated this idea of Microbrewery very well and in no time has become a great potential in an exciting new industry that has all kinds of possibilities for growth, profit, and fun.

Setting up a Microbrewery from scratch is a capital project that can be broken down into nine basic functions. You can also call it a Microbrewery development life cycle. Each function is very critical  and must be managed properly, from very first step of conceptualization to the end step serving. At every step/function there are whole lot of questions which you need to get answers for. You may already know the answers to some of the questions but others you will have to research/ask from experts as per your situation. Though I shall try to answer most of them here.

I shall assist you in organising your already found answers and to identify some important questions which you might not have considered yet. Following is a list of nine major function/steps that you must systematically and professionally proceed to do. Sometimes the answers may be quick to find, or may involve a lot of time and money to ensure getting the best answers.

Well, in this post I am listing the nine functions/steps. In my next post I shall discuss them one by one.

Microbrewery development life cycle/ 9 functions of a microbrewery set up project

  1. Conceptual examination
  2. Market examination/Intelligence
  3. Feasibility study
  4. Project justification
  5. Financial analysis
  6. Project planning
  7. Construction/implementation
  8. Inspection/Testing/Review
  9. Operational management

Microbrewery development life cycle
The idea behind adopting above mentioned systematic steps is to go about building a microbrewery in a right way to minimize risk and maximize the chance of

Keep looking this space to get most relevant/practical questions and answers for each function/step.