How to Start a Barrel Making Business

Part 1 - How to start a Barrel Making business - Background

A barrel making business, or cooperage, as traditionally named, is a business which specializes in the crafting and construction of wooden barrels and casks.

Our guide is in 3 parts:

• Part 1 - How to start a Barrel Making business - Background
• Part 2 - Our planner tool to see if this idea is the right fit for you
• Part 3 - Action plan to get started

What are the costs involved in opening a barrel making business?

Initial costs for opening a barrel making business will mainly reflect tools, materials and, potentially, a rental space as a workshop and storage facility. Wood and metal banding can be relatively inexpensive, with pricing depending on the type of wood used and availability in your region. The tools needed will be a mix of hand and power tools with circular and mitre saws, jigsaws, planers, and sanders representing many of the power tools and hammers, chisels, and other woodworking and finishing hand tools comprising the hand tools. You will also need a fire source, such as a propane cooker or small flamethrower, for the “toasting” process of the barrels, in which the inside is fired to help seal and flavor the barrels. Additionally, you will need insurance for the business and yourself or workers, a business license, rent, and utilities for your workshop and a few delivery and work vehicles for hauling raw materials, as well as finished products.

What are the ongoing expenses for a barrel making business?

Material and shipping costs will comprise a majority of your overhead, as well as rent and utilities, as needed.

Who is the target market?

Your target market will mainly consist of breweries, wineries and distilleries. By creating products these companies are looking for, you wildest likely fill a niche, which has little competition.

How does a barrel making business make money?

The wholesale and retail sales of barrels and casks generates the revenue for a barrel making business.

How much can you charge customers?

Individual barrels will often run between $350-450, with more specialized wood, such as French oak fetching upwards of $1500 per barrel.

How much profit can a barrel making business make?

With the demand for quality wood barrels on the rise, the potential for earnings can be quite high. If a barrel business averages $400 per barrel and sells 400 barrels per year, their gross returns will be $160,000.

How can you make your business more profitable?

Although a majority of your barrels will go to liquor manufacturers, there is also a residential and commercial application for barrels as furniture and themed installs, such as table bases, chairs and coffee tables. Some older or damaged barrels may also be resold as planters for flowers and gardens. Finally, there is also an industry in refurbishing or reselling used barrels. If a barrel is of a certain wood, it may be more profitable or cost-effective to repair or refurbish for resale. Many craft beer companies are also using bourbon, scotch, and cognac barrels to flavor and infuse their brews. This trend is starting to cross-pollinate to numerous types of spirits.

Day-to-Day and Growth

What happens during a typical day at a barrel making business?

Since the focus of a cooperage is to make barrels, much of the day to day business will consist of the forming and carpentry of barrels, as well as the finishing and aging processes. The bending of the wood slats, in addition to the gathering of materials for barrel construction, will also occupy a good amount of the daily schedule.

What are some skills and experiences that will help you build a successful barrel making business?

As barrel making is hands-on wood crafting, carpentry skills are necessary. Experience in steaming or soaking and bending wood is also necessary to help successfully get started with minimal training. Banding and finishing the barrels also takes a careful touch and should be performed by someone with an eye for detail and meticulous craftsmanship. It is also advisable to be knowledgeable in small business management, as you will more than likely be creating and steering this ship with only a few resources to guide you. You will need to be well-spoken and able to address potential clients with a clear and concise message about the virtues of your products and company.

What is the growth potential for a barrel making business?

The demand for barrels for craft beer and wine, as well as liquors, is on the rise. More and more spirits companies are returning to wooden barrels for storage and aging of their products. Fortunately for barrel makers, the demand is growing, but the field of cooperage companies is small, which means a barrel company may be able to position itself as the barrel supplier for quite a few businesses. And, since demand is growing, so should the potential for growth in this field.

What are some insider tips for jump starting a barrel making business?

A majority of your revenue will stem from sales to beer, wine, and liquor companies. You should familiarize yourself with the various breweries, wineries, and distilleries in your area. Set up meetings with owners or representatives and take some samples of your work. Your initial push will be to create outlets for your creations. Without buyers, your barrels will simply gather dust. Research local and regional beer, wine, and spirits organizations and industry trade shows. Find out who your high end craft spirits companies are, as many of these companies will often be looking to add a more traditional flare and flavor to their products. Finally, create an online presence for yourself and constantly push content to keep your name and reputation known and relevant.

How and when to build a team

As you begin your new barrel making venture, you will more than likely want at least a few other assistants or partners to help shoulder the burden of production. Barrel making is a craft, so you will need individuals who equally possess woodworking experience and related skills. The quality of your work needs to be consistent, so set up a training regiment and production quality standards for all employees to adhere to. As you grow in size, bring on more barrel constructors, which will allow you more time to market and promote and focus on the financial aspects of a growing business.

Part 2 - Is a Barrel Making business the right fit for you?

Part 3 - Action plan to launch your Barrel Making business in 90 days