How To Write a Solid Brewery Business Plan
If you’re opening a brewery or aiming to grow your current brewery, having a clear and detailed business plan is essential for success. Whether launching a craft brewery, expanding an existing microbrewery, or introducing a unique brewing concept, your business plan is the foundation for building a strong, sustainable business.
The guide below outlines the key elements you need to include in your brewery business plan to ensure you’re set up for success, whether you’re just starting or scaling up.
Executive Summary
The Executive Summary is a concise but comprehensive overview of your entire business plan. This section should be clear and compelling, and give readers a snapshot of your brewery’s mission, business goals, and unique selling points.
- Business Overview: Provide a brief summary of your brewery’s concept, business address, and mission.
- Objectives and Milestones: Highlight key goals for your brewery, such as opening dates, revenue targets, or expansion plans.
- Financial Needs and Use of Funds: If you’re seeking financing, summarize how much you need and how you’ll use the funds to grow your brewery.
Though this section appears first, it’s often easiest to write it last after you’ve developed the other sections of your plan.
Company Overview
In this business description section, you’ll provide an in-depth look at your brewery’s background and what makes it unique. This is your chance to introduce the vision behind your brewery, your brand’s story, and how it will operate.
- Business Mission: What is the purpose behind your brewery? Whether you’re focused on crafting unique beers or building a community space, define the core values that will drive your business.
- Business Structure: Explain the legal structure (i.e., sole proprietorship, partnership, LLC, or corporation) of your brewery and the ownership breakdown.
- Location and Facilities: Where will your brewery be located? Include details on the physical space, such as brewing equipment, taproom size, and expansion plans.
- History and Background: If you’re an established brewery, provide a snapshot of your journey, including milestones and accomplishments you’ve achieved so far.
Industry Analysis
Conduct market research to understand the broader market trends and dynamics in the brewing industry. By demonstrating your knowledge of the industry’s current state and future projections, you’ll build credibility with potential investors and partners.
- Market Trends: What trends are shaping the brewing industry right now? Focus on areas like craft beer growth, sustainability, local sourcing, or consumer preferences for unique brews.
- Growth Projections: Provide data on expected growth in the brewery sector and craft beer consumption. Highlight any regional trends that may be relevant to your brewery’s location.
- Regulatory Environment: What brewery licenses, certifications, and regulations are required by your local government? Understanding compliance is crucial for long-term success.
Customer Analysis
Understanding your target customers is critical for shaping your brewery’s offerings and marketing strategies. In this section, define the key demographics and behaviors of the consumers who will help your brewery thrive.
- Target Market: Who are your ideal customers? Are they craft beer aficionados, local residents, tourists, or a combination of these? Define their age, income, and lifestyle.
- Customer Needs: What specific needs or desires does your brewery fulfill for this potential market? Is it providing a unique beer selection, a great place for socializing, or locally sourced products?
- Customer Acquisition: Describe how you plan to reach and attract these customers, whether through word-of-mouth, social media, events, or other means.
Competitive Analysis
The Competitive Analysis section is where you will examine the strengths and weaknesses of your local competition such as local breweries and other businesses that sell beer. Identifying opportunities to differentiate your brewery will help you be better positioned in the competitive landscape.
- Direct Competitors: Who are the other breweries in your area or niche? Analyze their offerings, pricing strategy, and customer experience.
- Indirect Competitors: Consider other alternatives to your brewery, like bars, restaurants, or even large beer manufacturers. Understanding indirect competition is just as important.
- Competitive Advantage: What sets your brewery apart from the competition? Is it your unique brewing process? Is your company focused on sustainability? Is your taproom experience one to remember?
Marketing Plan
Your Marketing Plan should detail the strategies you’ll use to promote your brewery and build brand awareness. This is your opportunity to showcase how you’ll attract customers and keep them coming back for more.
- Branding and Positioning: What’s your brewery’s unique story? Define your brand identity and how you want it to be perceived—whether it’s adventurous, local, sustainable, or something else entirely.
- Sales Strategy: Describe the different ways you’ll generate revenue, such as through your taproom, retail distribution, or partnerships with restaurants and bars.
- Promotions and Advertising: What channels will you use to get the word out? Consider social media, email campaigns, events, and local advertising to spread awareness.
- Customer Retention: How will you encourage customer loyalty? Offering membership clubs, limited-edition brews, and hosting special events can help maintain a strong relationship with your customer base.
Operations Plan
The business operations section outlines the day-to-day business functions, ensuring smooth production, service, and management. This section is vital for understanding your operational processes and scalability.
