Category: Brewery

What to Do if EIDL Payments Become Due

Cyndi
SBA logo

By: Raj Tulshan, Founder of Loan Mantra

Restaurants, bars and other businesses within the hospitality industry were hit hard by the COVID-19 pandemic. For instance, restaurant industry sales in 2021 were down a staggering $65 billion from 2019’s pre-pandemic levels. During shut-downs, quarantines, social distancing and other pandemic-related disruptions, many hospitality businesses struggled or shut down, including 90,000 restaurant locations that temporarily or permanently closed because of COVID.

  During the pandemic, bars were forced to reduce capacity limits, negatively impacting their profitability. Reopening after quarantine was expensive, requiring costly adaptations, including air filtration systems, plexiglass dividers, equipment for touchless transactions, cleaning and sanitation supplies and personal protective equipment for staff.

  Hospitality businesses – like companies across many industries – also struggled with employee shortages, supply chain issues and soaring inflation.

  This “perfect storm” of unprecedented challenges led four million small businesses to take out $390 billion in loans through the Economic Injury Disaster Loan (EIDL) program. The EIDL was part of the U.S. Small Business Administration (SBA) and US Treasury as an expanded part of The Coronavirus Aid, Relief and Economic Security or CARES Act.

  Although the loan payments were deferred for two years, they’ve still been accruing interest until the first EIDL payment was due.

  Many small business owners have questions and concerns about the repayment process. The timing is not ideal, as many businesses – including restaurants, bars, hotels, and other hospitality venues – need funds to prepare for holiday sales and events.

If you took out an EIDL loan, here are some valuable tips to act:

      Contact:  Business owners can contact their local district legislators by calling, e-mailing, or writing letters to express concern. Loanmantra.com has put together a tool kit with:

        A sample form letter, an e-mail draft, a phone script and phone numbers to save time. Unsure of who a district representative may be? Find them here.

      Share:  There’s strength in numbers, so share this message with other businesses, business networks, chambers of commerce, businesses in the same area, associations and like groups.

      Reach out: Talk to people every day for the “sphere of influence” to gain community support.

      Ask for help: Don’t be afraid to ask for help when and where it’s needed.

Also, here are some valuable repayment tips:

      The loans won’t be forgiven:  Unlike the Paycheck Protection Program (PPP), EIDL loans won’t be forgiven and need to be repaid. All Economic Injury Disaster Loan recipients received an email from The U.S. Small Business Administration (SBA) with the subject line: Important EIDL Reminder, which contains important information regarding your EIDL account setup and payment.

      Set up a repayment schedule:  Payments were deferred for the first two years, during which, interest accrued. Now, business owners must start making their monthly payments on their due date, which is determined by the “Effective Date” noted on your business’s promissory note.

        Another payment can seem overwhelming stressful given inflation, staffing and supply-related pressures. Don’t look at the big picture. Instead, think about the incremental payments today as steps in the right direction. Set a calendar reminder or appointment to make this payment every month so you will stay ahead of schedule.

      EIDL loans must be paid via a special platform: There are two separate platforms you will need to access your loan information and pay your loan balance.

        First, Capital Access Financial System (CAFS) maintains your EIDL & PPP loan information. This includes your original balance, interest, accrued interest balance, etc. To obtain the EIDL loan information for your business, please select ‘EIDL’ and then ‘borrower search’ from the menu options. When registering on the CAFS website, carefully follow each step. There is no room for error when using this system, so be thorough and accurate when inputting your information.

        Secondly, pay.gov allows businesses to input their bank information and to set up recurring payments online. Inside your profile, choose ‘Make an SBA 1201 Borrower Payment’ as the menu option. While registering on pay.gov may be simpler than registering on CAFS, it is not easy to change bank account information after you begin your loan payments.

      Use the right number:  Keep in mind that your SBA loan number is different than your EIDL loan number. This information can be found on the top of the second page of the promissory note.

      EIDL loans accrued interest:  Many business owners received their first EIDL loan in early 2020 and a second EIDL loan in 2021. For many borrowers, that means interest has been accruing for more than 24 months, with additional interest accruing for more than 16 months. Borrowers are responsible for paying back the loan plus all accrued interest.

      This type of loan program has ended:  The COVID-19 EIDL program is not accepting new applications, increase requests, or reconsideration.

  Business owners should focus on what they do best: Run the business and do it well. That’s why Loan Mantra is providing advocacy tools for business owners on  loanmantra.com so they can be empowered to take action and have the latest information to make the best decisions.

  Small businesses have been the backbone of the US economy and deserve fair economic terms and transparency. Loan Mantra is here as a resource to serve companies of all sizes and types during both good and turbulent times.

About the Author

Neeraj (Raj) Tulshan is the Founder and Managing Member of Loan Mantra, a financial advisory firm with best-in-class and proprietary fintech, BLUE (“Borrower Lender Underwriting Environment”). Loan Mantra, Powered by BLUE, is next-level finance: a one-stop-shop for business borrowers to secure traditional, SBA or MCA financing from trusted lenders in a secure, collaborative, and transparent platform. Clients turn to Raj because they know he will always pick up the phone and offer unparalleled financial counsel in a remarkably human—even friendly—way.

About Loan Mantra

  Small business owners identify two obstacles to their success: access to capital and financial education. Loan Mantra removes these hurdles so business owners can spend more time actually building their business.

For more information visit their website…www.loanmantra.com

The Role of Virtual Tastings in a Post-Pandemic World

Cyndi
people in virtual call drinking wine

 By: Alyssa L. Ochs

The COVID-19 pandemic affected all aspects of life in 2020, from how we received medical care to how we dined at restaurants, shopped at stores and even enjoyed our favorite craft beers and spirits. In past years, craft beverage enthusiasts planned entire road trips and even flew to other countries to experience what the best brewers and distillers of the world had to offer. But during the COVID era, producers were forced to switch gears and consider offering virtual tastings as one of the many ways to stay in business due to restrictions and shutdowns.

We heard a lot about virtual beer, wine and spirit tastings during the height of the pandemic, but those conversations have dwindled as business picked back up as usual. Yet there still may be a place for virtual tasting experiences in today’s craft beverage industry, just as long as producers can evolve with the times and reestablish the relevance of this service among the mix of in-person offerings and events.

What Are Virtual Tastings?

  Virtual tastings are a relatively new concept, and many people don’t consider trying them because they don’t understand what they are. Virtual tastings are immersive, alcohol-themed experiences you can enjoy from the comfort of your home. Many of them require breweries and distilleries to ship boxes to households with sample-size portions, materials to read and opportunities for online engagement.

  During the COVID-19 shutdowns, some beverage producers turned to virtual tastings as a way to keep their customer base engaged and stay afloat as profits declined. But even during times of normal business operations, virtual tastings can be used to celebrate birthdays at home and corporate events in an office. Beyond the confines of a physical tasting room, there are also opportunities for virtual tastings at team-building activities, couples’ date nights and social gatherings to help local groups get to know each other.

Types of Virtual Tastings

  Some breweries and distilleries have created virtual tasting packages with beverage and food pairings to entice customers’ attention, particularly when in-person tastings were not an option. Recently, we have seen cooking kits emerge with alcoholic beverage samples and opportunities to participate in live online events.

  Other virtual tastings experiences involve sending a few bottles or cans of products to consumers with exclusive online access to an hour-long video call with a brewery or distillery representative. There have also been question-and-answer sessions offered with brewers and distillers, beverage judging sheets provided so consumers can rate and pick their favorites and seasonal experiences that highlight fall and winter brews, for example. To further capitalize on virtual tasting experiences, producers can offer the option of purchasing branded merchandise, such as hoodies and beanies, as part of a shipped package for an additional, discounted cost.

Benefits of Virtual Tastings

  During the pandemic times, the benefits of virtual tastings were evident because of the lack of other tasting options allowed and available. Virtual tastings enabled beverage fans to support struggling producers during difficult times while still feeling like part of the beer and spirits community.

