![How to plan and track the budget of your craft beer brand [template]](http://onlineyougrow.com/cdn/shop/articles/cov-budget-7_3b1021df-5adc-434e-b1aa-f967b072b157.png?v=1715856447&width=1100)
If you don’t plan and track your craft beer budget properly, you're setting yourself up for failure.
When we developed our strategy pack for craft beer brewers, we saw a lot of brewers struggling with finances and planning.
They were disorganized, had no grasp of cash flow, and were drowning in financial troubles despite having substantial sales.
Don’t let this be you—stand out and succeed.
We’ve created a small, free tool to help you get started: our Budget Tracker and Planner. Let’s turn your brewery's finances around and set you on the path to success!
Get the budget tracker tailored for craft beer brands
Most craft beer brand founders don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for craft beer brands
Here is an example of a (very) detailed budget for a craft beer brand, to give you some inspiration
1. Rent and Utilities
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Rent | Lease for brewery space | $4,000 | $48,000 |
| Electricity | Power consumption for brewing equipment | $1,200 | $14,400 |
| Water | Water usage for brewing and cleaning | $500 | $6,000 |
| Gas | Gas for heating and brewing processes | $400 | $4,800 |
| Internet & Phone | Internet service and business phone | $100 | $1,200 |
| Waste Removal | Garbage and recycling services | $150 | $1,800 |
| Pest Control | Monthly pest control services | $75 | $900 |
| Insurance | Property and liability insurance | $600 | $7,200 |
2. Salaries & Wages
| Position | Number of Employees | Monthly Cost per Employee | Total Monthly Cost | Annual Cost |
|---|---|---|---|---|
| Head Brewer | 1 | $5,000 | $5,000 | $60,000 |
| Assistant Brewer | 2 | $3,000 | $6,000 | $72,000 |
| Packaging Staff | 3 | $2,500 | $7,500 | $90,000 |
| Sales Representative | 2 | $3,500 | $7,000 | $84,000 |
| Taproom Staff | 4 | $2,000 | $8,000 | $96,000 |
| Manager | 1 | $4,000 | $4,000 | $48,000 |
3. Brewing & Packaging Costs
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Raw Materials | Hops, malt, yeast, etc. | $8,000 | $96,000 |
| Packaging Supplies | Bottles, cans, labels, etc. | $3,500 | $42,000 |
| Cleaning Supplies | Sanitizers, detergents, etc. | $300 | $3,600 |
| Maintenance Supplies | Tools, spare parts, etc. | $200 | $2,400 |
| Quality Control | Lab testing and equipment | $500 | $6,000 |
4. Marketing & Advertising
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Online Advertising | Google Ads, Facebook Ads, etc. | $400 | $4,800 |
| Social Media Management | Managing social media accounts | $600 | $7,200 |
| Print Advertising | Flyers, posters, magazine ads | $250 | $3,000 |
| Website Maintenance | Hosting, domain, updates | $150 | $1,800 |
| Email Marketing | Email campaigns and newsletters | $200 | $2,400 |
| Promotional Events | Special events and beer festivals | $300 | $3,600 |
5. Miscellaneous Expenses
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Equipment Maintenance | Regular maintenance of brewing equipment | $600 | $7,200 |
| Uniforms | Staff uniforms and safety gear | $250 | $3,000 |
| Licenses & Permits | Brewing permits, liquor licenses, etc. | $150 | $1,800 |
| POS System | Point of Sale software and hardware | $200 | $2,400 |
| Contingency Fund | Emergency repairs and unexpected costs | $500 | $6,000 |
| Office Supplies | Stationery, pens, printer ink, etc. | $100 | $1,200 |
| Staff Training | Training programs and materials | $300 | $3,600 |
Some craft beer brands make 5x more profit than you!
We have studied the strategies of the best craft beer brands in the world. Replicate them now!
What are the biggest expenses for a craft beer brand?
