Monthly Archives: March 2014

Another general update on progress and happenings at the Brewery!

It seems like I have been knee deep in the process of starting a brewery, that I have neglected to update the readers on our progress.  From the brewhouse to tanks, and forklifts to logos, there is a lot happening at the brewery, and the level of activity seems to have picked up.  In addition to the office and administrative items that have kept us busy for the past 6 months, you can add in the retrofit of our space to things to do.

For starters, Iain Hill has officially left his position at Yaletown Brewing Company to join operations full time.  For several months Iain has been burning the midnight oil after a long day at the office, and he now has the ability to focus on starting our brewery, which is amazing on many levels.  Finding a brewery (and in my case a business partner and equal) is a huge step in the process of starting a brewery.  Its one thing to be a home brewer like many of you.  You understand some of the components of brewing beer, and you have experience with the lingo and terminology, but its entirely another thing to be in charge of a commercial brewery.  With a qualified partner, the beer we make will be of good enough quality that it will offer us a chance to have success.  If you want to follow Iain Hill on twitter, his account can be found here.

We have sent out tenders for our warehouse to electrical and mechanical contractors.  This has been a bit of a process for us.  When you apply for building permit, you have a sense of where things are going to go, and this is reflected in the drawings your architect prepares for you.  However, when it comes to the technical details of these aspects of the brewery, you engage with mechanical and electrical engineers to complete these drawings.  Getting the details correct on these drawings is critical to getting accurate quotes from trades people that will be doing the work.  If you hand over a set of drawings for tender and they change immensely, you will get dinged for additional expenses throughout the build-out phase.  My advice would be to push ahead with these drawings at every opportunity, so that when you get your building permit, you are not at a standstill like we were.  We will literally lose a month from our possible start-date as we were not ready the next step.

Doing things in the brewery that don’t need a permit is also something that is very important.  We have decided to paint the inside walls of the brewery with a marine grade paint, to keep mould from becoming a problem.  Well painting a house is a job, but painting 6 metre high walls in a brewhouse that is 9,000 square feet is a little bigger of a job.  This is something that we really should have started earlier as well, but given the delays in getting started with the rest of the work, we will have this finished within the week.  Once the walls are painted we can move forward with cutting floors open, and getting our brewery ready for building.

If you ever need advice on buying a forklift, I can tell you that we had a great experience and I would love to share it with you.  At the end of the day, when you are spending so much money on everything at a brewery, trying to save money on items like forklifts can go a long way.  We managed to save about $5,000 against our budget, and while that will get sucked up quickly elsewhere, the point is you need to save money when and where you can.  We had a budget of $10,000 for a forklift, charger, and man cage (for doing work on the ceiling of the brewery).  After about 30 hours of work, research and seeing what the options were, we purchased an electric forklift that will hopefully meet all our needs for now and into the future.  Sure we might have to spend money on repairs, but we are not going to lose much money on this machine as it already has depreciated to nothing.  If you are looking; side shift, electric drive, 40 inch forks, 180 inch lift height, and a smart charger that is compatible with your machine are all must haves.

In terms of the voting on our logo, it looks the voting has ended up at 50-50!  After all that, we have a divided opinion on what we should be going ahead with!  As such, Iain and I are going to meet and make a decision on what we should move forward with.  We look forward to making a decision so that we can move forward with other aspects of our marketing.

Our landing page for the website should be up and running in about a week.  I know there has been delays (like everything it seems), but we hope to have an interesting landing page that will continue with giving everyone a sneak peak into starting a brewery and our operations.  More to come on that front shortly.

I have found an individual that has helped me with odd jobs at the brewery so far, and I would recommend to anyone else who is looking at starting a brewery, to find someone with some technical background in general labour … what I mean is find someone to help you that can do some electrical, plumbing, painting, heavy lifting, etc.  We have found a man to help us, and he has been a saviour for us.

From an equipment standpoint, we have ordered our brewhouse and we are very close to ordering our packaging equipment and conditioning/fermenting tanks.  We are trying to determine exactly packaging equipment we want, as the choice we make will help determine our entry point into the market.  If you go cans, you come across as more of a middle of the road company. If you go with bigger bottles (650ml) then you come across as more of a craft operation.  So we are wrestling with what exactly to do, and I hope we can make a decision in the next week.  As for the tanks, we are grinding the suppliers on their price, and hope to get our ideal package within our budget.  We think it is better to go a little bit smaller on the tank farm, knowing that you may run out of capacity quickly, than spend all your money on equipment and have very little left over for everything else.