  But even now, there are some significant benefits of virtual tastings that are worth considering for the months and years ahead. If marketed well, these socially distanced offerings can help breweries and distilleries reach new customers outside their home region who may not ever travel to the actual tasting room. During the winter cold and flu season, when COVID-19 cases tend to increase, virtual tastings appeal to some consumers as a safer and healthier alternative. If a tasting package includes printed materials that are informational and fun to read, there are opportunities here to help consumers better understand a beverage brand and its products. Since these packages can be designed around different interests and price points, they can offer something for everyone, from the casual drinker to the true connoisseur.

Challenges of Virtual Tastings

  Yet many challenges come with putting together virtual tasting packages, first and foremost, their relevance and value. Beverage producers must make these types of delivery/online tastings worth the cost and add value consumers wouldn’t necessarily get by visiting the establishment in person. There has been declining demand for these services lately and less internal dedication to marketing them since people are willing to travel more and crave a return to normalcy in the outside world.

  Meanwhile, some breweries and distilleries have been unsure of what to charge for virtual tastings. The average cost for this service is between $50 and $200, depending on how much product is shipped and other perks offered. For the virtual tasting industry to be sustainable, more effort will need to be directed to packaging and shipping beverages, which is a significant pivot from the previous experience of many beverage operations. There also need to be staff members who are tech-savvy and trained in how to plan and lead online events, as well as handle the inevitable technology glitches that so commonly occur during video calls and group chats.

Creative Ideas for Virtual Tastings

  If virtual beer and spirit tastings will survive as a side gig in the craft beverage industry, now is the time to get creative with offerings, pricing and perks. If this is something that a brewery or distillery owner is interested in getting involved with, it might be worth hiring a company or consultant specializing in virtual experiences instead of handling all aspects internally. At a minimum, it is worth researching examples of successful virtual tastings and perhaps even reaching out for a discussion or collaboration. Denver Microbrew Tour, City Brew Tours and Common Space Brewery are a few of the many groups that have excelled in this space. Other examples to learn from include Brews Less Traveled, Sierra Nevada Brewery, Fullsteam Brewery and the Sommelier Company.

  One idea to consider for future virtual tastings is to make the experience customizable for certain types of products, such as whiskey, rather than taking a one-size-fits-all approach. Promotions for the service can be centered on the benefits of receiving miniature versions of spirits so that consumers can try samples before committing to full-bottle purchases. Celebrity promoters and social media influencers may be able to help revive the virtual tasting industry if breweries and distilleries make the right connections. Also, the virtual tasting experience can be enhanced by social media participation and through educational lessons about mixology and beer-brewing.

The Outlook for Future Virtual Tastings

  At least for now, it seems that most craft beverage producers, including Fullsteam Brewery, have stopped offering virtual tastings since the lifting of COVID restrictions. With people feeling increasingly comfortable going out in public and preferring in-person experiences to virtual ones, there are significant challenges for the virtual tasting industry right now, but not insurmountable ones.

  Winter is an ideal season to revive virtual offerings because of the predicted increases in COVID-19 and flu cases. This is also an ideal time of the year for virtual options for holiday gift ideas, because of cold weather that keeps some people indoors and potentially more difficult travel with snowy conditions.

  While we don’t anticipate virtual tastings ever replacing the actual experience of drinking onsite, they could be offered as an add-on opportunity for consumers to get even more involved with their favorite beverage companies. During the holiday season, these types of tastings can take the guesswork out of planning gatherings at home with a fun activity as the party theme. As the weather warms up, forward-thinking producers may be able to expand virtual tastings to virtual festival events and online education about beer and spirits. This could lead to more formal training in the craft beverage industry and perhaps even address the staffing shortages still so prevalent in so many places around the country. Yet, in the short term, these shortages may also prevent breweries and distilleries from having the labor resources to dedicate to the tech side of beverage marketing in the first place.

  If you are interested in getting more involved in the world of virtual craft beverage tastings, you should know that this market is far from saturated, and there are openings for growth. Emerging, niche companies could assist with the production and execution of virtual experiences as a service to breweries and distilleries that do not have the time, expertise or staffing to do so themselves. But for now, these types of tastings will primarily be carried out by individual breweries and distilleries that are large enough, have ample staff and enough time and resources to expand their offerings to an online audience. If successful, those offerings could be models for an expanded online industry in the future.

  As a small sampling for inspiration, here are some resources to check out and virtual tasting ideas to consider:

•    The Drunken Grape has a team of sommeliers and offers interactive tastings, niche event planning and execution for private parties, wine and beer dinners, and weddings/corporate/charitable events.

•    Book a beer expert for your event through City Brew Tours.

•    Bourbon & Banter offers whiskey tastings for corporate events.

•    Dewar’s Aberfeldy Distillery is still hosting virtual experiences upon request.

Keeping an Eye on the End Game

Cyndi

Precision in Bottling and Canning for Craft Breweries

beer automated machine manufacturing

By: Cheryl Gray

Savvy craft brewers want problem solvers on their team, especially when it comes to bottling and canning products. 

Industry experts specializing in bottling and canning needs for breweries tout the equipment and technology to handle these tasks for operations of any size.

  One of those experts is XpressFill Systems, a long-established player whose clients, the company says, know to expect cost-saving innovations from its products and solid customer service, particularly after the point of sale. California-based XpressFill was founded in 2007 and began with the idea of solving a dilemma for small-scale wineries stuck with trying to bottle their wines by hand. It continues to service the wine industry, which surrounds the company’s facilities in San Luis Obispo.

  Today, XpressFill manufactures bottle- and can-filling systems in its San Luis Obispo plant, using top-quality components made exclusively in the United States. Its fillers come in several models, including volumetric, level fill and carbonated technology. With affordability, compact design and ease of use among its top priorities, the company continues forging ahead with new ideas to keep pace with customer needs in real-time.  

  The XFW200C is XpressFill’s latest addition to the line of filling products. Its weight-sensing technology is designed to ensure accurate fill volumes that will hit their mark every time. The importance of this precision, of course, is to avoid spills and underfills, which cost valuable production time and loss of product. 

  Rod Silver leads the company’s Sales and Marketing Division. He describes how the XFW200C is ideal for 12-ounce to 16-ounce cans. An industrial-grade touchscreen display allows the user to enter the desired weight and the technology installed keeps track of how much product fills the can. A larger flow path gives the user access to a smooth fill along with the flexibility of filling containers with almost any product of choice, including those with some level of particulates, such as flakes or small seeds. In addition to processing beer, kombucha, juice and RTD mixtures are among some of the other options.

  Twin Monkeys Beverage Systems, based in Denver, Colorado, is the brainchild of Josh Van Riper and Brian LeFevre. Their attention-grabbing moniker, along with the duo’s business model of customer-focused design, has earned Twin Monkeys a global presence in the craft brewing industry, with customers throughout North and South America, Europe, Australia, Africa and Asia.

  Both Van Riper and LeFevre have engineering backgrounds. They are focused on designing the kind of automated canning systems that didn’t exist when Van Riper was brewing craft beer.

  “I started a brewery and quickly found there were not good options for buying automated canning machines for craft breweries then (2013),”Van Riper said. “I got Brian to come to the brewery to discuss this opportunity and we then started Twin Monkeys to make affordable, high-quality automated canning systems for packaging beverages. We’ve grown to a 30-person company in a 14,000-square-foot facility, and we have over 500 canning machines strewn around the planet. I’m an automation engineer who does mostly controls engineering and mechanical concepts. Brian is a mechanical engineer. Between the two of us, we can design automated equipment from the ground up.”

  Twin Monkeys Brewing Systems offers a full range of can-fill-and-seam machines. The company offers craft brewers automation options that provide access to in-house, integrated canning lines equipped with three critical functions.

  “We are singularly focused on canning machines that do three things: fill cans, put lids on cans and seal cans. We rely on other expert companies to do things like labeling, depalletization and brewing, and we want to just perfect the three things we do over and over. We’re also creating a new customer service paradigm to provide easier and more efficient access to our knowledge for our customers.”

  Van Riper says that customer service extends to helping clients integrate their systems with a wide range of accessories.  