- Brewing Process: Detail the steps involved in producing your beer, including the equipment, ingredients, and timeframes for brewing, fermentation, and packaging.
- Supply Chain and Distribution: How will you source ingredients, and what suppliers will you work with? Define your distribution channels. Will you focus locally, regionally, or beyond?
- Facilities and Equipment: Describe the brewery’s physical setup, including brewing and packaging equipment, storage, and the layout of the taproom or public spaces.
- Operational Workflow: Outline the day-to-day workflow, from production to serving customers, to ensure efficiency, quality control, and inventory management.
Management Team
In this section, provide an overview of your management team structure. Investors will want to see that your brewery is in capable hands, so emphasize the strengths and expertise of your team.
- Team Overview: List the key members of your team and their roles within the company. Include relevant experience or expertise that makes them qualified to run a brewery.
- Key Hires: If your brewery is growing, detail any positions you plan to hire for, such as new brewers, marketing professionals, or taproom managers.
- Advisors and Mentors: If you have any industry experts, advisors, or mentors supporting your business, be sure to mention them.
Financial Plan
The Financial Plan is the backbone of your brewery’s business plan, demonstrating how you’ll generate revenue and stay profitable. Solid financial projections give you a clear path forward and will reassure investors that you understand the financial side of your brewery.
- Startup Costs: Outline your initial expenses, including equipment, permits, leases, and any renovations.
- Revenue Projections: Estimate your sales over the next 3-5 years, factoring in the potential for growth, seasonality, and local market conditions.
- Cost Structure: Identify your fixed and variable costs, such as ingredients, labor, rent, and utilities.
- Cash Flow and Profitability: Show how you plan to maintain a healthy cash flow and when you expect to reach profitability.
- Funding Requirements: If you’re seeking investment or loans, specify how much capital you need, how you’ll use it, and your plans for repaying any loans.
By following these steps and including the right details in each section, you’ll be well on your way to creating your own business plan that sets your brewery up for success, whether you’re launching a new business venture or scaling up an existing one.
Brewery Business Plan Example
The following sample can be used as a free business plan template to help you write your own plan.
I. Executive Summary
Business Overview
Based in [Location], [Company Name] brewery makes high-quality, local beer that not only enriches celebrations and traditions but also brings a touch of the extraordinary into daily life. It combines time-honored brewing with new methods and unique recipes to create a range of classic and craft beer everyone can enjoy. [Company Name] beer is the flavor of [Location].
Customer satisfaction is [Company Name]’s highest priority, with beer for every palate. [Company Name] has ambitions to become a household name; a go-to for all occasions.
Products Served
The following are the types of beer that [Company Name] produces:
- IPA
- Seasonal
- Belgian Witbier
- Pale Ale
- Amber Ale
- Lager
Customer Focus
[Company Name] will primarily serve the residents who live within the city. The demographics of these target customers are as follows:
- 302,145 residents
- 79,567 workers
- Average income of $51,031
- 40% married
- 38% in Management/Professional occupations
- Median age: 39 years
Management Team
[Brewery Owner]’s expertise and experience is the [Company Name]’s most valuable asset. After graduating from the University of ABC where he earned a degree in Business, [Brewery Owner] worked at Samuel Adams. In his long experience in the industry, he acquired an in-depth knowledge of the ins and outs of running a brewery before he started [Company name].
[Company Name] will also employ an experienced assistant to help with production. He will also be trained by [Brewery Owner] so he can take over the brewery business when [Brewery Owner] is away.
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
- There is currently no brewery in the community we are entering. In addition, we have surveyed the local population and received extremely positive feedback saying that they explicitly want to purchase our beer when launched.
- The management team has a track record of success in the craft brewery industry.
- The brewery business has proven to be successful in the United States.
Financial Highlights
[Company Name] is seeking a total funding of $400,000 to launch its brewery. The capital will be used for funding capital expenditures, manpower costs, marketing expenses and working capital.
Specifically, these funds will be used as follows:
- Brewery design/build: $200,000
- Working capital: $200,000 to pay for marketing, salaries, and equipment costs until [Company Name] reaches break-even
II. Company Overview
Who is [Company Name]?
[Company Name] is a [Location]-based brewery that produces high-quality, local beer that not only enriches celebrations and traditions but also brings a touch of the extraordinary into daily life. It combines time-honored brewing with new methods and unique recipes to create a range of classic and craft beer everyone can enjoy. [Company Name] beer is the flavor of [Location].
Customer satisfaction is [Company Name]’s highest priority, with beer for every palate. [Company Name] has ambitions to become a household name; a go-to for all occasions.
