We’ve talked a few times about trends in the brewing industry, as well as the unique circumstances appraisers face within it. Recently, we were invited to give a presentation on appraising Brewery Equipment by the Appraisal Institute’s South Carolina Chapter.
You can find our full presentation here, but we also wanted to share some highlights.
- The US has seen massive growth in microbreweries – 21% annual growth since 2014
- Important Equipment elements include:
- Brewhouse – where the brewing process starts, usually the most expensive piece of brewing equipment. It usually contains mash mixer, lauter tun, hot liquor tank, holding, kettle, boil kettle, and whirlpool. Pricing varies based on size and custom features but can range from $50,000 – $100,000
- Fermentation & Brite Tanks – The second and third steps of brewing – the size of the tanks will depend on production needs of the brewery in question. The ones we have valued tend to have 7-20 barrel tanks, which range in price from $6,000 – $15,000
- Kegs & Keg Washers – Kegs typically come in two sizes – 1/2 and 1/4 barrels. While the price of an individual keg isn’t especially high, breweries often need hundreds, leading to a large total value. Keg Washers can vary in price from a few thousand dollars to over $10,000.
- Breweries may also have bottling or canning lines, specific piping, chillers, forklifts, and furniture and fixtures that need to be accounted for in a valuation
- Equipment trends we’re seeing are that there is a long lead time for new equipment, the used market is very strong. Brewing equipment is in high demand, and the cost of used is equipment is often not far below new. Additionally, brewing equipment only seems to be depreciating physically, and not experiencing functional or economic obsolescence.