Author: Cyndi

Mixology Meets Technology: Delivering Value Through Flavor Innovation

Cyndi

By: Doug Resh – Director, Commercial Marketing at T. Hasegawa USA

The alcoholic beverage industry has evolved in many ways in recent years, adapting to drastic changes in what consumers are looking for in their drink choices and the role that alcoholic beverages play in their lives. After years of the pandemic disrupting and influencing their relationship with alcohol, such as the growth of RTD beverages, at-home mixology and even a ‘drysolation’ low-ABV movement, consumers are cautious in their purchase decisions due to perceived economic challenges – yet still seek excitement and experience from beverages.  As consumers tighten their discretionary spending on restaurant dining and drinking, they are looking for the most value possible in their alcoholic beverage choices. The role of the flavor industry is evolving and becoming more critical than ever in encouraging product trial and experimentation through exceptional taste.

  According to Mintel research1, 80 percent of U.S. consumers feel that financial challenges would affect their alcohol purchase behavior, with more than a third of consumers citing reduced alcohol consumption in general and more than a quarter citing less alcohol purchase in foodservice. Decreasing patronage of bars and restaurants in favor of at-home mixology and drinking is a natural reaction to economic uncertainty, and North Americans are likely to continue increasing their consumption of beers, RTD cocktails, mixes and spirits at home in the future. To retain or grow their user base, brands need to continually explore creative new ways to demonstrate value to alcohol consumers, in the form of new flavors and products.

Premiumization Through Exciting Flavors

  One of the biggest shifts in alcoholic beverages resulting from economic concerns is that consumers have heightened expectations for the experience and flavor of their beverages and demand more from the category, especially when dining out. 

  In response to this shift, the prevailing trend within the alcohol industry is premiumization. Consumers are opting for ‘less, but better’ spirits, wines, beers and RTDs, and focusing on quality – buying fewer beverages to save money, but splurging for more expensive, premium brands and flavors. To many consumers, high-quality cocktails and RTDs are seen as ‘affordable luxury’ and an accessible way to treat themselves.

  One area that continually defines premiumization is compelling flavors, especially among cocktails, hard seltzers and RTD beverages. Consumer interest has never been greater in adventurous flavors,  many of which focus on delivering maximum flavor with minimum sugar. Foodservice mixologists are the forerunners of this trend, offering a broad range of sophisticated cocktails that go beyond the traditional citrus, berry and stone fruit flavors, exploring the exotic taste of botanical and floral notes and seasonal ingredients, spices and fresh herbs. Savory flavors have also grown in popularity, including chili pepper, basil and turmeric, since they help balance the sweet nature of many fruit-flavored beverages. Flavor manufacturers are focusing technology and resources on finely crafting these unconventional ingredients to produce great-tasting spirits that deliver the excitement that consumers are thirsty for in beers, RTD retail beverages or foodservice cocktails. 

  Beyond adventurous ingredients, both packaged beverage brands and foodservice operators are leveraging the power of nostalgia and fun in new flavor development. Indulgent ‘dessert’ cocktail flavors that tap-into nostalgia are growing increasingly popular, including s’mores, apple pie, churro, chocolate brownie and orange vanilla milkshake. Coffee has also experienced a major shift in demand over the last few years and is growing directionally in new product launches, including RTD “hard coffee” beverages, a fast-growing segment that is primed to appeal to younger adult consumers. Gen Z and Millennials are already decreasing their away-from-home coffee purchases and limiting alcohol intake, plus they are influenced by the influx of espresso-flavored martinis in bars and restaurants in recent years, which creates an ideal opportunity for brands to capitalize on with alcoholic RTD coffee products.

  While it’s no surprise that fruit flavors are popular across all beverage categories, the growth potential for fruity alcoholic beverages is in exotic varietals. To appeal to consumers who are seeking premium beverages, brands are going beyond traditional citrus and berry ingredients and tapping into the potential of international fruits in alcoholic product launches, such as Asian-inspired mango, papaya or dragon fruit. These unexpected ingredients encourage exploration and trial among consumers and brands are eagerly incorporating these tropical fruits in RTD spritzers, coolers and cocktails and specifically marketing these products for use in social occasions.

Leveraging Flavor Science to Deliver Value in Alcoholic Beverages

  The path to premiumization is paved by flavor enhancement technology, which is especially pronounced within the alcoholic beverage category. In recent years, several new technologies have advanced the science of beverage flavors, producing alcohol concepts with complex, intriguing flavor profiles.  California-based T. Hasegawa USA, a subsidiary of one of the world’s top food and beverage flavor manufacturers, is leading the industry in technology designed to optimize the way that alcoholic beverages taste, and even replicate the complex flavors of nature itself.

  Recently, T. Hasegawa introduced HASEAROMATM to the North American market. HASEAROMA is a proprietary novel technology that creates authentic sweet and savory flavors that reproduce the ‘first bite’ sensation of experiencing a food for the first time, packed with intricacy and nuances of flavor.

  “One of the many benefits of this technology is that it enables a higher level of specificity than other compounded flavors,” said Toshifumi Nozawa, associate director, sweet technology at T. Hasegawa USA. “While many brands in the past may have opted for a simple mango or peach flavor in product development, HASEAROMA can reproduce the specific flavor profile of an Alphonso mango or Ataulfo mango, or accurately reproduce the distinct taste of a white peach or Golden Jubilee peach. The expertise of our flavor chemists creating HASEAROMA allows us to refine flavors on a molecular level and develop products that stand out within the market and deliver value to consumers.”

  Development of HASEAROMA flavors includes an extensive sensory analysis process which isolates specific flavor molecules within food and beverages. Chemists then assemble these molecules to add depth of flavor, long-lasting mouthfeel and authentic aroma.

Lighter Libations: A Healthier Approach to Drinking

  Another major outcome of the pandemic was a notable increase in alcohol consumption for some consumers, juxtaposed with the complete opposite for others. According to a 2023 Mintel report, 17 percent of U.S. consumers are aware of and interested in a sober curious lifestyle, up four points from last year2.  More than 43 percent of U.S. consumers cited “a personal lifestyle change” as their reason for drinking less spirits, even above saving money (40 percent) or physical health (32 percent)3.

  While many of these consumers still partake in alcoholic beverages, lifestyle changes resulting from the pandemic have created lasting changes in their consumption patterns and tastes.  Despite impressive growth of non-alcoholic beverages – with more than 149 percent growth in mocktails on menus between 2020 and 2023, according to Mintel data4 – non-alcoholic beverages are not taking over. Consumers are simply taking a lighter approach to drinking by choosing low-ABV beverages that offer the intense flavor of favorite cocktails, wine and beer with less alcohol content. These options encourage moderation while still delivering enjoyment and refreshment, especially among younger consumers. Mintel research5 indicates that nearly 31 percent of adults who buy alcohol in the U.S. aged 22-44 seek out ‘healthier’ alcohol options, such as low-calorie and light beer, hard seltzer and lighter cocktails. The appeal in these products is a robust beverage flavor, often with lowered alcohol levels, for consumers who want to moderate their alcohol consumption or products with reduced sugar and carbohydrates.  

  This renewed interest in health and wellness has boosted demand for BFY (better-for-you) products, across all food and beverage categories – including alcoholic drinks in the form of low-calorie and light beer, hard seltzer and lighter cocktails. The appeal in these products is a robust beverage flavor, with lowered alcohol levels, for consumers who want to moderate their alcohol consumption while also reducing sugar and carbohydrates.  In addition to limiting sugar and carbohydrate intake, many consumers are interested in alcoholic beverages that offer functional ingredients with some type of health benefit. For example, numerous beer brands are exploring the use of adaptogenic mushroom ingredients, which claim to have anti-inflammatory benefits, while many RTD cocktails are leveraging green tea, berries and other superfoods that provide antioxidants and other tangible benefits.

  A key result of the moderation trend and shift toward healthier options is that consumers are more selective in their alcoholic beverages than ever before, which puts emphasis on delivering a heightened experience. When consumers are reducing their intake of alcohol, flavor becomes the key differentiator that leads to trial and continued purchase. The challenge that many brands face is creating clean-label alcoholic beverages that taste great with minimal sugar content while still masking the burning astringency of alcohol. Flavor manufacturers are leveraging innovative technologies and unique development processes to balance the requirements of a low-ABV and often low-calorie beverage.

  “When you remove an ingredient such as sugar or other sweeteners, the other flavors in a beverage become more pronounced or even modified,” explained Briana Tran, beverage applications technologist at T. Hasegawa USA. “Our task is to reformulate the beverage to recover the optimal flavor profile, using technologies that either mask certain unwanted notes, or amplify desirable flavors that are already in the beverage.”

  One such innovation that is being leveraged in the production of alcoholic beverages is T. Hasegawa’s BOOSTRACT®, which is a proprietary flavor modulation technology that recovers the kokumi mouthfeel and full-bodied richness. This rich mouthfeel is often lost in the filtration and distillation processes necessary to produce low-calorie fermented alcoholic beverages such as beer, wine, hard kombucha and malted liquor.