  “Although we only make canning machines, we consider ourselves to be systems integrators and that means we sell and support a wider range of equipment,” he said. “This provides more of a one-stop-shop model for customers to lean on us for a variety of their equipment needs. We plant 50 trees for every machine we sell, and in 2021 we became carbon neutral. We do serious work, but don’t take ourselves too seriously.”

  The process of canning and bottling craft beer also entails protecting the integrity of the product before it hits the market. That’s the role of Industrial Physics, which brands itself as the world’s leading test and inspection corporation. Armed with a global network of technical and support teams, the company’s 75-year history in quality control has guided the testing and inspection experience for some of the largest beverage corporations in the industry.

  Industrial Physics has a presence in 75 countries, with manufacturing facilities in 13 locations. Through its vast portfolio of more than a dozen testing and inspection brands, including CMC-KUHNKE, Quality By Vision, Steinfurth, Eagle Vision and TQC Sheen, test and inspection solutions are deployed to ensure premium quality control for beverage packaging, materials and products. At the same time, the company assures clients of personalized solutions for their product needs. 

  Whether a small start-up or a global name in the brewing industry, Industrial Physics says its

Testing and inspection solutions cater to every need and budget. Steve Davis, global product line director at industrial physics, has more than 20 years of engineering experience. He leads a team of experts who ensure that the equipment provided by Industrial Physics does its job.

  “When you’re dealing with bottles, cans and metal packaging, you’ll need reliable inspection machines to ensure the quality of your drinks,” Davis said. “With Industrial Physics, you’ll improve the efficiency of your processes and improve your product, saving yourself time and money and, ultimately, you’ll keep your customers happier. Through our leading brands, including CMC KUHNKE, Quality by Vision and Eagle Vision Systems, we’ve helped thousands of beverage fillers and breweries to taste success.”

  Davis went on to say, “From seam inspection and metal can testing to an inline inspection of empty and filled containers, our devices offer unmatched innovation and help you meet your quality needs. We protect the integrity of some of the biggest brands on the planet, as well as hundreds of emerging brands and everything in between. But how do we do this? By providing first-class test and inspection machines and products that check the quality of your packaging, materials and coatings.”

  Davis provides an example.  “Let’s take seam inspection. Our CMC-KUHNKE Auto XTS is a state-of-the-art, fully automated seam inspection solution. There’s nothing like it in the world, and it has the power to completely revolutionize seam solutions for your production line. We also have a wealth of smaller solutions to fit different needs and budgets.”

  The company offers instruments designed to provide functions that include double seam inspection, non-destructive seam inspection, bottle, keg and can vision inspection, abrasion testing and headspace and dissolved oxygen testing. Customer service, Davis adds, is a priority at every point of the client experience.

  “We understand that being fast, efficient and truly reliable is critical when it comes to servicing the instruments that keep your business running. And that’s why we’ve established a global network of dedicated service specialists to ensure you have an expert ready and waiting at a nearby location who can offer you support.

  Wherever you are in the world, our experts are on hand to support your needs, whatever they may be. We know that having the right people ready to help is critical. It’s critical to delivering quality and speedy service that ensures your instruments can get up and running as quickly as possible. From installation to calibration, repair and preventative maintenance, we’ve got you covered.

  We’re also passionate about being there for our customers in a more holistic way. We don’t just provide products. We’re there as a true partner. We have a wealth of solutions available across the beverage space, from metal packaging to bottles, our instruments test across an incredibly vast range of applications for many different manufacturing and laboratory needs.”

  Canning and bottling craft beer is a process that engages the expertise of filling, packaging and protecting products. Selecting the partner for one or more of these steps is not only based on budget but also depends upon which companies can accommodate the individualized needs of a craft brewery, no matter the size. Another important factor, experts say, is which company will stay with a brewery for the long run, ensuring that it can accommodate growth while not compromising on quality control. 

A Closer Look at Celebrity Brands of Craft Spirits & Beer

Cyndi

By: Alyssa L. Ochs

Actors, musicians and other celebrities love craft beer and spirits just like the rest of us. Yet the difference is that they often have the means, resources and connections to make significant investments in the industry. An increasing number of famous individuals have been getting interested in the craft beverage business and putting their names onto labels of products they stand behind or perhaps have even helped create.

  Here’s what the celebrity craft beverage industry looks like right now, major players in this field and what there is to look forward to in the future.

Celebrity Involvement in the Industry

  Celebrities take a step away from their typical work to get involved with craft beverages for various reasons. Some have a true passion for the craft, while others are in it for the money or just looking for more exposure and additional ways to promote themselves. While some celebrities learn about the production process and engage in making beer and spirits themselves, others do little more than attach their name to a brand for cross-promotional purposes.

  Either way, celebrity-brand craft beverages are often unique because of their higher price tags and limited availability. Some celebrities use their beverage-related profits to benefit charities, and others use their star power to launch tasting rooms for VIP guests. However, there are unique challenges that come with producing, marketing and selling celebrity craft beverages that other beer and spirit companies may not encounter. For example, a beverage brand may suffer when an affiliated celebrity declines in popularity or is involved in a scandal. Meanwhile, a celebrity’s popularity may be affected if the beverage he or she promotes isn’t received well by the public. Some craft beverage fans believe that beer and alcohol belong to them personally and not the rich and famous. Therefore, they might be turned off by the concept of celebrity affiliations and avoid these products entirely.

  But for people who are loyal to certain celebrities or just curious to try celebrity-affiliated beverages, these are accessible products that can often be purchased in stores and online. More popular beverages are usually found in liquor specialty stores, such as Binny’s and Total Wine & More. But you might have to search for more obscure and exclusive celebrity-brand beverages online through sites like Cask Cartel and Sip Whiskey.

Examples of Celebrity Beverage Endeavors

  From musicians across all genres to television personalities and film actors, a diverse array of celebrities have been making their mark on the craft beverage industry in recent years. Some of these examples were limited editions that are no longer sold, while others are ongoing efforts that are changing the industry one bottle or can at a time.

  For example, actor and comedian Dan Aykroyd co-founded Crystal Head Vodka as a way to introduce additive-free vodka and bring more creativity to the vodka industry. Along with his business partner, artist John Alexander, Aykroyd envisioned a new kind of vodka without unnatural ingredients and has a true passion for the product.

  Several years ago, pop music star Justin Timberlake entered into a co-branded partnership with Sauza Tequila to create Sauza 901 silver tequila. The name 901 references the area code in Memphis, which is Timberlake’s hometown. Timberlake said that he developed a love for tequila after visiting Jalisco, Mexico and seeing the craftsmanship that went into each bottle of the spirit.

  Iconic hip hop legend Snoop Dogg partnered with his friend and co-founder of Trusted Spirits, Keenan Towns, to establish his own spirits brand. Known as the “King of Gin and Juice” because of his famous song of the same name, Snoop Dogg developed Indoggo Gin, which mixes seven premium botanicals with all-natural strawberry flavoring. In the past, the musician has also had marketing deals with the Corona beer brand, released his own rosé wine and made investments in the cannabis industry.

  Meanwhile, actor William H. Macy co-owns Woody Creek Distillers, which is based in Colorado and operates a distillery and tasting room just west of Aspen. Not only has Macy invested in the brand, but he has also rebranded himself as Willie Creeks, an alter ego who is a musician and offers life lessons that ultimately promote rye whiskey.

  Another celebrity who has been involved in the spirits industry is actor Ryan Reynolds. He teamed up with Aviation Gin in 2018 after falling in love with the spirit and investing in the company. Since then, Reynolds has become a co-owner of Aviation Gin and driven the creative marketing for the brand. In recent years, and staying true to the aviation theme, he and the brand have teamed up with businessman Richard Branson to serve the gin onboard Virgin Atlantic and British Airways flights.

  A financial success story in the celebrity spirits industry brings us to the actor George Clooney. The idea behind Clooney’s tequila brand, Casamigos, came about after he and his friend, Rande Gerber, were in Mexico and wanted to find a smooth tequila they could sip all day without the dreaded next-day hangover. This was back in 2013, but the friends still personally tasted every batch of tequila made four years later. The brand exploded in popularity, mainly through word-of-mouth and having Clooney’s name attached to it. In 2017, they ended up selling the brand to Diageo for $1 billion, which made Clooney the highest-paid actor of the year.

