enough to fill a couple of friends and yourself while watching a football match. Estimate Costs of a Keg and a Keg of Beer. Unfortunately, this isn’t the case, and if we were only to sell to customers who always paid their invoices immediately, we’d have hardly any customers.The reality is, there’s probably an additional cost of about 20% that goes into the cash flow issues associated with delivering a product before you get paid for it.Let’s look at how we get to the costs first, then delve into how breweries can make money at all with costs this high.All of our beers are brewed using premium ingredients from quality suppliers, to make sure we achieve a consistent taste and quality that is reflective of our brand.
As casual beer drinkers we often wondered what went into craft beer prices, but before we launched Black Hops we really didn’t know for sure. Since the industry switched to a bag-in-box systems a lot of used Corny kegs can be found on the market. For those of you who are lucky to have your own keg tap at home or work we allow you to hang on to the keg until you're finished, we will just swap the empty keg for a full one next time you order. There will also be additional ingredients depending on the type of beer we are brewing. For years, Cornelius kegs were the same kegs that were used to dispense soda. And what a better way to do it than not letting anyone go home sober?But sometimes, even during these very rare occasions, you would still want to save on cost while everyone is having the time of their life. All kegs require a beer dispensing unit to chill and pour the beer. It’s a question we get asked often and now that we are up and running with a small scale brewery, we can finally say, well, we still don’t totally know for sure.Beer is a scale game, which means the more you make the cheaper it gets. Beer costs change significantly based on the % of the beer, so any of our beers around this ABV would be similar.For the scale we operate at, it’s really not possible to measure absolutely everything. It costs too much to print 9 different labels and 4-packs, at such a small scale.The labour we’ve included in our calculations is just Govs’ time brewing and the bottling line staff. Depends on the beer and the size of the keg. Beer in bottles and cans tend to be very costly and can be very inconvenient come clearing and cleaning time. The volume of ingredients we use can also be more than cheaper beers.Here’s an example of the amount of hops and malt that goes into Beach House compared with a similar ABV lager.All of these factors contribute to a much higher ingredient cost than a mass-produced beer.
For beer, the first 1.15% of alcohol content is free of excise duty.The current rates for excise duty are published by the ATO on their website, but as you can see from the keg price breakdown, it’s a huge portion of the cost. We don’t sell our beer in cartons off-site so it’s not a problem for us. It’s a question we get asked often and now that we are up and running with a small scale brewery, we can finally say, well, we still don’t totally know for sure. For example, our new Summer Hoppy Lager has oats and flaked wheat.
To do fully branded packaging the costs go up considerably.
Realistically more people are required from start to finish to get beer into bottles, but here is a bit of a breakdown of how we’ve calculated the $13.20 labour bottling costs:We use the most basic, no branded bottle caps and on a small scale they are a reasonable cost.Bottles are expensive at our capacity. Mini keg – this is the cutest keg of all which contains five liters of beer or 169.07 oz. We send a monthly email with blog updates and a wrap up of what's happening at Black Hops.
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