Brewery / Winery KPIs.

Breweries and Wineries are dual-purpose properties combining production (federally licensed by TTB) with on-site retail tasting room + DTC sales. The economic model layers wholesale 3-tier distribution (manufacturer → distributor → retailer at 30-35% margin) with high-margin DTC tasting room (50-65% margin via tasting fees + bottle sales + club). Performance is measured in barrels produced (BBL — beer) or cases sold (wine), wholesale-to-DTC mix, prime cost (COGS + labor), club retention %, and tasting room sales per visitor. Production scale matters dramatically — craft breweries below 5,000 BBL annual production rarely achieve unit economics; wineries below 5,000 cases face similar pressure. There is no pure-play public REIT — large beer companies (BUD AB InBev, TAP Molson Coors, SAM Boston Beer) and wine companies (STZ Constellation Brands, TWE Treasury Wine Estates, NAPA Duckhorn Portfolio) are operating C-corps; net-lease retail REITs (O, NNN, EPRT, ADC) own the real estate beneath some chain brewpubs. Ilora.ai ingests TTB production reports, POS extracts, club retention data, distributor depletion reports, and ABV/excise tax flows, then audits prime cost, club retention, and DTC contribution against industry benchmarks (Brewers Association annual; Wine Business Monthly).

14 definitions · Sector: FOOD AND BEVERAGE · Used by Ilora.ai specialist AI agents

NOI

Net Operating Income

Total revenue minus operating expenses (excludes financing and capital costs). The primary measure of property-level profitability.

NOI = Revenue − Operating Expenses

  • profitability
  • core
Cap Rate

Capitalization Rate

Net Operating Income divided by current property value. Expresses unleveraged annual yield as a percentage.

Cap Rate = NOI ÷ Property Value

  • valuation
  • core
DSCR

Debt Service Coverage Ratio

Net Operating Income divided by total annual debt service. Lender-required cushion measure; below 1.0 means NOI cannot cover debt.

DSCR = NOI ÷ Annual Debt Service

  • lending
  • risk
LTV

Loan-to-Value

Loan amount divided by property value. Lower LTV = lower lender risk.

LTV = Loan Amount ÷ Property Value

  • lending
  • risk
OER

Operating Expense Ratio

Operating expenses divided by gross revenue. Lower is better, but varies by property type (hotels run higher than triple-net retail).

OER = Operating Expenses ÷ Gross Revenue

  • efficiency
GRM

Gross Rent Multiplier

Property value divided by gross annual rental income. Quick valuation shortcut; less precise than cap rate.

GRM = Property Value ÷ Gross Annual Rent

  • valuation
  • shortcut
IRR

Internal Rate of Return

Annualized return on investment accounting for time value of money across the full hold period.
  • return
  • underwriting
CoC

Cash-on-Cash Return

Pre-tax annual cash flow divided by total cash invested. Measures the cash yield, not total return.

CoC = Annual Cash Flow ÷ Total Cash Invested

  • return
DCF

Discounted Cash Flow

Valuation method that projects future cash flows and discounts them to present value at a chosen rate.
  • valuation
  • underwriting
TTM

Trailing Twelve Months

A rolling sum of the most recent 12 months. Smooths seasonality for KPI comparisons.
  • period
  • core
COGS

Cost of Goods Sold

Cost of food and beverage products sold. Typically 28–35% for full-service restaurants.
  • cost
  • core
Prime Cost

Prime Cost

COGS plus labor cost. Industry benchmark target is below 60–65% of revenue.

Prime Cost = COGS + Labor

  • cost
  • core
Avg Check

Average Check

Total revenue divided by number of checks (transactions). Measures pricing + sales mix.
  • revenue
Turnover

Table Turnover

Number of times a table is occupied during a shift. Capacity utilization measure.
  • capacity

Sub-types

Sub-types within Brewery / Winery.

Microbrewery (<15K BBL/year)
Small-scale craft brewery with primarily on-site + local distribution.
Regional Craft Brewery (15K-6M BBL/year)
Mid-scale brewery with multi-state distribution; Sierra Nevada, Stone, Boston Beer scale.
Brewpub
Brewery + restaurant operating from same location; food-focused with on-premise sales.
Estate Winery (Vineyard + Production)
Vertically integrated estate — vineyard + winery + tasting room + DTC.
Custom Crush / Negotiant Winery
Production facility serving multiple wine brands without owned vineyards.
Distillery (Adjacent Sub-Type)
Spirits production with similar regulatory + tasting-room economics; tracked separately from beer/wine.

Amenities & features

7 amenities Ilora.ai tracks for Brewery / Winery.

Production Brewhouse / Crush Pad

Brewery: mash tun + lauter tun + brew kettle + fermentation tanks. Winery: crush pad + press + fermentation tanks.

  • Production capacity (BBL or tons)
  • Equipment CapEx amortization
Cellar / Barrel Storage

Aging cellar with temperature + humidity control; barrel-aging is core for wine + many craft beer styles.

  • Barrel inventory turnover
  • Cellar capacity
Tasting Room + Retail

On-site retail with tasting flights, bottle sales, club enrollment. Highest-margin sales channel.

  • Tasting fee revenue
  • Sales per visitor
  • Club enrollment %
Outdoor Beer Garden / Vineyard Patio

Outdoor seating expanding tasting room capacity; weather-dependent revenue.

  • Patio revenue contribution
Event Space (Weddings, Private Events)

Bookable venue for weddings + corporate events; high-margin ancillary revenue.

