Starting a Brewery: Equipment List and Pricing

Drink in our ultimate starting a brewery checklist:

• From Hobby to Business – How Much Does It Cost to Start a Brewery?
• How Much Does It Cost to Start a Microbrewery?
• Starting a Brewery Equipment Checklist
• Establishing Craft Beer Pricing 

For serious fans of craft beer, starting a brewery can be the ultimate dream. What better business to start with friends—making something you love for you and other beer enthusiasts?

In fact, a lot of people are passionate about brewing beer. More than 180 million barrels of beer were produced in the US in 2020,¹ with retail sales for craft beer alone topping $22.2 billion dollars.² At the same time, the number of enthusiasts who are turning their brewing hobbies into breweries continues to grow. The Brewers Association counted 1,854 microbreweries in the US in 2020,³ a number which continues to rise year-on-year.

So, capitalize on this booming market sector and find out exactly how much it costs to start a brewery.

From Hobby to Business – How Much Does It Cost to Start a Brewery?

Making the leap from a home brewing operation to starting a full-fledged craft brewery business can be a challenge. Any small business idea takes plenty of planning, money, and perseverance to become successful. But starting a brewery requires quite a lot of specialized equipment, along with the know-how and space to operate it. There may also be hidden startup costs related to legal and permitting matters to consider.

However, let’s start with the basics – the overall cost to start a brewery. Generally, average-sized to large breweries cost around $500,000 to $1 million to get up-and-running.⁴ However, nowadays, brewery startup costs for smaller independent companies don’t have to equate to half as much. Don’t forget, there are also options available in the forms of grants and crowdfunding for those who may struggle to meet this figure.

How Much Does It Cost to Start a Microbrewery?

Microbreweries usually cost from $100-300k to get started, which includes premises, equipment, and any licenses you might need. Of course, depending on the premises and equipment you buy, brewery startup costs can vary. It’s all about setting a realistic budget and being smart with your money.

Microbreweries themselves naturally tend to need less equipment and smaller premises, so this can all be factored into a smaller budget.

Starting a Brewery Equipment Checklist

The cost of brewery equipment can vary depending on several things, such as: 

• The volume of beer you wish to brew
• Whether you choose to purchase new or used equipment
• The size and age of the equipment you buy 

And, in general, when starting a brewery, your equipment list will need to include:

• Kettles
• Boilers
• Fermentation tanks
• Filters
• Cooling systems
• Storage tanks
• Kegs
• Bottling or canning equipment
• Refrigeration
• Piping
• Cleaning tools

There are a few key pieces of large equipment you will need to invest in before you get started too.

1. Brewhouse

A brewhouse consists of all the components, or vessels, a craft brewery needs for the initial brewing stage. It typically includes:

• A mash mixer
• Lauter tun
• Hot liquor tank
• Holding kettle
• Boil kettle
• Whirlpool

A two-vessel brewhouse is often made up of combinations of the above, while a larger, more advanced five-vessel system separates these components.

How it works

1. The first step creates wort — the liquid extracted from the mashing of the malt and other grains.
2. The wort is moved to the kettle, where it’s boiled with hops, producing the flavor, color, and aroma of your beer.
3. At the conclusion of the boil, the wort settles in the whirlpool, where more solid particles are separated out.

Pricing

Brewery equipment maker Ss Brewtech has developed brewhouses at different capacities, with prices ranging from just under $50,000 for a 3.5 barrel (bbl) system to $98,500 for a 20 bbl system.

2. Fermentation and brite tanks

The next step in the beer-making process takes place in the fermentation tank. This is where the yeast feeds on the wort to produce alcohol and carbonation. This makes it one of the most important pieces of equipment for any person starting a brewery.

Tanks with a cone-shaped bottom allow the yeast to be easily captured and removed for later use. These gleaming stainless-steel vats are also one of the largest and most recognizable pieces of brewing equipment, often prominently displayed behind the bar at brewpubs.

Process

1. After the yeast fermentation process is complete, the beer is filtered and pumped into a secondary brite tank.
2. The brite tank allows the beer to further mature, clarify, and carbonate.
3. After the beer has settled and matured, it is bottled, canned, or kegged. It can also be served directly from the tank.

Pricing

Stout Tanks and Kettles specialize in equipment for small breweries, offering tanks in a range of sizes, both jacketed and non-jacketed. Jacketed containers allow for easy temperature control. Fermenters start at just over $2,000 for a 3 bbl size, while brite tanks run from just under $1,400 to over $5,500.

3. Kegs and keg washers

Last but not least on your starting a brewery checklist – kegs. Whether or not you choose to bottle your beer when starting your brewery, kegs are an essential component for storing, serving, and selling your finished product. A keg can be tapped for use in your own brewpub, or sold to bars or restaurants for counter sales to customers.

Like the rest of your brewery equipment, it’s vital to keep your kegs clean, to prevent spoilage or poor-tasting beer. Depending on the volume of your brewery, an automated keg washer will offer greater cleaning efficiency and lower labor costs, while helping speed up your brewing process.

Pricing

A number of companies supply standard 1/2 barrel kegs, such as Beverage Factory, which sells 15.5 gallon beer kegs for $125. For keg washing systems, Portland Kettle Works offers a collection of used equipment, which can help your start up save thousands. Automated keg washers tend to range from just under $10,000 to over $14,000.

Establishing Craft Beer Pricing

In addition to producing good beer and looking at how much equipment you need to start a brewery, you need to evaluate your brewery startup costs against the price of your line of brews. Not only does the price have to be fair in customers’ eyes, but it has to take into account the full cost of producing your beer, while also turning a profit. You should evaluate these prices against your budget and business goals and plan. A too-high price can hurt sales, too low and you may struggle to cover expenses.

When selling your beer in a restaurant, bar, or brewpub, the general markup on beer should be around 200-300%.⁵ There is also a slight difference, too, between the profit margins recommended for draft and bottled – draft being around 80% and bottled, 70%.

For draught beer poured from a keg, costs are typically about 40-45% less per ounce than the same beer in a bottle. But, because draught beer comes with added overhead costs to store and serve – such as regular cleaning, spillage, and possible spoilage – it’s important to add an additional per-glass charge to cover these extra costs. Are you a business owner with experience starting a brewery and understanding its associated costs? What other items would you add to this equipment list? Become a Groupon Merchant today and start growing your small business into a successful brand with our helpful tips and tricks.

1. https://www.statista.com/statistics/183464/beer-production-in-the-us-since-1870/
2. https://www.brewersassociation.org/statistics-and-data/national-beer-stats/
3. https://www.brewersassociation.org/statistics-and-data/national-beer-stats/
4. https://2ndkitchen.com/breweries/how-to-start-a-brewery/
5. https://home.binwise.com/blog/beer-pricing-for-bars