brewers association business plan

About Dick Cantwell

Dick Cantwell is among the most well-respected and experienced craft brewers, co-founding Elysian Brewing Company in 1996, where he served as head brewer until its sale to Anheuser-Busch in 2015.

During his tenure, Elysian was named Large Brewpub of the Year three times at the...

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Craft Brewing Business

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The Brewers Association’s Guide to Starting Your Own Brewery (Second Edition)

May 15, 2013 Keith Gribbins

New breweries are popping up across America nearly every day, but that doesn’t mean the craft brewing industry is easy to break into. To ensure up-and-coming brewmasters understand the complexity of opening a commercial brewery,  Brewers Publications  has released an updated version of its great book,  The Brewers Association’s Guide to Starting Your Own Brewery (Second Edition), by Dick Cantwell.

A veteran in the craft brewing community, Cantwell is a pioneer of Seattle brewing and head brewer at Elysian Brewing Co. , which has three pub locations and a production facility. His extensive background in founding brewpubs informs his approach to this new revision that will help others build flourishing craft breweries from the ground up. The Brewers Association’s Guide to Starting Your Own Brewery (Second Edition) is an indispensable resource. Using many thoughtful questions, Cantwell mentors readers to help them discover and define their direction. Subsequently, he walks them through the preparation and execution required to open a brewery, from start to finish.

“Planning and opening a thriving, quality-oriented brewery is hard work but completely achievable with the right guidance,” Cantwell said. “At a time when the industry is booming and more breweries are emerging, I’m thrilled to be able to share my experience and help fellow brewers start on the right foot. The updated edition gets readers thinking about what’s important and provides practical advice that will help turn any craft brewing dream into a reality.”

This must-have, comprehensive how-to guide adeptly covers everything from ingredients, financing, business plans and quality assurance to distribution, wastewater, sustainability and more for prospective brewpub and packaging brewery owners alike. Cantwell also discusses how to make business ideas stand out from the rest by including a sample business plan , beneficial for brewers of all levels. Armed with this outline of what works and what doesn’t, brewers will discover the necessary considerations for all stages of the process to start a successful venture.

“I am certain any aspiring commercial brewery in the planning phase —or small brewery looking to grow — will find useful lessons in every chapter Dick has written,” said Sam Calagione, founder and president, Dogfish Head Craft Brewery in the guide’s foreword. “This book is written from a true brewer’s perspective.”

Brewers Publications supports the mission of the Brewers Association by publishing books of enduring value for amateur and professional brewers as well as titles that promote understanding and appreciation of American craft beer. With more than 50 titles to choose from, it’s the largest publisher of contemporary and relevant brewing literature for today’s craft brewers, homebrewers and beer enthusiasts.

The first edition of  The Brewers Association’s Guide to Starting Your Own Brewery  came out in 1996. To view a behind the scenes interview with Cantwell on the new edition,  click here .

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May 15, 2013 at 11:15 am

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Crafting the Perfect Business Plan: Brewery Edition for Aspiring Brewers

By henry sheykin, get full bundle.

Opening a successful craft beer brewery requires meticulous planning and preparation. Before drafting your business plan, it's crucial to lay the groundwork for your venture. This concise 9-step checklist outlines the essential steps to take, from assessing market demand to establishing key partnerships, ensuring your brewery is positioned for long-term success.

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Steps Prior To Business Plan Writing

Assess Market Demand and Competition in the Local Area

Before embarking on your journey to open a craft beer brewery, it's crucial to thoroughly assess the market demand and competitive landscape in your local area. This step will provide valuable insights into the viability of your business idea and help you identify opportunities and potential challenges.

First, research the overall craft beer industry trends in your region. According to the Brewers Association, the craft beer industry experienced a 4% growth in sales volume in 2021, despite the ongoing pandemic. This indicates a continued strong demand for unique, high-quality craft beers among consumers.

• Analyze the demographics and preferences of your target audience, such as age, income, and lifestyle factors that may influence their craft beer consumption habits.
• Identify the key players in the local craft beer market, including the number of existing breweries, their product offerings, and their market share.
• Assess the pricing strategies and distribution channels used by your competitors to understand how you can differentiate your brewery and effectively reach your target customers.

Next, consider the specific market demand for craft beer in your local area. According to a recent industry report, the craft beer market in [your city/region] has grown by approximately 8% over the past 3 years , indicating a strong and growing consumer base. Additionally, a survey conducted by [your local craft beer association] found that over 60% of residents in [your city/region] consider themselves regular craft beer drinkers , further highlighting the potential for your brewery to thrive.

By thoroughly understanding the market demand and competitive landscape, you can develop a more informed and targeted business plan for your craft beer brewery. This will help you identify your unique selling proposition, optimize your product offerings, and effectively position your brewery to capture a significant share of the local craft beer market.

Determine Your Unique Selling Proposition and Target Audience

To stand out in the competitive craft beer market, it's crucial for 'Hoppy Trails Craft Brewery' to clearly define its unique selling proposition (USP) and target audience. By identifying what sets your brewery apart and who your ideal customers are, you can develop a focused business strategy and marketing plan that resonates with your target market.

To determine your USP, start by evaluating the local craft beer landscape. Analyze the offerings and positioning of your competitors to identify gaps in the market that your brewery can fill. Consider factors such as your brewing expertise, use of unique ingredients, emphasis on sustainability, or community involvement that can differentiate your brand.

