Author: Cyndi

Employee Training:  It Starts with the Interview

Cyndi
photo showing employee receiving training behind the bar

By: Earl E. Sullivan

In the hospitality industry employees come and go.  If you are lucky, you will have them for several years.  Employees staying in the hospitality sector can often bounce from place to place making training more difficult as well as more important.  With new employees their training is your opportunity to break any bad habits from previous employers and set the standard at the very start of your new relationship.  How your employees treat your customers, their team mates and the business will be a direct reflection on the business and corelate directly to profits.  With that, employee training starts at the interview. 

  First, are you on time?  It sets the expectations that they should be on time.  If you do not set the standard, how will they know the true measure of your expectations.  Are you prepared?  If you are not, why would they try to be prepared in the future?  Are you professionally dressed?  I fully understand that sometimes you have a new hire come in to interview after you just finished with some hard work and you are a little on the purple side.  Take them in the back and show them where you were working and why your attire is relevant to the job you are doing and important for the role that they are seeking. 

  Next, all the same questions apply to the candidate.  Are they on time?  There are reasons why people can be late.  New location that is unfamiliar, traffic or general lack of attention to detail.  For us, late is a red flag.  It indicates that the person did not think through the details of the job interview beforehand and that you are just another job and not a sought-out destination to work.  Are they prepared?  Again, is this just a job or are they passionate about wine or your brand or the industry?  Have they looked at the website?  Do they know what type of beverage you produce?  Do they know some of the common events you do or traits of your business, like being pet friendly?  Did they visit your space prior to the interview to see how your business operates.

   With social media and websites, it is not unreasonable to expect that a candidate would come in knowing something about your business.  It is hard to find the right person but putting the wrong person into the culture with both your existing staff and your customers is worse than being shorthanded.  Someone should want to know where they are interviewing, come prepared and be able to see if it is as much a fit for them as for you.  Unprepared equals not invited back at our facility.  Finally, are they dressed appropriate for your brand.

   Every brand has a style – some are casual, some are edgy, some are old-school.  Trying to fit someone into your brand that does not naturally fit will be a long-term problem for both your team and your customers.  They do not have to have on the trendiest clothes in the business or the most expensive shoes.  However, if you are an edgy brand and they show up in khakis and a button down, you might want to ask some additional questions.

  When you are first looking at candidates, you will get a sense of how well versed they are in customer service and in the trade. But you will also be setting the standards that your company will have if you conduct the interview with the same attention to detail that you provide your customers during service.  In addition, how you treat the prospective employees as well as your main staff will determine how they treat the customers.  They learn by seeing and experiencing the way the current team works.   If you or your team do not smile, do not greet guests, or do not take an interest – why should they? 

  In our business, once we pass the interview stage we put the prospective employee into a trial shift.  This allows them to see the pace of the workplace, engage with the team and see what type of clientele we have.  Many a candidate have not made it past the trial shift because of lack of empathy, unwillingness, or inability to pitch in, (even if they are new) or just a general attitude that does not mesh with the team.  You never want to throw a curveball at your team with personalities unless they are looking for something to add to their current group dynamic.  It is an easy, safe, and cost-effective way to see if this person is going to be a good fit for your team.

  The next step in how you conduct your training is what you type of benefits you provide to the new staff member.  Remember, it takes time and money to train someone.  You want them to stay with you for as long as they can, and to do that they need the prospect for a living wage. 

   Food insecurity and housing insecurity are the two biggest issues facing employees in the hospitality sector.  When they walk into your tasting room or bar and see that it is not busy, they instantly wonder if they will be able to pay rent or buy food.  If they do this enough, they will either need to leave to find more secure wages or get a second or third job.  When an employee has multiple jobs, by nature, they will be split on their loyalties and focus.  Lack of passion for what you are doing or not attending to the details of service lead to compounding problems with the guests. 

  Not everyone can afford full time or salaried employees but what can you do as an owner or manager to make sure that when things are slow the employee has an opportunity to earn or when things are busy, they can bank a little extra money to tide them over during the lean times?   In our facility, our employees have full benefits which come with additional responsibilities.  Not every facility is the same but the cost of training employees and the cost of losing customers from poorly trained employees is real across the board.

Moral of the Story

  The right employee can make or break you.   It is your responsibility to set the tone from the beginning.   Invest time in bringing people on so that you add the right dynamic and personality to your team and your brand.  You can train wine; you cannot train attitude.  And it all starts with you at the interview.  So, take it seriously and use the time wisely.

Contact the author at earl@telayawine.com

Piney River Brewing Company:  Craft Beer That’s About Place

Cyndi
photo showing barn and outdoor patio of Piney River Brewing Company, Missouri Ozarks

By: Gerald Dlubala, Staff Writer

Sometimes, sitting around a bonfire enjoying a craft brew can be the best thinktank in the world. Such was the case for Joleen and Brian Durham, founders and owners of Piney River Brewing Company, an award-winning, family-owned brewery in the Missouri Ozarks. While enjoying a bottle of Ommegang’s Three Philosophers, an idea sparked that gave birth to Piney River Brewing Company, humbly nestled in the Missouri Ozarks. The Durhams began beef cattle farming in 1998. Thoughts turned introspective when they wanted to invest in themselves, their land and their property to bring additional value to their rural community.

From Craft Beer Lovers to Award-Winning Craft Beer Brewers

  “We were homebrewers, and we loved and homebrewed craft beer,” said Joleen. “As far back as the early 2000s, whenever we would travel, we always looked for local beer options to sample and maybe have with a meal. Craft beer wasn’t as big then. There weren’t nearly the number of taprooms associated with craft brewing, but given the opportunity, we visited those as well, and I think doing that kind of sparked us to do it. We always believed that craft beer is about place, and at the time, we knew we lived in a unique place. The Ozarks are a place people recognize as a vacation destination full of nature, so we thought we should make a craft beer that carries the Ozarks as a theme and reflects those qualities.”

  Piney River Brewing Company offers beers with names like Missouri Mule, Old Tom Porter, Black Walnut, Float Trip Ale, Bronzeback Pale Ale, Low Water Bridge and more. Their beers are brewed using limestone-filtered well water from a natural spring on their property. In 2010, a deeper well was dug on their property to tap into their natural water supply more efficiently.

  “We make no changes to our natural water profile at all,” said Joleen. “We have a very large aquifer in the area. We have to test our water regularly, and the tests on the water profiles from our wells and the natural springs on our property yield the same results, so that’s pretty cool. We’re pulling water out of our limestone-filtered spring, which plays a key role in our brewing.”

 “Our Black Walnut Beer is our most popular and has become synonymous with our brewery,” she said. “It’s an American-style, dark wheat beer made with the meat of locally sourced black walnuts. It was one of our earliest beers because we looked for an ingredient that the Ozarks is known for, and black walnut is that flavor of the Ozarks. It can remind you of your grandma’s cookies, a black walnut ice cream or just eating them while growing up. The Ozarks grow the most walnuts in the country; we’re proud of that. We don’t use the hull, only the black walnut nut meat in our brewing. The way we utilize them in our brewing process removes the natural tannins in the nuts and, instead, creates a subtle fruitiness. You get this very nice aroma of black walnut when you pour a glass, and then you get a black walnut finish, but it’s not sharp or abrasive in any way. Brian chose to use a wheat beer to highlight the flavor, and the dark wheat is a play on the black walnut name. It has a smooth, light drinkability with a lot of body and flavor that has turned out to be a gateway beer for those who thought or said they don’t like or wouldn’t drink dark beers.”

  Joleen said their original plan was to make great craft beer for distribution that reminds people of good times spent in nature. As the majority of their beer is still canned for distribution purposes, the evolution of Piney River Brewing Company has resulted in a very vibrant, on-site brewery and taproom.

  The 1940s-era barn was meticulously cleaned and decluttered to become the “BARn,” which opened in 2011 and was home to the first official brewery for Piney River Brewing Company. It featured a 10-gallon Sabco Brew Magic Brewhouse to brew the Durhams’ original homebrew recipes for public consumption. When demand quickly outpaced production, and Piney River got its first distributor, the Durhams purchased a used seven-barrel brewhouse and other equipment, including a two-head canning unit for 16-ounce cans.

Piney River Brewing Company became the first microbrewery in Missouri to can their beer on-site at the brewery. The accolades and demand continued, and by 2014, thoughts of expansion were again on the table. Ground was broken for a larger barn in December 2014, and with a $1.3 million investment in a new 15-barrel brewhouse and eight-head canning line, Piney River Brewing’s roots were firmly set.