  Thus far, celebrities have been more involved in the spirits industry than in craft beer or wine. But to a lesser extent, those markets are also drawing the attention of the rich and famous.

  The late-1990s and early-2000s pop band Hanson, comprised of three brothers who love craft beer (now that they’re old enough to drink it), launched the Tulsa, Oklahoma-based Hanson Brother Beer. They created their own craft beer business in 2013 with their flagship beer, Mmmhops, a 7.5 percent English-style pale ale. Since then, the brothers launched the Hop Jam Beer and Music Festival, collaborated with other breweries to create unique beers and dedicated a portion of their beer-related profits to clean water wells in Africa through a nonprofit organization they created.

  Another celebrity beer collaboration involves The Grateful Dead and Dogfish Head Brewing, based in Milton, Delaware. The psychedelic rock band has been involved with the brewery since 2013 and has worked together since then to create a third version of American Beauty HazyRipple IPA. The band’s “American Beauty” album and famous track “Ripple” inspired the beer, which features the iconic Grateful Dead dancing bear image on the label. However, the band’s involvement with other aspects of the beer production process is limited.

  To show how diverse and widespread the celebrity beverage industry has become, here are some additional examples of celebrities and their affiliated beer and spirit brands:

•    Kenny Chesney – Blue Chair Bay Premium Rum

•    Kendall Jenner – 818 Tequilla

•    Marilyn Manson – Mansinthe

•    Dwayne ‘The Rock’ Johnson – Teremana Tequila

•    Mark Wahlberg – Flecha Azul

•    Curtis ‘50 Cent’ Jackson – Effen Vodka

•    Bryan Cranston and Aaron Paul – Dos Hombres Mezcal

•    Sean “Puff Daddy” Combs – Cîroc Vodka

•    Channing Tatum – Born and Bred Vodka

•    Drake – Virginia Black Whiskey

•    George Strait Código – 1530 Tequila

•    Bob Dylan – Heaven’s Door Whiskey

Considerations and Looking Ahead

  The celebrity-brand beverage industry continues to be exciting because there’s always something new in the works to look forward to. There is always a strong public fascination with rich and famous people, and that trend is not likely to disappear anytime soon. As an increasing number of celebrities enter this industry, the competition increases and drives the demand for superb product quality that goes beyond just a popularity contest of celebrity status.

  Yet there are significant legal considerations that celebrities must keep in mind as they venture into the beverage industry for the first time. Collaborative efforts between celebrities and spirit-makers can take on various forms. These include development deals that give celebrities greater control over the final product and endorsement deals that offer little more than using a celebrity’s name. Other deals involve simply using a famous person’s image to promote an existing brand all the way up to full ownership, in which a celebrity owns both the brand and the means of production.

  Specific state and federal laws separate the roles of beverage producers, distributors and retailers, which can make it challenging for celebrities to navigate if they want to be involved in more than one part of the business. Other issues that celebrities must consider before diving into the beer and spirit industry are background checks needed to obtain alcohol beverage licenses, the age of their target audience, morals clauses in their contracts and endorsement disclosures required by the Federal Trade Commission.

  Alcohol production is proving to be an enjoyable and profitable side gig for numerous celebrities interested in connecting with their fans in new and unique ways. But to get beyond the initial hype and keep craft beverage customers coming back for more, it is time to embrace the spirit of innovation and achieve long-term growth with products able to stand on their own, even without a familiar name and face behind them.

Tröegs Independent Brewing: Not Your Ordinary Brewery

Cyndi
Troegs Scratch Lab sticker signage

By: Nan McCreary

Tröegs Independent Brewing in Hershey, Pennsylvania, is not your ordinary brewery. Situated along a confluence of highways connecting seven million tourists annually to central Pennsylvania, the brewery’s location is a perfect model for generating traffic. But it’s not the locale that truly captivates the visitor, it’s what’s inside. Whether you’re in the 5000-square-foot tasting room enjoying one of Tröegs’ award-winning brews or exploring the menu at the Snack Bar for scratch-made food to complement your beer, you are actually immersed in the brewhouse, with views of open-air tanks, and a glass-lined self-guided tour path that cuts through the center of the facility and allows you to experience — firsthand — the entire beer-making process, from fermentation to bottling lines to barrel-aging. It’s clearly a place for the adventurous and the curious.

  “We’re not a bar, and we’re not a pub,” said Chris Trogner, who co-founded the brewery in 1997 with his brother, John. “It’s a place where people can walk around and discover and learn. Our entire operation is on view, including the fermentation/filtration hall, packaging lines, an art gallery, a general store and our new Scratch Lab, where we experiment with new recipes. This is not just a place to drink beer, it’s where you can come and have a semi-immersive experience.”

  The Tröegs story is one of extraordinary growth and innovation. The Trogner brothers, who were always inventing something new when they were young — from skateboard ramps to homemade cannons — reunited after leaving home and going their separate ways, only to discover that a craft brewery might be in their future. Chris was attending college in Colorado in the midst of the craft beer explosion, and John, at Chris’s urging, joined him in Boulder. John began taking brewing classes and working at Oasis Brewing Company, and Chris went to England to study English brewing techniques. The two then hatched a plan to return to their native central Pennsylvania and open a small brewery in Harrisburg. They decided to name it Tröegs, a combination of their last name with “kroeg,” the Flemish word for pub. John was 25 at the time, and Chris was 23.

  Chris Trogner recalls rough patches during the brewery’s early days. “It was just my brother, John, and me,” Trogner told Beverage Master Magazine. “We started primarily as a packaging brewery, selling only bottles and kegs.” Their first pint sold was a Tröegs Pale Ale, and it helped get the little brewery off the ground. The first keg sold went to a Harrisburg restaurant shortly after the brewery opened.

  Fast forward 25 years — the brewery just celebrated its anniversary in July— and Tröegs has changed dramatically since its humble beginnings. Despite early challenges, Tröegs managed to gather such a large fan base of family, friends and “kindred spirits” that they quickly outgrew their facility in Harrisburg. In 2011, they built a new 90,000-square foot brewery (three times the size of the original) in nearby Hershey. With the craft beer industry booming, the move opened up an entirely new realm of possibilities for the Trogners’ innovative spirit. “As the industry grew, we were able to grow with it,” Trogner remembered. “Each year, as we’d sell more beer, we’d reinvest in more equipment and hire more people.”  Now, Tröegs boasts three brewhouses: a three-barrel brewhouse for experimental brewing, a 15-barrel brewhouse and a 100-barrel brewhouse, which the brewery uses for distribution. Annual production is 118,000 barrels. The brewery employs 250 people, with distribution in nine Mid-Atlantic states, plus Washington, D.C. “We look and feel a lot different than we did 25 years ago,” Trogner recalled, “but we’re still very much a family business. Because we’ve stayed true to our core values of independence and family ownership, we’ve kept the small-brewery DNA we all hold dear.”

  Today, their production focuses on specialty and seasonal beers. Their signature beer, the Perpetual IPA, is the best-selling IPA in Pennsylvania and is brewed with six different hops. Other standard beers include Tröegenator Double Bock, brewed in the German tradition of malty, sweet beers; DreamWeaver Wheat, a German-style hefeweizen; Sunshine Pilsner, a classic German-style pilsner and Haze Charmer, a hazy pale ale. In June, Tröegs released a limited amount of one of its most loved beers, Nimble Giant, described by Trogner as a “big beer that goes down easy.” Nimble Giant is always rated “outstanding” by Beer Advocate and is a fan favorite on Untappd. Equally popular is the seasonal holiday beer, Mad Elf, a legendary ale made from five varieties of tree-ripened cherries. “We’re always adding new beers,” Trogner said. “We try to have something for everyone.”

