Budgeting for marketing in a brewery's first two years

Start from jobs, not a percentage

Founders often ask what percentage of revenue to put into marketing. The honest answer is that a percentage of revenue you have not earned yet is a guess dressed up as a policy. In year one the revenue line is the least reliable number in your plan.

We prefer to list the jobs marketing has to do and cost each one. Before opening, people need to know you exist. In the first six months, first visitors need a reason to come back. By year two, regulars need a reason to bring friends and the trade needs a reason to stock you. Each of those is a different task with a different cost.

Once the jobs are costed, check the total against your cash plan in your first-year cash flow. If the two disagree, the cash plan wins and you cut jobs, not quality.

What you cannot buy in India

Direct advertising of alcohol is restricted in India, so the paid playbook a soft drinks brand uses is mostly closed to you. Social platforms also limit alcohol promotion and expect age gating. That shapes the budget more than anything else.

The money goes instead into things you control: the taproom itself, events, food, photography, your own channels, packaging and the people behind the bar. A brewery that understands this early stops wasting money on boosted posts that get rejected or reach the wrong city.

The pre-opening budget

Plan this as a one-off block spent over the eight to twelve weeks before the doors open. Typical lines:

• Brand identity: name checks, logo, tap handles, menus and signage.
• Photography and short video of the brewhouse, the team and the first beers.
• Website with an age gate, opening hours, menu and a booking link.
• Soft opening nights for neighbours, local food writers and nearby offices.
• A launch event, with a budget for beer given away that is costed at your real cost per litre.

Keep a contingency inside this block. Licences in India rarely land on the planned date. Every week of delay can mean reprinting dated material or rebooking a launch.

Year one: a monthly base plus campaigns

Split the year-one money into a steady monthly base and a few planned campaigns. The base pays for content, community management, small weekday events and staff time spent on marketing. Campaigns sit on the calendar where demand already peaks: the festive months, New Year, big cricket and football tournaments and the start of summer.

Each new beer is also a small campaign. Our guide to launching a new beer covers how to build a release around a single tank so it earns attention without a large spend.

Write down one number you expect each line to move: weekday covers, repeat visits, growler fills or followers in your own city. If a line has no number, it is decoration.

Costs founders forget to count

The cash you pay agencies and printers is the visible part. Several other costs belong in the same plan.

• Free beer. Samples, launch pours, collaboration kegs and the round on the house for a food writer all cost real money. Cost them at your cost per litre, including excise. Then give one person a monthly allowance to manage.
• Staff time. A brewer leading a Saturday tasting is not brewing. A manager writing posts at midnight is a cost even if no invoice arrives.
• Discounts. Happy hours and offers are marketing paid for in margin. Check what your state allows on liquor promotions before you print anything.
• Merchandise. Glasses, T-shirts and growlers sell, but stock that sits in a cupboard is cash you cannot use.

Put all of these on the budget sheet. A brewery that only tracks agency invoices usually thinks marketing is cheaper than it is.

Year two: shift money towards retention and trade

By the second year the taproom should be known in its neighbourhood. Spend shifts from awareness to keeping regulars and selling outside your own walls. Loyalty schemes, a mug club, brewer-led tastings and collaborations with local kitchens usually earn more than another round of launch-style noise.

If you start supplying kegs to other venues, part of the budget becomes trade marketing: tap badges, staff training sessions at accounts, table talkers and sampling. These costs belong in the marketing plan, not hidden in sales.

Track it every month

A simple sheet is enough: planned spend, actual spend and the number each line was supposed to move. Review it on the first Monday of each month. Cut what moved nothing for three months running and put that money into what worked.

This is where most founders feel the gap. Spending is easy. Knowing which post, event or offer brought people through the door needs a little structure in how you run campaigns and read the data. That is a skill worth learning before the money goes out.

Common questions

How much should a new brewpub spend on marketing?

We build the figure from costed tasks rather than a fixed percentage, then check it against the cash plan. Pre-opening spend is a one-off block and year one runs as a monthly base plus campaigns.

Can a brewery run paid ads in India?

Direct alcohol advertising is restricted and platforms limit alcohol promotion, so most spend goes into the taproom, events, food, content and your own channels. Check current platform rules before spending.

What should change in year two?

Money moves from awareness towards retaining regulars and supporting trade accounts if you sell kegs outside your own venue.

How do I know if marketing is working?

Give each budget line one number it should move, such as weekday covers or repeat visits. Review it monthly. Cut lines that move nothing for three months.