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Quebec

Hastings County
Lennox &
Addington County

Bancroft

MONTREAL

OTTAWA

Frontenac County
Harrowsmith

Prince Edward County

Ontario

Napanee

Picton

iCraft Brew | Why the FAB Region?

TORONTO

Wolfe
Island

New York

Lake Ontario

Why the FAB Region?
The FAB (Food & Beverage) Region is a unique economic development
partnership between the Counties of Hastings, Lennox & Addington,
Prince Edward and the Frontenac Community Futures
Development Corporation. The FAB Region offers artisanal
entrepreneurs an ideal location to start a craft brewing operation,
primarily for its low degree of competition, its relatively untapped
market and its close proximity to major centres within North America
(Toronto, Ottawa, Montreal & the U.S. Border). The FAB Region also
offers entrepreneurs an array of locally-grown brewing ingredients
and the possibility of joint ventures with local artisan food producers.

Location & Market

In 2012, 6.7-million hectolitres of beer were sold in Ontario making
our province the largest market for beer in Canada1. Given the

2

Howe
Island

http://www.brewstats.ca/annual/sales-by-region/2012

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strong market growth, as well as an increased interest in artisan
products, the “100 mile diet” and other “buy-local” movements,
there is certainly a market opportunity to open a craft brewery
within the FAB Region.
In comparison to other regions, such as the Greater Toronto
Area, the FAB Region offers a much lower degree of
competition and an under-penetrated market. There are
currently only three breweries that are in operation within the
region: Church-Key Brewing Co., Gateway Brewing Co. and
Barley Days Brewery. In addition to the three breweries
mentioned, there are two other operations, including one near
Bancroft and MacKinnon Brewing near Bath, that are currently
in the launching stages.

We’d be happy to help! iCraft Brew | Why the FAB Region? •R  esidents . locally-grown ingredients to choose from. For a listing of funding programs. Tourists may also be more easily motivated by the perceived scarcity of the craft beer only being available within the FAB Region. such as a specialty beer and cheese that should be enjoyed together or a brew pub that serves up fresh local fare and craft beer that perfectly complement one another. spices and natural ingredients. such as cheese makers. To learn more about some of the FAB Region’s local artisan food producers please visit us online at www. The types of consumers that would be targeted within this region would be split into two broad categories: •T  ourists . please feel free to contact the FAB Region. distillery and many other specialty foods and beverages. Local Ingredients & Joint Ventures The FAB Region is home to a number of different farmers who offer craft brewers a wide selection of fresh. vegetables. To learn more about some of the locally grown ingredients available within the FAB Region. Artisan food producers offer many opportunities for craft brewers in terms of the possibility of a joint venture. provincial and municipal levels of government all offer Ontario businesses many types of support programs and incentives to assist with successful business start-ups and to help grow Ontario’s economy. to the chef’s preference to serve locally sourced foods and to specialty retailers interested in supporting local and regional artisan food producers. wineries.A locally crafted beer would appeal to residents because they appreciate the idea of buying locally-produced goods and have a desire to support their local economy through “buy-local” type initiatives. now ranking within the top five food trends. 3 .A locally crafted beer would appeal to tourists as they tend to enjoy the experience of eating and drinking locally produced food and beverages to enhance their tourism experience. from younger craft beer enthusiasts to an older generation of baby-boomers and recent retirees. cideries. please contact the FAB Region or download the app at www. including local hops. If you require further assistance with sourcing locally-grown brewing ingredients or connecting with a local supplier.startabrewery. charcuterie producers. The FAB Region is also home to a variety of different artisan food producers. grants and other incentives available to entrepreneurs and Ontario businesses. spring water and a variety of other harvest fruits. The trend speaks to the consumers’ concerns about health and sustainability.ca. please visit: •H  arvest Hastings •C  ounty Grown •L  &A County Harvest •H  ands on Harvest •O  ntario Hops Growers Association (Directory) Artisan foods have gone mainstream in recent years. artisan bakeries.fabregion.ca.Craft beer appeals to a wide demographic of people living within the FAB Region. Government Funding Federal.

For more detailed information or assistance.ca.startabrewery. contact the FAB Region or download the app today at www. “Do I have what it takes to it’s highly recommended that you spend be an entrepreneur?” some time researching & learning the This handbook has been created to assist you in starting your own basics of craft brewing. as well as the brewery and provides some of the information the FAB Region basic principles of business. the next & the types of beer that will be brewed.iCraft Brew | For Your Consideration For Your Consideration Before you define the details of your Getting Started craft brewery. location Once you’ve completed your research and you are and confident enough to move forward. such as its name. has compiled to help you on your journey. comfortable step is to ask yourself and discover. 4 .

