# Brewery Model Build a brewery financial model with detailed unit economics, dual-channel revenue (taproom and wholesale), brewing equipment capex, and per-barrel margin analysis. No need to force a generic restaurant template. - Canonical: https://finamodel.com/templates/brewery-model - Excel download: https://finamodel.com/templates/brewery.xlsx - Category: Consumer - Model type: Operating model - Difficulty: Beginner - Audiences: Founders & operators, CFOs & FP&A, Brewery owners, Beverage investors, CPG analysts, Equipment suppliers - Tags: beverage, manufacturing, operations, channel mix, CPG ## Overview A craft brewery financial model projects revenue across wholesale (kegs and packaged), taproom (direct-to-consumer), and contract brewing channels, modelling production capacity constraints, channel-specific margins, and the profitability impact of shifting mix toward higher-margin taproom sales. The model answers what EBITDA margin is achievable given the brewhouse capacity ceiling, what working capital and debt the business can support, and when the brewery reaches free cash flow positive given capex requirements. Revenue is driven by sellable barrel volumes (limited by brewhouse batch cycle, uptime, and shrinkage), channel mix (35% kegs, 40% packaged, 55% taproom in year 1, shifting over time), and price per barrel by channel ($175/BBL kegs, $155/BBL packaged, $350/BBL taproom equivalent). COGS includes raw materials ($35/BBL), packaging ($45/BBL for wholesale only), excise tax ($7/BBL federal rate), and direct labour (12% of COGS subtotal). Gross margin is 42–48% on wholesale and 78–83% on taproom, with blended margin improving from 62% to 65% as taproom mix grows. Operating expenses include rent, salaries, utilities, marketing (2.5% of revenue), insurance, maintenance (3% of PP&E), and G&A. The model tracks a 7-year straight-line principal amortisation on an equipment loan ($910K at 8.75%), and includes DSCR covenant monitoring (lender requirement 1.25x minimum). Working capital is positive given inventory build (45 DIO) and sales AR (25 DSO). SBA lenders, craft breweries seeking to expand, strategic beverage companies, and hospitality PE sponsors use brewery models to size equipment loans, stress test revenue around beer price commodity volatility, and project when taproom customer loyalty can support store expansion. ## What's included - Production capacity and utilisation forecast - Taproom retail vs wholesale distribution revenue build - Gross margin per barrel analysis by beer style - Brewing equipment capex and depreciation schedules - Excise tax, packaging, and spoilage mechanics - Brewing capacity and utilization by production run - Cost per barrel: raw materials, packaging, labor, and overhead allocation - Product mix: house beers, limited releases, contract production - Revenue channels: taproom, wholesale, distribution, and direct-to-consumer - Margin analysis by channel and product - Capex for new brewhouse, canning line, or expanded storage ## Inside the Brewery Model: Unit Economics, Cash Flow and Returns This brewery model explains how a craft brewery's unit economics, taproom and wholesale channel mix, brewing equipment capital costs and per‑barrel margins are projected over a five‑year horizon. It shows the operating drivers, calculation flow and outputs of a full three‑statement build, so you can judge whether its structure fits your evaluation of an investment, loan or acquisition decision. Rates and financial results described here reflect illustrative model settings, not industry benchmarks. ### What the Brewery Model Projects The model answers a specific investment question: should you invest in, lend to, or acquire a craft brewery, and what cash return does it produce over five years? - It integrates four revenue streams—wholesale kegs, wholesale packaged cans, taproom direct sales and contract brewing—into a single three-statement structure with a debt schedule and a returns analysis. - The brewery is treated as both a manufacturer and a hospitality operator, because its asset-heavy production economics and its near-100% margin taproom economics must be modelled separately and then summed at the revenue line. ### Operating Drivers: Capacity and Channel Mix Production volume defines the ceiling on revenue. A 15-barrel brewhouse on a 14-day batch cycle at 90% uptime gives roughly 4,745 barrels of maximum annual capacity. - Actual production depends on a utilisation rate that rises from 40% to 80% across the projection, and sellable volume is reduced by shrinkage. Total capacity used includes contract brewing, so actual barrels plus contract barrels must stay within the cap. - On the revenue side, channel mix is a primary margin lever: taproom sales command a higher price per barrel than wholesale, while the wholesale split between