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Brewing Agreement

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BREWING AGREEMENT

This Brewing Agreement (Effective Date: ) is entered into by and between:

RECITALS

WHEREAS, Brewery represents that it owns and operates facilities capable of producing malt beverage products in compliance with applicable laws and industry standards and is duly authorized to engage in contract brewing; and

WHEREAS, Client desires to engage Brewery to produce specified beers and related packaging services under Client's brand and according to the specifications and schedules set forth in this Agreement; and

NOW, THEREFORE, in consideration of the mutual covenants herein, the parties agree as follows:

1. SCOPE OF WORK

Brewery shall manufacture, package and deliver beer products according to the specifications, recipes, production schedules and quality standards provided by Client and accepted by Brewery. Services include formulation review, brewing, conditioning, packaging, labeling, storage, and outbound logistics as expressly set forth below.

2. PRODUCTION SPECIFICATIONS

3. PAYMENT TERMS

Client shall pay Brewery for services and goods as set forth in this Section. All payments are due in U.S. Dollars unless otherwise agreed in writing.

Invoices not disputed in writing within ten (10) business days of receipt shall be deemed accepted. Client is responsible for all reasonable collection costs for overdue amounts, including attorneys' fees and court costs.

4. TERM AND TERMINATION

The term of this Agreement shall commence on and continue until unless earlier terminated in accordance with this Section.

Either party may terminate this Agreement for material breach by the other party if the breach is not cured within thirty (30) days after receipt of written notice specifying the nature of the breach. Termination does not relieve Client of payment obligations for services performed prior to termination, including any work-in-progress or committed inventory costs.

5. CONFIDENTIALITY

Each party shall keep confidential and shall not disclose to third parties any proprietary information, trade secrets, recipes, formulations, business plans, pricing, customer lists, or other non-public information of the other party disclosed in connection with this Agreement (Confidential Information). Confidential Information does not include information that is or becomes publicly available other than by breach of this Agreement, or that is independently developed by the receiving party without use of disclosed Confidential Information. Each party shall use at least reasonable care to protect Confidential Information and shall not use Confidential Information except to perform its obligations under this Agreement.

6. INTELLECTUAL PROPERTY; LABELING

Client retains ownership of Client's brands, trade dress, recipes and trademarks. Brewery shall not use Client’s intellectual property except as authorized in writing. Brewery is responsible for ensuring that labels and product claims produced by Brewery comply with applicable law; Client is responsible for providing any required label approvals and indemnifies Brewery for claims arising from Client-provided artwork or label content.

7. INSURANCE AND INDEMNIFICATION

Each party shall maintain commercial general liability insurance and product liability insurance with limits reasonable for its operations. Each party shall indemnify, defend and hold the other harmless from and against third-party claims arising from the indemnifying party’s negligence, willful misconduct, or breach of this Agreement.

8. COMPLIANCE WITH LAW

Each party shall obtain and maintain all permits, licenses and approvals required by applicable federal, state and local laws for performance under this Agreement. Brewery shall comply with all applicable manufacturing, labeling and food safety requirements; Client shall comply with distribution and marketing obligations.

9. GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the state of , without regard to conflict of laws principles.

10. ENTIRE AGREEMENT

This Agreement, including any exhibits and purchase orders incorporated by reference, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings and representations. No amendment shall be effective unless in writing and signed by authorized representatives of both parties.

11. MISCELLANEOUS

If any provision of this Agreement is found to be invalid or unenforceable, the remaining provisions will remain in full force and effect. Neither party may assign this Agreement without the prior written consent of the other, except that Brewery may assign to a successor in interest in connection with a sale of Brewery’s business provided the assignee assumes Brewery’s obligations hereunder.

For Brewery:

By:

Date:

For Client:

By:

Date:

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What a Brewing Agreement Is and When It Applies

A Brewing Agreement is a written contract between two parties that governs production, supply, and commercialization of beer or related fermented beverages. It typically covers scope of production, recipes or specifications, batch sizes, timelines, quality control, pricing, payment terms, intellectual property or recipe ownership, confidentiality, and termination rights. Brewing Agreements are used by contract brewers, brewpubs, co-packers, and suppliers to allocate responsibilities, reduce operational risk, and create enforceable expectations for delivery, acceptance, and payment.

Why a Brewing Agreement Matters for Operations and Risk Management

A Brewing Agreement clarifies responsibilities, protects proprietary recipes, and sets measurable quality and delivery standards to reduce disputes. It helps manage inventory, invoicing, and regulatory compliance, and establishes remedies for late delivery, off-spec product, or intellectual property misuse.

Why a Brewing Agreement Matters for Operations and Risk Management

Who Typically Signs a Brewing Agreement

Brewing Agreements are used by a mix of producers, retailers, and service providers across the beverage supply chain.

  • Contract brewers and co-packers who produce beer under another brand or recipe.
  • Brewpub operators licensing recipes or using shared production facilities.
  • Ingredient suppliers and packaging vendors supplying hops, yeast, cans, or labels.

Parties may include owners, corporate officers, purchasing managers, or authorized agents; the signatory must have authority to bind the organization.

Typical Signatory Roles

Head Brewer

Technical lead responsible for recipe fidelity and production quality. Typically provides specifications, approves batch acceptance testing, and collaborates on production schedules. May not have final contract authority but often signs acceptance certificates or QA forms.

