So You Think You Want to Open a Brewery
drinks.seriouseats.com
drinks.seriouseats.com
Three groups of my friends (6 people, total) are attempting to start breweries, brewpubs, or cideries.
I have a number of thoughts for these friends. (Advice not totally unsolicited -- I've been homebrewing for about 17 years.)
- Brewing a good batch of beer - better than most of the what's sold in stores - is easy. Almost anyone can do it with their first batch.
- This tricks people into thinking that brewing is easy. But...
- Consistency is hard. That recipe that turned out so well the first time? It might be good the second time, or it might spoil, or it might be too hoppy, or it might be cloudy, or taste of yeast, and so on. At any rate, it's unlikely that it will taste exactly the same as it did the first time.
- Brewing large batches is hard. Even transitioning from 5 gallon to 10 gallon batches requires different equipment. Recipes don't scale in a simple way. And when you get into backwatering high gravity beers everything becomes even more complex.
- Making wine and cider is hard compared to brewing beer. The former two have fewer ingredients, which, being fruit instead of grain, tend to be less consistent. Conditioning takes MUCH longer which means feedback and learning take much longer.
- And yet, I bet actually making a consistent, high-quality beverage is the easy part compared to running a profitable brewing business.
- Brewing is expensive. Startup costs are high. Even an enthusiastic homebrewer can easily spend thousands. Think $10,000 for a bare-minimum commercial brewing setup built around e.g. a SABCO Brew Magic.
- The legal stuff is hard. Licenses, bonds, a legal location -- all that stuff takes time and money.
- The food industry is brutal. Combining a brewery and a restaurant seems like it must tremendously increase the probability of failure.
Anyway, brewing is a fun hobby. But one of those that sort of lulls people into making hasty business decisions.
Brew Dogs. http://tv.esquire.com/shows/brew-dogs
Who wants to brew pilsner and pale 7 days a week?
As an ignorant software engineer. I have to ask this. ¿Can you keep the batch size constant and increase the number of batches?
Surface area doesn't scale linearly with capacity, so both cost and cleaning time actually get _better_ as you scale up. Grain, cleaning supplies, and tools get cheaper as you scale, too.
It also only takes a tiny active culture of something bad to ruin an entire batch of beer. Each vessel, airlock, valve, and spoon is another potential source of contamination, so having fewer things to clean is a Good Thing.
The question is- would this make it easier to be more consistent?
I think the right answer is to get your equipment and do test batches to rework your recipes at scale. If you're successful as a brewery it's a process you'll have to do multiple times as you grow anyways, so avoiding it once seems like a silly optimization.
I can imagine several advantages. You can replicate without having to extrapolate quantities, pressure, etc. You get to run more experiments, I can envision a supervised machine learning system that learns which parameters make the best beer. You don't throw out big batches, etc. Sure, it may require more labor, but you get other advantages.
I visited a village once that did this with their wine and distilled liquor.
I'm at work and don't have access to my brewing books so I can't be any more specific than this but I found it an interesting solution to the problem of consistency.
Well said. I started brewing as a hobby about 20 years ago (egads!) But always knew that I would lose the joy of it if I tried to turn into a professional gig.
A friend is in the process of opening a brewery right now. He drastically underestimated the legal paperwork involved to get started. He's sitting on a great space with all the new equipment installed and still waiting in the local government to finish their end of the process....
This is literally unsolicited advice.
I read it as his friends viewing him as someone with brewing experience and asking questions. Which would literally be 'soliciting' his advice...
I usually wouldn't comment but I think many here are not native English speakers (so might appreciate it), but more telling the setup appealed to my sleep deprived brain. Always perilous, amusing yourself.
My restaurant ends up focusing so much more on keeping up with cleaning, food safety, and local regulations than actual cooking food it feels almost silly. And most people only want to hear about food or money (lol, money) when they ask me about how the restaurant's doing. I hope I don't accidentally convince someone that they should look into running one.
Start with a big one.
Big ones can be iffy, they'll all but guarantee you some kind of (positive) cash flow but a lot of them sink so much money into necessary wages that I definitely recall wondering why the fuck anyone would think I would spend $1+ million to buy a wildly popular business that gives me all of $10k/month back before I can pay off any business loans. I seem to recall the broker trying to sell that particular one to me with "you can take the place of a few employees because owner/managers tend to work way harder and save like another $10k+!"....sure, if I wanted to work my ass off from 7am to 1am every single day?
That's what I get for idling on HN between dealing with misbehaving employees and hiring new misbehaving employees on the one day this week I deal with the restaurant
tl;dr basically. if you're lucky not to lose it altogether. :(
Now he gets to work with his hands, make something real people enjoy, and be accountable only to himself. I think he's pretty happy.
Yes, you need decent chunk of financing + equipment to get started. No, it isn't "real money" to most of the folks on HN. Compared to the margins on most foodservice businesses, though, it's amazing.
I know several states have tough regulatory environment but I don't know if they go as far.
SECTION 61-4-1700. Definitions.