  • Event bookings per year
  • Average event revenue
Brewery Kitchen / Food Pairing

Limited kitchen for tasting-room food service; required by some jurisdictions for on-premise license.

  • Food % of sales (license compliance)
  • F&B prime cost
Tour + Experience Programming

Production tours + paired tastings; drives premium ticket revenue + brand engagement.

  • Tour bookings
  • Tour revenue per visitor

Industry reference

How the brewery / winery sector operates.

Market segments

  • Local on-premise (taproom + tasting room)
  • Wine club + beer club subscribers
  • Wholesale 3-tier distribution
  • DTC e-commerce (winery 50-state shipping varies)
  • Brewery-restaurant brewpub
  • Wedding + event venue
  • Wholesale grocery + retail bottle

Operating models

  • Owner-operated independent
  • Multi-unit craft chain (Stone Brewing, Sierra Nevada)
  • Family-owned multi-generation winery
  • Investor-backed brand portfolio (Duckhorn NAPA, The Wine Group)
  • Custom-crush facility hosting multiple labels
  • Brewpub franchise (Yard House, BJ's Restaurants)

Regulatory frameworks

  • TTB Federal Basic Permit (brewer's notice or winery basic permit)
  • TTB COLA (Certificate of Label Approval) for every product
  • State ABC liquor licensing (manufacturer + on-premise)
  • Three-tier system (manufacturer / distributor / retailer separation; varies by state)
  • State direct-to-consumer wine shipping laws (50-state patchwork)
  • Excise tax compliance (federal + state)
  • AVA (American Viticultural Area) designation rules (TTB)
  • OSHA (production environment safety)

Industry organizations

  • Brewers Association
  • Wine Institute
  • Distilled Spirits Council
  • WineAmerica
  • Beer Industry Electronic Commerce Coalition (BIECC)
  • Master Brewers Association of the Americas
  • American Society of Enology and Viticulture (ASEV)

Comparable public REITs / operators

  • No pure-play public brewery / winery REIT — major operators are C-corps: BUD (Anheuser-Busch InBev), TAP (Molson Coors), SAM (Boston Beer Company), STZ (Constellation Brands), TWE (Treasury Wine Estates), NAPA (Duckhorn Portfolio), DEO (Diageo)
  • Net-lease retail REITs owning real estate under chain brewpubs: O (Realty Income), NNN (National Retail Properties), EPRT (Essential Properties), ADC (Agree Realty)
  • Farmland Partners (FPI) + Gladstone Land (LAND) hold vineyard land but not winery operations

Documents Ilora.ai ingests

  • TTB Federal Basic Permit
  • TTB COLA approvals
  • Production logs (BBL or cases by SKU)
  • POS export from tasting room
  • Wine club + beer club retention reports
  • Distributor depletion reports (wholesale)
  • Excise tax filings (federal + state)
  • Inventory variance reports
  • AVA designation documentation (winery)
  • Lease abstract (with use clauses + production rights)

Industry tools (we integrate with these)

  • Ekos (brewery + cidery management)
  • OrchestratedBeer / OrchestratedSPIRITS (brewery ERP)
  • BrewLogix (taproom POS)
  • vintrace (winemaking + traceability)
  • WineDirect (DTC e-commerce + wine club)
  • Commerce7 (DTC platform)
  • AGCode (vineyard + winery management)
  • Toast / Square (tasting room POS)
  • Restaurant365 (accounting)
  • TTB Online (federal compliance)

Frequently asked

Common questions about brewery / winery.

What is the three-tier system in alcohol sales?
The three-tier system, established by the 21st Amendment, requires three distinct entities for alcohol distribution: manufacturer (brewery / winery / distillery), distributor (wholesaler), and retailer (bar, restaurant, store). The system was designed post-Prohibition to prevent vertical integration. Brewers + wineries cannot sell directly to retailers in most states (~30 states are strict 3-tier; ~20 allow some self-distribution). DTC wine shipping is allowed in ~46 states under varying license + volume caps; DTC beer shipping is allowed in only ~12 states. The system fundamentally shapes brewery + winery margin structure: wholesale margins run 30-35% vs DTC 50-65%.
How is craft brewery profitability measured?
Craft brewery key metrics: BBL produced annually (Brewers Association microbrewery <15K BBL, regional 15K-6M BBL, large >6M BBL), cost per BBL (target $80-$120 fully loaded for craft), wholesale price per BBL (~$140-$190), tasting-room sales contribution % (target >30% to support unit economics at <10K BBL scale), and prime cost (COGS + labor, target ≤60%). Production below 5,000 BBL with limited tasting-room sales is structurally challenging — most craft brewery closures cluster at this scale.
Which companies own breweries and wineries publicly?
No pure-play brewery / winery REIT exists. Public brewery operators: Anheuser-Busch InBev (BUD, global megabrewer), Molson Coors (TAP), Boston Beer Company (SAM, Sam Adams + Truly + Twisted Tea), Heineken (HEINY). Public winery operators: Constellation Brands (STZ, ~$30B mkt cap, owns Robert Mondavi + Kim Crawford), Treasury Wine Estates (TWE, ASX-listed, Penfolds + Beringer), Duckhorn Portfolio (NAPA, $1B+ mkt cap), Diageo (DEO, owns Guinness + Casamigos + multiple wine brands). Real estate beneath chain brewpubs (BJ's Restaurants BJRI, Yard House) is held by net-lease retail REITs (O, NNN, EPRT).

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