Brew Your Own Beer At Home To Make Money
Today, more people prefer to drink home-made beer. If you like the taste, you can also produce it easily. Even you can make money if you know how to sell your home brewed beer.
If you prefer to brew a batch of beer only for consuming with friends, you just need a few things: brewing bucket, a bubbler, and a siphon hose. You can buy the kit from the internet or from any home brewing store. Once you brew a batch of beer, it should ferment for a couple of weeks. With a specially designed bucket, it is quite easy. However, if you want to do it as a business, you will need a bit more. Note that most of the craft breweries have started at a kitchen. Once you use your friends as a test subject and the taste is approved, you can start your job.
Can I Brew Commercial Beer At Home?
In many countries and states, production of brewed beer is allowed only for own consumption. You may not allow serving home-brewed beer to the public. In some of them, it is also illegal. There are just a few examples allowing home brewers to serve at some festivals.
In the US, homebrewing is legal in all fifty states. Thanks to the latest federal regulations, single adults are allowed to brew up to 100 gallons at home per year. For a household including more than one adult, the maximum limit is 200 gallons per year. But what about brewing commercial beer at home, opening a brewery in your garage?
The regulations about this issue are made by Alcohol and Tobacco Tax and Trade Bureau (TTB) TTB has an online permit application process. The process is free of charge. You can also submit the application via post or mail.
Regulations About Brewing Beer
To open a brewery, you should know the following points before the application:
- Establishment and operation of any brewery are forbidden:
- in any dwelling house
- on board any vessel or boat
- in any building
- on any premises where the revenue will be jeopardized
- any place the regulations of TTB will be hindered.
- Before application, you should already complete the construction and get or order the necessary equipment.
- You shouldn’t begin operations until the approval of your application by TTB.
Documentation To Gather Before The Application
The following documentation is demanded by TTB during application. According to
- For a Corporation: A copy of your Articles of Incorporation and/or Certificate of Incorporation
- For a Limited Liability Company: A copy of your Articles of Organization and/or Certificate of Organization
- For a Partnership: A copy of your partnership agreement
- If you are leasing the place you will operate the brewing, you should submit a copy of your leasing agreement which includes your sign and the term of the agreement. It should be clearly stated that the owner of the property knows how the place will be used and s/he allows for this purpose.
- If you own the property you will operate the brewing, you should submit a copy of the document showing the property is yours.
- You must submit signing authority authorization. It is an excerpt from the Articles of Incorporation (Corporations) or the Articles of Organization (LLCs) or the Partnership Agreement (Partnerships) depending on the type of the organization.
- Diagram of the Brewery should be presented.
- It must indicate the dimensions in feet and inches.
- It should identify the location of the equipment.
- The serial numbers and capacity of all tanks should be included.
- It must show all the doors located in the place.
- If it is applicable, it should show the location of brewpub or tasting room.
- The source of the funds the owner is investing in the business should be clearly indicated. The sources can be financial gifts, loans, bank account records etc.
You may need extra documents. For instance, if you are bottling your product under contract for a trade name; you must submit a letter from the owner of the brand. This letter indicates that you are allowed to use the trademark.
What Should I Do?
As noted above, if you produce only for own consumption under the legal limit, you don’t need to get permission or any license. However, if you are planning to produce for others and make money you should get permission. In fact, the starting procedure may seem long. However, once you organize everything, it is an easy and enjoyable way to earn money.
To make money from brewing:
- First of all, you should be sure of the taste and the quality of your recipe. Get the help of your family and friends for a while and continue your tries until reaching the best taste.
- Find the right place to operate providing the legal requirements. Then, be sure the property satisfies the necessary conditions. For instance, the doors and windows can be locked. Invest to the property if necessary.
- Prepare all the documents necessary to apply TTB.
- Apply to TTB online, by post or by e-mail.
- If you have enough budget and risk-lover person, you can directly start with your own brand.
- You may sell your receipt to a trademark and label your beer on the account for it.
- You may also prefer to use the receipt of the trademark and become just one of the brews of for the company.
- If you have an original receipt, certainly you should license it.
Cost and Profit
You can make money in different ways. For instance, you can license your recipe with paying some fee and then sell the “right to use” to a company. There are companies searching different home brewed beers and willing to pay a huge amount of money if it tastes well and original.
Depending on the size of your business, the necessary equipment may change. For instance. you can create 5 bbl, 7bbl or 10 bbl systems depending on the place you have and target market. Assume, you are starting with a 10 bbl system. The highest costs you need to consider are Brewhouse Platform where all the ingredients mixed and turned into beer and Cellar Equipment for storage. For 10 bbl system, these two approximately costs $125.000. For integrands of the beer like grains and water, you should spend $35.000. And other accessories and control panel costs $20.000. As a result, for a 10 bbl system, it approximately costs $180.000. Probably, the reduction in the capacity of production for instance by 20% will result in a reduction in cost by 20%. The amortization of this initial costs is approximately 20 times of production. After that, you will compensate your spending and profit from production.