My adventure of opening a brewery in Chicago

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Demon

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About two years ago, I got the crazy idea that I should open a brewery. I figured it would be helpful for others considering this crazy idea to see what I've gone through. From legal stuff, to money saving tips on equipment, I'll post it all in this thread. If you have a question about anything, feel free to post here and I'll do my best to answer it.

My brewery is SlapShot Brewing Company and is in the Little Village neighborhood of Chicago. We have a 4000sq ft building running a 3.5bbl brewhouse.

Building advice:
Find a good real estate broker, preferably one familiar with industrial buildings and is familiar with floor load and electrical needs. Don't try to negotiate a commercial lease on your own, you will likely not get the best deal you can. Keep in mind, the broker costs you nothing, your new landlord pays their commission.

Equipment:
We got our 3.5bbl brewhouse from Psycho Brew. We weighed a ton of options ranging from pieced together Glacier Tanks systems to high end turnkey setups from Portland Kettle Works. After talking to several friends at other breweries using Psycho Brew systems, we felt it was the best bang for the buck.

We went back and forth on doing plastic fermenters vs jacketed stainless fermenters. In the end it was decided that stainless fermenters were the right way to go. Easier to clean, easier temp control, longer life and they look pretty cool. Our tanks are 7bbl and came from PBST. I could not be happier with the quality for the price.

Glycol systems are expensive, our quotes ranged from 8-12k. Instead we have two 3/4hp glycol line chillers from Foxx Equipment. Each chiller can easily handle up to two 15bbl fermenters at a cost of $1800. This allows us to save some money now and eventually do a bigger "proper" setup when the funds are available.

Refrigeration. Craigslist and restaurant auctions. Make those two places your new best friends. New walkin coolers cost 10k+. We bought our 12x20 cooler for $2500 on craigslist and it was only 2 years old.

If you plan on draft sales, you need kegs. Search for deals on probrewer.com, they come up all the time. We have a mixture of 75 used 1/6bbl kegs and 30 1/2bbl kegs that we lease from Keg Craft at $9/mo/each. Other companies such as Micro Star offer better rates, but you need to be kegging 500bbl a month to qualify.

Licensing:
Federal licensing with TTB can be a crap shoot. You can get approved without a single phone call or email in about 50 days like us, or 180 days of delays like a friend of mine. It's all luck of the draw on who your file gets assigned to.

Avoiding running out or money:
Make friends with other brewers, fast! They will be your best resource for help if you need it. Our friends at Urban Legend Brewing right down the street from my house offered to let us install one of our fermenters at their place and contract brew while we were still in construction/licensing. This helped out huge. It allowed us to get money coming in when we needed it most.

Sell shirts/hats/whatever. You'll run into tons of family and friends that want to help out and give you money. I hate the idea of taking money from people, so we got shirts and hats made. This way people could support us by buying merchandise. It's not a huge revenue stream, but it helps.



Hope this info can help any other people looking to open a brewery. Feel free to post up any questions, whether it's about my brewery or questions on starting one.

Cheers!

Steve

facebook.com/slapshotbrewing
Twitter - @SlapShotBrewing
 
3.5bbl Psycho Brew setup...
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Right now we are draft only at The Beer Bistro, The Beer Bistro North, Warrens Ale House, Beer House in Lombard and Urban Legend's taproom.

Next week we are adding another 4 accounts in the city and 2 in the suburbs.

22oz bottles and 16oz cans will be out in December.
 
Congrats and thanks for posting. Not something thats in my fufure but I'm sure some will find this useful. I wish you success.
 
Best of luck man! I love seeing new brewers coming out and the thought of getting to try some other people's creations!
 
Steve, how are you dealing with cleaning the Mash Tuns? since there are no manway openings, doesn't that add a significant amount of clean up times due simply to the heat and weight?
 
That's the downside of this system, lots of manual labor. I have a scaffold type setup between the mash tuns and wall. Stand on there and scoop out with 32oz stainless grain scoops. After the bulk of the grain is out, pull the false bottom and rinse through the butterfly valve. After that the inside gets scrubbed with 160 degree PBW.

As far as time, the tuns can be emptied and mashing in on batch two in under 15 minutes.
 
You could consider BIAB....and I don't mean the process (full volume, no sparge) but just using custom voile bags (multiple, if necessary, due to weight) to hold the grain to faciliate easy cleanup only, without modifying your brew process at all. You could pick up a 120V overhead winch to lift them after the sparge is done. You could even setup a gantry to move the bags over to the waste bin.

