Unit economics of a keg, a can and a pint
A litre of beer is a different product in a keg, a can and a glass. This guide walks through the costs and the margin of each, using a worked illustration, so you can see where your money is made.
Why unit economics beats the average
Most breweries know their average cost per litre. Fewer know what a litre earns in each format. That matters because the formats carry very different costs and prices. A brewery that sells all three without knowing the split may be subsidising a loss-making format from a profitable one.
Unit economics means working out revenue and cost for one unit of each product. Start with the unit you actually sell: a 30 litre keg, a 330 ml or 500 ml can, a pint in the taproom.
The common base: beer in the tank
All three share the cost of the liquid. That is ingredients, brewing labour, utilities, yield loss and a share of fixed cost. We cover how to build it in cost per litre of beer. For this illustration take a base cost of 60 currency units per litre of finished beer. Those numbers are hypothetical.
From there each format adds its own costs and sells at its own price.
Keg: low packaging cost, long cash cycle
A keg is reusable, so its cost is a deposit, a loss rate and cleaning. Kegs disappear or get damaged. The loss rate belongs in the model. Suppose a 30 litre keg sells to a bar for a net price of 150 per litre, or 4,500. Add 5 per litre for cleaning, gas and keg loss, on top of the 60 base. Contribution is 85 per litre, or 2,550 per keg.
Notice what is not in the number: the time until the bar pays and the cold chain. In a hot climate, beer that sits warm at the outlet degrades. The brand takes the blame. See our guide on beer off flavours.
Can: higher cost per litre, wider reach
A can adds the can itself, the lid, the label or sleeve, the carrier and the filling cost. A mobile canner, if used, adds a per-litre or per-can fee, which you should read in the contract. Say these add 40 per litre for a 500 ml can. With a net price of 220 per litre after the distributor and retailer margin, contribution is 220 minus 60 minus 40, or 120 per litre. That looks better than the keg.
But the can carries costs the keg did not: stock of empty cans, minimum orders, damaged goods and slower sales if the range is wide. Canned beer also sits longer on shelves, so freshness and cold storage matter more.
Pint: the highest price, the heaviest overhead
In your own taproom a 500 ml pint sells at a menu price. Suppose net revenue is 350 per pint, or 700 per litre. After the base cost of 60 and a small allowance for glassware, cleaning and spillage, contribution per litre is very high. But the taproom carries staff, rent, licence costs and a lot of unsold hours.
The pint's contribution must carry the whole venue. Compare it to the other two only after allocating those costs. Our guide on the taproom-only brewery model explains that logic. Remember too that a pint is rarely a full 500 ml of sold beer. Foam, spillage, tasting pours and the free round for a regular all come off the litre you brewed, so measure how many pints you really sell from a keg.
Compare on contribution after the channel's own costs
Put the three side by side: net price per litre, packaging and handling, direct channel cost, contribution per litre and cash days. Then multiply by realistic volumes. A format with a lower contribution per litre may still earn more in total if it moves in volume. Another with a great margin may sell a few cases a month.
Do not average the three. Decide which formats you want more of and why. The point is to choose, not to describe. A brewery that finds its keg business thin might lift the keg price, drop the slowest accounts or shift volume to the taproom. One that finds the can strong might add a second beer in that format. In both cases the table, not a feeling, makes the call.
What to do next
Build one table in a spreadsheet this week. Rows are formats, columns are price, costs, contribution and cash days. Update it when a supplier raises a price. If you want to learn how to build this properly from your own records, the course below teaches it, step by step.
Common questions
Which format is most profitable per litre?
It depends on your costs and your channel. Taproom pints usually have the highest price per litre, but they also carry the venue's costs. Work it out from your own numbers.
Should a small brewery start with cans?
Not necessarily. Draught needs less capital. Start from the channel you can reach and the cash you have.
Do I include keg loss in the cost?
Yes. Kegs go missing and get damaged. Count an annual loss rate from your own records.
Why use contribution rather than profit per unit?
Contribution leaves out fixed costs, which do not change with each unit. That shows which format pays for the overhead.
