new to the AHA forum here, its been interesting reading around a bit. I am currently in the infancy of planning a brewery, and I was wondering if any of you had heard of leasing brewing equipment? I am having a slow start to raising capital, and want to spend my dollars wisely… I would appreciate your thoughts and expertise.
Truth is that I am not aware of anybody leasing brewing equipment.
The only thing that you can lease are kegs.
Keg Credit is the name but I did not ask for quite.
You might be able to lease an existing brewery. One of the local breweries here took over the equipment of a failing brewery and I know they lease the building and I’m pretty sure they are leasing the equipment as well. Not cheap, by any means.
Part of the plan in his alternating proprietorship (or partner brewing or whatever it is), according to Jamil, is to ultimately have his own brewery. I think he actually had to show that as part of the plan in order to get the AP approved in California.
+1. I have talked to too many contract brewers who say they haven’t made a dime. contract brewing really is about marketing than brewing anyway. In fact I think it has very little to do with actual brewing. So you came up with a recipe. Big deal.
The “alternate proprietorship” at least gives you some control over the brewing part.
Thanks for the replies. Aside from the concern that contract brewers really don’t make a dime (which is quite a valid concern!) its not really an option for me… I am in N. Utah, and there are not a whole lot of options. There is however an emerging craft beer scene here, though it is IMO greatly underserved and stifled by some tricky state legal issues… most of what we have is a few ok brewpubs, one micro production and a larger micro/brewing cooperative… I am looking to open a 15bbl production brewery and am trying to cut down on the stainless bill with out compromising quality/efficiency - maybe a pipe dream.
I don’t know about Mikkeller or stillwater but Pretty Things doesn’t do contract brewing. They do an alternate proprietorship. I don’t think the implication was that AP doesn’t make money, jsut that CB doesn’t
Ah, that might be the case for all of them. I was under the impression that you had some ownership with alternate proprietership, for some reason. Never mind.
Generally, the proprietor of an existing brewery, the “host brewery,” agrees to rent space and equipment to a new “tenant brewer.” Alternating brewery proprietorships allow existing breweries to use excess capacity and give new entrants to the beer business an opportunity to begin on a small scale, without investing in premises and equipment.
Scmaltz Brewery Company started out contracting and was making enough money to expand pretty big. It looks like they’re successful with the Hebrew beer line and the Coney Island beers.
The guy started out wanting a few cases as a gag for presents for relatives and realized there was a minimum batch size of 10 or 15 bbls.
Not saying this is the case but: if you can prove the business is viable via contract brewing you can probably get investors/bank loan. Not the same thing as bankrolling the expansion. I know for certain a contract brewer that has done that.
I don’t really understand contract brewing. It seems to me either you’re selling your beer in-house, or you’re distributing it to other retail channels. So you’re acting as a marketing company as well as a bar and/or a distributor. It seems like it’d be more profitable to just be a bar or a distributor and sell brands that are already established instead of spending the time/money/energy developing your own brand. Am I missing something?
on top of this, think about the states that are not allowed to self distribute. In that case your only job is marketing. Better hope you have a graphic designer who will work for beer.