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What are the startup costs for a brewery?

On Behalf of | Apr 30, 2023 | alcohol beverage law

The craft beer industry can be alluring to entrepreneurial and creative people across Florida. As enticing as this type of business can be, it also comes with its share of costs to consider. Individuals and partners who are looking to raise capital for a craft brewery business should be sure to consider the following costs in their budget projections:  

  • Space: Rent can vary a great deal depending on where the brewery is located. In some cases, buying a property outright may be more advantageous.  Irrespective of geography and whether one rents or buys, securing a space and outfitting it as a brewery can take up a big chunk of a business’ budget.
     
  • Ingredients: Of course, to make beer, one needs to have barley, hops, yeast, and water at the ready, along with any other special ingredients that a brewer would like to add to their more unique flavors.
     
  • Salaries: Human resources are always a major line item for a business. Breweries need to budget for bartenders, packaging teams, brewers, and business support. Hourly wages may be the norm for some, while others could require annual salaries. 

The above list accounts for the three most significant expenses for a startup brewery. However, there are plenty of other smaller but important costs to stay on top of, including equipment, marketing, POS systems and other tech, insurance, and permits. The availability of permits and legal processes involved can be quite extensive and may vary by location, so it is a good idea to speak with a lawyer when looking to get into the brewery business. 

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The foregoing was prepared as general information. It is not meant to provide legal advice granting any specific matter and should not be acted upon without professional counsel. If you have questions or require additional information regarding these or other related matters, please contact Malkin Law, P.A. This material may be considered attorney advertising under certain rules of professional conduct.

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