Breaking Down Beer Margins

Brewbound.com recently ran the Craft Brewery Finance article Breaking Down Beer Margins complete with links to resources and a short video on how to cost your beer. Enjoy!

The savviest craft brewery owners are constantly on the lookout for creative ways to increase sales. The introduction of unique beer styles, diverse package types and non-traditional offerings often top the list of ways to improve revenue as breweries attempt to satiate consumer demand for new products.

The term “rotation nation” has been used to describe the current state of the on-premise environment: bars and restaurants that routinely swap out ‘old’ beer handles for the latest releases. This phenomenon has compelled breweries to make a wide variety of beers so that they can participate in the rotation game.

But for all the focus on sales growth, innovation and keeping up with rotation nation, how many breweries are paying attention to product margins? Read on...