First Key was asked to assess and analyze brewery operational costs for a US beer company with two production locations. First Key worked with the client to develop a clear, overall picture of standard costs and actual variable costs by each brand and SKU. The First Key team started by creating a process map that helped the client understand their brewing process and cost inputs. This better informed them of how costs were added from brewhouse to packaging steps. Standard costs were created for each brand that included raw materials, labor, process materials, and utilities. This information was then used to analyze differences between the standard costs and actual variable costs. A similar analysis was completed by SKU to create a standard COGs. Through this cost analysis project and the documentation that First Key provided, the client was able to assess their performance by brand and by SKU. KPIs were established to allow easy review of variances and Gross Margin performance by SKU. With the help of all the newly developed written modeling and analysis tools, the client now has the visibility into their financial planning routines – and subsequently improve their profitability.
