Beer cost per liter on a Brewery

[Mastoras007]

Hello everyone.
I'm wondering how much will cost to produce beer in large quantities.
I make some calculations and the results was about 0.63€ per liter, for a batch of 245 liters -20% for losses so final beer 196 liters.
The price i used is the real price i get from local providers.
Example:
Base grain: 1,5€ per kilo
Special grain: 2 per kilo
Hoops:0,02€ per gram
Yeast:0,12€ per gram
This prices is for large quantities buys, but any way this is not the point here.
So i put water cost, co2 for carbonating, electricity cost for boil and mash,
Total cost for those liters (196) is 122€
Do you think is this numbers are real close to the reality?
I'm just saying just the beer cost, not the rent, employee etc

 

[Minbari]

Depends on the company and what they use. We have some cheap beers here (natty light) that is about $11 for a 30 pack (30 12oz cans). Other companies are $12 for a 6 pack

 

[The Brew Mentor]

Hello everyone.
I'm wondering how much will cost to produce beer in large quantities.
I make some calculations and the results was about 0.63€ per liter, for a batch of 245 liters -20% for losses so final beer 196 liters.
The price i used is the real price i get from local providers.
Example:
Base grain: 1,5€ per kilo
Special grain: 2 per kilo
Hoops:0,02€ per gram
Yeast:0,12€ per gram
This prices is for large quantities buys, but any way this is not the point here.
So i put water cost, co2 for carbonating, electricity cost for boil and mash,
Total cost for those liters (196) is 122€
Do you think is this numbers are real close to the reality?
I'm just saying just the beer cost, not the rent, employee etc

You're missing about a million factors.
Other than that, ... Oh nevermind,
Cheers,
Brian

 

[Mastoras007]

Depends on the company and what they use. We have some cheap beers here (natty light) that is about $11 for a 30 pack (30 12oz cans). Other companies are $12 for a 6 pack

No i mean the cost of production

 

[Mastoras007]

You're missing about a million factors.
Other than that, ... Oh nevermind,
Cheers,
Brian

Tell me

Tell me

 

[HighVoltageMan!]

Tell me

Well. Rent, insurance, employees, workman's comp, taxes, interest on that loan you took out to open your "dream" brewery, product loss outside of normal brewing, electric bill, gas bill, maintenance on equipment, maintenance on the building if you own it, loss of kegs, etc.

I got involved with a brewery and realized how many costs were hidden from an average consumer. Yeah, you can make a pint of beer for 50 cents or so, maybe even less if you only include ingredients. But it takes a lot of other things to make it happen. I haven't even looked at the cost of brewing beer at home, but I know if I count only ingredients I can get the cost down to @ $10 for a case of 24. But if you include my labor and the equipment tied up in it, I would be better off going to the liquor store and pay full price.

I'm sure Brian knows better than me the hidden cost, I know I missed some.

Edit: I forgot to mention if you own everything outright, you have a lot of capitol tied up that could be used better elsewhere to make money.

 

[Mastoras007]

Well. Rent, insurance, employees, workman's comp, taxes, interest on that loan you took out to open your "dream" brewery, product loss outside of normal brewing, electric bill, gas bill, maintenance on equipment, maintenance on the building if you own it, loss of kegs, etc.

I got involved with a brewery and realized how many costs were hidden from an average consumer. Yeah, you can make a pint of beer for 50 cents or so, maybe even less if you only include ingredients. But it takes a lot of other things to make it happen. I haven't even looked at the cost of brewing beer at home, but I know if I count only ingredients I can get the cost down to @ $10 for a case of 24. But if you include my labor and the equipment tied up in it, I would be better off going to the liquor store and pay full price.

I'm sure Brian knows better than me the hidden cost, I know I missed some.

Theanks for your detail reply,
Thats what i ask, the beer cost, not all the other facts, i know there are to many and more hiden cost, but now i just want to know if my numbers is close to reality.

 

[The Brew Mentor]

I'm not sure how the cost of the raw material translates into the total end cost?
OK, for shit's and giggles, give me a style of beer with the ABV, IBU's and type of yeast and I'll run some numbers.
Am I figuring out Bud light, or a New England IIPA ?
Brian

 

[Minbari]

No i mean the cost of production

costs of production is reflected in the cost of the product. cant sell it cheaply if it costs alot to make.

so production scale, complexity, and product quality will effect it. in addition to everything @HighVoltageMan! said.

 

[Mastoras007]

I'm not sure how the cost of the raw material translates into the total end cost?
OK, for shit's and giggles, give me a style of beer with the ABV, IBU's and type of yeast and I'll run some numbers.
Am I figuring out Bud light, or a New England IIPA ?
Brian

Is not,
I had a argument past days with a guy and make me thing about it, he claims that the cost per liter is 3,3$ with commercial prices of ingredients and I was surprised,
my calgulation says 0,5€ with NO commercial prices of ingredients, this is a way to big diffrend,
Any way may there are to many factors, in this case i just want to know about the cost just of the beer

 

[Donoroto]

Pure production cost based on just the cost of ingredients is about half a Euro, but that is only about a quarter (or less) of the real cost. Fixed costs are still costs, and if a business ignored them, they will lose money and go bankrupt.

So, both your friend and you are correct!

Total cost per liter can be 3.30, and ingredients might cost .50 per liter.

Does that make sense?

 

[Craigerrr]

Is not,
I had a argument past days with a guy and make me thing about it, he claims that the cost per liter is 3,3$ with commercial prices of ingredients and I was surprised,
my calgulation says 0,5€ with NO commercial prices of ingredients, this is a way to big diffrend,
Any way may there are to many factors, in this case i just want to know about the cost just of the beer

The Brew Mentor could tell you better than anyone here as he operates a brewery.