Most bar owners think exclusive beer contracts always boost profits. That's not always true - you'll get better purchase prices but sacrifice menu flexibility. Calculate the real impact before signing anything.
What is an exclusive beer contract?
With an exclusive beer contract, you only sell beers from one brewery. In return, you usually get:
- Lower purchase prices (5-15% discount)
- Free tap installation and maintenance
- Marketing materials and support
- Exclusive products for your area
💡 Example:
Café selling 500 beers per week, currently mixed selection:
- Current purchase price: €1.20 per bottle
- Exclusive contract: €1.05 per bottle
- Savings: €0.15 per bottle
Annual savings: €0.15 × 500 × 52 = €3,900
Calculate your current beer margin
Before considering an exclusive contract, figure out what you're currently earning from beer sales.
Formula for beer pour cost:
Pour cost % = (Purchase price / Selling price excl. VAT) × 100
💡 Example calculation:
Pilsner on the menu for €3.00 (incl. 21% VAT):
- Selling price excl. VAT: €3.00 / 1.21 = €2.48
- Purchase price: €1.20
- Pour cost: (€1.20 / €2.48) × 100 = 48.4%
That's on the high side. Standard for beer is 35-45%.
⚠️ Note:
Always calculate with the price excl. VAT. Alcoholic beverages have 21% VAT, not 9% like food.
Calculate the advantage of the exclusive contract
Add up your savings from lower purchase prices. Then compare that with potential losses from reduced selection.
💡 Complete calculation:
Café selling 500 beers/week, contract with 12% discount:
- Current purchase: €1.20 × 500 = €600/week
- New purchase: €1.06 × 500 = €530/week
- Savings: €70/week = €3,640/year
- Plus: free tap installation (€2,000 value)
- Plus: free maintenance (€800/year)
Total benefit first year: €6,440
Factor in potential drawbacks
An exclusive contract also has risks that can cost you money:
- Less choice: Customers ask for brands you don't have
- Seasonal: No specialty beers from other breweries
- Contract duration: Often locked in for 3-5 years
- Minimum purchase: Required quantities per month
⚠️ Note:
Check if you can meet the minimum purchase. Too little sales can result in penalties that wipe out your savings.
Compare different offers
Request quotes from multiple breweries. Compare not just the discount, but the whole package:
- Purchase discount percentage
- Free equipment and installation
- Maintenance costs
- Marketing support
- Contract duration and notice period
- Minimum purchase obligations
💡 Comparison:
Two offers for the same café:
- Brewery A: 15% discount, 5 year contract, minimum 400/week
- Brewery B: 10% discount, 3 year contract, minimum 300/week
At 500/week sales, A is more advantageous. At 350/week, B is safer.
Monitor your results after the contract
Track the actual performance of your exclusive contract against your calculations. From years of working in professional kitchens, I've seen too many operators sign deals without proper follow-up.
- Weekly beer sales (quantity and revenue)
- Pour cost percentage per beer brand
- Customer feedback and missed sales
- Total beer profit per month
Regular tracking shows you if the exclusive contract delivers the promised margin improvements. You'll spot problems early and can adjust pricing or renegotiate terms.
How do you calculate the margin of an exclusive beer contract?
Calculate your current beer margin
Add up how much you currently spend on beer per week and what your pour cost percentage is. Use the formula: (Purchase price / Selling price excl. 21% VAT) × 100.
Compare contract offers
Request quotes from different breweries. Pay attention to purchase discount, free equipment, contract duration, and minimum purchase obligations.
Calculate the total benefit
Multiply your weekly beer purchase by the discount percentage and add free services to it. This gives you the annual financial benefit.
✨ Pro tip
Track your actual savings against projections every 8 weeks during the first year. If you're hitting less than 80% of expected benefits by week 16, start documenting issues for contract renegotiation talks.
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
What if I don't meet the minimum purchase requirements?
You usually pay a penalty or have to pay the difference at the regular price. Some contracts charge up to 25% extra for shortfalls. Always check if the minimum purchase is realistic for your business before signing.
How much discount do you usually get with an exclusive beer contract?
Most breweries offer 8% to 15% discount on regular purchase prices. Large cafés can sometimes negotiate up to 20% discount, especially in competitive markets.
Can I get out of an exclusive beer contract early?
Most exclusive contracts have strict termination clauses with penalties ranging from 3-12 months of minimum purchases. Some allow early exit if you don't hit minimum sales for 6+ consecutive months, but you'll usually forfeit equipment and pay restocking fees.
📚 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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