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MicroBrewr 073: Contract brewing: quality product with low barrier to entry with Craft Artisan Ales.

MicroBrewr 073: Contract brewing: quality product with low barrier to entry

David Olsen dives into things all the way. He decided that he wanted to homebrew, so he read about 15 books and took some short classes at UC Davis. Within 6 months he was winning awards at homebrewing competitions. He started Craft Artisan Ales, in Pacific Grove, California, with contract brewing because it was an easier barrier to entry.

“Even to get like a 7-BBL system going, you’re going to need at least a half-million dollars,” estimates David. “Then you have the labor, the insurance, the overhead, the space, the lease, all those other factors that go into it.

“So to be able to go to a facility that can take your recipes and create a quality end product [in exchange] for part of the margin, is definitely an appealing way to get into the craft beer industry.”

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

David has some recommendations to nail down your beer styles and recipes:

  • Spend a lot of time working on one single beer, then develop other recipes from there.
  • Take some brewing classes, even weekend classes or 2-week classes.
  • Be super careful about sanitation and temperature control.

You’ll need to have accounts confirmed to buy your beer when it’s ready from the brewer. Here’s what David did:

  • He pushed the local angle in his products by using local names and themes.
  • Friends who owned restaurants agreed to carry his beer on tap.
  • The owner of the homebrew store helped make other connections.
  • He put samples in a cooler pack and walked into stores to talk to the manager.
  • He provided a sample, sales sheet, and business card everywhere he went.

Contract brewing is a much easier way to enter the craft beer market. The cost is a tiny fraction of what it costs to open your brewery. The time that you would have spent brewing can be spent marketing, delivering product, nurturing relationships, and all the other things required when you own your own brewery.

Brewery specs:

Kettle size: 25-BBL contract facility.

Size and quantity of fermentation tanks: 25-, 50-, and 100-BBL tanks available.

Size and quantity of bright tanks: Same.

Annual brewing capacity/last year’s production: Capacity is 15-20K BBL for the contract facility. Last year Craft Artisan Ales produced about 1,000 BBL.

Square footage: 80,000 sq. ft. at the contract facility.

Years in operation: 18 months (opened February 2014).

“I don’t have an exit plan because I want it to be a career. All I have are expansion plans.” [Tweet This]

 

Listener question:

From The Beer Sommelier: What is your exit plan?

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 David Olsen and Craft Artisan Ales at:

Sponsors:

Beer

Support MicroBrewr

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

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MicroBrewr 042: Open a microbrewery to revitalize an economy, with The Brew Gentlemen Beer Company.

MicroBrewr 042: Open a microbrewery to revitalize an economy

Matt Katase wasn’t yet legal drinking age when he read an autobiography of a brewery owner. Then he and his friend, Asa Foster, toured a large craft brewery and thought, we can do that. At age twenty-three, they opened The Brew Gentlemen Beer Company in Braddock, Pennsylvania.

After a successful Kickstarter campaign, Matt has the following advice:

  • Don’t do it.
  • Strategically schedule donations and media interviews throughout the campaign.
  • Get lots of donations the first day to foster media impressions.
  • Research for optimum length of time.

I first heard about The Brew Gentlemen from Alexis Irvin, who spoke with us on MicroBrewr Podcast 040. Check out episode 40 to hear about Blood, Sweat, and Beer documentary and to get a coupon code for 20% off the price when your order a digital download of the movie.

Matt’s tips to successfully start a brewery:

  • Have confidence in yourself, stay true to your mission.
  • Learn construction from YouTube videos.
  • Make the women’s restroom really nice.
  • Care about quality, your customers, and your brand and image.

Brewery specs:

Kettle size: 3.5 BBL.

Size and quantity of fermentation tanks: 4, 7-BBL.

Size and quantity of bright tanks: 1, 7-BBL.

Annual brewing capacity/last year’s production: 400-600 BBL.

Square footage: 1,500 sq. ft., plus taproom, plus event space.

Years in operation: 7 months (opened May 2014).

“You’ve gotta have confidence in yourself and stay true to your mission.” [Tweet This]

 

Listener question:

From Robert Villareal: How much did you invest in your very first homebrew and equipment?

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 Matt Katase and The Brew Gentlemen Beer Company at:

Support MicroBrewr

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

Subscribe on iTunes             Listen to Stitcher