65 established beer styles from around the world) beer shopping can be a bit confusing. herbal or spicy characteristics. The following information has been included to help you better identify the different beer styles: •L  ager – A lager is pale. Even though pilsners and lagers are both bottomfermented. though other flavourings such as herbs or fruit may also be included. dry stout and Imperial stout. pale and hazy appearance because of the type of yeasts used. Pale ales may range in colour from golden to deep amber and were named pale ales because they were much lighter in colour than the dark porters and stouts that preceded them. which adds bitterness and acts as a natural preservative. Many retailers offer beers segmented by country. you will find much more flavourful beer with strong. Many of them will have fruity. lightly-carbonated and robust. individual personalities. by brand and. As the name indicates. golden colour and notable hop accent. including Baltic porter. •P  ale Ale – Pale ale is a beer which uses top-fermenting yeast and. roasted malt flavour. porters have a fuller body and a slightly sweeter taste. Pale ales pair perfectly with strongly spiced foods and are one of the world’s major beer styles. Most beer is also flavoured with hops. you can rely on a difference in tastes to help distinguish between the two. stouts and porters are characterized by darkness in colour and rich. dry and refreshing. Porter is ale brewed with a special combination of malts to create a heavier flavour.Here’s the Basics of beer. Pale lagers are the most commonly consumed beers in the world. predominately. then. 5 . iCraft Brew | Here’s the Basics of Beer. crisp. Pale ales are more highly-hopped. The starch and saccharification enzymes are often derived from malted cereal grains. oats or certain sugars. Brewing & the Industry Beer is an alcoholic beverage produced by the saccharification of starch and fermentation of the resulting sugar. •P  ilsner – Pilsners have a familiar. most commonly malted barley and malted wheat. aroma and colour. Brewing & the Industry What is beer? What kinds of beer are there? With the wide variety of beer styles available today (approx. a wheat beer is brewed with a large proportion of wheat and malted barley. To complement this heavier flavour. Wheat beer is usually top-fermented and has a wide-range of flavours as a number of spices are used in the brewing process. Ales use top-fermenting yeasts that do not require the refrigeration that other yeasts do. bottom-fermenting yeast and is fermented for a much longer period and at a lower temperature than ales. •W  heat Beer – Wheat beer often has an unfiltered. •A  le – In ales. •P  orters & Stouts – Dry or sweet. Lager yeast is a cool. by style — making it almost impossible to shop for a specific style of beer. pale malt. flavoured with roasted malt barley. There are a number of variations of porters and stouts.

How is beer made? The key ingredients required to brew craft beer are simple: topquality malting barley.iCraft Brew | Here’s the Basics of Beer. To brew this type of beverage.5% alcohol-by-volume is considered a nonalcoholic beverage. hops and natural flavouring to give the beer special character. •N  ear Beer – In most provinces. While most fruit beer is ale. Brewing is a natural process. In order to allow for the fruit flavour to come through nicely.6% – 4% alcohol-by-volume and an extra-light beer contains less than 2. A light beer in Canada contains 2. allowing craft brewers to use their skill and knowledge to guide the process along.5% alcohol-by-volume. •F  ruit / Vegetable / Spice Beer – In recent years. it does not carry much of the ale character. a beer with an alcohol content of less than 0. the purest water. real fruit or vegetables to the brewing process in order to create a wide-variety of new beer. Brewing & the Industry 6 What kinds of beer are there? (cont’d) •L  ight & Extra-Light Beer – Light and extra-light beer is brewed in a similar fashion to ale and lager but is lower in alcohol content and contains fewer calories. a brewer can either use a very short fermentation cycle or produce a regular strength beer and then remove some or all of the alcohol. in many cases. the malt’s flavour is not dominant and results in a low bitterness level to the beer. special yeasts. brewers have revisited a past tradition of adding flavour and. .

female flowers of the hop vine that are harvested each Fall and dried for use in brewing. There are many kinds of yeasts. it proceeds to another vessel where the hops are then removed and the wort is clarified. the yeast may multiply sixfold. Step 3: Lautering Mash The mash is transferred to a straining or lautering vessel. germinate (sprout). then. flavour and bitterness to the final product. this young beer is stored cold for 1–3 weeks (or more) and then filtered to achieve clarity before it’s ready for bottling or racking into kegs. When the fermentation is complete. green-coloured. dry or roast it to create what’s called “brewers malt.How it’s Made Step 1: Choosing Malt Aside from fresh water. 7 . the yeast is removed. the liquid is separated from the husks as hot water is sparged or sprayed on top of the grains to rinse out as much of the sugary extract as possible. The clear. Hops are the pinecone-shaped. Hops also act as a natural preservative in the beer. the liquid is now called beer. Hops are then added at various times during the boil. Craft brewers can select many different varieties of hops. one adding a characteristic aroma.startabrewery. Fermentation lasts about 7–10 days and. purified water and through a carefully-controlled process. The crushed malt or grist is mixed with heated. the natural malt enzymes in this “mash” break down the starch into sugar. each Step 5: Hop Separation & Cooling After the wort has been boiled and infused with the aromatic flavour of the hops.ca. in that time. There. contact the FAB Region or download the app today at www. Step 6: Fermentation The cool wort is moved to the fermenting vessels and yeast is added. each imparting its own subtle flavour characteristics to the beer.” Step 4: Boiling & Hopping The wort gets collected in a copper or stainless steel kettle and boiled. At this stage of its production. single-cell organism that converts the sugar in the wort to carbon-dioxide and alcohol. to allow these husks to act as a filter bed later in the process. Yeast is a living. For more detailed information or assistance. This sugar solution is called “wort. iCraft Brew | How It’s Made Step 2: Mashing Malt Once at the brewery. the malt is coarsely crushed or milled to expose its starchy core but keep its husks whole. Malting companies take the barley and soak. hopped wort is then cooled to room temperature or lowered in preparation for yeast addition. Step 7: Cellars Finally. the main ingredient in beer is barley.” Craft brewers can choose from several varieties to give their beer a particular colour and flavour.

