Wednesday, June 10, 2009 2:23:21 PM
Let's say DKAM sells 100,000 cases x 12 (which would be a stretch in my opinion) = 1,200,000 bottles the first year.
If the retail of a 12 pack of higher end domestic beer retails at $14.00, so let's say the Kid Rock Beer is equal to that.
The Beer Institute (BeerInstitute.org) says 40.8% of retail price of beer is taxes, soon to be more under the current regime, so that leaves $0.69 per bottle left to split between DKAM, retailer, distributor, Michigan Brewery and Kid Rock.
If DKAM wholesales the product at $0.39 per bottle:
So this is a potential scenario of break down of what is left:
Brewery (glass, package, box, label, ect): $0.30
DKAM: $0.05
Kid Rock: $0.04
Distributor: $0.20
Retailer: $0.25
That leaves no consideration toward advertising, marketing or promotion the product.
$0.05 x 1,200,000 bottles = $60,000.00
Any thoughts about that?
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