How Much Does It Cost to Start a Brewery? A Price Guide

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Are you ready to start your own brewery?

It is a fun business to own, but it requires a lot of preparation. You need to make sure you have a good business plan that states your strategy and how you will execute it.

Also, you should know “How much does it cost to start a brewery?” and get financing if that is a necessity. You’ll need investment to make your business idea a reality.
Read on to learn more about what it takes to start a brewery and how much it will cost.

Location Matters

First, you need a location. Where you open your brewery makes a big difference. It could be really expensive in a popular area or less costly somewhere less crowded. Be ready to spend a lot, possibly from $100,000 to millions of dollars.

Brewing Equipment

Next up, you’ll need the brewery supplies and gear to make beer. The cost depends on how much beer you want to make. For small-scale operations, it might be $100,000 to $500,000, but if you’re thinking big, you could spend millions.

Licenses and Permits

You can’t just start brewing, you need licenses and permits. These include federal, state, and local approvals.

The price of these licenses varies by location and the type of alcohol you plan to produce. Budget a few thousand dollars to several tens of thousands for licenses and permits.

Renovation and Buildout

Your brewery space might need some fixing to make it work for brewing. This can include things like plumbing, electrical work, and making sure the place has proper ventilation. Depending on how much work is needed, this could cost you anywhere from $50,000 to $500,000.

Staffing

You can’t run a brewery on your own. You’ll need a team, including people to brew the beer, serve it, sell it, and handle the paperwork. The cost of paying your team varies depending on how big your brewery is.

Marketing and Branding

People need to know about your beer! This means creating a brand, making a website, and advertising. Costs can range from a few thousand dollars to hundreds of thousands each year.

Ingredients

Good beer requires good ingredients like grains, hops, and yeast. The cost depends on how much beer you make and what recipes you use. Be ready for an ongoing expense here.

Distribution

Once you make the beer, you’ll want people to taste it. This can mean setting up a taproom, selling kegs, or putting your beer in bottles or aluminum cans. Costs depend on how you choose to sell your beer.

Contingency Fund

Life is unpredictable, and the brewing world is no different. You’ll want to have some money set aside for unexpected expenses, like when brewery equipment breaks or unexpected legal issues pop up. Plan to save around 10-20% of your budget for this safety net.