. multi-national operations. Some commonly used descriptions of breweries are: iCraft Brew | What Kinds of Brewing Companies Are There? 8 •C  raft Brewery / Microbrewery – The term craft brewery was chosen to replace microbrewery as the segment began to grow several years ago. Instead. where a person can brew and package beer for personal consumption or to be given away without charge or for commercial use / sale. •N  anobrewery – A nanobrewery (or picobrewery) is a brewery that produces less than 3. Certification to the Organic Production System Standards is mandatory for all organic products being used in inter-provincial and international trade and for products bearing the “Canada Organic” logo. This is the most common brewery for new start-ups because the specific processes that go into the beer are already familiar to the brewer. • B rew Pub – A brew pub is a restaurant-brewery that sells 25 per cent or more of its beer on-site. the brewery owner contracts its production out to an existing brewery. annually. Capitalizing on Canadian consumers’ growing desire for organic foods and beverages that are environmentallyfriendly. which is marketed as a high-quality product and produced in a way that encourages sustainable agriculture. Sometimes. •O  rganic Brewery – An organic brewery is a brewery using certified. Brew pubs are a popular choice among start-up brewers. A brew pub lets the owner create its signature beer flavours and even build a menu around them. A craft brewery is a brewery that produces less than 400. the owner of an existing restaurant or bar wants to add a unique feature to its existing business. but more than 3. organic ingredients to craft its beer. wheat or hops. which grows its own grapes and uses them to make wine. starts out with a few styles or types of beer. annually.000 hectolitres of beer. • Estate Brewery – An estate brewery is a brewery primarily brewing its beer on a farm and using ingredients grown on the farm. Later. An estate brewery is similar in concept to a vineyard. raw materials and technical advice.What Kinds of Brewing Companies are there? Brewing companies range widely in the volume and variety of beer produced. such as barley. many brewers branch out into more experimental brews.000 hectolitres of beer. A craft brewery. ranging from small breweries to massive. some Canadian breweries have extended the organic food movement to beer. • B rew-On-Premise – A brew-on-premise operation is a commercial establishment providing brewing equipment. • Contract Brewer – A contract brewer doesn’t actually own the brewing facilities with which its beers are brewed.000 hectolitres. generally. Organic beer represents an emerging market that is showing potential for growth.

thousands of people launch their own businesses and enter the challenging world of entrepreneurship. maintained by Mom ‘n’ Hops. iCraft Brew | Preparing For Your Brewery Ontario is now home to well-over 100 craft breweries. Most often. we will look at the steps that must be completed in order to successfully develop your business plan and determine if your craft brewery business idea is worth pursuing. President of the OCB. Many start-ups thrive. it’s due to the fact that the business owners weren’t well prepared. 2 http://www. through funding programs such as the Ontario Craft Brewers Opportunity Fund (OCBOF) and the Ontario Microbrewery Strategy. •O  ntario consumers have a strong interest in local products of premium quality and are increasingly engaging themselves in the ever-growing Craft Beer Movement. people are eager for local alternatives to mainstream products. Hay believes this growing demand is not so much due to different consumers but a different mindset.com/pdf/media_IndustryFactSheet. contract brewers and brew pubs. but unfortunately several will fail within the first five years. The location of each operation can be viewed on the Ontario Brewers Directory Map. they didn’t have any business knowledge or experience and they didn’t conduct any initial research or planning to determine if their business idea was viable.pdf (June 1. representing each of the provinces’ nanobreweries. as well as from the LCBO. given craft brewers a collective voice and is imperative in continuing to move the industry forward. 2013) Every year.ontariocraftbrewers. During this stage of the start-up process. Consumers are beginning to show more support for the “100 mile diet” and other “buy-local” initiatives. According to John Hay. •C  urrent average growth rates across all retail channels are over 10 per cent per year. Just as some people prefer to shop at farmers’ markets because they like to know exactly where their food is coming from. the most important support the industry has been shown has been from Ontario consumers.Ontario’s Craft Brewing Industry Ontario’s craft brewing industry has experienced some significant growth in recent years2: •O  ntario Craft Brewers’ market share for premium priced brands has more than tripled since 2002. through its promotional campaigns “I Love Canada” and “We’ve Got Your Beer. craft breweries. In 2005. a trade association that has allowed the industry to build critical mass.” But. The craft brewing industry has seen its share of support from the Ontario government. some consumers want to know the brewery that crafts their favourite beer. growing from less than 1 per cent to over 3 per cent of the beer volume sold in Ontario and continues to be the fastest growing segment within the LCBO’s beer category. Preparing For Your Brewery 9 . a big boost occurred with the formation of the Ontario Craft Brewers Association (OCB). currently in operation or in the launching stages.

e. sole proprietorship. microbrewery)? •W  hat form of ownership (i. accountant)? Still need? •W  here can I find missing skills (i. lawyer.e. you’re now ready to develop your craft brewery business idea and research and evaluate its potential for success.e. engineer.)? . Some questions you may consider asking yourself while developing your craft brewery business idea include: •W  hat are my reasons / objectives for entering the craft brewing industry? • What type of craft brewing operation (i. etc. Research & Evaluate Now that you have a good understanding of craft brewing.iCraft Brew | Preparing For Your Brewery 10 Develop Your Craft Brewery Idea.e. brew pub. agents)? •W  hat professional resources do I have (i.e. direct. brewmaster. partnership)? •W  hat will I name my craft brewery? •W  here do I want my brewery to be located? What size? •W  hat types of beer do I want to craft? •W  hat are my competitive advantages? •H  ow will I promote my craft beer and brewery? •H  ow do I want to package my beer? •W  ill people be willing to pay for my craft beer? •H  ow does my craft beer fit within the industry? What is the potential for growth? • What financial resources are available? From who? How much? When? •H  ow much will it cost to launch my craft brewery? •W  here will I get my brewing equipment and supplies? •W  hat government regulations is my craft brewery subject to? •W  hat licenses and permits must I obtain? • What type of distribution system will I emply (i.