[Company Name]’s History
Born in Portland, the beer capital of the world, [Brewery Owner] grew up brewing beer. In keeping with family tradition, he was trained in the art and science of handcrafting beer using family recipes and techniques. Upon relocating to [Location], [Brewery Owner] was dismayed to discover a lack of local craft brews. It didn’t take long for him to seize the opportunity to open his own brewery, [Company Name].
Since incorporation, the Company has achieved the following milestones:
- Acquired land
- Developed the company’s name, logo, and website located at [website]
- Determined building, brewing equipment, and fixture requirements
- Began recruiting key employees
[Company Name]’s Products/Services
The following are the types of beer that [Company Name] produces:
- IPA
- Seasonal
- Belgian Witbier
- Pale Ale
- Amber Ale
- Lager
III. Industry Analysis
Over the past five years, the brewery industry has experienced significant change, with the rise of craft breweries, wineries, and distilleries. Smaller, regional operators experienced substantial growth, provoking a slew of new operators to enter the industry.
The industry is also seeing heightened competition. Over the past decade, the industry experienced a substantial rise in industry players, mostly craft breweries. As these breweries continue to expand over the next five years, competition is expected to increase, and historically dominant players will likely struggle to maintain their control of industry revenue. As a result, the development of brand names over the next five years will be critical to major players’ success, both in competition among brewers and against substitute products, such as wine and spirits. Such developments will benefit larger players that run more cost-effective promotional campaigns. At the same time, younger beer drinkers, aged 21 to 30, are expected to increasingly experiment with and seek out unusual brews, which will provide opportunities for craft breweries and microbreweries to expand their market reach.
As competition escalates between breweries and the craft beer boom continues to normalize, the number of new entrants is projected to slow. Still, the number of industry enterprises is expected to increase at an annualized rate of 9.4%.
Over the next five years, the industry is forecast to have steady growth. Operators are expected to experience increases in demand from their largest markets, particularly on-premise channels, such as restaurants, bars, and event spaces. Moreover, smaller operators that rely on in-person transactions through in-house bars and tasting rooms are expected to see demand, as many people seek social drinking experiences.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve the restaurants, hotels, grocery stores, and households within [location] and the immediately surrounding areas.
The precise demographics of the town in which our location resides are as follows:
| Wilmette | Winnetka | |
|---|---|---|
| Total Population | 26,097 | 10,725 |
| Square Miles | 6.89 | 3.96 |
| Population Density | 3,789.20 | 2,710.80 |
| Population Male | 48.04% | 48.84% |
| Population Female | 51.96% | 51.16% |
| Target Population by Age Group | ||
| Age 18-24 | 3.68% | 3.52% |
| Age 25-34 | 5.22% | 4.50% |
| Age 35-44 | 13.80% | 13.91% |
| Age 45-54 | 18.09% | 18.22% |
| Target Population by Income | ||
| Income $50,000 to $74,999 | 11.16% | 6.00% |
| Income $75,000 to $99,999 | 10.91% | 4.41% |
| Income $100,000 to $124,999 | 9.07% | 6.40% |
| Income $125,000 to $149,999 | 9.95% | 8.02% |
| Income $150,000 to $199,999 | 12.20% | 11.11% |
| Income $200,000 and Over | 32.48% | 54.99% |
Customer Segmentation
We will primarily target the following three customer segments:
- Residents: Approximately 80,000 people live in the area, 80% of which are over the age of 21.
- Wholesale accounts: We will target restaurants, hotels, and grocery stores to set up wholesale accounts. These establishments will then sell our beer downstream to end consumers.
- Businesses: Local corporations hold parties and celebrations for special events and milestones. Although a small segment, this is a good place to increase the company’s brand awareness and market reach.
V. Competitive Analysis
Direct & Indirect Competitors
The Gold Liquid Brewing Co.
Established in 2017, The Gold Liquid Brewing Co. is a family-owned and -operated craft microbrewery and gastropub. The operation consists of an 8 bbl brew house, a 2 bbl pilot system, a small batch PicoBrew system, and a 3 kg coffee roaster.
In its taproom, Gold Liquid serves 34 in-house brews on tap, as well as additional taps for guest ciders and 6 wines on draft. Its gastropub food menu features high-quality food designed to complement Good Liquid brews. Guests may eat in the bright dining room, or in the large, dog-friendly outdoor beer garden, which features picnic tables and outdoor games.
Midwestern Brewing Co.
Established in 1998, Midwestern Brewing Co. is a brewpub offering its beers, both bottled and on tap, and serving lunch and dinner from locally sourced ingredients whenever possible. Midwestern operates seven locations in Indiana, though not all serve food. The brewery offers complimentary tastings and monthly guest brewmasters.
