Author: Henry Chen Publish Time: 2025-09-29 Origin: CASSMAN BEER BREWING EQUIPMENT
After two decades in the brewing equipment manufacturing business and helping over 500 breweries worldwide get off the ground, I get this question almost daily: "Henry, what's it really going to cost me to start a small brewery?"
Well, let me be straight with you – there's no one-size-fits-all answer. But I can share what I've learned from working with countless brewers who've made this dream a reality.
When I first started at Jinan Cassman Machinery Co., Ltd. back in 2004, I thought brewing was all about the tanks and pipes. Boy, was I wrong. Starting a brewery is like building a house – the foundation (your initial investment) determines everything else.
From my experience, a small craft brewery typically requires anywhere from $250,000 to $750,000 to get operational. I know that's a wide range, but hear me out on why the numbers vary so much.
This is where I spend most of my time with clients. For a small brewery producing 1,000-3,000 barrels annually, you're looking at:
Basic brewing system (3-7 barrel): $80,000 - $200,000
Mash tun, lauter tun, brew kettle, whirlpool
Fermentation tanks (4-8 tanks minimum)
Bright tanks for conditioning
Heat exchanger, pumps, and piping
I always tell my clients: don't go cheap on the core brewing system. I've seen too many breweries struggle because they cut corners here. At Cassman, we've designed our systems to grow with your business – something I learned matters a lot after watching breweries outgrow their equipment in just two years.
Additional equipment you'll need:
Glycol cooling system: $15,000 - $30,000
Steam boiler or direct fire system: $10,000 - $25,000
Grain handling equipment: $5,000 - $15,000
CIP (Clean-in-Place) system: $8,000 - $20,000
Here's where I see most new brewery owners get blindsided:
Facility costs: $50,000 - $150,000
Lease deposits and renovations
Electrical upgrades (brewing uses a lot of power!)
Plumbing and drainage systems
HVAC systems
Licensing and permits: $5,000 - $25,000
Federal brewer's notice
State and local permits
Building permits for renovations
Initial inventory: $10,000 - $30,000
Malt, hops, yeast
Cleaning chemicals
Packaging materials (bottles, cans, labels)
Total investment: $250,000 - $400,000
I've worked with many nano brewers who started this way. It's a great testing ground, but be realistic about your production capacity. You'll be brewing almost daily to keep up with demand if you're successful.
Total investment: $500,000 - $750,000
This is the sweet spot I recommend to most clients. You get economies of scale while staying manageable. Most of our successful brewery partners started here.
Total investment: $750,000 - $1.2 million
This requires serious business planning and usually investor backing. But the production efficiency makes it worthwhile if you have the market demand.
After helping 500+ breweries, I've picked up some tricks:
Buy quality equipment once: I can't stress this enough. I've seen breweries spend more on repairs and upgrades than they would have spent buying proper equipment initially.
Plan for expansion: Design your facility and choose equipment that can grow. We build modular systems at Cassman specifically for this reason.
Consider used equipment carefully: Sometimes it works, sometimes it doesn't. I always recommend having any used brewing equipment inspected by professionals like our team.
Start with fewer beer styles: Focus on 3-4 core beers initially. You can always expand your lineup later.
Here's some real talk from someone who's seen both spectacular successes and painful failures:
Revenue expectations for small breweries:
Nano brewery: $200,000 - $500,000 annually
Small craft brewery: $500,000 - $1.5 million annually
Break-even timeline: Most successful breweries I work with hit profitability in 18-36 months. The ones that make it past year three usually do very well.
I've watched clients fund their breweries in various ways:
SBA loans: Popular choice, typically 70-80% financing
Private investors: Common for larger operations
Crowdfunding: Works well if you have community support
Personal savings + small business loans: How many nano breweries start
Look, I'm in the business of selling brewing equipment, so you might think I'd tell everyone to jump in. But I've learned that successful breweries aren't just about having great equipment – they're about having realistic expectations and solid business plans.
Before you call me about equipment, make sure you've got:
A detailed business plan
Sufficient working capital (not just equipment money)
A clear understanding of your local market
Experience in brewing (or a head brewer who does)
Starting a small brewery typically costs $250,000 to $750,000, with equipment being your largest single expense. But remember – this is just the entry fee. Running a successful brewery requires ongoing investment in ingredients, labor, marketing, and maintenance.
I've seen breweries succeed with minimal budgets and others fail despite huge investments. The difference usually comes down to planning, execution, and understanding your market.
If you're serious about starting a brewery, I'm always happy to discuss your specific situation. After 20 years and 500+ brewery projects, I've probably seen something similar to what you're planning. Feel free to reach out to us at Cassman – we're here to help turn your brewing dreams into reality.
Want to learn more about brewing equipment costs or discuss your brewery project? Contact us at Jinan Cassman Machinery Co., Ltd. We've been helping brewers worldwide since 2004, and we'd love to help you too.