When you develop your marketing plan the information that you’ve collected during your market research should be used to reinforce any statements that are made. ultimately.ca. The tasks that should be completed when performing your market research include: • Market Trend •D  istribution Channels • Market Growth Rate •K  ey Success Factors • Market Profitability •C  ompetitive Analysis – A competitive analysis is a critical part of your craft brewery’s marketing plan. etc. your chances of receiving financing is pretty slim. as it can help you better understand the industry you are entering and it can help you determine how the current position of the industry could impact your business. dictate the success or failure of your craft brewery. •P  repare Your Marketing Plan – Your marketing plan is an essential part of your overall business plan. both positively and negatively. which is a critical part of the planning process. Entrepreneurs can evaluate the future attractiveness of a market by gaining an understanding of evolving opportunities and threats as they relate to their business’ own strengths and weaknesses. Potential investors and lenders want to see how you plan on making money and without a solid business or marketing plan. Consumer demands impact and direct all aspects of your business’ activities and can. Conducting a competitive analysis will help you to establish what makes your craft brewery and beer unique and. what unique attributes you should promote in order to attract your target market. 11 . Some questions you may ask yourself when completing a competitive analysis include: • What products do they sell? • What types of media do they use to market their products? • How much do your competitors charge for their products? •W  hat are each competitor’s strengths and weaknesses? • What is each competitor’s market share? •W  hat potential threats do your competitors pose? • What are their past & current strategies? •W  hat potential opportunities do they make available for you? • Who are your competitors? •R  esearch Industry Trends – Conducting your own research on the latest industry trends is important.startabrewery. both now and in the future. contact the FAB Region or download the app today at www. The following is an outline of a market analysis: • Market Size (Current & Future) • I ndustry Cost Structure If you’re having some trouble piecing together your market research or preparing your marketing plan. The purpose of your marketing plan is to help you: •A  ssess your consumer needs & develop a suitable product • Convey unique attributes to your target audience •E  stablish suitable distribution channels •D  etermine the most effective ways to promote your business & products •D  etermine the best suited advertising / marketing tools & venues iCraft Brew | Preparing For Your Brewery •M  arket Analysis – The goal of a market analysis is to determine the attractiveness of a market.Analyze Your Market Performing market research will assist you in collecting accurate and specific information about your consumers and competitors. how to best present your product(s) to them. what your consumers want. Conducting a market analysis will also assist you in determining if there is enough of a need in your target marketplace for the product(s) you are offering. therefore.

you can also access start-up money from your personal credit or your RRSP. If you require assistance with preparing your business plan. your financial forecasts and the market you are targeting. whether interest is payable and. The Canadian Bankers Association (CBA) has links to all its member charter banks. Another possible source of financing is the Business Development Bank of Canada (BDC). family. and many entrepreneurs have done it. it increases your chances of success by forcing you to consider every aspect of your business and it serves as an on-going benchmark so that you’re able to gauge your success and plan for future growth. at what rate. •R  emember. • A sk friends.Prepare Your Business Plan What is a business plan & do I need one? A business plan is a written document that describes your business objectives and strategies. Business Plan Tips •T  horoughly review your business plan once it’s complete. your business plan must successfully demonstrate that you understand every aspect of your business and its ability to generate profit.startabrewery. if any. First. including personal lines of credit. Secondly. •D  on’t be afraid to seek advice from professionals. BDC may be able to provide start-up financing. make sure you formalize any loans by way of a promissory note that sets out the amount of the loan. in some cases. associates and mentors to review your business plan. BDC bills itself as a leader in delivering financial and consulting services to small businesses and. •L  ove Money – While borrowing from family and friends is an option.ca. It’s important to understand that taking on the challenge of preparing your business plan isn’t something you’ll want to do all on your own. depending on your situation. so you want it to be as professional as possible. Money often changes relationships and it may not be worth it to involve family and friends in your business venture. Working in partnership with an organization or consultant is a much better way to approach building such a crucial piece of your business. Although. It’s an option you need to think about very carefully. measure your success. short-term loans. • Try to avoid using jargon or industry terms — the person that reads your business plan may not understand your business as well as you do. long-term mortgage loans and. They can provide a number of options. it’s what investors. secure external funding. please contact the FAB Region or download the app today at www. It’ll help you to set realistic and timely goals. particularly. clarify operational requirements and establish reasonable financial forecasts. want to see in order to determine whether you and your business are good risks. SETTING-UP YOUR BREWERY Financing 12 •P  ersonal Assets – You’ll need to use some of your own money for start-up. A promissory note clarifies the agreement for both parties. financial institutions including banks. you’re offering for the loan. •C  onsider hiring a Certified General Accountant to review your pro forma financial statements. iCraft Brew | Setting-Up Your Brewery A well-researched. If you do borrow from family or friends. . if so. if they’ve not been entrepreneurs themselves. you should investigate carefully before taking either of those routes. your business plan represents your craft brewing business. including banks. trust companies and credit unions are the most common source of financing for small businesses. either from your savings or from personal property you can sell. To be considered for funding from investors. •F  inancial Institutions – Aside from your own personal resources. well thought-out business plan is essential for several reasons. loans against inventory or accounts receivable. how and when the loan is to be repaid and what security.