  “With this new technology, we’re able to isolate the most desirable flavors in a beverage and produce the ideal representation of that flavor,” said Tran. “For example, if we’re working on a strawberry profile, we can amplify the natural flavor that’s already there and produce a much bolder, true-to-life strawberry taste – even with low-sugar alcoholic beverages.”

RTDs and Hard Seltzers – the Epicenter of Flavor Innovation

  RTD alcoholic beverages have been on a growth trajectory since early in the pandemic, as consumers at home were looking for convenient variety and were willing to explore new products withing the RTD cocktail and hard seltzer categories. While many RTDs do focus on reduced sugar and other tangible health benefits, these products are typically outliers within the trend of reduced ABV beverages. Hard seltzers are one of the fastest-growing segments in the alcoholic RTD category, and the combination of flavored sparkling waters with fermented alcohol has grown enormously popular among younger consumers in recent years as a BFY option that still offers a convenient way to add variety to at-home drinking.

  RTDs are a prime source for flavor innovation. Since they are seen as “lower stakes” in price and offer ultra convenience, consumers are willing to explore flavors in the RTD alcoholic beverages category. Flavor innovation is especially welcome within this category, including bold profiles and special offerings. Nearly half of all U.S. consumers in a 2023 Mintel survey cited limited time seasonal flavors as the motivating reason for new flavor trial in RTD alcoholic beverages, including premixed cocktails, alcoholic teas, flavored malt beverages and hard seltzers4. More than a third of participants cited bold internationally inspired flavors such as horchata or mango lassi as their motivation for trying a new alcoholic beverage within these same RTD categories. 

  Regardless of changing consumer patterns, alcoholic beverages need to deliver excitement and refreshment. As consumers seek more from their cocktails, wine, beer and spirits, the flavor industry continues to innovate and meet this demand – helping brands adapt to shifting consumer preferences with attention-grabbing flavors which deliver an immersive taste experience.

Abita Brewing: Louisiana Life, in a Can

Cyndi
can of Abita beer on table with crawdads and corn cobs

By: Gerald Dlubala

About 30 miles north of New Orleans, in Abita Springs, Louisiana, the Abita Brew Pub sits on the original site of Abita Brewing, which opened its doors in 1986. The brewery quickly outgrew this site, and in 1994, Abita Brewing moved about three miles up the road into a state-of-the-art brewery that now produces over 151,000 barrels of beer and 9,100 barrels of their famous root beer. Their popular lagers and ales are still brewed in small, hand-crafted batches. Quite the success story, it is the perfect example of how a dedicated and passionate team of brewery professionals combines quality, community and pride in what they do to continually grow and increase demand for their unique, hand-crafted beers and sodas.

  The Abita Brew Pub is now family-run but remains closely connected to the brewery. The brewpub serves all traditional Abita offerings and is a priority account for new releases. Additionally, the brewpub serves food, some containing Abita beers in the recipes, while also providing expert advice on pairing Abita beers with different foods. Visitors can experience Abita Brewing’s historical roots while enjoying live music, great food and patio games, and they can also sign up for interactive events like Abita’s Painting on the Patio. 

  “It really is a museum of Abita’s history, and just like walking back into 1986,” said Heidi Guerra, vice president of marketing for Abita Brewing. “The brewpub still contains Abita’s original tanks, signage and historical memorabilia, and all of the photos, articles and signage on the walls illustrate Abita’s roots. It’s a really cool vibe and kept fresh while maintaining and paying homage to Abita’s beginnings. Then, you can drive probably less than three miles down the street to see the full brewery as it is today. The brewpub has all our beers on tap and in bottles and offers a wide selection of our brands. Unlike the brewery, where we bring in rotating local food trucks, the brewpub can pair your choice of beer with food from their full kitchen. The brewpub also uses our beer in its recipes and dressings. It’s a great way to learn about the styles of beer and experience how different beers pair with different foods. The brewpub is located directly in the town square, so it’s really a cute place to visit and just step back in time.”

Local Ingredients, Artesian Spring Water and Community Involvement Are Key

  “Hands down, we will always use local farmers and source ingredients locally where we can,” said Guerra. “This community has made us what we are, so there’s no question that we will help our community whenever and wherever possible. We use local produce like Louisiana strawberries and pecans in our beers. And I think that makes us unique in some ways, that we brew these high-quantity beers while continually sourcing local ingredients and helping our local farmers. It’s true to our roots. We like to consider ourselves Louisiana through and through, so one of our initiatives is to source locally. We’ve used Louisiana oysters in our oyster stout and Louisiana coffee beans in our coffee beers. Using pure, local ingredients in our beers and craft beverages instead of flavorings keeps our products exceptionally fresh. By sticking with natural ingredients, we don’t get that sugary, fruity, hard candy-type of flavor profile that some others do.”

  “And, of course, the water,” said Guerra. “Who could forget our water? It’s pristine, pure Artesian spring water drawn from our Southern Hills Aquifer. It’s a unique point of difference for us. We drill straight down into the system. The water is amazing. It’s the perfect pH for brewing. It’s also untreated, and when you research Abita and the water, you’ll run across stories about the water containing healing and medicinal properties. It really is a difference-maker, and here in Louisiana, we know how important the water is, so it leads us into being good environment stewards for the community.”

  Abita Brewing is proud to be a good steward of the environment and its community. Guerra says they regularly offer special releases in support of different causes and initiatives close to home.

  “We were one of the first breweries to donate money from beer sales after Hurricane Katrina happened, in the amount of a half million dollars,” said Guerra. “And we have rotating beer taps at our brewery for our Son-of-a-Saint initiative, helping fatherless boys in our city. That one is always on rotation in the brewery. But suppose someone comes to us with a cause. In that case, we will support that initiative, whether it’s donating beer, letting them use our facility for a fundraiser or in some other way. We brewed beer to raise funds to support Sierra Nevada during wildfires. We’ve supported the Pink Boots Society. We consider all initiatives brought to us and look to give back to the community. They’re the reason we are here.”

Passionate Employees & Open-Door Policies Keep Abita Brewing Fresh and Innovative

  Abita Brewing remains locally owned and operated throughout its tremendous success and continued growth. The passion and success of its employees are reflected in the diverse products and in-demand Abita beverage options.

  “We have a complete open-door policy,” said Guerra. “All ideas are welcome, no matter how far-reaching they may be. Employees can always text or call me. I have a whiteboard in my office where employees are free to jot down ideas for beers, names or whatever. And they do that. Our employees have a passion for craft brewing and for the industry. We have a Culture on Tap committee to ensure we’re listening to employees and giving back to them. We buy into them and their goals just as much as they buy into us and our goals. We meet every month and hear their ideas about everything, including employee appreciation, but it’s all about having a team that’s passionate about the industry. We work hard to play hard, and our team, from top to bottom, is always ready and willing to explore new ideas, packaging designs, flavor profiles and more. Our employees get excited about new things. Pictures get circulated as soon as someone sees something new in the brewery, and text messages fly around. We have really great communication amongst all of the employees.”

  Guerra says that problems are met with an all-hands-on-deck approach, which is demonstrated by the fact that she keeps her safety gear nearby in case there is a problem in the brewery that requires more hands.

The Ability to Play While Remaining True to the Brand Are Core Principles

  “Our brewers love playing around with things,” said Guerra. “Abita has a pilot brew system that we call the brewer’s playground, where they can play and experiment with different taste and flavor profiles or styles they want to explore. They are very creative and make time to work through whatever whim or idea pops into their head. They are also very open to whatever ideas others bring to them.

  “The Fluffernutter beer was an idea that stemmed from my son having a Fluffernutter sandwich at a friend’s house,” said Guerra. “They got to making it into a beer and putting it on tap, and people loved it in the taproom, so our Fluffernutter beer went into production. That shows how open and reactive our brewers are to new ideas. They listen, but then they get to work to make the ideas come to life and see if they work. You know, we were brewing fruit and high ABV beers in the 90s before it was cool, so we don’t mind taking a risk on certain things. But we do it in the format of playing around with it in the brewery, putting it on tap and seeing how people react to it. But at the end of the day, we still want to focus on our core brands for mass production because that’s what got us here, and that happens to be our fruited beers like Purple Haze, Strawberry Lager and our high ABV beers like Andygator®.”

  Guerra tells Beverage Master Magazine that they’ve been brewing their root beer since the 90s, and it remains their most sought-after soda. “Root beer is perfect for brewing,” said Guerra. “We use Louisiana sugar cane for an authentic Louisiana flavor and great taste. It’s really a great product, and it’s gone international, which is great and crazy at the same time. The root beer is our main soda, but we also do a vanilla crème soda as our root beer’s wingman. During seasonal times, we’ll make a King Cake soda. We do soda tours so kids can have a soda flight and feel involved when their family is here. We also have an NA option, our Hop Water, so we do dabble in other things. It’s available on our website and locally here in Louisiana, but for the most part, we like to stay within ourselves, creating brand extensions off of the products that we know and love.”

