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<\/div>No guesswork, just clear steps. Our free step-by-step guide and checklist make starting your limited liability company (LLC) simple.<\/div>
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Craft beer is a rapidly growing field.<\/p>\n
You’re in the right place if you’re passionate about beer and ready to join the craft beer community. Starting a business is hard work. But you’re not alone.<\/p>\n
Over the past fifteen years, our team has helped hundreds of entrepreneurs start breweries and hundreds more rebrand their existing brewery businesses. This guide shares our experience, insights, tips, and best practices.<\/p>\n
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Let’s look at what you need to know to get started.<\/p>\n
<\/a> You can't get where you're going if you don't know where you're going.<\/p>\n So, what do you see when you envision your own craft beer business?<\/p>\n <\/div> There are many opportunities in the brewery business.<\/p>\n U.S. beer volume sales increased by 1%, and craft brewer volume sales grew by 8% in 2021. This raised small and independent brewers\u2019 share of the U.S. beer market to 13.1%.<\/p>\n Dollar sales of craft beer increased by 21% to $26.8 billion. Craft beer sales account for about 27% of the $100 billion U.S. beer market.<\/p>\n That growth doesn’t include microbreweries that produce fewer than 15,000 barrels of beer annually. And the number is still growing.<\/p>\n It’s no wonder craft beer is so popular.<\/p>\n Anyone can grab a 6-pack of Miller or Budweiser at the local grocery store.<\/p>\n But craft breweries offer unique personalities and unique flavor profiles that their consumers can relate to. And that counts for a lot.<\/p>\n People value authenticity in the brands they purchase; craft breweries deliver that authenticity in spades.<\/p>\n And this desire for genuine, unique brand experiences isn’t going anywhere. So, if you make quality beer and have a unique perspective to share with the world, there’s a place for you in the craft beer industry.<\/p>\n The craft beer community is an unusually welcoming one. Bucking the traditional competitive attitude engendered by our capitalist economy, craft brewers have chosen to work together to strengthen their industry for all comers. Brewers Association president Charlie Papazian explains<\/a>:<\/p>\n We\u2019re a new kind of capitalism with a different perspective on the end game. We’ve found a way to be in business and enjoy it. A lot of people are flabbergasted by the camaraderie, the sharing among competitors. We’re open to doing things in a positive light. More passionate than opportunistic.<\/p><\/blockquote>\n This supportive attitude serves them well. The community shares information, ideas, and encouragement, making craft beer one of the most welcoming industries for newbies.<\/p>\n Are you planning to sell your unique brews to distributors to be sold regionally?<\/p>\n Maybe you’re running a brewpub, pairing delicious menu items with your craft beers.<\/p>\n Or are you the master of a microbrewery and taproom?<\/p>\n Before you can start to plan your own craft beer business seriously, you need to understand the end goal that you’re aiming for and develop and refine your business idea<\/a>. Choosing your business model is the first step in that direction.<\/p>\n This is true for any business, not just for brewery businesses. In our guide on how to start a business<\/a>, we suggest that aspiring entrepreneurs choose a niche for the best chance at success.<\/p>\n Receive six actionable guides, including a how to start a business checklist, detailed comparisons of LLCs, corporations, sole proprietorships, and partnerships to determine the best fit for your business, plus insights on crafting a compelling pitch deck to attract investors.<\/p> Receive six actionable guides, including a how to start a business checklist, detailed comparisons of LLCs, corporations, sole proprietorships, and partnerships to determine the best fit for your business, plus insights on crafting a compelling pitch deck to attract investors.<\/p> Receive six actionable guides, including a how to start a business checklist, detailed comparisons of LLCs, corporations, sole proprietorships, and partnerships to determine the best fit for your business, plus insights on crafting a compelling pitch deck to attract investors.<\/p> The Brewer’s Association for Small and Independent Craft Brewers identifies four separate market segments<\/a> for the craft beer industry – microbreweries, brewpubs, contract brewing companies, and regional craft breweries.