Watch out for these budget busters. Here are five major costs every craft beer brand owner needs to consider, along with some tips on how to manage them effectively.
- Raw material costsIngredients like hops, malt, and yeast can take a significant portion of your budget. Prices can vary based on seasonality, supply chain disruptions, and quality. To keep these costs under control, focus on bulk purchasing, negotiate better deals with suppliers, and minimize waste. Be cautious of overspending by buying too much or opting for premium ingredients that don’t significantly enhance your product.
- Staffing your breweryYour team is essential, but wages, benefits, and training can be costly. This expense is always high because you need skilled employees to ensure quality production and smooth operations. Optimize labor costs by efficient scheduling, cross-training staff, and monitoring productivity. However, avoid underpaying or overworking your team, as this can lead to high turnover and decreased morale.
- Facility rent and utilitiesPrime locations come with high rent, but they can attract more customers and distributors. Utilities like electricity, water, and gas are necessary but can add up quickly. To manage these costs, negotiate favorable lease terms and invest in energy-efficient brewing equipment and lighting. Overspending often occurs when you choose a facility that's too large or too extravagant for your needs.
- Marketing and promotionsGetting the word out about your craft beer brand is crucial, but advertising can be expensive, whether it's online ads, social media campaigns, or traditional media. Optimize this expense by focusing on cost-effective methods like the ones we recommend. Overspending can happen if you invest in flashy campaigns without a clear return on investment.
- Brewing equipment and maintenanceThis includes everything from brewing tanks to bottling lines. These are costly because quality equipment and regular maintenance are essential for consistent production and customer satisfaction. Optimize by investing in durable, energy-efficient equipment and maintaining it regularly to avoid costly breakdowns. You can overspend by going for the latest high-tech gadgets you don’t really need.
How to spend less with your craft beer brand?
Here are practical tips to help you, as a craft beer brand owner, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Raw Materials | Source hops, malt, and other ingredients from local suppliers to reduce costs and ensure freshness. |
| Labor Costs | Utilize scheduling software to optimize brewery staff hours and minimize overtime. |
| Utilities | Invest in energy-efficient brewing equipment and LED lighting to cut down on utility bills. |
| Marketing | Run social media campaigns for your craft beer and collaborate with local influencers and beer bloggers for organic exposure. |
| Cleaning Supplies | Train staff on the efficient use of cleaning agents to minimize waste and maintain hygiene standards. |
| Equipment Maintenance | Keep a maintenance log for regular checks and servicing of brewing equipment to avoid costly repairs. |
| Rent/Mortgage | Negotiate lease terms during renewal or consider relocating to a more cost-effective space. |
| Insurance | Review your insurance policies regularly to ensure they meet your current needs and compare rates annually. |
| Packaging | Opt for cost-effective, eco-friendly packaging solutions and offer discounts for customers who bring their own growlers. |
| Glassware | Invest in high-quality, durable glassware that can withstand frequent use and washing. |
| POS System | Choose a POS system that offers essential features with low transaction fees and integrates seamlessly with your inventory management system. |
| Staff Training | Conduct regular in-house training sessions and utilize free online resources to keep your team knowledgeable and efficient. |
| Waste Management | Implement a waste tracking system to minimize waste and consider donating spent grain to local farmers. |
| Technology | Invest in multi-functional brewing equipment and utilize brewery management software for inventory and order tracking. |
| Merchandise | Partner with a cost-effective supplier for branded merchandise and consider limited edition runs to create demand. |
| Label Printing | Use digital label printing services to reduce costs and allow for quick updates to your designs. |
| Licensing and Permits | Stay up-to-date with local regulations to avoid fines and costly renewals. |
| Transportation | Plan delivery routes efficiently to maximize fuel savings and reduce transportation costs. |
| Office Supplies | Purchase supplies in bulk and go paperless where possible with digital order systems. |
| Inventory Management | Use inventory management software to track stock levels and reduce spoilage. |
| Pest Control | Schedule regular pest control services and maintain cleanliness standards to prevent infestations. |
| Music and Entertainment | Use a streaming service for background music and host local bands or DJs during special events. |
| Uniforms | Choose durable, easy-to-clean uniforms and offer staff a stipend for maintenance instead of using an external service. |
Copy the tactics of the best craft beer brands in the world!
