If you’re a craft brewery owner, chances are you’ve poured years of hard work, creativity, and passion into your business. Whether you’re just curious about your brewery’s value, preparing for a sale, or considering investors, understanding what your brewery is worth is one of the most important steps you can take.
This guide breaks down the key factors that determine brewery valuation, the methods buyers and advisors use, and how you can position your brewery for maximum value.
Why Brewery Valuation Matters
Valuation isn’t just about a potential sale. Knowing your brewery’s worth can help you:
- Plan for succession or retirement.
- Secure financing or investors.
- Benchmark performance against industry peers.
- Identify areas where your business can grow in value.
Even if you don’t plan to sell today, understanding value can guide smarter business decisions tomorrow.
The Main Drivers of Craft Brewery Value
1. Financial Performance (EBITDA)
In mergers and acquisitions, the most common measures of a business’s worth are EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) or SDE (Seller’s Discretionary Earnings).
- Buyers typically apply a multiple to EBITDA and/or SDE to arrive at valuation.
- Strong, consistent profitability usually translates into higher multiples.
For breweries, margins can vary widely depending on scale, distribution, and operating costs.
2. Revenue Mix and Stability
- Diversification matters. Breweries with taproom sales, wholesale distribution, and specialty products may be more attractive than those relying on a single channel.
- Recurring or contract sales with retailers and distributors can increase stability — and therefore value.
3. Brand Strength and Market Position
Craft beer is as much about brand as it is about product. Buyers look closely at:
- Local and regional brand recognition.
- Awards, press coverage, and community engagement.
- Customer loyalty and social media following.
A strong brand can command a premium.
4. Assets and Facilities
Physical assets also matter:
- Brewing equipment, taprooms, and real estate.
- Production capacity and room for expansion.
- Condition and scalability of facilities.
Well-maintained and scalable operations can increase buyer confidence.
5. Growth Potential
Buyers aren’t just paying for what your brewery is today — they’re paying for what it can become.
- Opportunities to expand into new markets.
- Ability to increase production or launch new products.
- Untapped wholesale or direct-to-consumer opportunities.
6. The Broader Market Environment
Valuations are also shaped by industry trends:
- Consumer demand for craft beer.
- Competitive landscape (independent vs. larger players).
- Access to capital and M&A activity in the sector.
Valuation Methods Used in the Brewery Industry
While every deal is unique, here are three common approaches:
- EBITDA / SDE Multiple Method
- The most widely used.
- Buyers apply an industry multiple (often between 3x–6x for breweries, depending on size and stability) to EBITDA.
- Comparable Transactions
- Looking at recent brewery acquisitions of similar size and structure.
- Provides a “real world” benchmark of what buyers are paying.
- Asset-Based Valuation
- Focuses on the value of equipment, facilities, and inventory.
- More common when breweries are early-stage or not yet profitable.
How to Increase the Value of Your Brewery
If you’re planning to sell in the next 1–3 years, you can take steps now to improve valuation:
- Improve financial reporting: Clean, accurate financials inspire buyer confidence.
- Diversify revenue: Don’t rely solely on taproom sales.
- Build brand equity: Invest in marketing and customer loyalty.
- Document operations: Standardized processes make transition easier.
- Plan ahead: Engaging advisors early can help you identify value drivers before you go to market.
The Bottom Line
Your craft brewery is more than just stainless steel tanks and kegs — it’s the brand, community, and business you’ve built. Understanding what it’s worth is the first step in making informed decisions about your future.
At American Craft Brewery Advisors, we specialize in helping brewery owners evaluate, grow, and sell their businesses. Whether you’re years away from exiting or actively considering a sale, we can help you understand your brewery’s true value.
👉 Ready to find out what your brewery is worth? Contact us today for a confidential valuation.