Victorian Brewery increases production
Australian microbreweries are an expanding part of the food and drink manufacturing sector. However because of their scale, they face a dilemma on how to keep production levels rising whilst capping costs.
For those of us who love the amber nectar particularly on a summers day, the plethora of choice of beers has never been greater. Many towns now have their own microbreweries, attracting a local crowd by providing food and a great vibe.
Once your brewery has become established the challenge can become how to broaden distribution and expand outside your local community.
Classic Funding Group has been helping various breweries across Australia to take this leap.
One brewer in Victoria started his business using second hand equipment from the closure of a similar business as a short- term measure to grow the business and increase output. A great low cost set up but not the most efficient when the manufacturing items were actually made over 20 years ago and start to show signs of aging. As sales rose the business needed to modernise their equipment.
Classic Funding Group was able to minimise the impact on their cash flow by providing Equipment Finance over 60 months. From replacing mixing tanks, brewing kettles, filters and more, the brewery now has a 20 tap beer system to ensure they can keep up with all the drinkers!
New equipment improves efficiency but how else can you reduce costs. Power costs have been rising for all. If these costs are reviewed, it is likely that there will be a strong case for the adoption of solar or low energy lighting. A brewery in Sydney realised this and found by putting panels on their roof they could reduce their power bills providing the margin to cover the solar finance costs.
With $0 deposit available, make 2019 the year of the brewer! Cheers.
This article first appeared in Industry Update in February 2019