In 2016, the beer consumption slightly decreased, the prices also slightly decreased. Unfortunately, they increased in mid-2017. Most people wonder what affects the price of beer. One would normally think of an ingredients price and production cost effect. In fact, it’s only a fraction of the cost, while the taxes and costs associated with marketing have a huge impact on prices.
When analyzing the costs incurred for the production of brewery, one shall distinguish the industrial and craft methods. Expenditure related to the first method should include a variety of costs linked to the production process, as well as marketing and transport. In calculating the factors affecting the price, the cost of producing the brewery, which accounts for about 37%, should be stated first. These comprise purchase of raw materials, the costs of production, including employee wages, costs incurred for energy used, depreciation of machinery, etc.
The beer from vats must be poured into the packaging, it’s another cost. Here you also need to mention an attractive label that you should design and manufacture, and it also bears costs. The finished product needs to be transported to wholesalers and shops, which also affects the charges incurred. It is also important to advertise what is vital now for each product to sell. Of course, this all will gain you popularity and generate more sales, yet it will cost a lot. Most of the costs are commercial margins, plus VAT, excise tax and CIT.
Production of beer in the microbrewery
The cost of beer production is slightly different in microbreweries. In this case, the beer production line is used providing for the highest quality beer. The cost of mechanical inspections is minimal. Freshly brewed beer has an exceptionally good flavor and is gaining popularity. Machines in the mini brewery can produce up to 270 liters of beer per day, which makes about 500 pints. Beer is produced here by the craft method and the very production process will be a bit more expensive than if produced industrially. On the other hand, we face costs for advertising, or transport costs to shops and wholesalers. Minor entrepreneurs will pay a smaller excise tax for brewing beer in the microbrewery than it’s requested for beer produced at a large industrial brewery. In order to settle with the tax authorities, the current measurement of tanks and the verification of measuring instruments are important. Measurements are made by the Office of Measures and Weights.
Comparing different methods of beer production, one may claim the price is influenced by many factors related to the production process as well as the tax policy.
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