Sustainability and Green Principles Are Included in Every Facet of Abita’s Brewing Process

  Abita has a long history of energy conservation, recovery and reuse. Its brewhouse utilizes a self-sustaining EquiTherm system, wherein they capture the heat of their brew kettle exhaust system and combine it with heat produced during the wort cool down. That recaptured heat gets reused to heat water, creating an efficient cycle without biogas. Abita also has its own industrial wastewater treatment plant that generates energy. They use a Bio-Energy Recovery System (BERS) to treat their wastewater, resulting in a 95 percent reduction of load on the local sewage system and a reduction of solid landfill waste.

  From Abita’s glass packaging to its truck delivery fleet, Abita uses processes to reduce materials and decrease emissions. Local farmers utilize the spent grain and hops from the brewing process as feed for their cattle.

Abita’s Future Is Exciting, Innovative & Tasty

  “A lot is happening at the brewery right now,” said Guerra. “We just completed a brand refresh for our Strawberry Lager. We have our Beeracuda coming out in cans now rather than just bottles. And we’ve deemed this year “The Year of the Gator.” So, the focus is on our Andygator®, an easy-drinking, high ABV Helles Doppelbock, our Strawgator, a combination of our Strawberry Lager and Andygator®, resulting in another flavored high ABV and Alphagator, our nine percent ABV double IPA. This gives us an awesome gator trio to offer to consumers.”

Guerra said that because Abita Brewing is known for its fruit beers, it just makes sense that it also offers a new berry variety pack. The new pack includes their popular Purple Haze®, Barney, Strawberry and Blueberry flavors in a 12-ounce can variety package.

  “Other than that, we’ll continue to play around and see if something hits,” said Guerra. “We’ve been at this craft brewing stuff for about four decades, and we’re still excited about being in the industry and hope to be involved for another four decades, at least, because we truly love what we do. Not only are we a craft brewery but also a Louisiana craft brewery, so our big thing is just putting Louisiana life in a bottle. For those who are here, have visited Louisiana or want a taste of Louisiana, we continue to try to put it out there for them. We are a craft brewery, but we are also an advocate for the state.”

  To contact Abita Brewing, view a schedule of events, schedule a tour or plan a visit:

Abita Brewing Company

21084 Hwy 36 • Covington, LA. 70433

(985) 893-3143 • www.abita.com

Is 2024 a Make it or Break it Year for the Beverage Industry?

Cyndi
man with hammer ready to hit a brick wall

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

Most small and medium business owners define this year as a “make it or break it” time for them, according to a recent survey from Slack. After dealing with the COVID pandemic, rising inflation, ongoing labor shortages, supply chain disruptions and other challenges, nearly a third of respondents (32%) aren’t sure their businesses will make it through 2024.

  Is this year going to “make it or break it” for your beverage business? There are things that all beverage industry professionals can proactively do to mitigate risks and maximize successes.

The Future of Beverage Sales Looks Bright

  First, the good news: after years of challenges and struggles – including a $200 billion loss in restaurant and bar sales during the pandemic – this year, sales are expected to top $1 trillion for restaurant and foodservice industry for the first time in history.

  More promising news: significant growth is expected in the restaurant and foodservice industry, with a projected increase of 200,000 jobs. Additionally, 45% of foodservice operators report needing more employees to meet increased customer demand. Dining out is trending again, after taking a major hit during COVID shutdowns. Now, the average American dines out three times per month and orders takeout or delivery four and a half times per month. Statistics for the younger Gen Z demographic are even higher, with 10% of Gen Z eating out at least once per week. Demand is high, especially among younger consumers, as 52% of consumers – including 67% of millennials and 63% of the Gen Z demographic– say ordering takeout from restaurants is an “essential part of their lifestyle.”

  This comes as Americans are spending more of their income on food than they have in 30 years. As food prices remain high, U.S. consumers spent more than 11% of their disposable income on eating, either in restaurants or at home.

But Costs are Rising

  It’s not all sunshine and rainbows for the restaurant industry, which is facing increased operating costs that are cutting into their profits. In fact, over a third (38%) of restaurant operators said their restaurants were not profitable last year.

  A big problem is that grocery prices continue to skyrocket, and 97% of restaurant operators say higher food costs are negatively impacting their businesses. Grocery prices have jumped by 25% over the past four years, outpacing general inflation (19%) during the same timeframe. Several factors – including supply chain disruptions, droughts, avian flu, and labor shortages – have contributed to higher food prices.

  Another pressing issue: 98% of restaurant operators say higher labor costs are a problem for their business. For instance, unhappy employees cost U.S. businesses an astounding $1.9 trillion in lost productivity last year, according to a recent Gallup poll. Another report found that the highest percentage of paid time off (PTO) requests in the last four years (56%) occurred in January 2024.

  Many employees are currently disengaged, dissatisfied, and burnt out, with only one-third of respondents saying they feel engaged at work. And that’s a problem for employers, as happy, satisfied, engaged employees have been proven to boost a variety of important metrics, including sales, profits, productivity, and employee retention.

  With all this in mind, how can brewers, distributors and pub owners prepare to make it in 2024, with successful, profitable businesses? They should implement these tips:

  Offer seasonal specialty drinks. Consider offering specialty and seasonal offerings, like Starbucks does with their popular lavender drinks in the spring and beloved pumpkin spice lattes each autumn. Think of best-selling and highly anticipated seasonal brews, like Sam Adams Octoberfest, that customers look forward to all year – and purchase as soon as they’re available. Offer “limited time only” drinks to boost customer interest, engagement, and sales. Also, leverage hot trends, like distilling, to attract more customers and drive additional sales. Sell alcohol and coffee – and fun boozy coffee drinks – to attract a wider audience and increase sales.

  Give customers what they want. For instance, the online ordering market has grown exponentially since the COVID shutdowns, and is expected to grow to a whopping $505.5 billion by 2030. Additionally, food delivery services are on the rise. Food delivery is the most popular way for consumers to engage with restaurants, with more than three-quarters of customers (77%) regularly ordering delivery. If you aren’t already offering online ordering and delivery options, it’s time to start! Tap into trends like lagers and new hop products and techniques (including hop extracts and oils). It’s also smart to offer a wider selection of nonalcoholic options for a growing population of people who are not imbibing. Also, be mindful of consumers’ favorite foods to order when dining out – including French fries, hamburgers, mashed potatoes, and grilled cheese– and include these items on your menu. When you give people what they want, they’ll be more likely to visit (and return to) your establishment.

  Engage employees. As unhappy, disengaged employees cost U.S. businesses nearly $2 trillion in lost productivity last year, it’s clear that employers need to work proactively to keep staff satisfied, loyal, engaged, and motivated. To accomplish this, provide competitive salaries and attractive benefits packages. Invest in employee development, give tuition reimbursements, and promote from within. Create a healthy work environment and supportive culture, where employees feel valued and appreciated. Thank employees – sincerely – for their hard work. Recognize top performers at staff meetings, on your social media platforms and website, and via in-store signage. Give financial bonuses and other incentives – such as gift cards, extra days off, etc. – to employees who go above and beyond. Set sales goals and provide individual or team rewards when key metrics are met. Accommodate time off requests for personal commitments. These efforts will differentiate your brand from the competition, helping you attract, retain, and engage talented employees.

  Tap into the virtual market. Ghost kitchens and virtual restaurants are the fastest-growing segments in the restaurant category, with a staggering 85% growth rate in the past year. They’re expected to become a $71.4 billion industry by 2027. Ghost kitchens share physical space, focus on delivery, and offer an opportunity to run a profitable business with limited operating expenses. These virtual businesses allow brands to run their operations in a more cost-effective, risk-adverse way. Some brands are diversifying the ghost kitchen model, providing food and drinks for catered events instead of solely meal deliveries. Consider this trend – and get creative with it!

  Embrace automation. Automation offers restaurants and bars the opportunity to supplement their existing teams and do more – even if they are short-staffed. By automating time-consuming and tedious tasks – such as inventory management – your employees can focus more time, energy, and attention on customer-facing, value-add activities. Tech solutions, like automation, can help boost your organization’s efficiency and productivity, reduce errors, improve accuracy, decrease waste and associated spending, leverage data for more informed decision-making, and improve the customer experience. Fortunately, tech tools have become more affordable, accessible, and intuitive, making them realistic for beverage companies of all sizes and budgets.

  Reduce food waste. Food waste costs the industry a tremendous $162 million in America alone. With the cost of groceries still astronomical, taking proactive steps to cut food waste can have a huge impact on your bottom line. Some ways to successfully reduce food waste include getting creative with leftovers, training staff on portion control, avoiding over prepping foods, storing foods at proper temperatures, improving inventory management, and using the FIFO (first in, first out) system to cut down on spoilage. Repurpose ingredients, like using the bones from your roast chicken dinner special to make broth for the next day’s soup or risotto. Use lower-performing beers to make beer cheese dip or beer-battered fish. Additionally, rely on historical data to drive smarter purchasing decisions.