For example, 'Hoppy Trails Craft Brewery' could position itself as the go-to destination for adventurous beer enthusiasts seeking bold, experimental flavors made with locally sourced ingredients. This USP aligns with the brewery's focus on innovation and community engagement.

• Conduct in-depth market research to understand the preferences, behaviors, and pain points of your target audience.
• Create detailed buyer personas to guide your product development, marketing, and customer service efforts.
• Continuously gather feedback from your customers to refine your USP and ensure it resonates with their needs.

Once you have defined your USP, it's time to identify your target audience. Craft beer consumers come from diverse backgrounds, so it's essential to narrow your focus to the specific demographic that aligns with your brewery's unique offerings and brand identity.

According to a 2021 Brewers Association report , the average craft beer consumer is a 34-year-old male with a household income of $80,000 or more . However, the craft beer industry is seeing an increasing number of women and younger consumers (aged 21-34) entering the market, presenting opportunities for breweries to expand their target audience.

By clearly defining your USP and target audience, 'Hoppy Trails Craft Brewery' can develop a tailored business plan and marketing strategy that resonates with the right customers and helps you stand out in the crowded craft beer industry.

Evaluate Your Financial Resources and Funding Options

Securing the necessary financial resources is a critical step in establishing a successful craft beer brewery. Before diving into the business plan, it's essential to thoroughly assess your financial situation and explore viable funding options that align with your brewery's goals and long-term vision.

One of the first steps is to estimate the initial startup costs for your craft beer brewery. These costs can include equipment, facilities, licenses and permits, inventory, and working capital. According to industry data, the average startup cost for a craft brewery in the United States ranges from $500,000 to $1 million , with some smaller-scale operations able to launch for as little as $250,000 .

• Carefully evaluate your personal savings, assets, and credit to determine how much you can contribute as initial equity investment.
• Research government grants, small business loans, and crowdfunding platforms that may provide additional funding sources for your craft brewery startup.
• Consider approaching local angel investors or venture capitalists who have a keen interest in the craft beer industry and are willing to provide seed funding or growth capital.

Once you have a clear understanding of your financial resources, it's time to explore various funding options. Craft brewery financing can come from a combination of sources, including:

• Personal savings and investments: Leveraging your own financial resources can demonstrate your commitment to the business and may make you more attractive to potential lenders or investors.
• Small business loans: Applying for loans from banks, credit unions, or the U.S. Small Business Administration (SBA) can provide the necessary capital to fund your startup costs.
• Crowdfunding: Platforms like Kickstarter or Indiegogo allow you to tap into a community of craft beer enthusiasts and raise funds through small individual contributions.
• Angel investors or venture capital: Seeking investment from individuals or firms with a focus on the craft beer industry can provide significant funding and valuable industry expertise.

When evaluating your funding options, it's crucial to consider the terms, interest rates, and repayment schedules to ensure that the financing aligns with your business plan and long-term financial goals. Additionally, be prepared to provide a detailed financial forecast, including projected revenue, expenses, and cash flow, to demonstrate the viability of your craft beer brewery to potential lenders or investors.

Identify Potential Locations and Assess Zoning Requirements

Selecting the right location for your craft beer brewery is a critical step in the business planning process. The location you choose will impact factors such as production capacity, distribution, and overall operational efficiency. When evaluating potential sites, it's essential to thoroughly assess the local zoning regulations and ensure your brewery operations align with the designated land use requirements.

Start by researching the available commercial or industrial properties in your target market area. Look for spaces that offer the necessary square footage, utilities, and access to accommodate your brewing equipment and production needs. Consider factors like proximity to your target customer base, accessibility for deliveries and distribution, and available parking for your taproom or tasting room.

Once you've identified a few promising locations, dive deeper into the local zoning regulations. Connect with your city or county planning department to understand the permitted uses for the property, as well as any special permits or licenses required to operate a craft brewery on the site. Carefully review the zoning code to ensure your proposed brewery operations, such as brewing, packaging, and on-site sales, are allowed in the designated zoning district.

• Seek out properties zoned for commercial or industrial use, as these are more likely to allow for brewery operations.
• Investigate any potential noise, odor, or waste disposal regulations that may impact your brewery operations.
• Consider the availability of utilities, such as water, electricity, and natural gas, as these are essential for a successful brewing operation.

In addition to zoning requirements, you'll also need to research any local building codes, fire safety regulations, and health department guidelines that may apply to your craft brewery. Ensure the property you select can be easily retrofitted to meet these regulatory standards, or factor in the necessary renovations and upgrades to your overall budget and timeline.

By carefully evaluating potential locations and thoroughly understanding the zoning and regulatory landscape, you'll be able to identify the optimal site for your craft beer brewery and ensure a smooth path to opening and operating your business. This due diligence will not only help you avoid costly delays or compliance issues but also position your brewery for long-term success within your local community.

Assemble a Team of Experienced Brewers and Business Professionals

When starting a craft beer brewery, assembling the right team is crucial for success. Attracting experienced brewers and seasoned business professionals can provide the necessary expertise to navigate the complexities of the industry and ensure the long-term viability of your 'Hoppy Trails Craft Brewery'.

Experienced Brewers: Hiring skilled and passionate brewers is essential for crafting high-quality, innovative craft beers that will resonate with your target audience. Look for individuals with a deep understanding of the brewing process, a keen sense of flavor profiles, and a commitment to using locally sourced ingredients. According to the Brewers Association, the average craft brewery employs around 3-5 full-time brewers , so you'll want to build a team of talented individuals who can collaborate to develop your unique beer offerings.

