How to Launch Your Own Craft Cidery: A Comprehensive Guide to Starting a Hard Cider Business

If you have a passion for hard cider and an entrepreneurial spirit, starting your own hard cider business could be a rewarding endeavor. The hard cider market has exploded in recent years, as more people discover a taste for the crisp, refreshing alcoholic beverage made from fermented apple juice. Launching a hard cider company does require a major time and financial commitment, but for the right person with a creative cider recipe and business plan, it can be a pathway to owning a successful craft beverage brand.

In this blog post, we'll walk you through the essential steps to get a hard cider business up and running: finding the right cider apples, perfecting your recipe, obtaining proper licenses and permits, creating a business plan, finding financing, and marketing your new hard cider brand. With determination and dedication, you can turn your homebrew hobby into a thriving hard cider business.

The Hard Cider Market Landscape

The hard cider market has experienced double digit growth over the past few years, as more consumers discover a taste for the crisp, apple-based alcoholic beverage. Hard cider appeals to beer and wine drinkers looking for an alternative, gluten-free option. The target audience tends to be millennials and Generation X consumers.

The hard cider market includes large national brands, as well as small craft cideries. As a startup, you would likely focus on producing a premium, craft cider targeting local consumers in your area. You can then expand into wider distribution over time. The key is finding the right balance of quality ingredients and unique flavors to produce a cider that stands out from the competition. Many craft cideries also offer cider tastings, tours, and special events to build brand loyalty and attract customers to their taprooms.

Developing Your Hard Cider Product

The most important part of a hard cider business is developing a product that will resonate with customers. As a craft cidery, you need to source high-quality cider apples to produce a hard cider that stands out from mainstream brands. Work with local apple growers to find specialty cider apple varieties that will give your hard cider a distinct flavor profile. You may want to experiment with blending different types of cider apples to create unique tastes.

Your hard cider can be offered on tap in your cidery tasting room, as well as bottled or canned for retail sales. Consider a variety of packaging options to appeal to different types of customers. Growler fills, crowlers, and kegs are popular for on-premise sales, while bottles and cans allow for wider distribution.

Creating the perfect hard cider recipe may take time. You'll need to test small batches, get feedback from friends and family, and make adjustments to the ingredients and fermentation process until you have a cider you feel confident selling commercially. Don't rush the R&D phase. Developing a high-quality product is key to establishing a loyal customer base. Once you have your recipe finalized, you can begin ramping up production volume.

The Economics of a Hard Cider Business

A hard cider business requires a substantial initial investment to get up and running. Costs include purchasing cider apples, cider-making equipment like a mill, press, fermentation tanks, and bottling equipment. You'll also need a commercial kitchen, taproom space, and storage facilities. Total startup costs can range from $50,000 to $500,000 or more for a mid-sized cidery.

Your cost of goods sold will primarily consist of cider apples, which can vary in price depending on the types of apples used and availability from local growers. You'll also need to factor in packaging, labor, distribution, and marketing costs. Aim for a cost of goods sold that is 30-35% of your retail price to maintain healthy profit margins.

For pricing, you'll want to consider the going rate for premium craft ciders in your area. Typically, a pint of craft cider sells for $5-8 in a taproom, while a bottle or can may retail for $8-15. You can charge a premium for limited release or barrel-aged ciders. For kegs, a typical price is around $150-200. You may need to start with lower prices to attract customers, then raise prices gradually as your brand gains recognition.

Many craft cideries struggle in their first few years as they establish their brand and gain distribution. Creating a solid business plan and financial projections, controlling costs, and raising enough capital to sustain the business during the startup phase will be critical to your success. With time, a devoted customer base, and increased production efficiencies, your hard cider business can become highly profitable. But you need to go in with realistic expectations about the challenges of this competitive industry.

Marketing Your Hard Cider Brand

A key part of launching a successful hard cider business is implementing an effective marketing strategy to raise brand awareness and attract new customers. Some of the top marketing tactics for a craft cidery include:

•Search Engine Optimization (SEO): Optimize your website content for search engines like Google to rank higher in search results for terms like "craft cider" and "hard cider" along with your location. SEO can drive organic traffic to your website and taproom.

•Social Media Marketing: Build a social media presence on platforms like Facebook, Instagram, and Twitter to engage with your target audience. Post regularly about your cider products, taproom events, and other company news. Social media is a great way to spread brand awareness and stay top of mind with customers.

•Email Marketing: Start collecting email addresses from your website, taproom visitors, and event attendees. Send a regular newsletter with updates about your company and special offers to keep subscribers engaged. Email marketing has a high ROI for small businesses.

•Taproom Events: Host events like cider pairings, meet the cider maker nights, and live music at your taproom. Events draw new and existing customers to your location and give them an experience they will remember.

•Direct Mail: For customers located near your cidery, direct mail in the form of postcards or flyers can be an effective way to advertise your taproom hours, new product releases, and special deals. Offer a discount or coupon to incentivize recipients to visit your taproom.

•Press Coverage: Pitch your story to local media outlets and journalists to gain valuable press coverage. Getting featured in local newspapers, magazines, blogs, podcasts, and TV stations exposes your brand to new audiences and lends credibility. Build media relationships and send press releases about any news or events you have coming up.

•Word-of-Mouth Marketing: Don't underestimate the power of word-of-mouth marketing. Satisfied customers who rave about your brand to others can become your most effective advocates. Provide customers with an exceptional experience so they spread the word about your craft cider far and wide.

