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"Home Brewery Business": How to Get Started

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A big fan of beer, and always interested in making your own brew? More than one million Americans are home brewers, whether pure hobbyists or professional. Many successful brands, such as the famous Samuel Adams, Sierra Nevada, and Steelhead started out as a home brewery, so you definitely have a chance.

However, the competition is quite tough with roughly one and a half new brewery opening every single day, and the failure rate can be quite high. Starting a home brewery doesn't have to involve a big sum of investment, and the technical know-how is easier than you thought it would be. Once the business is established, you can have a very exciting business with tons of earning potential.

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Interested to start your home brewery? Here are a few tips to help you:

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1. Startup Investment
To start, of course, you will need a homebrew kit, a small scale starter kit can cost you as low as $50, and you will also need the ingredients that will cost you around $25 for 5 gallons of beer, roughly 50 servings. Maintaining costs will be the key in this business, so manage your equipment cost as low as you can. Many established manufacturer sell homebrew kits, such as Northern Brewer, Midwest, Morebeer, Mr.Beer, and many others. Once you're more experienced and ready to go pro, manufacturing your own kit will be an option, and can save you a lot of costs when done right, as well as making your own recipe extracts. You can start with below $2,000.

2. Finding your Recipe
The core of this business is, of course, your recipe, and you will need to invest a significant time and effort until you find your secret recipe. Many resources are available both online and offline, and learning a lot of recipes will help you find your unique one.

3. Licenses and Market
The homebrewing process itself won't require a special permit, at least in the U.S., as all 50 states allow 100 gallons/person/year in a household. Selling your homebrewed beers, however, will require a license from U.S. Department of the Treasury’s Alcohol and Tobacco Tax and Trade Bureau (TTB), check for an online application process here: www.ttb.gov/ponl/permits-online.shtml

4. Marketing
Joining (and winning) a homebrew competition will help your reputation and marketability. Once you got your permit, you can sell online and offline through many channels. However, a relatively new startup Noble Brewer (www.noblebrewer.com/) can distribute your homebrewed beers nationally even if you don't have the required permit. Check them out and see how their business model appeals to you, it can be a good start to promote your products.

Opening your own bar will certainly be an option, and you can sell beers with more premium price. However, the cost of opening a bar will be relatively high.

Earning Potential

The average price of beer in a store is $1.4, meaning selling 3000 beers a month or 100 a day will net you an earning of $4,200 per month or $50,400 annually. With every American consuming roughly 190 pints of beers every year, it is certainly a manageable number.

Managing manufacturing cost as well as marketing strategy will be the key to success in this business.