Business Professionals: In addition to your brewing team, it's important to assemble a group of business-savvy individuals who can handle the operational, financial, and marketing aspects of your craft beer brewery. This may include a general manager, a sales and distribution manager, a marketing and branding specialist, and a financial expert. The Brewers Association reports that the average craft brewery employs around 10-15 full-time staff members , so you'll need to build a well-rounded team to ensure the smooth running of your business.

• Leverage your network and industry connections to find experienced brewers and business professionals who share your vision for 'Hoppy Trails Craft Brewery'.
• Consider offering competitive compensation packages and equity incentives to attract top talent and build a dedicated team.
• Encourage collaboration and open communication among your team members to foster a positive work culture and drive innovation.

By assembling a team of experienced brewers and business professionals, you'll be well-positioned to develop high-quality craft beers, effectively manage your operations, and execute a comprehensive marketing strategy to attract and retain loyal customers for your 'Hoppy Trails Craft Brewery'.

Research Legal and Regulatory Requirements for Operating a Craft Beer Brewery

Starting a craft beer brewery involves navigating a complex web of legal and regulatory requirements. Before you can begin brewing and selling your craft beers, it's essential to thoroughly understand the applicable laws, licenses, and permits required in your local jurisdiction. This crucial step will ensure your business operates in compliance with all relevant regulations and avoids costly fines or legal issues down the line.

The specific legal and regulatory requirements for a craft beer brewery can vary significantly depending on your location, as laws and regulations can differ between states, counties, and even cities. However, there are some common elements that all aspiring craft brewery owners should be aware of and prepared to address:

• Liquor Licensing: Obtaining the necessary liquor licenses is a critical first step. This typically involves applying for a brewery license, as well as any additional permits for on-site consumption, distribution, or retail sales. The application process can be lengthy and complex, so it's important to research the requirements well in advance.
• Federal Regulations: At the federal level, the Alcohol and Tobacco Tax and Trade Bureau (TTB) oversees the production, labeling, and taxation of alcoholic beverages, including craft beers. Compliance with TTB regulations is essential for your brewery's operations.
• State and Local Regulations: In addition to federal requirements, you'll also need to navigate a patchwork of state and local regulations. These can include zoning laws, building permits, health and safety inspections, and environmental compliance, among others.
• Taxation: Craft breweries are subject to a variety of taxes, including federal excise taxes, state and local sales taxes, and potentially additional taxes or fees specific to your location. Ensuring proper tax compliance is crucial to avoid penalties and maintain financial stability.
• Start your research early and seek the guidance of experienced legal and regulatory professionals who specialize in the craft beer industry. They can help you navigate the complex maze of requirements and ensure your brewery is set up for success from the outset.
• Stay up-to-date with any changes in laws or regulations that may impact your brewery, as the regulatory landscape can evolve over time. Regularly review your compliance and make necessary adjustments to maintain your legal standing.

By thoroughly understanding and addressing the legal and regulatory requirements for operating a craft beer brewery, you can lay a strong foundation for your business and avoid potential pitfalls that could derail your plans. This crucial step will help ensure your craft brewery operates in a compliant and sustainable manner, allowing you to focus on crafting high-quality beers and building a loyal customer base.

Develop a Comprehensive Product Development and Testing Strategy

Developing a robust product development and testing strategy is crucial for the success of Hoppy Trails Craft Brewery . As the craft beer industry continues to grow, with over 8,000 craft breweries operating in the United States as of 2020, it is essential to create a unique and differentiated product offering that resonates with your target audience.

Begin by conducting thorough market research to identify emerging trends, customer preferences, and flavor profiles that are gaining popularity in the craft beer market. According to the Brewers Association , the top-selling craft beer styles in 2020 were IPAs, Stouts, Pale Ales, and Lagers, accounting for over 70% of craft beer volume . Use this data to inform your initial product development efforts.

• Experiment with various hop varieties, malt profiles, and yeast strains to create unique and innovative flavor combinations that set your brewery apart from the competition.
• Engage with your target audience through social media, tasting events, and feedback sessions to gather insights and refine your product offerings.
• Invest in a well-equipped pilot brewing system to test new recipes and gather valuable data on customer preferences and market demand.

Once you have identified your core product lineup, implement a comprehensive testing strategy to ensure consistent quality and flavor profiles. Establish strict quality control measures, such as regular sensory evaluations, chemical analysis, and microbiological testing, to maintain the highest standards of your beer.

Collaborate with experienced brewmasters and industry experts to refine your recipes, optimize your brewing processes, and stay up-to-date with the latest trends and technologies in the craft beer industry. By developing a comprehensive product development and testing strategy, Hoppy Trails Craft Brewery can position itself as a leader in the local craft beer market and attract a loyal customer base.

Establish Partnerships with Local Suppliers and Distributors

As you embark on your journey to establish a successful craft beer brewery, one critical step is to build strong partnerships with local suppliers and distributors. These relationships will not only ensure a steady supply of high-quality ingredients and materials but also help you efficiently distribute your products to a wider customer base.

When it comes to suppliers, it's essential to identify and connect with local farmers, maltsters, hop growers, and other providers of essential brewing ingredients. By sourcing locally, you can not only reduce your carbon footprint but also tap into the unique flavors and characteristics of your regional terroir. This approach aligns with the craft beer movement's emphasis on using fresh, locally-sourced ingredients to create distinctive and authentic brews.

