Writing a Brewery Business Plan is a critical step in establishing a successful and thriving venture in the craft beer industry. This comprehensive document outlines the brewery’s vision, mission, and objectives, providing a detailed roadmap for the entire operation.

The plan begins with a thorough market analysis, identifying target demographics, competitors, and industry trends to gauge the brewery’s potential for success. It then delves into the business structure, describing the management team’s expertise, the brewery’s legal framework, and its unique selling proposition.

Financial projections, including startup costs, revenue forecasts, and break-even analysis, play a crucial role in demonstrating the project’s viability to potential investors and lenders.

A well-crafted Brewery Business Plan not only acts as a guide for strategic decision-making but also serves as a persuasive tool to secure funding and partnerships essential for turning the brewery’s aspirations into a prosperous reality

How do I write a Brewery Business Plan?

Crafting a Brewery Business Plan is a dynamic roadmap, serving as a constant guide to steer your business in the right direction. When approaching its creation, adopt a well-organized framework that offers a clear journey, making it investor-friendly and appealing to financial lending institutions for potential funding. A professional and easily navigable layout is essential, lending credibility to your vision.

As you fill each section, remember to establish short, medium, and long-term goals to outline the brewery’s growth trajectory. Always prioritize the beer’s quality in every decision-making process, ensuring a consistent production of top-notch brews that will bolster the effectiveness of your plan.

By keeping the focus on excellence, your Brewery Business Plan becomes a compelling tool in securing the success of your venture.

Table of Contents for your Brewery Business Plan

Section One

Executive Summary

• Include a summary of the entire plan in this section, which is best written at the conclusion of the planning process.
• Business objectives: Do you want to build a brand to sell beer or are you trying to make a life for yourself and your family?
• Financial summary: This is ideally prepared at the very end to prove the project’s viability and to identify the returns and necessary finance.

Owners Background

Section Two

• What made you decide to open a brewery?
• Prior employment: It’s a good idea to briefly discuss your prior employment and the events that led you to current strategy.
• Qualifications and education – This information is useful for attracting investors or exploring funding opportunities.
• Training – This is to indicate any training needs you may have for managing a brewery, any specific brewing credentials you may have, or whether you have been an active homebrewer. You can ask for assistance from brewing consultants.
• Hobbies and interests provide some additional information about the project’s creators.
• Additional pertinent data

Products and services

Section Three

• What will you be selling? Look at packaging options like keg & cask, bottles, and cans and decide what route you want to take your packaging in. Is it a brewery tour for a tourist attraction or is it only production of packaged beer? You could want to offer white label brewing, so consider all your options for income. In a brewpub setting, you may effectively sell directly to the end customer at the largest margin by selling the brewing experience.
• What kinds of beers and brewing experiences are you intending to sell, please? The majority of breweries focus on a core range of products and create seasonal specials to complement it. However, there are also breweries that concentrate in particular beer styles, such as barrel-aged beers, lagers, or IPAs.
• Describe the various products and services you plan to offer. Will you offer packaged beer to independent off-sales or will you be attempting to sell your beers as keg on trade? If you plan to work with the “multiples”—which includes, for example, big-box supermarkets—this is something to take into account. Will you distribute your products directly or will a partner in distribution handle that for you?
• If you are not planning to sell your products at the beginning of your business, explain why, when you will begin, and how the business will finance this period. This is especially intended at individuals who make beer styles that take a long time to age. I’m not talking about a 7-week lager, but rather long-term barrel-aged beers or lambic that can take years to develop.
• Legal structure – Are you forming a limited company or will this be treated as a sole trader? VAT registration should also be considered.
• Brewery Concept – There are other possibilities, including hybrids, that you may wish to examine. We’ve worked with brewpubs who sell direct, as well as brewers who are brewing and completing their own distribution. Breweries that manufacture beer for distribution. Breweries that specialise in grocery sales and beer subscription programmes.