Authorized Executive

Company officer, procurement director, or named agent with legal authority to bind the business. Signs pricing, indemnity, and IP clauses and is responsible for ensuring the agreement reflects company policies and approvals.

Core Elements to Include in a Professional Brewing Agreement

A clear structure reduces disputes and supports enforceability; include measurable obligations and defined remedies.

Scope of Work

Define product types, recipe references, allowable substitutions, and any production limits so parties share one clear baseline for what will be produced.

Production Volume

Specify batch sizes, scheduled quantities, lead times, minimum order quantities, and acceptable variance percentages to avoid supply shortfalls.

Delivery & Acceptance

Set delivery terms, inspection periods, sampling methods, and acceptance criteria including corrective actions for out-of-spec batches.

Pricing & Payment

State price per unit, invoicing cadence, payment terms, late fees, and consequence for missing required tax or duty obligations.

Quality Control

Describe testing protocols, responsibility for failed batches, hold/rework procedures, and who pays for QC testing.

IP & Confidentiality

Clarify recipe ownership, license grants, confidentiality obligations, and permitted use of brand and marketing materials.

Security and Compliance Considerations

Encryption: AES-256 at rest, TLS 1.2/1.3 in transit
Audit Trail: Immutable signing history and timestamps
Access Controls: Role-based permissions and SSO/SAML support
Authentication: Email, SMS, or advanced signer verification
HIPAA BAA: Available where health data applies
Certifications: SOC 2 Type II and ISO 27001

Step-by-Step: How to Complete and Execute a Brewing Agreement

Follow these sequential tasks to prepare, approve, sign, and archive the agreement efficiently.

  • 01
    Draft: Populate scope, volumes, price, and dates clearly.
  • 02
    Review: Legal and QA review for IP and safety clauses.
  • 03
    Sign: Authorized parties sign with date and title.
  • 04
    Archive: Store executed copy and audit trail securely.

How to Configure a Digital Workflow for This Agreement

Set up the signing order, authentication, and notifications before sending to avoid delays.

Field Configuration
Signing Order Sequential signer order with final approval step
Authentication Method Email link or SMS code for guest signers
Notifications Automatic reminders at specified intervals
Template Variables Pre-fill batch sizes, prices, and dates

Typical Routing: From Draft to Counterparty Acceptance

A predictable routing path ensures accountability and a complete audit trail for each stage.

  • Prepare Document: Upload final draft and place signature/initial fields.
  • Send to Counterparty: Provide signer email and expected sign-by date.
  • Counterparty Signs: Counterparty authenticates and signs digitally.
  • Confirm & Archive: All parties receive executed copy and audit record.

Digital Signing and Distribution Considerations

Choose a platform that supports secure e-sign, audit trails, and the file formats you use.

  • File Types: PDF, DOCX, and export to PDF/A
  • Integrations: CRM and storage connectors for automatic archiving
  • Authentication: Email, SMS, KBA, and SSO options

Confirm retention policies, access controls, and any industry addenda before finalizing distribution workflows.

Key Dates and Timing to Track in the Agreement

Explicit dates and intervals reduce ambiguity around deliveries, payments, and termination rights.

Effective Date:

Agreement start date for obligations and warranties

Production Schedule:

Delivery windows and lead times per batch

Payment Due Date:

Invoice terms and late payment penalties

Warranty Period:

Timeframe for claims on product quality

Termination Notice:

Advance notice required to end the agreement

Common Mistakes That Cause Disputes

  • Leaving recipe ownership ambiguous or using vague IP language that invites conflict.
  • Failing to specify units, tolerances, or acceptable variance for batch sizes and measurements.
  • Omitting acceptance testing procedures, creating disagreement over off-spec product handling.
  • Allowing unauthorized signatories to execute agreements without documented signing authority.

Potential Consequences of an Incomplete or Incorrect Agreement

Breach Damages: Monetary liability
Lost Inventory: Replacement and disposal costs
Regulatory Risk: Fines or recalls
Quality Claims: Customer refunds or penalties
Payment Disputes: Collection and legal fees
IP Leakage: Trade secret exposure

Real-World Examples of Digital Contracting for Beverage Production

These examples illustrate how organizations used digital signing and templates to speed execution and improve compliance.

Optica Ventures LLC

Optica standardized templates across teams to reduce drafting time.

  • The interface is simple and easy-to-use for our team.
  • The result was faster counterparty turnaround and fewer signature errors, helping Optica keep production on schedule and maintain customer satisfaction.

Martin Properties

A small operator moved lease and supply agreements online to avoid in-person signings.

  • I can process and execute all of these documents online with 100% compliance and built-in security.
  • That shift eliminated travel delays, improved recordkeeping, and allowed the team to focus on operations rather than manual paperwork.

eSignature Vendor Comparison for Brewing Agreement Workflows

Compare starting prices and key features across common eSignature vendors; signNow is listed first for reference.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial, no credit card Varies by plan Varies by plan Varies by plan Varies by plan
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

FAQs and Troubleshooting for Brewing Agreements

Answers to common legal, execution, and recordkeeping questions when preparing or signing a Brewing Agreement.


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