• Tip: Attend local farmer's markets, industry events, and trade shows to network and connect with potential suppliers who share your commitment to quality and sustainability.

Equally important are your relationships with local distributors. These partners will play a crucial role in getting your craft beers into the hands of consumers, whether through retail outlets, restaurants, or bars. When evaluating potential distributors, look for those with a proven track record in the craft beer industry, a deep understanding of your target market, and a commitment to supporting the growth of local breweries.

To build a successful distribution network, consider the following strategies:

• Establish exclusivity agreements: Work with distributors to secure exclusive rights to distribute your beers within a specific geographic region, ensuring your products receive dedicated attention and promotional support.
• Leverage local relationships: Leverage your existing connections with local businesses, such as restaurants, bars, and specialty retailers, to secure distribution agreements and secure prime shelf space for your products.
• Participate in industry events: Attend local and regional craft beer festivals, tastings, and trade shows to network with potential distribution partners and showcase your brand to a wider audience.

By cultivating strong partnerships with local suppliers and distributors, you can ensure a steady flow of high-quality ingredients, efficient distribution, and a robust presence in your target market. This strategic approach will not only support the growth of your craft beer brewery but also contribute to the overall vibrancy of your local craft beer ecosystem.

Create a Detailed Marketing and Promotional Plan

As you embark on your journey to establish Hoppy Trails Craft Brewery , a crucial step in your business plan is to develop a comprehensive marketing and promotional strategy. This plan will be instrumental in attracting and retaining your target audience, building brand recognition, and driving sales in the competitive craft beer market.

To create an effective marketing and promotional plan, consider the following key elements:

• Define Your Target Audience: Conduct thorough market research to identify your ideal customers. Understand their demographics, preferences, and the factors that influence their purchasing decisions when it comes to craft beer. This knowledge will inform the development of tailored marketing campaigns and messaging.
• Establish a Strong Brand Identity: Craft a unique and memorable brand identity that resonates with your target audience. This includes developing a distinct logo, color scheme, and brand personality that effectively communicates the essence of Hoppy Trails Craft Brewery .
• Leverage Digital Marketing Strategies: In today's digital landscape, a robust online presence is essential. Develop a comprehensive digital marketing strategy that includes a user-friendly website, engaging social media platforms, and targeted online advertising campaigns. Utilize analytics to continuously optimize your digital efforts and reach your audience effectively.
• Implement Traditional Marketing Tactics: While digital marketing is crucial, do not overlook the power of traditional marketing channels. Consider utilizing print advertising, direct mail, and local community events to build brand awareness and reach a wider audience.
• Cultivate Local Partnerships: Forge partnerships with local businesses, organizations, and influencers to leverage their existing networks and tap into the vibrant craft beer community. Collaborate on cross-promotional activities, tap takeovers, and community events to strengthen your brand's presence and increase customer engagement.
• Offer Unique Experiences: Craft beer enthusiasts often seek out unique and memorable experiences. Develop a schedule of special events, brewery tours, and tasting experiences that allow customers to immerse themselves in the Hoppy Trails Craft Brewery brand and culture.
• Regularly measure the effectiveness of your marketing and promotional efforts, and be ready to adapt your strategies based on customer feedback and market trends.
• Leverage data-driven insights to optimize your marketing campaigns and ensure a strong return on investment (ROI).

By implementing a well-crafted marketing and promotional plan, you can effectively position Hoppy Trails Craft Brewery as a premier destination for craft beer enthusiasts in your local market. This strategic approach will help you attract a loyal customer base, build brand equity, and drive the long-term success of your craft beer business.

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Brewery Business Plan Template

Written by Dave Lavinsky

You’ve come to the right place to create your brewery business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their craft breweries.

Brewery Business Plan Example

Below is a sample brewery business plan to help you write your own business plan:

Executive Summary

Business overview.

Mountain Craft Beer is a startup brewery located in Boulder, Colorado. The company is founded by Richard and Susan Williams, long-time craft beer enthusiasts who are ready to venture out and start their own brewing business. Richard has worked as a Brewmaster in a local brewery for over ten years. He has a Bachelor of Science degree in Food Science from the University of Colorado. Susan has a Masters degree in Business Administration from the University of New York. She has worked as a General Manager for a local restaurant and bar for the past five years. Now that the duo has obtained the experience and knowledge needed to run a craft beer business, Richard and Susan are ready to start a brewery of their own. Richard is confident in his ability to to manage the brewing process, while Susan is ready to take on the leadership role and manage all aspects of business operations. Richard and Susan will recruit a team of highly qualified professionals to help manage the day to day complexities of running a craft brewery – marketing and sales, accounting and budgeting, customer service, product management, and quality control.

Mountain Craft Beer will make unique craft beers that patrons can enjoy onsite or purchase through distributors. The Mountain Craft Beer brewery will provide a fun taproom tasting experience for guests to try out new brews. Mountain Craft Beer will be the ultimate choice in Boulder for its specialty craft beers made with premium locally sourced ingredients.

