MicroBrewr 090: State of the podcast.

MicroBrewr 090: State of the podcast

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Welcome to MicroBrewr podcast. Where we talk about everything craft beer related, but especially for if want to start your own microbrewery or take your existing brewery to the next level.

As usual, I’m Nathan Pierce, the host of MicroBrewr Podcast.

So I just want to give you a short update today. This is going to be kind of a “state of the podcast” address to let you know some recent developments in my life that could potentially affect the future of MicroBrewr.

So I just want to be transparent and honest and let you know what to expect.

This is going to be just a short review of the past year for MicroBrewr and also an update of my plans to start a brewery, because some people ask about that. Myself wanting to start a brewery, has sort of become the premise of a lot of MicroBrewr, so I’ll talk briefly about that.

MicroBrewr in 2015

Before we get to that, let’s sort of recap the last year of MicroBrewr. I want to use this time and sort of step back to reflect and see what sorts of lessons we have gotten from the last year of learning how to start a brewery.

At the end of 2014, on New Year’s Even we had a similar episode, the year in review episode. It was a good time to reflect and project on the future at the time of MicroBrewr. That was episode 43 of the podcast, I had done 30 episodes since taking over for MicroBrewr founder Joe Shelerud. Now this is episode 90, so we’ve done 47 episodes since then.

We started off the year with episodes of MicroBrewr Podcast organized sort of in series. We had series on:

Among these series we had other interviews about

So we’ve learned a ton of great info. Lots of things just never would have occurred to me.

The sense of community in the craft beer industry is really prolific and prevalent. Community really is exemplified the most when the business is organized as a cooperative. There a few ways that can happen, like a consumer co-op or a worker owned co-op, but either way, it’s all about people working together to help everyone out. Costs as well as profits are spread out more evenly, everyone contributes and everyone has a sense of ownership and pride. So it really brings out the best work, the best product quality, and the most benefits for a larger number of people.

Anyway, it was really cool to see how much the co-op movement is growing within craft beer. Just through the course of this past year, there are a lot more co-op breweries starting all over the country.

Another thing I have learned is that cider is really cool! We started the gluten-free series with Bard’s Tale Beer Company, but then we went into cider and talked with Common Cider Company, 101 Cider House and Wandering Aengus Ciderworks. Some of the stats we heard about the growth of cider, even just that cider was way more popular than beer in the U.S. before Prohibition, is pretty cool. The growth alone, from a business standpoint, makes you gotta look. But something that stands out the most for me is how cider is sort of closer to a natural product, kind of the way wine is viewed in that regard, but cider attracts the cool, open-minded, experimental people of the craft beer world. So it’s like the best of both things. And that’s really attractive to me. The gluten-free aspect is a bonus because some people in my life are allergic to gluten. I can eat gluten, but it’s kind of a bummer to think they can’t enjoy most beers that I could have.

Anyway, we’ve learned so much this year. It’s so rewarding to receive emails from literally around the world telling me how much you have learned from the podcast and the blog, telling me your cool stories of starting your own brewery, or just thanking me for doing this.

I do put in a lot of time on MicroBrewr. Maybe someone else could do it more efficiently, I didn’t realize when I took this on that I was getting into the whole blogging world. Wow, what an eye-opening experience that has been.

There’s a whole segment of the population with online journals or full-on internet media outlets. Some people do it for fun on the side, some people make an ok living at it by itself. Believe it or not, some people are bringing in very lucrative incomes from blogging and podcasts and such. I am not one of those people.

With as many hours as I put in, MicroBrewr does make some money. It’s a little bit more than the expenses of just keeping it online.

MicroBrewr in 2016

So, this is where I’m going with that, I did get a job. It is not a job in the craft beer industry. It is a full-time job. I will be paid a good wage and I won’t descend into oblivion of despair.

I signed an offer letter with the City of San Francisco. I’ll be doing grants work, similar to what I was doing at my last job, where I worked for 7 years, so that’s where I’m most skilled in the workforce. And it feels really good to be gainfully employed again, and especially putting my skills to work, even though I haven’t yet started working. Hopefully by the time you hear this, I’ll be filling out the paperwork, going through orientation and all that stuff. I’m eager to do my best work and give them all I can to make the City of San Francisco an even better place. It’s a 3-year position and who knows, maybe continue after that.

I’m excited—and a little intimidated—to be moving to San Francisco. I’ve never lived in a big city before. It’s fun there. It’s diverse. It’s exciting. There are a lot of breweries, and cideries, and even a few distilleries. Not to mention the ocean and the Golden Gate Bridge and lots of bike lanes all these exciting things.

So please wish me luck, wish me well. I don’t know exactly when or if ever I’ll be able to start a brewery. Maybe if I don’t get to continue on with the City after 3 years, I’ll get to open a cidery then. Or maybe I’ll keep working for the City of San Francisco and open a brewery on my spare time like Marta Jankowska from ChuckAlek Independent Brewers. In the meantime, I have to give my employer my best work and this is my priority.

So this means, I’m seriously wondering how I’ll be able to keep MicroBrewr going.

The whole point of MicroBrewr was to learn how to start a brewery. And I learned some things.

If 2014 was the year of the nanobrewery for me, 2015 was the year of cider for me.

Before I started doing MicroBrewr Podcast, talking to brewers, brewery owners, and other experts from the craft beer industry every week, I was not open to a nanobrewery as a business model. I just thought it wasn’t profitable. But now I’ve talked to enough people who are making profits, that now I see it can be a good way to get off the ground, maybe just keep being a neighborhood brewery thing, but hopefully a stepping stone to larger things.

I also wasn’t open to cider. I thought it was too small of a niche, kind of a novelty, and just not that interesting. Now I see that the segment is growing explosively, and compared to other countries the U.S. has a ton of growth potential. Even just looking at where the U.S. was before prohibition, it looks like the U.S. cider market is not something to ignore. And people are doing some interesting things with cider, being really creative with it, bringing back some really neat recipes and fruits that almost disappeared and even doing brand new stuff that has never been done before with cider.

So if I have to stop producing new content on MicroBrewr, I hope I’ve learned enough to start a brewery—after 90 episodes I hope I’ve learned enough! At some point I have to stop learning and start doing. Hopefully there’s enough content to help you open the brewery of your dreams—maybe sooner than I. I hear from people who just found the podcast and they’re burning through an episode every day. They don’t have to wait a week for a new episode to come out like me and you who have caught up through the current ones.

Ok so where were we?

MicroBrewr in the future

I want to keep doing MicroBrewr, I really do. I don’t want to let you down. It’s a lot of fun. If the episodes don’t come out on time, every Tuesday as they have been going, well, you know why. Work is my priority going forward.

Maybe I can try and find some help to take some of the tasks and make it easier to keep going. I don’t know, it’s a whole new world for me. I’m going back to work full-time for the first time in 2 1/2 years. And I’m moving to the big city and all of that. it’s going to be a huge adjustment in lots of ways.

I just looked back at that year in review episode, from New Year’s Eve last year, and I saw that I was looking for jobs all over, preferably a job in craft beer, but even a job in anything. And now I’ve got that. So we’re moving forward.

We’ll see what the future holds. Start your breweries, send me emails, I will live vicariously through you! We will drink good beer! Life will be good!

 

Image showing San Francisco. by Kathryn, on flickr (CC BY 2.0) was modified from its original state.

