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Beer Law
Craft beer brewers go head to head with beer distributors
Beeronomics
Because of the expense involved in bottling and canning beer, most small brewers produce beer sold as drafit. Here’s a breakdown of what it typically costs to produce a keg of beer and how that price inflates as a keg moves through Florida’s distribution system:
The Local Brewery
Figuring in raw materials such as grain, hops, yeast, as well as labor and other production costs, a typical brewery can produce a 15.5-gallon KEG OF BEER for about $60. That keg could typically be sold to a distributor for about $90, giving the brewery a $30 PROFIT.
Distributor
Depending on the beer, the distributor will RESELL THAT KEG to retail establishments at anywhere from $130 to $200, yielding the distributor a 44% TO 122% PROFIT.
Restaurant
If a bar or restaurant pays $200 FOR A KEG, which contains 120 pints, and sells each pint for $5, it has made a PROFIT OF ABOUT $400.