Product Offering

The following are the products and services that Mountain Craft Beer will provide:

• Craft beer tasting
• Barrel-aged beer
• Seasonal IPAs
• Seasonal Ales
• Branded merchandise and apparel

Customer Focus

Mountain Craft Beer will target all individuals over the age of 21 in Boulder, Colorado. They will target locals and tourists. They will also target all beer-drinkers from seasoned connoisseurs to individuals brand new to craft beer, and everyone in between. No matter the customer, Mountain Craft Beer will deliver the best customer service, unique product offerings, and craft beer tastings led by friendly, knowledgeable staff.

Management Team

Mountain Craft Beer will be owned and operated by Richard and Susan Williams, long-time craft beer enthusiasts who are ready to venture out and start their own brewing business. Richard has worked as a Brewmaster in a local brewery for over ten years. He has a Bachelor of Science degree in Food Science from the University of Colorado. Susan has a Masters degree in Business Administration from the University of New York. She has worked as a General Manager for a local restaurant and bar for the past five years. Now that the duo has obtained the experience and knowledge needed to open their own business, Richard and Susan are ready to start a craft brewery of their own. Richard is confident in his ability to to manage the craft brewing process, while Susan is ready to take on the leadership role and manage all aspects of business operations.

Success Factors

Mountain Craft Beer will be able to achieve success by offering the following competitive advantages:

• Friendly, knowledgeable, and highly qualified team of brewing professionals that will create unique flavors and blends, lead tasting experiences, and serve as informative guides providing the best customer service around.
• Unique product selection made with premium locally-sourced ingredients. New beers will be introduced each month and rotating seasonal selections will be renewed based on popularity.
• Mountain Craft Beer will be able to offer the best pricing in town because they will save on shipping costs by using local suppliers. The savings will be passed on to customers.

Financial Highlights

Mountain Craft Beer is seeking $500,000 in debt financing to launch its brewery business. The funding will be dedicated towards securing the facility and purchasing brewing equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and association memberships. The breakout of the funding is below:

• Build-out of the facility: $100,000
• Brewing equipment, supplies, and ingredients: $240,000
• Three months of overhead expenses (payroll, rent, utilities): $140,000
• Marketing costs: $10,000
• Working capital: $10,000

The following graph below outlines the pro forma financial projections for Mountain Craft Beer.

Company Overview

Who is mountain craft beer.

Mountain Craft Beer is a newly established craft brewing company in Boulder, Colorado. Mountain Craft Beer will be the ultimate choice for craft beer enthusiasts in the area. Mountain Craft Beer will provide an exclusive selection of craft beers, with new editions being introduced monthly and rotating seasonal selections that will be renewed based on popularity. Their exclusive, customer-centric approach combined with their use of locally sourced ingredients will make them a unique alternative to the typical craft beer experience. Mountain Craft Beer will be able to cater to their customers with unique product offerings and informative beer tasting events led by a team of highly qualified brewers. Mountain Craft Beer’s mission is to provide a fun and welcoming experience for its customers while delivering highly sought after creations that can’t be found anywhere else.

Mountain Craft Beer History

Mountain Craft Beer is owned and operated by Richard and Susan Williams, long-time craft beer enthusiasts who are ready to venture out and start their own brewing business. Richard has worked as a Brewmaster in a local brewery for over ten years. He has a Bachelor of Science degree in Food Science from the University of Colorado. Susan has a Masters degree in Business Administration from the University of New York. She has worked as a General Manager for a local restaurant and bar for the past five years.

Since incorporation, Mountain Craft Beer has achieved the following milestones:

• Registered Mountain Craft Beer, LLC to transact business in the state of Colorado.
• Has a contract in place to lease the brewing facility.
• Reached out to numerous contacts to include craft beer enthusiasts, former customers, and friends and family networks to create excitement for the new brewery.
• Began recruiting a staff of brewers, sales associates, and marketing professionals to work at Mountain Craft Beer.

Mountain Craft Beer Services

Industry analysis.

The global craft brewing industry is valued at $95BM. Beer is known for being the oldest and most broadly consumed beverage in the alcoholic category worldwide. The craft beer segment of the retail beer market in the United States has been growing steadily over the past ten years. In 2012, craft beer accounted for approximately 10% of the market. By 2021, this number increased to 26.8% of the market.

The U.S. brewery industry first became popular in the 2000s and hasn’t stopped growing since then. In 2006, there were approximately 1,400 breweries across the country. As of 2020, this number has grown to over 9,000.

The primary driver for growth in the United States craft beer market is the public’s increasing desire to find new and innovative drinks. The three most popular types of craft beers are pilsner, ale, and lager. Lager is the most popular of the three. Craft brewery industry operators can maintain a competitive advantage in the market by producing unique flavors and catering to their customers’ tastes.

Customer Analysis

Demographic profile of target market.

The precise demographics for Boulder, Colorado are:

Customer Segments

Mountain Craft Beer will primarily target the following customer profiles:

• Residents 21 and over of Boulder, Colorado and surrounding areas
• Tourists 21 and over of Boulder, Colorado and surrounding areas
• Craft beer connoisseurs and enthusiasts (21 and over)
• Craft beer newbies (21 and over)

Competitive Analysis

Direct and indirect competitors.

Mountain Craft Beer will face competition from other companies with similar business profiles. A description of each competitor company is below.

Boulder Brewery

Boulder Brewery is a newly established craft beer brewery and gastropub located in Boulder, Colorado. Boulder Brewery is owned and operated by a team of professional brewmasters and chefs. The brewery offers onsite craft beer tastings and has a full restaurant open seven days per week. Boulder Brewery also sells its craft beer to distributors. The brewery promises to provide unique flavor blends and premium exotic ingredients.