  The original “BARn” is a booming taproom that welcomes guests every weekend. The brewery regularly draws customers from up to a 90-mile radius. They also welcome those passing through the Ozark region, including people from all over the world who come to their farm to enjoy their property and craft beer. They continue to grow as a destination craft brewery by offering new beer releases and popular live music to also draw craft beer lovers like themselves to their brewery.

All in the Family: Accolades, Awards and Andy’s Root Beer

  Brian and Joleen’s son Andy was in elementary school when the Durhams started putting in the long hours and effort to get Piney River Brewing up and running, whether brewing, canning or running the taproom on weekends. Joleen said that Andy was always nearby, reading a book or visiting with customers at their picnic tables. He wanted to be involved somehow, so his parents let him pick out the root beer syrup of his choice to keg, and they named it Andy’s Root Beer.

  “It wasn’t long before he wanted to scale up,” said Joleen. “He noticed we were canning everything except his root beer. He was probably all of 12 years old at this time. We sent him to a kids’ business camp, and wouldn’t you know it, he won the junior division’s business pitch contest, pitching his root beer canning idea. Andy’s Root Beer has now taken on a life of its own. It has won a couple of awards through the U.S. Open Beer Championship, and it is also sold in the taproom. Some folks like to have a shot of Andy’s Root Beer with their pint of Old Tom Porter. We started canning his root beer after he won the awards, and now you can find it around the area in cans and on draught. Andy gets the proceeds after expenses, which helped him buy everything from band equipment to a car, and now provides him with money to spend while he’s in college.”

  Speaking of awards, there are no shortages when it comes to Piney River Brewing Company and recognition. Just recently, Piney River Brewing Company’s Old Tom Porter took home the bronze medal during this year’s Great American Beer Festival competition, with 1869 entrants representing all 50 states plus Washington, D.C. and Puerto Rico. There are too many prior awards to mention individually, including gold, silver and bronze medals for nearly all of their brews over the years. Additionally, Piney River Brewing Company was named Best Microbrewery, People’s or Editor’s Choice four times over the last 10 years in the U.S. Open Beer Championships and has received accolades from the World Beer Cup, Great American Beer Festival, The Best of Craft Beer Awards and from Rural Missouri Magazine.

Enjoy Your Brewery Experience, and Stay a Bit If You’d Like

  “Well, we are full-time beef cattle farmers, so you’ll pass through a couple of cattle guards along the two-mile gravel road on the way here,” said Joleen. “But then, you’ll see this brewery in the middle of nowhere. The taproom is open on the weekends, with live music. Handmade pizzas and pretzels are available, and outside food can also be brought in to enjoy while visiting.”

  Piney River Brewing Company sits on the Durhams’ original 80-acre farm. When a nearby property became available, they took the opportunity to buy that and enhance the Piney River experience.

  “Back in 2020, our area was hit with a devastating hailstorm right about the same time as COVID hit,” said Joleen. “Prior to that, in 2019, a farm on our same road came up for sale, and the family contacted us to see if we were interested. It contained an old, severely neglected house that got absolutely shredded from the baseball-sized hailstones, taking out windows and everything.”

  “We ended up utilizing our staff, who weren’t doing anything due to COVID, to gut the house and turn it into an extension of the Piney River experience,” she said. “Now, it’s a little weekend getaway that we call our Bed and Brewery. It’s on the same road as the brewery, also in the middle of nowhere. The Bed and Brewery is a really cool extension of our brewery for those who like to come in on Friday and stay through Sunday. Along with a brewery tour, they get a place to stay with a huge front porch, fire pit and a fully stocked beer fridge to make it the ultimate escape. It’s all those things about enjoying nature, watching the stars and just getting away from it all without seeing any cars, light pollution or other people for the most part. It is a very unique and enjoyable property for those who want to extend their stay and visit surrounding areas for tourism.”

Challenging Times Call for Renewed Focus of Core Goals

  “As others can tell you, it’s challenging times for many craft breweries,” said Joleen. “For us, that means that we must continue to focus on brewing the best craft beer here in the Ozarks and remain consistent with our distribution throughout Missouri and Arkansas. We want to be known for what we do and do well right here because the freshest beer is the beer brewed closest to home.”

  “We continue to work with our distributors to ensure that what we put out there is the absolute best representation of what we do and of our location,” she said. “We want to continue providing an enjoyable and fun experience for guests of all ages, whether regulars or first-time visitors. Believe it or not, there are still people out there who have never had or been exposed to craft beer, so we want to be that gateway into the craft beer experience for those people. It seems weird to say in this day and age, but it’s really true that there are still areas of the country where craft beer isn’t the norm. We want to make craft beer a great experience for those people while providing a place that is welcome for everyone, including pets.”

  Joleen continued, “We also want to provide an example of a thriving small business located on a farm in the Ozarks. Many believe those conditions to be considerable odds, but we’re proud to be a successful family farm business. The brewery is important to us, but it’s also something we do alongside raising beef cattle and being good stewards for our land.”

  Piney River Brewing is located in Bucyrus, Missouri, in the Missouri Ozarks. Call or check out their website for more information, to plan a visit, or to book a stay at their Bed and Brewery.

Piney River Brewing Company

15194 Walnut Grove

Bucyrus, MO 65444

417-967-4001

Keeping Your Business Safe During the High Season of “Holiday Spirit”

Cyndi
photo showing many patrons at a bar sitting at the bar

By: David DeLorenzo

As the year comes to a close and a new one begins, many bars and restaurants are in their high season. The combination of out-of-towners as well as families and friends gathering to celebrate the holidays can lead to a successful season for those in the hospitality industry. But it can also bring additional safety concerns for business owners. While the holidays are for celebrating and good times, they are no time to get lackadaisical on important safety protocols. Here are some tips and reminders to minimize loss control throughout the holiday hustle bustle:

Train employees properly — Your staff members are the gateway to your success. Many customers will chose an establishment for the customer service. So hiring friendly, welcoming staff is key. However, it’s also important that those employees not only know how to treat the customer, but that they are well-trained in the safety protocols of your business. This extends to interaction with the customer as well as safety protocols in the kitchen. Staff members should be highly trained on not only their area of service (bartender, server, cook, dishwasher and host, for example), but the entire restaurant’s. Ensuring this can help you run a tight ship — and keep everyone safe.

  It’s highly researched and proven that people overconsume more during the holidays, with some sources stating December through March as the range in which alcohol consumption spikes. This is great for business if you are a bar and restaurant owner. However, it can also bring unwelcome consequences if you and your staff are not carefully abiding by the laws and maintaining your own protocols when it comes to serving alcohol.

Maintain camera footage — Having timestamped video footage can truly be a lifesaver in the case of an incident involving customers or staff. Think of video surveillance as a safety net for your business — one that you need to maintain. I highly recommended holding onto camera footage for longer than 30 days, even if you don’t think there was any incident during that time. This can be one of the most persuasive pieces of evidence in the case of a lawsuit and you won’t regret having it if that time ever comes.

Check IDs (and check them twice) — It’s better to be over cautious than under cautious, particularly at this time of year. Overserving is one thing, but overserving a minor is quite another. Make sure servers always check IDs and don’t be hesitant to have another staff member give it a look or ask for a secondary form of ID if there is any question about validity.

Security isn’t seasonal — Depending on the type of establishment you run, consider heightening security during holiday and high seasons. When overconsumption increases, this can lead to poor decisions and aggression. Having added security to support double-checking those IDs and for ensuring no one enters your establishment that has already been drinking in excess can help save your business. It’s also beneficial to hire someone that has a background or experience in security. This role requires brains and brawns.

  The bottom line is that just one claim, at any time of the year, can result in a 50% to 100% increase in your insurance rate for the next year, at least. And for the most part, this is avoidable by taking these simple precautions.

Look Ahead to Set Yourself Up for Success in 2025

Stay on top of your premiums payments — As the holidays come to a close, it’s important that your businesses finances are kept up to date and that you’re making timely payments on your premiums. They are the bedrock of your coverage — not just to keep your policy active, but to ensure that when the unexpected happens, your policy stands strong, ready to protect your establishment. If you keep up to speed on your premiums payments you won’t have to worry about any gaps in coverage that could sneak up on you in the new year.

