Craft Brewery: A Profitable Business Opportunity

Craft breweries are emerging as a profitable business opportunity due to the increasing demand for unique flavors and quality beer. This article discusses the potential of starting a craft brewery business, targeting customers such as youngsters, professionals, and old age individuals. It also explores strategies to attract customers, beat competitors, and produce high-quality beer at a cheap price.

As this business has been growing very rapidly across the US and UK. The independent, small and commercial breweries
have been emerging in marketplace. The demand of such product has been rising so much. In this way the craft brewery is
been new business opportunity which have been selected as business idea. Craft brewery is the firm which produce
minimum amount of the beer that is typically owned. This can be generally classified on the basis of their flavour, quality
and the technique of brewing which is further. Nowadays, beer had become the most common part of individuals life for
celebration, regaining pain, parties etc. So, the craze of beer has been enhanced as More and more consumer opted variety
of brands as per their taste. Once consumer is addicted to particular brand then they will not pursue any other one so it had
created a great opportunity for setting up these businesses. By providing a great flavour and taste huge customers can be
attracted to the brand (Mansoori and Lackéus, 2019). Thus, Craft brewery company have their own brewery business and
creating further opportunities & experimenting several flavours of the beer. Yes, with the help of effective methods it can
be effectively produced and sold at cheap price as compare to other business available in the market. So, with the immense
strategy business could be successfully implemented and gain huge success further.
How have you confirmed there is a need for your business?
Starting a new brewery plant is surely most expensive. The entrepreneur had planned to launch it, but they couldn't due to
low start-up capital. So further they had an option for starting craft brewery business further. The craft brewery is also
known as microbrewery. Craft brewery is known as some quarters of plant which produces little amount of the beer over a
particular time. It is a small brewery which cannot be compared to big brewery plants. An entrepreneur who has been
having enough cash and techniques of brewing could easily start their own microbrewery business (Wei and et.al., 2018).
Microbrewery can be characterized by emphasizing on their special favour, beer's quality and technique of brewing. The
brewery who has capacity for producing less than 15,000 barrels of the beer. This is counted annually under microbrewery
or craft brewery. That's the reason wide range of entrepreneur has been attracted towards his business as it needs minimum
amount of cost as compared to the standard brewery. Beer is the most popular drink which have been consumed by large
number of consumers globally. So, it had developed large market for beer no matter what amount of quantity is being
produced per time. This is why starting craft brewery could be profitable venture (Takeda, 2018). In 1970, it has been
spread in all over the UK and had sustained the huge amount of growth. They had become more creative and thus unique
beers are being developed and sold into their own restaurant, pub, bar etc., However, production and profits has been
raised significantly. No there is no particular trend in the marketplace. Annually 6 million of barrel of beers are being
produced. Total revenue which have been generated by this industry is around £9 billion till 2020. The key players in
market are Molson Coors Brewing Company Ltd, AB InBev UK Ltd, Heineken UK Ltd, manufacturer and suppliers etc.
Yes it consumer survey has been done before the business idea has been taken forward. The consumers reaction and
opinions were positive and was in the favour of business idea.

1. BUSINESS OVERVIEW
1. WHO ARE YOUR CUSTOMERS AND HOW WILL YOU REACH THEM?
Customer Profile Why are
you
targeting
them?
How are
you going
to get their
attention?
How are you
going to
convince
them to buy
from you?
What
specific
activities
does this
mean you
need to do?
What
approximate
level of
spend will
you need on
each
activity?
1. Youngsters (18-
27):
All these are the
students who are
pursuing their study
and young generation
of the nation. This
are rapidly moving
further adopting the
drinking habits in
themselves.
They will be visiting
the restaurant or pub
and enjoying. They
do not have any
household income as
Youngsters
are nowadays
moving
towards the
trends and
adopting the
drinking
habits as
trend in
society.
Thus, the
product of
company is
probably
liked or
pursued by
To attract
youngsters’
promotions
and
advertiseme
nt can be
done on
various
social
media
websites
and events
etc., so that
they can
attract them
significantl
Unique
flavour and
taste with
cheap price
are helpful in
attracting
wide range of
youngster’s
top purchase
the beer.
For
organizing
event venue
and caterers
could be
booked and
further. It will
be needed to
have
invitations to
youths for
coming and
enjoying the
live concert.
They can
easily
For
organizing
concert and
events it will
be costing
£5000

