Interior of a Craft Brewery

How to increase profit margins in your craft brewery

How to increase profit margins in your craft brewery

Synopsis
3 Minute Read

Exploring new opportunities to increase your brewery’s profitability comes down to a few simple assessments and adjustments that can go a long way to improving your chances of ongoing and long-term success.

As input costs continue to increase, craft breweries across the country are struggling to adapt to the evolving economic environment while ensuring they’re meeting customer needs well enough to keep their doors open.

Whether you’ve been in business for decades or months, you know what it takes to stay competitive and lowering costs to increase profit margins is certainly on your priority list.

Exploring new opportunities to increase your brewery’s profitability comes down to a few simple assessments and adjustments that can go a long way to improving your chances of ongoing and long-term success.

Key strategies to increasing profit

While there are many ways to increase profit margins in your brewery, here are a few critical things to look at when assessing where action may be needed: 

  • Waste – Waste throughout the production process might seem small but could amount to significant profit loss over time. Looking at the data your brewery already has to assess where waste is occurring and how to plug those leaks enables informed decision making around your financials as a whole.
  • Timely and accurate financial records – Making sure you have ongoing visibility of your financial data, and that it’s comprehensive, will help you see where opportunity exists to transform your operations to increase profit. Timely and accurate financial data is the only way to understand what’s going on with your brewery and begin to make necessary adjustments.
  • Strategic development – Transforming your brewery into an efficient and well-oiled machine starts with goal setting and building a roadmap for how to get there. Strategic planning can help build a functional and effective organizational structure to enable process improvement from production to sales and every step in between.
  • Inventory management – Optimizing your inventory management can prevent understocking or overstocking and prevent lost sales and excess inventory costs. Depending on what method of inventory you use, there may be a more effective, and cost-effective, way to manage this aspect of your business and increase profit in the process.

Ultimately, leveraging data to make better and more profitable decisions can have a huge impact on your bottom line. It’s vital to take an active approach towards increasing your profit to solidify your brewery’s future and build the tools needed to thrive during uncertain economic times.

Having a strategy that goes beyond increasing sales or raising costs will set you apart from competitors, enhance your relationship with customers, and improve your business overall.

MNP’s dedicated team of craft brewery advisors can help disseminate the wealth of information that already exists in your business and use it to build on your systems to boost profitability.

If you’re attending the Ontario Craft Brewers conference this month, fill out the form below to let us know you’ll be there, and we’ll send you a Starbucks gift card as a thank you.

And please join us October 25 at 10:30 a.m. in Ballroom A for a business practical discussion on how critically assessing your cash flow, understanding how price and cost impact margins, and the importance of inventory management can help increase business performance and safeguard your future. To learn more about the work MNP’s Craft Breweries team does, visit our page to connect with an advisor.

Will you be attending? Fill out the form below

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