{
  "slug": "keg-vs-can-margin",
  "title": "Keg vs Can Margin Calculator",
  "heading": "Keg vs Can Packaging Margin Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/keg-vs-can-margin",
  "summary": "Compare profit per barrel between kegging and canning the same batch.",
  "description": "The same batch of beer produces very different margins depending on whether it leaves the brewery in a keg or a can, because packaging cost, distributor pricing, and retail sell-through differ by channel. Kegs cost less to fill per barrel-equivalent but sell at a lower wholesale price per unit volume and carry keg deposit and loss risk. Cans cost more in packaging materials (can, lid, six-pack carrier or case) but often command a higher effective per-ounce wholesale price and open up off-premise retail distribution. This calculator compares net profit per barrel-equivalent for both paths given your actual packaging costs and wholesale prices, so you can decide how to allocate a batch between a keg run for the taproom and bar accounts versus a can run for retail.",
  "formula": "Keg profit/bbl = keg wholesale price × kegs/bbl − packaging cost/bbl. Can profit/bbl = case wholesale price × cases/bbl − packaging cost/bbl.",
  "dateModified": "2026-09-30",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=keg-vs-can-margin",
  "inputs": [
    {
      "id": "kegPrice",
      "label": "Wholesale price per 1/2 bbl keg",
      "kind": "number",
      "hint": null,
      "default": 155,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "kegPackaging",
      "label": "Keg packaging cost (deposit, CO2, cleaning)",
      "kind": "number",
      "hint": null,
      "default": 14,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "casePrice",
      "label": "Wholesale price per case (24×12oz)",
      "kind": "number",
      "hint": null,
      "default": 32,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "casePackaging",
      "label": "Can/case packaging cost",
      "kind": "number",
      "hint": null,
      "default": 9.5,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "productionCostBbl",
      "label": "Production cost per barrel (from batch cost)",
      "kind": "number",
      "hint": null,
      "default": 95,
      "unit": "$",
      "min": 0,
      "max": null
    }
  ],
  "outputs": [
    {
      "id": "kegProfit",
      "label": "Keg profit per barrel",
      "format": "currency",
      "hint": null,
      "primary": true
    },
    {
      "id": "canProfit",
      "label": "Can profit per barrel",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "diff",
      "label": "Profit difference (keg − can)",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "better",
      "label": "More profitable channel",
      "format": "raw",
      "hint": null,
      "primary": false
    },
    {
      "id": "casesPerBbl",
      "label": "Cases per barrel",
      "format": "decimal",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Wholesale price per 1/2 bbl keg: 155 $",
      "Keg packaging cost (deposit, CO2, cleaning): 14 $",
      "Wholesale price per case (24×12oz): 32 $",
      "Can/case packaging cost: 9.5 $",
      "Production cost per barrel (from batch cost): 95 $"
    ],
    "outputs": [
      "Keg profit per barrel: $187.00",
      "Can profit per barrel: $215.00",
      "Profit difference (keg − can): -$28.00",
      "More profitable channel: Cans",
      "Cases per barrel: 13.78"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter wholesale price per 1/2 bbl keg ($).",
      "Enter keg packaging cost (deposit, co2, cleaning) ($).",
      "Enter wholesale price per case (24×12oz) ($).",
      "Enter can/case packaging cost ($).",
      "Enter production cost per barrel (from batch cost) ($).",
      "Read your keg 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": {
        "kegPrice": 95,
        "kegPackaging": 8,
        "casePrice": 19,
        "casePackaging": 5.7,
        "productionCostBbl": 55
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "kegPrice": 155,
        "kegPackaging": 14,
        "casePrice": 32,
        "casePackaging": 9.5,
        "productionCostBbl": 95
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "kegPrice": 250,
        "kegPackaging": 22,
        "casePrice": 51,
        "casePackaging": 15.200000000000001,
        "productionCostBbl": 150
      }
    }
  ],
  "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 do kegs sometimes lose to cans even at a lower packaging cost?",
      "a": "Keg wholesale pricing is usually lower per ounce than can pricing because bar accounts expect keg pricing to reflect no retail shelf placement cost and often negotiate volume discounts. Cans, sold into retail, carry a higher per-ounce price that can offset the extra material cost of the can and carrier."
    },
    {
      "q": "What about keg loss and breakage risk?",
      "a": "This calculator assumes kegs come back. In practice, lost or damaged kegs (a common problem with self-distribution or unreliable accounts) cost you the replacement keg (commonly $150-200) on top of the lost beer, which erodes keg margin further and should be added to your keg packaging cost if it's a recurring issue."
    },
    {
      "q": "Should every batch be split between keg and can?",
      "a": "Not necessarily — flagship year-round beers benefit from canning for retail visibility and shelf life, while rotating or draft-only releases often make more sense kept in keg since canning line changeovers and label runs have fixed costs that don't pencil out for a one-off batch."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/brewery-batch-cost-barrel",
    "https://www.revenuelab.fyi/toolbox/brewery-taproom-vs-distribution-margin"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — Keg vs Can Margin Calculator (https://www.revenuelab.fyi/toolbox/keg-vs-can-margin)"
}