they are fully
depended on money
which is given by
their parents. No,
they don't have kids.
They are single
youth having their
career.
them
effectively
(Singh and
Vinodh,
2017). They
try to opt
different
taste and one
of them can
become more
favourable
for them.
y. promote their
brand among
huge public.
2. Professionals
(25-35):
All this are
individuals who are
pursuing their jobs
and well settled and
spending their own
money for their
family and
livelihood.
They will be visiting
the restaurant or
hotels and having it
there. They can have
kids. Professionals
have household
income
There family is
depended on them.
For
professional,
it can be the
tension
buster. As in
the
professional
life
individual
suffers from
several
tensions
which can be
excited by
the beer and
thus wide
range of
professionals
uses it to
relax
themselves
from such
tensions in
life.
Professiona
ls can be
attracted by
promoting
their
products by
publicity
events,
social
media and
corporate
events etc.,
so that
professional
s can be
attracted
easily.
It's flavour
will attract
wide range of
professional
along with
type of beer.
For
organizing
corporate
event
company will
need to invite
all
professionals
and
encouraging
them to take
part in event,
there they
can, promote
their product
to them and
give them
discounts
offer there.
To organize
corporate
event will be
estimate up to
£7,000
3. Old Age
(above 50)
Old age people are
individual who had
completed their
professional career
and spending their
life relaxed further.
They could be had
this on their home or
For old age
people they
can use bear
for their
enjoyment or
getting
themselves
away from
the pains and
having a
Old age
people can
be attracted
by
newspaper,
radio and
TV as they
are more
familiar
with that
There is
special type
of beer that is
specially for
old age
people as it
contains less
amount of
alcohol in it
in minimum
They can
place a
advertisement
on TV,
newspaper
and availing
with discount
offers and
special
flavours as
To advertise
in newspaper
and TV it will
need £2000.

visiting any
restaurant. They will
be definitely having
kids (Henderson,
Goldring and
Simeon-Dubach,
2017). Someone has
household income
from the retirement,
investment or any
business or could be
depended on their
child.
good sleep. and this all
source of
promotion
have
become
daily
routine of
their life.
pricing can
easily attract
this age
group.
per their age
group.

2. WHO ARE YOUR COMPETITORS AND HOW WILL YOU BEAT THEM?
Competitor
profile
What will
you be
competing
with them
on?
Why do
customers
buy from
them?
Why would
customers
switch to
you?
What specific
activities will
you need to
do?
What
approximate
level of spend
will you need
on each
activity?
1.Molson
Coors
Beverage
Company
The company
will be
competing
with its
unique
feature.
Consumer are
attracted
towards them
as they
provide wide
range of
unique
feature.
By providing
unique feature
in beer
consumer can
be switched.
This can be
done by
enhancing
research and
quality if
beers
production.
£3000
2.Carlsberg
UK Ltd.
They had low
pricing with
amazing
features
which is the
main base of
competition.
They attract
consumers by
providing
them specific
features at
low pricing.
Consumer can
be switched
out if they
were offered
with special
feature at
minimum
pricing
(Kepczynski
and et.al.,
2018).
By reducing
cost of
manufacturin
g and other
expenses.
£6100
3.Heineken
UK Ltd
Company is
having variety
of flavours
and
competition is
being done on
the basis of
this.
The wide
range of
customer are
attracted by
their different
types of
flavours.
By providing
various
flavours to
consumer.
By
experimenting
different types
of flavours.
£4000
No Competitors.Explain Why

1. HOW WILL YOUR PRODUCT BE PRODUCED OR HOW WILL YOUR
SERVICE BE CARRIED OUT?
The company will be manufacturing beer with the
traditional method of making beer. Company will be
having a great emphasis on the producing the quality
products and services. They raw material are being
collected from suppliers and then taking this to the
production department where this raw material will be
further proceeded and converted into the finished
goods. Then they are packed into bottle after quality
check and transferred to the own restaurant and pub
(Kollmann, Stöckmann and Linstaedt, 2019). The
equipment will be needed are fruits, raisins and
several ingredients. They will be transported to
production site through trucks.
COST DETAILS: BELOW, GIVE COST
DETAILS1
ESTIMATED COSTS
How will the product(s)/service(s) be delivered to
the customer? And how much will this cost?
Product and service will be delivered to consumer at
their own restaurant or pub.
£2000
1

Quality: Please describe your quality control
process.
Before placing beers into the bottle’s quality check
is being done by the quality team. The quality team
checks beer quality if it is OK then packed into
bottles and if it does not pass out quality standards
then rejected for further proceedings.
£3000
Payment processing: How will payments be
accepted?
Payment mode can be cash or card. This can be
charge for staff who will be collecting the payment.
£50.00
2. STAKEHOLDERS – who will be involved in your business besides you? How will
you manage their involvement and their expectations? What costs will be associated with
them? E.g. self, staff, suppliers, shareholders, others
List the stakeholders Any issues which may arise
and how you will manage
them
Any costs associated with this
1. Staff If any issue arises then it
can be managed and
controlled by the manager
(Ferreira, Loiola and
Gondim, 2017).
£200
2. Suppliers If there is any problem then
manager solve this by
contacting them.
£400
3. Shareholder It can be solved with
consideration in board
meetings.
£300
4. Manager This could be solved by top
management
No cost
3. PRICING - In this section you need to outline your pricing plan
Product or Service –
list up to 3
Price you will charge Why is your price set
at this level?
How does this price
compare to your
competition?
1. Apatinsko £20.00 It is minimum pricing
which can be helpful
for consumer to pay
low price for beer.
Competitors provide
high pricing.
2. Aquarelle £30.00 It is minimum pricing. It is low as compare to
competitors with