Have, and be able to access, documentation — It’s also important to make sure your documentation and certifications are in order (and easily accessible) in the event of an audit. It’s crucial to understand that audits are not just about numbers but about ensuring your coverage reflects your reality. This will safeguard your establishment against the unexpected.

  Speaking of documentation and certifications, they are the tapestry of the hospitality industry and the shield of protection for your business. It’s not only important to have them but be able to access them when needed. When looking ahead to 2025, consider upgrading your organization systems. For example, you can invest in an app that allows you to consolidate your documentation and certification into one easily accessible format that you can get to at a moment’s notice. It’s not just about having the proper documentation and certifications, it’s about proving that you have them.

Work with a trusted specialist — End of year is a good time to review your policy, which should be done annually. When doing so, make sure you meet with an experienced specialist that is well-versed in the intricacies of your industry. At the end of the day, the rate is the rate. Unfortunately, this is the result of the amount of lawsuits that occur.

  However, if you find a specialist who works with businesses in your industry, you’re paying for the expertise that they can bring when advising you on your policy. This is invaluable, especially if you ever do get into the unfortunate instance in which a claim is filed against you, a staff member or your company as a whole.

  An experienced and knowledgeable insurance broker can review your current policy to ensure the documents are accurate and that they truly represent your coverage. They can also advise you on the importance of life insurance and buy-sell agreements. For many restaurateurs, these can seem like investments for the future. However, they are actually the lifelines of today, to make sure that your business not only survives, but thrives, even in the case of the unexpected.

  Consider your broker your partner in your thriving business. They will help you through the good times and bad. More than simply selling you a policy, a trusted insurance partner will be able to provide you with peace of mind, assurance, and a shared vision for the future of your business.

So as you head into 2025, make a list — of the things you need to do in the new year to ensure the safety and protection of your business and your staff members — and check it twice.

  Out of his passion for serving the restaurant and hospitality industry, David DeLorenzo created the Bar and Restaurant Insurance niche division of his father’s company The Ambassador Group, which he purchased in 2009. For more than 20 years, he has been dedicated to helping protect and connect the hospitality industry in Arizona. For more information visit barandrestaurantinsurance.com.

After the Storm: The Beverage Businesses Guide to Financial Recovery and Disaster Loans

Cyndi
photo showing aftermath of disaster and debris

By: Neeraj (Raj) Tulshan – Founder of Loan Mantra

In late September, 2024, Hurricane Helene ripped through the Southeast U.S. with what President Biden called “history-making” effects. With a rising death toll and billions of dollars in damages, the impact on families and communities is devastating. With a federal major disaster declaration for counties in Florida, the Carolinas, Tennessee and parts of Georgia some financial relief was provided. Unfortunately, small businesses face significant challenges after a natural or unexpected disaster like Hurricane Helene. While the impact may vary based on location, industry and disaster level, there are a few key steps that beverage businesses can do to lessen the economic impacts of natural disaster and acquire disaster loans.

Tips for Beverage Businesses to Recover from Disaster:

Physical Damage to Property and Assets

Impact: Buildings, inventory, and equipment can be damaged or destroyed by high winds, floods, and debris associated with natural disaster. Likewise, businesses can often face delays or denials in their insurance claims, which delays cost repair or stretches the timeline for repairs.

Recovery Tip: Assess the damage quickly and file insurance claims for your small business immediately. Sometimes it can be difficult to remain levelheaded after disaster, but remember to take many photographs, keep records of the damage, and work with reputable contractors to get estimates for repairs or replacements.

Revenue Loss from Forced Closures

Impact: Forced closures during and after a disaster can result in a significant loss of revenue, especially for beverage businesses that rely on daily sales cycles like bars/pubs, brewers, distributors and service-based companies. Transportation and logistics networks may be disrupted, making it difficult for businesses to receive supplies. And in dire cases of emergency, customers may leave the area temporarily or permanently, reducing demand for services.

Recovery Tip: Apply for SBA disaster loans or local assistance programs to cover lost income and operational costs while your business is closed. Consider moving some operations online or offering limited services to keep cash flow going and to maintain your sense of the customer base during unexpected times.

Supply Chain Disruptions

Impact: Weather disaster can disrupt the transportation of goods and supplies, causing delays or shortages.

Recovery Tip: Diversify suppliers if you feel you are relying on a single source for one good or product. Establish backup agreements with alternative vendors and explore local suppliers who may have the ability to provide more in the circumstances.

Power and Utility Outages

Impact: Power outages can disrupt business operations, including online orders, point-of-sale systems, and production.

Recovery Tip: Invest in backup power solutions, such as generators, to keep critical operations running during outages. Also, cloud-based services can allow for remote access to accounts, files and programs as needed.

Workforce Disruption

Impact: Employees may be physically unable to report to work due to displacement from their homes or several transportation challenges. Most small businesses see an uptick of employee absenteeism during times of disaster.

Recovery Tip: Create an emergency communication plan to stay in touch with employees. As is possible, offer flexibility, including remote work options, or temporary paid leave to keep your workforce intact and loyal.

Decreased Consumer Spending

Impact: Your customer base may be financially impacted by the disaster, leading to reduced demand for your products or services.

Recovery Tip: Adapt your marketing strategy to target new or existing customers online. Consider offering discounts or flexible payment options for loyal customers during the recovery phase.

Increased Operating Costs for Recovery

Impact: Repairing damage, replacing equipment and restocking inventory can significantly increase operational costs after a hurricane.

Recovery Tip: Seek financial assistance, such as SBA disaster loans, FEMA grants, or state and local programs. These can help cover recovery expenses without straining your cash reserves.

Reputational Damage

Impact: If your business is unable to fulfill orders or provide services, customers may turn to competitors, damaging your brand.

Recovery Tip: Communicate with your customers about the status of your business. Be transparent about delays or issues and provide regular updates to maintain trust and customer loyalty. Remember, it’s best to be genuine when communicating about challenges. Recognize that many of your customers may be dealing with similar negative effects.

Emotional and Financial Strain

Impact: The emotional toll of dealing with the aftermath of a disaster, combined with financial uncertainty, can be overwhelming for business owners.

Recovery Tip: Beverage business owners may have invested personal savings into their business, and the destruction or disruption caused by natural disaster could be devastating for their personal finances. In any instance, beverage owners should seek support from local business networks, recovery organizations and mental health resources.

Difficulty in Accessing Aid and Resources

Impact: While disaster loans and grants are available, the application process can take time, and many businesses may face immediate cash flow problems while awaiting assistance. Likewise, it can be daunting to navigate the complex paperwork required for disaster loans, insurance claims or government aid.

Recovery Tip: Reach out to a trusted financial advisor to help you sort through complex paperwork or claims. Financial experts, such as Loan Mantra, can help you determine the best economic recovery strategies and help you find assistance. Similarly, many nonprofits or other professionals are available to help small businesses get disaster loans and aid.

What Kind of Federal Assistance or Disaster Loans are Available?

  After a natural disaster like Hurricane Helene, small businesses can access various disaster loans through the U.S. Small Business Administration (SBA). The SBA offers disaster assistance in the form of low-interest loans designed to help businesses repair or replace real estate, inventory, equipment, and other assets damaged or destroyed. Businesses of all sizes, private nonprofits, and homeowners or renters (depending on the loan type) may apply.

  Applications are typically available through the SBA website or local disaster recovery centers. Businesses will need to provide financial statements, tax returns, and other documents to prove damage and financial loss.

Here are the primary types of disaster loans available:

SBA Disaster Loans for Physical Damage

Business Physical Disaster Loan: Available to businesses of all sizes to repair or replace real estate, equipment, inventory, and other business assets damaged during a disaster.

Loan Terms: Up to $2 million with terms as long as 30 years, depending on your ability to repay. Interest rates for businesses without credit elsewhere are low (around 4%) and slightly higher for businesses with credit elsewhere.

SBA Economic Injury Disaster Loans (EIDL)

Economic Injury Disaster Loan (EIDL): This loan provides small businesses with working capital to meet necessary financial obligations that they could have met if the disaster had not occurred. It’s designed to help businesses recover from the economic impact of a disaster, such as revenue loss.

Loan Terms: Up to $2 million at interest rates around 4% or lower for businesses without credit elsewhere, with a term of up to 30 years. These loans are only for essential needs, such as payroll, rent, or operating expenses.

SBA Military Reservist Loan Program

Military Reservist Economic Injury Disaster Loan (MREIDL): For small businesses whose employees are essential to the operations of the business but are called to active duty. It helps the business meet operating costs until the employee returns.