  In their never-ending quest for flavorful beers, the Trogners established the three-barrel Scratch Lab so that a dedicated team of tasters could meet weekly to test new flavors, equipment and brewing techniques. Beers are not given a name, but rather a number. Today, there are over 450 varieties in the Scratch Series, and in fact, many signature brews started in the scratch tanks. “We’re into getting to know the whys of our beers, where the flavors come from and how the process affects the flavor,” Trogner told Beverage Master Magazine. “We try around 100 new recipes a year. The recipes may not all become beers, but the experiments can make us more knowledgeable and help us become better brewers.” The Scratch Lab at Tröegs is on the self-guided tour and the Guided Production Tour (named in 2020 by readers of USA Today as the Best Brewery Tour in America). Here, visitors can have a ringside seat to see what the staff is doing and enjoy that same learning experience.

  While the Trogners are always seeking innovation in the Scratch Beer Lab, they’re just as inventive in providing refreshments to their visitors. Soon after opening, they added a Snack Bar to offer foods as original and interesting as the beer. The menu ranges from soups to salads, sandwiches, sweets and even a kids’ menu, with the majority of food made from scratch using local ingredients. “We develop our Snack Bar menu items much like we do beer recipes with our Scratch Series,” Trogner said. “We’ve thought long and hard about not just what food pairs with our beer, but why. We’re not out to tell you what to eat, but to inspire you to create pairings that perfectly suit your own palate.” For those who want to try a new food and beer adventure, Tröegs offers regular beer dinners with local restaurants, complete with tasting notes and recommendations on what hops variety may pair well with fruit or cheese, for example. “It’s our way of constantly experimenting and moving forward,” Trogner stated.

  Clearly, the Trogners’ desire to create is the heart and soul of their operation. Not only is this evident in the Scratch Beer Lab and the Snack Bar but also in a distinctive feature of the self-guided tour, the Art of Tröegs Gallery. “Artwork is important to us,” Trogner explained. “As brewers, we express our creativity with ingredients, tastes and flavors, but we enjoy what others are able to do, whether it’s making art with our bottle caps, labels and cans — anything that will give a sense of what’s in the bottle or the keg.” Every year Tröegs sponsors a contest and narrows the submissions down to the top two dozen for final judging. The grand prize artwork is featured in the gallery, and the winner receives a limited-release beer label created in honor of their artwork by Tröegs’ in-house artists. Over the years, entries have included a video game, a Smurfy miniature of the Hershey brewery, a multi-tiered cake, a hand-embroidered jean jacket and custom Tröegs sneakers.

  While the Trogners are committed to providing visitors with a unique experience at their brewery, they also focus on remaining active in their local community. Every year, they participate in local activities, whether it’s a large, organized event like a mountain biking ride or a fly fishing contest, or a simple beer tasting set up by a local distributor. Every year, the brewery also donates to more than 150 nonprofits involved in animal advocacy, arts and culture, education, health services and more. Additionally, the brewery buys more than 225,000 pounds of local grain, honey and fruit for use in their beer and seasonal fruits and vegetables for their Snack Bar.

  As Chris Trogner looks back on his 25 years in the craft brewing industry, he has witnessed many changes. “When we opened, there were fewer than 2,000 craft breweries in the country,” he said. “Today there are close to 10,000. There’s more innovation and more diversity. Now is one of the best times to be a beer drinker.”  Trogner is equally optimistic about the future of Tröegs Independent Brewing. “We’re young and we have a lot of gas left in the tank. We’re making long-term investments to increase capacity and improve infrastructure to set us up for the next 25 years. And, with good geography — Baltimore, DC and Philly are only two hours away, Pittsburgh is three hours away— we’re right in the sweet spot, distribution-wise.” 

  Undoubtedly, the Trogner brothers will continue to be driven by adventure and a sense of curiosity. With creative brewers like them, it is indeed a good time to be a beer drinker.

For more information on Tröegs Independent Brewing, visit www.troegs.com

Enhanced Single-Serve and Ready-to-Drink Markets Need Updated Point-of-Sale Systems   

Cyndi

By: Gerald Dlubala

Whether online ordering for pick up, requesting additional items to-go or purchasing single-serve containers from a local market, these options reflect the alternative and increasingly essential revenue streams for craft beverage producers. Additionally, they have proved to be a popular and effective way for craft producers to get their products into the hands of new and potential consumers. According to data supplied by Arryved, a leader in Point-of-Sale (POS) systems for food and drink businesses, many of the consumers that participate in the online and to-go craft beverage markets are different than those that choose to frequent brewpubs, tasting rooms and taprooms in person.

  The good news for craft beverage producers is that participation in the single-serve, ready-to-drink and to-go markets continues to grow. Consequently, it makes sense to nurture those relationships and make the off-premises consumer experience an event that provides value and enjoyment while enhancing your bottom line. The proper POS system can do that.

Your Business, Your Point-of-Sale System: Arryved

  “Of course, there was a sea of change beginning with the pandemic,” said Nancy Trigg, chief people officer for Arryved. “It seemed like, over the course of one night, the brewpubs, wineries and taprooms all had to scramble and pivot business models to come up with a functioning online and to-go ordering system, as well as a safe and viable delivery or customer pickup option. Point-of-Sale systems had to evolve and quickly match that change in direction. In haste, many businesses simply installed a separate system for this newfound revenue stream. It all seemed good until the businesses realized that, in reality, they were using two separate systems pulling out of a single inventory base, causing supply confusion and accountability problems. Point-of-sale systems, like Arryved, that looked at the situation and responded in a more business-sensitive, proper way were the ones that not only helped their clients survive but also helped them grow their consumer base during the uncertainty and shutdowns.”

  Trigg says that a proper POS system is one of the most crucial tools a craft producer has to understand and analyze for how they are doing business, and she urges owners to approach their businesses with that exact mindset.

  “If you have the proper POS system set up for all of your revenue streams, including on-premises, single-serve purchases and online ordering with customer pickup, you will immediately receive valuable insights into what you are selling, when you are selling it and how your products are being used,” said Trigg. “Are some products more popular at certain times, like lunch or dinner? Are some being consumed more with food? Which beverages are more popular at which times? Are they being sold in smaller pours? Larger pours? Are certain products more popular for carryout over in-house consumption? For flight purchases? So much data related to your specific craft products concerning single-serve and online-ordering revenue streams can be harvested from the right POS system.”

  Trigg told Beverage Master Magazine that the applicable laws about these types of sales will generally stick around because of the great work from the guilds, communities and cities to help food and drink businesses remain afloat during the height of the pandemic. Now, craft beverage producers must have a POS system that integrates these transactions into their daily business practices by highlighting and providing data tailored to their specific products, customer profiles and unique business situations.

  “When craft beverage producers start packaging their products, the inherent level of their risk rises, if only based on the costs of packaging,” said Trigg. “That little extra risk can be just enough to inhibit the creative experimentation that makes up the backbone of what a brewpub, taproom or tasting room is supposed to be. But with the right information derived from an inclusive and detailed POS system, that risk is minimized. Now they can offer the right products to the right consumers at the right time, including single-serves, ready-to-drink varieties or a wide range of to-go flight-type options or mix-and-match packs tailored to specific tastes. Unfortunately, not many POS systems properly provide these types of flight tools or pick-six options within their makeup. Arryved does just that, providing the craft producer meaningful insights into what is and isn’t working, and when.”

  Trigg said that Arryved is a POS system genuinely built to care for an all-inclusive beverage program, including those that, either now or in the future, want the option to offer food sales. In addition, Arryved enhances brewpub or tasting room atmospheres by allowing its customers to order drinks to-go, online or in single-serve, ready-to-drink options.

  “There are always developing options within the single-serve and ready-to-drink markets that craft beverage producers need to stay aware of,” said Trigg. “This includes the growing popularity of flight options and different sizes of mix-and-match take-home packs that the customer can customize. Craft producers need a POS system that recognizes these trends and supports mobile guests just as well as it does with on-premises guests. Arryved supports craft beverage producers in all facets of their revenue streams, while featuring unmatched support for the industry. In addition, we stay engaged in the business sector and always have someone available to speak with directly.”

