11 brewery KPIs to track

A Key Performance Indicator (KPI) is a metric that indicates how your business is performing. It can be a financial measure, such as revenue or profit, or it can be an operational measure such as cycle time or inventory. KPIs are important because they help you track how your brewery is performing and where your business needs improvement. In this article, we’ll look at some key metrics for tracking brewery level:

1. Revenue per barrel

Revenue per barrel is a key metric for breweries because it shows how much money they make from each barrel of beer they sell. It is calculated by dividing the total revenue for a given period by the number of barrels sold during that same period.

Revenue per barrel = Total revenue / barrels sold

For example, if a brewery sold 1,000 barrels with revenue of ,000,000 and had no other expenses besides raw materials, their revenue per barrel would equal /barrel.

2. Average order value

When you run a brewery, your customers buy beer. They can also buy goods or food, but the main product is beer. The average order value (AOV) measures the total turnover of an order. It is calculated by adding the price of each item in order, then dividing that sum by the number of items sold. Order value is a key metric for e-commerce businesses because it can be used to track customer satisfaction and loyalty.

If you have an AOV goal for your brewery, try tracking it weekly to see if you meet it. Otherwise, consider adjusting prices on certain items until your AOV meets expectations – and don’t forget other factors like shipping costs!

If you run a brewery, your customers buy beer. They can also buy goods or food, but the main product is beer. The average order value (AOV) measures the total turnover of an order. It is calculated by adding the price of each item in order, then dividing that sum by the number of items sold. Order value is a key metric for e-commerce businesses because it can be used to track customer satisfaction and loyalty. If you have an AOV goal for your brewery, try tracking it weekly to see if you meet it.

3. EBITDA per unit

EBITDA per unit is a ratio that shows the profitability of each unit. It is calculated by dividing the total EBITDA by the total number of units sold.

Therefore, it can be used as an indicator of whether your brewery is making enough money to stay in business, or if you are losing money on every beer sold, even if other metrics like revenue and costs are positive.

For example: if you sell 1,000 pints of beer every day at each and you have 0,000 in revenue, but only spend 0,000 in expenses (costs), then your EBITDA would be ,000 and your Ebitdar would be 0,000 minus whatever taxes you pay (which will vary from state to state depending on tax laws).

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4. Inventory of days

Days Inventory is a measure of how long it takes to turn over your beer inventory, or the number of days you sell all your beer on hand. It is calculated by taking total annual beer sales divided by average inventory and then multiplying by 365. This metric can be used to help estimate how much inventory you should hold, as well as calculate an average amount inventory per day and per week.

Average inventory is the amount of beer on hand at any given time. It can be calculated by taking the total annual beer sales and dividing it by 365, then multiplying that number by the number of days per year. This will give you an average inventory per day and per week that you can use to help calculate how much inventory to hold or how many days it takes to sell all of your inventory.

5. Break-even point

The breaking point is when income equals expenditure. In other words, it is the time when your business has no profit or loss from any activity.

The formula for calculating the break-even point is:

Breakpoint = Fixed Costs / (Unit Sales x Variable Cost per Unit)

For example, if a company has ,000 in fixed costs and sells 100 units at .50 per unit, its breakeven point is: 15,000 / (100 x 1.50) = 150 units

6. Usage rate

This metric is usually expressed as a percentage and compares the time a machine or process is in use to the total time it is available.

For example, if you have a product that uses two machines for 15 hours and another product that uses one machine for 10 hours, your utilization rate would be 50% (15/30).

Let’s say you want your brewery to make 2,000 barrels of beer in 2018. If your current production rate is 1,000 barrels per month and you don’t expect growth in demand or production efficiency throughout the year, this means that you need enough equipment to produce at least 5 batches per week (40 batches in total). You can also break this down into weekly goals: 40 batches per month x 5 batches per week = 200 batches per month = 476 gallons per batch = 200 x 476 = 98400 gallons produced each month (1 barrel = 31 US gallons).

7. Cycle time

Cycle time is the time taken to complete a process, and it is a measure of the efficiency of that process. You can use cycle time to identify where improvements can be made in your brewery and how those improvements will affect the schedule.

If you’re running a bottling line, for example, you’ll want to know how long each step of the process takes – from filling beer bottles to boxing them for shipping – so you know when your customers are going to receive their orders. .

If there are bottlenecks in your production chain (for example, if it takes longer than usual for a step), it could mean that there are also delays downstream – which means more time spent waiting to meet distribution goals or sell at events!

Cycle time is a key metric in any business, but it can be especially important for breweries. With so many moving parts and steps involved in producing your beer and getting to customers, you’ll want to know how long each step takes so you can improve the efficiency of your production line.

8. Fill rate

Fill rate is the percentage of orders filled within a given time frame. It is calculated by dividing the number of orders fulfilled by the total number of orders. A high fill rate is important because it shows that your brewery can produce a large volume of beer quickly and efficiently. The higher your fill rate, the less likely you are to run out of stock or miss deadlines to deliver beer to customers or bars/restaurants.

Fill rates are often used in conjunction with other metrics such as late pickups and returns to measure effectiveness across all sales channels (an example would analyze the number of people who canceled their pickup order versus to their barrel).

9. Use of equipment

Equipment utilization is the percentage of time the equipment is used.

It is calculated by taking the total hours of operation and dividing it by the number of hours per day (24). The resulting number will be your use of the equipment.

For example, if you prepare a batch every five days and run for 18 hours each time, you will have an equipment utilization rate of 18/72 or about 25%. That’s decent for most breweries, but what does that mean?

• This means that 25% of your brewery is used to make beer for one shift or period. You can improve this number by hiring more people or even adding shifts to capitalize on peak times.
• If your brewery has room for expansion but isn’t growing fast enough yet, increasing your efficiency can help bring more money into your business while keeping costs low enough that customers don’t feel like paying. more than they should be paying per bottle (or pint!).

One way to increase efficiency is to increase the utilization rate of your gear. This can be done by adding more people or hours to the shift. You can also add extra shifts during peak times so you have more beer ready to go when customers want it.

10. Cost per unit

Cost per unit is a good metric to track because it helps you understand how much it costs to produce each unit of your product. This is calculated by dividing the total manufacturing cost of a product by the number of units produced.

For example, if you craft 10 barrels (each barrel contains 31 gallons) and spend on ingredients, your cost per barrel would be .

11. gross margin per unit

Gross profit per unit is gross profit divided by your sales volume.

It is a measure of profitability and a key metric for determining how much money you make or lose on each unit sold.

For example, if you sell beer at per bottle and it costs to do so, your gross profit per bottle is ( – = 5). If you sell 100 bottles in a month, your gross profit would be 50×100 = ,000.

Conclusion

In this article, we looked at key performance indicators (KPIs) and how to use them for your brewery. We’ve discussed the most important KPIs that every brewer needs to understand and track. You can use these metrics to make data-driven decisions about improving production processes and growing sales.