BC Craft Beer Company

BC Craft Beer Company is a Colorado-based brewery that provides fresh craft beer blends. BC Craft Beer Company provides a comprehensive menu of ales, pilsners, lagers, and other beers on site and available to order online. The owners of BC Craft Beer Company are former brewmasters so they understand how to create fine craft beers from scratch. Customers can depend on their unique brewing process to achieve one-of-a-kind drinks. By choosing BC Craft Beer Company customers know they are getting the highest quality ingredients and specialty beverages they can brag about. BC Craft Beer Company uses holistic inspections and quality control measures to ensure each batch exceeds the most stringent quality standards.

Crafty Colorado Brews

Crafty Colorado Brews is a trusted Colorado brewery that provides superior service to patrons in Boulder, Colorado and the surrounding areas. The company makes small batches of seasonal drinks onsite. Products include pale ales, pilsners, and lagers. Crafty Colorado Brews hosts craft beer tasting events onsite and also distributes its products to local restaurants and liquor stores.

Competitive Advantage

Mountain Craft Beer will be able to offer the following advantages over their competition:

• Friendly, knowledgeable, and highly qualified team of brewing professionals that is able to create high quality, unique flavors using locally sourced ingredients and cater to customers’ preferences.
• New flavors developed each month and rotating seasonal selections that are renewed based on popularity.
• Mountain Craft Beer offers the best pricing in town. Their pricing structure is the most cost effective compared to the competition.

Marketing Plan

Brand & value proposition.

Mountain Craft Beer will offer the unique value proposition to its clientele:

• Highly-qualified team of skilled employees that is able to lead fun tasting events and provide insightful information to craft beer enthusiasts and novices alike.
• Unbeatable pricing to its customers – Using local suppliers allows the company to save on shipping costs and pass these savings on to its customers.

Promotions Strategy

The promotions strategy for Mountain Craft Beer is as follows:

Word of Mouth/Referrals

Richard and Susan Williams have built up an extensive network of craft beer enthusiasts and industry professionals. They plan to leverage this network to help them promote the new brewery.

Professional Associations and Networking

Mountain Craft Beer will become a member of Colorado Brewers Guild, Brewers Association, and the Master Brewers Association of the Americas. They will focus their networking efforts on expanding their customer network.

Print Advertising

Mountain Craft Beer will invest in professionally designed print ads to display in programs or flyers at industry networking events, magazines, direct mailers, and newspapers.

Website/SEO Marketing

Mountain Craft Beer will utilize an in-house marketing director to design the company website. The website will be well organized, informative, and list all of Mountain Craft Beer’s current product offerings. The website will also list contact information and upcoming tasting events.

The marketing director will also manage Mountain Craft Beer’s website presence with SEO marketing tactics so that anytime someone types in the Google or Bing search engine “Colorado craft beer” or “brewery near me”, Mountain Craft Beer will be listed at the top of the search results.

Social Media/Influencers

The marketing director will create a brand presence across multiple social media platforms such as Facebook, Instagram, Twitter, and TikTok. These accounts will be updated regularly to maintain an active social media presence. The company will work with social media influencers who will help to promote its products.

Pricing Strategy

The pricing of Mountain Craft Beer will be moderate and slightly lower than competitors so customers feel they receive value when purchasing craft beer from the company.

Operations Plan

The following will be the operations plan for Mountain Craft Beer.

Operation Functions:

• Richard Williams – Co-owner and Brewmaster who will oversee all brewing staff and manage the product development process.
• Susan Williams – Co-Owner and Brewery Operations Manager who will oversee all staff (outside of brewers) including sales, marketing, accounting, and maintenance employees.
• Ben Smith – Staff Accountant will provide all client accounting, tax payments, and monthly financial reporting.
• Michelle Miller – Marketing Director who will provide all marketing promotions for Mountain Craft Beer.
• John Davis – Maintenance Director who will provide all maintenance for the facility.

Milestones:

Mountain Craft Beer will have the following milestones complete in the next six months.

8/1/2022 – Finalize contract to lease facility

8/15/2022 – Finalize personnel and staff employment contracts

9/1/2022 – Begin build-out of the brewery

9/15/2022 – Begin networking at industry events

9/22/2022 – Begin moving into the facility

10/1/2022 – Mountain Craft Beer opens its brewery for business

Financial Plan

Key revenue & costs.

The revenue drivers for Mountain Craft Beer are the fees charged to customers in exchange for the products and fees charged to enter exclusive tasting events.

The cost drivers will be the overhead costs required in order to staff a brewery. The expenses will be the payroll cost, rent, utilities, craft beer ingredients, and marketing materials.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Number of Beers Sold Per Month: 3,000
• Average Fees per Month: $15,000
• Office Lease per Year: $100,000

Financial Projections

Profit and loss statement.

Balance Sheet

Cash Flow Statement

Free Business Plan Template PDF for a Brewery

You can download our free brewery business plan template PDF here. This is a brewery business plan template you can use in PDF format. You can easily complete your business plan using our Brewery Business Plan Template here .

Brewery Business Plan FAQs

What is a brewery business plan.

A brewery business plan is a plan to start and/or grow your brewery business. Among other things, it outlines your brewery concept, identifies your target customers, presents your marketing strategy, and details your financial projections.

What are the Steps To Start a Brewery Business?

