What Is Microbrewing?
The term “micro” implies small-scale or tiny. Microbreweries are independent breweries that produce beer. They typically produce less than 15,000 barrels of beer per year. A microbrewery, also known as a craft brewery, refers to a small-scale brewery. Beer is brewed using micro-systems with unit outputs of 100L, 300L, 500L, and so on. These breweries have small production capacities but offer high-quality beer. The production process can be adjusted to create beers with different characteristics and flavors. Microbreweries usually sell their products within a specific area or adjacent regions and do not expand nationwide.
What Is Nanobrewing?
As the name suggests, nanobrewing is an even smaller scale of microbrewing. Nanobreweries often serve as a stepping stone to becoming a microbrewery. A nanobrewery cannot produce a certain volume of beer until it scales up to a microbrewery level.
A nanobrewery is the smallest type of brewery. It is defined as brewing three barrels or less of beer per batch. Some regions define a nanobrewery as producing fewer than 2,000 barrels per year, while others set the limit at 5,000 barrels. The definition of a nanobrewery varies, but it is essentially the smallest type of brewery. Due to their small size, nanobreweries have more room for creativity and innovation compared to larger breweries. This uniqueness allows them to create new and distinctive flavors, which is an advantage for nanobreweries.
Can Nanobreweries Generate Profit?
To determine this, you need to calculate how much revenue you need to generate and consider your day-to-day operating costs. The good news is that most of the beer you sell will bring in profits. While you can also distribute some of your beer, the primary goal for a nanobrewery is usually to sell as much as possible on-site.
How to Start a Microbrewery
If you’re considering starting your own microbrewery, there are several steps you need to take. Like any business, it all begins with money. Create a business plan that includes your budget and goals. Secure financing for your business through loans, investments, or personal savings, just like any other small business. Additionally, you’ll need to account for the general start-up costs associated with starting and operating a business, as well as the specific taxes and regulations related to the beer industry.
Once you have a funding plan in place, you’ll need to obtain a federal brewing license from the Alcohol and Tobacco Tax and Trade Administration. This process can take up to a year.
Next, you’ll need to find a suitable location and invest in equipment. Some essential items include kettles, kegs, boilers, fermentation tanks, storage tanks, refrigerators, cleaning equipment, filter tanks and pumps, and canning and bottling equipment.