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MicroBrewr 089: Make whiskey from high-quality craft beer with Seven Stills of SF

MicroBrewr 089: Make whiskey from high-quality craft beer

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Over a few beers, Tim Obert’s friend from college, Clint, told him that whiskey is actually made from cheap beer. They got to thinking, why not make whiskey from high-quality craft beer? Thus was born Seven Stills of SF, in San Francisco, California.

“I wish I would’ve taken on investment sooner.” [Tweet This]

 

Whiskey is a distilled spirit made from the fermented mash of usually malted grain, like beer. At first Tim and Clint were homebrewing in the backyard of Clint’s parent’s home, and “distilling that out, not really with the intention of starting a company, but just to see what happens.”

“Distilling,” says Tim, “is a hundred times simpler than brewing.”

To make whiskey from beer, they increase the temperature of beer to evaporate ethanol. The gaseous ethanol is then cooled to condense it back into a liquid. Different temperatures and different points in the process evaporate different material and different quality flavor.

“After a while,” recalls Tim, “Clint and I ended up having 30 different whiskeys and they were totally unique and were all, in my opinion, outstanding.”

“Everything that I had researched said that the base beer doesn’t have an impact on the flavor of the whiskey, which we’ve realized is just completely untrue. We can distill something like a chocolate oatmeal stout for instance, versus and IPA and there is no way that you could not tell the difference,” Tim laughs. “They’re completely different whiskeys.”

RELATED: MicroBrewr 047: A forty-year career at the epicenter of craft beer

Clint contributed the money he had saved for grad school, Tim pitched in a portion of his life savings, and they started Seven Stills of SF. For 2 years, they had a contract brewery make the beer. Then they had a contract distillery use the craft beer to make whiskey.

Seven Stills of SF currently produces about 120 cases of whiskey per month. They’re trying to increase production by 8 times.

They will be able to do it, now that they have their own 15-BBL brewhouse with fermenters and bright tanks. And they recently bought the largest still in San Francisco, a 300-gallon pot still.

They also have an entirely other line of vodka and bitters. Whereas whiskey is made from various grains, vodka is made from corn. Most of their bitters are made from vodka.

“Just for consistency sake, it makes sense to keep the 2 separate,” says Tim. “That’s part of the reason we hired different designers to work on the [labels on the] bottles.”

With so much expansion and growth, Tim says one thing he wishes he would have done differently was taken on investors sooner.

RELATED: MicroBrewr 067: How to find investors for a brewery

“We’ve been trying to grow off of just what we put into the company organically for the last 2 years, and it’s just painfully slow.”

Getting investors urged Seven Stills of SF to:

  • Develop a business plan
  • Calculate budgets
  • Get organized
  • Get something bigger off the ground

Part of having investors is putting together an advisory board. A formal advisory board is a set of people to whom you can seek advice on the business. Tim recommends finding experts in different areas such as:

  • Banking
  • Design
  • Marketing
  • Social media

“I definitely wouldn’t recommend giving up too much equity right off the bat,” advises Tim, “but give them something, and incentive instead of just getting counsel from them.”

“Just kind of building a team you can go and ask questions about when you have something come up. Because, I mean, it’s kind of stupid to keep reinventing the wheel with all this stuff.”

Brewery specs:

Kettle size: 15 BBL.

Size and quantity of fermentation tanks: 2, 15-BBL fermenters.

Size and quantity of bright tanks: 2, 15-BBL bright tanks.

Annual brewing capacity/last year’s production: 3,120 BBL/year of beer. 4,836 gallons/year of whiskey.

Square footage: 4,400 sq. ft.

Years in operation: 2 years (opened August 2013).

Listener question:

From Jimmy Batte: What’s the best advice you have been given or have to give since operating a brewery?

Can’t-go-without tool:

Pallet jack.

Book recommendation:

Check out the entire list of recommended books, click here.

Your Free Audio Book

An upcoming beer style:

Craft beer whiskey

Other resources:

You can reach Tim Obert and Seven Stills of SF at:

Sponsors:

Please support our sponsors.

Support MicroBrewr

Help keep MicroBrewr on the air. CLICK HERE for ways you can help.

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MicroBrewr 088: A brewing pedigree from Kansas to Texas with BrainDead Brewing

MicroBrewr 088: A brewing pedigree from Kansas to Texas

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Andrew Huerter comes from a family of brewers. His parents were founding members of the Kansas City Beer Meisters homebrew club and his dad won a blue ribbon for one of his beers. Now Drew is following in their footsteps. He worked at a handful of breweries and before helping put together BrainDead Brewing in Dallas, Texas.

“Find a way into an operating brewery.” [Tweet This]

 

Some of the audio was lost due to technical difficulties with the call. Here are notes from the audio podcast and the parts that got left out.

One of the biggest difficulties was the city permitting processes. The city was concerned about the explosive hazards of grain dust.

BrainDead Brewing was required to submit a certified engineer’s report verifying that the explosive hazard was below the threshold.

Just a few years ago in 2011, there were only 3 breweries in North Texas. Now there are 40, and just 2 independent brewpubs in Dallas-Fort Worth area, says Drew. Perhaps the city is experiencing growing pains from and industry that has grown a lot in a very short time.

RELATED: MicroBrewr 085: Starting a brewery is a full-time job

Drew emphasizes the important of details when budgeting for your startup brewery. His biggest mistake was missing a line item on the budget.

Although they had budgeted for the purchase of a glycol chiller, they forgot to include installation costs. That amounted to a $50,000 mistake.

On the other hand, the best idea was to start out with a focus on making ales. It’s a proven model, says Drew, but these days it’s done often. Drew says ales are easy drinking and really approachable, so BrainDead Brewing could sell a lot of them to establish themself in the market.

Listener question:

If you could ask one question to every brewer or brewery owner, what would you ask? Let me know.

Can’t-go-without tool:

1.5-hp single phase pump by CPE Systems Inc.

Book recommendation:

Check out the entire list of recommended books, click here.

Your Free Audio Book

An upcoming beer style:

Pilsner

Other resources:

You can reach Drew Huerter and BrainDead Brewing at:

Sponsors:

Beer

Support MicroBrewr

Help keep MicroBrewr on the air. CLICK HERE for ways you can help.

Subscribe on iTunes             Listen to Stitcher

MicroBrewr 087: Differentiate your brewpub with unique menu items with Nexus Brewery

MicroBrewr 087: Differentiate your brewpub with unique menu items

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At 55 years old Ken Carson tried to get a job at a brewery, but nobody would hire him—even for volunteer. So with no brewing nor restaurant experience, he started Nexus Brewery in Albuquerque, New Mexico.

“I fell in love with the concept of beer and community.” [Tweet This]

 

Ken did have some business experience: he was president of a small bank. He joined the bank in their first year and helped it grow from $7 million in assets to $150 million and 5 branches.

When Ken saw an ad for making a batch of beer at the local Kelly’s Brew Pub, he went and tried it for fun. He never knew someone could make their own beer. And he got the bug.

While working for the bank, Ken often traveled for work and always toured breweries in every city he went. After touring about 150 breweries, he though he wanted to do something different. So he cashed in the stock he had saved for retirement and convinced his wife to let him start a brewery.

