The quickest way to determine what goes into beer COGS is to ask this question:
“Is this cost essential in the production and packaging of my beer?”
If the answer is yes, it goes into cost of goods sold.
Or, you could phrase the question differently.
“Could I make my beer without this cost?”
If the answer is yes, it doesn’t go in COGS it goes in operating expenses.
Do this next:
- Watch the short beer COGS explainer video below
- Join our brewery finance network – 150+ brewery owners and operators working together to build financially successful breweries