  Be financially prepared. While no one could have predicted the black swan of COVID, it’s essential to be financially prepared for business curveballs. Perhaps your bar’s oven breaks or your basement floods. Maybe sales are down for a few months, or a supply chain disruption interrupts a key liquor delivery. Or maybe the increased costs of running your business are cutting into your profitability and money has become tight. Prepare for any eventuality by getting your financial ducks in a row before a monetary crisis hits. Watch your credit report and creditworthiness. Organize your paperwork and financial documents in case you need to apply for a loan. Businesses can set up a free account online at loanmantra.com to keep records ready and secure. Get prequalified with multiple lenders, even if you’re tempted to just apply to your existing bank or credit union. While you may think it’s easier to have all your banking centralized in one place, you may save significant money with a different lender, so it’s worth doing some research. It’s also wise to meet with a financial advisor to get an objective opinion on your financial situation. A trusted professional can help you identify (and mitigate) risks, determine how to become more profitable, and provide valuable advice when (and if) you ever need a loan.

  After four tumultuous years of nonstop challenges, hopefully many beverage businesses will “make it” in 2024, enjoying increased sales, higher profits, more engaged employees, and happier customers. Give customers what they want, leverage trends, experiment with seasonal offerings, reduce waste, be financially prepared, and enjoy a better, more profitable, highly productive year.

About the Author

  Neeraj (Raj) Tulshan is the Founder and Managing Member of Loan Mantra. For more information visit our website or give us a call! www.loanmantra.com 1.855.700.BLUE (2583)

Keg Washing: Working Smarter to Conquer an Essential Brewery Task

Cyndi
kegs on conveyor belt going through wash machine

By: Cheryl Gray

Imagine a dried egg inside a frying pan. Then, imagine the bacteria that immediately begins to grow because you’ve left the problem to fester, and, well, you know the rest.

  The same premise holds true when cleaning the kegs for your brewery. If the job is not done properly, breweries are setting themselves up for all kinds of safety and hygiene problems, both inside and outside the keg. Ensuring that beer is safe to consume is not an option. It is a must.

  Beer products are very sensitive to any outside contamination. Even tiny traces of bacteria or other contaminants can ruin an entire batch of beer, costing breweries money in lost time, resources and, of course, product. 

  There are some key differences in cleaning the outside of a keg versus the inside. Cleaning the inside of a keg involves focusing on removing any beer residue, bacteria or contaminants. Success in this area can ensure that the beer dispensed maintains the quality its brewer intended and is safe to drink. A proper external cleaning, of course, guarantees the removal of any contamination or dirt that may be present on the outside surface of the keg.

  While properly cleaning beer kegs is not an impossible task, choosing the wrong cleaning apparatus can be costly on all fronts. If you choose kegs for your beer products, knowing how to protect your customers from contamination is the job of expert companies with solutions that can help. Many breweries are opting for automatic solutions to clean and sanitize their kegs.

  Fillmore Packaging Solutions, headquartered in St. Louis, Missouri, promises affordable solutions for keg washing designed for craft breweries of all sizes. Since owner Tony Saballa founded the company more than twenty years ago, it has focused on perfecting the mechanical side of production. Saballa says his company is all in when it comes to automatic keg washers.

  “We don’t offer manual keg washers since they typically require the same amount of labor and cost to construct as fully automated washers. We also have found that manual washers often have variable outputs with wash quality issues due to operator missteps and errors.

  Our keg washers are built to completely automate the washing process utilizing state-of-the-art UL certified electronics. Automation simplifies the washing process so brewers can apply their attention to other tasks.”

  Saballa adds that Fillmore’s keg washers are UL Certified and constructed to meet the UL508a safety code standards for the United States and Canada. The washers are constructed at the company’s St. Louis manufacturing facility.

  “We aim to deliver American-made automation that functions to the highest standards at a cost that is affordable for both startups and expanding breweries.”

  Saballa points out some major mistakes that brewers make when it comes to keg washing and how Fillmore can steer them in the right direction. One major error, Saballa says, is overdoing the cleaning process. He says that more is not better in the case of keg washing.

  “Here at Fillmore, we often find that brewers tend to over-concentrate their cleaning and sanitizing solutions, sometimes using double and triple the manufacturer recommended usage rates. More is not better. This increases the operational cost, and safety for the operator must also be taken into consideration. Other factors that exist are the accelerated wear on pumps, valves, seals and gaskets, which can lead to down time and costly repairs.”

  Saballa explains how Fillmore’s keg washers are built to operate on a special voltage and designed for different breweries of different sizes. 

  “This is important since most new breweries are not located in industrial zones. Single-phase machinery offers a solution for brewers operating in areas where three-phase power is inaccessible or installation would be cost-prohibitive.”

  Each Fillmore keg washer operates on either 120v or 220v AC and compressed air and is capable of handling advanced pressurized CO2. Equipped with an enhanced design and technologically advanced features, the semi-auto keg washers include a fully programmable interface designed for customized operation, high-capacity cleaning and advanced sanitizing for brewery kegs.

  Another company specializing in keg washers is Craftmaster Stainless, headquartered in Rancho Cordova, California. The company manufactures production equipment for multiple beverage industries, including beer, cider, wine, spirits and coffee. Its clients range from small craft brewers to large global producers. With more than two decades of experience in stainless steel fabrication, the company’s team has the capability to custom-design and build commercial beer brewing equipment.

  When it comes to cleaning kegs, Craftmaster Stainless offers the Keggernaut Semi-Automatic Keg Washer. The product features a Siemens interface that gives breweries full state-of-the-art touch control over temperature settings and wash cycle timing. 

  The Kerrernaut is equipped with dual cleaning stations designed to wash two kegs of any size.    It can clean up to 40 kegs an hour, contingent upon the length of the wash cycle. The user-friendly features allow the kegs to simply be inverted, automatically washed, sanitized and pressurized in minutes. This semi-auto beer keg cleaning equipment allows for a quick and easy option to increase productivity. 

  Craftmaster Stainless offers its customers lifetime support on all commercial brewing equipment. It also provides custom designs for its microbrewery clients. 

  Keg washers are also available from Alpha Brewing Operations. The company, headquartered in Lincoln, Nebraska, provides fully automated options for an entire brewery. Its automation options from breweries range from semi-auto to what the company calls its fully automated package. The works include features such as a large touchscreen interface and connectivity options with mobile devices.

  For keg washing, Alpha Brewing Operations offers a product called the Alpha “Wash Dog Junior.”  It is an affordable, compact, automatic version of the company’s larger and fully automatic counterpart. The “Junior” is still highly automated but requires manual coupling to kegs and comes in a smaller package. This smaller keg washer is designed to fit into the tight budgets and tight spaces of startups and small breweries.

  Keg washers are also available from international manufacturers, such as Comac, which has its headquarters in Italy. Comac has several varieties of external keg washers, capable of washing anywhere from 30 to more than 1,000 kegs per hour. Comac offers customized keg-washing solutions for breweries of all sizes.

  Comac’s most compact keg washer is only about six and a half feet long, including a single section and one track. The company touts it as an ideal option for hot or recycled water washing. There is a larger option that performs multiple tasks for keg washing, such as pre-washing with recycled water, washing with a caustic solution to remove hard-to-clean dirt and a final rinse with clean water.

  For larger production facilities, Comac offers a dual-track keg washer to boost cleaning capacity. Other features include easy and cost-effective maintenance, quick changeover ability and savings in water consumption. Other options available for large production lines include a separate skid for components, such as pumps, valves and heat exchangers to simplify cleaning and maintenance.

  Experts agree that keg washing, inside and out, protects the beer and the consumers who buy it. For breweries large and small, the task is an inevitable necessity made easier by automated machinery designed to make a mundane task easier to manage while increasing safeguards against cross-contamination.

Testing the (Still) Waters

Cyndi

By: Tod Stewart

A 30-year friendship solidified by a passion for whisky, a desire to put this passion into practise, and a determination to break new distilling ground in an environment where practically everything was against them – welcome to the story of Barry Bernstein and Barry Stein (affectionally known a “the two Barrys”) and the evolution of Ontario’s Still Waters Distillery. It’s a story that should inspire craft distillers around the world – and entrepreneurial types thinking about joining the ranks.

  Today, Still Waters Distillery continues to grow and its flagship – STALK&BARREL Canadian Whisky – should soon be available nationally across Canada, and plans are in the works to expand distribution into the US market. Beverage Master Magazine caught up with the Barrys to talk about past challenges, current successes, and future plans.

* BM – Beverage Master Magazine

BM:  Initially, your venture involved importing whisky in bulk for blending. And, again, if my recollection is correct, you ran into some regulatory hurdles. Assuming I’m correct on both counts, can you elaborate a bit on this part of your past?

Barry Stein: Our initial venture, in 2005, was as an independent bottler of scotch for the Canadian market. We were importing single casks of scotch and bottling here in Canada. We were, at first, restricted to selling scotch in an “adulterated” fashion – by adding one per cent domestic whisky to comply with an obscure Canadian law. This meant we couldn’t call it scotch, which presented some marketing challenges. After much negotiation, we were able to finally get permission to bottle without blending, but that was short lived as the Scotch Whisky Association brought in rules that prohibited the bulk export of scotch for bottling purposes outside of Scotland.

BM: When did you decide to actually create a distillery? Though the regulatory landscape for small distillers has changed a bit over the years, what challenges did you face – both physically and regulatory – in setting up your operation?