State and Local Loan Programs:

State and Local Relief Programs: Some state and local governments offer disaster relief programs, which may include low-interest loans, grants, or temporary tax relief.

Private Loans and Grants:

Non-SBA Lenders: Some banks and credit unions may offer special disaster recovery loans for businesses, often at low or no interest. Additionally, businesses can look for grants from nonprofit organizations or industry-specific programs.

Federal Assistance through FEMA:

FEMA Grants and Assistance: While FEMA generally helps homeowners and individuals more than businesses, it can aid some small businesses, particularly agricultural enterprises or non-profits, as well as provide information on SBA disaster loans.

Next Steps:

  The worst time to get documents in order needed for financial assistance is after a disaster happens. By then, important paperwork, vital records and electronic files may be destroyed or in-accessible. Uploading these files to a safe place can ease the process and put you first in line for assistance. Companies like Loan Mantra offer free accounts to house financial documents that are needed to apply for grants and loans in a secure digital format.

  Hurricanes like Helene, or any other natural disaster, can hit beverage businesses hard, but with the right recovery strategies, you can minimize the damage. By securing financial assistance, communicating with employees and customers and preparing for future disasters, your beverage business can better weather the storm.

  Raj Tulshan is the founder and managing member of Loan Mantra, a one-stop FinTech business portal that democratizes the loan process by providing corporate sized services and access to entrepreneurs, small and medium sized businesses. Connect with Raj and Team Loan Mantra at 1.855. 700.BLUE (2583) or info@loanmantra.com.

Why Authentic Marketing Wins

Cyndi
stacked beer barrels with various brand names of beer manufacturers

By: Hanifa Sekandi, Staff Writer

Authenticity wins the day. This is a cliche saying that rings true in today’s complex marketing landscape. People are not easily fooled by inauthentic brands. They prefer brands that convey truthful marketing strategies and products that support their claims. Your consumer desires connection. They desire to be valued and respected. The money they spend on your beverage is money hard-earned. Brands should move from the notion that their consumer is just a commodity that lines their pockets. Your consumer is your lifeline. They keep the doors open and keep you relevant.

  This does not mean that you cannot devise over-the-top marketing campaigns. Of course, draw your consumers in with out-of-the-box marketing campaigns. It illustrates that you believe in your product and care about your consumers buying choices – so much so that you will go above and beyond to maintain their brand loyalty while keeping them entertained. A good example of this is popular comic book films. There is a loyal consumer who loves the books and anticipates a big-screen release. A creative ad campaign or movie trailer excites loyal fans. However, things can go wrong quickly if the marketing strategy deviates from what is expected. Die-hard fans prefer familiarity and authenticity. They do not take well to brand reinventions that are gimmicky or inauthentic.

  So, how do you become an authentic marketing expert? How do you win as a beverage brand with authentic marketing?

  There is a lot of competition. Keep your eye on the prize, your consumer. Every brand should have an ideal consumer profile. This archetype needs to be well-researched. Keep in mind that it is not your job to tell your consumers what they need; your goal is to show them that you are a brand that understands their needs. Your beverage is the missing piece to the puzzle. For example, Chill House Ale is the beverage that adds to a warm-cooked meal or Sunday night football.

How to Attract Consumer Loyalty

  The simple answer is research. But the most honest answer is a good marketing strategy. Research is everything in the beginning stages of brand development, but it will not be enough with a subpar marketing strategy. Yes, an in-depth understanding of your audience is essential. But, it will not help you connect with your audience or increase brand awareness if you do not know how to turn heads. Give people something to talk about. One could argue that there are a lot of great beverage brands no one knows about that are better than many popular legacy beverage brands. Why? Brands underestimate their marketing spend. They spend a lot of money on packaging and branding, forgetting that a great label is a good start but will not solely sell your brand.

  So, now you have your branding in place. In your mind, your beverage is of great quality and packaged well. Where do you go from here? Chase your consumer. Yes, that is right. Go to where they hang out. Become your consumer so you can understand their buying decisions. Do you need to start local? Get your beverage distributed at local bars and restaurants. Is your consumer an adventurist who loves the outdoors? Go to the places and spaces where your consumer finds joy and comfort. Build relationships with businesses that have built a relationship with your consumer. If your consumer likes to ski and loves colder weather activities, host a night at a popular bar in Whistler or Vail.

  Would you like to attract football fans? Have you ever thought about tailgating with the fans? Join in on the festivities. Show your consumers that you are like them and you enjoy the activities that they do. Make sure your approach is authentic. Tailgating culture is about a community of sports fans sharing their love of the game. Are you the quintessential football beverage brand? If you are the new kid on the block, you will benefit from spending time with your consumer. This will help you make better marketing decisions. Get honest feedback about your packaging or flavor profile. Everyone on your team should participate in field marketing, even the CEO. To be authentic, remember you need to show up more than once. Commit to tailgating with football fans as much as possible. Be the familiar brand that shows up rain or shine because you love the game and want to be a part of the community.

  Simply put, you attract your consumer by acting like your consumer – by embodying who they are and what they desire.

How to Create an Authentic Connection

  Connecting is easier than you think. Be who you say you are, nothing less and nothing more. Imagine buying a beverage for many years; you love this brand because it is consistent – same great taste and quality. Then, one day, you take a sip, and something is off. You read the label and realize they added in another ingredient. It is a slight deviation from the previous beverage you loved, but it is not the same. You give it another try but realize it no longer meets your expectations, so you decide to move on to another beverage you like or a brand that always stays consistent.

  Just like all relationships in life, being consistent builds authentic relationships. Are you a beverage brand that stays true to your mission statement? Your consumer promise? Or do you cut corners when there are higher gains at stake? Are you driven by popularity and the short wins that happen when you chase social media trends? Authentic connections take time to build and seconds to break. This is where a lot of brands struggle. It is enticing to jump on the viral bandwagon. It pays off for some brands, but it does not work out quite well for others. New brands can benefit from viral trends since they are still in the audience-building stages. Brands with an existing audience they worked hard to captivate can fall short if they jump on a trend that could alienate their consumer.

Why No One Believes You

  Are you struggling to build a loyal consumer base? Ask yourself, would you buy this product if you saw it in the store? Are you compelled to buy this beverage when you see a social media post or ad? If your marketing strategy does not excite you and your team,  it will not excite your targeted consumer. Remember, the first consumer of your beverage is you. Consider the time you spend perfecting the taste, sourcing quality ingredients and finding the right bottle and label. The love of the product must occur during these stages. Amongst other beverage brands, you should see your product as the diamond in the rough – the beverage you would reach for on a busy liquor store shelf where the choices are endless. There are so many beverages to choose from, but it is the winner every time.

  Belief in your product shows in every detail. Fortunately, brands can reach their audience without paying millions for traditional marketing. Out-of-home marketing is not affordable for everyone. The online landscape allows brands to create authentic ads. Each day, a brand can seize the moment and create a timeless video that best illustrates what it represents and how this beverage was made with pure heart and dedication – a beverage brand for the people. These are people who look for connection, work hard and want to know that you care. This product is more about them than it is about you. As a brand, if you can demonstrate this, people will believe you.

  It is okay to go back to the drawing board and start again. Many brands refresh their websites and social media channels. If there is room in your budget, hire a brand strategist who can give you a 360-degree view of your brand and what it needs to capture an audience. Be sure to hire someone or an agency with a track record within the beverage industry. Every penny spent should be well earned, so choose wisely. For some brands, it is beneficial to hire a marketing strategist who will work exclusively with your company. It may take some time before you make headway. Meanwhile, having someone in-house will allow for more room to grow organically and authentically.

Bio-Tech Flavor Market is Expected to a Colossal US$ 69.03 Billion Fueled with 7.2% CAGR By 2034 | Fact.MR Research

Cyndi

Rockville Pike, Nov. 12, 2024 (GLOBE NEWSWIRE) —

According to a newly published research report by Fact.MR, a market research and competitive intelligence provider, the global bio-tech flavor market is analyzed to reach a size of US$ 34.44 billion in 2024 and is further forecasted to expand at a noteworthy CAGR of 7.2% over the next ten years. The continuous developments in biotechnology, particularly in the fields of fermentation, microbial engineering, enzymes, and other technologies, are revolutionizing the manufacturing of natural flavors.