For purposes of this article:
(1) "Brewpub" means a tavern, public house, restaurant, or hotel which produces on the permitted premises a maximum of two thousand barrels a year of beer for sale on the premises.
(2) "Permitted premises" means those areas normally used by the permittee or licensee to conduct his business and includes, but is not limited to, the selling areas, brewing areas, storage areas, food preparation areas, and parking areas.
(3) "Person" means an individual, partnership, corporation, or other form of business organization.
HISTORY: 1996 Act No. 415, Section 1.
I would guess that the bigger margins would allow you to start at a smaller scale.
While I waited over an hour to buy my 2 allowed bottles, I was able to read a little about the guy who started the brewery. I'm paraphrasing, but he basically explained in an interview somewhere that once you realize you're not doing something for fun or for yourself, you come to see other elements about the work that matter, and that those are what ultimately make it worth while. (His motivation has a lot to do with maintaining his family connection to the land he's brewing on, which has been in his family for like 200 years.)
I thought those were pretty wise words for anyone considering a new venture. Novelty and fun wear off. If you can figure out what about the work really matters, you'll be less likely to burn out.
FWIW I saw the founder of the brewery, and I can tell you he was not showing any signs of having a good time or a good day.
Eh, Shaun's almost always like that, at least on days the retail shop is open. Pictures of him actually brewing or hanging out with other brewers or at his (amazing) festivals confirm that he is definitely doing what he loves.
Hill Farmstead is a very interesting case. Shaun has said many times that there is an absolute limit on the amount of beer he can reasonably brew on-site, and that he has no interest in expanding beyond that limit. As a result, given the quality of his product, he will inevitably be swamped by demand unless he raises prices, something he has generally been reluctant to do. Imagine if Napa's highest-rated winery were selling the vast majority of its juice in $20 bottles.
[This is not something to be sneezed at... like 75% of the conversation on U.S. beer websites seems to be complaining about beer prices—which seems a bit crazy to me, as from my point of view, U.S. craft beer prices are already extremely low (craft beer prices where I live are probably three times what they typically are in the U.S.)!]
A slight nitpick: the Baird Harajuku Taproom is near Takashita-dori (presumably the insanity to which you were referring), but its actual location is on a quiet backstreet about 50m away -- and that 50m makes an incredible difference... The ambience on the street outside the taproom is amazingly quiet.
[I make the point because I'm always struck by how amazingly quiet the location seems, despite the proximity to T.D. It always feels sort of surreal...]
[I guess limited-time editing is better than no editing, but man is it still annoying...]
We use machine learning and data-science to quantify the flavor profile of products, detect flaws, and pinpoint the sources of batch variation.
[1] www.Gastrograph.com
This has not paned-out in practice; doing reviews on our system is not difficult but it is involved - you have to care about flavor and what you're tasting to do it.
Also, going Standards/consumer route puts us into direct competition with many of the trade organizations that our clients belong to, like the SCAA and the BA - they try to sell their own sensory systems from 'partner companies' (that then donate money back to the organization...).
I think it is better for us to gain the trust of a set of clients who are looking for a better way to taste products for quality control (based on science), and charge them for a service than to gamble on general consumers in the short term. In the long term.... I would love to have 1M+ random people using our app to review beer, coffee, and etc.
[Do you still live in Kunming? // I use to live right around KNU!]
I live just south of Kunming on Fuxian lake. Kumming aint what it used to be, but it's still clean and relatively natural down here!
Interestingly, the t-test, probably one of the most relevant pieces of mathematics in modern science, was invented by Gossett in the Guiness brewery in Dublin in 1908.
The problem was that for testing the batches, the sample size was too small for the estimate of the standard deviation to be consistent, so the distribution was wider than would be expected from a Gaussian normal distribution. So, the lad used resampling from a bag of a thousand chicken bones (measuring the lengths) to derive a distribution. Somehow, the mathematical underpinnings were later defined properly by Fischer.
https://www.kickstarter.com/projects/kitcheninc/the-brewery-...
http://blogs.westword.com/cafesociety/2013/02/innovative_cra...
There are some (extremely good) "breweries" around here which I'm told are "recipe only," i.e., the actual physical site/equipment used is that of another, larger, brewer.
However I'm not sure exactly what that really means... do they typically really just give the recipe over to the larger brewer and say "make this!" or is the "originating" brewer more involved in the actual brewing process, just using the larger brewer's equipment?
Again, take that with a lump of salt, I hope somebody who knows more will chime in.
What I'm talking about seems a little different though: it's very, very, small craft breweries which don't have any of their own equipment (except presumably small-batch/homebrew equipment used in creating their recipes in the first place), and do all their actual production brewing on the premises of another brewery, usually located in the same city.
Maybe they work the same way, but I can't help but think that the latter type would be more involved in the process... :]
The biggest problem is governments. Either the local government, which decided to arbitarily start charging commercial premises 90% of the metered incoming water as wastewater, on the assumption that 90% of what comes out the tap goes down the drain. Breweries use a lot of water, so that added costs.
