With craft breweries continuing to grow in popularity, the UK’s thriving beer and spirits industry presents an exciting opportunity for those passionate about brewing. However, turning that passion into a profitable business requires careful planning and preparation.
From meeting licensing and legal requirements to securing the right insurance, setting up a microbrewery involves multiple steps. Ensuring your business is fully protected from day one will give you peace of mind as you enter a fast-growing and competitive industry.
At Premierline, we understand the unique risks breweries face and offer specialist brewery and distillery insurance designed to protect your business against common industry challenges. Whether you’re just starting out or expanding an existing brewery, having comprehensive cover in place can help safeguard your investment and keep operations running smoothly.
If you’re thinking of starting your own brewery business, here are the key steps you’ll need to follow…
The essentials of setting up a microbrewery
A microbrewery is a small, independent brewery that produces speciality beers using traditional methods and unique ingredients. Unlike large-scale breweries that mass-produce millions of barrels annually, microbreweries typically manufacture fewer than 15,000 barrels per year.
To successfully launch a microbrewery, you’ll need to:
- Create a Business Plan – Define your niche, identify your target audience, and develop a growth strategy.
- Find the Right Premises – Choose a location that meets production and licensing requirements, with space for a taproom if you plan to serve drinks on-site.
- Purchase Brewery Equipment – Invest in essential brewing equipment such as fermentation tanks, kegs, boilers, and cooling systems.
- Source Quality Ingredients – Secure reliable suppliers for hops, barley, yeast, and water, as well as any speciality ingredients for unique brews.
- Build a Skilled Team – Hire professionals in brewing, marketing, and sales to ensure smooth operations and brand growth.
Securing the right insurance for your brewery
Running a brewery comes with specific risks, from equipment damage to product contamination and liability claims. Having the right insurance in place ensures that unforeseen issues don’t result in significant financial losses.
A specialist brewery insurance package should include:
- Cover for brewing equipment and stock
- Liability protection for taproom visitors and product sales
- Business interruption insurance to cover lost income due to unexpected disruptions
- Loss of licence cover if your alcohol licence is revoked for reasons beyond your control
- Equipment breakdown cover to protect against production delays
With our specialist brewery insurance, you can have peace of mind knowing that your business is fully protected against industry-specific risks. This allows you to focus on growth and innovation, without the worry of unexpected setbacks.
Licensing and legal requirements to start a brewery
Do you need a licence to brew beer? Yes! Under the Alcohol Licensing Act 2003, all microbreweries must secure multiple licences to operate legally. These include:
- Premises Licence – Required for brewing, storing, and selling alcohol on-site.
- Personal Licences – Needed by staff responsible for selling alcohol.
- Brewery Tour Licence – If you plan to offer guided tastings or tours.
You’ll also need to comply with health and safety regulations, environmental standards, and food hygiene laws to ensure your brewery operates safely and legally.
How long does it take to brew beer?
It’s good to know how long it could take to brew beer, to help you manage your cash flow when starting a brewery. On average, it takes four weeks to brew beer in a microbrewery. This includes:
- Brewing & Fermentation – Allowing yeast to convert sugars into alcohol
- Conditioning – Letting the beer develop flavour and carbonation
- Packaging – Bottling or canning the final product
How much does it cost to start a brewery?
The cost of opening a brewery varies based on location, scale, and production capacity. However, here are some general estimates for key expenses you can expect when starting out:
Equipment – Expect to spend around £40,000 on mash tuns, fermentation tanks, cooling systems, and cleaning equipment. Pre-owned equipment can reduce costs, but extra maintenance costs should be factored in.
Premises Costs – Rent or purchase prices vary by location, so choose a site that meets both operational and licensing needs, without going over your budget.
Licensing & Permits – A premises licence costs around £2,000, with personal licences at £60 per staff member. Permit applications cost £635, with an annual renewal fee of £350.
Marketing & Branding – Start-up breweries typically allocate 12-20% of gross revenue to marketing in the first few years to build brand awareness. If you’re operating on a small scale though, like in a microbrewery, between 7-12% is more typical.
Funding Options – Look into loans, grants, and investment funds designed to support small businesses in the food and drink sector, to help you get started with your microbrewery endeavour.
Marketing and growing your brewery
Once your brewery is set up, attracting customers is essential. A strong marketing strategy will accelerate your growth and boost brand recognition. Key tactics include:
Branding & Packaging – Design eye-catching labels and create a compelling brand story.
Social Media & Local Events – Engage your community and build a loyal following.
Retail & Distribution Partnerships – Work with pubs, restaurants, and retailers to expand your reach.
Taproom, Tours & Tastings – Increase revenue with direct-to-consumer experiences.
Protecting your investment with brewery insurance
Starting a brewery requires passion, dedication, and financial investment, which makes protecting your business absolutely essential.
Our specialist brewery insurance ensures that your finances, equipment, and operations are fully protected, allowing you to brew with confidence.
Contact our insurance experts today to create the perfect brewery insurance package for your business. Cheers to your success!
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Tags: brewery, pub
