Adding It Up

Here's what a single can of lager costs you in variable production costs:

| | Per brew | Per can | |---|---|---| | Malt | £350 | 9.6p | | Hops | £100 | 2.8p | | Yeast | £160 | 4.4p | | Duty | £709 | 19.5p | | Electricity | £90 | 2.5p | | Brew labour | £162 | 4.5p | | Packaging | £1,745 | 48.0p | | Variable total | £3,316 | ~91p |

For an IPA, hops go up by £100 and yeast drops by £60, so the variable cost per can is virtually the same — around 92p.

But we're not done. You've still got your fixed costs.