Then the federal government decided that young people were drinking too many strong pre-mixed drinks (alcopops), so they added a massive alcopops tax (a 70% increase) to try and stop young people drinking (yeah, as if that was going to work [1]). While the young people switched to spirits, wine and cider, his business got smashed because one of his big product lines was ginger beer, and for whatever reason some politician or bureaucrat decided that ginger beer counted as an alcopop.
Most of us in the software industry don't realise how much freedom we have. We can start pretty much any type of software company we like, where we like, when we like. Most of us don't even have to tell a single layer of government what we are doing, save for reporting the income to the taxman. The horror stories of random regulation changes on small businesses like breweries and restaurants is the stuff of nightmares. I mean, imagine if a government somewhere decided to arbitrarily add a 70% tax to mobile-app sales. Lots of small developers would go under. But governments routinely do this sort of thing all the time to lots of other small businesses.
[1] http://www.news.com.au/lifestyle/food/alcopop-tax-fails-to-d...
Probably mostly for show, but people drop the cash. The place is packed on weekends, year round.
Our goals are to achieve greater consistency and to automate the process as much as possible, so brewers don't have to sit and watch the beer cooking for an entire day.
Our nanobrewery is already running for a year or so and there are at least two more under construction around the world (that I am aware of). So far, the project comprises just the brewery itself-- no tools for downstream analysis of the beer, though that is an important future improvement.
Shameless plug, brought to you by one of the project founders :)
http://www.amazon.com/Kings-County-Distillery-Guide-Moonshin...
(Book is written by a guy who grew up in a dry county and whose father is a preacher, natch.)
:-)
Part of my stockpile:
http://farm3.staticflickr.com/2823/10919772826_8b39ab55de.jp...
Few things are as satisfying as tapping a homebrew cider that chilled in a snow drift on your roof.
I made a batch and it turned out to be arguably my best homebrew yet. Currently making a blueberry graff now and mead kit should be delivered today.
Any recipes you have shared on brewtoad/elsewhere of your cider?
[1] - http://www.homebrewtalk.com/f81/graff-malty-slightly-hopped-...
[2] - http://mnbeer.com/2012/09/21/brewing-tv-68-how-to-make-graf/
Some years, apple harvests where I live are good, and other years not so great. Not so great apples = not so great cider = benefits more from aging.
http://www.feaststl.com/dine-out/big-idea/article_14e48446-4...
I don't think I can make a better computer than Apple just because I use one. I don't think I can block better than the offensive lineman on the 49ers, even if I think he's incompetent. I can't make a car better than GM, even if I might drive one.
Yet why do so many people think opening a brewery is easy?
Beer Wars is a great documentary on the fight craft brewers have against the big beer companies. [1] The war is all in distribution.
Just like Bud Light -- it sucks, but you don't have to spend a whole day cooking it and then a whole month waiting for it to be ready to drink it.
How many people have a genuine passion AND business sense for the stuff, instead of merely going with what other people do and what's considered a hip and trendy thing to do (with some of them even thinking they won't have to do much work to run such a business).
It's like when I see tons people attemting a career in designing skateboarding gear or some such non-industry...
Just some perspective.
Sidenote: I do think the original title "So You Think You Want to Open a Brewery..." would have fit better here.
I found scheduling consistent brew days is the best way to improve your craft. Don't let it fall by the wayside and make two beers a year or you'll forget everything and lose interest.
I make cheese, and have spoken to some of you here about that as well. Producing commercial dairy products blows away the health and safety regulations in beer and wine making. Think it is hard putting a fermented grape in a bottle for sale, try something that comes out of the backend of a live animal...
That's mostly all there is to it. Reading up, will teach you what to expect the starter to look like, how to troubleshoot, and how to turn the starter into bread.
I like the simplicity of flour, water, salt. (And air, time and kneading.) The simplicity leaves no room for covering up mistakes like cakes allow you to do.
> How did you ensure you were catching something useable and not something you didn't want in your bread?
Humanity is very lucky that the most probably natural occurring fermentation in grain dough is not only perfectly safe, it also improves taste, nutrition, digestibility and shelf-life of your bread.
Your nose will tell you if something is off. I think mold is the most common invader. But even mold will have a hard time in a healthy sourdough, because the low pH (=high acidity) and some enzymes keep the symbiosis of yeast and lactobacillus exceptionally stable.
Even in California, the beautiful tasting room all done up in oak often has nothing to do with the beautiful vineyards outside.
It's a hell of advertisement for the shop, though!
Edit: and now that I think about the other things:
Regarding 1 and 2: some hop varities have mildew problems, and bad weather has negative influence on the growth and other things like alpha acid, so bad weather can have quite the impact on hop quality and availability. The 2013 hop harvest in Germany was quite the disaster, apparently. AA% is a lot lower, and young plants of some new breeds got way too much water.
There are good west coast breweries but the culture created a style and has stuck to it like gospel. Variety is what makes beer fun.
*very broadly, no you don't need to tell me about DFH 120 minute or what have you.
Heady Topper, for example, is pure hop madness.
[1] http://www.agha.org.au/cms/uploads/images/Grape%20harvesting...