<\/p>\n Here’s some info on each to help you decide which is the right fit for you…<\/p>\n It’s important to note that each state in the US defines its alcohol laws. And, to truly understand your business options, you’ve got to learn what’s legal in your state.<\/p>\n So, read up on your state’s laws. A microbrewery in one state may be governed by very different rules than a microbrewery in the next state over.<\/p>\n And once you’ve decided which overall business structure is the right fit for you, it’s time to get more specific. We recommend that you write a business plan<\/a>. This should outline your goals and how you plan to achieve them.<\/p>\n A business plan will guide you as you run your business. And, remember – business plans aren’t set in stone (you should be prepared for it to evolve). But they are a necessary starting point to help you get your business.<\/p>\n Ensure that your business plan assesses your total addressable market<\/a> to help you understand the opportunity better.<\/p>\n <\/a> The alcohol industry is governed at both the federal and state levels. Alcohol production, distribution, and sales are all heavily shaped by laws.<\/p>\n <\/div> The alcohol industry is overseen at the federal level by the Alcohol and Tobacco Tax and Trade Bureau or “TTB.” You must know and abide by all existing federal laws governing beer and alcohol<\/a>.<\/p>\n And, while the federal laws and regulations provide the baseline for what you’ll need to know, they are merely the foundation. State laws have the most control over how your craft beer business will be run.<\/p>\n You should consider hiring an experienced business attorney who can help you navigate the legal pitfalls.<\/p>\n The current laws governing alcohol production, distribution, and sales evolved in the wake of the Prohibition era. After the 21st Amendment (lifting prohibition) was passed in December of 1933, states were left to decide how<\/em> to repeal the prohibition laws in their respective states. The result was a 3-tiered system separating alcohol producers, distributors, and retailers. This system is still in place in most states today.<\/p>\n Marc Sorini, lawyer and expert in alcohol regulatory law, explains<\/a>:<\/p>\n Fortunately for small brewers, the laws of many states provide flexibility allowing many brewery business models to thrive within the overall three-tier structure. Brewpub laws allow the marriage of producer and retailer tier into single premises… Conversely, most state brewery laws today authorize brewers to have a tasting room or restaurant as part of their brewery, and an increasing number of states permit brewers to also open a few remote retail tasting rooms or restaurants in order to brand themselves at premier retail locations.<\/p><\/blockquote>\n As you can see, this 3-tier system provides the framework within which your future craft beer business must operate. So, get to know it well. You can learn more about the 3-tier system here<\/a>.<\/p>\n Each state determines how this 3-tier system will be executed in their territory. So, look into your state’s laws governing beer production, distribution, and retail.<\/p>\n Investigating your state alcohol laws early will save you the strife of changing course mid-stream. These resources from the Brewers Association should help you get started with your state law research:<\/p>\n <\/a> Starting a craft beer business isn't all brewing and drinking.<\/p>\n There are basic administrative tasks that all businesses must complete to operate legally.<\/p>\n <\/div> For instance, you need to choose the business structure for your new business<\/a>. Sole proprietorship or LLC<\/a>? Will you incorporate<\/a> or register a partnership<\/a>?<\/p>\n
\nStep 1<\/div>Choose a business model<\/h2>
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<\/p>\nFree Business Startup Kit<\/h2>
Get your free startup kit<\/i><\/a><\/div><\/div><\/div>Free Business Startup Kit<\/h2>
Get your free startup kit<\/i><\/a><\/div><\/div><\/div>Free Business Startup Kit<\/h2>
Get your free startup kit<\/i><\/a><\/div><\/div><\/div><\/p>\n\n
\nStep 2<\/div>Get to know the legal stuff<\/h2>
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\nStep 3<\/div>Fill in the business blanks<\/h2>
<\/p>\n<\/div>\nWant a how to start an LLC guide?<\/div><\/div>No guesswork, just clear steps. Our free step-by-step guide and checklist make starting your limited liability company (LLC) simple.<\/div>\n