Tag Archives: distribution

The Contract Brewhouse: Is this the future of craft beer start-ups?

IMG_1847.JPGWe all know that there is a huge boom in the craft beer industry. The market tastes have shifted from the mass-produced, pale larger to a wide range of flavourful beers made by a host of small brewers. Many beer enthusiast, home brewers, and business people are getting in on the growing market share that is craft beer. But breweries are expensive. The average beer lover can’t afford a brewery, nor have the financial backing to raise the capital that would be needed to set one up.

But what if you see that opportunity? What if you have a sound marketing plan and a great recipe? What if you’re afraid of getting yourself into that much debt? Enter the contract brewhouse. Businesses such as Brew Hub will make your beer, for a cost, but they float the overhead. Sure its not the same as owning your own brewery, but you can be a professional brewer with distribution to the beer drinking public.

It almost seems too easy. It wouldn’t do the industry any good if the market got flooded by bad beers from people who have no business to be brewing. On the other hand, this would be the opportunity for some really good brewers to get started. It could also be a way for many small established breweries to move beyond their regional boarders. I might be afraid of losing control of my product. I can control what happens in my own brewhouse, but not necessarily a third-party. You would have to rely on someone else’s idea of quality control and consistency.

Like it or not, this seems like a business model that will be here to stay. The lure of getting your beer produced without taking all the risks will be to great of a draw for many aspiring professional brewers. And why wouldn’t it be?

-Cheers

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