unique flavour.
3. Astika £20.00 To compete with rivals
at low price.
They offer this at high
price.
Product or Service (from table above) Predicted sales
(££)
Timeframe Notes: How have you arrived at this
figure? How have you used your market
research or test trading to forecast your
target sales figures? Consider all
relevant factors e.g. are your sales likely
to be seasonal? Do you already have
some customers lined up? What may
adversely affect your sales?
1. Apatinsko £40000 Within three
months
With the help of market research, it can
be analysed that this product is most
popular and can get huge sales in
company (Dearman, Lechner and
Shanklin, 2018). Sale will be yearly. No
consumer is to be lined up.
2. Aquarelle £6000 Among six
months
It is seasonal the beer which is served
for 6 months at the time of winters. It
has been analysed with market research.
3. Astika £9000 After 4 months This beer product are being served
across the year and from market
research it has been optimized that it is
too popular among youth.
4. SALES – QUANTITY – for the above products or services, what is the value of
your predicted sales forecast within what timeframe?

Your business needs to operate according to relevant legal frameworks and
regulations. You should also ensure you are covered by appropriate insurances
should anything go wrong.
Needs Associated costs?
Do you need any licences to operate your
business?
Yes, license will be needed for operating
business.
£500.00
What legal requirements are applicable to your
business?
Yes, legal requirement for food hygiene and
safety is need to be considered while operating
the business in significant way and successfully
(Moro Visconti, Montesi and Papiro, 2018).
£30.00
What insurance might you need to cover your
business?
The professional indemnity and health & safety
insurance will be needed for covering this
business.
£65.00
Anything else to consider? E.g. intellectual
property protection, trademarks, copyright etc
Trademark, copyright and intellectual property
protection will also be needed in business so that
it can be smoothly operated.
£400.00

Over a period of 6 months, summarise all projected costs2 and turnover previously
identified in your plan. Categorise them into 3 sections: Set-Up, Operational, and
Projected Turnover. Add extra lines if you need them. Where a monthly cost is
appropriate, use these columns. Where not, you can simply include a total
1. SET-UP –
LIST
ACTIVITIES
BELOW
MONTHLY COSTS TOTAL COSTS
OVER 6 MONTHS
1 2 3 4 5 6
Legal 3500 3517.5 3535.08 3552. 3570. 3588. 21264
Office
equipment 4950 4999.5 5049.495 5099.9 5150.9 5202. 30452.
land lease 7200 0 0 0 0 0 7200
stationary 4000 4080 4161.6 4244.832 4329. 4416.3 25232.
vehicle
finance 3700 0 0 0 0 0 3700
TOTAL FOR SET UP 87849.2
2.
OPERATIONAL
– LIST
ACTIVITIES
BELOW
1 2 3 4 5 6 TOTAL COSTS
OVER 6 MONTHS
Salaries 30000 30000 30000 30000 30000 30000 180000
Raw material 10000 10200 10404 10612.08 10824.3 11040.8 63081.2
2
? Santander website

utilities 2000 2002 2004.0 2006. 2008. 2010. 12030.0
advertising 3000 3000 3000 3000 3000 3000 18000
maintenance
and repairs 1500 1500 1500 1500 1500 1500 9000
supplies cost 1500 1515 1530.15 1545. 1560. 1576.51 9228.0
TOTAL FOR OPERATIONAL 291339.2
GRAND TOTAL SET-UP + OPERATIONAL OVER 6 MONTHS
3. PROJECTED
TURNOVER –
LIST
ACTIVITIES
BELOW
1 2 3 4 5 6 TOTAL TURNOVER
OVER 6 MONTHS
sales 50000 52500 55125 57881.25 60775. 63814.0 340095.
other income 10000 10200 10404 10612.08 10824. 11040. 63081.
TOTAL PROJECTED TURNOVER 403176.
GRAND TOTAL: PROJECTED TURNOVER - (SET-UP + OPERATIONAL) = 23988.
NOTES (add any notes here which are relevant to your financial projections
From the above financial projection, it can be stated that the financial position of
business in first six months will be average but after 6 months company will be
having a profit of £23988 after the deduction of all set up and operational expenses.
Overall, it can be assumed that business will be profitable and could have immense
growth in marketplace.

REFRENCES
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