Thinking about starting a craft brewery

[BavarianBeast]

Hey All,

Just thought I would post to get some input and pick a couple brains.

I recently left my job a few months ago after I realized I hated where I was, who I was working with and what I was doing. I've taken some time off and figured out that I would like to do something on my own when I return to work. Having a major passion for beer and after countless nights of thinking how awesome it would be to create a brewery, I am starting to become more serious about this endeavour.

I've got my equipment and bottling set-up picked out, and am now looking for a location. My initial plan is to begin brewing and selling beer only, and then perhaps to branch off into a brew pub on 4th/17th or another similar location.

Just wondering if anyone has ever considered doing this, and knows the hoops to jump through or just has any suggestions in general.

Cheers!

[Dave P]

It appears it is time to initiate Operation Recipe Retrieve.

I wouldn't get past the planning stage until you have a rock solid beer down. Probably a few good ones (obviously said without knowing what you brew)

Its probably just me, but I wouldn't open one in Calgary. I would start with somewhere out of town, and build on small local support. Make it a destination. Im thinking like Eau Clair Distillery in Turner Valley. Would be to hard to jump in to Calgary and mix it up with the big dogs.

Again, not knowing your skills, it seems like all the start ups that make it somewhat big start off small (as a hobby, or side gig) and gain local support, then expand.

[HiTempguy1]

You and about a thousand other people in this province.

Definitely have hit "peak micro brew", I think you are too late to the game.

You must have significant financial backing? And you've read up on the alcohol sales and distribution rules for Alberta (aka convoluted)?

Dunno, just some thoughts. I think its awesome that you want to try, but there is no point in stacking the odds against yourself. Maybe buy in to an already operating brewery?

[mr2mike]

Step 1: Grow a hipster moustache
Step 2: Develop differentiating taste buds that can tell low end vs high end worth of beer.
Step 3: Profit

[dj_rice]

I wish you good luck in your endeavour. That industry is so competitive and niche, its gonna be hard to gain a following this late in the game.


I think you should do a test batch, and let your friends/family sample first, and see what their opinions are before going all gung ho business wise.

[GTR_Auto]

I will sample for you :P

[roopi]

Drop off a keg at my place and I'll decide if it's worth pursuing.

[Kloubek]

I don't know much about the industry, but as far as I know, due to law, regulation, and competition, this is a very difficult business to be successful at.

Buuuutttt, if you decide to do it, good luck.

[TheOldSkipper]

https://www.youtube.com/watch?v=AI3_w4NBvWg

Figured it was relevant.

[ExtraSlow]

Profit form selling your beer in your pub/restaurant is insane on a per-glass basis, but overall profit from the operation is much more modest. Profit from selling your product to other establishments are not that high either, so being a brew-only operation is kind of tough.

Have you talked to any of the existing operators about mentoring you? Most of them are pretty chill guys, and there aren't really any secrets.

[ercchry]

I think if I was to do it I would first nail down some recipes, then see how they scale... brew at an existing brewery and see how just trying to market your beer and get it to market goes... if it takes off then start hunting for a home of your own and investment in all the equipment... and of course a trendy brew pub

[blitz]

It seems like one of those things you should become good at first, then start a business.

[BavarianBeast]

Thanks for all the replies so far.

I have inquired with a couple breweries in town about becoming a partner or purchasing an existing brewery but have not had any luck so far. I'm meeting with one of them next week to pick his brain on starting the business.

In terms of the product and brewing knowledge - I have very little and have selected a system that eliminates the need for a brewmaster. It's called Smartbrew and more can be found out here; http://www.smartbrew.com.
It is a cheap way of brewing beer, but I have had the results at various establishments around the world and the beer is always extremely top quality and each brewer can modify the recipes as seen fit.

In terms of capital, I would be willing to dump close to $1m into everything.

I do understand it is a niche market and may be hard to penetrate, most of you are probably right and I should probably invest my time and money elsewhere..But, the thought of owning and operating a brewery would be a true dream come true.