  These techniques are essential because they enable the efficient and regulated synthesis of taste molecules from enzymes and microorganisms, producing bio-tech flavors of superior quality. Moreover, these approaches require less money than resource-intensive conventional extraction methods. Because of these ongoing advancements, leading food and beverage producers are embracing bio-tech tastes on a large scale. Bio-tech flavor makers are also increasing their manufacturing capacity and focusing on supplying them at budget-friendly pricing by scaling up these biotechnological processes.

Request a Sample of this Report for Additional Market Insights

Bio-Tech Flavors Growth in Market Valuation Over Years

  North America’s strong demand for natural and clean-label products is contributing to the market growth in the region. Because the region is home to biotechnology enterprises, the market is growing at a noteworthy rate. Owing to the rising demand for flavored foods and beverages, the East Asian market is estimated to provide several lucrative opportunities in the coming years.

Key Takeaways from Bio-Tech Flavor Market Study: 

  The worldwide market for bio-tech flavors is forecasted to reach a size of US$ 69.03 billion by 2034-end. The North American region is estimated to lead with a 23.9% portion of the global market in 2024.

  The market in East Asia is approximated to reach a valuation of US$ 15.95 billion by the end of 2034. The application of bio-tech flavors in beverages is evaluated to increase at 7.2% CAGR through 2034.

  Demand for bio-tech flavors in South Korea is projected to rise at 8% CAGR from 2024 to 2034. By flavor type, the microbial produced flavor segment is analyzed to generate revenue worth US$ 19.05 billion by 2034.

  “Prominent bio-tech flavor companies are investing in R&D activities to generate new and advanced microbial flavors that enhance product offerings and meet evolving customer expectations for distinctive flavors and health benefits,” says a Fact.MR analyst.

  Some of the leading providers of bio-tech flavor market are Givaudan S.A; International Flavors & Fragrances Inc.; Firmenich SA; Symrise AG; Takasago International Corporation; Sensient Technologies Corporation; Kerry Group; Frutarom Industries Ltd.; BASF SE; Bell Flavors and Fragrances Inc.; Fab Flavour; Janiel Biotech; Garden Flavours Co. Pvt. Ltd.

Bio-Tech Flavor Industry News & Trends:

  The biotech company Cultimate Foods, based in Berlin’s Biocube and Hannover (Institut für Technische Chemie, Leibniz Universität Hannover), successfully concluded its €2.3 million seed investment in April 2024. The business intends to expand its operations, business alliances, and manufacturing procedures.

  In 2024, BASF Aroma Ingredients launches a new natural product under the Isobionics brand into the taste market. Isobionics Natural beta-Caryophyllene 80, a new product in the Isobionics brand, exemplifies the company’s commitment to developing natural tastes that are impacted by consumer desire.

How Much Demand Is There in the US for Bio-Tech Flavors?

  With reputable biotechnology companies and academic institutions establishing the benchmark for the development of biotech tastes, the US is renowned for its technical innovation. These advancements are improving fermentation and microbial engineering techniques, enabling the production of high-quality, efficient natural flavors.

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  By increasing the scalability and cost-effectiveness of bio-tech flavor manufacturing, advancements are encouraging food and beverage industries to use bio-tech tastes as an alternative to synthetic or traditional natural flavors. By ensuring consistent flavor quality and reducing manufacturing costs, this technological breakthrough is also contributing to a rise in industry adoption in the United States.

 Several Beverage Companies Widely Utilizing Bio-ech Flavors Over Synthetic Ones:

  A high number of beverage producers are switching from artificial flavors to biotech alternatives derived from plants. The growing demand for natural solutions by consumers is the cause of this shift. Beyond their actual flavor characteristics, bio-tech tastes meet consumer desire for clean-label products free of artificial ingredients.

Bio-Tech Flavors Market Trends and Insights

  Biotechnology is enabling the production of unique and complex taste compounds that enhance beverages’ sensory characteristics and appeal to a wider range of customers. The need for bio-tech flavors is also driven by the growing popularity of functional beverages, which frequently include bio-active ingredients for health advantages.

More Valuable Insights on Offer:

  Fact.MR, in its new offering, presents an unbiased analysis of the bio-tech flavor market, presenting historical demand data (2019 to 2023) and forecast statistics for 2024 to 2034.

  The study divulges essential insights into the market based on form (powder, liquid, paste), flavor type (vanilla & vanillin, fruity, microbial produced, essential oils), and application (food, beverages, nutraceuticals), across seven major regions of the world (North America, Western Europe, Eastern Europe, East Asia, Latin America, South Asia & Pacific, and MEA).

Discover Additional Market Insight from Fact.MR Research:

  Flavor enhancers market is estimated to be valued at US$ 3.66 billion in 2023. The global demand is set to reach a market value of US$ 6.08 billion by 2033.

Food ingredient market size is estimated to reach $35.15 Bn in 2024 and is projected to grow at a CAGR of 4.9% to end up at US$ 56.79 billion by 2034

Natural flavor carrier market is projected to grow at a steady CAGR rate during 2018-2028. Clean Label products augur the growth of natural flavor carriers.

Gamma-decalactone market is expected to grow steadily during the forecast period. The market is projected to exhibit faster expansion in North America.

Natural and organic flavor market is projected to be valued at US$ 9.99 Bn in 2024 and is projected to rise at 5.7% CAGR to ascend to $17.39 Bn by 2034

About Us:

  Fact.MR is a distinguished market research company renowned for its comprehensive market reports and invaluable business insights. As a prominent player in business intelligence, we deliver deep analysis, uncovering market trends, growth paths, and competitive landscapes. Renowned for its commitment to accuracy and reliability, we empower businesses with crucial data and strategic recommendations, facilitating informed decision-making and enhancing market positioning. With its unwavering dedication to providing reliable market intelligence, FACT.MR continues to assist companies in navigating dynamic market challenges with confidence and achieving long-term success. With a global presence and a team of experienced analysts, FACT.MR ensures its clients receive actionable insights to capitalize on emerging opportunities and stay ahead in the competitive landscape.

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How Conveyors Are Used and How to Choose the Right One

Cyndi
photo of conveyors in a facility

By: Alyssa L. Ochs, Staff Writer

Generally speaking, a conveyor is a mechanical system that automatically transports materials within a designated area. They are helpful in many different industries, including craft beverage production, to increase efficiency and productivity while maintaining food-grade safety standards and reducing manual labor.

Conveyors serve various functions in breweries and distilleries, including grain transportation to and from silos, moving malt within a small area and transferring bottles between packaging and labeling machinery. Fortunately, there are various conveyor options available to breweries and distilleries today.

  Here are some insights about how conveyors help producers of craft beverages and tips for choosing the right one for your operations.

Understanding Conveyor Technology

  Various types of conveyor technology are used in craft beverage production to handle malt. Flexible screw conveyors are an excellent option for this purpose because they don’t require extensive cleaning or maintenance. The spiral is the only moving part in a flexible screw conveyor, making it ideal for low throughput and avoiding cross-contamination. Aeromechanical conveyors work well for microbreweries with a small footprint. They incorporate polyurethane discs evenly spaced in an air stream to handle malt for greater throughput and energy efficiency.

  Conveyors also move cans and bottles between different pieces of machinery during bottling and packaging. This process requires regular cleaning and maintenance to keep the moving parts working properly.

  Chain disk conveyors are used to transfer grain and are effective in gently and quickly moving grain while improving yield. This type of conveyor pulls segmented disks through a tube for grain transfer. Meanwhile, pneumatic conveyors, which utilize compressed air, are preferred by large breweries. It is also possible to customize conveyors to achieve tailored solutions for breweries and distilleries and integrate them alongside existing systems and processes.

Types of Conveyors and Their Uses

  Breweries and distilleries have numerous choices about the types and sizes of conveyors they implement. Yet ultimately, the goal is to improve production efficiency and maintain the quality of beverages as materials move across conveyor lines.

  It is common to choose mass-flow conveyors for canning and bottling purposes whenever you need to move items vertically in mass quantities. With this conveyor, you can move products up or down in a mass or single flow at a rate of up to 2,000 units per minute with consistent movement.

  Reflow conveyors temporarily accumulate products moving down a conveyor line and provide necessary time between machines used for different purposes at different stages of the production process. For example, a reflow conveyor may be used during the transitions of moving products between labeling stations and packing equipment. Example configurations include in-line, serpentine, alpine, bidirectional and spiral options.

