Homebrewing has become more and more popular over the years and for a good reason. First, it’s CHEAP! You can brew 5 gallons of high-quality beer for about $65. Secondly, it’s fun!
Have you ever had a day where you thought, “If I could quit my job and work from home, I’d have all the time in the world to brew beer”? The craft beer revolution has caused more and more people to brew their own beer and wine at home. It only makes sense that there are many ways that an individual can turn a homebrewing hobby into a revenue stream. There are an incredible number of ways to make money from homebrewing.
What is Homebrewing?
What is homebrewing? Simply put, homebrewing is brewing alcohol (beer or wine) at home. Homebrewing also means that you are brewing your beer or wine on a small scale for personal use and often implies the alcohol is for personal use. Producing alcohol for personal use was banned in many places for years. Thankfully, that is no longer the case.
Rules for Selling Homebrewed Alcohol
Before you can start selling your homebrewed alcohol, you must first look into the local regulations regarding the individual sale of alcohol. Per federal law, it is perfectly okay for any individual to brew up to 200 gallons of beer or wine a year. This alcohol must be intended for personal use, meaning that you cannot sell it to anyone else.
In order to sell your homemade products, you will need a liquor license. The bad news is that these can be pricy and can run as much as $20K. The good news? You won’t need to spend quite that much. There are two different types of licenses, and selling your homebrew only requires a beer and wine license. The average price tag for these licenses averages around $3000.
Once you obtain the proper license, you will most likely be considered a micro-brewery by your state and should be free to sell your beer or wine. Of course, regulations can vary considerably. Be sure you research the exact requirements for your city and state.
Getting Started
To make money selling your homebrew, the most important step will be making your products. Many people who make this leap are already seasoned pros who have been practicing the craft as hobbyists. If this is the case for you, you likely already know where to start and what you’d like to offer. But don’t be intimidated if you are entirely new to homebrewing. There is no reason you can’t learn the art as you go.
Regardless of your experience level, you should pick one or two items to brew. Starting small can help you from spreading yourself too thin which could doom the whole venture. Once you know what you’d like to make, start brewing! You can easily be practicing your skills while you plan your strategy.
Equipment You Need
Of course, there is some basic equipment that you will need. This list of the essentials will give you everything you need to start brewing beer at home. Of course, this is just the most basic equipment list. There are bound to be plenty of other things you will find as you go.
- Raw materials or ingredients
- Brewing pot and a heat source
- Fermenter bucket and bottling bucket
- Cleaner and sanitizer (food grade)
- Airlock and stopper
- Racking cane
- Nylon bags (for hops)
- Hydrometer and thermometer
- Bottles and caps
- Bottle caper and botting wand
Manage Your Expenses and Identify Your Margins
Expenses include more than just the cost of the actual ingredients. They include the price you pay for everything that goes into your production process. Some of these costs will be one-time costs (like the cost of purchasing the equipment), while others will be the everyday consumables. Your expenses also include the money you spend marketing your beer. All these things affect the final price you should be charging for beer, so you must take the time to identify each of them.
Your margins are what make after accounting for all your expenses. Unlike profit (which is the actual dollar amount), your margin is a percentage figure that helps you better see how your operating costs compare to your profits. Knowing this percentage is crucial, particularly when you are considering which types of brews to sell. No doubt you want to showcase your talent by selling your best work, but if you are losing money on every single bottle, you will find it challenging to keep going.
Knowing your margin can help you identify ways to keep all your costs at a minimum so you can maximize your profit. Knowing the margin can also help you determine the best prices to charge ensuring you actually make a profit. Don’t forget to include your own labor when calculating this figure because if you exclude it, you could be finding yourself being paid pennies per hour of work.
Provide Good Brews
Of course, if you want to be successful at selling your homebrewed products, you will have to do the work to ensure that you are making something that your potential customers want to buy. While, in theory, homebrewing is relatively easy, there is a reason that enthusiasts view brewing as an art form!
If you love beer so much that you already picked up a homebrewing hobby, you not likely aiming for simply good beer. As an enthusiast, you want to be making GREAT beer that brings something new to the table. Realistically that is a long-term goal, particularly if you are brand new to brewing. Even if you haven’t quite mastered great beer, you will still be able to find customers. There is no reason you can’t learn the trade as you go.