Barry Bernstein: While struggling with our importing business, we were also seeing the growing small distillery industry in the US. It was clear that our importing business was not sustainable, with the regulatory restrictions, and we thought there was an opportunity to be the first craft distillery in Ontario and one of the first in Canada. We opened the doors to our distillery in 2009 after a great deal of work with the Canada Revenue Agency – CRA – on federal licensing.

BM: Where there issues with the CRA?

Barry Bernstein: The local CRA office had never seen a small scale distillery, and it required extensive documentation and due diligence. The Alcohol and Gaming Commission of Ontario – AGCO – had rules that only allowed large distilleries to sell direct to the public, and the only sales channel available to us, The Liquor Control Board of Ontario – LCBO – hadn’t dealt with a small local spirits producer, and it gave us no preferential treatment, expecting the same from us as it would a large multinational brand. Our local municipality relied on building code regulations that only described large scale distilleries, which forced us to invest heavily in facility upgrades. At every level of government there were significant challenges, but the constant “you cannot do that” only strengthened our resolve. We were determined to prove everyone wrong.

BM: Was your aim always to make whisky, or were you interested in a broader range of spirits – or was it the case that you were more or less forced to produce other spirits until your whisky was legally old enough to be called whisky?

Barry Stein: When we started, our focus was on whisky. But, by Canadian law, that requires a minimum of three years maturation, so we made vodka as well. By virtue of being the first in Ontario, we also attracted attention from others looking to get into the business, and we did both contract distilling and bottling. This gave us an opportunity to make different vodkas, gins, whiskies, liqueurs, and so forth.

BM: Sounds like you certainly gave the various authorities pause to reconsider what could and couldn’t be done. Have things got any easier for craft distillers from a regulatory standpoint?

Barry Stein: The ability to sell direct, which didn’t exist when we started, was significant. There has been some small wins on the taxation front, but it is still very difficult to be profitable. For us, the most significant changes have been the growth of the industry. Everyone now understands what a craft distiller is, and it is a lot easier to make noise as a group than as an individual.

Barry Bernstein: Our biggest challenge is taxation, federally and provincially, that take the vast majority of the sale proceeds. Canadian excise rates for spirits are ridiculously high. We’d like to see reduced rates across the board, and special rates or graduated rates for small producers, similar to what is in the US – or even in Canada for wine and beer producers. Though small producers can now sell direct to the public – which took years of work to make happen – significant distribution can only occur through the government run liquor stores, and it remains a difficult sales channel for a small player.

BM: Would tapping into the export market help you bypass the stranglehold of Canadian liquor boards?

Barry Bernstein: My role at Still Waters Distillery is primarily new business development, and I can say there are plans being made as we speak to be launched in the USA, which we are very excited about. We should have more details on this later on this year. In the meantime, I think it’s important that we focus on core competencies, and that is making truly great tasting Canadian whisky. We have perfected the STALK&BARREL Canadian Whisky blend and this brand is gaining significant distribution, which includes Ontario, Newfoundland, New Brunswick, and Alberta. Hopefully STALK&BARREL will be nationally distributed across Canada the near future.

BM: It’s said there’s strength in numbers. Have you collaborated with other distilleries or joined any trade organizations that are pushing for things like excise parity?

Barry Stein: We founded the Ontario Craft Distillers Association and are a member of national organizations. These organizations are more directly helpful to our clients, the brand owners, but that indirectly helps us. The more our clients prosper, the better we do.

BM: Are there any plans to expand production facilities in the future, or perhaps change locations?

Barry Stein: Yes, although we are still working on a plan. We have been increasing our production capacity incrementally. Our space is very tight and is an ongoing challenge. We actually have three facilities (production, bonded storage and non-bonded storage) and are looking at consolidating in a single location. We expect to have some definite plans by the end of year.

BM: Can you give us a sneak peek as to what new SWD spirits may be in the works?

Barry Bernstein: I think right now we are focusing on the rebrand of STALK&BARREL Canadian Whisky. This brand is definitely getting noticed by whisky lovers and cocktail enthusiasts. STALK&BARREL Canadian Whisky is now the Official Canadian whisky of Golf Canada, so with the RBC Canadian Open in June, and CP Women’s Open in August, we are ramping up production to meet the anticipated demand.

  With the ongoing expansion of the Still Waters Distillery – and growing market for its balanced, warm, vanilla and butterscotch-tinged flagship STALK&BARREL Canadian Whisky, not to mention the Golf Canada partnership – the “two Barrys” appear to have hit a Canadian distilling hole-in-one.

Uncorking Accessibility:  Ensuring Your Website Complies with the ADA

Cyndi

By: Vanessa Ing, Farella Braun + Martel

In today’s digital age, having an online presence is crucial for businesses, including wineries, breweries, and other beverage companies. Accordingly, it’s essential to ensure that your beverage website meets federal standards for accessibility to avoid lawsuits and fines. In this article, we will help beverage companies understand how to comply with federal law and implement accessible features on their websites.

Why is web accessibility important?

In 1990, Congress enacted the Americans with Disabilities Act (ADA). It prohibits businesses open to the public (otherwise known as “public accommodations”) from discriminating against people with disabilities in everyday activities. These everyday activities can include purchasing goods and services, or offering employment opportunities. 

In March 2022, the U.S. Department of Justice issued web accessibility guidance, reiterating that ensuring web accessibility for people with disabilities is a priority for the Department. Relying on the ADA’s prohibition against discrimination and its mandate to provide equal access, Department of Justice emphasized that the ADA’s requirements apply to all the goods, services, privileges, or activities offered by public accommodations, including those offered on the web. The Department of Justice’s guidance was particularly timely given that many services moved online during the pandemic. 

In its guidance, the Department of Justice explained that people with disabilities navigate the web in different ways: for example, those with visual impairments might require a screen reader that reads aloud text to the audience.  Those with auditory impairments might require closed-captioning software, while those with impaired motor skills might require voice recognition software.  A website, therefore, should be compatible with the full range of such software. 

Is your beverage company a “public accommodation” business?

Public accommodations include businesses that sell goods and services, establishments serving food and drink, and places of recreation or public gathering.  Companies that sell drinks, wineries that offer a tasting room, or breweries that host events are all considered public accommodations.  Thus, those businesses’ websites must comply with the ADA by being accessible to people with disabilities.  

It is an open question whether beverage companies without a physical location open to the public must still have ADA-compliant websites. Some jurisdictions, like the Ninth Circuit (which has jurisdiction over Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon, and Washington), have tied the necessity of ADA-compliant websites to the existence of a brick-and-mortar location (Robles v. Domino’s Pizza, LLC). However, the Department of Justice, along with several federal circuit courts of appeals, has taken the position that even a public accommodation business without a physical location must have an ADA-compliant website.  

Given the increased prevalence of online-only services open to the public, it is very likely that litigation over the next few years may resolve this open question.  In the meantime, it is wise for beverage companies to take preventative caution and ensure that their websites are accessible.  

What are some website accessibility barriers?

To ensure ADA compliance, beverage companies must be aware of common website accessibility barriers.  These include poor color contrast, lack of descriptive text on images and videos, mouse-only navigation, and more.  By addressing these barriers, beverage companies can enhance the user experience for people with disabilities.

Six examples of website accessibility barriers highlighted in the DOJ’s accessibility guidance include:

  • Poor Color Contrast: Ensure sufficient color contrast between text and background to aid individuals with visual impairments or color blindness. Use color combinations that are easy to distinguish.
Low/High Color Contrast
  • Use of Color Alone to Give Information:  Avoid using color alone to provide information.  Using color alone can be very disorienting for someone who is visually impaired or colorblind.  Someone who is colorblind might not be able to distinguish between shades of gray.  One solution might be to ensure that symbols conveying information are differently shaped.  
Graph showing the use of color alone
  • Lack of Descriptive Alternative Text for Images and Videos: Provide descriptive text (alt text) for images and videos, allowing screen readers to convey the information to visually impaired users. This makes your content more accessible and inclusive.
  • No Closed Captions on Videos: Include closed captions for videos to accommodate individuals with hearing impairments. Utilize manual or automatic captioning options and review the captions for accuracy.  Free options are available on the web.
  • Inaccessible Online Forms: Make online forms user-friendly for people with disabilities. Provide clear instructions before the form, ensure that a screen reader could recognize required fields and fields with special formatting, ensure keyboard-only navigation, use accessible labels for inputs, and display clear error messages.  Note that an image-based CAPTCHA is not a fully accessible way to secure your form; your CAPTCHA should offer users who are visually impaired an audio alternative.
  • Mouse-Only Navigation: Enable keyboard-only navigation on your website to assist individuals with motor skill impairments or those who cannot use a mouse or see a mouse pointer on the screen.  Make sure all interactive elements can be accessed using the tab, enter, spacebar, or arrow keys.  Use a “Skip to Main Content” link to ensure that users employing only a keyboard can easily navigate the website’s primary content. 

To implement these features, beverage companies should discuss accessibility concerns upfront with the web developer.  Beverage companies should keep in mind that posting a phone number on a website to call for assistance, as commonly utilized by businesses, does not sufficiently provide equal access to the website and the services or goods provided.

Who can sue beverage companies?