RELATED: 61 Brewers Speak Out: What I Wish I’d Known Before Starting A Brewery

“So I had a good background in business,” says Ken, “but absolutely no experience in either one of these 2 businesses that I was getting into.”

Ken says there are 2 things anyone needs to start a brewery:

  • You need to know the numbers
  • You need to have good customer service

During his time at the bank, he had required hundreds of businesses to write business plans. Now he was on the other end, needing to write a business plan for his brewery. He used the online tools provided by the U.S. Small Business Administration.

“When you’re thinking customer service, it’s to produce the best beer you can,” explains Ken. “And we’re trying our best to produce the best food that we can.”

One thing the SBA materials asked was how Ken would differentiate his business from the competition. And food was one way that Nexus Brewery is differentiating themselves.

“I started seeing new breweries opening. I said, ‘This is going to be a problem if all the breweries get up here and I’m not different, I’m just like everybody else.’ So I picked a different food and made it unique.”

Nexus Brewery has what they call “New Mexican soul food,” a blend of foods from their African American heritage with local flavors of New Mexico.

They started out with 10 items on the menu, and kept adding more as customers made requests and suggestions.

Ken said it’s working out really well. “It’s distinguished us from all the other breweries in town.” It’s also helpful that they are serving a type of food that that is not normally associated with brewing industry.

Brewery specs:

Kettle size: 7 BBL.

Size and quantity of fermentation tanks: 4, 7-BBL fermenters; 2, 15-BBL fermenters.

Size and quantity of bright tanks: 7 Grundies; 6, 15-BBL bright tanks.

Annual brewing capacity/last year’s production: 650 BBL.

Square footage: 2,500 sq. ft. for the brewery.

Years in operation: 4.5 years (opened May 2011).

Listener question:

From Jeff Lennon: Why did you choose the brewpub or production brewery model? What factors led to that decision?

Can’t-go-without tool:

Victorinox Swiss Army Super Tinker Pocket Knife.

Book recommendation:

Check out the entire list of recommended books, click here.

Your Free Audio Book

An upcoming beer style:

Scottish Ale

Other resources:

You can reach Ken Carson Jr. and Nexus Brewery at:

Sponsors:

Audible

Download a free audiobook.

Audible. Download a free audiobook. https://microbrewr.com/audible

Support MicroBrewr

Help keep MicroBrewr on the air. CLICK HERE for ways you can help.

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MicroBrewr 086: The future of apple cider in America with Wandering Aengus Ciderworks

MicroBrewr 086: The future of apple cider in America

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Nick Gunn and his wife were working for her family’s winery. They had the idea to start growing apples for cider. One of the cideries to whom they were selling apples decided to close down and they offered to sell the business to Nick and his wife who moved Wandering Aengus Ciderworks to Salem, Oregon.

“Cider is a really exciting proposition for a lot of investors.” [Tweet This]

 

Now they have two brands of cider.

Wandering Aengus is the traditional brand of cider. The Wandering Aengus brand has ciders that are more astringent, more bitter, and higher in alcohol content. “For the wine drinkers, it’s something that’s interesting,” says Nick.

Anthem Cider is a lighter style for people who aren’t used to ciders. These are less acidic and have lower alcohol content. This brand is marketed toward to craft beer consumers. “Beer drinkers,” says Nick, “are much more adventurous and willing to try just about anything that’s out there.”

They package Anthem ciders mostly in kegs for sale on draft. The goal is to get the word out for distribution in smaller packaging. “It’s a pretty basic model a lot of people have used,” says Nick.

“Anthem is a little more on the adventurous side,” Nick describes. “And that’s also a part of marketing to people who like craft beer.”

In addition to straight apple cider, Anthem also has pear, cherry and hopped ciders. They’re do some progressive forays like gin and whiskey barrel-aged ciders, as well as ciders fermented with bee pollen.

In contrast, “Wandering Aengus is super traditional,” Nick says, “It’s just those apples fermented without anything else added to them. And those apples are so rare we don’t really want to mess with them in the first place, they kind of speak for themselves.”

Finding good, traditional cider apples is difficult, but Nick is pushing the market.

“Most of the old heirloom apples have been ripped out in favor for Granny Smith and other dessert apples,” he says. “We’re trying to get people to plant some newer [apple trees]. We’re trying to bring back some of the older, better flavored varieties.”

Nick’s favorite apple ciders are blends of sharp apples, bittersweet apples, and aromatic apples.

“You kind of want to blend in a little bit of sharp, a little bit of bitter, a little bit of aromatics,” Nick advises. “That’s a part of the art of cider making, is it’s a blending process. Because there’s not a lot of apples that just make a great cider straight up.”

Some of the high brix, high acidity apple varieties that they use are:

  • Golden Russet
  • Wickson Crab
  • Cox’s Orange Pippin
  • Newtown Pippin
  • Calville Blanc d’Hiver

“These heirloom sharps… is a really [high] sweetness level and acidity is off the charts,” comments Nick.

But these sharp apples don’t have a lot of tannins. Bittersweet apples contribute tannins to the cider.

Some of the bittersweet apples they use for tannins are:

  • Muscat de Bernay
  • Muscadet de Dieppe
  • Yarlington Mill
  • Dabinett
  • Herefordshire Redstreak

“Those apples taste like crap!” exclaims Nick. “They really are horrible, because they have so much bitterness.”

“I’m being evangelical about planting cider apples. That’s really the future of really high quality cider in America.”

While Nick is evangelizing about high-quality, hand-crafted, traditional ciders, a different style of cider is gaining momentum across the country. Large industrial companies are making cider with additives and diluted with water.

While the product sells well on a large scale, it is expanding the overall market and demand for cider. As the larger brands reach into previously untapped markets, they create new spaces for all cider products.

“Their cider is a lot cheaper,” says Nick. “We could never compete on price because we’re using 100% juice. But what we can do is offer a different product. And maybe that’s a graduating step for the consumer.”

RELATED: MicroBrewr 048: Package your beer cheap and easy with mobile canning

“The growth in some of these larger brands has just been astronomical because a lot of the place they’re putting cider there never even existed a cider in the first place.”

“Every single chain store, every 711, every place now has cider. Cider is on the lips of every one. It’s on TV now—it was never on TV before, like, 2 years ago.”

“Even if [cider] gets to 5 percent of the market, we will be gigantic,” Nick predicts. “Over in England, cider is around 20 percent of alcohol consumption. France is about 17 percent. So we have a long ways to go in America. We were just at 0.3 percent about 3 years ago and we’ve gotten to one percent now. So the climb now is just inevitable.”

There hasn’t been a lot of quality at quantity. And now that that is exists, distributors are staring to notice, buyers are noticing, the whole market place takes note.”

As overall demand for cider increases, and a wider variety of cider products becomes more popular, the cider companies are able make larger quantities at lower prices.

Nick’s strategy is to have meaningful impact in the markets where craft beer is already growing rapidly.

They are reaching to key cities such as:

  • Denver
  • Philadelphia
  • New York
  • Los Angeles
  • San Francisco
  • Seattle
  • Portland

“You’re starting from ground zero, you can explode easily,” says Nick.

Yet, cider producers are finding that the industry needs to mature. Particularly, there is a need for more education in cider sales.

“Finding a distributor that understands cider is really difficult,” says Nick.