Ready-to-Drink, Single Serve and To-Go Markets Thriving

  The ability to try and enjoy craft beverage products off-premises was, and still is, a game-changer for many craft brewers, winemakers and distillers. For the past couple of years, these markets have helped many establishments remain open and proved they could be a robust, new revenue stream. Breweries have traditionally offered their products in growlers and crowlers so their consumers could enjoy the beer at home. Additionally, the popularity of individual can seaming devices, like those offered by Oktober Can Seamers, gives craft beverage producers more flexibility in to-go offerings and allows consumers more flexibility in how and where they choose to use the beverage.

  In its primary function, can seamers allow craft beverage producers to get their product out the door and into the hands of consumers for off-premises enjoyment. But Dennis Grumm, CEO and lead engineer for Oktober Can Seamers, told Beverage Master Magazine that many clients realize additional untapped revenue possibilities by canning beer, mixed drinks and specialty cocktails for to-go orders. Brewpubs, distilleries, and wineries can all use a can seamer to offer their beverages, unique brews and house cocktails on a to-go basis. It’s an economical and very effective way to get new customers to try your products while satisfying your current customer base. Distillers have had great success canning their best-known, ready-to-drink cocktails, but canning is also an effective way to offer seasonal or limited-release drinks and cocktails.

  Pouches are another way to get your product in the hands of consumers that would not normally spend time in your place of business or would just like to take your crafted offerings with them on the go. Pouches range from those in the refrigerator for individual pours of wine to the single-serve cocktail and wine pouches that resemble the child-friendly juice pouches. The benefits of using pouches include offering a resealable, portion-controlled package that reduces packaging weight by up to 94 percent and can be shipped and packed using fewer resources.

Enhancing the Single-Serve and Ready-to-Drink Market: O-I Glass

  O-I Glass, based in Perrysburg, Ohio, is looking to elevate the single-serve, to-go and ready-to-drink markets to better reflect the on-premises, brewpub and tasting room experience. Megan Henry is the global marketing communications business partner for O-I Glass. She told Beverage Master Magazine that they are transforming the to-go, single-serve and ready-to-drink markets by offering a new glass packaging alternative called the Drinktainer™ for these markets.

  “In an increasingly common world of to-go packaging, we feel that it’s time for craft beverage producers to elevate that part of their business and the consumer experience,” said Henry. “Growlers and crowlers are great, but they have limitations. As soon as you open them, you’re under a time constraint as to how long that product will be good. Using our wide-mouthed Drinktainer™, you’re promoting a sustainable packaging option with the recyclable glass and RipCap® closure, and you’re allowing the consumer to enjoy your products as if they were in your brewpub, taproom or tasting room.”

  Henry said that capacity and shortage concerns still affect many industry players, but those worries are not an issue with Drinktainer™, which is currently available in inventory.

  “We know that many beer aficionados prefer to consume their beer out of a glass, straight from the tap,” said Henry. “Offering to-go, single-serve options in a recyclable glass container is just a naturally better way to enjoy beer and craft beverages in general. Glass packaging provides great flavor retention in any environment and allows producers to feel more comfortable offering their consumers different types and combinations of products without the fear that alternative packaging, like plastics or pouches, will taint their beer, cocktails or wine. In addition, with the wide mouth (42mm), consumers get the deeper flavor and more robust aroma experience as if they would be drinking from a glass on premises.”

  Sustainability is a significant issue of consideration in every phase of craft beverage production, and the Drinktainer™ is a fully sustainable product, available in clear that is customarily used for beer and in a flint tone that highlights the color combinations of cocktails and other beverages. It’s sealed using a RipCap®, an easily applied and highly secure closure that O-I Glass believes brings a nostalgic feel to the products. Drinktainer™ has been successfully used to offer pick-six trial packs and beer flights, and it requires no other glasses or barware to enjoy as the beverage maker intended.

Find more information on the Drinktainer™ at www.o-i.com

TANK & TANK SYSTEMS: Streamline Production and Maintenance

Cyndi
2 huge brewing machines

By: Cheryl Gray

The tanks and tank systems that support the production of the brews and spirits of the craft beverage industry work to keep the quality and safety of those beverages on target.

  No matter the size or brand of the tanks involved, craft brewers and distillers want optimal results and a minimalistic cleaning and maintenance routine to ensure productivity goes uninterrupted. Some companies cater to the industry to provide multiple options.

  Among them is Quality Tank Solutions (QTS), headquartered 35 miles outside of Milwaukee. The company, founded a decade ago, is a stainless-steel tank manufacturer. Jimmi Jean Sukys is the

company’s owner.

  “We are about 100 employees in size and we serve the brewing, food and beverage, dairy and pharmaceutical industries,” Sukys said. “Aside from manufacturing, we also install and repair stainless steel vessels. Our talented engineering team helps you refine your process by increasing efficiency, quality and cleanability.”

  QTS provides a wide range of complete stainless-steel tanks and tank systems for craft breweries, whether it is a start-up or an established brewery. This includes custom-built brewhouses with two to four vessels of 3-1/2BBL to 100BBL in size. The systems are configured to accommodate any height or space restrictions. Standard construction offers features that include either manual or fully automated operation and either steam or direct fire. QTS also supplies brewhouse equipment, such as boilers, chillers, keg washers, bottling lines and walk-in coolers. Sukys explains what additional innovations set QTS apart, including the top-priority use of high-quality materials, efficiency and cleanability.

  “Our QTS cellar tanks are versatile and are completely customizable to meet your specific needs,” Sukys said. “The tank system industry has been around for some time now. What QTS has brought to the table, in just 10 years of service, is consistent and trustworthy results with emphasis on quality standards. Our tanks are engineered and manufactured in Wisconsin, USA using only U.S. stainless steel. Tank longevity is a priority. QTS is with you every step of the way. Even after you receive your tanks, we can help you install, repair or expand. Our expert team members offer amazing customer service.”

  Solid customer service and buying American-made products are among the reasons behind Potomac Distillery’s decision to buy tanks and tank equipment from Idaho-based Corson Distilling Systems, Inc. The Washington D.C.-headquartered distillery is the home base for Thrasher’s Rum, which takes its moniker from owner Todd Thrasher.  “I worked with Corson because I wanted to source American-made products,” said Thrasher.

Corson Distilling Systems is a family-owned business founded a little over a decade ago by brothers Josh and Tory Corson. Today, the company hand-builds each system from materials that include raw stainless steel and copper. The firm also turned to SOLIDWORKS Premium 3D design software to boost its output, streamlining the process of creating models and drawing files while supporting automatic configurations of equipment designs within the SOLIDWORKS products family. Combining the productivity of SOLIDWORKS with another technology solution, COUNTERPART ERP, shaved off a considerable workload and further streamlined processes for the team of draftsmen responsible for the products sold by Corson Distilling Systems, Inc.

  Breweries count on a variety of tanks and tank equipment to get their products out. That includes brew kettles, lauter tuns, mash tanks and more. 

  QTS brew kettles feature what the company describes as a steam-driven Omega Heat Transfer Surface Jacket. The company touts this feature as one that allows precision boiling designed to eliminate over-boiling, which can negatively affect the final product. In addition to some of the other features that are standard on QTS products, its brew kettle standard features include a vent stack with DMS drain, flanged and dished top head, shallow cone bottom and a vortex breaker. 

  Options include a combination brew kettle and whirlpool, so-called “China-hat” assembly, direct fire and vent stack installation. The company’s whirlpool tanks can either stand alone or be combined with other functions. They are customized to handle a brewery’s system capacity. Standard features incorporate many of those offered in other products by QTS, along with a feature known as Trub Guard. The whirlpool tanks can be customized to combine the functions of a whirlpool tank with a brew kettle.

  The company also offers steam-driven calandrias designed to achieve boiling point temperatures without using a heat transfer surface jacket. The calandrias are made of a cylindrical shell and a tube design that is custom-sized to meet the requirements of breweries of virtually any size. The calandrias feature an insulated shell and tube design, accessible flanged ends, a square tube frame with adjustable feet and an optional flexible design to fit a brew house.

