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How much does it cost to run a brewery?

Jul 11 2023 VIEWS:123

How much does it cost to run a brewery? This is a broad question, and the answer depends on many factors, such as location, size, equipment, raw materials, number of workers, taxes, and licensing fees. Next we will discuss the budget required to set up a medium sized brewery.

Location and site costs

To start a brewery, you first need to choose a location, and different regions have different price levels, which will directly affect your costs. In addition, you will need to consider the cost of the site, including rent or the cost of buying the land, as well as the construction costs required to build the brewery. Of course, this cost varies depending on the location and the size of the building area.

Raw material cost

The main raw materials of beer are water, barley, hops, yeast and so on. Among them, barley is the main raw material of beer, and the cost is relatively high. A decision to open a brewery requires a detailed investigation of the availability of locally available raw materials and negotiations with suppliers to obtain the best price.

Equipment cost

The brewery requires equipment for malt grinding, wort boiling, cooling, fermentation, filtration and filling. Therefore, you need to buy the right equipment for you. The cost of the equipment depends on brewery's production capacity, as well as the quality and brand of the equipment. Generally, the equipment cost of medium-sized brewery is around millions of yuan.

Labor cost

brewery requires a large number of workers, including engineers, equipment operators, production workers, sales staff, etc. Their pay levels also directly affect manufacturers' costs.

Licensing and tax fees

The establishment of a brewery requires a permit and license from the local government. These costs vary by region. In addition, for brewery, there are various taxes to pay, such as business tax, income tax, value-added tax, etc.

Other expenses

In addition, there are other costs associated with starting a brewery, such as insurance, marketing costs, repairs and maintenance costs.

In short, the budget required to start a brewery depends on many factors. Prior to the establishment of a brewery, a detailed market survey and cost analysis are required to determine the budget and refine the cost budget, so as to develop a viable business plan. I hope this article has been helpful.

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