loan guarantees or equity investments to help finance new or existing small businesses that help maintain or create jobs in rural and northern communities. They offer money. •B  arter Exchanges – You can get creative and barter with other companies. •G  overnment & Non-Profit Financing – There are a number of government and non-profit organization financing programs. usually between $10. in the early stages of the business in return for a share in it. Trenval Business Development Corporation. angels provide money. • The Canadian Youth Business Foundation (CYBF) Loan Program provides loans of up to $15.000 to young entrepreneurs between 18 and 34 to help cover start-up costs. As a rule. iCraft Brew | Setting-Up Your Brewery •V  enture Capitalists – Venture capitalists look for businesses with high growth and profit potential. Many of them include valuable hands-on training.ca. Please contact the Frontenac CFDC.000.000 can be used for purchasing leasehold improvements or improving leased property and purchasing or improving new or used equipment.000 on commercial terms through loans.startabrewery. Your lawyer or accountant may be able to help you find an angel. of which no more than $350. Some of the main financing programs include: • The Community Futures Development Corporation in Ontario provides repayable financing of up to $250. You can get a list of venture capitalists from the Canadian Venture Capital & Private Equity Association. 13 . The maximum loan size has increased to $500.000. some of them aimed at specific target groups. planning assistance and mentoring services.000. There are also a number of other government assistance programs available. such as youth and Aboriginals. usually ones in the same field they come from. Typically. venture capital companies won’t look at an opportunity that requires less than $500.000 and $2.•A  ngel Investors – Angel investors are wealthy individuals or groups who invest their own money in promising new businesses. • The Canada Small Business Financing Program makes it easier for small businesses to get loans from financial institutions by sharing the risk with lenders. please feel free to contact the FAB Region for more information or download the app today at www.000. management expertise and connections for a share in the business. offering your products in exchange for anything from advertising to goods. • The Self Employment Assistance Program provides financial support to unemployed people eligible for unemployment assistance to get their businesses up and running. and most prefer a deal size of at least $3 million. PELA CFDC or the CFDC of North & Central Hastings and South Algonquin for more information. you can ask around in your local business community or you can also try the National Angel Organization.

If it is. you will find a way to finance it. Before registering your business name. •F  inally. 14 Government Regulations Registering Your Business (Provincial) If you’ve incorporated your business. executive summary and pro forma financial statements with you and that you know them inside out. or that you’re taking concrete steps to improve it. Registering Your Business (Federal) You may need to register with Canada Revenue Agency to get a Business Number. if it is. •B  e confident about your craft brewery business idea and wellinformed about the brewing industry. You can do a name search at ServiceOntario at the same time as you do your business registration for an additional fee.iCraft Brew | Setting-Up Your Brewery How do I prepare for financing? •M  ake sure you have your business plan. personal asset statement. It’s quite possible you’ll be turned down by a number of potential lenders or investors before finding one that will take that all-important leap of faith. choose a different one. If you truly believe in what you are doing. you’ve already registered your business name. •K  now your credit rating and be able to show that it’s strong. you’ll need to register your business name with the province of Ontario. check to see whether the name you’re planning on registering is already in use. •B  e able to demonstrate your plans for the money you are requesting and why you can be trusted with it. Registration is mandatory if your business . be persistent and stay positive. If you’ve chosen not to incorporate.

Businesses are able to register online. Regulations. Your lawyer or accountant can also tell you whether or not it’s advisable to incorporate federally. iCraft Brew | Setting-Up Your Brewery Having an experienced lawyer or accountant look after your incorporation is helpful. The Alcohol and Gaming Commission of Ontario (AGCO) is responsible for administering the Liquor Licence Act (LL A) that covers most aspects of Ontario’s beverage alcohol laws. Alcohol retailers are not eligible. you will be required to adhere to certain regulations and obtain certain licences and permits from the federal. If you open offices / stores in different provinces. The FAB Region can assist you with determining and obtaining the applicable permits and licences in order to legally operate your craft brewery business. Corporate name protection applies in Ontario and you can open offices / stores within the province. in their excise warehouse. non-duty-paid packaged alcohol or manufactured tobacco and cigars that are not stamped. Federal incorporation also provides corporate name protection across the country. They can make sure your incorporation forms are filled out properly. •E  xcise Warehouse Licence – This license authorizes a person to possess. These laws provide the regulatory requirements for the responsible sale and service of beverage alcohol in the province. 2013): •L  iquor Sales Licence – A sales licence for on-premise sale. you need an Excise Duty Licence. The licence authorizes the person or business entity to carry on specific activities at one or more locations. Corporate income tax or Import / Export account. over the phone or by mail. you can open locations within Ontario and in other provinces and territories across Canada. provincial and municipal levels of government. For more information please contact the Canada Revenue Agency.startabrewery. service and consumption of beverage alcohol. beer or spirits to the Liquor Control Board of Ontario. •E  xcise Duty Licence (Brewery) – To operate a brewery. •F  ederal Incorporation – If you incorporate your business federally. 15 . Payroll. The following is a list of liquor licences issued by the Registrar of Alcohol and Gaming that you must obtain (as of July 1. allows you to do business under a corporate name in Ontario.requires a GST / HST (depending on your total revenue). Licences & Permits In order to successfully and legally operate your craft brewery business.ca. Incorporating Your Business •P  rovincial Incorporation – Incorporating your business. •M  anufacturer’s Licence – A manufacturer’s licence gives authority to a manufacturer to sell its wine. saving you possible problems down the road. provincially. Please also see Endorsements to a Liquor Sales Licence. For more detailed information download the app today at www. Contact your nearest Regional Excise Duty Office for more information. you will be required to register your business in those locations.

