How Much Does It Cost to Start a Brewery?
- Nate Jones, CPCU, ARM, CLCS, AU
- Nov 10
- 2 min read
Updated: 22 hours ago
Starting a brewery is a dream for many craft beer enthusiasts, but turning that dream into reality requires careful financial planning. From brewing equipment to permits and insurance, the costs can add up quickly. At Wexford Insurance, we specialize in helping brewery owners protect their investment with tailored brewery business insurance that fits your budget and operational needs.
In this guide, we’ll break down the major expenses involved in opening a brewery and explain why insurance should be part of your startup budget.
Average Startup Costs for a Brewery
The total cost to start a brewery varies based on size, location, and business model (microbrewery, taproom, or brewpub). Here are the key expenses:
1. Brewing Equipment
Brewing systems, fermenters, kettles, and cooling systems are your biggest investment.
Estimated Cost: $100,000 – $500,000 depending on capacity and automation.
Read more: Explore top brewery equipment .
2. Facility Lease or Purchase
Your location must meet zoning requirements and have adequate utilities.
Estimated Cost: $2,000 – $10,000/month for lease; purchase costs vary widely.
3. Renovations and Build-Out
Includes plumbing, flooring, ventilation, and taproom design.
Estimated Cost: $50,000 – $200,000 depending on size and design.
4. Permits and Licenses
Breweries must comply with federal, state, and local regulations.
Estimated Cost: $3,000 – $10,000 for TTB permits, state licenses, and health certifications.
Read more: Visit TTB.gov for brewery licensing requirements.
5. Raw Materials
Ingredients like malt, hops, yeast, and packaging supplies.
Estimated Cost: $5,000 – $20,000 for initial inventory.
6. Staffing
Brewers, servers, and administrative staff.
Estimated Cost: $40,000 – $100,000 annually depending on team size.
7. Marketing
Branding, website, social media, and local events.
Estimated Cost: $5,000 – $20,000 for initial campaigns.
Struggling to market your business? Visit Contractor Back Office for website SEO and marketing support.
Insurance Costs for Breweries
Insurance is a critical part of your startup budget. Here are the essential coverages and their typical annual cost ranges:
General Liability Insurance – Protects against customer injuries or property damage.
Estimated Cost: $500 – $2,000/year.
Commercial Property Insurance – Covers your building, brewing equipment, and inventory.
Estimated Cost: $1,000 – $3,000/year.
Equipment Insurance – Protects brewing machinery from breakdowns or damage.
Estimated Cost: $500 – $1,500/year.
Workers’ Compensation – Required if you employ staff; covers workplace injuries.
Estimated Cost: $1,000 – $3,000/year (varies by payroll size).
Commercial Auto Insurance – For delivery vehicles transporting beer to bars or retailers.
Estimated Cost: $1,000 – $2,500/year per vehicle.
Including insurance in your budget ensures compliance with lease agreements and protects your brewery from unexpected financial losses.
Final Thoughts
Starting a brewery requires significant investment, but with proper planning and insurance, you can protect your business and set yourself up for success. At Wexford Insurance, we provide customized coverage for breweries of all sizes.
Contact us today to safeguard your brewery and brew with confidence.