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For many breweries, cans are no longer optional — they’re a necessity for distribution, grocery placements, and even your own taproom-to-go sales. But when does it actually make sense to buy your own canning line versus sticking with a mobile or contract canner?

Sales reps may tout quick payback periods, but the real math often looks different. In this post, we’ll walk through the hidden costs, tax considerations, and a simple utilization breakeven model to help you decide if 2025 is the right year to invest.

Mobile vs. In-House: The Two Paths

Mobile/Contract Canning

• Pros: Lower upfront investment, flexible scheduling, no need for dedicated staff, predictable per-case pricing.
• Cons: Scheduling conflicts, minimum batch sizes, less control over quality, costs can balloon as volume grows.

In-House Canning Line

• Pros: Full control of quality and schedule, long-term cost savings at scale, marketing advantages (branding flexibility, smaller runs).
• Cons: High capital cost, need for trained staff, ongoing maintenance, higher utility usage, storage for packaging materials.

The choice isn’t just about freedom vs. dependence — it’s about numbers.

Hidden Costs You Might Overlook

A canning line is never just a canning line. Beyond the sticker price, here are the major hidden costs to account for:

• Installation & Site Prep: Power, water, floor drains, and layout changes.
• Maintenance & Spares: Regular servicing, downtime risk, and spare parts inventory.
• Staffing: Even semi-automated lines need skilled operators.
• Materials Handling: Pallet jacks, forklifts, and cold storage for cans, lids, and cartons.
• Utility Loads: Compressors, CO₂ purge systems, and wastewater.
• Downtime Costs: Every jam or seal issue creates product loss and staff overtime.

When we model ROI, we include these items — otherwise, the numbers look deceptively rosy.

Tax Timing: Why 2025 May Matter

Thanks to the One Big Beautiful Bill Act (OBBBA), breweries can now deduct 100% of the cost of qualifying equipment in the year it’s placed in service (thanks to permanent bonus depreciation), plus much higher Section 179 expensing limits ($2.5 million cap, with a $4 million phase-out threshold).

What this means:

• A $250,000 canning line purchased in 2025 could create an immediate deduction against taxable income.
• If you’re profitable this year, that deduction may offset federal (and state) tax liabilities — reducing the net cost of the line by tens of thousands.
• If cashflow is tight, financing + bonus depreciation can still provide an effective tax shield, but you’ll need to project future profits to capture the benefit.

This is where your CPA can model scenarios: does it save you more to expense the full cost now, or depreciate it over time to balance future income?

The Breakeven Utilization Model

At what point does owning become cheaper than contracting? That’s the real decision driver.

Here’s a simplified model (numbers vary, but this gives a framework):

• Mobile/Contract Canning Cost: ~$0.35–$0.50 per 16oz can (packaging, labor, depreciation embedded).
• In-House Cost (After CapEx): ~$0.10–$0.18 per 16oz can (materials + labor + utilities, not counting the machine’s amortization).

Breakeven Example:

• If a mobile canner charges $0.45/can, and your in-house cost is $0.15/can → you save $0.30 per can.
• A $250,000 system ÷ $0.30 savings = ~833,000 cans (about 3,200 BBL) to breakeven.
• Spread across 12 months, that’s ~267 BBL packaged per month.

Key question: Can your brewery realistically sustain that volume consistently and manage distribution? If not, the ROI stretches out — sometimes beyond the useful life of the equipment.

Operational Fit: Beyond the Math

Even if the numbers pencil out, you need to ask:

• Sales: Do you have the distribution relationships to sell that volume?
• Brand Strategy: Will cans strengthen your presence in retail/grocery, or are you taproom-first?
• Capacity: Does your brewhouse have the headroom to produce enough to keep the line busy?
• Staff Bandwidth: Who will run, clean, and maintain the line?

Remember: underutilized equipment is one of the most common reasons breweries regret capital purchases.

Mitigating Risk

Not every brewery that buys a canning line ends up locked into it forever. Consider:

• Resale Value: Many mid-tier lines hold resale demand — though you won’t recoup full cost.
• Shared Use: Some breweries offset costs by running contract canning for neighbors.
• Scaling Gradually: Starting with a semi-automated line and upgrading later as demand grows.

Bottom Line

A canning line can be a powerful growth tool — or a six-figure anchor. The decision shouldn’t be made on gut feeling or sales pitches alone. Instead:

1. List true costs (capex + hidden).
2. Run a breakeven utilization model.
3. Layer in tax impacts for 2025.
4. Check your operational capacity and sales channels.

At BeerCPA, we’ve helped breweries across the country run similar models and decide with confidence whether a canning line is a wise investment.
Or, schedule a short consult within your Brewery Accounting Package and we’ll help you run the numbers for your exact situation.

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