• I f it’s a rural location. . get help from a real estate agent who specializes in commercial properties and have your lawyer review your offer before you buy. water supply. septic system.e. otherwise you’ll need to find a suitable building to rent or purchase.)? If you decide to rent. 16 •T  he amount you’re willing to pay for improvements. and the zoning for your type of business •A  vailability of parking & supplier access •C  ost to purchase. if necessary. including: •T  he kind of space you’re looking for •T  he location — its proximity to potential customers and clients. if you’re choosing to start from the ground up. etc. you’ll need to sign a lease with the owner. •T  he amount of rent you’re able to pay and whether it includes utilities and services. does it have the necessary infrastructure (i. If you decide to purchase commercial land or a facility.iCraft Brew | Setting-Up Your Brewery Finding a Location / Building The next step is to find commercial land to build your craft brewery on. if you choose to buy. Commercial tenancies aren’t covered by the same landlord-tenant legislation as residential ones and you need to be much more careful when renting commercial space. There are several things that should be taken into consideration when searching for a location or building for your craft brewery. Make sure your lawyer goes over it carefully and explains it to you before you sign it so that you understand the commitments to which you are agreeing.

including old stable buildings.500 square-feet. kegging / bottling). FAB Region Property Search For more information on available properties please contact the FAB Region or download the app today at www.000 square-feet and no less than 2. has achieved some growth and has proven to be a success. •A  200 Amp service is recommended for the brewery area. • Filtration may be required for municipal water. iCraft Brew | Setting-Up Your Brewery Breweries must be zoned properly and conform to municipal. explore the possibility of purchasing your own building or building your own brewery from the ground up. walkin cooler (if applicable). century-old churches and old dairy farms.ca. It is recommended a water analysis be completed to determine if a filter is required. Water •T  he main water supply to the brewery is recommended to be 60 psi @ 25 GPM. Finish •B  rewery floors should be sealed and resistant to both mild acids and strong alkalines. •R  emember to always use adequate screens to exclude pests.It’s important to understand just exactly how much money and work is involved with building a craft brewery from the ground up. •H  ot and cold hose bibs are required in all brewery spaces and lab areas. steam lines.. light industrial-zoned buildings are good candidates but craft breweries have also been seen in some more unique locations. 17 . All drains should be sized adequately to handle 4–6 barrels of effluent for every 1 barrel of beer produced. etc. •C  heck on what types of drainage systems are required in your area before renting or purchasing a building. The following are just a few requirements and recommendations to keep in mind when searching for a building: • I t’s recommended that 4” channel drains with stainless steel or fiberglass grating are installed. Drainage •F  loor drainage systems that are acceptable for food production operations are required in the brewhouse. there are also certain requirements that the building must meet. fermentation. When searching for a building for your brewery. flex auger. •A  ll floor penetrations for transfer lines. Ceiling Height • It’s recommended to have 20-foot ceilings in the brewhouse area. •D  ue to the nature of the brewing process. •A  ir conditioning is recommended in all brewery spaces. provincial and federal regulations. It’s highly recommended that during the early stages of development you choose to rent a facility.startabrewery. boiler room and any other areas where water and spillage may occur (i. Electrical •T  he building must have commercial wiring. Generally. • I f kegging or bottling will be done.e. Uniform water flow to the brewhouse is critical and should not be affected by water demand elsewhere in the building.e. you aren’t stuck with a building in your possession). Once your business is off the ground. walls and ceilings should be washable and made of materials that will withstand a wet environment and not harbour bacteria growth. this would include such things as a boiler and glycol condensing unit. unless you are investing a large amount of your own money. making concrete floors mandatory. Ventilation •T  here should be good ventilation throughout to remove condensation and provide fresh air. •F  loors should have a recommended pitch of 1/8 – 1/4-inch per foot toward drains. allowing you to have a better exit strategy if the business were to fail (i. should be curbed to prevent overflow. Square Footage • I t’s recommended the total space for a craft brewery should be at least 5. a water supply will be needed in these areas. then. It can also be extremely difficult to finance a start-up business venture and a building at the same time. •C  onsider protecting the bottling room from dust and impurities by including a filtered air system in this area.