Thats it for now.  Should there be anything else you want an update on, as always, let me know and I will include it for my next blog.

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Success … Building Permit has been Granted!

For the past week I have had my head down, working on our accounting and driving ahead a bunch of projects that are in need to time and attention.  So this blog has been something that I keep thinking about, but couldn’t find the time or the energy to put towards it.  While we were busy with our heads down, we received some great news:  Our building permit was approved and we are good to start trucking ahead with construction.

This sounds great on paper, only we thought the process of getting a permit would take a little longer, so we don’t have all our sub-trades in place and need to refine a few more of our plans.  Given this, we hope that construction will begin on April 1st, so that we can be open sometime in very late summer or very early fall.

My advice to people who are going through the process of starting a brewery, or any other business for that matter is this:  Don’t take your foot off the gas pedal.  When you lose focus and when you lose the drive to push things ahead, small delays can have a cascade effect on the process.  For example, our dithering on a few specifics around the brewery and tasting room, which didn’t seem like huge delays at the time, effected a bunch of other items.  It delayed our architects in making the changes, it delayed our contractor in getting quotes, and it delayed next steps in the process.  It ended up that a couple days delay in one decision ended up delaying the process by 2 weeks.  Arghh!

To be honest, I thought I would feel more happy about getting our building permit, and while this does put a smile on my face it doesn’t make me jump up and down like getting our development permit did.  I guess the difference is that we knew we were going to get the building permit, it was just a matter of when.  I also think that we just have so much work to do, its hard to take a breath to give each other a high five.

Anyhow, we will keep you up to speed on some of the next steps with our brewery in the coming weeks ahead.  Lots of activity and hopefully we can drive this project ahead to start operations sooner rather than later.

The End of One Dream …

How do you thank someone for the ultimate sacrifice?  OK, we aren’t talking giving up a kidney, or sacrificing their own life in the line of fire, but my amazing wife has provided me with the means to start this brewery.  Thats right, starting this brewery is taking sacrifices from more than just myself and my business partner.

Let me give you a little context.  There is nothing my wife has wanted more over the past 5 years than to build a home.  A place to have memories, raise our family and get away from the daily grind that is our life.  We both envisioned the process as an arduous one, but at the end of it, you would have a home that you helped bring together.  It was her dream, and we worked hard to make it happen.  We bought a piece of land about 3 years ago with the dream of building our home …

Let me take a further step back.  About 10 years ago, I started talking to friends and family about the dream of opening a brewery.  Thats right, this has been a 10 year process for me.  In a way I have become the definition of patience (and for anyone that knows me, this in itself is a little hard to believe, but thats another story).  For the first 4 years, it was a lot of business planning, sampling, and more planning.  The dream seemed very far away  About 6 years ago, I started to get more serious and decided to get my real estate licence, allowing me the time to get out of my full time job, and focus a little more time on my brewery, as being a Realtor allows for a healthy dose of flexibility.  I ended up parting ways with my job in 2011, and have been focusing on real estate and starting a brewery for the past 3 years.  As time has moved on, I have kept getting more and more serious.

So back to 3 years ago, when my wife and I purchased a property for developing.  We purchased knowing that my brewery dream may or may not come together (it has been 7 years that I was talking about it with no progress after all), so we just went with it, and hoped things would work out.  As you can imagine, we followed down both paths simultaneously and didn’t try to overthink much of anything.  My wife hoped that things would work out with her dream of building a house, while I hoped that things would work out with my dream of starting a craft brewery.

You can imagine where this headed.  About 6 months ago we subdivided our property and were finally in a position to think about building our dream home on one lot and selling the other.  This was a moment that we waited for about 20 months to happen, so it was a great moment for our family.  It was about the same time that things with our landlord got very serious for the brewery space.  We made an offer on our commercial space for the brewery, and we were finally in a negotiation with a landlord.  You see, we had tried unsuccessfully for 12 months to lease spaces, and never got to the point of actually being in negotiations.  The process with this landlord was going so well that we applied for a development permit (what you need to get to be allowed to produce beer … a key step to say the least) with the City of Vancouver before we had a lease in place.