Developing Your Sales Strategy

For a hard cider business, sales primarily come from two channels: on-premise sales at your cidery tasting room and off-premise sales through distribution to local bars, restaurants, and retailers. Here are some key strategies to drive sales in both areas:

•Focus on the tasting room experience. Your taproom is a chance to introduce customers to your brand in a fun, memorable way. Provide cider tastings, tours, live music, food options, games, and other events to keep people spending time on-site. The more time they spend, the more they will buy.

•Build partnerships with local businesses. Partner with nearby restaurants, bars, and bottle shops to serve your cider on tap or sell bottles and cans. Offer promotions and discounts to incentivize them to carry your product. Cross-promote to each other's customers. Look for opportunities to co-host events together.

•Distribute to local retailers. Get your bottled and canned cider placed in area liquor stores, grocery stores, and other retail shops. Provide samples and marketing materials to help educate their staff about your brand. Offer promotional discounts and deals for retailers to help drive initial sales.

•Expand into wider distribution over time. Once you have established a strong local customer base, look for opportunities to distribute your hard cider to locations outside of your immediate area. Work with regional distributors to get placement in more bars, restaurants, and retail stores within your state and surrounding states. Wider distribution will significantly increase sales but also requires ramping up production volume to meet demand.

•Diversify your product line. Release new ciders made from different apple varieties or with added flavors to give customers more options to choose from. Limited releases and seasonal ciders generate excitement and interest in your brand. Cider clubs and membership programs provide loyal customers with exclusive access to your newest creations.

•Sell cider-related merchandise. Don't just sell hard cider. Offer t-shirts, glasses, growlers, and other merchandise featuring your brand logo and cider labels. Merchandise provides another revenue stream and gives customers a way to proudly promote your company.

•Provide great customer service. Outstanding customer service keeps people coming back to your taproom and buying your products. Train staff to be friendly, knowledgeable, and engaging. Address any customer issues promptly and professionally. Build personal connections with repeat customers to strengthen their loyalty to your brand.

Operations and Execution

Running a hard cider business requires managing many moving parts efficiently, from producing the cider to operating your taproom. Some key areas of operations and execution include:

•Cider Production: Make sure you have a well-developed process for crafting your hard cider recipes at scale. Maintain consistency in quality and flavor across all batches. Schedule production runs and bottling/canning to meet demand and avoid stockouts. Monitor inventory levels of ingredients and packaging supplies to avoid shortages.

•Taproom Management: Keep your taproom staffed, stocked, and running smoothly. Create work schedules, train employees, and oversee daily tasks like opening/closing procedures. Offer a great experience for all customers. Track sales, costs, and metrics to optimize operations.

•Distribution: Work closely with your distributors to get your hard cider placed in as many locations as possible. Provide marketing materials and samples to support their sales efforts. Track which accounts are selling the most volume and follow up to build those relationships. Look for new distribution opportunities to continue growing your business.

•Compliance: Follow all laws and regulations that apply to your hard cider business. Obtain proper licenses and permits to produce and sell alcohol. Comply with health department and food safety rules regarding your commercial kitchen. Stay up-to-date with any changes to laws that could impact your business.

•Accounting: Manage all financial aspects of your business including accounts payable/receivable, payroll, taxes, budgeting, cash flow, profit and loss statements, and balance sheets. Track revenue, costs, margins, and key performance indicators to gain insights into the financial health of your company.

•Sourcing: Establish relationships with local apple growers and suppliers to source high-quality cider apples and other ingredients for your products. Compare prices and quality to get the best deals. Sign contracts when possible to lock in pricing and ensure availability of key supplies. Renegotiate as needed to control costs.

•Maintenance: Perform regular maintenance on all equipment like your cider press, fermentation tanks, bottling line, taps, and cooling systems to prevent disruptions in operations. Schedule downtime as needed to conduct more intensive maintenance. Repair or replace equipment when it reaches the end of its usable life.

Legal Considerations

Before starting a hard cider business, be sure to research all legal requirements and regulations that apply to operating a cidery and taproom in your area. Regulations vary in different states, counties, and cities regarding the production and sale of alcohol. At a minimum, you will need to obtain federal and state licenses to manufacture and sell hard cider. There may be additional permits required for a taproom.

You should also check zoning laws to ensure it is legal to operate a cidery and taproom on your intended property. There may be restrictions on the hours of operation, noise levels, and other activities. It is critical to understand and comply with all laws to avoid legal trouble that could threaten your business. You may want to consult an attorney who specializes in alcohol regulations and hospitality businesses to guide you through the legal aspects of starting a craft cidery.

Launch Your Hard Cider Dream

Starting a hard cider business is challenging, but for the entrepreneur passionate about crafting an exceptional cider and building a brand, the rewards can be tremendously fulfilling. With a well-developed business plan, high-quality product, effective marketing, and solid operational execution, you can turn your cider-making hobby into a thriving company. The key is to start small, focus on your local community, and expand gradually as you gain more experience and your customer base grows. If you provide great service and a memorable taproom experience, people will come back again and again to support your hard cider brand. Despite the obstacles, following your dream to open a craft cidery can be an incredibly rewarding journey. So if you have the motivation and dedication, take that first step and start bringing your vision for an artisanal hard cider to life.