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What a brewer keeps from one hectolitre

You run the case. Read the prompt, answer questions from the notes below, and share data only when the candidate asks for it or gets stuck. Score at the end.

Case timer

00:00

Target length:

1. Read the prompt aloud

Read it slowly, then pause. Let the candidate ask questions before they structure.

A fictional brewer in Europe invoices EUR 180 per hectolitre (100 litres) of beer to shops and bars, including EUR 30 of beer excise that it collects and pays to the government. Per hectolitre, malt, hops and other ingredients cost EUR 15, packaging EUR 35, brewing energy and labour EUR 15, distribution EUR 25, marketing EUR 15 and overheads EUR 15. What is its net revenue, operating profit and margin per hectolitre? All figures are illustrative.

2. Answers to clarifying questions

This case has no scripted clarifying answers. Answer from the prompt, and say "assume what you think is reasonable" if the prompt does not cover it.

3. A model structure

Compare the candidate's structure with this one. A different split can be just as good if it is clean and fits the problem.

Operating profit = (invoiced revenue minus excise) minus costs
- Net revenue = 180 minus 30
- Costs: ingredients, packaging, brewing, distribution, marketing, overheads

4. The working, step by step

Each step shows how a strong candidate works it out. Share a new fact from it only when the candidate asks or is stuck, and let them do the math: the result in the dark box is what they should reach.

Step 1: Net revenue
What a strong candidate does: Excise belongs to the government.
Net revenue (EUR per hectolitre): 180 - 30 = 150
Step 2: Operating profit
What a strong candidate does: 150 minus the six costs.
Operating profit (EUR per hectolitre): 150 - (15 + 35 + 15 + 25 + 15 + 15) = 30
Step 3: Operating margin
What a strong candidate does: 30 divided by net revenue of 150.
Operating margin on net revenue (fraction): 30 ÷ 150 = 0.2
Step 4: Packaging share
What a strong candidate does: Packaging as a share of all costs before marketing and overheads.
Packaging share of ingredients, packaging, brewing and distribution (fraction): 35 ÷ (15 + 35 + 15 + 25) = 0.3889

The recommendation to listen for

At the end, say: "The CEO walks in. What is your recommendation?"

The brewer keeps about EUR 30 per hectolitre, a 20 percent margin on net revenue, and packaging is its biggest cost, more than twice the cost of the beer's ingredients. First, about 39 percent of the costs of making and moving the beer are cans, bottles and kegs. Second, this means a 20 percent rise in aluminium or glass prices costs about EUR 7 a hectolitre, almost a quarter of the profit. The risk is that an excise rise, which the brewer must pass on, cuts volume. As a next step, check how much of the volume is sold in kegs to bars, where packaging costs least.

Score the candidate

Score each criterion from 1 to 5. A 2 or a 4 sits between the descriptions.

This case has no exhibit. Score Exhibit reading on how the candidate used the data you gave them: did they pick out the number that matters and say what it means?

Structuring

1: No clear structure, or a memorized framework that does not fit the problem.
3: A sensible structure, but with some overlap, a gap, or no clear priority.
5: A structure built for this problem, with no overlap and no gaps, a stated hypothesis, and a clear first step.

Math

1: Frequent errors, no units, or needed heavy help to finish.
3: Right answers but slow or messy working, or one error caught late.
5: Accurate and clearly narrated, with units, a sense check, and what the number means.

Exhibit reading

1: Read the chart aloud without finding the number that matters.
3: Found the key number but gave only part of the so-what.
5: Pulled the right number quickly and said what it means for the case.

Synthesis

1: Summarized what was done, with no clear answer.
3: Gave an answer, but with weak reasons or no next step.
5: Answer first, then two or three reasons with numbers, the main risk, and next steps.

Communication

1: Hard to follow: long silences, no signposting.
3: Clear most of the time, with some rambling.
5: Calm and concise, signposted each step, and checked in with the interviewer.

Total

0 out of 25

Score all five criteria to see the band and the feedback template.