Pro forma!
Successful Pro forma
Cost of goods sold (COGS)
Operating costs
Sales Projections
Cost of goods sold (COGS) Costs associated with producing one
salable item
Gross margin
COGS to sales ratio
Monthly COGS
Monthly revenue
WARNING Math Ahead!
Calculating COGS (the math)
7BBL beer requires 365.2 Lbs. of 2 row pale
malt, which sells for $28 per 50 Lbs. bag
Calculating COGS (continued)
365.2 Lbs. / 50 Lbs. = 7.3 bags and will cost
$204.40 (7.3 x $28.00)
Calculating COGS (continued)
7 BBL will yield approximately 1116 16oz pints (assuming 10% loss to trub and leaks)
Calculating COGS (continued)
$204.40 per batch / 1116 pints = $0.18 per 16 ounce pint
Calculating COGS (continued)
Gross margin = (Retail unit price - COGS) ($3.50 pint - $0.50 COGS) = $3.00 gross profit
Calculating COGS (continued)
COGS to sales ratio = (COGS / sales) x 100 ($0.50 / $3.50) x 100 = 14%
Calculating COGS (continued)
!
Monthly COGS = (COGS x monthly sales) ($0.50 x 500 pints sold) = $250.00
Calculating COGS (continued)
!
Monthly revenue = (Retail unit price x monthly sales) ($3.50 x 500 pints sold) = $1750.00
Calculating COGS (continued)
!
Gross monthly profit = (Monthly revenue – Monthly COGS) ($1750.00 - $250.00) = $1500.00
Operating Costs
Utilities
Lease
Insurance
Professional services
Employee wages
Operating Costs (continued)
Marketing
Income and excise taxes
Equipment maintenance & repairs
Credit card service fees
Shipping & delivery fees
Utilities
Electrical = 20-35 kWh / bbl
Natural Gas = 2-3.7 Thermos / bbl
Water = 6-8 bbl’s water / bbl beer
produced
Refrigeration = 10-20 BTU chiller
capacity / bbl yearly capacity
Direct Fired Brew Kettle =
25,000-30,000 BTU / bbl Cast Wort
Sales Projections
Guess work
Soft science
Will not be perfect
Sales Projections (continued)
Brewers Association May / June edition of New
Brewer
Look for local breweries with a business model and
brewhouse size similar to what you want to open
Talk to local breweries
Don’t hesitate to ask questions
Sales Projections (continued)
Pints
Growlers
Taster trays
Wholesale kegs
20%
2%
8%
70%
Research Resources
jvnw.com/beer/ (Per barrel estimates for utility usage)
http://breweryinsuranceprogram.com/brewery-insurance/ (List of brewery specific insurance packages)
cityfeet.com (Search engine for commercial properties within US)
mercycorpsnw.org (Domestic small business educational resources & micro loans)
https://www.score.org/resources/business-planning-financial-statementstemplate-gallery (Free templates for building financial projections & business plans) 