January 25, 2022

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

 

Florida Business News

Florida Trend Video Pick

Thriving Key West music scene welcomes musicians and tourists alike
Thriving Key West music scene welcomes musicians and tourists alike

Two Key West musicians explain how their town’s music scene has allowed them to make a livable wage. Also, a music historian explains what makes Key West’s music scene a unique place to visit for tourists.

Earlier Videos | Viewpoints@FloridaTrend

Ballot Box

What's your position on offering tax exemptions to attract more commercial space industry business?

  • Opposed to
  • Wildly supportive
  • Cautiously in favor of
  • Don't care
  • Other (Please share your comments in the comment section below)

See Results

Florida Trend Media Company
490 1st Ave S
St Petersburg, FL 33701
727.821.5800

© Copyright 2022 Trend Magazines Inc. All rights reserved.