Most bar owners think regular beer delivers better margins than non-alcoholic options. That's often wrong. Non-alcoholic beers frequently generate higher profits because guests pay premium prices while your purchase costs stay comparable.
Why non-alcoholic often delivers more margin
Non-alcoholic beers often cost the same to purchase as regular beers (sometimes even more due to the alcohol removal process), but you can sell them at a higher price. Many guests accept a premium for the 0.0% alternative.
💡 Example comparison:
Regular beer (Heineken):
- Purchase price: €1.20 per bottle
- Selling price: €3.50 incl. 21% VAT = €2.89 excl. VAT
- Margin: €2.89 - €1.20 = €1.69
- Margin %: (€1.69 / €2.89) × 100 = 58.5%
Non-alcoholic beer (Heineken 0.0):
- Purchase price: €1.35 per bottle
- Selling price: €4.00 incl. 21% VAT = €3.31 excl. VAT
- Margin: €3.31 - €1.35 = €1.96
- Margin %: (€1.96 / €3.31) × 100 = 59.2%
Non-alcoholic delivers €0.27 more margin per bottle!
VAT on both beer types
Both regular beer and non-alcoholic beer fall under the 21% VAT rate. This makes the comparison easier because you use the same VAT calculation for both.
⚠️ Note:
Always calculate excl. VAT for your margin calculation. The price on your menu is incl. 21% VAT, so divide by 1.21 to get the price excl. VAT.
Formula for margin calculation
For both beer types you use the same formula:
Margin in euros = Selling price excl. VAT - Purchase price
Margin percentage = (Margin in euros / Selling price excl. VAT) × 100
By laying both percentages side by side, you see which beer generates the most. Also pay attention to the absolute margin in euros - sometimes a lower percentage but higher euro margin is more interesting.
Compare purchase prices
Non-alcoholic beers are often 10-20% more expensive to purchase than regular beers of the same brand. This happens because of the extra production process to remove the alcohol. Yet you can usually sell them at a higher price.
💡 Example purchase prices:
- Heineken regular: €1.20
- Heineken 0.0: €1.35 (+12.5%)
- Corona regular: €1.25
- Corona 0.0: €1.45 (+16%)
Despite higher purchase costs, you can often sell non-alcoholic €0.50 more expensive.
Determine selling price
Many bars apply a fixed margin markup for all beers. For non-alcoholic beers you can often charge a higher price because:
- Guests see it as a premium alternative
- Less competition in the area
- Healthier choice justifies higher price
- Often smaller volumes so less price pressure
Impact on your total bar revenue
Even if you sell fewer non-alcoholic beers, the higher margin per unit can improve your overall profitability. A good mix of both types optimizes your results. This is a pattern we see repeatedly in restaurant financials - small pricing adjustments on specialty items create meaningful profit improvements over time.
💡 Example monthly impact:
If you replace 50 regular beers with non-alcoholic:
- Extra margin per bottle: €0.27
- Per month: 50 × €0.27 = €13.50
- Per year: €13.50 × 12 = €162
Small shift, but every euro counts in hospitality.
How do you calculate the margin on both beer types?
Gather purchase prices for both beers
Note the purchase price per bottle of both the regular and non-alcoholic beer of the same brand. Check your latest supplier invoice for exact prices including any discounts.
Calculate selling price excl. VAT for both
Divide your menu price by 1.21 to go from incl. to excl. 21% VAT. For example: €3.50 ÷ 1.21 = €2.89 excl. VAT. Do this for both beer types.
Subtract purchase price from selling price excl. VAT
For each beer: selling price excl. VAT minus purchase price = margin in euros. Then divide the margin by the selling price excl. VAT and multiply by 100 for the percentage.
✨ Pro tip
Track your non-alcoholic beer margins weekly for the first 8 weeks after introducing them. You'll spot the optimal price point where volume stays strong but margins peak.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
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Frequently asked questions
Does non-alcoholic beer fall under 9% or 21% VAT?
Non-alcoholic beer falls under 21% VAT, just like regular beer. This applies to all alcoholic and non-alcoholic beers in hospitality, regardless of the alcohol percentage.
Why are non-alcoholic beers more expensive to purchase?
Non-alcoholic beers cost more to produce due to the extra process to remove alcohol. Additionally, volumes are smaller than regular beers, which means higher production costs per unit.
Can I sell non-alcoholic beer much more expensive than regular beer?
Usually you can charge €0.25 to €0.75 more for non-alcoholic beer. Guests accept a premium for the healthier alternative, but don't overdo it or you'll price your customers away.
Do I need to have many non-alcoholic beers in my assortment?
Start with 1-2 well-known brands like Heineken 0.0 or Grolsch 0.0. See how it goes before expanding the assortment. Too much choice can lead to more inventory and slower turnover.
Should I track margins differently for 0.0% versus 0.5% alcohol beers?
No, both fall under the same 21% VAT rate and similar pricing strategies. The tiny alcohol difference doesn't affect your margin calculations or customer perception meaningfully.
How often should I recalculate beer margins after supplier price changes?
Recalculate immediately after any supplier price update, typically every 3-6 months. Beer prices fluctuate with commodity costs, and delayed adjustments eat into your profits quickly.
📚 Sources consulted
- EU Verordening 852/2004 — Levensmiddelenhygiëne (2004) — Official source
- EU Verordening 853/2004 — Hygiënevoorschriften voor levensmiddelen van dierlijke oorsprong (2004) — Official source
- EU Verordening 1169/2011 — Voedselinformatie aan consumenten (2011) — Official source
- NVWA — Hygiënecode voor de horeca (2024) — Official source
- NVWA — Allergenen in voedsel (2024) — Official source
- Codex Alimentarius — International Food Standards (2024) — Official source
- FSA — Safer food, better business (HACCP) (2024) — Official source
- BVL — Lebensmittelhygiene (HACCP) (2024) — Official source
- Warenwetbesluit Bereiding en behandeling van levensmiddelen (2024) — Official source
- WHO — Foodborne diseases estimates (2024) — Official source
Food Standards Agency (FSA) — https://www.food.gov.uk
The HACCP standards shown in this application are for informational purposes only. KitchenNmbrs does not guarantee that displayed values are current or complete. Always consult the FSA or your local authority for the latest regulations.
Written by
Jeffrey Smit
Founder & CEO of KitchenNmbrs
Jeffrey Smit built KitchenNmbrs from 8 years of hands-on experience as kitchen manager at 1NUL8 Group in Rotterdam. His mission: give every restaurant owner control over food cost.
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