Non-compliance with ADA standards can lead to potential lawsuits.  Although some courts have held that a nexus must exist between a private plaintiff’s disability and the web accessibility barrier claimed, a private plaintiff may easily surf the web for websites that are inaccessible.  A private plaintiff may then file a lawsuit in federal court without first notifying the business.  Further, liability under the ADA is strict, which means that the intent of the business to comply is immaterial.  Thus, it is prudent for beverage companies to proactively address accessibility issues to avoid potential legal troubles.  

Private lawsuits under the ADA can result in injunctive relief (a court order to comply with the ADA) and attorney fees.  And in some states, like California, the state law version of the ADA may enable plaintiffs to demand monetary damages ($4,000 per violation of the ADA). 

Government involvement, while less frequent, is possible in cases involving national retailers.  If the Department of Justice observes a pattern or practice of discrimination, the Department will attempt to negotiate a settlement, and may bring suit on behalf of the United States. At stake are fines of up to $75,000 for the first ADA violation, and up to $150,000 for each subsequent violation.

What are the rules for website accessibility?

Although the ADA itself does not spell out the rules for website accessibility, several sources provide detailed rules that can aid beverage companies in building accessible websites. 

First, the ADA authorizes the Department of Justice to enforce the statute.  Accordingly, the Department develops and issues regulations explaining how businesses must comply.  Specifically, § 36.303 of the Electronic Code of Federal Regulations specifies that a public accommodation shall provide auxiliary aids and services when necessary to ensure effective communication with people with disabilities, and that a public accommodation should consult with people with disabilities whenever possible.  The Department also issues administrative guidance, such as its March 2022 guidance described above.  

Second, Section 508 of the Rehabilitation Act of 1973, which requires federal agencies to make their electronic and information technology accessible to people with disabilities, provides detailed guidance concerning the display screen ratios, status indicators, audio signals, and other accessibility features. 

Third, the Web Content Accessibility Guidelines 2.1 (WCAG 2.1), which were originally designed by a consortium of four universities, provide highly specific web accessibility guidelines grounded on the idea that information on the web must be perceivable, operable, understandable, and robust.  These guidelines are widely referenced in court cases and settlements with the Department of Justice, as the guidelines address numerous aspects of web accessibility and offer three different levels of conformance (A, AA, AAA). Beverage companies can consult the WCAG 2.1 guidelines (including a customizable quick reference guide, at https://www.w3.org/WAI/WCAG21/quickref/) to ensure their websites meet ADA compliance. 

Looking Ahead

Web accessibility standards evolve over time, with updates being released periodically. Beverage companies should stay informed about changes and updates to ADA compliance regulations. For example, the WCAG 3.0 is scheduled for release in the latter half of 2023, further refining accessibility guidelines.

In sum, by understanding and identifying web accessibility barriers, and implementing necessary accessibility features, beverage companies can enhance user experiences and minimize the risk of legal repercussions. Embracing web accessibility is not only legally required but economically prudent in the long run, as it enables beverage companies to cater to a broad and varied audience, and demonstrates a commitment to inclusivity in the digital realm.

Vannesa Ing headshot

Vanessa Ing is a litigation associate with Farella Braun + Martel and can be reached at ving@fbm.com. Farella is a Northern California law firm representing corporate and private clients in sophisticated business and real estate transactions and complex commercial, civil and criminal litigation. The firm is headquartered in San Francisco with an office in the Napa Valley that is focused on the wine industry.

Financial Literacy Training

Cyndi

By: Kary at Beerbusinessfinance.com

Financial literacy is the ability to read and understand the most important numbers in your beer business.

Financial literacy training starts with practical and actionable ideas that you can use right away to improve financial results.

All of our financial training is for non-financial owners and managers.

Here’s how our financial literacy training works:

Quarterly financial meetings

You’re invited to join our beer wholesaler financial round-table meetings.

Network with peers, share best practices, and learn specific ways to improve financial results. Right away.

Library of wholesaler financial training courses

Access over a dozen wholesaler financial training courses.

Learn how to build your budget, build your key metrics dashboard, create (or update) your wholesaler business plan, and more.

Weekly beer wholesaler financial newsletter

Each week you’ll receive financial tools and resources straight to your inbox.

Examples of topics covered: Key drivers of wholesaler cash flow, sales growth strategies, cost cutting processes that work, and much more.

Beer wholesaler webinars, workshops and podcasts

Join our webinars and workshops (or watch the replays). This is your opportunity to hear from the best of the best in the beer industry.

Past topics: How to improve gross profit, beer wholesaler budgeting workshop, the latest technology and software.

Planning templates, models, and spreadsheets

We’ve got models to help you create your sales forecast, analyze gross profit, track cash flow, and much more.

If you’re ready to learn more about beer wholesaler cash flow, net operating income, and (wait for it…) EBITDA, now is the time to invest in your financial literacy training. ​

Yours in financial literacy,

Kary

P.S. Interested in learning more about our beer business financial training programs? Book a time for a 15-minute talk. 

The Distillation, Maturation & Blending of Whiskey

Cyndi

Single Malt Whiskey Part 2

photo of whiskey glass half full on rock

By: Kris Bohm: Distillery Now Consulting, LLC  

Welcome to Part 2 of my article on the technical breakdown of the production of single malt whiskey. If you missed the first half of this article Technical Breakdown for Single Malt Whiskey Production, grab the last issue of Beverage Master Magazine, give it a read then come back right here to read the second half. Single Malt is an amazing, distilled spirit that is produced in countries all around the world and it can be made utilizing many different methods. This article will focus on a method of production employed throughout Scotland and also by some distilleries in the United States to produce single malt whiskey. We will discuss in depth one method on how this type of whiskey is distilled and matured. This half of the article focuses on the distillation, maturation and blending aspects of making malt whiskey and breaks down the steps of this classic method.

  Below we will breakdown the distillation method and expected production yields. With this data in hand we can explore barrels and barrel types, maturation times and expectations, then dive a bit into the process of blending barrels to reach a finished product of bottled whiskey. Let’s dive in and make some single malt!

  Single malt whiskey production from malted barley was first developed and refined in Scotland over several hundred years and the results of that production method produces some of the arguably finest malt whiskey in the world. For the purpose of this article we are breaking down step by step this classic method of whiskey making to better understand the processes that were developed by distillers who came before us. It is important to stress that malt whiskey flavor profiles can vary massively, when you taste a whiskey at one distillery versus another they rarely taste exactly the same. This is important to consider as there is no specific right or wrong flavor profile when it comes to single malt.

  In the first half of this article (In the December – January 2024 Beverage Master issue, page 42) we left off with a fermenter full of distillers beer made from malted barley, ready to be distilled into whiskey. In case you didn’t know, distillers beer is quite different from a beer made to be drunk as beer itself. Distillers beer does not have any hops added to it and is typically fermented rather fast. Distiller’s beer is usually only 3-7 days old when it is ready to be distilled. When a distiller’s beer has completed fermentation it is ready to be distilled immediately. At this time the beer is around 9% ABV. Some distillers have higher or lower ABV beer but 9% is a reasonable expectation. Now that our beer is done fermenting lets distill it.

  The beer is going to be pumped from the fermenter to a copper still where the beer will be heated up and the alcohol distilled out of it. The stills used for distilling single malt whiskey are batch stills that do not typically have any rectification plates or a dephlegmator. In the distilling process a distillery will employ multiple stills to complete the process of making whiskey. The still used for distilling the beer is referred to as a wash still. There is a second still used in a distillery for redistillation is called a spirit still . Both wash still and spirit still have a design that allows many flavors, oils congeners and character from the beer to carry over into the distillate. During the first distillation of the beer a rough unfinished product is produced called Low Wines Low Wines are the sum of all the alcohol distilled out of the beer along with some water, some oils and a ton of flavor. The distilled low wines are not a finished product as the concentration of alcohol is too low and the resulting distillate has too large of a concentration of water. To complete the distillation of the whiskey the low wines are put into the spirit still and redistilled. During this second distillation the heads and tails cuts are made which remove methanol and oils from the whiskey. The portion of the whiskey that is kept is often referred to as the hearts. This second distillation will yield a clear whiskey known as new make. New make will can be as strong as 75% ABV or as weak as 55% ABV. The new make is diluted with some water then put into barrels. Below is a chart that breaks down volume of distillation and expected yields from the distillation.

table showing distillation process

  The stills themselves employed in the process of distilling single malt whiskey plays a strong role in the influence of the flavor profile of the whiskey. In Scotland and in other whiskey producing countries, single malt whiskey is almost exclusively distilled in copper pot stills using the traditional batch distillation method. This method of distillation is intensive in both its use of energy and labor, but produces a flavor profile that is difficult to replicate using a more efficient  continuous column still for distillation. Because the flavor profile of malt whiskey produced through batch distillation is unique, distillers today still employ the traditional methods of batch distillation in making malt whiskey. Traditionally malt whiskey is twice distilled. One reason for this double distillation process is tied to flavor. There are many oils and congeners in distillers beer and in distilling whiskey more oils and congeners are carried over into the distilled whiskey when it is twice distilled in a pot. These oils and congeners play a large role of flavor in the finished mature spirit and are essential to create the complex flavor profile of single malt whiskey.

