How to Sell an Alcoholic Beverage to Restaurants
Locate a place to open your brewery., Create a business plan., Find financing., Purchase necessary equipment., Obtain required licenses and permits., Get necessary insurance and bonds., Distribute your beverage.
Step-by-Step Guide
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Step 1: Locate a place to open your brewery.
You can make brew in your own home for personal consumption.
But if you want to sell your beverage, then you need to follow state and local laws.
Accordingly, you need to find a place to open your brewery.
You must follow your local zoning regulations, which means that you will probably have to look for buildings in the right industrial zone.If you need help, you should contact someone at your local zoning board or you can meet with an attorney who specializes in land use.
Remember that your production space will need to be adequate to meet state laws regarding commercial wiring and drainage. -
Step 2: Create a business plan.
A business plan is essential before starting your brewery.
It outlines how you will open your business and gives you benchmarks to meet over the next several years.
A business plan should have the following:your objectives company summary description of the products you are offering analysis of the market your strategy management summary financial plan , As part of your business plan, you need to identify sources of start-up capital.
You will use these funds to buy equipment, lease space, and purchase supplies.
You may also need a “cushion,” since you probably can’t expect the brewery to be successful immediately.
Opening a brewery is very expensive.
In fact, brewers often find that they need double the amount of money they had anticipated.You can find financing from the following places: a Small Business Administration loanoutside investors family and friends your savings , The equipment you use is important, because your brew must meet health and safety requirements.
For example, you will need one or more stainless sinks like you find in restaurants.
You will also want to use FDA-approved materials.
A seven-barrel system can cost you around $130,000-175,000.
Unfortunately, used systems are almost as expensive.See Make a Home Brewery a Commercial Nanobrewery for more information on what equipment to buy. , You will need permission from your state before opening.
Generally, this means getting a craft brewery license or other license.
You should contact your state’s business licensing office.
The Small Business Administration has a link for each state which will take you to the relevant state office.You will also have to register with the federal government and obtain federal permits with the U.S.
Treasury’s Alcohol and Tobacco Tax and Trade Bureau., You will probably have to get bonded and have insurance before you can open.
The amount of coverage will depend on your locality, state, and type of brewery.
Also, your landlord might have certain insurance requirements that you must meet in order to rent.You should work with an insurance broker to find acceptable coverage. , Not every state allows you to distribute your alcoholic beverage directly to restaurants.
Instead, each state has its own rules.
If your state does not allow direct distribution, then you will need to find a distributor.
A little over 30 states allow you to self-distribute, though some of the states put limits on the amount you can distribute.If you need a distributor, then talk to other microbreweries and ask who they use.
You also should think about hiring an attorney.
The distributor contracts are often very complicated, and you will need a lawyer to help you understand them. -
Step 3: Find financing.
-
Step 4: Purchase necessary equipment.
-
Step 5: Obtain required licenses and permits.
-
Step 6: Get necessary insurance and bonds.
-
Step 7: Distribute your beverage.
Detailed Guide
You can make brew in your own home for personal consumption.
But if you want to sell your beverage, then you need to follow state and local laws.
Accordingly, you need to find a place to open your brewery.
You must follow your local zoning regulations, which means that you will probably have to look for buildings in the right industrial zone.If you need help, you should contact someone at your local zoning board or you can meet with an attorney who specializes in land use.
Remember that your production space will need to be adequate to meet state laws regarding commercial wiring and drainage.
A business plan is essential before starting your brewery.
It outlines how you will open your business and gives you benchmarks to meet over the next several years.
A business plan should have the following:your objectives company summary description of the products you are offering analysis of the market your strategy management summary financial plan , As part of your business plan, you need to identify sources of start-up capital.
You will use these funds to buy equipment, lease space, and purchase supplies.
You may also need a “cushion,” since you probably can’t expect the brewery to be successful immediately.
Opening a brewery is very expensive.
In fact, brewers often find that they need double the amount of money they had anticipated.You can find financing from the following places: a Small Business Administration loanoutside investors family and friends your savings , The equipment you use is important, because your brew must meet health and safety requirements.
For example, you will need one or more stainless sinks like you find in restaurants.
You will also want to use FDA-approved materials.
A seven-barrel system can cost you around $130,000-175,000.
Unfortunately, used systems are almost as expensive.See Make a Home Brewery a Commercial Nanobrewery for more information on what equipment to buy. , You will need permission from your state before opening.
Generally, this means getting a craft brewery license or other license.
You should contact your state’s business licensing office.
The Small Business Administration has a link for each state which will take you to the relevant state office.You will also have to register with the federal government and obtain federal permits with the U.S.
Treasury’s Alcohol and Tobacco Tax and Trade Bureau., You will probably have to get bonded and have insurance before you can open.
The amount of coverage will depend on your locality, state, and type of brewery.
Also, your landlord might have certain insurance requirements that you must meet in order to rent.You should work with an insurance broker to find acceptable coverage. , Not every state allows you to distribute your alcoholic beverage directly to restaurants.
Instead, each state has its own rules.
If your state does not allow direct distribution, then you will need to find a distributor.
A little over 30 states allow you to self-distribute, though some of the states put limits on the amount you can distribute.If you need a distributor, then talk to other microbreweries and ask who they use.
You also should think about hiring an attorney.
The distributor contracts are often very complicated, and you will need a lawyer to help you understand them.
About the Author
Hannah Johnson
Experienced content creator specializing in creative arts guides and tutorials.
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