How​ ​to​ ​start​ ​a​​ ​brewing​ ​company​: Part One ​

In the first article of a three part series, Spark Breweries and Distilleries founder Julian Sanders outlines the initial areas of consideration for a commercial brewing start-up.

Business​ ​Model,​ ​Site​ ​Selection​ ​and​ ​Licensing
A​ ​clear​ ​business​ ​plan​ ​is​ ​the​ ​first​ ​step​ ​towards​ ​selecting​ ​an​ ​ideal​ ​site​ ​and​ ​brewing​ ​system.​

​There​ ​are two​ ​professional​ ​brewing​ ​business​ ​models:

1. Brew​ ​on​ ​premise​ ​-​ ​any​ ​newly​ ​licensed​ ​brewing​ ​company​ ​and​ ​most​ ​existing​ ​venues​ ​that​ ​sell 10​ ​kegs​ ​a​ ​week​ ​can​ ​improve​ ​their​ ​profitability​ ​by​ ​brewing.

• The​ ​small​ ​brewer’s​ ​excise​ ​rebate​ ​and​ ​Spark’s​ ​equipment​ ​finance​ ​assist​ ​with​ ​making this​ ​happen.
• Clear​ ​differentiation​ ​from​ ​competitors,​ ​with​ ​local​ ​keg​ ​distribution​ ​and​ ​growler​ ​take aways​ ​as​ ​additional​ ​revenue​ ​streams.
• Requires​ ​a​ ​compact​ ​inexpensive​ ​brewing​ ​system​ ​that​ ​is​ ​easy​ ​to​ ​install​ ​and​ ​operate (Spark’s​ ​K500).
• Spark’s​ ​compact​ ​K500​ ​also​ ​allows​ ​brewing,​ ​fermenting​ ​and​ ​serving​ ​from​ ​tanks​ ​built above​ ​fermenters:​ ​no​ ​need​ ​for​ ​kegging​ ​or​ ​bottling.​ ​This​ ​saves​ ​capital,​ ​space​ ​and time.​ ​The​ ​beer​ ​itself,​ ​having​ ​never​ ​“seen”​ ​light,​ ​heat​ ​or​ ​oxygen​ ​can​ ​be​ ​presented​ ​in perfect​ ​fresh​ ​condition.
• Drinkers​ ​of​ ​independent​ ​beer​ ​are​ ​a​ ​high​ ​growth,​ ​future​ ​relevant​ ​demographic.

2.​ ​Distribution​ ​brewing​ ​-​ ​requires​ ​kegging​ ​and​ ​packaging​ ​for​ ​relatively​ ​low​ ​margin,​ ​high volume​ ​distribution,​ ​typically​ ​through​ ​third​ ​party​ ​wholesalers,​ ​distributors​ ​and​ ​retailers.

• Relies​ ​on​ ​low​ ​unit​ ​cost​ ​of​ ​production​ ​via​ ​a​ ​large​ ​brewing​ ​system​ ​designed​ ​for​ ​multi batching​ ​each​ ​day​ ​up​ ​to​ ​double​ ​or​ ​quad​ ​batch​ ​fermenters.

By​ ​focusing​ ​clearly​ ​on​ ​your​ ​chosen​ ​business​ ​model,​ ​you​ ​can​ ​pick​ ​a​ ​site​ ​that​ ​is​ ​ideal​ ​and​ ​design​ ​a brewing​ ​system​ ​to​ ​ensure​ ​that​ ​you​ ​establish​ ​strongly​ ​and​ ​then​ ​grow​ ​easily​ ​and​ ​profitably.​ ​

With​ ​a strong​ ​track​ ​record​ ​in​ ​both​ ​brewing​ ​and​ ​distilling​ ​systems,​ ​Spark​ ​can​ ​help​ ​you​ ​deal​ ​with​ ​the​ ​technical and​ ​financial​ ​aspects​ ​of​ ​achieving​ ​not​ ​just​ ​a​ ​brewery,​ ​but​ ​a​ ​successful​ ​brewing​ ​business.

There​ ​are​ ​three​ ​tiers​ ​of​ ​brewing​ ​regulation​ ​in​ ​Australia:

1. Federal​ ​ATO​ ​excise​ ​licence​ ​to​ ​produce​ ​beer​ ​-​ ​this​ ​requires​ ​a​ ​fit​ ​and​ ​proper​ ​person​ ​check​ ​on personnel​ ​and​ ​defines​ ​a​ ​bonded​ ​area​ ​within​ ​the​ ​production​ ​facility.​ ​Excise​ ​must​ ​be​ ​paid​ ​on product​ ​that​ ​leaves​ ​this​ ​area​ ​or​ ​is​ ​consumed​ ​on​ ​site.​ ​Calibrated​ ​measurement​ ​and​ ​detailed auditable​ ​records​ ​must​ ​track​ ​each​ ​step​ ​of​ ​production​ ​and​ ​packaging​ ​between​ ​malt​ ​in​ ​through to​ ​beer​ ​out.
2. State​ ​issued​ ​Liquor​ ​Licence​ ​to​ ​sell​ ​beer​ ​-​ ​regulates​ ​hours​ ​of​ ​operation​ ​and​ ​maximum​ ​number of​ ​people​ ​permitted​ ​in​ ​the​ ​venue.
3. Local​ ​Council​ ​planning​ ​permission​ ​for​ ​use​ ​of​ ​the​ ​land​ ​for​ ​brewing​ ​-​ ​considers​ ​potential​ ​impact on​ ​others​ ​in​ ​the​ ​area. As​ ​with​ ​anything,​ ​there​ ​is​ ​both​ ​an​ ​easy​ ​way​ ​and​ ​a​ ​hard​ ​way​ ​to​ ​achieve​ ​the​ ​licences​ ​and​ ​permissions required.​ ​They​ ​are​ ​critical​ ​and​ ​should​ ​be​ ​approached​ ​with​ ​prior​ ​education,​ ​forethought​ ​and​ ​respect.

Spark​ ​Breweries​ ​and​ ​Distilleries​ ​is​ ​a​ ​Melbourne​ ​based​ ​engineering​ ​practice​ ​that​ ​works​ ​across​ ​the country.​ ​

Technology​ ​arms​ ​dealers​ ​in​ ​the​ ​guerrilla​ ​war​ ​for​ ​flavour,​ ​we​ ​build​ ​Sharp​ ​Tools​ ​for​ ​Artisans.

We’d​ ​love​ ​to​ ​hear​ ​your​ ​plans​ ​and​ ​help​ ​you​ ​achieve​ ​them.​ ​Please​ ​get​ ​in​ ​contact​ ​via [email protected]