Page 10 - Beverage Master December January 2020
P. 10
Craft Beverage
By transforming your finance and accounting data
into key performance indicators (KPIs), you become
equipped to make intelligent, informed business
decisions. Below are examples of relevant KPIs for
craft brewers along with items to take into consid-
eration during analysis.
1. Revenue trends: monthly comparisons year over
year and month over month, actual to budget
comparisons, revenue by category and/or style,
revenue by package type, etc.
Are sales meeting expectations? Are any seasonal
brands selling well enough to go year round? Are
there any year round brands that could become
seasonal? Are there brands that should be discon-
tinued? Are certain package types selling more than
others?
2. Cost of Goods Sold (COGS)/gross margins:
monthly comparisons in total, by brand, by cat-
egory/style, by package type, actual to budget,
etc. – report both in dollars and as a percentage
of revenue.
How are margins trending to expectations? Are
there styles that are cost effective to produce with
a higher perceived value in the market? Are costs
increasing/decreasing due to raw material cost
changes? Are there items that may need a price
increase? Are there potential efficiencies that can
help reduce costs in the brewing process? Should
you brew larger batches for better yield? Are your
COGS fully loaded with labor, overhead allocations,
excise taxes, utilities, insurance, etc.?
3. Distributor/customer performance: revenue,
gross margin, rebate/discount tracking month
to month by distributor/customer, actuals vs
projections, etc.
How is each distributor performing compared to
projections? Are their margins sufficient to cover
rebates, discounts, samples, shared mark-downs,
etc.? Are certain geographical regions performing
better than others? Where should your inside sales
team focus their efforts? Consider additional report-
ing options that provide visibility of distributor sales
to retailer including: on vs off premise sales, sell
through turns, etc.
4. Operating expenses: monthly comparisons year
over year and month over month, actual to
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