[Teal]

That's what I'm thinking tho. I guess it depends on your individual comfort level. Are you comfortable putting 6 figures or so on the line with equipment purchases, quitting your job, benefits etc to buy your own gear and giving it a swing or are you more comfortable with risking SOME of your money to either enter an AP or contract brew to see how it goes.
You return less to your pocket perhaps but some is better than none?

With a lot of things I've been involved with for every 15 people who say "Dude, I'd totally buy/payfor/attend/support XYZ" = plan on 1 actually doing it which means those sales that you're counting on are vaporware more than anything.

[majorvices]

Speaking to a local contract brewery recently, the guy out right told me there is no way to make money contract brewing. The actual brewer is the one who makes the profit. They ended up securing finances and are now in the process of building a brewery.

I'll add, brewing is a craft and as a brewer I take pride in my own craftmanship. All contract brewers have is a recipe and the rest is all marketing. That's not brewing. It becomes more about selling t-shirts than about brewing.

[a10t2]

All contract brewers have is a recipe and the rest is all marketing.

*If* you find a contractor who will let you dictate recipes, which is not a given.

[Thirsty_Monk]

I would also agree that contract brewing looks great on spreadsheet.
Reality is different.
I do not have experience with alternating proprietorship.
Not too many breweries want to do that in my area.
 

[bo]

I know a guy that has a small brewery and when he gets behind, he contracts it to others. He has told me on several occasions that he wonders why he brews himself, because he makes about the same having someone else do it for him and he doesn't work as hard. I think he just loves brewing and that's why he doesn't contract everything.

[majorvices]

I'm in no way saying your friend is wrong, but that is totally contrary to what other people have told me.

[bo]

I'm in no way saying your friend is wrong, but that is totally contrary to what other people have told me.

I'm sure he has studied it in detail. He has a business degree and is one hell of a sharp guy and a good brewer as well. It's the brewing part of him and that will never allow him to be completely hands off.

[Thirsty_Monk]

I'm in no way saying your friend is wrong, but that is totally contrary to what other people have told me.

I'm sure he has studied it in detail. He has a business degree and is one hell of a sharp guy and a good brewer as well. It's the brewing part of him and that will never allow him to be completely hands off.

If I could, I would post a pricing what you can buy case for and what you can sell it for when contract brewing.
My pricing is wholesale to retail outfits.
If your friend contract brew and sell this beer on premise then it could work.
Good for him.

[bo]

I don't think he's allowed to sell on premise. He is very good at negotiating, so I wouldn't doubt that he getting a better than normal deal. This is one of those guys that truly could sell ice to Eskimos.

[a10t2]

I'm in no way saying your friend is wrong, but that is totally contrary to what other people have told me.

Having worked at a brewery that contract brewed to increase production, I'd have to agree. Our margin on the contract beer was perilously thin.

Unless maybe the contractor is brewing several times his volume, and he meant that on a per-batch basis the profit was the same.