At the next CiderCON, the conference for the commercial cider industry to be held in February in Portland, Oregon, the United States Association of Cider Makers will unveil the first ever cider accreditation program. The multi-level program is designed to educate “distributors, servers and others who are interested in becoming trained experts on all things cider.”

As the cider market in America evolves, the industry adapts.

“It originally started out as sweet and fruity,” recalls Nick. “I like to call it ‘cheap and cheerful.’”

Now “cider varietals are being recognized, and the quality of cider they make.”

Nick foresees an increasing appreciation of drier ciders, and even higher quality cider apples. More cider will be made from heirloom sharps, cider will be fermented drier with higher alcohol content. There will be more barrel aged ciders, and ciders with more tannins. Ultimately terroir of cider will be recognized and appreciated.

Listener question:

From Daniel Frey: What accounting system do you use or do you recommend?

Can’t-go-without tool:

Cross-Flow filter, Pall Corporation.

Book recommendation:

Check out the entire list of recommended books, click here.

Your Free Audio Book

An upcoming beer style:

North American Heirloom Cider

Other resources:

You can reach Nick Gunn and Wandering Aengus Ciderworks at:

You can reach Anthem Cider at:

Sponsors:

Audible

Download a free audiobook.

Audible. Download a free audiobook. https://microbrewr.com/audible

Support MicroBrewr

Help keep MicroBrewr on the air. CLICK HERE for ways you can help.

Subscribe on iTunes             Listen to Stitcher

MicroBrewr 085: Starting a brewery is a full-time job with Martin House Brewing Company

MicroBrewr 085: Starting a brewery is a full-time job

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Cody Martin worked in civil engineering and environmental engineering. After touring some breweries and seeing that they use familiar equipment, he asked his wife if he could start a brewery. She found work in Texas and he started Martin House Brewing Company in Fort Worth, Texas.

“Starting a brewery is a full-time job.” [Tweet This]

 

After they moved back to Texas, Cody worked full-time for 15 months to start his brewery.

“If you want to be a brewery in planning for 3 or 4 years,” he offers, “then go ahead and keep your job.”

In that time, he worked on his business plan, found partners and investors, introduced himself to local breweries, and work 20-30 hours per week for free in a local brewery.

Once the business plan was complete, they had 6 months allotted to finding investors and securing funding, and they got it done in only 6 weeks. They talked to anyone and everyone they could find or with whom they could make connections.

In the end, the owners with “skin in the game” had contributed approximately $60 thousand. Investors pitched in significantly more than that, he says. Approximately half of the capital came from friends and family, and about half came from other investors whom they had never previously met.

They were able to cut costs by doing the majority of the work themselves. “We literally built everything in this place ourself,” Cody remarks.

It helps that Cody is an engineer. They also called on old friends who gave them discount prices on skilled work.

Additionally, Cody says it very important to partner with people who compliment, rather than duplicate your own knowledge and skills.

“You need to make sure you have the team with the full talents of running a business,” Cody advises, “not just 3 brewers.”

Financially, it has worked well.

“We have zero debt,” says Cody, “so we were able to break even on that pretty quick. A few months in, we started paying ourselves a salary. And then our first full year of production, we were able to pay our investors back a little.”

Cody even had the opportunity to make a collaboration brew with one of his all-time favorite bands, Toadies.

In summary, Cody’s advice for starting a brewery:

  • Quit your job.
  • Have the support of your family.
  • Assemble a team with diverse skills.
  • Don’t buy a glycol chiller from China.

Brewery specs:

Kettle size: 30 BBL.

Size and quantity of fermentation tanks: 4, 30-BBL; 2, 60-BBL fermenters.

Size and quantity of bright tanks: 1, 30-BBL; 1 60-BBL bright tanks.

Annual brewing capacity/last year’s production: 6,000-BBL capacity. About 2,800 BBL last year.

Square footage: 9,000 sq. ft.

Years in operation: 2.5 years (opened March 2013).

Listener question:

From Sean McKeown: Do you still have the same passion for beer after doing it as a job, at a commercial level?

Can’t-go-without tool:

Zip ties, duct tape, and Milwaukee 48-22-1901 Fastback Flip Open Utility Knife.

Book recommendation:

Check out the entire list of recommended books, click here.

Your Free Audio Book

An upcoming beer style:

Sour beer

Other resources:

You can reach Cody Martine and Martin House Brewing Company at:

Sponsors:

Beer

Support MicroBrewr

Help keep MicroBrewr on the air. CLICK HERE for ways you can help.

Subscribe on iTunes             Listen to Stitcher

MicroBrewr 084: A healthy alcoholic beverage: hard cider with 101 Cider House.

MicroBrewr 084: A healthy alcoholic beverage: hard cider

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As soon as Mark McTavish could acknowledge alcohol, he gravitated toward hard cider. Later, he attended beverage management school and opened a craft beer bar in Toronto, Canada. Now in the U.S., Mark owns a cider distribution company and 101 Cider House in Los Angeles, California.

“As a cider maker, you’re not really making anything. You’re more of a custodian to the beverage.” [Tweet This]

 

Mark had a long career in the fitness business, selling exercise equipment and helping gyms get started. He is very health conscious and this comes through in his hard cider.

101 Cider House focuses on a “healthy” alcoholic beverage. All of 101 Cider products are: raw, living, and probiotic.

Some attributes of what Mark calls a healthy hard cider:

  • Wild fermented
  • A living beverage, don’t kill the juice in the process
  • Not filtered
  • No added sulfites

The hard cider market is absolutely exploding, with 500% growth in the last 3 years. Besides the general growth, Mark is tapping the health foods sector.

“From step one,” reflects Mark, “I always wanted to make a healthy alcohol.”

“Here in Los Angeles,” he says, “people are very interested in their health foods. When it comes to alcohol, a lot of people tend to check their standards at the door.”

“We have to show our ingredients in our cider,” Mark says of the labels on the bottles. “Our biggest marketing tool is to show people that we are using 100% raw fruit and doing the natural process like we do.”

They don’t add any unnecessary or unexpected ingredients to the cider, not even yeast.

“Cider is like wine,” he says. “You can press the fruit naturally, let juices sit their and do its own thing with its indigenous yeasts, and it will tell you what it’s going to do with itself.

“And if you wait long enough, it will make something great.”

Brewery specs:

Kettle size: n/a.

Size and quantity of fermentation tanks: 8, 2000-gal (64-BBL) poly tanks; 6, 275-gal (9-BBL) poly tanks; 50, 55-gal (1.75-BBL) oak barrels.

Size and quantity of bright tanks: 0. Not required as we bottle-condition and keg-condition all product.

Annual brewing capacity/last year’s production: 50,000-gal capacity.

Square footage: 7000 sq. ft.

Years in operation: 10 months years (opened December 2014).

Listener question:

From Rob Lightner: Has your brewery turned out the way you thought it would? And if not, how is it different?

Can’t-go-without tool:

Pump.

Book recommendation:

Check out the entire list of recommended books, click here.

Your Free Audio Book

An upcoming beer style:

Hopped cider

Other resources:

You can reach Mark McTavish and 101 Cider House at:

Sponsors:

InMotion Hosting

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How big should my brewery be?

How big should my brewery be?

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How big should my brewery be? How many square feet do I need for a brewery? How large of a facility should I get? As the host of a podcast about how to start a brewery I have spoken with over 70 brewers, brewery owners, and other experts in the craft beer industry. So I often hear this question from listeners around the world.