  Another option is the single-lane accumulation conveyor, which provides a downstream buffer zone where products can accumulate during processing. This conveyor helps prevent congestion and product damage as they move through the system. You might consider using one of these conveyors in your packaging line so that bottles and cans can be held in place temporarily while awaiting the next processing phase.

  Bucket lift conveyors are made of carbon steel and have plastic buckets on the belt to lift material in a high-efficiency lower hopper. After use, this conveyor can leave substantial residual material under the hopper and become moldy if not cleaned properly.

  Craft beverage producers can try shafted or shaftless screw conveyors but should be aware of their pros and cons. Shafted screw conveyors are more efficient, but shaftless options are more flexible and can change direction. It’s essential to check for residual material at the bottom and be mindful of the potential for loud noise due to the high speeds of the shaftless option.

  Producers can process grain through wind conveyors and rely on suction generated by a large fan to transport grain to its intended destination. This low-noise option can transport materials long-distance, but it generates some dust and isn’t necessarily the most efficient option.

  Another idea to consider is the pipe chain conveyor, which has roots in the livestock breeding industry but is now used in craft brewing. This type of conveyor system is expensive, but you’ll enjoy low noise benefits, multi-angle transportation and efficient transportation for your investment.

Conveyor Companies and Options

  Certain companies specialize in conveyor systems for the craft beverage market, including, Spiroflo, which offers flexible screw conveyors and aeromechanical conveyors. Spiroflo’s flexible screw conveyors are recommended for conveying malt in breweries and distilleries because they are easy to clean and maintain. There’s only one moving part, the spiral, and it comes with quick-release flanges that can be easily cleaned to prevent cross-contamination. If you have higher throughput, Spiroflo’s aeromechanical conveyors gently move products in an air stream and work well with malt to avoid product degradation while boosting energy efficiency.

  Another company, Floveyor, offers a tubular drag conveyor that manages complex routes and controls infeed and dosing with multiple discharge outlets in the process line. It incorporates food-grade conveying technology in a single machine to handle powders, granules and multiple grains. Floveyor invented the aeromechanical method of conveying and has been in this industry for over 65 years. Its conveyors are made from stainless steel, have fully enclosed tubing, offer a compact size and are easy to clean and maintain for added long-term value.

  Globaltek is another company that works in this space and offers a wide range of packaging, bottle handling, filling and labeling solutions. Its industrial conveyor system minimizes bacteria so craft beverage products can safely transfer and meet all stability and sanitation requirements. Globaltek offers brewery-specific, custom-made conveyors that are adjustable, reliable, efficient and easy to clean. Its product line includes a bottomless side belt transfer conveyor and accumulating tables. 

  Meanwhile, UniTrak offers a Powderflight aeromechanical conveyor with a small equipment footprint yet a high throughput rate of up to 1,440 cubic feet per hour. These machines can convey products from angles of zero to 90 degrees and have portable bases so you can move them easily for processing. In breweries, they are used to transport malt to the mash tun so it can be mixed with hot water to form mash. UniTrak also offers flexible screw conveyors with lower throughput rates as an economical solution. These conveyors are fed manually with sacks of ingredients and can convey materials at 650 cubic feet per hour. The company has been in business for over 45 years and helps customers address their material conveying challenges worldwide.

Cleaning and Maintaining Conveyors

  Aside from buying the actual conveyor system itself, it’s crucial to understand how to properly clean and maintain your conveyor to protect your long-term investment.

  Yujin Anderson, the owner & CEO of Steamericas, Inc., told Beverage Master Magazine how cleaning with steam eliminates the labor-intensive process of removing conveyor parts to rinse and wash them. She explained that you can’t use too much pressure or water when cleaning a conveyor because these modern pieces of equipment have delicate sensors and electronics. Yet, cleaning manually is very time-consuming because conveyors’ many nooks and crannies.

  This is where steam comes in to address those problems. Once water boils and becomes a gas, it acts more like air than water to get to all those tiny areas. The naturally high temperature is able to replace chemicals as the heat melts off debris and is naturally sanitizing.

  Anderson shared that using steam to clean a conveyor utilizes less water than traditional methods – more like a 10 ounce cup of water per minute instead of five gallons. Steam doesn’t expose brewery and distillery employees to harmful chemicals, promoting better worker safety and wellbeing. It also keeps employees safe because it reduces the risks of finger pinches and amputations in conveyor systems.

  Craft beverage producers often call Steamericas for steam solutions to sterilize barrels or to sanitize tanks and keg lines. However, the exact same product used for these purposes, the Optima Steamer, can also be used to clean conveyors. Therefore, this cost-effective solution is beneficial for small operations with limited budgets. The steamer is a multi-purpose product that can save you money on overall equipment investments, make your equipment last longer because it’s well-maintained, and streamline employee training with just one product to use.

Considerations about Conveyors

  Many established breweries and distilleries already have conveyor systems that satisfy their needs. But if you run a new business or are experiencing rapid growth, you might look to buy new machinery or upgrade your current setup.

  One of the most important things to consider is how much space you have for a conveyor so that the model you choose fits where you need it to be. You’ll also want to consider the prices of comparable models, their ease of use and their cleaning requirements. You can buy new or used conveyors depending on your budget, or consider leasing a conveyor if that fits better into your production’s financial plan. The installation process, ongoing maintenance and energy consumption are other considerations that factor into a decision about a getting new conveyor.

  Furthermore, you will want to explore the belt types, size and weight of the product, speed needed to move the product and the direction of the conveyor (either incline or decline). There are conveyors that you may need to wipe down dry or can wash down with soap and water, as well as various design types that include pivot, Z-frame, pacing and vacuum conveyors. It’s also essential to think about conveyor-related accessories that you may need, such as diverters, gates, side tables, pushers and control-stop safety devices.

  Looking to the future, some recent innovations and trends to watch in the conveyor industry may interest craft beverage producers. For example, artificial intelligence (AI) technology is revolutionizing conveyors and equipping them with sensors, cameras and real-time data to identify potential issues and inform users about upcoming maintenance needs. Researchers have been using 3D printing to produce custom conveyor parts for greater durability and design to tailor systems to producers’ unique needs.

  Sustainability is a significant concern among craft beverage producers today, so conveyor manufacturers are focusing on energy-efficient drives and brake systems. It is also becoming possible for robotic systems to collaborate with human users to handle sorting, packing and quality check tasks for greater efficiency and accuracy during the conveying process.

  If your brewery or distillery has yet to consider conveyor technology for your operations, perhaps now is the time to learn about the options available and their potential benefits. Staying ahead of the curve and embracing the spirit of innovation can go a long way in helping a beverage business thrive while boosting productivity, saving money and conserving resources. 

Putting Your Tasting Room to Work

Cyndi
Bar and tap handles at Basecamp Brewing Company, a popular craft brewery in Portland Oregon.
PORTLAND, OR – OCTOBER 24, 2015: Bar and tap handles at Basecamp Brewing Company, a popular craft brewery in Portland Oregon.

By: Mark Colburn

Don’t underestimate the importance of the bar/beer tender as the initial brand ambassador which is a critical piece to your marketing and sales plan, it is highly recommended that these front-line employees be consistently trained and evaluated. I suggest providing sales training for this team including probing (for customer wants/needs), food pairing and a sales incentive based on volume.

  To provide Off Premise Point of Purchase consumer recall, I also suggest a retail package display be situated in a high traffic area within the tasting room for immediate visual recognition (and take-home sales!).

Exploiting the Tasting Room

  Several of my clients complain that their tasting/tap room sales and traffic are down or flat. As a result, they often try promoting with trivia or bingo nights in an attempt to generate patronage. These may help somewhat. An alternative to this, that I like, are car shows at the tap or tasting room, brewery, distillery, or winery. There are thousands of “Gear Heads” who have muscle cars and love to bring them to car events. By conducting a local car show featuring muscle cars and adding a band or music, you now have an event or platform to promote that will attract potential customers to your venue. Do not discount the Gear Heads and car club members either. They know dozens, if not, hundreds of people like them who love quality beverages. I always take care of participants with six packs and/or sufficient samples to thank them and ambassadorize them. You might consider allowing them to have their monthly club meeting at your venue on a slow day during the week. Their cars in your parking lot will attract incremental “traffic.” Let us look at some ideas I have successfully executed that significantly built sales in multiple channels.

