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Old 03-31-2013, 10:15 PM   #11
Wayne1
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Have you investigated the actual price differences between grains?

At 1000 lb. wholesale levels, the cost difference between American 6-row and American 2-row is $0.01 a pound. The cost difference between the least expensive American 2-row and the most expensive German Pils Malt is $0.23 lb.

In a 15 bbl batch you might use 1,000 lbs. That would be a $230.00 cost difference between American 2-row and German Pils malt. If you yield 5000 12 oz bottles out of 15 bbls that comes out to less than $0.05 a bottle. A very minor cost difference compared to labor and packaging.

In today's market a small brewer cannot compete on cost. They should always strive to offer the highest quality product they can.

 
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Old 04-01-2013, 11:51 PM   #12
spamman1368
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No kiddin! I haven't looked into bulk malt prices so I had no idea they were so close to each other! That really kinda blows my mind, honestly, because I thought for sure you'd pay a good amount for top-o-the-line malts as opposed to lower quality. Well, in that case I can see the obvious route to take. Since everyone is on a pretty level playing field, quality reigns king.

The question that comes to me now is, how to Bud and Coors make their beers for so cheap then?

 
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Old 04-02-2013, 02:07 AM   #13
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Quote:
Originally Posted by spamman1368 View Post
The question that comes to me now is, how to Bud and Coors make their beers for so cheap then?
Quantity. There is a slight difference when you make over 20,000,000 bbls of beer vs 2000. Coors does not use "cheap" malt. Coors Light, Coors Banquet, etc. all use Coors own 2-row barley grown exclusively for them. They do all malting in house in Golden. In the lower end beers like Keystone they use corn starch as the adjunct.

As a single brand, Blue Moon Belgian White outsells ALL of New Belgian's beers combined. During it's height of popularity, ZIMA sold well over 2,000,000 bbls in a year. That is close to what ALL of Boston Beer's brands sell combined.

I guess you simply don't realize the size of the "BIG" guys and what that buying power can do. Miller/Coors SAB and AB/InBev do spend far more on advertising and packaging than on ingredients for each beer.

On a nano/micro level you simply cannot match the volume purchasing that even a small regional can do. There is a difference between buying malt by the bag, malt by the container load, malt by the silo and malt by the train load.

I gave you examples at 1,000 lb levels. You do get breaks at 20,000 lbs and
then at 50,000 lbs. Beyond that I am not sure of exactly the pricing structure. I have never bought beyond 20,000 lbs. That was 6 months supply for a 7 bbl brewhouse. That is less than one days production for the Coors plan in Golden.

 
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