If you love beer, then nothing makes more sense than trying to make money from it. Not only can you use your expertise and knowledge to choose where to invest, but you will also feel a lot more confident in your investing in what you love. But how exactly should you invest in beer? What are the different possibilities, and can you even make money?
In this guide, we’ll look at some of the best ways you have to invest in beer and how you can turn your passion for it into money!
Why investing in beer makes sense
Beer may seem like a stupid investment for some people, but the fact is that it is one of the most exciting things to invest in. On the one hand, it is a popular drink that everyone loves, and while it seems like the demand for beer is reaching a plateau, the reality is that every year, new craft beer brands emerge, and new beer lovers are born.
While we see a trend of decreasing consumption, not only worldwide but in countries like Germany and the US, there are other countries where alcohol consumption and the beer market is expanding, especially in China.
Even some of the smartest people on the planet seem to understand why investing in beer makes sense. Bill Gates just recently bought a large stake in Heineken, and while he claims that he is not a huge fan of beer, he understands the economics and the appeal of investing in such a stable industry.
Moreover, when it comes to margins, the beer industry has some of the most impressive margins of any industry. Brewers often have gross margins above 70%, and even wholesalers can get close to 30% gross margin. This means that even starting a craft beer nano-brewery can be extremely profitable, especially if you can sell direct-to-consumer.
It is also important to understand that, unlike other food products or drinks that are driven by trends, beer demand is relatively stable, and the public is always willing to buy. This makes any business in the beer industry more stable, and it can easily deal with any short-term problems it might face.
3 Ways to invest in beer
We have established that investing in beer can be profitable, and it makes money, but choosing the best way to do it will depend a lot on what kind of investment you want to make. Here are the 3 main ways you can invest in beer:
- Start a brewery
- Invest in an existing brewery
- Invest in beer stocks
Let’s look at each of these options in more detail:
Start a brewery
Well, the obvious choice when it comes to investing in beer is to start your own brewery! But while this may seem like a great idea, it isn’t feasible for some of us. If you have a 9-5 job and a family to feed, you can’t really quit everything and start your brewery tomorrow. For that, you will have to research, try to make beer at home with a few brewing kits, and really learn about the art and craft of beer brewing.
You’ll also need to make a business plan and even consider all the equipment you need to start brewing beer on a large scale or even for your nano brewery. While there are advantages to starting your own company, and creating your own path, if you do not have any previous experience with brewing, this is probably a hard pass. But that doesn’t mean that you shouldn’t invest in beer. There are other ways that make more sense if you want to have a hands-off approach and still make money from beer.
Invest in an existing brewery
“If you can’t beat them, join them!” this is perhaps the simplest way to start investing in beer. Just find a local brewery that you like and ask if they are willing to take any outside investors. This allows you to get more knowledge and hands-on experience while still investing in your favorite drink.
You may choose to buy a whole company or even consider owning a percentage of the brewery. Here are some websites where you can find investment opportunities in breweries, either through ownership or lending money to entrepreneurs looking to establish their breweries.
Just make sure you do your due diligence, and ensure that you are investing not only in a company that has long-term potential but you also need to guarantee that you will get your money back.
Invest in beer stocks
The last option you have is to put your money into beer stocks. This allows you to have part ownership in some of the largest beer companies in the world. You will make money when the stock price increases or if the company pays dividends, which are the profits distributed among shareholders.
To invest in beer stocks, you will need a brokerage account and some money to deposit, but you can start with as little as $100. But which beer stocks should you invest in?
Here are a few of the most popular beer stocks you can invest in:
- Heineken (HEINY)
- Carlsberg (CABGY)
- Anheuser-Busch (BUD)
- Molson Coors (TAP)
The greatest advantage of investing in beer stocks is that it allows you to just put the money to work without having to worry, and you can always invest in some of your favorite beer companies that you already know.
Beer has all of the characteristics of a great investment, there is demand for it, and it isn’t going away anytime soon. The tricky part is choosing the best approach when it comes to investing in beer. You’ll have to decide whether you want to take a hands-on approach and start your own brewery and research and study brewing or you want to partake in another brewery’s success.
I am a passionate beer connoisseur with a deep appreciation for the art and science of brewing. With years of experience tasting and evaluating various beers, I love to share my opinions and insights with others and I am always eager to engage in lively discussions about my favorite beverage.