  While conducting a territory business review with a regional Walgreens director, I asked him if he thought the store and district managers would like to go on a “field trip” to a few craft beer tasting rooms and breweries to learn about the industry. He jumped at the idea, so I contacted three craft brewers – Pyramid (then in Berkeley, CA), 21st Amendment and Anchor Brewing. I knew their senior management teams and asked if they would pool their resources to rent a bus to take this group to their breweries and brew pubs. They were 100% in. So, I invited a full district’s store managers and three regional district managers. They all arrived on time in San Francisco where we took off to the 21st Amendment brew pub. While at 21A they met the owners and sampled a variety of their beers. We then set off to Pyramid where they got a full tour of the brewery and then sat down in the conference room for a presentation I made on the craft beer and cider industry. I fielded many questions from the group before breaking for lunch at the brewery.

  There they got to meet the middle and senior sales management team from Pyramid. After lunch we headed back to the City to Anchor Brewing where they received a warm welcome, a historic tour, and a sampling of Anchor’s finest. The tour ended with a group photo high atop the brewery from Fritz Maytag’s private penthouse. This was truly a treat for the group as this is never open to the public. From the large penthouse cocktails were served from Anchor’s newest spirits division. Afterwards we returned to one of the main stores for off-loading.

  The above concept served a variety of uses from educating and “ambassadorizing” critical individuals within the Off Premise channel to building key relationships with “players” who really make a difference. The tap room was the centerpiece for this effort. The results were excellent. All three brands received additional SKU placements throughout the large Northern California division while Anchor Brewing was able to negotiate a major pallet, 12-pack program resulting in thousands of cases in incremental revenue. Now, let us look at something less expensive.

Sales Ambassadors

  As you most likely know, your distributor teams meet once a week for a sales meeting. I have run over eight hundred of these meetings in my career and can tell you that many can be downright “dry.” My suggestion to our suppliers was to use their tap room or brewery for a future sales meeting venue. This way, your team will have your coveted On and Off Premise salespeople as a captive audience, ripe for “brand ambassadorization.” Once you procure a date for a future meeting, PREPARE for this opportunity. Preparation and REHEARSAL are imperative for this rare chance to positively influence your audience. On preparation, I would have your best presenter give a detailed summary (10-12 minutes maximum) on your company’s marketing story. I caution against making this “dry” and am always in favor of what I call, “Fun-kifization.” This is a “Markism” that simply means to make the effort fun and creative. After your presentation I would introduce the sales incentive appearing in the next month’s plan (this needs to be pre-negotiated with the distributor sales management) and be certain they understand it and the expectations. I also recommend a first week “jump start” bonus that will get your incentive out of first gear and ahead of the multiple suppliers all vying for this sales team’s attention. The meeting should end with the announcement that each salesperson in attendance will receive a free six or four pack or bottle for them to sample at home at their leisure.

Speaking of Incentives

  After your wholesaler sales team has sampled your nectars and experienced your “brand DNA” you are in a perfect position to further ambassadorize them a few months down the road with a unique incentive. I have written many supplier sales incentives that follow up on the tap room/brewer/winery/cidery/distillery experience. To further exploit the tap/tasting room I recommend creating a month-long sales incentive around distribution and/or volume increases for the winning sales division and their manager to be treated to a VIP session in your tap/tasting room. This VIP experience includes an intimate Q&A meet and greet with either the owner, brewer, distiller, vintner (or all of you!) and the winning division (typically divided into 4-5 salespeople and one division manager). The “pay out” includes a free dinner for each winner and assorted samplings of your nectars poured by one of your most senior sales team or owners. Recognize the unique opportunity this presents for your brand and future sales. A side benefit of this incentive is the “talk value” it has with the entire sales team as the winners will “brag” about their experience (at work) which keeps your brand top of mind post incentive while teasing the losers who will want to win and experience the next one. You will also benefit from word of mouth as the winning salespeople talk up your brand in their accounts. These people are influencers and are often asked where to go for a good drink. You can track this effort by training your bar staff to ask how a customer heard about your brand when they visit. The bar staff can record this and share in your weekly staff meetings.

Key Take Away

  Always remember that people buy AND SELL for people and BRANDS that they like.

beer label logo

Upscale Looks Sell Beverages

Cyndi

Everyone enjoys treating themselves to a premium product

Although inflation appears to be waning, prices at the checkout are still making most shoppers grimace. As a result, many consumers continue to seek bargains. However, they don’t want to feel deprived, so they also look for ways to indulge themselves and decide to purchase quality over quantity.

That’s one reason premiumization is an enduring trend, particularly for craft beverages. A premium image is supported by either or both the package and the label. Craft brewers and producers of craft spirits rely on numerous strategies to evoke a premium image, according to the Craft Beer and Spirits: Success Through Packaging report, published by PMMI, The Association for Packaging and Processing Technologies. Options include:

  • Label aesthetics (high-gloss, vibrant colors, metallization, holographics, peel-back labels)
  • Can shape (tall, squat, shaped)
  • Smart, interactive technology [radio frequency identification (RFID), near-field communication (NFC), Quick Response (QR) Code, augmented reality (AR)]
  • Novel shapes (flexible packaging where rigid is common or vice versa)
  • Premium bundling (e.g., gift boxes with accessories like glassware)
  • Dual-chamber bottles (especially for ready-to-drink cocktails)
  • Personalization.

Labels deliver a premium presence via visual, tactile, and/or smart features, which communicate a feeling of luxury and exclusivity. Visual tools include high-gloss finishes; metallic flourishes with ink and foil; glitter, spot, and holographic effects; laser cutting; die-cutting; and clean lines with sharp colors, which deliver shelf impact. Many of these visual features now can be delivered economically via shrink sleeves or digital printing/embellishment and open the door to inventorying bright stock rather than large quantities of pre-printed cans and labels. Digital foil embellishment continues to evolve, efficiently reproducing smaller lines and finer text, supporting variable printing, and improving economics.

Tactile features create a unique, pleasing, or unexpected sensory experience for consumers. The appeal can be so strong that the consumer can’t resist picking up the product and touching it, making it much more likely to go into the shopping cart. Tactile options include a texture to enhance a graphic element, touches of leather or other unique materials, etching, and embossing.

Smart features deliver functionality to facilitate a premium experience, build brand identity, and differentiate the product from its competition. According to the report, interactive features such as RFID, NFC, QR Codes, and augmented reality (AR), link the consumer directly to relevant, engaging content designed to enhance a luxury experience. AR-enabled packaging can deliver immersive experiences, such as virtual product demonstrations or interactive games. This interactivity builds brand loyalty.

QR codes can be scanned by the latest smartphones without downloading a third-party app. A scan of the code sends the user to a website, typically a custom landing page, which displays specific product information like the origin of the recipe or ingredients or special promotional offers. The scan also can provide an easy way to offer feedback about the product. For the processor, wholesaler, or retailer, a QR code can help enhance transparency and consumer engagement, support geolocation and tracking, discourage counterfeiting, and provide analytics to monitor and project sales.

Looking beyond the label, the package itself can project a premium image. This may be accomplished by choosing a novel format, e.g., a paper bottle or a flexible package for a product that is typically sold in a rigid container. Other tactics include differentiation via functional features like easy-open/reclose or innovative dispensing capabilities, launching specialty releases celebrating a season or commemorating an anniversary or other occasion, and presenting limited-edition products, collector’s packs, or gift packs, which may include complementary items such as related products, accessories like glassware, and/or certificates of authenticity.

These specialty releases often rely on upscale secondary packaging such as premium cartons with clear windows, handles, or elaborate embellishments utilizing technologies like metallizing or embossing. In some cases, secondary packaging may transition to non-standard options like wooden boxes, fabric pouches, or metal tubes/tins. Personalization also may play a role. This can include names, greetings, or codes etched in a glass bottle, embossed effects on glass, plastic, or metal containers, and variable printing on labels, pouches, cans, or cartons.

However, despite the audience appeal, an upscale packaging format can be challenging to execute efficiently especially if volumes are lower and special handling is required. In that situation, it may make sense to hire a third-party packager to handle tasks that are incompatible with in-house equipment. Premium embellishments also can carry a premium price tag, which may preclude their use. However, newer technologies can add embellishments more economically. For example, presses equipped with cold foil modules can minimize the cost of adding a metallized effect.

Another hurdle to premiumization is sustainability. An upscale image can’t come at the expense of sustainability. When indulging in a premium beverage purchase, consumers still look for eco-friendly attributes like recyclability, recycled content, renewable sources, lower reliance on plastic, reusability/refillability, compostability, and progress toward environmental, social, and governance goals such as a reduced carbon footprint. Whatever the choice, the packaging should provide clear instructions for disposal when it is empty. Third-party certification of environmental claims also should be considered to reassure consumers and prevent accusations of greenwashing.