  Mash tanks by QTS include standard features such as flanged and dished top head, turbine agitation, glass stop manway, tank light, side wall baffles, shallow cone bottom, NORD gear drive, removable CIP assembly, steam jackets and, of course, 3-A standards. Options include a combination mash and lauter tun, a hydrator and a knife gate.

  The company’s lauter tuns incorporate a tight wedge screen wire fit at the bottom of the vessel, which is designed to eliminate the possibility of the screen bending under the pressure of a heavy mash bed.

  This tight tolerance design prevents excess grains from seeping through the screen. Features of the QTS lauter tuns include gear drive and agitation, which are configured based on the size of the vessel. Other standard construction features include a freeboard above grain bed depth, flanged and dished top head, shallow cone bottom, rake assembly with plow bar, glass top manway, tank light, removable CIP assembly, rectangle side entry manway and wedge widescreen false bottom. Optional features are a combination mash and lauter tun and underscreen CIP.

  Lager tanks designed by QTS feature a horizontal design that the company touts as more efficient since the tanks have more surface area coverage. The lager tanks feature flanged and dished heads, an insulated vessel design, a heat transfer surface jacket, a quarter-inch thick formed saddle with adjustable feet and an oval swing-in manway. They also have a removable CIP assembly with a “whirly spray” device and come fully equipped with a PRV, sample valve, butterfly valves and a CIP accessory. Available options include a stacked tank design and a visual sight gauge assembly.

  For distilleries, QTS offers custom-made hot and cold liquor tanks with features that include flanged and dished top heads, an insulated vessel, a round cross-arm manway, a heat transfer surface jacket, overflow control, F&D and flat-pitched bottoms.

Options include a visual sight gauge and an immersion heater. 

  One QTS product used for adding ingredients during the brewing process is the QTS Q-Bot. It can be used as a dry hop or slurry vessel. The tank’s flexibility helps in the work of adding ingredients at different points in the production process. Among its features are a shallow cone top head, a 24-inch round pressure manway, interchangeable perforated baskets in sizes of one-eighth, one-fourth and one-half inches, a tangential side inlet, a rolled push ring and caster wheels.

  Cleaning tanks and the accompanying equipment are very important, not only for protecting the investment in production, but also for protecting the distillery products. At Potomac Distillery, Thrasher favors a non-chemical approach to cleaning his tanks, which he says are all jacketed.

  “We clean the still and fermentation tanks about once a month. We typically use a combination of water and citric acid and then clean again with distilled water.”

  Experts say that designing, manufacturing, installing and maintaining tanks and their accompanying equipment is done with a combination of craftsmanship, innovation and ever-evolving technology. The aim, of course, is to preserve the products that craft brewers and distillers pour their time and resources into making and getting ready for market.

The Most Important Opportunity for Brewery Owners

Cyndi

Why So Many Are Missing It

employee retention tax credit

By: Catherine Tindall

The Employee Retention Tax Credit (ERTC) is one of the best ways for those in the beverage industry to regain their footing in a post-COVID age. Unfortunately, according to current estimates, many eligible businesses are missing out on this historic opportunity. For those who received or may otherwise be familiar with the Paycheck Protection Program, also known as the PPP, the concept is similar, but there are key differences that make the ERTC a much more generous program overall.  To understand why I will outline some of the key provisions and eligibility parameters, explain the process for claiming the credit, and answer some common questions I encounter in my own practice, such as “why haven’t I heard of this before?”

  The ERTC is a tax refund credit entitling employers to up to $26,000 per employee, depending on the number of quarters a business qualifies for. Eligibility is determined by either revenue disruptions or government orders on a quarterly basis. Many breweries are unaware that they are eligible for the ERTC due to the capacity and operation restrictions on their indoor dining and/or tasting rooms that occurred during the pandemic. Financial disruptions to that aspect of the business trigger ERTC eligibility for all the divisions of the brewery, not just the restricted segment.  We routinely see businesses qualify for six or seven-figure credits under these parameters.

  There are a number of features that set this credit apart from other programs designed to aid businesses affected by the pandemic, like the PPP. Unlike the PPP, the credit itself comes back as paper checks from the IRS, and also unlike the PPP funds, which were restricted to certain uses, a business owner is free to use the ERTC however he or she sees fit. This is because the credit is actually a refund of wages and payroll taxes your organization has already paid. A consequence of this is that there is no overall program limit on the funds to be disbursed through the ERTC, in contrast to the PPP which had a limited fund pool. Businesses affected by government orders are entitled to every cent they qualify for. Taken together, all of these factors are what gives this program its power. The only limitation is time. This credit will begin to be phased out in April of 2023, meaning that business owners need to ensure they submit their claim as soon as possible. 

  Given the tremendous upsides, every business owner in the beverage space should try to see if their business qualifies, even if it seems doubtful. There is no need to become experts in the credit’s provisions, which can often be nuanced. The important thing is to find the right professional, and, to this point, one must be careful. There are unfortunately a lot of bad actors in this space looking to make a quick buck, and many of them are very good at seeming legitimate. 

  The following are some of the most asked questions associated with the ERTC.

  Should I get a second opinion? Because of the substantial nature of these credits, it’s often worth speaking to multiple providers for the credit to get a sense of the relative merits of each, and to look to the expertise and experience of those working on your case rather than fancy marketing or smooth sales tactics.

  Why haven’t I heard about this before? There are several reasons why many business owners have not heard of this important credit. One is that, in contrast to the PPP program, the ERTC has not been well advertised by the government (after all, since when did the IRS advertise refunds you’re entitled to). Another is that many tax practitioners are hesitant to pursue it given the sometimes complex nature of the claims, if this isn’t their area of expertise. Finally, we commonly find that too many CPAs mistakenly believe that their clients do not qualify for the credit, and so never bring up the possibility of claiming it with them.

I would encourage all brewery owners to actively explore eligibility. The potential benefits of qualification, hundreds of thousands of dollars in obligation-free money from the IRS, is one of the highest value things you could do for your business in the current environment of economic uncertainty.

  There are certain pitfalls to avoid, such as dishonest companies operating in the space, but if you choose the right firm or professional to partner with, the process is remarkably painless. Just be mindful that this is an opportunity with a time limit attached. With less than a year before it begins to phase out, now is the time to claim the credit you’re entitled to.

  Catherine Tindall is Partner & CPA, Dominion Enterprise Services (DES), a full-service CPA firm providing tax planning and consulting alongside specialty tax credit processing. The firm has more than 50 years of collective experience and recently announced the launch of its Employee Retention Tax Credit (ERC) Division to help restaurants assess their eligibility for the ERC and properly secure the maximum refund allowed. Learn more at…

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Slowly Sipping Premium Sake

Cyndi
bottles of sake

By: Hanifa Sekandi

You have most likely sipped on this subtle, smooth spirit at your favorite sushi restaurant. Sake is a drink that warms up your soul and shockingly excites your senses. Some would say it brings the same joy as tequila. But you do not see it coming. Sake is a humble beverage that does not announce its presence immediately on the palette. Its balanced flavor profile satisfies the desire to sip and dine without overpowering the experience. Alas, a few sakes in, there it is, a feeling unlike any other alcoholic beverage you have sipped on before. It does not hit you in the chest or burn the throat. That tipsy feeling comes later, even for those who don’t consider themselves lightweights.

  Sake has enchanted North American imbibing culture. So much so that it has transitioned from the beautiful Japanese restaurants where most people first experienced it to liquor stores across the US. As of late, luxury sake brands are making headway, creating an alcoholic beverage niche just like wine and other high-end spirits and liquors. Like premium tequila, it is becoming a staple on bar carts for those who value a selective drinking experience where just anything will not do. It is about quality and the story that makes the alcohol they drink meaningful.

What is Sake?

  Sake is a Japanese alcoholic beverage. The word sake in Japanese describes all alcoholic beverages. Nihonshu is what sake is called in Japan, most likely something sake enthusiasts in the West are unaware of since this designation is rarely used in western Japanese restaurants. For most people, their first experience with sake is at a Japanese restaurant. While dining on seafood dishes, sake is served and an excellent pairing for this type of cuisine. So, what is sake? Sake is a translucent rice wine. It is often served in a small cup called an Ochoko. It is made with rice and water and brewed by converting starch to sugar. From the sugar, alcohol is produced. The brewing process of sake involves several steps.

