1. The wait is over! Download the BeerAdvocate app on iTunes or Google Play now.
  2. Get 12 issues / year of BeerAdvocate magazine for only $9.99!

For all you industry folks, how much does a brewery make in profit on one barrel?

Discussion in 'Beer Talk' started by sandiego67, Feb 12, 2013.

  1. kzoobrew

    kzoobrew Champion (840) Michigan May 8, 2006

    How many times does it come up in conversation in this site where people are speculating what breweries are making on certain beers, especially limited releases? People just go off assuming the breweries are either just raking in the money or sticking it to the consumers because they know they can. Having a rough idea about how the breweries operate could honest improve the advocacy.

    No one is asking for detailed numbers from specific breweries. This was simply a general request for generalized information. It may be improper to ask for specifics but there is nothing wrong with the question as asked.
     
  2. Crusader

    Crusader Savant (345) Sweden Feb 4, 2011

    Is that down to a combination of increased sales overall (and more consumers of craft beer) and price increases? I'd imagine that in a low-tax environment dominated by sales by the big guys with economies of scale behind them that offer multipacks at discounted prices, it's hard for small-scale producers to be competitive and profitable. But once the consumer base for such products expands and the willingness to pay premium prices increases (and with prices overall nudging upward) their business model becomes more sustainable. That would be my interpretation of what has happened at least.
     
  3. Most of the figureheads or public fronts are not the actual brewers for the company. Just sayin'.
     
  4. oregone

    oregone Savant (375) Oregon Jul 2, 2008

    You mean... Santa isnt real? :(
     
  5. That's because I'm not conversant with US barrels. I know you still use the "short pint"
    A barrel to me is 36 gallons or 288 Imperial pints so 5000 UK barrels would be 1 440 000 pints.Which is, believe it or not, between 1 and 2 million!
    I knew a guy who ran a small but successful micro brewery. He said thet he worked all the hours God sent and then some more and earned less than a Walmart cleaner!
    5000 barrels a year is actually a respectably sized micro brewery.
     
  6. patto1ro

    patto1ro Advocate (500) Netherlands Apr 26, 2004

    Depends which size barrel you're using. 5,000 36-imperial-gallon barels is 1.44 million imperial pints.
     
  7. In the UK the smaller breweries actually have a tax advantage; under a certain volume the duty payable when the beer leaves the brewery is halved.What they don't have is the economies of scale enjoyed by larger concerns.
     

Share This Page