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How to Start a Microbrewery or Brewpub Business. Nano Brewery Business Plan

Thursday, May 3, 2018

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A microbrewery or craft brewery is a brewery that produces small amounts of beer, typically much smaller than large-scale corporate breweries, and is independently owned. Such breweries are generally characterized by their emphasis on quality, flavor and brewing technique. As the movement grew and some breweries expanded their production and distribution, the more encompassing concept of craft brewing emerged. A brewpub is a pub that brews its own beer for sale on the premises. Although the term “microbrewery” was originally used in relation to the size of breweries, it gradually came to reflect an alternative attitude and approach to brewing flexibility, adaptability, experimentation and customer service.

Although the trend of microbrewing had been quite popular in other countries, India is quite a new entry in craft beer. However, India is ranked 3rd in the world with 55% growth in alcohol consumption in last two decade. 30% of Indian population consume alcohol and it is growing with the growing middles class

Microbreweries are primarily known for their “specialty beers.” They are typically small-batch “boutique” beers, which might be made only for a certain season or theme, or designed to showcase special ingredients. Microbrewers also love to experiment with different styles of beer, different ingredient proportions or different fermentation processes. Every day is a delicious science experiment at a microbrewery.

Because microbreweries are so small, their options for getting their names out there are limited. Most microbreweries have a tasting room. If they are ambitious, they are attached to a ‘brew pub,’ a pub or restaurant that’s attached to the brewery so that patrons can get to know and appreciate their craft. The other option is beer festivals. Beer festivals allow microbreweries to seek recognition and set themselves apart.

A micro-brewery typically uses between a 30 to 60 barrel brew system. The brewery typically only has one brew system, unlike Craft breweries which can have several brewing systems. At a micro-brewery the system will produce about one batch of beer a day to one batch of beer every other day. Several micro-breweries still produce beers on a 15barrel system at the rate of one batch every other day for a total of 3,000 barrels a year. This is 3,000 barrel output is close to the output of a nano-brewery. A nano-brewery usually uses a 7.5barrel systems (1/3 to 1/10th the size of a microbrewery) and produces beer at the rate of a few batches a week. This puts the total output of a nano-brewery at 1,000 barrels per year.

There are no strict guidelines set on the techniques or ingredients a micro-brewery uses to produce their beer. A micro-brewery is classified as such according to the amount of beer it produces annually.

Although the term microbrewery originated in the United Kingdom in the 1970s, many of the beers they made became so successful that they outgrew their statistical category. Because these small breweries pay particular attention to ingredients and monitor the entire brewing process, the term craft beer is descriptive. Using the traditional brewing process, the beer starts with the sugars from a form of malted grain, either barley or wheat, added to hop flowers and water. The mixture is aged and generally not pasteurized. The difference in the process occurs after the initial fermentation.

Taste Aroma: Microbrewers spend the majority of their time focused on the quality of their product rather than on marketing campaigns and cutting costs. Each craft beer is brewed using hand-selected ingredients, specifically picked with certain flavour characteristics in mind and brewed with the end goal of creating a flavorful, high-quality beer. As a result, these beers are never ‘watered down’ like many of the products which come from larger, more corporate companies.

Preferential Selection: With 1600 microbreweries in the United States alone, the choice availability of craft beers is astronomical. Even better is that no craft beer ever tastes the same: every microbrewery produces its own unique product with its own specific and delicious flavor.

Health Benefits: The high quality of craft beers means they are often packed full of nutrients such as B vitamins, silicon and fiber, possessing incredible health benefits.

Today, more than 350 million Indians are below 35 years of age, and this section is growing at 3.4% every year. Besides, their careers are taking them travelling to areas that are traditionally beer geographies adding to their awareness and aspirations. All this is a potent mix for the surging demand for craft beer and breweries in India. This is evident from the growth of beer consumption as a whole. Today there are about 95 Microbrewery/Restaurants, which will grow to 175-180 by end 2017. Geographically, the division is 51 in the North Region, 26 in the south, 18 in the west and 2 in the east region.

The cult around microbreweries and craft beer is growing. The craft beer brewing fraternity from Mumbai and Pune swore to fight for independence from boring ‘industrial beer’ and introduce people to the flavours of real beer made by real people. Microbrewery revolution is sweeping across India. A microbrewery consists of small brewery that makes wide range of handcrafted beers in small batches.

Food is the second anchor of the microbrewery experience. It is important to note that a typical microbrewery abroad makes close to 40 per cent of its revenue from food sales.

The success of these microbreweries is due to the open-mindedness of young Indian consumers, as well as their desire to eat out. The beer market in India is growing as well, and imported beer is starting to make a splash in the country. These factors are contributing to the growth of microbreweries and creating opportunities for this niche segment. Microbreweries are growing in popularity in India, taking on the traditional giants that have dominated the industry for decades.

Craft beers and microbreweries are niche concepts in India which have been growing for past few years and are beginning to take shape now. They are mushrooming in many parts of the country. This is an emerging trend that is certainly attracting middle class Indians, particularly in urban areas. The craft beer market in India is pegged at Rs. 280 crore and may grow to Rs. 4,400 crore by 2020.

Few Indian major players are as under:

·         Appollo Distilleries & Breweries Pvt. Ltd.

·         Arthos Breweries Ltd.

·         Aurangabad Breweries Ltd.

·         Castle Breweries Ltd.

·         Devans Modern Breweries Ltd.

·         Doburg Lager Breweries Ltd.

·         Doon Valley Brewers Ltd. 

 

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