Of course you need to consider a number of factors to determine the size of your brewery. For example:

  • Size of your brew system
  • Your annual production capacity
  • Barrels of beer you plan to brew each year

Just the business model plays a major role in deciding how many square feet you’ll need for your brewery.

  • Brewpub serving only on-site consumption
  • Nanobrewery with taproom and no distribution
  • Production brewery with complete bottling, canning, and kegging lines

As you could imagine, there is no one-size-fits-all size requirement. It’s a tough question to answer, but an important answer to find out.

If your brewery is too small, you’ll be crowded for space.

“We did not anticipate the need for more cold storage or bigger brewing system,” says Patty Elliot from Pecan Street Brewing in Johnson City, Texas.

“Even though we have a big building, we don’t have a large area for Sean [the brewer] to store kegs in and we only have four serving tanks. So serving tanks have to get low enough that he could keg off, that it will fit in the keg storage area, so that he could brew another beer. So we’re constantly fighting the battle… and we’re desperately wanting to get more cold storage space.”

And if your brewery is too large, you waste precious money on the startup cost for square footage that won’t be used.

Yet, with craft beer’s explosive growth that doesn’t seem to be letting up anytime soon, you’ll likely be expanding operations not long after opening.

When MicroBrewr founder, Joe Shelerud asked 61 brewers in late 2013, “What do you wish you had known before starting your brewery?” nearly 20% of the responses were that they should have planned their expansion from the start.

“I would have built a larger infrastructure at the outset,” says Brett Tate from Dust Bowl Brewing Company. “We’ve expanded the operation and reached capacity production three times since we started brewing in 2009. We’ve now maximized what we can fit in the footprint of our current building… Our new site will, or course, have room to grow, so at least we’ve learned!”

Space requirements for a brewery vary greatly

If you read the books about starting a brewery and online beer forums, you can find magic formulas to tell you how big your brewery should be.

For example:

  • 1,000 square feet, per barrel of brewhouse running at capacity
  • 1 to 1.5 square feet, per barrels produced, per year

JVNW’s website has a lot of information and brochures with specifications and resource requirements. As a manufacturer of brewing equipment, they work with a lot of different breweries in a huge variety of configurations.

JVNW’s sizing recommendations are:

  • Complete brewery: 0.5 to 1 square feet, per barrel of yearly capacity
  • Sacked malt storage: 0.15 to 0.25 square feet, per barrel of yearly capacity

Again, a number of factors will affect the space requirements for your specific brewery and configuration. For example:

  • Size and number of vessels in the brewhouse
  • Size and number of fermentation vessels and bright tanks
  • How many batches you plan to do each week

Incidentally, JVNW says the average staff requirement is 0.75 staff per 1,000 barrels of yearly capacity. Whereas, Lakewood Brewing, the one who recommends 1,000 square feet per barrel of brewhouse, has 22 staff for about 10,000-15,000 barrel production. So about 1.76 staff for every 1,000 barrels—roughly double what JVNW recommends.

So my takeaway is just that the stats vary greatly.

Space requirements for breweries on MicroBrewr Podcast

To get a handle on exactly what the square footage requirement is for a small craft brewery, MicroBrewr Podcast listener, Akhilesh Pandey dug into the stats from the show notes.

Another podcast listener, Peter Stillmank from Stillmank Brewing Co. in Green Bay, Wisconsin, asked for these stats to get a better picture of our discussions in MicroBrewr Podcast. At episode 41, I started asking for specific statistics including: size of the brewhouse, number of vessels, annual capacity, and square footage.

For this exercise, we were concerned only with how many square feet are required for a small craft brewery.

So Akhilesh dug into the numbers and plotted them into a spreadsheet. He compared each brewery’s annual capacity to its square footage, and calculated the square footage per barrel of yearly capacity.

What were the results?

Well, we looked at the data from 20 different breweries from all over the U.S. plus one 1 in Ireland. (We had to leave out a few due to incomplete data.) Models include everything from a tiny nanobrewery in the basement of a hotel, all the way up to a large production brewery with international distribution, and everything in between. We’ve spoken with nanobreweries, brewpubs, and production packaging breweries.

If we take the total square footage for all breweries and divide it by the total yearly capacity of all breweries, it equals 0.8 square feet required per barrel of yearly capacity. This gives sort of an industry-wide efficiency, but it doesn’t really look at what each brewery is doing on an individual basis.

Craft beer is a young industry. It’s home to a wide variety of players with varying levels of experience, knowledge, and preferences. So the range of their space efficiency is extremely wide.

When we calculate the square footage per barrel of yearly capacity at each individual brewery, the maximum was 40 square feet, the minimum was 0.2 square feet, and the average (mean) was 4.6 square feet per barrel.

Square footage per barrel of yearly capacity at 20 craft breweries in the U.S.A. and Ireland:

Calculation method Square feet per yearly barrel production capacity
Maximum 40.0
Minimum 0.2
Average (mean) 4.6
Median 1.6
STD Dev. with 99% confidence 2.16
Range 39.8

That seemed kind of high. I thought maybe the average was being skewed by outliers.

So I checked the median. The median is 1.6 square feet per barrel of yearly capacity.

Median is often used to calculate skewed data sets. It sort of cancels out those outliers like the nanobrewery that uses a whopping 40 square feet per barrel produced, and the brewpub/production brewery that somehow blasts out a full barrel of beer for every 0.2 square feet they occupy.

Now, I’m not a mathematician, I don’t recall much from Statistics class. But Akhil has more insight to offer.

“The average the way you have it there,” he writes by email, “is not the right method because it does not eliminate the outlier.”

Akhil looked at the “standard deviation” (I remember that term from Statistics class) and found that those few data points that are just so far from the others, don’t really help us. They’re considered oddballs. By taking off the 3 outliers from the end, Akhil can get 99% confidence in his calculation.

With 99% confidence, we can guess that your brewery would need 2.16 square feet per barrel of yearly capacity.

So there you have it

How much space do you need for your brewery in planning or for your next expansion brewery?

First figure out how many barrels of beer you plan to be able to produce per year, your total capacity.

Then figure on needing about 2.16 square feet per barrel of yearly capacity.

Another way of looking at it, says Peter, “When you purchase your building, divide the square feet by 2.16 to figure out what the building’s [annual production] capacity is. When you reach this [production level] it will be time to move.”

Special thanks to longtime MicroBrewr Podcast listeners, Peter Stillmank and Akhilesh Pandey for your help on this post.

Image showing Blueprint by Will Scullin on flickr (CC BY 2.0) was modified from its orignal state.

 

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MicroBrewr 083: Market branding for a cider company with Common Cider Company.

MicroBrewr 083: Market branding for a cider company

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Fran Toves’ son challenged her to enter cider into the homebrew competition. After her 3 entries made it to the top 10, she figured it time to take the product to market and started Common Cider Company in Drytown, California.

“There is no need to start a cider company with a million dollars.” [Tweet This]

 

Cider is not brewed the way beer is made, but similar fermentation tanks and bright tanks are used for making cider as making beer. After the initial attention at the homebrew competition, Common Cider Company started with a 400-gallon (13-BBL) test batch that got picked up by a distributor. They grew to 30,000-gallon (1,000-BBL) batches within a couple years.

