Profit Margin in the Beer Business
The profit margin on bottled beer is typically around 75%, while for draft beer it is about 80%.
Brewery Profitability
Factors like specialty beers, direct distribution channels, and taproom sales boost margins.
Profit per Barrel and Keg of Beer
- What is the profit per barrel of beer?
- What is the average profit per keg of beer?
Generally, approximately 1 pint of beer is wasted for every five gallons of beer served. Therefore a full-sized keg (typically 15.5 gallons) holds about 20-25 refills, with a rough estimated average of 2.5 pints of beer wasted from the keg, or about 15% of the beer.
Realistically, you should be able to get at least 130 pints per keg, assuming a standard 16 oz glass and a head of about 3/4 of an inch for the beer. At $4/pint, that’s roughly $520 profit per keg, not counting any day-to-day expenses.
The average cost of a keg of beer can range from $80 to $250, depending on the type of beer and the size of the keg. A standard keg of beer is 15.5 gallons, which is equivalent to 165 12-ounce servings. The cost per serving can range from $0.50 to $2.00, depending on the cost of the keg and the price you charge for each serving.