18 Oct Brewbound Article – Beer Business Finance: Breaking Down the Taproom-Focused Brewery Model
based on a Brewbound article, originally published on Oct. 12, 2018
Brewbound has a great article out now concerning the financial issues involved in opening a brewery which will focus on the ultra-local market – doing all, or nearly all, direct-to-consumer sales. Brewers using this model or considering this type of investment should check out this article to help them understand the moving pieces that can determine whether this model is sustainable.
Many fixed and variable costs and other financial factors that can make or break a brewery are defined and explained in this article. Brewery owners are going to know these already, but the way they can affect a bottom line as they shift back and forth is discussed in good detail. For the craft beer drinker who wants to know more about what their local brewer is going through in order to make their business a going venture, this piece will be quite the education.
Check out Kary Shumway’s entire article here, and be sure to check out the comments. One insightful comment correctly points out that many of the loan numbers estimated for nano- and micro-breweries are high, leading to an over-estimation of the principal and interest effect on profitability.
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