Beer Cost

To evaluate an employee wage for the brewers consider the following:

Production Quantity

Per 1.5 bbl batch (~45 gals) is equal to ~360 - 16 oz pours at 90% pour efficiency = 324 pints total.

Ingredients

- Grain - ~ 120# at ~$0.80/# = $96

- Hops - ~ 2# at ~$10/# = $20

- Yeast - 100g at $60/500g = ~$12

- CO2 ~ 1/2 tank at $24 = $12

- Cleaning supplies ...minimal

TOTAL material cost $140

$140/324 pints = $0.43 per pint ...not including labor or utilities (electricity, water, HVAC, insurance, etc).

Labor

It takes ~ 9 hr/1.5 bbl batch (6 hr brew day, 3 hr cleaning, kegging, carbonating, etc). At an hourly wage of $10/hour, then this would be an additional $90 per batch expense...making the total cost of a batch (1.5 bbl) $230...or 230/324 = $0.71 per pint.

- at $12/hr labor cost --> $0.77 per pint

- at $13/hr labor cost --> $0.79 per pint

- at $14/hr labor cost --> $0.82 per pint

- at $15/hr labor cost --> $0.85 per pint

Independent of labor cost the markup on draft beer is >80%.

At 80% pour efficiency and $15/hour wage, cost is $0.95 per pint.