Used Equipment When sourcing equipment for your craft brewery you have the option of purchasing new equipment from a manufacturer that . Please note that this is not a complete list but is meant to cover the major equipment requirements: •M  alt Mill – A machine that crushes malt into grist. aluminium cans and kegs / casks. • Kettle – A large vessel. this means putting the beer into bottles. Also called a brew kettle.iCraft Brew | Setting-Up Your Brewery 18 Brewing Equipment & Supplies So. New vs. now that you’ve found the perfect location / building for your craft brewery. •B  right Beer Tank – Storage tanks for the clarified final beer. similar in shape to a mash tun. • Lauter Tun – A large vessel with a perforated false bottom. •F  ilter – Removes solid particles from the beer. • Fermenter – A generic term for any open or closed vessel in which primary / secondary fermentation take place. it’s time to source the brewing equipment and supplies you’ll need to actually brew your beer. Typically. •P  ackaging System – A system that puts the beer into the containers in which it will leave the brewery. usually made of copper or stainless steel in which the wort is heated. It is used to strain the sweet wort off the spent grains after mashing. •M  ash Tun – a vessel in which mashing takes place and where wort is separated from the spent grains. Let’s start off with some of the equipment you’ll need. •H  ot Water Tank – The container where the brewing water is heated to mash temperature.

such as dairies.startabrewery. are perfectly acceptable. you could very well end up with a used brewing system that may have cost almost as much as a brand new. keep in mind you still have to piece it together and install it. purchasing a mish-mash of used equipment can leave you with some pieces that are oversized and require repairs. Copper is an acceptable material for use in breweries and wort can come into contact with it. collectively. within the FAB Region. where you decide to purchase / source your ingredients comes down to your budget. such as polyethylene plastic. be made into a brewing system.startabrewery. from different sources. please contact us or download the app at www. look for the “FDA approved” stamp printed on them. etc. For more information on the local suppliers. approved materials such as stainless steel. hightemp polysulfone plastic. iCraft Brew | Setting-Up Your Brewery Until you have all of your money in place and are ready to actually buy. modifications or adaptations and sanitization to be performed. •A  lways be sure not to exceed the temperature ratings of all materials and components. The FAB Region is home to several local suppliers to consider utilizing for your brewing ingredients. it’s crucial to source equipment that has been originally designed for other food processing operations. neoprene rubber and high-temp silicone rubber. soft drink plants. •A  void brass because it. Equipment Tips • T he equipment used should be made of safe. While you may end up saving more money by purchasing the used equipment. can. • W hen using PVC or vinyl tubing. including a list of used equipment websites and brewing system manufacturers. Brass fittings can be treated by “pickling” the parts in a vinegar and hydrogen peroxide mixture. •F  ood-grade plastics and rubber. 19 . it’s recommended you research both options to determine which best suits your requirements and budget. contains lead.specializes in brewery systems and works with you to develop a system based on your requirements and operation or you may consider purchasing used equipment. including locally grown hops and barley. Alternatively. the styles of beer you are brewing and your own personal preference. including local suppliers. Brewing Ingredients & Suppliers Several resources. download it today at www.ca. When considering used equipment. growing your own or sourcing your ingredients from places like New Zealand and Germany. there are four key ingredients required to brew beer: • Yeasts • Hops When searching for ingredient suppliers it’s crucial to remember the quality of your beer is only as good as the quality of your ingredients. Typically.ca. have been included within the app. pieces of used brewing equipment. although there may be some restrictions in terms of fermented beer coming into contact with copper. Unless you are extremely lucky. which removes the surface lead. • Malting barley • Water As previously mentioned. turn-key system. generally. There are many excellent sources for quality brewing ingredients. By the time you are finished.

this is the most convenient and cost-effective way to go. Bulk-pack bottles are full pallets of bottles The first step in bottling begins with loading the empty bottles on the conveyor that feeds into the unscrambling table either from a pre-pack or bulk-pack bottles. reversing chains and good inherent design. common with larger breweries and some craft breweries. For craft brewers. Kegging & Labelling The most important thing about the bottling and kegging process is to keep the beer from being contaminated by stray yeasts and to keep oxygen away from the beer — the two main things that reduce the shelf-life of beer.iCraft Brew | Running Your Brewery Running Your Brewery Bottling. These include mechanical joggers. loading with pre-packed bottles is usually done manually at a rate of 80 to 100 bottles per minute (BPM). Bottling In craft breweries. even though it is a relatively expensive way to buy bottles. Pre-Pack Craft brewers often buy what is known as a “pre-pack. .” which includes printed six-pack carriers inserted in a printed case along Bulk-Pack Another method. automatically feeds bottles onto the conveyor from a palletized bulk pack. Several types of mechanisms prevent the bottles from bridging as they are funneled to a single line. 20 with the bottles. The table funnels the wide mass of bottles into a single stream.

