There are many types of breweries, each with their own advantages and disadvantages. As an entrepreneur, the type of brewery you choose to start will depend on a variety of factors, including your location, the types of beer you want to brew, and your budget. In this article, we’ll discuss the different types of breweries, the taprooms and beerpubs that support breweries, and offer a variety of options to help you decide which is the best fit for you.
Production Brewery/Macrobrewery
Production breweries, also known as macrobreweries, are the largest type of brewery. They typically produce large quantities of beer for mass distribution. In order to brew on such a large scale, production breweries have a vast array of equipment and staff. They also require a large amount of space, which can be expensive to rent or buy.
Advantages:
- Ability to produce large quantities of beer
- Ability to distribute beer to a wide geographic area
- Ability to sell beer directly to consumers at a taproom or brewpub
Disadvantages
- This structure requires a large amount of space and equipment
- Requires a large staff of employees
- Requires a large investment to set up and operate
To qualify as a production brewery, your brewery must meet the following criteria:
- Produce more than 6 million barrels of beer per year
- Sell more than 25% of total beer production out of state
- Required to have a taproom or brewpub on site
Some well-known global production breweries include:
- Anheuser-Busch
- AB InBev
- Carlsberg
- China Resources Snow Breweries Ltd.
- Heineken
- MillerCoors
Regional Breweries
Regional breweries are similar to production breweries, but they produce lower quantities of beer and focus on distributing their beer within a smaller geographic region. Regional breweries may be craft breweries by producing distinctive flavors and unique properties. Regional breweries save on shipping costs and maintain a closer relationship with their customers. Regional breweries often have a taproom or brewpub where consumers can buy beer directly from the brewery.
Advantages:
- Ability to produce a large quantity of beer
- Ability to sell beer directly to consumers at a taproom or brewpub
- Regional recognition for distinctive beer
Disadvantages:
- Requires a large amount of space and equipment
- Requires a sizable staff of employees
- May be expensive to set up and operate
In order to qualify as a region brewery, you must meet the following criteria:
- Produce between 2 million and 6 million barrels of beer per year
- Sell more than 50% of your beer within your state
- Required to have a taproom or brewpub on site
Some famous regional breweries include:
- New Belgium Brewing Company
- Sierra Nevada Brewing Co.
- Boston Beer
- Duvel Moortgat
- CANarchy
- Bell’s Brewery
- Artisanal Brewing Ventures
Craft Breweries
Craft breweries are independently-owned breweries that produce a limited quantity of beer. They typically focus on brewing unique or innovative beers, as opposed to mass-produced types. Craft breweries often have a taproom where consumers can buy beer directly from the brewery.
Advantages:
- Ability to brew unique or innovative beers
- May be able to sell beer directly to consumers at a taproom
- Reduced overhead costs compared to larger breweries
Disadvantages:
- Limited production capacity
- May have difficulty distributing beer to a wide area
In order to qualify as a craft brewery, you must meet the following criteria:
- Produce up to 5,000 barrels of beer per year, depending on state law
- No more than 25% of craft beer can be sold outside of the state
- A taproom or brewpub may be on site
Some well-known craft breweries include:
- Yuengling
- Gambrinus
- Stone Brewery
Microbreweries
Microbreweries are among independent breweries and they produce smaller quantities of beer in production. The typical microbrewery produces less than 15,000 barrels of beer per year. A microbrewery must sell 75% or more of the beer produced off-site.
Advantages:
- A large diversity of beer flavors
- Allows consumers to try a new beer
- Small brewery invites a community environment
Disadvantages:
- Limited distribution
- Limited to beer stock on hand
- Small to mid-sized consumer recognition
Nanobreweries
Nanobreweries are even smaller than microbreweries, typically producing less than 200 barrels of beer per year. They are independent breweries, producing beer that has distinctive flavors and unique properties. Nanobreweries are often focused on the quality of the beer produced and enjoy artisanal experiences with customers. They may or may not have a taproom where consumers can buy beer directly from the brewery.
Advantages:
- Ability to brew unique or innovative beers
- May be able to sell beer directly to consumers at a taproom
- Reduced overhead costs compared to larger breweries
Disadvantages:
- Limited production capacity
- Limited distribution
Brewpubs
A brewpub is a type of brewery bar that sells beer directly from the brewery storage tanks to consumers visiting the site. The tanks are often in sight of the brewpub through a large viewing window, which adds to the originality of the experience for consumers. Brewpubs may sell other alcoholic beverages, as well, depending on licensing from the state. In addition to beer, brewpubs often sell foods that compliment craft beers.
Advantages:
- Ability to brew unique or innovative beers
- Ability to sell beer directly to consumers at a taproom
- Ability to increase profits via food sales
- Offers a distinctive and authentic environment for beer consumption
Disadvantages:
- Limited production capacity
- Small distribution area
- Must have employees for food service
Taprooms
A taproom is a type of bar that specializes in selling beer from a particular brewery. Taprooms often have a small brewing operation on site, visible to consumers in the taproom. Food is not served in a taproom, as the emphasis is on beer and varieties of beer. It is not unusual for brewery owners and staff members to engage with consumers in lively conversation while in the taproom.
Advantages:
- Ability to brew unique or innovative beers
- May be able to sell beer directly to consumers at a taproom
- Offer distinctive experiences for consumers.
Disadvantages:
- Limited production capacity
- Narrow distribution capability
Contract Brewing Company
A contract brewing company is one that contracts with other companies to brew their beer. Contract brewing companies often have a taproom where consumers can buy beer directly from the brewery.
Advantages:
- Ability to brew unique or innovative beers
- May be able to sell beer directly to consumers at a taproom
- Production of craft beer without associated costs
Disadvantages:
- Limited production capacity
- Distribution is not available
Conclusion
As is obvious, the types of brewery are divided into various categories and sizes, with corresponding details that gives each type its name and function. Each type of brewery has its own advantages and disadvantages and some types are more profitable, while others offer the satisfaction of creating a truly unique beer for consumers who love beer. Some breweries include a taproom or brewpub, which can add to the profitability of a brewery; however, each requires specific licensing from the state in which the brewery operates. When deciding which type of brewery to start, it is important to consider your production goals, distribution plans, and overall business model.