Better Brewing Co.
Established in 2018, Better Brewing Co. is a family-friendly, small-batch brewery with a full kitchen on-site serving gourmet-style pub fare. It typically offers a weekly list of entertainment, music, and food and drink specials. Guests may eat in the dining room, or in the dog-friendly beer garden.
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. These advantages include:
- Client-oriented service: [Company Name] will have a full-time sales manager to keep in contact with our wholesale customers.
- Management: [Brewery Owner] has been extremely successful working in the industry and will be able to use his experience to create the best-tasting beers. His unique qualifications will serve customers in a much more sophisticated manner than [Company Name’s] competitors.
- Transparency: To continue to assure customers of the quality of [Company Name]’s products, customers are welcome to tour the brewery for a beer tasting and brewery experience.
VI. Marketing Plan
The [Company Name] Brand
The [Company Name] brand will focus on the Company’s unique value proposition:
- Offers the finest beer at a competitive price
- Has a convenient location in the heart of the city
- Provides excellent customer service
Promotions Strategy
[Company Name] expects its target market to be individuals working and/or living within [state]. [The Company’s] promotions strategy to reach these individuals includes:
Sampling
[Company Name] employees will initially give free beer samples to enable customers to taste the quality and variety of our beer and learn about us.
Ongoing Customer Communications
[Company Name] will maintain a website and publish a monthly email newsletter to tell customers about new events, products, and more.
Pre-Opening Events
Before opening the brewery, [Company Name] will organize pre-opening events designed for prospective customers, local merchants, and press contacts. These events will create buzz and awareness for [Company Name] in the area.
Online Marketing
[Company name] will invest resources in geographically focused internet promotions including search engine optimization (SEO) and pay-per-click (PPC) advertising. The Company will develop its website in such a manner as to direct as much traffic from search engines as possible. Additionally, it will use highly focused, specific keywords to draw traffic to its website, where potential clients will find a content-rich site that presents [Company name] as the trustworthy, well-qualified brewery that it is.
VII. Operations Plan
Functional Roles
To execute [Company Name]’s business model, the Company’s employees divide the following roles:
Operation Functions
- Production/brewing
- Deliveries and business operations
- Sales and Marketing
Administrative Functions
- General & administrative functions including marketing, bookkeeping, etc.
- Hiring and training staff
Milestones
[Company name]’s long-term goal is to become the dominant producer of quality beer in the [Location] area. We seek to be the standard by which other brewers are judged.
The following milestones outline our vision for achieving the brewery’s success. [Company Name] expects to achieve the following milestones in the following [xyz] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Kickoff of promotional campaign |
| [Date 5] | Launch [Company Name] |
| [Date 6] | Reach break-even |
VIII. Management Team
Management Team Members
[Brewery Owner]’s expertise and experience is [Company Name]’s most valuable asset. After graduating from the University of ABC where he earned a degree in Business, [Brewery Owner] worked for a major national brewer. In his long experience in the industry, he acquired an in-depth knowledge of the ins and outs of running a brewery before he started [Company name].
[Company Name] will also employ an experienced assistant to help with production. He will also be trained by [Brewery Owner] so he can take over the business when [Brewery Owner] is away.
Hiring Plan
[Brewery Owner] will serve as [Company Name]’s manager. To launch the brewery, we need to hire the following personnel:
- Brewery workers: 5 full-time to start
- Assistant Manager: 1 full-time to handle the day-to-day operations
- Delivery personnel: 1 full-time
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s revenues will come primarily from the sales of beverages to its customers.
The major costs for the company are packaging costs, salaries, and supplies. In the initial years, the company’s marketing spend will be high, as it establishes itself in the market.
Capital Requirements and Use of Funds
[Company Name] is seeking a total funding of $400,000 to launch its brewery. The capital will be used for funding capital expenditures, manpower costs, marketing expenses and working capital.
Specifically, these funds will be used as follows:
- Store design/build: $200,000
- Working capital: $200,000 to pay for Marketing, salaries, and equipment costs until [Company Name] reaches break-even
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model:
| Number of customers per day | Number of wholesale contracts per year | |||
|---|---|---|---|---|
| FY 1 | 45 | FY 1 | 5 | |
| FY 2 | 55 | FY 2 | 10 | |
| FY 3 | 65 | FY 3 | 15 | |
| FY 4 | 75 | FY 4 | 20 | |
| FY 5 | 85 | FY 5 | 25 | |
| Average order price | $28.00 | Average order | $250 | |
| Annual Lease (per location) | $60,000 |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRE-TAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