The Market

Section Four

• Identifying and categorising your customers, such as individuals, distributors, and businesses. Individuals will need to conduct market research to determine demographics before developing beer types to target them. If you are not going to self-distribute, you will normally want anything in the range of 15-25% percent depending on who you hire.
• Describe your average client. Examine craft beer marketing trends in your area, as well as the distribution of craft beer spend and consumption rates.
• Where are your consumers located? Are they local or international? Will you concentrate on your local market or will you seek to export?
• What motivates your customers to purchase your beers?
• What is your unique selling point (USP)?
• How will you achieve proper distribution and marketing?
• What services do you provide to assist people choose your brewery?
• What is your backstory, and how will you explain it to consumers so that they will buy your beer?
• Have you already sold beer?
• Do you have customers who are eager to purchase your goods or service?
• Further information

Market Research

Section Five

• Key findings from desk research examining the category, customers, and market trends. In the UK, there are over 3000 breweries, whereas Ireland currently has around 150, indicating that Ireland is still a young market with room for large-scale expansion.
• Key insights from field research – visit other breweries to observe what the competition is doing; this will also help you with your SWOT analysis.
• Key conclusions from trading simulations and identifying opportunities and potential problems. Have you taken part in recipe development and solicited feedback from reliable sources? Pilot batches are an excellent way to get started.
• Your brewery’s location. Location is vital for various reasons, including whether the premises are suitable for planning and approvals and whether you have the necessary utilities, such as three-phase power and a reliable water supply. If your brewing model requires it, premises are also significant for costs and foot traffic.
• Further information

Marketing Strategy

Section Six

• What you will do – there is so much you can do in marketing now, but it must begin with a backstory and a brand identity. This content would be best layered in a multi-column table. I would recommend the following: Media Pack, SEO-focused website, and blog included. Social Media Channels Make sure you protect all of your handles across all platforms before launching.
• Videos in digital format to communicate your narrative. Merchandise for increasing brand awareness and visibility. Mailing lists and event planning to engage your audience on multiple levels
• Why you chose this strategy – column 2 explains why you chose that specific style of marketing.
• How much will it cost – enter the cost in column 3 to calculate the expense
• Further information

Competitor Analysis

Section Seven

• Competitors’ table
• SWOT Evaluation
• Competitors’ strengths and weaknesses
• Opportunities
• Threats
• One-of-a-kind selling point
• Further information

Operations and logistics

Section Eight

• Production – In my professional opinion, a Brewiks Microbrewery brewing system produces the greatest results.
• Customer delivery – If you are dealing directly with customers, you will require your own transport, or you can hire skilled and authorised hauliers.
• Payment terms and conditions – proforma or credit terms? How will you carry out due diligence checks and manage this if you grant credit?
• Providers – Geterbrewed is a one-stop shop for brewing supplies and ingredients.
• Premises – Planning authorization, layout in an appropriate manner to facilitate production. Ascertaining that professional drainage and flooring have been built, as well as food safety regulations, have been considered. You can get advice from your local EHO (environmental health officer) on what they would recommend. It is preferable to have three-phase electricity or a generator, and you must also have a reliable water supply.
• Itemise all of the equipment with a product description and pricing.
• Transport
• Legal requirements include light industrial planning, breweries and wholesale licences, a HACCP plan, and EHO approval.
• Insurance necessities
• Management and staff – labour costs, for example, a brewer’s average compensation is around £22,000
• Further Information

Costs and pricing strategy

Section Nine

• Price of recipes – Considering grain, hops, yeast, electricity, labour, packaging, and duty. It is critical to obtain a cost per unit in order to determine the exact profit margin.
• Identifying and projecting the various revenue streams
• Building labour costs
• Brewery equipment costs
• Identifying energy operating expenses, such as price per kwh
• Identifying labour operating costs – will you use contract packagers or invest in high-speed packing equipment?
• Why your company will succeed.

Your market research will determine what price independent craft beer is being sold at in your area, for example, £3.00 per 330ml can, 20% will be VAT, depending on the abv the duty to HMRC will be for example, 0.14p, the retailer will want 35%, the distributor will want at least 15%, so you can work that back for forecasting. If we brew 2000 litres of a 4.5% IPA utilising contract packagers for 330ml cans with no volume discount, the costs are as follows: 0.47 canning & packaging, 0.14 duty, 0.12 ingredients, 0.05 labour, 0.03 electricity per unit = 0.81 per 330ml production cost. If we sell to a distributor at 1.36 + VAT, our gross profit margin is 39.7%.

Recipe Example for an IP

Lee Jones

Business Finance Expert at PDQ Funding | + posts

Lee Jones is a seasoned Business Finance Specialist with over two decades of invaluable experience in the financial sector. With a keen eye for market trends and a passion for helping businesses thrive, Lee has become a trusted advisor to countless organizations seeking to navigate the complexities of finance.

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