A de-palletizer removes the bottles from the pallet. or tavern head. Label Standards Any beverage containing 1. The top chime has integrated handles for easy handling. rotary and tandem.ca. These products must meet the labelling and compositional requirements found in Division 2 of the Food and Drug Regulations (FDR). the bottles are separated by cardboard sheets and wrapped in plastic shrink. (Note: It’s also highly advised that you verify provincial legislation as it may differ from the federal requirements). more common single-valve keg (SVK). back. Sankey-Style Valve The newer. Aluminum kegs are generally more popular than stainless steel kegs because they are lighter and more resistant to minor damage. Kegging involves filling carbonated pasteurized beer into sterile aluminum or stainless steel kegs of various sizes.startabrewery.with no cartons. The tapping device. please visit the Canadian Food Inspection Agency. Kegging fits into the cost structure for craft brewers with limited startup capital for bottling lines and low product output. Draught accounts prefer closed-keg systems over open-keg systems for several reasons. Tandem Labeler An in-line labeler is a type of machine for which the bottle travels in a straightforward motion and the label or labels are applied while the bottle is moving along the bottle conveyor. fits into the lug housing of the valve. Rather. ease of storage and handling and the improved profit margin due to the reduction of beer loss.1% or more alcohol by volume is considered an alcoholic beverage. Kegging Kegging is another option in packaging beer. commonly associated with older keg styles. or “Sankey” keg. Rotary Labeler Rotary labelers are machines for which the bottles must be transferred from the bottle conveyor into the labeler carousel. The top also contains a concentric valve fitting in the center allowing for easy cleaning and filling by automated systems. Pressure-sensitive or self-adhesive labels are also used in the craft brewing industry though not as much as paper labels. The FDR requires all beverage alcohol labels to include the following information: •C  ommon name •C  ompany name and address • Net quantities in metric units •A  lcohol content by volume •C  ountry of origin • I ngredients (required only for “unstandardized” alcoholic beverages) iCraft Brew | Running Your Brewery Closed-Keg Systems Closed-keg systems are identified by their typically straight sides with a rim called a chime on each side. the Canada Business Network or the LCBO website or download the app at www. •D  urable life date (if shelf life is 90 days or less) For more detailed information on the FDR and other labelling requirements for alcoholic beverages. usually a layer at a time. The principal types of labelers used in the brewing industry are pressure-sensitive. pharmaceutical and soap industries. 21 . Tandem labelers cannot do front and back labels at the same time and are not very wellsuited for applying neck labels. full wrap and neck labels. Pressure-Sensitive Labeler These units are used in the wine industry and food industry but are used more often in the cosmetic. Pressure-sensitive labels are applied from a coiled strip of waxed carrier (also called “backing”) paper. Labelling Bottle labeling is completed after bottle filling once the bottles have been dried. Open-Keg Systems Open-keg systems are characterized by their barrel shape and bunghole on the side by which the interior can be readily accessed without extracting the valve body or spear. including ease of tapping. and places them on the unscrambling table. has a valve arrangement that consists of a stainless steel rod housing called a combination fitting that is permanently installed into the top center of the keg and sealed with a spring-loaded check ball. Rotary labelers operate at higher speeds than pressure-sensitive and tandem labelers and are equipped to apply front.

Networking is an extremely powerful and inexpensive (and in some cases free) way to generate awareness of your craft brewery and beer. not the number of pages or the expensive “bells and whistles. leave it to the professionals. Attend industry events. Know your goals and what you can give in return. a website can be a dynamic source of two-way 22 communication between you and your consumers. which tends to be the most expensive and often not the best choice for small businesses. without breaking the bank: iCraft Brew | Selling Your Craft Beer Brand your business. network. Being a do-it-yourself designer won’t save you any money in the long run. Follow up in a timely fashion and stay in touch to reinforce the relationship.” As suggested with your logo. . You can even sell your beer through your website! You don’t need to spend a fortune developing a huge website. network. you should invest in having a professional website designed by a web developer. Remember. you’re busy with running your craft brewery and your specialty is not design. Use a website. You may even consider using a tagline that reflects your business philosophy to reinforce who you are as a business. Network. packaging. It’s highly recommended that you invest in having a professional logo designed by a graphic designer. A more extensive guide and links to tools and resources can be found by downloading the iCraft Brew app. website and other promotional materials you plan to use.ca. as your brand will appear on your labels. Having a website is essential in today’s business world.SElling YOUR Craft beer Marketing & Promotion While marketing is critical to the success of your craft brewery. It’s entirely possibly to effectively market your craft brewery business without spending a fortune on traditional advertising. Effective networking is all about building relationships that can lead to business down the road. Work with experts who understand your goals and objectives and will help you build a site tailored to your business and needs. join an industry association or local chamber or even consider volunteering for a board or committee. First thing. Unlike printed materials. which can be found at www. The most important thing to keep in mind about marketing is that it is communication. The following ideas have been included to assist you with planning your marketing. during the start-up stages the cost of marketing can be an issue. Having your nephew develop your site will not save you any money in the long-run. establish a concrete identity.startabrewery. There are many excellent small design firms and freelancers to consider over the big-box agencies. The quality of the content and professional of appearance of your website is paramount.

along the 401 corridor & stretching up as far North as Algonquin Park. iCraft Brew | Download iCraft Brew LI V E YOU R D R E A M O F To help you get started. Our four Counties are situated exactly halfway between Toronto & Ottawa. will guide brewing enthusiasts through the necessary steps of opening a small-scale craft brewery. GET STARTED TODAY! startabrewery.ca 23 .OW N I N G & O PE R AT I N G YOU R VE RY OW N CR A F T B R E W E RY! We are a group of economic development specialists in eastern Ontario who want to help you open your brewery in our region. our free app. for the iPad & other tablets.

Get Something Brewing In Eastern Ontario Anne Prichard.ca Neil Carbone.ca hastings@fabregion.ca LandA@fabregion.ca .ca startabrewery. Director of Community Development Prince Edward County cdd@pecounty. Economic Development Manager Stephen Paul.ca fabregion. Economic Development Manager Frontenac Community Futures Development Hastings County Lennox & Addington County frontenac@fabregion.on. Executive Director Andrew Redden.