Contract/Host breweries

Discussion in 'New England' started by DrunkPagan, Sep 9, 2013.

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  1. DrunkPagan

    DrunkPagan Initiate (0) Mar 31, 2006 Rhode Island

    Right now it's all still down to numbers. Once I have the last of the info I need, I can start crunching them to see if this crackpot idea has a chance of flying.
    And yeah, I might get a bad batch. There might be contaminants, or the recipe might not come out right in large scale. A million things could go wrong, but if I based all my decisions on what could go wrong, I'd never leave the house. It's a risk, and I'm willing to take it. But I'm also trying to hedge my bets and make sure that if something does go wrong, I have backups and fail-safes.
    But again, for right now... it's just the numbers game. I appreciate the devil's advocate approach, but I get enough of that from my mother.
     
    #21 DrunkPagan, Sep 24, 2013
    Jwale73 and jbertsch like this.
  2. emannths

    emannths Initiate (0) Sep 21, 2007 Massachusetts

    Just to play devil's advocate to the devil's advocates, Pretty Things reportedly got started on about $8,000.
     
    #22 emannths, Sep 24, 2013
  3. messrock

    messrock Initiate (0) Dec 9, 2010 Massachusetts

    Dann also had about 15 years brewing experience going in…
     
    #23 messrock, Sep 24, 2013
  4. jazzmac

    jazzmac Initiate (0) Nov 8, 2002 Connecticut

    Just for some idea of numbers...

    Kegs cost about $100 a piece (forget used you won't find any unless they're Hoff-Stevens or 13.2s). You need at minimum 4 per draft account (it's industry standard).

    While you pay the contract brewer when you brew the beer, your distributor won't pay you for 30 days. Keep that I'm mind moving forward. It's not a cash business.

    Do the cash flow calculations on keg vs bottle. While bottling is more $ and the profit margins don't look as good, do the calculations on a per BBL basis.
     
    #24 jazzmac, Sep 24, 2013
  5. fostah

    fostah Crusader (468) May 1, 2009 Massachusetts

    Recently, from an industry source: "You need $40,000 cash liquid", about Mercury... Me thinks your cash requirement ideas are a tad low...
     
    #25 fostah, Sep 25, 2013
  6. Patrick

    Patrick Initiate (0) Aug 13, 2007 Massachusetts

    I'm sure you already know this, but Pretty Things isn't considered contract brewed.
     
    #26 Patrick, Sep 25, 2013
  7. jeffthecheff

    jeffthecheff Initiate (0) Jul 23, 2008 Connecticut

    Thomas Hooker in Bloomfield, CT contract brews.
     
    #27 jeffthecheff, Sep 28, 2013
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