Cost per Case of Packaging Materials

[bierstein]

Can anyone help me get an estimated cost of packaging materials?
I'm looking for the average cost of just the materials (crowns, labels, bottles, carriers, case boxes, etc) for a case of 24-12oz bottles, that I can use for a business plan.
I'm accounting for labor, label design, equipment & utilites separately, so I just need the raw package cost. This would be for a 6-10k bbl facility so our ability to bulk buy would have a minimal impact.

Thanks for any feedback.
Rick Seibt
Willoughby Brewing

[Natrat]

The answer to this depends on a lot, but if you can't make orders at ANY kind of bulk rate, packaging is expensive.

Going rate for 12 oz bottles is around $30 per gross (144 bottles) if you're picking them up in truckload quantities.
Bet on each box (printed) being around $0.75, a bit less if you get a craft color, rather than the standard model white.
Six packers will end up being $0.30-0.50 each
A pressure sensitive label will run about 2.5 cents, and die cut flat stock labels might be a little under a penny each. A small neck label will run you around 1.5 cents each.
Crowns vary. Bet on two cents, and you're safe...simply because there is often a lot of waste with crowns until you get your process really figured out.

So, for a case of beer, call it $10.32 in packaging materials. Of course, this doesn't account for graphics, plate and die costs, setup fees, and any premiums you may incur by buying in small quantities.

This is the reason that most US bottlers find that they can maximize profits in large size containers. Even though a big belgian bottle may cost over a dollar, and the cork and cage and all that can throw you close to $1.50 a bottle in packaging, each bottle wholesales for more than an entire case of 12 oz bottles may go for. Seasonals are where it's at!

Also, if you look at cans, you will find that eliminating labels and crowns and carriers and even boxes really make that bottom line attractive. Even after setup costs, cans cost a fraction of bottles. That same case of cans might cost $3.18 in packaging for the same amount of beer at the same wholesale price.

Also, every state and vendor is different. And your negotiating skills are important. My numbers are very ballparkish, and NOT the numbers I currently pay (as I DO buy in as much bulk as I can) but should be good for a pro forma on a business plan.

Good Luck!

Nat

[uabericm]

Nat,

Thanks for the numbers. I am working on a expansion plan for our brewery and appreciate all the data I can find.

Eric

[bierstein]

I've spoken to a few local production brewers and they say around $8 is a good starting point before bulk breaks.
Mother carton - $0.55-75 ea
Bottles - $.20 ea
6pk Carrier - $0.35-45 ea
Crowns - $0.01 ea
Labels $0.03 -0.05 ea


thanks for the help.

[ravenbeer]

Packaging Costs

Hi,

Packaging costs can vary considerably based on vendor and volume ordered as will number of colors and type of material affect the cost. My packaging costs are typically 4 colored and we try to purchase at a volume discount to keep cost per item as low as we can afford. You have to keep into account cash flow and your cash reserves when purchasing your packaging.

This is what we are currently paying:

Crowns- barrier and oxygen scavenger about $0.01 ea
Pressure sensitive wrap around 12 oz bottle label- $0.037 ea.
Cases- $0.67 ea.
12 oz bottles- $0.146 ea.
Six-packs- $0.295 ea. shipping to brewery included.

Hope that this helps.

Stephen
RavenBeer, Baltimore

[DetroitBrewInc]

I have a quote from a Chinese bottle company for 12.8 cents a bottle, for 80,850 in 21 high pallets and freight makes it about 19 cents which is the same cost from Verallia. Chinese cardboard company rough estimates for the packaging was 18 cents for the six pack carrier (20,000 count) and 43 cents for the 24 pack carton (5,000 count)

Since this is for your business plan, you may want to consider flowing the state and federal excise tax (in my case 46 and 24 cents, while <6,000 barrels) in the per case variable cost.

[gyropilot1]

cost

Also cost depend where you live, example If I bring $300.00 in grain via UPS slow boat it cost almost $300. When it comes to bottle from Canada is aroun 40 cents, from south america .30 cents.

Now label if you go fancy and lot of color you can wind up at a range of .35 cents and more. In my plan I was contenplating sixpack carrier , but if you are targeting pubs they care less about the carrier.

chuck Peterson

[dfalken]

Also cost depend where you live, example If I bring $300.00 in grain via UPS slow boat it cost almost $300. When it comes to bottle from Canada is aroun 40 cents, from south america .30 cents.

Now label if you go fancy and lot of color you can wind up at a range of .35 cents and more. In my plan I was contenplating sixpack carrier , but if you are targeting pubs they care less about the carrier.

chuck Peterson

Care to share who is your bottle supplier in South America? I am in Central America and could use that info. Thanks!

[gyropilot1]

owens

Care to share who is your bottle supplier in South America? I am in Central America and could use that info. Thanks!

owens illinois in Colombia. but they have several plants

[dfalken]

owens illinois in Colombia. but they have several plants

Thanks! (the minimum message size is 10 characters so "thanks" wasn't enough and I had to write this extra line)