Craft brewers like you are all about sharing a personal experience with others.
You got in the business because of your passion for beer-the taste, the history, and the connections it can form. You love the complexity of creating a unique and nuanced brew and enjoy the storytelling of its creation. Your beer tells so much about you, and you're proud of every sip of your crisp, cold pint.
However, today's customers are often asking for healthier alternatives to beer with fewer calories and carbs and gluten-free options. It's a conundrum: you want to keep your customers coming back and spreading the word, but they want new brewery products.
How, then, can a craft brewer like yourself stay competitive in a shifting beverage market? In short, expand into the latest beverage trends: hard seltzers and ciders.
Move Over, Beer: Make Room In Your Brewery for New Brewery Products
What's different about brewing hard seltzer and cider versus beer?
Unlike beer brewing, where you start with malted barley or malt extract, hops, water, and yeast to make a wort, hard seltzer starts with a brew of sugar, water, and yeast. Hard cider also has its own brewing process: sugar, fresh apple juice, and yeast.
The good news about expanding into new brewery products like hard seltzer and cider is that:
- You probably already have the equipment you need
- The ingredients are inexpensive
- It doesn't take long to make, and you follow many similar steps:
- Fermenting
- Checking pH levels
- Flavoring
- Adding carbonization
- Bottling
- You can still give it your own personal DNA and flavor profile
- It still represents the quality of your brand and what your customers expect from you
As you can see from these similar steps, creating new brewery products isn't that different from brewing beer. Therefore, it doesn't need significant capital investment to experiment with and launch these new beverages.
The Pros of Showing Your Craft Brewing Creativity
Even though you're a beer enthusiast at heart, you're not leaving your brewing roots behind when you create hard ciders or seltzers. You're still able to give your new beverages your personal touch with as much involvement as you have with your beer.
Beyond personal satisfaction are practical and financial considerations. For example, now your tasting rooms have more options for non-beer drinkers who come with beer drinkers or those who want low-carb or gluten-free drinks. Since tasting rooms are often a significant source of profit for brewers, they can bolster your finances.
You're expanding your market and giving customers what they want. And, for the most part, it's easy to get started with new brewery products. There is just one thing to remember before you stock up on sugar and yeast or stop by your local apple orchard: make sure that your insurance covers you from any new risks.
Do an Insurance Double-Check
Although the processes are similar between these brews, Philadelphia Insurance Companies (PHLY) recommends that you schedule a call with your insurance agent and loop them into your plans.
Your agent can help you with a checklist of potential exposures you may not realize, such as:
- Equipment Coverage: While you can probably use the same equipment, you'll want to make sure that you can. That way, you won't negate any warranty or encounter any insurance risk.
- Partnerships: If you are working with another brewery or distillery to develop or research new products, white-labeling someone else's beverage, or using a bottling company, you'll want contracts to protect you from liability.
- Verification: Although you probably have in place what the TTB (Alcohol and Tobacco Tax and Trade Bureau) requires, it's wise to check if your new brews need to meet any additional stipulations.
A company like PHLY has experience covering the unique needs of craft breweries and distilleries across the country. You can read more about our coverage here or request more information and a quote from a PHLY representative.
So if you're ready to expand your brewery's beverages and take advantage of changing customer tastes for healthier alternatives, enjoy the adventure-and the opportunity!
Just contact your broker to ensure you have all the ingredients for a successful, risk-free new brew.