Fortunately, premium embellishments do not necessarily harm sustainability. To enhance recyclability, it’s possible to specify shrink sleeve labels that are recyclable with the container or are easily separated in the recycling process. Metallized film and paperboard are compatible with recycled content. Many metallized substrates also are completely recyclable with non-metallized counterparts and have third-party certification to verify the claim.

Beverage makers will find the latest innovations in premium labeling and packaging at PACK EXPO International (Nov. 3–6, 2024; McCormick Place, Chicago). Making its PACK EXPO International debut, Sustainability Central (located in West Hall, Booth W-21020) will take an expansive look into packaging sustainability and what it means to brands, including expert speakers, and a look at actionable, sustainable solutions in manufacturing, materials, recovery, logistics, analytics, and design. Attendees will hear from industry experts on a range of packaging sustainability topics and learn how to make their brands more sustainable.

Another new show feature, Emerging Brands Central (Booth W-20049), offers the information needed to project an upscale image via an educational stage offering 30-minute presentations on product development, packaging innovation, and scaling strategies.

Other educational sessions will be offered on the Innovation Stage (Booth N-4560, N-4580, and N-4585), the Processing Innovation Stage (Booth LU-7147), the Industry Speaks (Booth N-4565), and the Reusable Packaging Learning Center (Lakeside Upper Level in the Reusable Packaging Pavilion). With more than 150 educational sessions on the show floor, PACK EXPO International is a hub for education and thought leadership where industry experts share timely knowledge on the latest topics and trends in packaging and processing.

The most expansive and all-encompassing packaging and processing industry event in 2024, PACK EXPO International, will feature 2,500 exhibitors offering solutions to many of today’s biggest manufacturing needs from an intersection of industries to 40-plus vertical markets. More than 45,000 attendees from consumer packaged goods and life sciences companies worldwide will converge, searching for innovation, connection, and insight. For more details and to register, go to packexpointernational.com.

The Science and Economics of Continuous Distillation

Cyndi
picture of Vendome Copper & Brass works distillery equipment

By: Kris Bohm: Owner of Distillery Now Consulting LLC.

If you have a drink of bourbon from a well-known whiskey brand, chances are that whiskey was distilled on a continuous column still. When it comes to making whiskey and selecting the equipment for distilling it is wise to look to industry leaders and their choices can help guide your decisions. Distilleries that are selling millions of cases of bourbon and rye whiskey annually in countries all around the globe use continuous distillation equipment to make their whiskey and that type of still might be the best choice for you.

  Most of the established distilleries in the southern United States made the decision decades or in some cases centuries ago to distill their whiskey on stills that are very different from the pot stills. While distillation of whiskey has its history firmly rooted in small batch distillation pot stills, the modern production of bourbon is a very different business from where it began centuries ago. The vast majority of whiskies you will find behind your local bar today were all distilled on continuous column stills. Whether it is bourbon, rye whiskey, Canadian or Irish whiskies there is a good chance that most of the bottles you’ll find were all made on a continuous column still. Together let’s explore a bit of history, operational theory and the economics of continuous stills. My goal with this article is to help you more carefully consider if a continuous column still is the right choice to make your whiskey.

  The science of distillation is an ancient technology, with history pointing to the discovery of distilling occurring sometime in the first century AD. As knowledge of distillation and technology improved there are records of spirits being distilled for beverage in the 12th century by Latins. Up until the 1800s all distilling was done in batches on what was a known as simple pot still. The concept of continuous distillation first recorded in Europe in the early 1800s. Many variations of the design of continuous still were created during the 1800s. The first well documented continuous still was named the Coffey still after its inventor Aeneas Coffey. This still was reported to have been patented and built in 1830 and was made from wood, iron and copper. The Coffey Continuous still was found to be far more efficient than the traditional batch or pot still. The reason this still design was more efficient was that it uses less energy and labor to produce spirits. A big benefit of the Coffey still was that it could produce much larger quantities of spirits per hour than pot stills in a much smaller footprint. The Coffey still was recognized by distillers as a better choice of equipment to produce distilled spirits on an industrial scale. As continuous distillation grew in popularity through the 1800s many refinements were made to the original Coffey design, which set the continuous column still to be the equipment of choice for distilleries that needed to make large quantities of spirits.

  Lets jump in and talk about the specifics of how continuous distillation works and how it differs from batch distillation. If you understanding of theory on batch distillation science, it is important to approach continuous distillation open minded as the operation and distillation theory is starkly different. The critically important concept one must accept when seeking to understand continuous distillation is the following.

Continuous Column Stills are NOT Pot Stills

  The principles and physics that allow a continuous still to function and separate heads, hearts and tails are completely different from batch distillation.

Below is a breakdown of the steps from start to finish and the operating principles of a modern continuous column still. We will trace the 10 steps that occur in a continuous still which will take fermented distillers beer and turn it into spirits.

1)           Beer is pumped from a tank called a beer well into the still and injected into the column above the stripping plates at a consistent and continuous flow rate.

2)           As the beer is pumped through pipes to the still the beer first passes through a heat exchanger that preheats the liquid before it enters the column.

3)           The preheated beer enters the column on the stripping plates and meets rising steam in the still which flash evaporates the alcohol out of the beer. The steam is directly injected into the base of the still.

4)           The spirits that are extracted out of the beer are carried as hot vapor into the upper portion of the still. In the rectification portion of the still the spirit it is continuously rectified till it meets that target proof that is controlled by the still operator.

5)           As the spirits are rectified in the still the proof increases which separates the tails and fusels with their higher boiling point that are left behind and concentrated on lower plates.

6)           The spirits that the distiller wants to collect moves as hot vapor onto the condensers which continuously separates the heads from the hearts.

7)           The heads and methanol which have a lower boiling point do not condense and remain vapor which is then is vented off the still at multiple condenser points.

8)           The spirits (hearts) is condensed in the condensers, where it passes through the spirit safe and is then pumped to a spirit holding tank.

9)           Thanks to gravity the water and solids of the beer slowly move down the stripping plates of the column to the bottom of the still.

10)        By the time the beer exits the bottom of the column it has less than .05 percent alcohol remaining in it.

  This summary of how a continuous still works is brief and bit simplified. There are pumps, processes and control valves that control cooling and flow to maintain equilibrium and balance in the operation of a continuous column still.

  While continuous columns still are efficient and cost effective to operate, this does not mean they are inexpensive to operate. Let’s breakdown the inputs and outputs in the operation of a continuous still to consider the large scale at which they operate.

  An 18” diameter continuous column still will distill on average 9 gallons per minute of beer. From a production perspective you can distill over 50,000 gallons of beer in a work week if the still is run 24 hours a day. In distilleries running continuous stills of this size they will often run a single shift per day and not 24/7. In that case a continuous column still being run for 8 hours a day 4 days a week will be distilling upwards of 16,000 gallons of beer per week. When this quantity of beer is distilled it can produce upwards of 45 full size barrels of whiskey per week. We will avoid the discussion here of exact cost as the price of the grains and barrels to produce these spirits can vary widely. Suffice to say the quantities of grain needed to make this much whiskey and the barrels to put it all in adds up to a sizable budget. When it comes to considering efficiency of labor my approach is to look how many labor hours it takes to make a barrel of whiskey. In my experience of operating a continuous still versus a pot still I have found it takes nearly 3 times as many labor hours to produce a barrel of whiskey on a pot still versus a continuous column still. When consideration of the difference in labor cost and energy efficiency is looked at it becomes obvious that a continuous column still is a smarter way to make large quantities of whiskey.

  Pot stills are excellent for distilling small batches of spirits and also for distilleries that do not have the budget to produce spirits on an industrial level. On the other hand pot stills are not effective to produce spirits that are comparable in cost to produce as spirits made on a continuous still. One of the biggest hurdle young distilleries face as their sales increase is having the capacity to grow production to keep up with demand. A pot still is difficult to scale up. A continuous still is very easy to scale up production. If you are thinking about starting a distillery, we urge you to consider a continuous column still to make your spirits. The economics are too strong to ignore and the reduction in cost of production is critical to sustain your business as it grows.

  Kris Bohm is the owner of Distillery Now Consulting. When Kris is not helping folks with continuous still he can be found pursuing adventures on two wheels and defending his beer mile record.