Page 102 - Bord Bia

CONTENTS

STAGE 1

f) Business Model
Continued

(i) BUILD - Understanding your brewery’s break even point

This example shows annual hectolitre (hls) output required to break even with broad
assumptions on ixed costs and margin.

In this case, approximately 3,200 hls or 6,400 kegs of 50L size are required to break even. Fixed
Costs such as rent and utilities are constant regardless of the amount of liquid produced.

Quantity Production Fixed Total Income at Margin
hl/year Cost in Keg Cost Cost €270 / hl

270
2000 220,000 515,000 735,000 540,000 -195,000
3000 330,000 515,000 845,000 810,000 35,000
4000 440,000 515,000 955,000 1,080,000 125,000
5000 550,000 515,000 1,065,000 1,350,000 285,000
6000 660,000 515,000 1,175,000 1,620,000 445,000

102