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.

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  1. kzoobrew

    kzoobrew Meyvn (1,167) May 8, 2006 Michigan

    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 Aspirant (224) Feb 4, 2011 Sweden

    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. ShogoKawada

    ShogoKawada Meyvn (1,247) May 31, 2009 Pennsylvania

    Most of the figureheads or public fronts are not the actual brewers for the company. Just sayin'.
  4. oregone

    oregone Disciple (357) Jul 2, 2008 Oregon

    You mean... Santa isnt real? :slight_frown:
  5. marquis

    marquis Crusader (775) Nov 20, 2005 United Kingdom (England)

    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 Zealot (526) Apr 26, 2004 Netherlands

    Depends which size barrel you're using. 5,000 36-imperial-gallon barels is 1.44 million imperial pints.
  7. marquis

    marquis Crusader (775) Nov 20, 2005 United Kingdom (England)

    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.
  8. RichFellows

    RichFellows Initiate (0) Mar 13, 2011 Connecticut

    That's a good read, thanks.
  9. RichFellows

    RichFellows Initiate (0) Mar 13, 2011 Connecticut

    I think they are working on something like that in the state I live in (Connecticut, US).
  10. CheapHysterics

    CheapHysterics Aspirant (257) Apr 1, 2009 Pennsylvania

    Is it improper to ask how much profit Ford makes on an F-150, or how much the grocery store makes on a pound of apples? Why is the beer industry any different? Maybe it would be better suited for a different forum than beer talk, but that's not the same thing as being offensive/inappropriate to ask.
  11. PA-Michigander

    PA-Michigander Meyvn (1,442) Nov 10, 2013 Pennsylvania
    Beer Trader

    I'm guessing a good answer is: ranges from a little to a lot based on many different scenarios
  12. donspublic

    donspublic Poo-Bah (1,600) Aug 4, 2014 Texas
    Premium Member Beer Trader

    1 barrel = 2 kegs (half barrel)
    1 Keg = 124 pints
    1 Keg = 165 12 oz
    1 barrel = 248 pints
    1 barrel = 330 12 oz

    5000 barrels = 1,240,000 pints
    5000 barrels = 1,650,000 12 oz
  13. Hrodebert

    Hrodebert Aspirant (254) Sep 2, 2013 Michigan

    The Fuck You Say!
  14. skunkpuddle

    skunkpuddle Aspirant (259) Feb 14, 2011 California
    Beer Trader

    Same thing I thought. Such a useless comment.
  15. skunkpuddle

    skunkpuddle Aspirant (259) Feb 14, 2011 California
    Beer Trader

    If you understand that there are a lot of variables then why would you ask such a super vague question. Have you ever run a business before?
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