Whereas a cidery or a cider house presses the fruit themselves to make juice, a cider company buys the juice pre-squeezed. A cider usually has a base of apple juice, but it can start with other fruits. A perry is made from pear juice.

“Cider as a base,” says Fran, “is a great platform to be able to introduce new flavors.”

Fran’s background in product development for the organic food industry is helping her with Common Cider Company. She emphasizes the importance of branding.

Fran says a small company can easily spend $50,000 to $100,000 on high-quality branding design for all promotional materials. With such a significant investment, it is very important to consider your message and what your company is about. If you want to take more time to learn about your customers and find your voice in the market place, just get simple logo at first. Then budget up to $100,000 for a re-branding.

That’s the route Fran planned for Common Cider Company. “I wanted to spend some time with our customers an just spend some time in the marketplace,” she says. “before investing in the brand.”

Sample Cider Packaging

Common Cider Company packaging cans Common Cider Company packaging cans 4-pack Common Cider Company packaging bottle Common Cider Company packaging bottle

They’re keeping a logo element from the original design scheme and hiring a branding firm to re-design their message. The results have been spectacular and you can expect to see more on store shelves soon!

Fran also has tips for the today’s listener question about budgeting and profit projections:

  • Decide where you are and where you want to be.
  • Put a budget for every core area including, branding, legal fees, sales staff, materials, and all other details.
  • Decide what you can spend on each category of your budget.
  • Use checklists so you don’t miss details.

“Your suppliers will give you pretty good information as far as what your cost of juice is and your yeast and any other adjuncts that you want to add to your product,” Fran suggests. “And that goes from your raw material to your packaging.”

As for projecting profits, Fran always advises starting with small batches. She suggests 500-gallon batches or 1,000-gallon batches at the most. Any larger, and you’ll have too much money tied up in product and it will take too long to sell.

After you sell a few batches to earn some money and build demand, then you start doing larger batches.

“It’s important to start small,” Fran advises. “Just like any business, you’ve gotta kind of walk before you can run.”

Listener question:

From Texas Rüegg: Where  do you find real accurate numbers to estimate cost of operation? I keep building spreadsheets with hundreds of calculations, but at best they are just guesses. I want to be conservative with my numbers and be sure that even the worst case will actually make money. So where do you find real data?

Can’t-go-without tool:

Pump.

Book recommendation:

Check out the entire list of recommended books, click here.

Your Free Audio Book

An upcoming beer style:

Dry ciders

Other resources:

You can reach Fran Toves and Common Cider Company at:

Sponsors:

Audible

Download a free audiobook.

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Help keep MicroBrewr on the air. CLICK HERE for ways you can help.

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MicroBrewr 082: Gluten free beer for a large market with Bard's Tale Beer Company.

MicroBrewr 082: Gluten free beer for a large market

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Brian Kovalchuck has a background in finance and marketing and came to beer late in his career. After he helped with the turnaround of Pabst Blue Ribbon, Brian became CEO of the gluten free Bard’s Tale Beer Company in Minneapolis, Minnesota.

“I wish I had been in the beer business a long time. It’s a great business to be in.” [Tweet This]

 

In the U.S. there are approximately 2 million people with Celiac Disease, an autoimmune disorder that causes damage to the intestine from eating gluten. There are approximately another 6 times that number of people who are gluten-intolerant or voluntarily exclude gluten from their diet.

“Gluten is a protein found in most common grains,” explains Brian, “wheat, rye, barley, and sometimes oats gets thrown into that because of cross-contamination.”

The founders or Bard’s Tale Beer Company experimented for 2 years before they settled on a recipe and a method. Their secret is malted sorghum. Sorghum is a grain that does not have gluten. It is commonly used to make gluten-free beers, but it is not commonly malted like other grains used in brewing.

Bard’s is the only brewery that uses malted sorghum to brew gluten free beer. Brian won’t say whether Bard’s malts their own sorghum or has it made for them, but he did say it’s their own.

Bard’s uses a contract brewer to make “Bard’s Gold,” currently their only product.

Brian’s advice for finding a contract brewer is use a brewer that:

  • Has a good reputation
  • Makes high-quality products
  • Has a lab that can ensure consistency
  • Is happy to work with you
  • Has the capacity to grow with you

Other contract breweries—or breweries that got their start as a contract brewery—on MicroBrewr Podcast:

Alamo Beer Company

HenHouse Brewing

21st Amendment Brewery

Backshore Brewing Co.

Two Birds Brewing

Craft Artisan Ales

Noble Brewer

If you’re using a contract brewer to make gluten-free beer, you’ll need to take special care to ensure there is no cross-contamination from the other beers brewed at the facility. Bard’s beer is always the first batch brewed after the brewery is cleaned. They test at several points along the process to ensure there is no gluten in the beer.

“The gluten free market around your brewery is too small to support a brewery,” says Brian. “There’s just not enough gluten-intolerant people to support a stand-alone gluten free brewery in one location.”

So Bard’s model depends on very wide distribution. And working with distributors can be tricky.

“The way the laws are written,” says Brian, “once a distributor gets a beer brand, it’s very difficult to get that beer brand back from the distributor. So if you make a mistake, it’s really hard to fix that problem.”

Brian’s tips for picking a distributor:

  • Talk to contacts you already know.
  • Differentiate yourself from the others.
  • Work with the distributor to drive the business.
  • Find a distributor that is eager to work with you.
  • Coordinate marketing across all 3 tiers.

Brewery specs:

Kettle size: 500-BBL batches.

Size and quantity of fermentation tanks:

Size and quantity of bright tanks:

Annual brewing capacity/last year’s production:

Square footage:

Years in operation: 9 years (opened 2006).

Listener question:

From Melissa Bess Reed: How do I make quality gluten-free beer that always has the same delicious flavor profile that I can count on?

Can’t-go-without tool:

The Brewmaster.

Book recommendation:

Check out the entire list of recommended books, click here.

Your Free Audio Book

An upcoming beer style:

Session beer

Other resources:

You can reach Brian Kovalchuck and Bard’s Tale Beer Company at:

Sponsors:

Beer

Support MicroBrewr

Help keep MicroBrewr on the air. CLICK HERE for ways you can help.

Subscribe on iTunes             Listen to Stitcher

MicroBrewr 081: An R&D laboratory for craft beer with Labrewatory.

MicroBrewr 081: An R&D laboratory for craft beer

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The guys at Portland Kettle Works had the idea to start a nanobrewery. They needed one of their employees to run it, so Chris Sears stepped up and took charge of Labrewatory in Portland, Oregon.

“If Portland is anywhere close to being saturated, the rest of the U.S. has a long way to go.” [Tweet This]

 

Labrewatory won’t be just a nanobrewery. It will be part R&D and showroom for Portland Kettle Works, part collaboration brew lab, pilot brewhouse for hire, a brewing classroom, and who knows what else they’ll think of.

Chris hopes Labrewatory will be a “craft beer geek haven” and a “hub for creative new beer.” He’s been working on the project since the beginning. Now that it’s almost open to the public, he has some lessons to share.

In hindsight, Chris feels they could have spent less time on architecture and design. But he cautions that the plans entail not only what facilities you will have in the building, but also where in the building they will be located. He recommends that you check with the permit inspectors early on and go over your plans with a “fine-toothed comb” to make sure everything follows the codes.