Just a thought!

and thanks for posting; I'll be watching the thread. I think of going nano from time to time as a side business with just a couple choice accounts. I'm fortunate enough to have 3k square feet of commercial space at my disposal. $50/month rent to cover property taxes goes a long way to monetizing the hobby.
 
The grain out process on this system is a lot simpler than it appears. Manways would be way more hassle than it's worth. Manways simply add another port to scoop grain from and on this size would not be a benefit.

With that said though, we do have a fabricator working on a tip dump type setup that is independent of the brew frame. Basically it gets positioned in front of the mash tun, latches to the handles and tips.
 
The grain out process on this system is a lot simpler than it appears. Manways would be way more hassle than it's worth. Manways simply add another port to scoop grain from and on this size would not be a benefit.

With that said though, we do have a fabricator working on a tip dump type setup that is independent of the brew frame. Basically it gets positioned in front of the mash tun, latches to the handles and tips.

I agree the size of your MT would make it just a hassle for a manway, just most of the systems I've been looking at have been 3 bbl or larger MT all have a manway. I was looking at their 5 bbl system and just trying to figure out logistics for fast cleaning.
 
Hey, congratulations, been following you guys on FB and Tim at Urban is a great friend of mine! SOunds like ya'll are off and running in a great way!

Looking forward to sampling some beers soon! Cheers!
 
The last couple weeks have been chaotic. We sold our 3.5bbl PsychoBrew system and have been installing our new 7bbl brewhouse. With a couple 15bbl fermenters on the way we will be ramping up capacity pretty rapidly.
 
Great work! I have heard good things about you guys so far. I am actually thinking about buying a place in Little Village. I joked to my wife that we need to move to a neighborhood with a brewery!
 
The last couple weeks have been chaotic. We sold our 3.5bbl PsychoBrew system and have been installing our new 7bbl brewhouse. With a couple 15bbl fermenters on the way we will be ramping up capacity pretty rapidly.

May I ask where you got your 7bbl brewhouse from?

And regarding the 3.5bbl system from PsychoBrew, I don't see it listed on the website, maybe I am missing something?
 
...Glycol systems are expensive, our quotes ranged from 8-12k. Instead we have two 3/4hp glycol line chillers from Foxx Equipment. Each chiller can easily handle up to two 15bbl fermenters at a cost of $1800. This allows us to save some money now and eventually do a bigger "proper" setup when the funds are available...

Congrat's on your success!
Are you still keeping the line chillers for the new setup?
and also what is the difference between a "proper" glycol chiller and one for line chilling, is it just the line chillers are smaller? And the proper systems aren't really setup to do smaller sized fermenters?
Cheers:mug:
 
May I ask where you got your 7bbl brewhouse from?

And regarding the 3.5bbl system from PsychoBrew, I don't see it listed on the website, maybe I am missing something?

The 7bbl is pieced together with equipment originally intended for wine making and is electrically fired, I'll post some pictures later this week.

The 3.5bbl system was sold within an hour of deciding to let it go. It's staying in Chicago and is going to Bucket List Brewing.
 
Congrat's on your success!
Are you still keeping the line chillers for the new setup?
and also what is the difference between a "proper" glycol chiller and one for line chilling, is it just the line chillers are smaller? And the proper systems aren't really setup to do smaller sized fermenters?
Cheers:mug:

The "proper" setups have much larger glycol baths and can support as many tanks as you want with a single setup. Eventually we will buy one, but for now the line chillers will work fine.

The line chillers aren't a very good option at anything larger than 15bbl fermenters. With the new fermenters that are coming we will have two chillers, each controlling one 15bbl and one 7bbl tank.
 
Tried Honey your blonde and 1926 at my local brew shop, Chicago Brew Werks. Excellent beers!
 
Do you self distribute or do you use/plan to use a distributor in the future? Is it difficult to acquire accounts in a market like Chicago? Thanks for posting this thread, it has been interesting to follow. Lots of good info!
 
We'll be self distributing until end of first quarter of 2014. Acquiring accounts has been fairly easy. There are a ton of bars in Chicago that specialize in craft beer and love local beer. As we increase production it will surely be more difficult, but right now we are sold out as soon as it's kegged.
 
I hope these questions aren't too prying. Did you have to get a business loan, or did you already have enough money for startup? Also, how long did it take before you started generating a profit?
 
No loans, I hated the idea of starting a small business with debt. As far as profit, we'll be cash flow positive in January and paying two full time salaries in March. If we didn't have plans to buy more equipment, most of the original investment could be repaid at the end of 2014, but I'd rather buy more tanks and continue to grow.
 
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