what would a pub pay for 50ltr keg of "craft beer"

[Killer Brew]

A keg of VB will sell around $250 as well!!! (Can you believe that someone could get craft for the same price?)

Now the question is "Why is a schooner of craft beer that is the same price 2 bucks dearer than a schooner of VB?" I dont have an answer for that one, except for greedy venues thinking they can cash in on craft beer.

Hope this helps mate.

That would be the list or invoice price for VB. Likely that tiered deals, bonus stock and rebates would bring that down especially if it is negotiated as the house preferred pour. Common practice to keep terms away from invoices to make it harder for customers to compare pricing and competitors to match.

 

[labels]

There isn't usually any excise on wine or cider, they're subject to the Wine Equalisation Tax.

There IS excise on cider as it is classified the same as beer even though technically it is a wine. Wine is the only alcoholic beverage not excised and in South Australia the only alcoholic beverage not subject to beverage container deposit (currently 10c per container). Wineries get away with it rather well compared to breweries. WET is considerably less than excise and doesn't have to be paid until the wine is sold.

Breweries have to pay excise as soon as the beer reaches 1.5% alcohol in the fermenter (although I do believe there is some sort of relief for small breweries). The first 1.5% of beer is not excised. Excise changes on the container size. Containers of 48.5L or bigger have a much lower excise than those under. There are three different excise rates for alcoholic content, low alcohol, mid strength and normal strength. So, six different excise levels for beer, don't you just love bureaucracy.

Edit: Cider has the same excise rating as beer, good proof reading NOT.

 

[VP Brewing]

I was speaking to the publican at the Metropolitan Taphouse in Nth Melbourne which normally has 7 or 8 rotating taps of pretty decent craft beer and a tap of Carlton Draught. He told me it costs more for keg of draught than craft and they have to sell it for less.

 

[Mardoo]

That would be the list or invoice price for VB. Likely that tiered deals, bonus stock and rebates would bring that down especially if it is negotiated as the house preferred pour. Common practice to keep terms away from invoices to make it harder for customers to compare pricing and competitors to match.

Lets just say liquor industry invoices never tell the full story. Particularly with the large producers, there are so many kickbacks, ahem, um I mean rebate and reward systems that disappear through all sorts of tax loopholes. It's astounding. These alone heavily weight the major market against small producers.

 

[Tahoose]

So just rambling some numbers here but the wine excise thingo is basically 39% of $1,300,000 which works out to $500,000 of tax. These are from memory and are not concrete numbers.

This is for wholesale revenue. I have heard of exemptions for micro breweries, but I'm not sure what range they are in, something is telling me a round the $30,000 mark bit in comparison this is nothing.

 

[Killer Brew]

Lets just say liquor industry invoices never tell the full story. Particularly with the large producers, there are so many kickbacks, ahem, um I mean rebate and reward systems that disappear through all sorts of tax loopholes. It's astounding. These alone heavily weight the major market against small producers.

Correct. Have worked for 20 years now on the supply side of food and liquor. Currently with a major multi national food company and a similar story there but not as extreme as grog.

 

[Wrayza]

Not too sure about VB kegs going for $250?

About 5 years ago I had a two tap glycol system at home and ran 50ltr kegs for parties. Obviously before home brewing started. Cheapest I ever got a CUB keg for was $190, other times $200.

 

[Blind Dog]

There IS excise on cider as it is classified the same as beer even though technically it is a wine. Wine is the only alcoholic beverage not excised and in South Australia the only alcoholic beverage not subject to beverage container deposit (currently 10c per container). Wineries get away with it rather well compared to breweries. WET is considerably less than excise and doesn't have to be paid until the wine is sold.

Breweries have to pay excise as soon as the beer reaches 1.5% alcohol in the fermenter (although I do believe there is some sort of relief for small breweries). The first 1.5% of beer is not excised. Excise changes on the container size. Containers of 48.5L or bigger have a much lower excise than those under. There are three different excise rates for alcoholic content, low alcohol, mid strength and normal strength. So, six different excise levels for beer, don't you just love bureaucracy.

Edit: Cider has the same excise rating as beer, good proof reading NOT.

Cider is covered by WET unless it's got added flavourings. It's classified as a wine in WET legislation and therefore exempt from excise. WET is based on wholesale value and charged at a flat rate of 29%, although generous rebates apply.

Beer is only classified as beer if its above 1.15% ABV, and excise applies per litre of alcohol above 1.15%. It's generally charged as it leaves the brewery because the rate depends on how it's packaged. It's charged at a flat rate of around $47 per litre of alcohol (off the top of my head) if it's in a container that is 48L or less and at varying rates depending on ABV if it's in a container that exceeds 48L, although the highest rate of about $33 (again off the top of my head) kicks in at 3.5% ABV.

Agree it's a beareaucratic mess, but its one of the things that keeps me in work so it's not all bad

 

[Ducatiboy stu]

HAHAHAAH....My local sells Arstisan/Vintage/Celbration/Sparkling at $5 Schooner (swinging tap ).....Coopers Pale/Dark at $5...Mild at $4.50......and Light at $4 something....and the beer & lines are very well looked after & cleaned

Other pubs in town, add at least 20c just for Pale...And the local clubs have been bought out by the big 2......as per usual

 

[MHB]

One of the big determining factors will be the strength, that is calculated in three steps >3%, 3-3.5% and <3.5% with different rates per litre of alcohol and depending on the container size.
You get to deduct 1.15% from the alcohol content before doing the calculation (but they add GST to the total, so that avoids taxing a tax so to speak)
So if you had a 50L keg of 3% beer you do the calculation on 1.85%, 50*1.85% = 0.92L of alcohol, Look at the rate for 3% beer ($7.73/L) Excise comes to $7.15
If the same keg was full of your finest IIPA at 9%
9%-1.15 = 7.85%, 50L*7.85% = 3.925L of Alcohol at a rate of $31.74 = $124.58, just in tax (well excise there are other taxes)
Here is a link to the ATO Excise rates for beer and how to calculate excise

The rates are much higher for bottled beer
Mark