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Shuie Shuie is online now
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Join Date: Feb 2003
Location: ....down Highway 61
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Are we talking about the retail pricing we pay, what the distributor charges the retailer, or what the supplier/brewery charges the distributor after they pay the federal and state excise tax? There are several levels of pricing and everyone takes a cut. The supplier doesn't really set the pricing at the retail level.

I don't know the rates off the top of my head, but if the beer business is like the spirits business, almost half of the net sales are eaten up by excise tax at the supplier level. Im sure its way more complicated than this, but I would guess Budweiser has to have an army of accountants and MBAs look at their balance sheets, assets & liabilities, PP&E, trademarks, marketing, insurance, logistics & shipping costs, stockholder equity, excise taxes, administrative costs, and the costs of making the sales in order to determine what they need to charge a distributor for a barrel of beer so they can hit their earnings targets and continue to grow.

Budweiser spills more beer during a shift than most breweries make in a year. I don't know exactly how they determine the price they charge a distributor but I can tell you that it can easily cost me $50+ to brew a half barrel of a low gravity rice & corn beer at home w/no excise tax.

Quote:
Originally Posted by RWebb View Post

if all else fails, DIY




Last edited by Shuie; 05-15-2013 at 07:03 AM..
Old 05-15-2013, 06:33 AM
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