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Expenses that are just useless for a craft beer brand
Yes, some expenses for your craft beer brand are just unnecessary. They don't contribute to increasing revenue or enhancing the customer experience.
| Craft Beer Expense | Reason It's Useless |
|---|---|
| Fancy Packaging | Overly elaborate packaging doesn't necessarily attract more customers and can be a drain on the budget. |
| Premium Hops | Unless you are targeting a niche market, most customers are satisfied with high-quality but reasonably priced hops. |
| Excessive Beer Varieties | A large variety increases inventory costs and leads to more waste. |
| High-End Brewing Equipment | Top-of-the-line brewing equipment is not always necessary and can be cost-prohibitive. |
| Traditional Advertising | Traditional ads often have a lower return on investment. Don’t include them in the marketing strategy of your craft beer brand. |
| Multiple Label Designs | Having various label designs increases costs without adding significant value to the customer experience. |
| Excessive Staff | Overstaffing leads to higher labor costs without necessarily improving production quality. |
| Premium Subscription Services | Expensive subscriptions for industry magazines or services often go unnoticed by customers. |
| Exclusive Ingredients | Using rare ingredients can inflate costs and complicate supply chains. |
| Costly Tasting Room Furniture | High-end furniture in the tasting room is not always appreciated by customers and can be a significant expense. |
| Custom Printed Glassware | Personalized glassware is a minor detail that most customers overlook, and it can be expensive. |
| Unnecessary Software | Paying for software with features you don’t use is a waste of resources. |
| Premium Water Brands | Most customers are content with filtered tap water, making expensive bottled water unnecessary. |
| Extra Delivery Vehicles | Maintaining a larger fleet than needed increases operational costs. |
| Excessive Membership Fees | Paying for multiple industry memberships often yields little benefit. |
| Overly Frequent Renovations | Constantly updating decor and layout can be costly and disrupt operations. |
| Expensive Tasting Room Decor | Elaborate decor in the tasting room is often ignored by customers and adds to the cost. |
| High-End Promotional Items | Luxury promotional items are prone to damage and expensive to replace, often going unnoticed by customers. |
| Excessive Staff Meetings | Too many meetings can reduce productivity and increase labor costs. |
| Expensive Label Designs | Frequently redesigning labels is costly and often unnecessary. |
| Unused Promotional Materials | Ordering more promotional items than needed leads to waste and unnecessary expense. Get our marketing budget planner template. |
| Paid Directory Listings | Many free listing options are available, making paid listings often redundant. |
| High-End Event Equipment | Specialized event equipment is often unnecessary and adds to costs without a proportional benefit. |
Stop working with a tight budget for your craft beer brand!
Managing a budget for a craft beer brand when funds are tight can feel like an uphill battle. It's like being stuck in a loop where any unexpected expense can throw you off course.
This constant pressure makes it nearly impossible to invest in growth projects, leaving you always scrambling to cover costs. It's a life filled with stress and sleepless nights.
Yes, you can continue down this path, pinching pennies and barely making ends meet. But there's another part of the equation you might be overlooking. Instead of just trying to cut costs, you can focus on growing your revenue. More income means more breathing room and more resources to invest back into your brand.
And no, you don't necessarily have to spend money to grow. There are plenty of zero-cost initiatives and strategies that can help you increase your revenue by 10%, 20%, or more. We've detailed all of these strategies in our guides, after studying dozens of craft beer brands just like yours. Get them now!
Make your craft beer brand more profitable
We have studied the strategies of the best craft beer brands in the world. All their tactics are explained in our pack!
