Taproom share

Definition

The portion of revenue sold over the brewery's own bar instead of through distribution.

Why It Matters

It is the single number that decides which business is being bought. A pint poured in the taproom earns retail margin and needs no distributor; the same beer sold through a wholesaler earns a fraction of it and arrives with franchise-law obligations attached. A brewery at seventy percent taproom is a bar with a brewery behind it, and it should be underwritten on foot traffic and location. One at seventy percent distribution is a manufacturer, and its risk is a distributor agreement it may not be able to end.