Published 05-02-2019
| Article appears in February 2019 Issue

FINANCE OPTIONS HELP MICROBREWERIES EXPAND

04-02-2019
New equipment increases productivity

Microbreweries are an expanding part of the Australian food and drink manufacturing sector. However, because of their scale, they face a dilemma on how to keep production levels rising while capping costs.

For those of us who love the amber nectar, the plethora 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 a brewery like this has become established the next challenge is how to broaden distribution and expand outside the local community.

Classic Funding Group has been helping various breweries across Australia to take this leap.

One brewer in Victoria initially purchased second-hand equipment from the closure of a similar business as a short-term measure to grow the business and increase output. This may have been a great option at the time, but not the most efficient when the 20-year-old manufacturing equipment started to show signs of aging.

As sales rose, the business needed to modernise its equipment, and Classic Funding Group was able to minimise the impact on the brewer’s 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 it can keep up with all the drinkers.

New equipment improves efficiency, but there are other investments that can reduce costs, particularly in the area of energy efficiency and on-site solar power generation.

One particular brewery in Sydney realised this and found that by putting panels on its roof it could reduce its power bills by enough to cover the solar finance costs.

With $0 deposit terms available from Classic Funding Group, 2019 might well become the year of the brewer! Cheers.

Classic Funding Group
1300 780 895
www.classicfg.com.au

TO LEARN MORE, CONTACT

RELATED NEWS

  1. It’s never too early to get organised to protect and maximise the future value of your business.
    For most owners, their business is their number one asset, investment and income stream. Yet, according to recent research by accounting and advisory firm William Buck, 55% of owners do not have an exit...
  2. The Reserve Bank of Australia (RBA) has joined other major central banks, including the US Federal Reserve and the Reserve Bank of New Zealand, in going harder in the fight against inflation.
    On Tuesday, 7 June 2022, the RBA delivered a rate hike of 50 basis points, taking the cash rate to 0.85%....
  3. According to the Deloitte 2022 Manufacturing Industry Outlook, The global manufacturing industry is building back fast, undeterred by significant labour and supply chain challenges. To maintain this momentum, Deloiite suggests that manufacturers navigate elevated risks while advancing...