Starting a nanobrewery is a great way to get into the craft beer industry with a smaller investment than is required for a full-scale brewery. But, even nano breweries have significant startup costs that must be considered before taking the plunge. In this article, we’ll go over some of the major expenses you can expect to incur when starting your nanobrewery.
Overhead
While some people start a nanobrewery in their homes, others choose to buy or rent out a separate space. The cost of renting or purchasing a brewing facility will be your biggest overhead expense. If you’re leasing a space, you can expect to pay $1,000 to $3,000 per month. Purchasing a property will require a larger upfront investment, but will eventually save money in the long run if you are planning on staying on the same property for several years. The cost of a nanobrewery property can range from $150,000 to $1,500,000.
Licenses and Permits
Before you can start brewing beer, you’ll need to obtain the proper licenses and permits from your local, state, and federal government. The cost of these licenses and permits will vary, depending on your location, but you can expect to spend several hundred dollars. You will need to obtain the following licenses:
- Federal Brewer’s Notice: $275
- Business License: $50 – $500
- State Manufacturing License: $100 – $5,000
- Food handler’s Permit: $25 – $100
- Liquor License: $300 – $1,500
Insurance
It’s important to have insurance for your nanobrewery in case of accidents or damage to your property. Insurance premiums will vary, depending on the size and location of your brewery, but you can expect to pay $1,000 – $2,000 per year.
Interior Design
Whether you’re leasing or purchasing a space for your nanobrewery, you’ll need to put some money toward interior design. This will include items such as, brewing equipment, furnishings, and décor. The cost of interior design will depend on the size and style of your brewery, but you can expect to spend $5,000 – $10,000.
Equipment
One of the most important expenses for your nanobrewery will be brewing equipment. Brewing equipment can range in cost from $2,000 to $20,000, depending on the size and type of equipment you need. Most nanobrewery owners buy the following equipment:
- Mash tun: $200 – $1,000
- Hot liquor tank: $300 – $1,500
- Fermentation tanks: $1,000 – $5,000
- Bright beer tank: $2,000
- Kegging system: $1,500 – $4,000
Initial Supplies and Inventory
In addition to brewing equipment, you’ll also need to purchase supplies and ingredients for your nanobrewery. This includes ingredients and equipment such as malt, hops, yeast, and bottles or kegs. The cost of initial supplies and inventory will depend on the size of your nanobrewery, but you can expect to spend $1,000 to $2,000.
Labor
If you are running a nanobrewery, you probably don’t need many employees. But, if you do decide to hire employees, you’ll need to factor in the cost of labor. The cost of labor will depend on the number of employees you have and the type of work they are doing. The common job titles and their associated hourly wages are as follows:
- Brewer: $15 – $30
- Assistant brewer: $10 – $20
- Cellarman: $10 – $20
- Packaging: $10 – 25
Marketing
Marketing is an important expense for any business, and nanobreweries are no exception. You’ll need to spend money on things like branding, advertising, and events. The cost of marketing will depend on the size and scope of your nanobrewery, but you can expect to spend $500 to $5,000 per month.
Software and Website Design
If you want to run a nanobrewery, you’ll need to invest in some software and website design. This will include things like a point of sale system, accounting software, and a website. The cost of software and website design will depend on the size and scope of your nanobrewery, but you can expect to spend $500 to $5,000.
Conclusion
Opening a nanobrewery can be a great way to get into the beer brewing business with a smaller investment. The cost of starting a nanobrewery will depend on factors like overhead, equipment, and marketing. But, if you’re careful with your budget, you can expect to spend $10,000 to $50,000 on everything you need to get started.