  Now that you have some freshly distilled new make whiskey it’s time to drink it! Just kidding, we have a few years to go before this whiskey is ready. It is time to put that whiskey in a barrel. One of the wonderful aspects of single malt production is the option to age the spirit in a multitude of different types of barrels. Unlike Bourbon and Rye Whiskey which can only be aged in charred new american oak, Single malt whiskey can be aged in new or used barrels from many places. Malt whiskey can be aged in sherry butts, wine casks, and used rum, tequila or bourbon barrels. The option to age whiskey in a variety of barrels and casks opens creative freedom for a distiller to add unique character to the distillate from the barrel. There are some distilleries that age their single malt in a variety of casks with some whiskey aging in new charred oak barrels and some aging in used barrels. Aging in a variety of barrels creates a diverse profile of whiskey in flavor and color which allows the folks blending the whiskey to have more flavor components to work with. The concentration of alcohol in a new make whiskey when it is put into the barrel is a bit stronger than the strength at which it is bottled. Entry proof is a big factor in maturation. Some folks will fill barrels with whiskey as strong as 62.5% alcohol by volume others will barrel at a much lower 50%. This difference of entry proof plays a strong role in the flavor components extracted from the barrel.

  The whiskey is now in your barrel so let’s hurry up and wait. The amount of time that a whiskey needs to spend in the barrel to fully mature can vary immensely depending on many factors. The biggest factor that determines the required amount of time a whiskey needs to spend in a barrel is the environment in which the barrel rests. In colder climates such as those found in the northern United States and in Scotland the maturation period is rather long for a whiskey to reach its fullest potential. This time period to reach maturation can exceed 10 years. When a barrel is stored in a warmer climate the required amount of time for full maturation of the spirit it’s quite a bit shorter. In places like Texas some distillers have found that single malt whiskey will fully mature in as little as 3 years. Determination as to whether or not a whiskey is fully matured is a hotly debated topic and is best left up to those who need to make the choice as to whether or not their whiskey is ready to be bottled. What flavors make a whiskey taste fully mature is tricky and it is important to point out that a 10 year whiskey aged in Minnesota will not taste the same as a 3 year whiskey from Texas.

  So now that you have tasted some of your aged whiskey from the barrels and the whiskey is tasting mature it is time to blend some barrels together to create a finished product. The process of tasting and selecting the barrels that will be blended together to make a finished product is just as important as the distillation process itself. No two barrels of whiskey will mature and taste exactly the same. Some barrels need more or less time and some whiskey within the barrels will develop different flavor profiles from its neighboring barrels even when those are often made from the exact same whiskey. It is critical to take the time to taste barrels and test out blending of different barrels. The purpose of this blending work is to create a blend that builds the best whiskey possible. This should be done before you start dumping barrels into a tank to bottle the whiskey. When two different barrels are blended together in a tank the resulting flavor profile can be different than the sum of the parts. Because blending will impact finished taste and aroma of  whiskey is of the utmost importance to test out blends before the barrels are actually married together. It is paramount to give time tasting and careful consideration to blending barrels to ensure the highest quality of a finished whiskey.

  There are so many steps and factors that culminate to produce the beautiful and complex spirit known as Single Malt Whiskey. I hope these two articles have helped to fill in some knowledge for those looking to leap into the endeavor of making Single Malt Whiskey. Single Malt Whiskey is one of the fastest growing whiskey categories in America and there is ample room in the market for new brands. If you are wanting to make Single Malt and not sure where to start shoot me an email and let’s connect.

  Author Kris Bohm is the Owner of Distillery Now Consulting. When Kris is not making whiskey you can find him riding his bicycle all around the world.

Women Preserve History While Creating Their Own   

Cyndi
photo of two women pouring whiskey into glasses

By: Cheryl Gray

They own distilleries, take charge of day-to-day operations and hold court as master distillers around the globe. We’re talking about women in the spirits industry, breaking barriers and making it possible for other women to do the same.

  In this largely male-dominated industry, there is an increasing number of women who have earned major roles, from building distilleries to creating the blends that put those distilleries on the map. Those blends are either passed on from generation to generation or come in the form of new taste sensations. All are designed to appeal to an unquenchable consumer demand for innovation and tradition.

woman in front of a beer bar

Victoria Eady Butler can speak with authority on both subjects. She is the great-great-granddaughter of Nathan “Nearest” Green, a former slave and the first-known African American master distiller who taught Jack Daniel – yes, that Jack Daniel—how to make the legendary Tennessee whiskey that bears the Jack Daniel’s brand name. Daniel would later hire Green to be his master distiller, a historical link between the two men widely acknowledged by Jack Daniel’s parent company, Brown-Forman.

  Five generations later, it is Eady Butler’s turn at making history. She is the first African American master blender for a major spirits brand, Uncle Nearest Premium Whiskey, named after her great-great-grandfather. Eady Butler’s legacy is the foundation for award-winning bourbons and whiskeys branded by Nearest Green Distillery in Shelbyville, Tennessee. Since its brand launch in 2017 by founder and CEO Fawn Weaver, the company reports it has generated more than $100 million in sales, with products sold in all 50 states and 12 countries around the world.

  Eady Butler explains how Weaver brought her on as part of the company’s leadership team, first as the vice president of administration but soon thereafter, as its master blender.

  “I had no idea that this was down the road for me. Fawn Weaver, our CEO and founder, and I talked and she knew that I was considering retirement. Everything unfolded from that conversation. I retired from my previous career and started with Uncle Nearest within a few days. Now that I’m here, I fully get it. Whiskey truly is in my blood. To carry on a legacy that lay dormant for more than 160 years, it’s just unbelievable.” 

  Under the discerning palate of Eady Butler, the Uncle Nearest brand has won multiple industry awards while she has won consecutive top honors bestowed upon her by industry peers.

  “When our 1884 Small Batch launched in July 2019, the whiskey family took to it immediately and we started winning awards right out of the gate. So, I blended the second batch. The awards and accolades kept coming. Soon thereafter, I was elevated to master blender and have blended every batch since. Also, when I was named ‘Master Blender of the Year’ by the American Icons of Whisky Awards, I was the first female to ever earn the title.”

  Preserving the heritage surrounding one of Puerto Rico’s most famous exports, rum, is partly what drew Liza Cordero to the spirits industry. Cordero used her background as a chemical engineer to become master blender of the world-renowned Destilería Serrallés and oversee the distillation process of its Don Q rum, made in Puerto Rico for more than 150 years.

  Born in San Juan, Cordero knew early on that she wanted to be engaged in chemical engineering and was involved in both the petrochemical and biotechnology industries. She says that she found her true passion, though, in working with rums. For more than two decades, Cordera has been directly involved in the fermentation and distillation processes and is responsible for quality control at the landmark distillery. She describes how taking a chance turned into a rewarding new career.

  “The company was recruiting an assistant manager for the distillation and fermentation process area. As soon as I saw this, I did not hesitate to accept the challenge to work for the best distillery in Puerto Rico, which produces the best and most authentic Puerto Rican rum. In the 21 years that I have been working here, I can truly say that my decision was the right one!”

  Cordero describes her role at the distillery.

“I am the rum distillery master blender and work hand-in-hand with the First Maestra Ronera (Master Teacher), Silvia Santiago, who has been with the company for 50 years. I am responsible for developing Don Q products that follow today’s market trends, which can be enjoyed in cocktails and sipping rums, all while honoring Don Q’s origins. These products need to be different from others in the market, which we achieve by carefully selecting blends that will be part of our premium and flavored rums and choosing natural ingredients that will guarantee an outstanding tasting experience. In order for me to achieve what we want for rum aficionados, it is important to understand the differences among the aged rums that we have available. Each one has its own characteristic taste and aroma.”

  Cordero says her mentors include other women like Santiago, who have helped to guide her through the industry. The advice she gives to other women who want to enter the business is to the point.

  “Throughout my career, I have learned that in order to prove that women can equally execute and be involved in the same tasks and assignments that are performed by men, it’s important to employ your knowledge and experience, to prove your point and to take a position on matters. It is crucial that decisions are made based on something solid that can withstand any questions or critical analysis. They cannot be made based on opinions or personal points of views. It is in this way that women can earn respect, and that we get assigned to key decision teams and positions in organizations.”

  Valerie Colella is an award-winning single barrel specialist and national ambassador for Castle & Key Distillery. Most recently, Colella was recognized by the Bourbon Women Association as a finalist for the “2023 Brand Ambassador of The Year.”

  “As single barrel specialist, I help execute our single barrel program along with our very talented team in Frankfort, Kentucky, and I also have the pleasure of hosting our VIP industry and trade groups. As national brand ambassador, I help support our sales team across 24 markets by creating fun educational and pairing experiences for our partners and consumers.”

  Colella relocated to Kentucky after working in West Virginia at Smooth Ambler Distillery. Collela cites a key mentor who helped her to get her footing in the industry.

