All terms
Distillery glossary
Cost Per Barrel
Cost per barrel is the fully loaded cost of producing and aging a barrel of spirit: direct materials, the barrel, labor, overhead, storage, and evaporative loss.
A common mistake is counting only grain, yeast, and the barrel, which understates true cost and inflates apparent margin. Accurate cost per barrel includes burdened labor, facility overhead, the financial weight of years of aging, and the angel's share, so pricing rests on real numbers.
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