Nano Brewery a commercial madness?

[Armin Hanik]

Hi there
I'm looking for honest input (including: "you are mad") for a project/idea that has been playing in my mind for a month now.
In my home town Kerikeri a new market hall opened last week. So far it's a big Saturday market with local produce and also with a few steady shops. As residents there is a pie maker, a genuine Maori carver, and I think  a baker so far.
The project is planned to include some kind of outside daytime pub.

It might be possible to put a brewery in there. It is on the tourist route, most likely a stopping point for tourist buses.

At the moment I'm projecting a budget of about $50,000, providing the owner brings a room up to standard and builds a coolroom (they might have one).
I got zero experience as a commercial brewer, but I've been self employed since 30 years, so I got a rough idea of the business side.
This would not be the first time I tackle something without knowing anything about what I'm doing.... but to be honest: the closer I look, the more scared I get of my own courage.
A commercial brewhouse is a long shot from my humble home brewery.

At the moment I'm looking at importing a 200L system from China, and brew mainly Ales, which I think I could sell directly to the public.

Is there anyone in the greater beer community who can tell me whether a 200L system is even commercially viable?
Anyone out there that I could pester with a few (and a few more) questions about the commercial side?

I'll be thankful for any input

Cheers
Armin

[Peter Smith]

Coromandel Brewing has a 350L brew system, he does 4 beers and so has 4 ferments, actually 2 vertically stacked... then he has cold tanks etc so he can continually serve 4 beers, he is located at Hahei in The Pour House,   I think food plays a big part of his business , he mainly bottles  if off premise (by hand)  , not many kegs, a few .  He brews Pils like most (not all try Governers ) other crafts brewers (cold clean ale yeast)

If I did this I would want not be relying on tourists on buses, who may be whiskey or sake drinkers, rather get a good local population support via good repeat biz = damn well priced good beer.    I think 300-400L is more viable then 200L but at nano , this a lifestyle if you aren't the brewer it won't work, not enough $$$ in it to pay a brewer and return you some $$$

Beer is a volume business its not much harder to make 1000L then 200L on the right kit...   what are your overheads and what is your breakeven, how long would you work for nothing, how many L would you need to make to give you your current income etc etc etc    its like any other business, which is why some fail,  I think many like the lifestyle... bloody hard work tho if you not making $$$

if you cant brew well now, give the idea up for a few years as you learn

At 200L I would ask Scott Bension to build you a pot based gas BK /electric HLT hybrid....     at 350-400L you are into diary conversions and 3 phase power.   If you must you could brew 2 brews on 200L.

Most of all though its probably easier to brew beer then to sell it

YMMV

[Armin Hanik]

Thanks, Peter, much appreciated.

[NZHomebrewer]

Hi Armin, 

your name sounds German. I am from Germany and I am the baker at the market you mentioned. We had our second day yesterday and it is absolute madness. I doubled my bakery capacity and am still working at the limit. There is a huge German population in Kerikeri. This took me by surprise. But it is good for my business because I have a big range of German breads and pastries in my range.

Maybe you want to come along for a chat at market day. I'd love to meet you. If there is anything I can help you with, let me know. I think there is a market for local good quality products but you need to really think about who your customers are, what your target group is etc. And I think Peter Smith is right with overseas tourists. But a big group we have up here as I am sure you know if you live in Kerikeri are domestic tourists. I am sure that they would be keen in trying something different while on holidays in the Far North.

Let me know if I can be of any help. 

Cheers

Peter

[Armin Hanik]

Hi, I'll meet you next sat. Thanks!

[Peter Smith]

How hard is it to get a liquior license in your area?   on the Northshore of AKL someone has been trying for months to get a craft beer pub license, its no issue getting a commercial food license and then its just paperwork to get excise covered so you are a brewery .....     but the liquor license is .... shit its hard work you need deep pockets

[Armin Hanik]

That's beyond 7 hills yet. Not a worry until I get closer to this specific castle and the guarding dragon.

[Mark Hardy]

Hi Armin we have been there with regards to your above. We have taken the plunge and gone into this venture. We have just taken delivery of a small project brewery and have had a purpose built twin fermentation / condition room chiller built and supplied. It's all $$$$ and we are finding the hidden costs on going!

We live just down the road from you in Whangarei and your right there's massive potential for supplying good quality Craft ales and lagers to the Northland Public, we plan to wholesale within Northland initially, then possibly retail direct at a later stage!

Keep in touch

Cheers Mark.

[Armin Hanik]

Oh, wow. I've sent a friends request, if you accept, we can exchange details, Maybe skype if you are up to it?

Thanks a lot!

[William McNab]

Einstein said that if at first if an idea isn,t totally rediculess it has no hope at all,brewers are also optimists

Double your budget you will need it

Read everything you can on the industry

Sometimes the crappiest beer is the most successful  ,caught a cricket ball lately?

And a measure of luck

My  own view is 200l could work where food is available don't give up your day job yet tho

Hope this helps

[Armin Hanik]

Lol Thanks.
No problem with the crappy beer..............

[GFbeerGuy]

If you have iTunes go to the store and type in 'basic brewing radio' A guy named James Spencer does free podcast on everything homebrewing. if you look through the lists of podcasts there are quite a few interviews with people about starting breweries. if you listen to them they give a good idea of pitfalls/ costs/ best ways to go about things.

Might be worth a listen

 

[Armin Hanik]

Thanks, Alexander.