kegs and packaged cans reflects distribution development. Contract brewing uses surplus fermentation capacity at a low toll fee to absorb overhead. Price escalation is applied annually, and mix shifts towards the highest-margin channel as the business scales. ### Calculation Flow: COGS, Opex, Capex and Debt Cost of goods sold is built per barrel. Raw materials, packaging and excise duty are applied to the appropriate volumes—packaging only to wholesale, excise to all sold volume—and direct production labour is grossed up as a percentage of those costs. - Operating expenses are semi-fixed and escalated annually, with marketing tied to revenue and repairs tied to gross PP&E. Initial capital expenditure covers brewing equipment, taproom build-out, a canning line and other assets, depreciated straight-line. - An equipment loan with an interest-only period and straight-line amortisation, plus a working-capital revolver, complete the funding side. Interest is calculated on opening balances, avoiding circularity. ### Outputs, Checks and Practical Use The model outputs a full income statement through to net income, with NOL carry-forward, a balance sheet, a cash flow statement and a debt schedule. It also produces returns metrics including IRR and MOIC under different utilisation and exit multiple scenarios. - A checks sheet validates balance sheet integrity, capacity compliance, debt covenants and margin ranges. Because it tracks DSCR and peak cash trough, the model is practically useful for testing whether a brewery can service its debt while funding growth, and for comparing the cash impact of different channel mixes or capital structures. - The downloadable public file is a values-only preview of the underlying template. ## Built for brewery-specific economics Use this model when production capacity, channel margins, and per-barrel profitability drive the business case. ## Separates taproom from wholesale A useful brewery model tracks the very different economics of high-margin pint sales versus lower-margin distribution volume. ## Cleaner than a generic food and beverage template This gives you brewing-specific logic for production, excise tax, and equipment capex instead of a restaurant model that does not fit. ## Built for brewery-specific economics Use this model when production capacity, channel margins, and per-barrel profitability drive the business case. ## Separates taproom from wholesale A useful brewery model tracks the very different economics of high-margin pint sales versus lower-margin distribution volume. ## Cleaner than a generic food and beverage template This gives you brewing-specific logic for production, excise tax, and equipment capex instead of a restaurant model that does not fit. ## Features - **Channel-specific economics:** Model taproom (highest margin), wholesale (middle margin), and direct-to-consumer separately with realistic fill rates and pricing. - **Production constraints and capacity planning:** Track utilization so you can see when additional brewing capacity is needed and forecast capex timing. - **Raw material cost sensitivity:** Model hops and grain costs separately; see how 20% commodity cost inflation affects margins. ## Use cases - **Expansion planning and capex decisions:** Decide whether to expand the brewhouse, add a canning line, or increase distribution to new regions. - **Product line profitability:** Analyze which beers and channels are truly profitable after overhead allocation. - **Acquisition valuation:** Model the target brewery's production, margins, and growth potential for pricing and integration planning. ## Frequently asked questions ### What is a brewery financial model? It is a model that forecasts production, revenue by channel, per-barrel margins, equipment capex, and operating profitability for a craft brewery. ### Who uses brewery financial models? Brewery owners, F&B investors, commercial lenders, and hospitality consultants use them for planning, lending, and investment analysis. ### What should a brewery model include? It should include production capacity, taproom and wholesale revenue, per-barrel COGS, equipment capex, excise tax, and break-even analysis. ### Does it handle both taproom and distribution? Yes. The model separates revenue streams so you can see the distinct margins, costs, and operating expenses for each channel. ### Can I plan brewing capacity expansion? Yes. The capex schedule supports fermenter additions and equipment upgrades, flowing into the balance sheet and depreciation schedules. ## Related templates - [Food Manufacturing Model](https://finamodel.com/templates/food-manufacturing-model) - [Restaurant Unit Economics and Multi-Unit Model](https://finamodel.com/templates/restaurant-model) - [E-Commerce Unit Economics](https://finamodel.com/templates/ecommerce-forecast-model)