[spikerS]

yeah, echoing what others have said, you need to know what you are doing first.

having no information on your background or even if you have ever done brewing in the past, I would suggest at a bare minimum taking this course:
https://www.oldscollege.ca/programs/...ent/index.html

once you have taken that course, I would suggest working for a brewery, and getting to know the business, make sure you would enjoy doing this. This is an easy kind of apprenticeship program that will fill your head with knowledge.

Once you have a solid foundation under your belt, start with the basics and create a bunch of recipes, and brew them all. Find what works, what doesn't, and what hits home runs. If you can get 4 or 5 home runs, you have a chance.

Start brewing that stuff like crazy, pass it out to your friends, their friends, whatever, create a buzz about it. Even bring it to other craft places and get them to try it, see if you get any kind of offers to have it on tap...

If it is good, the demand will be there, but the hardest part is getting it known. It is a good time to do this, especially in Alberta. The NDP government is instituting a $1.25 / litre on beer that is imported from out of province, so right off the bat you will have a HUGE pricing advantage, and getting a business licence and whatever for opening a brewery is pretty easy in Alberta, there are not too many hoops to jump through. Your biggest hurdle will be health inspections and such and making sure everything is kept spotless. Keeping the equipment clean will be your number one priority as any contaminates left in lines and kettles and such will throw off a batch of beer pretty quick.

Also, craft brewing and brewing at home are two completely different beasts, and there isn't much that is cross platform so to speak.

It is doable, and you can have a lot of fun doing it. But if you are expecting that you will be a social butterfly and having fun in the pub side, well, lets just say, you probably won't have much time for that.

[rx7_turbo2]

It might be the pessimist in me but I think it's too late to be getting into the industry. It just seems so saturated at this point. My Facebook has no less than 3 friends trying to make a go of it.

If you're looking for a return on a million dollar investment I have to think there's much better places to put you're money. If this is a passion, a love, a dream then maybe the risk is worth it.

[Marsh]

Lot of good advice here already. $1mm in a brewery cause you have nothing else to do isn't a great idea. Work for another brewery and see how you actually like it...most people that have started breweries are obsessed with the science behind beer, not just beer guzzlers on the weekend. I also happen to think the micro brew/ craft beer thing is way overdone here, but good luck if you do go ahead with it.

[JRSC00LUDE]

Not quite the same but my friend started a micro distillery a few years ago and it's been the best decision he ever made but he already had a significant passion for whiskey and his end goal is to make that (first batch comes of age next month after 6 years).

The micro breweries here have not seen the same level of growth and success.

It's interesting though, if you actually try to make an attempt I'd try it out. Good luck.

As far as this:

But if you are expecting that you will be a social butterfly and having fun in the pub side, well, lets just say, you probably won't have much time for that.

I completely disagree. The fun factor and the requiset social butterfly aspect of the industry is part of what my friend loves and, especially in the early days, was absolutely critical to establishing the brand. I'd say expect the exact opposite and plan to live the role, a strong public presence is everything.

[jdmXSI]

First off i commend you on looking at something new, no better time to look at something different than in a down market imo.

Second, i am a huge fan of local-ish beer for a few reasons. I personally can not drink the trash that gmbig breweries produce because of all the additives give me horrible hang overs after a few beers (2-3 pints). I alsowouldrather suport a local business than a massive corporation just seems to be a lot more care in the craft. My go for the past 6 or 7 years has been tree brewing for that reason. Especially after visiting thier brewery. They send their reps to the bars theys supply their beer to and if ut doesn't meet their standard, they pull their product because they dont want to tarnish their brand.

Another good brewery is in penticton and is called bad tattoo, great food, great service and beer was tasty. I know Calgary is a different City however after visiting a few different breweries those stand out more than local ones.

[bjstare]

Brewery is not a bad idea if it's something you're really passionate about. If it's something you love, the success will come.. and if it doesn't come, you'll still probably enjoy it. Opening a pub is an entirely different ball of wax, you couldn't pay me enough to do that.

[T-Dubbs]

if you want some real estate space for the brewery, msg me.
I'm an industrial real estate broker.