Craft Brewery Finance 101: Understanding COGS

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Ever wondered what COGS is? It stands for Cost of Goods Sold — a crucial concept in craft brewery finance!

COGS is the total expenditure incurred, both directly and indirectly, to bring your beer to its current condition and location. For brewers, this represents the cost of producing beer that’s sold to distributors and customers.

The process starts with raw materials, which then move through work-in-process stages, become finished goods inventory, and finally, turn into COGS.

Knowing your COGS is essential for pricing your beer correctly and ensuring profitability!

Stay tuned for more insights on brewery finance! 🍻

Regards

Ankur Napa

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