They don’t have to advertise this new nanobrewery too much. They’re raising interest by word-of-mouth and social media. Collaboration beers with other breweries will also be key to their advertising and marketing plan.

Chris iterates a sentiment shared throughout the craft beer industry: community, not competition.

“Collaborations,” he says, “are the definition of community involvement.”

RELATED: MicroBrewr 078: Around the world and back with the craft beer industry

Before doing this project, Chris had been homebrewing for about 5 years. For any homebrewer wanting to go pro, he recommends just starting.

“Just go out there and do it!” he exclaims.

“There’s a lot of money out there. Go out and find that money,” says Chris. “The biggest hurdle right now is finding money. I think it’s just either they are scared to ask or they don’t know the avenues to go and find it. There are definitely investors out there.”

About the potential of a “bubble” or a decreasing demand in craft beer, Chris says: “Portland definitely shows the industry that a neighborhood can support a brewery. Are you going to be the next Sam Adams? Probably not. But are you going to be able to support your family and support employees? Definitely, definitely. So as far as a bubble goes, I don’t see really one in sight.”

Brewery specs:

Kettle size: 3.5 BBL, but we can do 4 BBL.

Size and quantity of fermentation tanks: A mix of 7-BBL and 3.5-BBL fermenters. Capacity for up to 12 fermenters.

Size and quantity of bright tanks: We will be mostly kegging after conditioning, so around 4.

Annual brewing capacity/last year’s production: Approx. 1,000 BBL.

Square footage: Approx. 5,000 sq. ft. including brewery, tap room, and mezzanine.

Years in operation: Comnig soon (opening October 2015).

Listener question:

From Old Louisville Brew: If the bubble does exist, where and when will it hit? For example, shelf space, tap space, customer saturation, etc.

Can’t-go-without tool:

Pump on a cart, with variable frequency drive (VFD).

Book recommendation:

Check out the entire list of recommended books, click here.

Your Free Audio Book

An upcoming beer style:

Sour beer

Other resources:

You can reach Chris Sears and Labrewatory at:

Sponsors:

InMotion Hosting

“Fast, reliable, affordable, web hosting.”

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Support MicroBrewr

Help keep MicroBrewr on the air. CLICK HERE for ways you can help.

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MicroBrewr 080: Brewing the American Dream winner for 2015 with ChuckAlek Independent Brewers.

MicroBrewr 080: Brewing the American Dream winner for 2015

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A friend asked Marta Jankowska and her husband whether they wanted to use his warehouse space and go pro with their brewing. The warehouse space fell through, but they were far along in the process, so they decided to go for it and opened ChuckAlek Independent Brewers in Ramona, California.

“Your time is so much more valuable actually planning on how to grow the business.” [Tweet This]

 

“Even though that original space fell through,” says Marta, “we were already so far along in planning that we just decided to go for it.”

They had run the financials, lined up some money from friends and family, and were ready to go. They just needed space.

They found the permitting requirements in the City of San Diego to be cumbersome and expensive, so they finally settled in Ramona, a little town in San Diego County wine country.

“More importantly,” Ramona explains, “we never wanted to be a warehouse brewery. We always wanted to be kind of a main street brewery. Something that was integrated in with community and surrounded by other storefronts.”

By chance, Marta was a tennis partner with one of the founders of Stone Brewing. He told her that over a hundred breweries were starting or being planned for opening in San Diego.

“How are you going to differentiate yourself?” he asked Marta. “The way that I see a brewery doing well in this town is having a really solid background story and a really solid concept. You need to come up with something that has a compelling story that you can tell to the consumer.”

To come up with a compelling story, Marta suggests you think about:

  • What you want the brewery to encompass
  • What message you want to communicate to the consumers

“A flashy label will get you that fist glimpse from a consumer,” she says. “But people are finicky these days, they’re not super brand loyal, they’re not going to remember something unless it really stands out in their brain, or you give them that nugget that they’re really able to hang onto.”

ChuckAlek has gotten some notoriety this year by being selected as the 2015 recipient of Samuel Adams Brewing the American Dream “experienceship.” They beat out others for apprenticeship, partner brew with Sam Adams, and a trip to Germany with Pink Boots Society.

Other tips from Marta:

  • Set aside time to plan for the growth of the business during the next few years.
  • Enroll yourself in a business mentorship program.
  • Start with the barebones, just to get off the ground. Then buy more equipment when you have the disposable income.
  • Build a nest egg for repairs and other unexpected expenditures.

Marta’s suggested software systems for a startup nanobrewery:

Brewery specs:

Kettle size: 1 BBL.

Size and quantity of fermentation tanks: 6, 3-BBL plastics; 1, 2-BBL stainless; 1, 4-BBL stainless; 1, 5-BBL stainless.

Size and quantity of bright tanks: 1, 5-BBL.

Annual brewing capacity/last year’s production: 250 BBL. This year on track to be at about 400 BBL.

Square footage: 1,700 sq. ft.

Years in operation: 2.5 years (opened January 2013).

Listener question:

From Grant Aguinaldo: What software systems do you use to manage your brewery?

Can’t-go-without tool:

Brite Tanks.

Book recommendation:

Check out the entire list of recommended books, click here.

Your Free Audio Book

An upcoming beer style:

Lager

Other resources:

You can reach Marta Jankowska and ChuckAlek Independent Brewers at:

Sponsors:

Audible

Download a free audiobook.

Audible. Download a free audiobook. https://microbrewr.com/audible

Support MicroBrewr

Help keep MicroBrewr on the air. CLICK HERE for ways you can help.

Subscribe on iTunes             Listen to Stitcher

MicroBrewr 079: The importance of budgeting for working capital with Lakewood Brewing Co.

MicroBrewr 079: The importance of budgeting for working capital

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Wim Bens was born in Belgium and moved to Texas when he was 7 years old. He applied to American Brewers Guild just to have the option. Now, 3 years after opening Lakewood Brewing Co. in Garland, Texas he can barely keep up with demand.

“If you start doubting what you’re doing, then you shouldn’t be doing it.” [Tweet This]

 

Wim’s original business plan called for 3 employees, adding about 1 employee per year, for every 1,000 barrels produced. They had planned to expand production to 7,000 barrels in year 7.

Two years later after opening, they had 13 employees and had started looking for a larger venue.

Today, just 3 years after opening, Lakewood Brewing Co. has a staff of 22. They produced 7,500 barrels last year, are on track to produce 10,000 barrels this year. They are projecting next year’s production at 15,000 – 20,000.

RELATED: MicroBrewr 077: The importance of writing your goals.

Wim says you must have:

  • Good culture
  • Good people
  • Investment
  • Ability to invest at the right time
  • Make smart investments in your business
  • Good beer
  • Consistently good beer

“And I think if all those things come together, especially in a market like Dallas-Fort Worth that had a local beer drought, then you have a good recipe for success,” advises Wim.

On convincing family, friends, and fools to invest in your brewery:

  • It’s very important to believe in yourself.
  • It’s very important to believe in what you’re doing.
  • Hire people who are smarter than you.

“If you start doubting what you’re doing,” says Wim, “then you shouldn’t be doing it.”

“A lot of people think when they open a small brewery, “I’m going to be the brewer.’ Ok, well who’s going to do payroll? And who’s going to do HR? And who’s going to be ordering supplies? And who’s going to be doing facility maintenance? And who’s going to be doing all your advertising? And who’s going to be doing distribution?

