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%/80% pour efficiency = 324 /288 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 $10/hr labor cost --> $90 per batch.

- at $12/hr labor cost --> $108 per batch

- at $15/hr labor cost --> $135 per batch

Total Cost (materials + labor)

- at $10/hr labor, total production cost $230 ($140 + $90)...or $230/324 pints (90%) = $0.71 per pint.

- at $12/hr labor, total production cost $248 ($140 + $108)...or $248/324 pints (90%) = $0.77 per pint

- at $15/hr labor, total production cost $275 ($140 + $135)...or $275/324 pints (90%) = $0.85 per pint

Summary/Conclusion

- 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.

- Currently we are brewing once per week, making a monthly expense of ~($140 x 4) + ($135 x 4) = $1,100 expense. This should generate (4 x 45 gal x 128 oz/gal / 16 oz/pint x $5/pint) ~$6,000 in revenue.