It’s important to ensure that expansion at any time makes financial sense. When it comes to brewhouse and back-of-house operations, one effective way to grow without breaking the bank is by investing in used equipment. This can help either in reducing startup or expansion costs. Purchasing things like used tanks, fermenters, or full brewing systems can allow owners to scale without the hefty price tag. But, there are common pitfalls to look for while also prioritizing what is important to buy new versus buying on the secondary market.
Just a few years ago the thought of used equipment could be a stretch as many breweries were opening and used equipment could cost almost the same amount as new, just without the lead time to wait for it to be built. Now, with breweries closing at a much faster rate than before, the market to find used equipment at affordable prices has become more commonplace. That means due diligence though when choosing what is best.
The key is to assess the condition and functionality of any used equipment, particularly internal components, and to avoid operational issues.
Evan Beggs, Head Brewer for Denver’s Ratio Beerworks, has purchased used equipment in the past and shared with Brewer ideas to ensure best practices in picking up a great deal.
It starts, he noted, with making sure the equipment has recently been in operation, and not that it just turns on, but is in a good, safe operating condition.
“Make sure you either currently have the correct utilities to connect to the used equipment, or have the ability to connect utilities to the equipment,” he added, pointing out to think about electrical voltage, compressed air requirements, CO2 load, water pressure needs, and such.
“Make sure the equipment either matches your current needs or is aligned with your growth strategy,” he said. “Sourcing a piece of used equipment that isn’t aligned with your strategy and/or continuous improvement goals will just make things more complicated.”
Generally, anything with stainless steel, like FVs, brites, and a lot of brew systems hold up fairly well given that they were used correctly and in good condition. Cleaning processes, especially inside should be factored in as well.
Beggs said that there should be a sort of checklist of specific features or key requirements anyone looking to buy used should prioritize when evaluating used brewing equipment.
- Utility: Does the equipment align with your current utility supply at your location?
- Space: Does the equipment fit within your location, and is it able to get into the location without significant alterations to the building?
- Permitting: Does this piece require any local/city/state permits before use?
- Capacity Improvements: Will the equipment expand capacity or alleviate strain on your current capacity?
So, how can you best assess the remaining lifespan and performance of a piece before making a purchase? Beggs said to confirm the date of manufacture and verify the condition of as many components as possible.
“What condition is the stainless steel in it and how do the welds look on joined parts,” he said. “ Additionally, contact the manufacturer and confirm what their stated lifespan is given in favorable-use conditions.”
If possible, Beggs added to ask the current owners how many batches, cycles, and/or the load of use the equipment saw during ownership.
Adam Firestone, co-founder of Firestone Walker, recalls the brewery’s early days when financial constraints led them to buy secondhand equipment, including auction purchases. Although they managed to engineer most expansions in-house, Firestone admits they faced issues with used equipment. One time, two matching used palletizers came at a total bargain. Unfortunately, Firestone said they ended up spending more reworking the mechanics and electronics than they might have spent starting new.
”We should have invested more time in pre-purchase inspections,” he admitted.
Questions about used equipment can be narrowed down to two main segments: the condition of the equipment and the ease of putting it together. The condition of the equipment’s outside is important, but really the inside is where you want to make sure that there are no dimples in things like kettles and fermentors Kayne Fisher of Natty Green’s once told Brewer. He noted that working with local metal fabricators and seeking out quality used tanks but avoiding used packaging equipment can be key.
READ MORE: From Old to Gold: Growth Through Used Equipment
Todd Ford of NoDa Brewing in Charlotte echoed this sentiment.
“We have not been afraid to buy used tanks that have quality construction and who have been well-maintained,” Ford said, who opened NoDa in Charlotte in 2011. “We really are not likely to buy packaging equipment used just because of the need to coordinate operations with other equipment and the need for top customer support with complicated bottling and canning lines.”
Beggs also said that maintenance or refurbishment considerations should be taken into account after purchasing something as well.
“If it’s a FV, Brite, or brew system, a thorough inspection of the vessel inside and out is a must,” he said. “Replacing gaskets with new ones is typically an inexpensive investment that goes a long way.
“Additionally, a strong CIP cycle, starting with a caustic-based solution, followed by a passivation is a great practice, as it sets the timeline for when the next passivation is due and confirms the stainless is in as good of condition as possible prior to use.”
He also noted that if other types of equipment, such as a keg washer, check all the electrical connections, heating elements, and such, before startup to confirm it is ready for startup so that no hazards are present.
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