Difference between revisions of "Regional Brewery Feasibility Study"
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'''Conclusion: install 30 bbl brewhouse with fermentation capacity to produce only ~8K bbl/year (4-5% of beer market). Consider brewhouse with dual heating (15/30 bbl) operation.''' | '''Conclusion: install 30 bbl brewhouse with fermentation capacity to produce only ~8K bbl/year (4-5% of beer market). Consider brewhouse with dual heating (15/30 bbl) operation.''' | ||
| + | |||
| + | ==Labor Force== | ||
| + | ===Brewing Operations=== | ||
| + | ''Scenario 1: 2 brews per day; 8K bbl/yr production'' | ||
| + | *Head brewer (1) | ||
| + | *Assistant brewers (2) | ||
| + | *Fermentation hall/yeast manager (1) | ||
| + | *QC lab manager/technician (1) | ||
| + | *Packaging | ||
| + | :*Bottling line manager | ||
| + | :*Bottling line operators (4-6) | ||
| + | (Note: Assistant brewer, Fermentation hall manager, and QC lab manager are trained on all brewhouse/fermentation operations) | ||
| + | |||
| + | |||
| + | ===Sale/Marketing=== | ||
| + | |||
| + | ===Legal=== | ||
| + | |||
==Finances== | ==Finances== | ||
| Line 70: | Line 88: | ||
:Labor cost per bbl = ??? | :Labor cost per bbl = ??? | ||
:Capital cost per bbl = ??? | :Capital cost per bbl = ??? | ||
| − | : | + | :Overhead cost per barrel = ??? |
:Sales per bbl = $300 | :Sales per bbl = $300 | ||
| + | |||
| + | ''Scenario 1'' | ||
| + | 8K bbl/yr production | ||
==Strategies== | ==Strategies== | ||
Revision as of 13:35, 16 December 2016
This page is a workspace to consider the feasibility of opening a "regional" brewery in Monmouth, IL to serve initially the Central Illinois region. Future plans to expand would include the 7 Midwest states (MI, IN, IL, MO, IA, NM, WI) but NOT "beer-rich" areas such as Chicago or St. Louis.
Areas of Operation
Original operations will target "area 1":
- Monmouth (9K population)
- Galesburg (31K population, 16 miles from Monmouth)
- Macomb (18K population, 33 miles from Monmouth)
- Peoria (115K population, 67 miles from Monmouth)
- Rock Island (38K population, 50 miles from Monmouth)
- Moline (42K population, 50 miles from Monmouth)
- Bloomington-Normal (78K/54K population, 110 miles from Monmouth)
- Springfield (116K population, 120 miles from Monmouth)
- Decatur (73K population, 150 miles from Monmouth)
- Quincy (41K population, 100 miles from Monmouth)
- Rockford (148K population, 165 miles from Monmouth)
- Champaign-Urbana (86K/42K population, 160 miles from Monmouth)
Total Population Area 1 = 891K ~ 1M (including smaller communities)
According to http://www.infoplease.com/us/census/data/demographic.html 70% of the US population is over the age of 21.
- So 70% of 1M = ~700,000 adults in the above population.
According to Gallup poll, see link below, 41% of adults drink beer. For each drinker, they consume 4.1 beers (12 oz) per week.
- So 41% of 700,000 = ~287,000 beer drinker
- 287,000 each consume 4.1 beers per week = ~1.2M beers per week
- If each beer is 12 oz then 1.2M beers is equal to ~110,000 gal (128 oz) per week or ~5.7M gal per year.
- In brewery terms, 5.7M gal is equal to 185K bbls (31 gal) per year.
So, a US population of 1M will consume ~ 185K bbls of beer per year.
Brewing Operations
Brewing operations will be located in Monmouth IL adjacent to interstate 34. Brewing system will be based on 4-vessel system with fermentation capacity to balance production of 40% ale and 60% lagers.
Scenario 1:
- 15 bbl brewing system, brewing 1 per day, 5 day a week.
- total production = ~3.90K bbls per year...or ~2.11% of beer market.
Scenario 2:
- 15 bbl brewing system, brewing 2 per day, 5 day a week.
- total production = ~7.80K bbls per year...or ~4.22% of beer market.
Scenario 3:
- 30 bbl brewing system, brewing 1 per day, 5 day a week.
- total production = ~7.80K bbls per year...or ~4.22% of beer market.
Scenario 4:
- 30 bbl brewing system, brewing 2 per day, 5 day a week.
- total production = ~15.60K bbls per year...or ~8.43% of beer market.
Scenario 5:
- 50 bbl brewing system, brewing 1 per day, 5 day a week.
- total production = ~13.00K bbls per year...or ~7.03% of beer market.
Scenario 6:
- 50 bbl brewing system, brewing 2 per day, 5 day a week.
- total production = ~26.00K bbls per year...or ~14.05% of beer market.
Summary
- Production breweries need to maximize the use of capital investment, so a minimum of 2 brews per day is expected with a max being 4 brews a day during high volume times.
- Scenario 1, 3, and 5 are not desirable due to only 1 brew per day.
- It is very unlikely that scenario 6 (ie. capture 14% of all beer consumption) is feasible.
- Scenario 2 seems most feasible (4% of beer consumption), but thoughts of future expansion (mainly as a contract brewer) would lean towards investing in a 30 bbl brewhouse with future expansion of the fermentation capacity.
Conclusion: install 30 bbl brewhouse with fermentation capacity to produce only ~8K bbl/year (4-5% of beer market). Consider brewhouse with dual heating (15/30 bbl) operation.
Labor Force
Brewing Operations
Scenario 1: 2 brews per day; 8K bbl/yr production
- Head brewer (1)
- Assistant brewers (2)
- Fermentation hall/yeast manager (1)
- QC lab manager/technician (1)
- Packaging
- Bottling line manager
- Bottling line operators (4-6)
(Note: Assistant brewer, Fermentation hall manager, and QC lab manager are trained on all brewhouse/fermentation operations)
Sale/Marketing
Legal
Finances
- Material cost per bbl = ~$50
- Labor cost per bbl = ???
- Capital cost per bbl = ???
- Overhead cost per barrel = ???
- Sales per bbl = $300
Scenario 1 8K bbl/yr production
Strategies
- Brew 2-3 "flagship" ales / brew 4-6 "flagship" lagers / 2-3 "specialty" beer for general distribution
- Contract brew for 3-5 smaller breweries
- Can and bottle product
- tap room on site
- offer beers to ball parks (Quad Cites, Peoria, Burlington)
- Guest brewers/resident brewer
- Brew school/lab???