Craft breweries made an average of $1,511.35 in total revenue per barrel of beer sold in 2023, according to the Brewers Association’s (BA) financial benchmarking survey.
While the financial benchmarking survey is typically conducted biannually, this is the first to be released by the BA since 2019 (then detailing 2018 data), due to the COVID-19 pandemic.
Total revenue includes beer, food, non-beer beverages, merchandise and other sales. Total revenue data was not shared for 2018. Note that averages can be impacted by outliers.
2023 survey respondents in the 25th percentile (total revenue above 25% of survey respondents) reported a total revenue of $453.78 per barrel. Those in the 75th percentile (total revenue above 75% of survey respondents) reported total revenue of $1,714.29 per barrel.
For beer-only revenue, the BA broke out data into direct-to-consumer (DTC) revenue, distributed beer revenue, and total beer revenue for breweries that did not break out numbers. The average beer revenue for breweries who did not break out data (100 respondents) was $864.40 per barrel, an increase of $183.70 versus 2018 (average of $680.70 per barrel, from 48 respondents).
The 25th percentile reported revenue of $402.81 per barrel in 2023, an increase of $43.09 versus 2018 ($359.72 per barrel). Those in the 75th percentile reported beer revenue of $1,194.23 per barrel, an increase of $333 versus 2018 ($861.23 per barrel).
Seventy breweries broke out DTC beer revenue, averaging $1,276.14 per barrel, an increase of $57.02 versus 2018, when 37 breweries reported average DTC beer revenue of $1,219.12 per barrel. Breweries in the 25th percentile reported DTC beer revenue of $1,062.60 per barrel (up from $1,036.26 in 2018), while those in the 75th percentile reported revenue of $1,500.97 (up from $1,388.11).
Sixty breweries broke out distributed beer revenue, averaging $602.02 per barrel, an increase of $205.83 versus 2018, when 36 breweries reported average distributed beer revenue of $396.19 per barrel. Breweries in the 25th percentile reported distributed beer revenue of $318.02 (up from $278.15 in 2018), while those in the 75th percentile reported revenue of $548.14 (up from $432.54).
The 2023 survey was expanded to include revenue from “non-beer beverages,” which average about 6% of surveyed breweries’ total revenue. Non-beer beverages contributed an average of $44.03 in revenue per barrel of beer sold, ranging from $0.76 (25th percentile) to $128.54 per barrel (75th percentile).
The BA also added more details on how many SKUs breweries had in distribution, and the share of sales coming from their home states versus out-of-state.
Craft breweries that produced 0-999 barrels of beer in 2023 (62 respondents) had an average of 25 SKUs in distribution, ranging from about 10 SKUs (25th percentile) to 30 SKUs (75th percentile). Small breweries had an average of one distributor partner and distributed to about one state.
Craft breweries that produced between 1,000 and 9,999 barrels of beer in 2023 (35) had an average of 25 SKUs in market, ranging from about 10 (25th percentile), to 36 (75th percentile).
Those breweries had an average of three distributor partners, increasing to six in the 75th percentile, and distributed to an average of two states.
Craft breweries that produced 10,000 barrels of beer or more in 2023 (25) distributed an average of 49 SKUs, ranging from about 20 (25th percentile) to 36 (75th percentile). The largest breweries average 25 distributor partners, and a network of 12 states. However, the 25th percentile reported as little as eight distributor partners and a network of three states.
Sales in surveyed breweries’ home states contributed an average of 97% of breweries’ total sales. When including only breweries that have multi-state distribution, that percentage declines to 89%, with 8% coming from sales in their second largest state, 2% from the third and 1% from the fourth.
In the own-premise, craft breweries average a total of 201 seats (including indoor and outdoor seating), ranging from about 85 seats (25th percentile) to 230 (75th percentile). Breweries sold an average of 4.1 barrels onsite per seat (1.9 barrels for the 25th percentile, 4.7 barrels for 75th the percentile).
Merchandise revenue was one of the few categories to fall below 2018 benchmarks. Merchandise contributed an average of $44.03 per barrel in revenue in 2023, ranging from about $6.51 (25th percentile) to $48.02 (75th percentile). In 2018, merchandise contributed about $68.90 per barrel, ranging from about $15.28 (25th percentile) to $71.42 (75th percentile). The cost of goods sold (COGS) for merchandise averaged $17.89 per barrel in 2023. Merchandise COGS were not shared in 2018.
The average cost to brew beer in 2023 was $501.90 per barrel, according to data from 101 respondents. COGS for beer was not totaled in 2018. Brewing materials cost an average of $163.93 per barrels, up from $137.69 in 2018 (44 respondents).
Direct labor (excluding administration, sales and marketing employees) cost an average of $121.10 per barrel in 2023, significantly more than the $85.60 per barrel average in 2018. Those in the 25th percentile recorded direct labor costs of $42.86 per barrel in 2023, while those in the 75th percentile averaged $150.94 per barrel.
Beer production overhead, including cleaning supplies, repairs and maintenance, equipment or property leases, transportation, and other direct utilities, cost brewers an average of $153.87 per barrels in 2023, up slightly from $25.63 in 2018. Those in the 25th percentile paid an average of $42.86 per barrel in 2023, while those in the 75th percentile paid an average of $205.88 per barrel.
Federal excise taxes decreased versus 2018, averaging $3.40 per barrel, down from $4.24 per barrel in 2019. State excise taxes increased slightly, from $6.03 per barrel in 2018, to $6.28 per barrel in 2023.
The 2023 survey separated other COGS into taproom/brewpub costs, operating and selling costs, wholesale costs and general and administrative costs. The 2018 survey bundled selling, general and administrative expenses, and did not detail other COGS.
Taproom and brewpub COGS average $373.60 per barrel in 2023, ranging from about $12.67 (25th percentile) to $317.44 (75th percentile). Food materials cost an average of $159.70 per barrel, but ranged more significantly (25th percentile $0, 75th percentile $208.99). Food labor, including kitchen and service staff salaries, wages, benefits and payroll taxes, cost an average of $184.86 per barrel.
Wholesale COGs averaged $18.54 per barrel, ranging from about $0 (25th percentile) to $31.75 (75th percentile).
Operating and selling COGS cost brewers an average of $309.39 per barrel, ranging from about $62.09 (25th percentile) to $419.69 (75th percentile). Direct sales marketing, including print and TV advertising, cost an average of $8.80 per barrel. Festivals cost an average of $3.45 per barrel.