Starting a brewery business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your business goals and get started faster.

1. Write a Brewery Business Plan – The first step in starting a business is to create a detailed brewery business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure – It’s important to select an appropriate legal entity for your brewery business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do market research and choose wisely so that your brewery business is in compliance with local laws.

3. Register Your Brewery Business – Once you have chosen a legal structure, the next step is to register your brewery business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options – It’s likely that you’ll need some capital to start your brewery business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location – Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of brewery space would be suitable for your operations. 

6. Hire Employees – There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Brewery Equipment & Supplies – In order to start your brewery business, you’ll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business – Once you have all the necessary pieces in place, it’s time to start promoting and marketing your brewery business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing strategies such as radio or print advertising. 

Learn more about how to start a successful brewery business and the business planning process:

How to Start a Brewery Business

How to Start a Brewery

Welcome Beer Lovers!

An American in Moscow's Craft Beer Revolution

Expat Dan Madden has turned his passion into a new profession with the help of a Russian friend.

Moscow's craft beer scene is exploding. In just over a year, the city's handful of joints specializing in artisan ales have multiplied to some 40 to 50 locations, and local brewers are so far behind demand that craft beer bars are importing from abroad.

See the Photo Gallery: What's That You're Drinking? Craft Beer Made in Moscow

In the midst of this explosion is Dan Madden, a reformed plastic resin salesman from Los Angeles who reinvented himself as a craft beer guru after dropping everything and moving to Moscow in 2008.

"I got divorced, and didn't have any kids. After 20 years of driving in Los Angeles I wanted to live in a city where I could just take the metro everywhere, and I always liked Moscow," said Madden.

Seven years later, the 49-year-old Madden speaks fluent Russian and has a Russian wife and a child. Uninspired by the plastic resin business, Madden was looking for a more interesting and rewarding career.

The inspiration to brew craft beer struck him two years ago in a pub during a visa run to Dublin.

"The bartender told me about a big exhibition at the ­expo center about craft beer. So I went over there, and got enthus­ed about it … I always liked beer, and being an American I knew a lot about craft beer already," he said.

Madden returned to Moscow with renewed purpose. "I studied my butt off. First I read [about brewing craft beer], and then I read some more," he said, "and then I went to the Internet to find craft brewers here in Moscow."

The timing was serendipitous. While Madden hit the books, a challenge to Moscow's mainstream bar scene — notorious for expensive cocktails, generic beers, and frustrating face control — began to rise in the city's back alleys and corner venues.

Though it has been possible to find craft beer in Moscow for several years, they were few and far between. In the last year, the city has seen an astonishing explosion of bars and restaurants selling craft beer.

According to a website maintained by a group of ­Russian craft beer enthusiasts calling themselves the "First Beer Club," there are nearly 60 locations specializing in local micro-­brews in Moscow alone. Similar movements can be found in other major cities like St. Petersburg and Yekaterinburg.

In Moscow, one of the major craft breweries is Stamm Beer, founded in 2011 by a young Russian entrepreneur, Andrei Ivanov.

Four years on, the 36-year-old Ivanov's line of Stamm Beers can be found in many of Moscow's craft bars.

Madden inspecting Ivanov's collection of hops, a vital ingredient that gives craft beers their strong taste. 

While giving a tour of his brewery, located about 20 kilometers outside Moscow's MKAD ring road and decked out with state-of-the-art brewing equipment imported largely from Hungary, Ivanov described the Russian craft movement as so­mething of a repeat of the American movement in the 1980s.

The craft movement in America is generally credited with being pioneered by Ken Grossman and Paul Camusi, two home-brewers from California who founded Sierra Nevada, today a household brand.

The American craft focus, as explained by Ivanov, is on hop-heavy beers such as India Pale Ales (IPAs) and double IPAs. With no strong brewing tradition of their own to call on, Russian craft brewers have largely followed this style, Ivanov said.

But the Russian craft scene has also called on Belgian- and German-style yeast-driven beers, he said. "In those beers," Ivanov explained, "ingredients like malts and hops are important, but the flavor is driven by the yeast. In most American beers, the yeast is essentially flavorless.

"At Stamm, we make a lot of beers based on that yeast-driven flavor profile, and then American hop-driven beers like Red River and El Dorado," he added.

Stamm has seen nearly 250 percent growth in production output since its founding in 2011 — a growth rate driven by a level of demand the brewer never could have dreamed of. Taken as a whole, craft brewers are now putting out 300,000 liters a year in Russia, Ivanov said.

To compare, according to Russian federal statistics agency Rosstat, in 2014 around 8.16 billion liters of beer were produced in Russia. In Moscow, according to Ivanov, around 1.3 billion liters were sold last year.

Madden and Ivanov would eventually cross paths in 2014, but first the would-be American craft brewer had to come up with a game plan to enter the scene.

In 2013, Madden visited Boston with his Russian friend, a surgeon named Alexander Ivanov (no relation to Andrei). The two were sitting in a bar, marveling at the variety of beers, and Ivanov, known to his friends as "Dok," lamented the lack of variety in Russia.

The two resolved to found a beer company in Russia. They incorporated in Moscow in November 2014 under the name Dok-n-Dan Beer Brewing Company.

Madden explained that he is responsible for most of the brewing and management legwork, while Dok is something of the company's mascot. The surgeon specializes in removing vascular tumors from Russian children, and Madden and Dok have pledged to donate a portion of their proceeds to charities that fund the surgeries.

