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The New Jersey Licensed Beverage Association, Inc.

 

“Representing the on-premise licensed beverage retailers, the heart of the hospitality industry”

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President’s Message
By Melvin Gitler

 

The Beer Consumer

Most of us sell more and more beer each year. The question is how we create the greatest profit from this item. The first question we must ask ourselves is who is drinking domestic beer and who is drinking craft beers. Seventy Two percent of the people in a current survey said that they drink domestic beer. Eighteen percent drink imports and ten percent drink craft beers. The last two items are too be remembered because these are products that could give us a greater profit per glass sold. Over thirty two percent of people surveyed chose a bar by the beer they serve. The other sixty eight percent may or may not be real beer drinkers or they are alcohol beverage drinkers who do not care about beer.

It is seen that from this sixty eight percent that may or may not drink beer that 32 percent of these people never drink beer. The beer drinkers in this group though do want to find the beer they prefer at a bar of their choice. Something that is very interesting is that beer drinkers are very passionate and are brand loyal to their beer.

So now that we understand these concepts, we must see how this can turn into a greater profit for our bars. Recently, in New Jersey the State has taken from our right and left pocket more and more of our sales without a payback to us in other forms of sales. They expect us to figure it out and their desire to help our industry is null.

Being on our own I have seen that import and craft beers give me that answer. A standard domestic keg costs approximately $78 per keg and with loss can give you approximately 150, 10 oz. glasses of beer at a price of $2 per glass. This gives you a profit per keg of $222. The same craft or imported beer costs per keg $128 per keg but it can be sold at a minimum of $3.25 per glass. A keg could yield $485 and a net profit of $375. This is an extra $153 per keg.

Selling import or craft beers whether in bottles or kegs is practice. People are hard to modify their drinking habits. Try teaching your servers to push the import and craft beer. They will make more per sale on tips and the house will earn more. If you have a problem asks your distributor for help they may have ideas to assist in this endeavor.


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