Why craft beer costs so much?

If you’re numbers person here’s how fast Brewie can return your investment.

Craft beer can be expensive, however as you can see from the image below (made specifically for craft beer, it would be completely different for commercial beer), the material price is only about 10% of the MSRP. Now if you’re making your beer at home you can save the excess 90%.

(source: huffington post)

Obviously raw material is more expensive is small quantities – you might say, and you’re right. Also, there’s no labor and equipment cost, also water and electricity is not included, so in the end it’s not 10%. But it’s not much more. Let’s see the whole calculation below:

Let’s say you would like to brew an amber ale. You choose a Brewie Pad called Rusty Rex which is just right for you and you order it for $31.50. This package let’s you brew 20 liters of beer which results in 60 bottles of beer (0.33L/12 oz). If you calculate the per bottle price you’ll get  $0.53. Not bad huh?

If you want to compare it with your local average beer prices you can refer to the chart below:

(source: Business Insider)

As you can see, your beer price is somewhere between 9% and 33% which is not far from our initial calculation and since you used a Brewie Pad this is your end user price.

Now there’s still a few things missing, like the equipment price, utility costs and your labor cost. Let’s say that you bought your Brewie+ for $1999 shipping cost included. Let’s say that you’re charging a $20/hour labor cost and you’re brewing a beer worth $3.5 in your local supermarket.

Adding everything together you’re still facing a $0.7 price which is still 80% off from the local price.

Based on this calculation the machine returns your investment within 12 batches, which is not a bad deal. Here’s your RoI function:

The following chart shows you the price of bottles you brew in function of the batches you made

Interested to see your break-even point? You can download our excel sheet on the following link: http://brewie.org/documents/brewieroi.xlsx

Want to read more about Brewie? Check out one of our most popular article: https://brewie.org/7-reasons-why-you-should-brew-with-brewie/

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