  The sake brewing process starts with polishing the rice to remove the outer layer. Once this stage is complete, the rice is soaked to ensure that any leftover bran is removed. Next, the rice is steamed to cultivate koji cultures, an imperative component of making sake. While one batch of rice steams, Koji mold is added to the steamed rice. The steamed rice and rice with added koji mold are mixed in a tank containing yeast to create a starter. Next, the mashed ingredients are transferred to a tank with steamed rice, water and koji, frequently added during the alcohol fermentation period of approximately one month. The fermented mash is then pressed and stored.

  As you begin the at-home sake experience, you need to buy the appropriate cups since the size of the cup, the shape and the material it is made with influence the fragrance of sake. There are several vessels that one can use to serve sake. For example, a masu container is a small wooden box with a shot glass placed in the center. Another vessel is a Sakazuki, a flat wide-mouthed cup used for Shinto ceremonies and rituals. Small shot glasses are another option for serving sake since thin glass supports a rich tasting experience. It is also suitable for high-quality sake. Shuki is a commonly used vessel. Shuki is a term generally used to describe all sake vessels. Wooden shukis are favorable since they enhance the aroma of sake and provide a milder aftertaste.

Sake Beginnings

  To truly appreciate an alcoholic beverage, it is essential to understand its beginnings. These stories over a warm meal with friends bring us together. Further, history demonstrates that bridges and communities have been built simply by sharing spices and drinks with people from different cultures. Sake has its own story. Although the birthdate of sake is hard to determine, its roots are intriguing. The Book of Wei in the Records of the Three Kingdoms contains Japan’s earliest record of alcoholic beverages. It is believed that sake dates back to the Nara period (710–794). Initially, sake was used during religious ceremonies. During the Heian period, sake was consumed as part of games and festivals.

  In the earlier stages of sake, before it became a viable commodity. The Imperial Court during the 8th and 10th centuries governed and controlled its production. The types of sake that people could drink were also determined by the rank they held in court. For example, clear, robust-flavored sake was reserved for those in high-status positions. People viewed as a lower class could only consume unrefined, cloudy brews. During this time, people drank sake for festivals and offerings to the gods.

  In the 12th and 14th centuries, shrines and temples became sake brewers and the central producers for over five hundred years. It was at the temples where the brewing process was perfected into three stages. Sake’s longevity, stronghold into the future and availability to the general public are due to these efforts that ushered in the production of sake at a scale. It is important to note that the upper-class nobility only had access to sake during this time. A move into commerce created a demand for this once-exclusive drink.

  Once specialized brewers entered the market in the 14th and 16th centuries, temples and shrines no longer held a monopoly on production. Innovations for serving sake made headway during this sake rebirth. New sake vessels offered an easy way to purchase sake to-go, a departure from the wooden pails. Fast-forward to present-day sake production, where technological advancements that commenced years prior and continue to improve brewing methods have allowed sake producers to distribute it globally. New avenues opened the door for the sale of refined luxury sake. It is no surprise that premium sake brands are finding a space among elite alcoholic beverages.

What Is Premium Sake?

  So, what is premium sake? Is it worth the price? Does it stand out among other luxury beverages? Luxury sake brands are just getting started. It will not be long before such brands are found next to top-shelf wines and spirits on bar menus in North America. Premium tequila has reigned supreme in recent years. It is now sake’s turn.

  Sake has an average ABV of 15% to 16%, quite compelling for those looking for an alternative to high alcohol content spirits. Not bad for a rice wine! Sake Hundred, a high-end sake developed by Ryuji Ikoma, a sake connoisseur who also founded Japan’s Saketimes, is gunning to shake up the fine wine and high-end Japanese whiskey terrain. Ikoma aims to “expose drinkers to the most outstanding examples of Japan’s national drink, showcasing its many styles and sophisticated complexities that allow it to pair with a myriad of cuisines well beyond that of simply sushi.” While developing his brand, he visited hundreds of Japanese breweries to learn about the techniques and art of making sake from those who have gained expertise through their lineage. In 2018, he launched Sake Hundred, a new portfolio of sake for a new generation of sake drinkers. He partnered with select breweries to help him produce his new line of high-end sake.

  “Our collection of sakes will take drinkers through a journey of both culture and taste, two elements that are closely intertwined in sake making. You can taste the personality of the sake brewer in our sake, just as you can taste the terroir of a fine wine,” noted Ikoma. He added, “Each part of Japan has its own culture and there is no better way to get to know that culture than through sake.”

  Sake Hundred released the limited edition Gengai with an eye-opening price tag of $3,100. Their flagship sake, Byakko Bespoke, made from the “king of sake rice,” Yamadanishiki retails at $380. Of course, other premium sake brands are eager to enter the U.S. Kikuhime ‘Kukurihime’ Ginjo Sake, produced by Kikuhime Brewery, is a top-shelf sake named as a tribute to the Goddess of Hakusan Mountain. The water near this mountain is used in this renowned, slowly aged sake for approximately ten years. Some retailers sell it for $650. Another notable high-end sake is Shukondeinoshiro Kamutachi. Producers of this sake only make 60 bottles a year. Luckily, the price tag on this sake is not as shocking. Getting a taste of this premium slow-matured rice wine is a possibility for those who do not mind splurging just a little. It retails at $229.

  Those in the know do not mind lower-priced sake while dining at their favorite sushi restaurant. Even if it sits at a lower price point, it is a great accompaniment to your meal. For many, this led them to explore the world of sake. Its rich cultural roots and the unique brewing process bring each bottle to life. Do not be surprised if it also becomes a member of the new-age beverage trend for individuals seeking wheat-free and gluten-free alcoholic drinks. For now, sipping on warmed sake feels just right.

Use This Idea to Save on Taxes

Cyndi

No one likes paying too much in taxes. In this post we’ll review an idea to use an outside service to reduce one of your tax obligations: the dreaded, and ever-increasing property tax.

Property tax is calculated by multiplying the tax rate by the assessed value of the property – land and buildings. For breweries, this can be a sizable expense.

Both the property tax rate and the assessed value change on a regular basis. Some years the rate goes up and the assessment goes down. In other years it’s just the opposite – the rate goes down and the assessment goes up.

The one thing that doesn’t change is that the total tax bill always goes up.

The process to assess the value of a property is subjective at best. Assessors will use comparable property sales and other metrics to gauge value, but rarely are two properties alike. Therefore, the value assigned to our properties is an approximation, an estimate, a best guess.

So, why not hire your own consultant to make a better estimate?

That’s what we did and the result was a savings of $20,000 per year on our tax bill.

The firm of DuCharme, McMillen and Associates guided us through the process, took up very little of our time, and saved us a lot of money in taxes.

DMA performs Assessment Reviews to identify opportunities for reducing real and personal property tax assessments. DMA’s comprehensive review is customized to your specific needs, and we focus on reducing both current and past assessments.

Our property tax professionals will review your entire portfolio of properties or individual properties of concern to you. Both real and personal property tax assessments are scrutinized to determine the accuracy of the data used by the taxing authority, valuation issues, state-specific treatment of property, and overlooked exemptions.

We communicate the results of each property’s review and, with your approval, take all necessary steps to implement the assessment reduction strategies available, including refund recovery. DMA’s property tax professionals have generated billions of dollars in real and personal property tax savings for our clients, many of which pertain to the beverage and bottling industry. We are leaders in identifying industry-specific issues having an impact on value.

Our property tax professionals have reviewed thousands of assessments in nearly every jurisdiction. DMA’s national scope and jurisdictional expertise means our clients realize the maximum benefit available.

If you’re interested in following in our footsteps, reach out to the folks at DMA. There are other firms that do similar work, but we had a good experience with these guys.

No one likes paying too much in taxes. Check out this idea and reduce property taxes in your beer business today.