Unfiltered beer passing through a filter to remove sediment and produce a clear beer. 

Madden's search for a local brewer who might rent him a brewing tank led him to Ivanov's Stamm Beer. He cold called the Russian to propose a partnership.

"It was actually pretty funny. I called his secretary and she was like, 'Who are you? Just some American guy? I'm not sure he is going to want to talk to you.' But he came to the phone, we started talking, and he was into it," he said.

Ivanov allowed Madden to rent out a tank, and Dok-n-Dan set to work on its "first and flagship beer," known as Rockefeller Elite Cream Bock Ale, which Madden described as "my own recipe and a mix of different beer styles, including U.S. Cream Ale and German Maibock."

After several unsuccessful small batch experiments, the first 2,000-liter batch of Rockefeller was finally brewed in March this year.

"Since then, I've brewed four batches," Madden said.

Rockefeller is being marketed as a high-end craft beer, ­selling at about 500 to 600 rubles ($8-10) per half-liter. Dok-n-Dan is now brewing cheaper beers, such as an American-style Witbier known as White Gold, "and we plan to brew both a dry stout and a session IPA this winter," said Madden.

Madden is already selling his company's beers in the city's bars. Though things are going well, the American said he has to constantly visit locations where his beers are sold to make sure competitors have not sabotaged his equipment — a real threat that resulted in his beers at one bar going flat.

Though still in the early stages, Madden has big plans for his company.

"I see myself in one year owning my own brewery, with Ivanov's help and the help of the whole team," Madden said. "I already have distributors onboard, and everyone's excited about it."

Madden's partnership with Stamm Beer will likely factor heavily into his ability to succeed in establishing his own brewery, since Stamm has nearly five years of experience in brewing. But Madden has also been valuable to his Russian comrades as an information middle man.

Madden showing off his new high-end Rockefeller craft beer, which sells for around 600 rubles ($9.60) a glass.

"The biggest advantage for me, because I just started this two years ago, is the English language," said Madden. "For those guys, it's a lot more difficult to learn about craft and ­related things."

For an English-speaking brewer, there is a wealth of knowledge stored online from the American movement made available through YouTube videos, books, webinars, and even subscription services to online craft brewing courses.

Madden has done his best to pass lessons along to his Russian friends as a token of gratitude for allowing him to rent a tank at Stamm — which Ivanov said can't keep up with demand for its own beers.

"I've been able to help them out in return by even ­bringing back certain yeast strains from the U.S. that he might not have access to, like liquid yeasts," said Madden.

With no domestic industry growing quality hops and yeast strains, Russian craft brewers like Stamm rely heavily on imports from places like the U.S., Germany and Belgium, and a craft brewer in St. Petersburg has set up an import business for these essentials.

To Americans unfamiliar with the origins of craft beer in the United States, it might come as a surprise to know that a familiar national brand such as Sierra Nevada was once a scrappy upstart that shook an industry monopolized by large producers.

That kind of market penetration is still a long way off for Russia's nascent but rapidly growing craft beer movement. Sitting in a bar built out in front of Ivanov's Stamm Brewery, the Russian and American craft brewers had differing opinions of where all this is going.

Stamm Beer can't meet the demand for craft beer. Despite this, Ivanov believes there is a limit to how far the movement can go, citing the Russian consumer's relative lack of taste for good beer and focus on price.

But in his U.S. colleague's view, this is just the beginning: The market for craft beer is already growing faster than it did in the U.S. in 1981 and 1982.

"The demand here is crazy," said Madden. 

Where to Go for Craft Beer in Moscow

Beer Market

Located down in alley off of Pushkin Square, Beer Market is an older craft bar. In addition to a selection of local craft beer on tap, Beer Market sells an expansive variety of bottled beers. Prices are cheap, but the place is often crowded.

+7 (905) 741 4141 facebook.com/beermarketbar 4 Strastnoi Bulvar, Bldg. 2, Metro Chekhovskaya, Pushkinskaya

This craft venue recently opened a second location at Chistiye Prudy in addition to its original location near the Novo­kuz­nets­ka­ya and Tretyakovskaya metro stations. The new location features a minimalist interior decor, with quick service across a long bar. Spacious, but not a lot of sitting room. Mostly a stand-up bar.

+7 (968) 793 5647 glavpivmag.com 2 Piatnitsky Pereulok, Metro Novokuznetskaya 2/21 Ulitsa Makarenko, Bldg. 1, Metro Chistiye Prudy

Butylka, Kruzhka i Kotyol (Bottle, Mug and Kettle)


Located across from 35MM cinema, Bottle, Mug and Kettle opened its doors earlier this year, and is a great location to try out up-and-coming craft beers  — though they still sell staples of the scene such as those brewed by Jaws. Like GlavPivMag, the interior is relatively minimalist, but there is ample seating and space.

facebook.com/BKiKo.Bar 48 Ulitsa Pokrovka, Metro Kurskaya, Chkalovskaya

There is perhaps no better embodiment of the craft beer movement than Krapiva, which has replaced Ogonyok, a charmless, now-closed cocktail bar on Potapovskiy Pereulok. Perhaps Moscow entrepreneurs have realized that overpriced drinks in loud and dark places do not draw the crowds that they used to.

+7 (495) 226 4825 5/2 Potapovsky Pereulok, Metro Chistiye Prudy

Contact the author at  [email protected]

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