“There are so many things that have to happen in a brewery to be successful that you have to be able to delegate that and hire people who are experts in those fields.”

Wim reminds us to budget for working capital. His advice is to double your budget—and then add 20%.

“Working capital is not talked about enough,” says Wim. “You have to have enough money to pay your employees, to order your raw materials in large amounts so that you get a quantity discount so that you can eventually turn that into a more profitable margin. You have to have a lot of working capital until you start seeing the money come back.”

Brewery specs:

Kettle size: 30 BBL.

Size and quantity of fermentation tanks: 30-180, 1,440 BBL total fermentation vessel capacity.

Size and quantity of bright tanks: 180, 90, 80, 60, 40.

Annual brewing capacity/last year’s production: 2014: 7,500 BBL.

Square footage: 30,000 sq. ft.

Years in operation: 3 (opened August 2012).

Listener question:

From Peter Stillmank: How much beer do you need to produce each year to break even?

Can’t-go-without tool:

Rubber mallet.

Book recommendation:

Check out the entire list of recommended books, click here.

Your Free Audio Book

An upcoming beer style:

Sour beers

Other resources:

You can reach Wim Bens and Lakewood Brewing Co. at:

Sponsors:

Beer

Support MicroBrewr

Help keep MicroBrewr on the air. CLICK HERE for ways you can help.

Subscribe on iTunes             Listen to Stitcher

MicroBrewr 078: Around the world and back with the craft beer industry with The Blind Pig Brewery.

MicroBrewr 078: Around the world and back with the craft beer industry

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Bill Morgan has brewed on 2-BBL systems all the way up to 250-BBL systems. Craft brewing has taken him around the world and back. Now he’s gone full-circle, brewing on 4-BBL system and loving the flexibility it provides at The Blind Pig Brewery in Champaign, Illinois.

“Is it really craft beer if it’s available in all 50 states?” [Tweet This]

 

After graduating with a degree in Biology, Bill used his left over student loan money to attend brewing school at Seibel Institute of Technology.

Within 3 years of graduating from Seibel, in 1997 he earned a gold medal at the Great American Beer Festival. It was the first gold medal at the GABF for the first intentionally sour beer (in the Belgian Specialty Ale category). The next year, he added fruit to the same beer and earned a silver medal, plus another gold medal for an Imperial Stout.

Eventually Bill was working brewing on a 250-BBL system and managing the quality assurance lab at a production brewery in Japan.

“If you have a large brewhouse like we had,” says Bill, “it’s tough to brew some experimental brews that you’re not even sure is going to come out right. Whereas in the brewpub, who can’t get rid of 10 barrels of some kind of strange beer.”

The Blind Pig Brewery shares similar names with a former brewery in California, a beer from other currently-operating brewery in California, and even a different business around the block from them. It causes confusion for customers and disagreements with other proprietors.

Related: MicroBrewr 044: What every brewery should know about trademarks, MicroBrewr, January 6, 2015.

How to apply for a trademark/service mark, Paul Rovella, MicroBrewr, January 8, 2015.

“You’ve really gotta do your research to find a name that won’t run you right into these kinds of problems,” Bill advises.

“It’s a nightmare and it can be a legal nightmare and you can spend a lot of money getting your brand up and going, only to discover a couple years into it that you have no other recourse but to scratch all that branding and pick something new and start over. So it can be very costly. Even if you don’t have direct legal costs up front—you don’t get sued or have to pay some gigantic fine—it can still be a significant loss just in all of the rebranding and coming up with a new name.”

Brewery specs:

Kettle size: 4 BBL.

Size and quantity of fermentation tanks: 8, 4-BBL unitanks.

Size and quantity of bright tanks: 6, 4-BBL serving/bright tanks.

Annual brewing capacity/last year’s production: Brewed approximately 500 BBL last year, pushing about 600 BBL this year.

Square footage: 100 sq. ft. in brewhouse; 100 sq. ft. in fermentation, serving tanks are tucked behind the bar; seating/bar/toilets/storage; 2,400 sq. ft. in beer garden has 120+ seats, two bars, no kitchen.

Years in operation: 6 years (opened May 2009).

Listener question:

From Austin: Did you do it for the love of beer, or did you have a more specific goal in mind?

Can’t-go-without tool:

Foursevens compact LED flashlight

Book recommendation:

Check out the entire list of recommended books, click here.

Your Free Audio Book

An upcoming beer style:

Saison

Other resources:

You can reach Bill Morgan and The Blind Pig Brewery at:

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MicroBrewr 077: The importance of writing your goals with Peticolas Brewing Company.

MicroBrewr 077: The importance of writing your goals

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Michael Peticolas learned about homebrewing from his mother. After achieving all the goals he set for himself in the legal field, he decided to pursue his passion of beer with Peticolas Brewing Company in Dallas, Texas.

Michael says he feels very fulfilled with having achieved his list of goals. He saved a lot of money while working in law, which allowed him to start his brewery debt free.

“We didn’t open up this big huge, grand brewery, which I see all over the place,” said Michael. “This was my money. So my wife and I decided, ‘How much are we willing to lose?’ Most small businesses go out of business within 3 years.”

“I’d rather fail than to have not tried it at all.” [Tweet This]

 

“If you don’t know how to write a business plan,” Michael advises, “learn how to write a business plan.”

The process of writing a business plan helps:

  • Delve into the potential problems
  • Focus on completing your goals

“Plan in the beginning,” instructs Michael. “Address the good news and the bad news, up front. That business plan is going to guide you. So put in the time before you get started.”

“It is going to make you answer the difficult questions that are going to cause you to go find the resources to help you address those issues.”

Related: MicroBrewr 064: How to write a business plan for a brewery

Three and a half years later, they have 10 employees and expanded capacity from an initial 3,000 BBL to 9,000 BBL.

“Not only am I trying to put together an awesome brewery, but I’m trying to wind back the clock to 1950 when folks worked for one employer for 20 or 30 years. So I concentrate on making us an awesome place to work.”

  • Health insurance
  • 401(k) plan
  • Take care of the market, consumers, retailers and employees

“I’d rather hire someone I’ve known and connected with than just some stranger who looks really awesome on paper.”

Brewery specs:

Kettle size: 15 BBL.

Size and quantity of fermentation tanks: 12, 30-BBL fermenters.

Size and quantity of bright tanks: 3, 30-BBL bright tanks.

Annual brewing capacity/last year’s production: Added tanks yesterday, changing capacity from 6,000 BBL to 9,000 BBL. Production last year was 3,500 BBL. On pace for 5,000 BBL this year.

Square footage: 9,000 sq. ft.

Years in operation: 3.5 years (batch one brewed December 30, 2011).

Listener question:

From Cianna Dona: Where did you get the capital to start?

Can’t-go-without tool:

Hand-held temperature gauge.

Book recommendation:

Check out the entire list of recommended books, click here.

Your Free Audio Book

An upcoming beer style:

Sour beers

Other resources:

You can reach Michael Peticolas and Peticolas Brewing Company at:

Sponsors:

Audible

Download a free audiobook.

Audible. Download a free audiobook. https://microbrewr.com/audible

Support MicroBrewr

Help keep MicroBrewr on the air. CLICK HERE for ways you can help.

Subscribe on iTunes             Listen to Stitcher