October 21, 2020

Beer Law

Craft beer brewers go head to head with beer distributors

| 1/2/2014

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.

Tags: Politics & Law, Lifestyle, Manufacturing/Distribution

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