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Five Considerations for Choosing A Craft Brewery Location

Views: 2     Author: Site Editor     Publish Time: 2025-05-29      Origin: Site

Know Local Regulations


When you are considering where to open your craft brewery, you first need to know and understand the laws of your state. Each state has its own set of laws and regulations that determine permitted and prohibited areas for craft breweries. State laws can help you quickly understand where in your town you can open a brewery, and most importantly, where you are prohibited from opening a brewery. While laws vary from state to state, most prohibited areas are near schools and churches. You can obtain this information through local government websites, as it is usually publicly available.


Another important part of local regulations are the regulations that control signage, fencing, and building heights. While these can be relatively long and strict, it is important that you fully understand and research them. You also need to thoroughly understand fire codes and building codes, as these may affect your brewery design. Also, don't forget to apply for a zoning permit, which can help you legally brew on the land you choose.


When understanding and researching state laws and local regulations, be sure to meet with local government officials in your area. There are unfounded misconceptions about the alcoholic beverage industry. Meeting with local government officials allows them to understand who you are and ensure that you comply with local laws and regulations. This will lay the foundation for future government officials to take a more positive attitude toward brewery owners.


Estimate Your Utility Bills Brewery rent is often the main consideration for ongoing facility costs, but utilities will account for a large portion of your brewery's monthly expenses, so you'll need to estimate your utility bills carefully. Utility bills are broken down into two main parts: energy costs and water costs.


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Estimate Your Utility 


Bills Brewery rent is often the main consideration for ongoing facility costs, but utilities will account for a large portion of your brewery's monthly expenses, so you'll need to estimate your utility bills carefully. Utility bills are broken down into two main parts: energy costs and water costs.


Energy Costs


Operating a craft brewery means you’ll need to use a lot of energy to keep your equipment cool during the brewing process, from mashing to fermentation to bottling. If you’re planning to acquire a brewery owned by someone else, get a report from the utility company on last year’s electricity usage and estimate this year’s energy consumption. If you’re opening a new craft brewery, get estimates and rates so you can work with the brewer to estimate energy costs.


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Water Costs


Water is one of the most important components of craft beer (it makes up 80-90% of the ingredients in craft beer), so you use a lot of it. In addition to understanding water use reports and rates, you also need to understand the quality of your water supply and the different types of water treatment that may be required. Most cities add chlorine or chloramines to domestic water, so you will need to distill your water.


If your craft brewery uses well water for brewing, it will usually require more stringent treatment. When you begin researching the water you will be using, check your local government website. Most cities will publish information about water quality and the different treatments used.

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Understand Your Space Needs

When choosing the right brewery location, the biggest factor to consider is floor space. Generally speaking, the larger the floor space, the higher the price. Therefore, we must carefully examine the space required.


A craft brewery produces less than 100,000 gallons of craft beer per year, but even small-batch brewing equipment requires a lot of space. The best way to do this is to do a break-even analysis. How much beer do you need to produce/sell to break even?


Once you have completed your break-even analysis, it is time to address capacity and production needs. At this point, you can ask a brewing engineer for help. You can also consult a brewing equipment manufacturer, who will also be able to help you. The engineer can help you determine whether you need a 500-liter or 1,000-liter brewing equipment, as well as the number and capacity of fermentation tanks you need.


There is another important thing you need to keep in mind when purchasing brewing equipment: the height of the building. Fermentation tanks are usually between 5-9 feet tall, and brewing equipment varies greatly due to different design heights. If your brewery has limited building height, you will need wider equipment to compensate, which means more space.


Do you also need a tasting room? If you don't want to rely solely on distribution as a source of income, you will also need enough space as a tasting room to display and sell your craft beer.


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