/ coffee

# Cold Brew for Lemonade - A Calculation

To be able to sell cold brew it is important to know the costs of production. With the following I tried estimating what the cold brew costs in production.
First I'll take a look at the price I estimate, then I'll compare my results to the price of currently viral lemonade and see if I can compete. In the there will be a small summary.

###### Cost breakdown of one litre cold brew:
• 4.5€ 150g beans (25€/kilo + shipping fees)
• 1.5€ 1 litre good quality water
• 0.6€ Electricity Cost
• 0.59€ Work-time (chosen for nice result)
• Bean selection
• Ordering and reviewing of beans
• Quality control
• Adjusting ratio to changes in roast
• Preparing, Measuring, Cleaning and Grinding
• Sanitizing, Cleaning and shelving
• Bottling and distributing
• 0.31€ Maintenance
• 0.1€ Sanitizer (depending on method)
• 0.1€ Filters (10€ per new one)
• 0.1€ Grinder Cleaner (2.5€ per new one)
• 0.01€ Production tanks and hoppers (10€ per new one)
• 0.5€ Investments
• 0.45€ Buying glass bottles (4.5€ per bottle)
• 0.05€ Labels / Stickers / other cool gadgets

One litre of cold brew concentrate costs 8€ in production.

###### Cold Brew Lemonade VS Club Mate
• While maintaining good taste the concentrate can easily be diluted 1:3
• This will produce 3 litres "Cold Brew Lemonade" for 8 €
• One litre Club Mate costs ~ 2.5€ (sold in 500 ml bottles)
• Absolute minimal pricing for 500 ml Cold Brew Lemonade needs to be 1.33 €
• To be competitive the price needs to be 1.25€ per 500 ml
• To get to 1.25€ per 500 ml production cost needs to be reduced to 7.5€ (e.g. cutting investments or work-time (wage))
• When not producing (e.g. selling) 1 litre = 6 bottles of cold brew every at once, the product might go bad when stored for a longer period

To be competitive in the market, 1.25€ per bottle is the highest possible price. When not selling six bottles (3L) at once the coffee might not be sold in time and will go stale. When not calculating in any price for the work done the price can be reached while not destroying the business.

###### Viable Selling Models
• 1 litre of Cold Brew Concentrate : 7.5 €
• 6 x 500 ml of Cold Brew Lemonade : 7.5 €
• NOT POSSIBLE:
• 1 Bottle of Cold Brew Lemonade : 1.25 €