Local Homebrewing Clubs
Most brewers are constantly learning new methods and searching for new tips and tricks to make their brew better. Local brewing clubs are an excellent way to meet up with other local brewers as you search for ways to perfect your beer. If you are a beginner, you will have the opportunity to draw from the experience of more seasoned pros and hobbyists. However, clubs can still be quite beneficial even if you’ve been brewing for years. These clubs are an excellent way to network and even market.
These connections can give you a massive advantage as you search for ways to sell your homebrew. There are bound to be other members attempting to do just the same thing. Don’t think of these individuals as competitors. Instead, you are likely to find that these connections can be a fantastic source of ideas for people and places to sell your products. Also, not everyone in these groups is looking make money. Most members are likely to be other homebrew enthusiasts exploring a hobby that they love. They can provide you with an opportunity to test what is working (or not working) as you make your brew. Some of these other members may even be able to set you up with new customers.
Where to Sell Your Homebrew
Once you are brewing and have made some connections, the next step is finding people to buy your brew. You don’t need a full-scale brewery. There are an incredible number of ways to make money, even if you are brewing on a smaller scale.
A local farmer’s market can be an excellent starting point. These markets are a great way to reach the very people who will most appreciate specialty crafted creations, making them highly likely to be receptive to what you are offering. These consumers are also often incredibly willing to introduce your products to other like-minded consumers.
Farmer’s markets aren’t the only local events that can help bring beer enthusiasts to your door. Most communities have no shortage of small festivals throughout the year, which offers another incredible opportunity to reach potential buyers. Having a community presence is a vital part of any endeavor’s long-term success.
While many brewers find that they can quickly build demand for their brews in these smaller-scale settings, you will likely want to search for other opportunities to sell your products. Once your production can handle larger scale orders, you can consider approaching event venues to use your products. Reaching out to local party planners or wedding coordinators can also prove helpful. You might also want to sell directly to bars and restaurants. Small locally owned establishments are often quite receptive to including a great specialty brew that their customers can’t buy anywhere else. You may want to consider renting out kegs directly to consumers. The only true limits on where you can sell your homebrew are your imagination and your ability to supply your customers.
Set Up a Website
Of course, you can easily continue to sell batches of your homebrew on a small scale for as long as you wish, but you may find it challenging to recoup your expenses. After you have taken the time to establish a presence in your community, the logical next step is to set up a website. An online presence makes it easier for your customers to find you. It allows gives you the best opportunity to widen your network
Unfortunately, a killer website doesn’t do much but sit there if no one ever visits it. Thankfully, there is no shortage of ways to help drive traffic to that website. You can use social media for advertising or use good content to bring traffic to your website. Target other beer enthusiasts who are just looking to learn more about beer. Offer a tutorial on brewing beer at home or find a popular beer blog to link your website into their existing content. Don’t overlook YouTube or TikTok. Content is the number one way to get people to know your business exists.
Provide Good Service
Selling anything requires having a customer-first attitude. What does that mean? You must provide customers with good service. That doesn’t have to mean giving in to ridiculous demands or even acting like the customer is always right. What it means is giving every customer the type of service that you want to receive. Give them the little extras and treat them like they are your friends. That is how you develop a reputation for good service. As you start to branch out, this reputation will provide you with valuable word of mouth advertising. This word-of-mouth reputation is a type of advertising you can’t pay for, and it is far more successful than anything you can buy.
Other Ways to Make Money Homebrewing
If the idea of investing a lot of money on a beer/wine license is intimidating, don’t fear. There are still plenty of things you can do to make your hobby profitable. While you might be assuming you need to sell what you are brewing, you can make money without selling a single drop of alcohol. Those content-based marketing strategies used to help bring traffic to a website can make you money all on their own. You could start a blog that shares your day-to-day experiences as a homebrewer or create a YouTube channel that offers brewing tutorials. You might even provide lessons either online or in-person to teach others the art of homebrewing.
Partner with a Micro-brewery
Finding a partner who already has a liquor license can be a great way to make money off your hobby without having to make a huge investment. A partnership can be a particularly great idea if you already have one or two recipes that you’ve perfected and just want to focus on making beer. Many local micro-breweries are more than willing to partner with homebrewers. They pay you for your services and purchase the ingredients. You work as a contracted employee to make your recipe for them.
Conclusion
Money can be made from homebrewing, and anyone can learn how to turn this fantastic hobby into regular income. Make good beer, provide good service, know what the rules are in your area for selling alcohol, but most importantly, have fun. Enjoy the ride. You likely didn’t start homebrewing because you want to get rich. You started it because it’s a hobby you love. The great news is that millions of other beer lovers are bound to be just as excited by your homebrews as you are.