Wednesday, April 28, 2010

Beer Math

I was thinking about this while in the shower today.....

1,000 Bbls of brewery production = almost $1 million in revenue at bar prices.

1 bbl = 31 gallons
1 gallon = 8 pints
1 pint = $4 (most brewpubs charge $4.25 here in Denver ($4.60 including sales tax), or $3-4 during happy hour).

So, 1 bbl = 248 pints, 248 pints = $992 and 1000 barrels adds three zeros for $992,000.

If it costs 50 cents a pint for materials and energy and you can keep your rent, taxes, other labor (besides your own if any), and equipment costs around 50 cents as well (that part is a WAG for this exercise), your production costs equal roughly $248,000.

Profits therefore theoretically could be almost $750,000 per year.  Of course, you would need to sell all the beer you make, which would equal 248,000 pints....if you were open 12 hours per day, 250 days a year, you would have to sell 82 pints per hour (every hour).

What are the physical limitations to a one or two man operation operating a 5 barrel system?  To reach the 1000 bbl mark, you would have to brew 4 times per week....not un-doable, but also selling 80 pints an hour?

OK to re-figure on 500 bbl and 20% waste would be $496k in revenue, $125k production, $100k in waste/loss =$271,000....brewing twice a week....selling 480 pints a day.

I have too much time on my hands.  Who wants a beer?

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