{
  "slug": "brewery-taproom-vs-distribution-margin",
  "title": "Taproom vs Distribution Margin Calculator",
  "heading": "Brewery Taproom vs Distribution Margin Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/brewery-taproom-vs-distribution-margin",
  "summary": "Compare profit per barrel selling direct in the taproom versus through a distributor.",
  "description": "Selling beer through a distributor means giving up a large slice of margin to the distributor and retailer markup chain before the beer reaches a consumer, while taproom sales capture the full retail price directly, minus taproom operating cost. This calculator compares profit per barrel-equivalent between the two channels: taproom sales at retail pour price minus taproom labor/overhead allocation, versus distribution sales at wholesale distributor price. It's meant to inform capacity allocation decisions, since a brewery that could sell every barrel through its own taproom at 3-4x the effective per-barrel revenue of distribution has a strong incentive to prioritize taproom capacity and treat distribution as an outlet for excess production rather than the primary channel, which is the reverse of how many breweries default to thinking about growth.",
  "formula": "Taproom revenue/bbl = pours/bbl × pour price − taproom overhead/bbl. Distribution revenue/bbl = distributor price/bbl. Profit = revenue − production cost/bbl for each channel.",
  "dateModified": "2026-09-30",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=brewery-taproom-vs-distribution-margin",
  "inputs": [
    {
      "id": "productionCostBbl",
      "label": "Production cost per barrel",
      "kind": "number",
      "hint": null,
      "default": 100,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "pourPrice",
      "label": "Average taproom pour price (16oz)",
      "kind": "number",
      "hint": null,
      "default": 7,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "taproomOverheadBbl",
      "label": "Taproom labor/overhead allocated per barrel",
      "kind": "number",
      "hint": null,
      "default": 90,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "distributorPriceBbl",
      "label": "Distributor wholesale price per barrel",
      "kind": "number",
      "hint": null,
      "default": 210,
      "unit": "$",
      "min": 0,
      "max": null
    }
  ],
  "outputs": [
    {
      "id": "taproomProfit",
      "label": "Taproom profit per barrel",
      "format": "currency",
      "hint": null,
      "primary": true
    },
    {
      "id": "distributionProfit",
      "label": "Distribution profit per barrel",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "taproomRevenue",
      "label": "Taproom gross revenue per barrel",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "advantageMultiple",
      "label": "Taproom profit as multiple of distribution profit",
      "format": "decimal",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Production cost per barrel: 100 $",
      "Average taproom pour price (16oz): 7 $",
      "Taproom labor/overhead allocated per barrel: 90 $",
      "Distributor wholesale price per barrel: 210 $"
    ],
    "outputs": [
      "Taproom profit per barrel: $1,546.00",
      "Distribution profit per barrel: $110.00",
      "Taproom gross revenue per barrel: $1,736.00",
      "Taproom profit as multiple of distribution profit: 14.1"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter production cost per barrel ($).",
      "Enter average taproom pour price (16oz) ($).",
      "Enter taproom labor/overhead allocated per barrel ($).",
      "Enter distributor wholesale price per barrel ($).",
      "Read your taproom profit per barrel on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "productionCostBbl": 60,
        "pourPrice": 4.2,
        "taproomOverheadBbl": 55,
        "distributorPriceBbl": 125
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "productionCostBbl": 100,
        "pourPrice": 7,
        "taproomOverheadBbl": 90,
        "distributorPriceBbl": 210
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "productionCostBbl": 160,
        "pourPrice": 11.200000000000001,
        "taproomOverheadBbl": 145,
        "distributorPriceBbl": 335
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "Why is taproom typically so much more profitable per barrel?",
      "a": "A barrel sold through a distributor passes through distributor markup and retailer markup before reaching the consumer, so the brewery only captures a wholesale price, commonly $180-230 per barrel. The same barrel sold pour by pour in a taproom captures full retail value, often $900-1,100 per barrel worth of pours, even after subtracting taproom labor and overhead."
    },
    {
      "q": "So why do breweries bother with distribution at all?",
      "a": "Taproom capacity is capped by physical space, seating, and local market size, while distribution provides access to a much larger customer base and builds brand recognition beyond the immediate area. Many breweries use distribution for overflow production and off-premise brand visibility even knowing the per-barrel margin is lower, treating it as a growth and awareness channel rather than the most profitable one."
    },
    {
      "q": "How should I allocate taproom overhead per barrel fairly?",
      "a": "Take total monthly taproom labor and operating cost (not including beer production cost) and divide by barrels-equivalent sold through the taproom in that period. This avoids overstating taproom profitability by ignoring the real cost of running the space, which some breweries do when comparing channels informally."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/taproom-pour-cost-glass",
    "https://www.revenuelab.fyi/toolbox/keg-vs-can-margin"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — Taproom vs Distribution Margin Calculator (https://www.revenuelab.fyi/toolbox/brewery-taproom-vs-distribution-margin)"
}