  “Most of my foundational understanding about what makes a craft distillery tick, I learned in my eight years from Smooth Ambler under head distiller John Little. He demanded a very high level of dedication and execution from all of us. He took great pride in the spirits we were producing in West Virginia, and so did we. Whether it was the retail or consumer-facing side of the business, distribution, sensory, analysis or branding strategy, he gave me so many opportunities to work really hard, learn and grow personally and professionally.”

  Collela points to women mentors that include Lisa Wicker, president and head distiller for Widow Jane of Brooklyn, New York, Sherri Carter, master blender and co-founder of Old Carter Whiskey Company based in Louisville, Kentucky and Jackie Zykan, former master taster for Brown Forman’s Old Forester and creator of the newly launched whiskey, Hidden Barn. Collela says the work these women have accomplished in blending and maturation inspires her.

  “When you’re navigating your own professional growth and you’re trying to find your footing or voice in a male-dominated industry, no one understands the challenges that come with being a woman in spirits except the ones who walked through the fire and helped pave that path. From Iron Root Republic to Milam & Greene and Uncle Nearest, so many ridiculously talented female master distillers, blenders and owner-operators are absolutely blazing all kinds of trails. It’s such an exciting time to draw inspiration from.”

  The number of women in the spirits industry keeps growing, Collela says, and the industry’s expansion requires new talent.

  “That being said, I think we’re going to see a diverse new generation of whiskey-makers, and spirit-blenders into the next decade. What we see across all aspects of the aged spirits industry is that there still continues to be an incredible demand for whiskey. There doesn’t seem to be a saturation point. NDP’s and distilleries keep on expanding, and there’s a whiskey for every palate. There’s not just the collector and the enthusiast anymore. Whiskey is becoming a multi- dimensional demographic.”

  Eady Butler of Nearest Green says that for women entering the business, tenacity is particularly important.

  “The key is to be committed, dedicated, eager to learn and put everything you hold dear into it. In addition, it’s imperative that you surround yourself with people who are knowledgeable, patient and in my case, willing to share their experiences and wisdom. The biggest thing is setting aside your fear of failure and just go for it.”   

Being Influential in the Beverage Industry

Cyndi
people around a table talking

By: Hanifa Sekandi

It’s no secret that influencer marketing is pivotal to your marketing strategy. Of course, brands can opt out and avoid it altogether. Many brands do not use influencer marketing to grow their business or notoriety.

  Understandably, there is pressure to conform to this new modern marketing norm. Initially, influencers were frowned upon. The idea of allocating thousands of dollars of your marketing budget to a niche food blog was unthinkable. It is still a marketing strategy that many struggle to wrap their minds around. Also, there is no guarantee that you will see an instant return on your investment. On the other side of the coin, there are benefits to influencer marketing. The proof is in the pudding when you look at brands that have found great success with influencer marketing. Overnight, these brands have become household names, expanding their reach to an untapped market.

  The popularity of the Stanley Cup is an example of an influencer’s ability to influence buying decisions. Not all influencer marketing successes are purposeful. Your brand may experience unexpected success from an unsolicited review from Bethenny Frankel! Your consumers’ buying power is more than just an increase in revenue. An honest review on social media or a write-up on a blog can be impactful.

  Hopefully, you have taken the time to build and create a noteworthy beverage. Aside from great packaging, is it a high-quality beverage? Does it measure up? Simply, does it taste good? Have you perfected the product? If you walk the aisles of a beer or liquor store, you will likely meet a fellow whiskey enthusiast or ale expert. The in-store influencer with first-hand experience trying your product is who you should appeal to first. Before social media, people were influenced by a friend of a friend. Word-of-mouth sold your product.

Building an Influencer Marketing Strategy

  Your why – why your brand is notable will be at the forefront of this strategy. It might be a good idea to have this visible at all times when devising any marketing strategy. It is easy to veer off your path if this is unclear. Why your beverage? Why are you so passionate about your product? Your why is your company’s mission statement. It will look different from your competitors, as it should. From here, brainstorm what kind of social media in the beverage sector is compelling. What draws you in? Depending on the size of your marketing team, write a list of marketing campaigns you have liked online that made you go out and buy the product. It does not have to be in the beverage industry. The main objective is to discern why this marketing campaign inspired you to purchase that item or beverage.

   People connect to things or products that draw meaning in their lives. A popular alcoholic beverage is more than just a good time for many people. It is also an imprint of a memory – a moment in time that reminds them of their wedding or a first date, a trip to Ireland or a celebration with friends and family. There is a reason why people fight over the best tequila and why just any tequila will never do. The same is true for those who enjoy a cold beer. Your influencer marketing strategy is not about numbers. It is about being impactful. The influencers you select to showcase your brand must align with your brand’s mission. It does not matter if they have one million followers if the stories they tell do not support your long-term goals.

Effective influencer marketing strategies require research. Once you have zeroed in on influencer campaigns that inspire your team, it is time to curate a list of influencers who create content that supports your vision. Influencers are storytellers. The storyteller for your beverage must get the story right. What does an effective influencer marketing strategy have?

●   Clear direction: Do you know who you are? Are you a botanical gin? If so, you should lean towards influencers who create content that supports a healthy lifestyle. Who thrive on creating content that is about finding alternatives for mainstream gins. An influencer who drinks organic alcohol will most likely create content that supports their lifestyle choice to consume clean beverages. Avoid the temptation to solicit a well-known influencer who does not create content that supports who you purport your brand to be. At the onset, this is a good idea. But remember, influencer marketing is not a one-and-done game.

●   What is your message? Influencers need to know every detail about your brand. Do not send your beverage to them and hope for the best. A marketing manager should spend time with them going over product education. A media deck should be available for reference during the campaign. Once you have provided the information, they should use their unique storytelling ability to convey the message to their audience. Generally, for experienced influencers, you will not need to approve their content before sharing. But when working with micro-influencers, review all content before it is shared. An influencer with experience will know that they should not deviate from brand messaging. A newer influencer may not be aware of industry protocols. You should not have any issues if you did your due diligence during strategic planning. Pre-approved content prevents brand inconsistencies.

Understanding Your Audience

  Now that you have selected your list of influencers to collaborate with, do not be afraid to audit your list. Do a deep dive into their storytelling style first. As tempting as it may be, ignore the numbers initially. Study all their content, from blogs to social media. If you spot more than five things that do not align with your brand, remove them from your influencer outreach plans. This does not mean that they are not great at what they do. It just means that they might not connect with your audience. Or, they may create content that does not support your brand mission statement.

  A thin line exists between having a successful influencer marketing campaign with the right influencer and tarnishing your brand with the wrong influencer. Celebrity chefs or food bloggers are often popular choices for beverage brands looking to dip their toes into this unpredictable marketing terrain. It is low risk and generally a good return on investment. The food and beverage sectors pair well together.

  Focusing your influencer marketing strategy on your targeted audience will help you express your desires if you work with a PR agency. Most influencers work through an agency, which can complicate the relationship since a third party is involved. Be clear. Do not get easily swayed. Some agencies represent other beverage brands and have strong influencer relationships. Some agencies are influencer-focused and manage a roster of talent. Your budget needs to account for the types of agencies you choose to work with if you do not contact the influencer directly.

  Agency fees should be included in your budget and separate from what an influencer would charge you. Ask your agency to illustrate influencer rates and agency fees clearly. Some agencies focus exclusively on food and beverage marketing. You are more likely to find an influencer with an audience you would like to reach if you work with a team that understands the importance of targeted marketing. They will ensure that you get the results you desire since they have an in-depth understanding of the beverage industry.

Hire In-House

  No one will know your product better than someone who works for your company. Hiring an in-house brand ambassador might be the right direction for your brewery. Did you know many influencers start blogging or social media channels to build an online portfolio? They do this to get recognition or a position at a reputable beverage or food company. Since experience matters, and there are few opportunities to build your resume, they create a portfolio of expertly curated marketing content. Hire an in-house content creator who understands your audience and has experience creating marketing content that appeals to them.

  Since they work exclusively for your brand, an   in-house content creator can develop a consistent online presence. Consider this to be a winning long-term marketing strategy. Another benefit is that food and beverage industry influencers have a big network of connections. As your in-house content development strategist, they can create content and work with other influencers on cross-promotion collaborations. In addition, it gives you free range to build multiple marketing campaigns without delays. Since your marketing team will work directly with them, there is no need to pre-approve content, thus giving you more control over how your brand is portrayed. While curating your influencer list, a quick LinkedIn or Muck Rack search will show you which influencers or bloggers are looking for work or offer freelance content development services.

Should You Opt Out of Influencer Marketing?

  If you are lucky, word of mouth and excellent product placement in-store is all you will need. If you are okay with slow growth and use other means to promote your beverage, then opt out. Influencer marketing is not for everyone and will not necessarily make your brand influential. It is a quick marketing tool. But it cannot be your only one.

  Before you delve into the world of influencer marketing to become the next influential beverage, make sure you are running a strategic marketing plan that will perform well on its own. Invest in in-house talent. A good marketing team may be all you need. When you decide to solicit the help of these industry gurus, you should feel confident in your beverage and the marketing materials you have implemented. Remember, influencer marketing is the bonus addition that can take you to new and unimaginable heights.