Not knowing how all this would go, we continued forward with the dream of building on our property.  We continued to meet with an architect, and we moved forward house plans to the point where we were ready to build.  We just needed to sell one of the lots and we were ready to start building on the other lot.  Selling anything in the last 4 months of 2013 was difficult, especially a property like ours.

Fast forward to very early January 2014.  We finally found a dance partner for one of our properties.  This meant we could sell a property and begin building on the other.  However, it was also in January that we knew we were going to sign our lease.  So it meant my 2 worlds were colliding and we had no certainty with which to make a decision.  Essentially, do we move forward with selling only one property and hope that we can find a way to finance building a house on the other property, all the while, financing a significant part of the brewery.  If you have been following my blog, you know that I always think Cash is King, so it would be so tough to do both.

At the end of the day, after a lot of tears, arguing, and selfishness to be completely honest, my wife and I agreed to follow the dream of starting a brewery.  The time and financial burden of building a home, in addition to the time and financial burden of starting a brewery proved too much for us to handle.  So we decided to sell both halves of our property instead of just one half, allowing our family to focus on my dream, and bringing to the end another dream.

Think about it from the standpoint of my wife.  Every time I talk about the brewery, I stay up late or get out of bed early, every time we write a cheque to pay for something, every time some asks how things are coming along, and every time I come home to our rental house, my dream is at the expense of satisfaction in her life.  People ask me about the brewery and I get excited, and when people ask Deanne about building a house, she just sees my dream, at the expense of hers.  When people ask what has been the hardest thing about starting a brewery, it is this.

So, to come full circle, I hope one day to be a brewery owner and build my wife a house of her dreams.  It might be a few years before his happens, but I do plan on returning the favour to her for the sacrifices she has made for me.  I can’t think of a more selfless person, and for this I am forever indebted to her.

My amazing wife has given up her dream of building a home on our property, allowing me to start a craft brewery.  Her sacrifice is the ultimate and one that will allow me to stat a craft brewery.

My amazing wife has given up her dream of building a home on our property, allowing me to start a craft brewery. Her sacrifice is the ultimate and one that will allow me to stat a craft brewery.

New Breweries Opening In BC

We are set to be part of an amazing community.  It is the quality of people in this business that not only encourage new breweries, but also support the current breweries in the market.  People like you to be honest.  You read blogs about beer, you support craft breweries, you tweet about beer, you talk to all your friends about the amazing beers you’ve had, and you travel near and far to taste different beers.

The result of this is to encourage new breweries to open.    In fact, I pulled this graphic from the Brewers Association in the USA to show how the number of breweries has skyrocketed over the past 25 years.

126-Brewery-Count-HR

It makes a person ask the question, how many breweries is the market capable of sustaining?  Trying to guess this is like trying to figure out how much higher real estate prices can go in Vancouver.  So I grabbed the closest comparison to beer …. wine!  It made me wonder how many wineries are there now.  I found this graphic from wines and vines and it shows the number of wineries in the USA over the past few years.  As you can see, there are more than 7,500 wineries in the USA, which is about 5,000 more than the total number of breweries.

Winneries in USA

So when I see this, it makes me feel like there is a lot of room in the market for more breweries right?!?!  If there are 5,000 more wineries than there are breweries, then there must be room for anther 2,500 to 4,000 breweries???

So what does all this mean to the number of breweries in BC?  Well, the most excellent beer writer and blogger Jan Zeschky of the Province Newspaper recently published an article on new Breweries opening in 2014 in this great province.  Click here for the full article.  He identifies 19 new breweries that are set to open this year, which will surely be a record for British Columbia.

We are set to be part of this amazing community, and when I think pragmatically about things, I believe there is a lot of room for all the breweries opening up, and more.  So if you dare dream about opening a brewery, or any other business for that matter, do it.  Life is too short to put it off any longer.

I am living proof (and so is this blog) that your dreams can become reality, so long as you have a plan, you spend the time needed, and you surround yourself with amazing people.  Of course, there are a few other details that need to go along with these big picture things, but don’t let them get in the way of following a passion.

So bring on the 19 new breweries this year, and I say bring on another 19 next year and 19 more the year after that.  Lets fill the marketplace in BC with as wide a variety of breweries as possible.  I also hope that these breweries continue to do wild and amazing things with the beer they make.  Lets push the boundaries, lets challenge the ordinary and lets realize the potential that is within each and every brewery in this province.